AQUALISA

QUARTZ
Presented By:
• Amit Mallick
• Shourya Nagaria
• Ankit Pandey
• Founded in 1977
• Head office in Westerham, Kent
• Aqualisa was ranked at #2 in
mixing valves and #3 in the
overall UK shower market
• Had 25% net returns on sales
• 5% to 10% growth rate
-Strong Reputation in UK
-Outstanding Quality Product -Expensive product Image
-Breakthrough -Low brand awareness of Quartz
Technology(QUARTZ) product
-Premium brand image
- Strong emphasis on R&D

SWOT
Analysis
AQUALISA
-Market perceived
-40% of UK homes don’t have Aqualisa’s products as being
showers installed overpriced
-Continuous demand on shower -Declining in service quality
products - Competitors catching up in
product quality
-Eroding in customer amount
 Introduction to UK Shower Market

 U.K. Shower market in late 1990s was plagued

with problems

 Only 60% of U.K. homes had showers whereas

100% of the homes had bathtubs

 Archaic plumbing was used most commonly which

had a cold water tank on the roof, a separate
boiler and cylinder to store hot water
 Mixer Integral
Electric Showers
Shower power
valves showers
• Electrical • Manual and • Single compact
components Thermostati unit.
mounted in c • Less reliable
bulky box. • Blended both than Mixer
• Introduced hot and cold Shower valves.
under the name water to set • Results in a
‘Gainsborough’. temperature. bulky box on
• Used cold water. • Additional the wall.
booster pump
required to
enhance the
flow rate.
Why People Disliked
Showers

Poor Varying
Pressur Temperatur
e e
Shower Low Brand
Brake
Down Awarenes
s
Unattractiv Poor Ease
e Design of
Installation
 Distribution
Trade Shops Plumblers DIY Shed Showroom
• Stocked • Huge influence • Cheaper and • High End Product
for on the individual easier to retrofit • Multiple brands.
demand market segment • Launch an • Primary
• Aqualisa was • Major concern is intense customers
available in 40% reliability, Marketing were
of trade shops performance Campaign plumbers.
• Primary and ease-of- • Brand awareness • Available in
Customer- installation • Promotional low 40% of the
Plumber • Familiar product prices trade shops.
relationshi brand to avoid temporarily for • No inventory
p repeat the new buyers held
plumbing • Mass Market • Offered
• Highly loyal to a • Offered Discounts installation
product • Electric showers services by
• Distrust subcontractin
were the
Innovatio primary g
n showering • Aqualisa brand
• Installers have to • Gainsborough was sold in 25%
go several years was available in of showroom
of training 40% of them
Quartz – A Breakthrough in Shower Technology

Remote Processor

A single hole drilling

Efficient & Reliable

Water Pressure

“One Touch” Control

Electronically controlled
valve
 Ease of
use

Easy
Great to
install
looks
Aqualis
a
Quartz

Stable Good
temperatur water
e pressure
-Safer & Easier for users -Unfamiliar product to plumbers
-Better water pressure and -Poor distribution channel
temperature control -Stigma of past failures with electronic
-One touch control with light indicator showers
-High quality product: -Sales force focused on servicing
strong engineering existing account
- Easy to install
- Day and half installation time sSaWn
vigO
T
Analysis
per install
QUARTZ
- Current shower systems are bulky
-Competition catching up on quality
- Bad water pressure in showers
and technology
- Fluctuating temperature in
-Quartz was perceived too
current
shower model expensive
- Much manual adjustment -Cannibalization of existing shower
product models
required
 Potential Product • Body Jet

• One Touch Control

Augmented Product • Automatic temperature control
• Slave remote control
• Easy Installation
Expected Product • Efficient & Reliable Water Pressure
• No temperature fluctuations

Basic Product • Electronic Shower

Core Product • Shower

High
Price

Plumbers wary of innovation

No aggressive marketing due to fear of cannibalization

Concentrated more on servicing old customers rather

than
developing new ones

Trade shops did not have the time to learn and explain the
features
to customers
•
Pros
Know what to expect
• Easier to get to
• Know what it will cost Cons
• Easier to convince because
• Not getting directly to the
less educated market
problem
• If convinced, will request
• Lifetime value is much lower;
that plumbers install
one- time to two-time purchase
• High risk/High reward when
the company is already
healthy
 TARGETING DO-IT-YOURSELF SHEDS
Pros
• Easy to install
• Value much higher than current
electric showers that dominated
the market Cons
• Possibly charge a premium • Get stuck in that market
• Differentiated from previous • Small market for type of shower
electric • Low profitability – Low total
showers sales
Pros
• Large-volume channel
• Force plumbers to get familiar with Cons
product • Lead time – Long lag before
• Dependable sales
• Tough sell to developers –
Don’t usually buy premium
products
• Don’t want to discount price
for developers
• Higher cost of failure
 TARGETING PLUMBERS
Pros
• Most influence in the market
• More impactful word-of-
mouth
•
Cons
Lifetime potential for sales
• Difficult and expensive to market
to
• Already biased against electric
showers
• Resistant to change
 Arrange a conference for plumbers and
developers

 Free products to try

 Provide unconditional guarantee to plumbers

and customers

 Include plumbers in the workforce

 Thank You

Don’t shower us with too

many questions