AQUALISA QUARTZ :

Simply a Better Shower

Reg. 44
Rahadian Anandianto 29110393
Ridwan Riswandy 29110398
Fiqi Dipowicaksono 29110407
Felisia Noviana Mukti 29110411
Wulan Cahyo Wening 29110416
Imam Mashari 29110417
BACKGROUND
 Top quality shower

Great service
UK Shower Market
Strong reputation

Premium brand
Harry Rawlinson Other catching up to
Aqualisa in terms of
product quality

Market beginning to
perceive Aqualisa
products as being
overpriced (table)

Actual service had slipped over

10% of Aqualisa showers still went wrong

1998
 Segme Retail
Model MSP () Cost () Margin ()
nt Price ()
Premiu
Aquastyle 230 155 95 60
m
Aquavalve Standa
715 380 155 225
609 rd
Aquavalve
Value 390 205 75 130
Value
Aquastream Standa
670 350 175 175
Thermostatic rd
Aquastream
Value 480 250 140 110
Manual
Quartz Premiu
850 450 175 275
Standard m
Quartz Premiu
1080 575 230 345
Pumped m
Aquaforce Standa
445 230 125 105
1.0/1.5 Bar rd
Aquaforce Premiu
595 310 175 135
2.0/3.0 Bar m
Archaic plumbing was still common in many homes
Showers in the UK were plagued with problem
Gravity fed :
cold-water tank / cistern Poor to low water pressure
sat in the roof, while a
separate boiler and
Frequent fluctuations in pressure
cylinder were needed to
store hot water in a nearby
airing cupboard
Type of Shower Information
Does not require hot water supply
Electric Shower Results in bulky box on the wall
Low flow rate
Requires both hot and cold water supply
Requires additional pump to address pressure
Mixer Shower problems
Installation typically requires excavation of
bathroom
Requires both hot and cold water supply
Results in bulky box on the wall
Power Shower
Regarded as less reliable than a mixer-shower and
pump combination
Why customers disliked their shower ?

Poor pressure

Varying temperature

Shower often broke down

Hard to turn valves,

leaky seals, and
worn-out showers

Uninformed about shower

Brand awareness
was low
Aqualisa market share ranked it number two in mixing
valves and number three in the overall UK shower
market.

But, now their sales is decreasing.

Situation Analysis
MARKET SITUATION
4P & DISTRIBUTION
 PLACE
Aqualisa offer its product through a
wide range of distribution outlet:
PRODUCT
Wide range of product to cater
to the needs of all segment. Trade shop
The recent introduction great
Showroom
leap for Aqualisa (quality and cost).
Two models : DIY sheds
o Quartz standart (not requiring Plumbers
apump to boost water pressure) Contract outlets.
o Quartz premium (including the
pump).
 PROMOTION
Good reputation and brand name
in the market
its exixting product high quality
& performance helped it attaint
no. 3 position having close to 18 &
market share (325.500 units of 1.8
million)
Adopted several approaches :
exebitions, face to face contact
with plumbers and advertisement
in the mail on Sunday.
PRICE
-Pricing is higher, the additional
features in the shower justify the
premium charged.
-Good value to end customer
product & price
-Maintain current price for Quartz
-Use the value proposition in
targeting customers.
-Lowering the price = higher
breakeven quantity,
 Trade Shops Showroom DIY Sheds

Carried products High-end product Offered discount

across all available lines and brands
brands Mass market
Various shower and
Primary customer bath options were Do-it-yourself
was the plumber displayed products
Offered installation
Aqualisa brand was Aqualisa brand was
services by
available in 40% of unavailable through
subcontracting with
trade shops contractors and this channel
independent plumbers
Their customers Gainsborough brand
are looking for Aqualisa brand was was available in 70%
reliable product sold in about 25% of of the approximately
availability them 3000 DIY

DISTRIBUTION CHANNELS
SEGMENTS & CHANNELS

REACHING COSTUMERS

CHANNELS Trade Shop DIY Sheds Showrooms

Plumbers
MIDDLEMAN

CUSTOMERS Standard Value DIY Premium Developers

 UK Shower Market
(Product Type and Channel)

Distribution Electric Showers Mixer Showers Power Showers

Do-It-Yourself Sheds 550000 80000 20000
Showrooms 55000 70000 20000
Trade Shops 330000 400000 110000
Other (Electrical
165000 - -
Wholesalers)
TOTAL 1100000 550000 150000
 UK Shower Market
(Installation Method)
Developer
Installation for
New Home
Build Installation by
20% Independent
Plumber
Installation by 54%
Showroom
20%
Commercial
Installation
6%
MARKET SITUATION
SWOT ANALYSIS
- Unfamiliar product to plumbers
- Stigma regarding past failures with electronic showers
- Bad recent customer service reputation
- Sales force focused on servicing existing accounts (90% of time)
W

- Better water pressure and temperature control

- Safer and easier for users (no sticking hand in hot water)
- One touch control with light indicator

S - Easy to install : Junior apprentice can perform install as well

- Day and half installation time saving per install (average)
- Patent on Aqualisa Quartz design
- Strong brand recognition
- High quality product : strong engineering in design
- Current shower systems are bulky
- Excavating required for current shower models O
- Bad water pressure and temperature control with current shower models
- Much manual adjusting required with current shower models

T
- Competition catching-up on quality and technology
- Aqualisa Quartz perceived as too expensive
- Patent expiration
- Cannibalization of existing shower product models
MARKET SITUATION
CONSUMER PROFILE
Consumer Pricing Segmentation

Premium :
Typically shopped in showroom
Style determined their selection

Standard :
Tended to emphasize performance
and service
Relied on independent plumber to
select product

Value :
Concerned with convenience and
price
Avoid solution that required any
excavation
Relied on independent plumber to
select product
 Consumer
Depend on plumber
Easy to use
Easy to install
Perceived high quality
product
High pressure
Stable
temperature
Endurance
 Plumber
Loyal to one product created
expertise.
Reluctant to switch brand paid
more for the 2nd visit.
Distrusted innovation (skepticism
to new technology, based on
some manufacturers failure).
Familiarize themselves with the
service from manufacturer,
 Developer

Price sensitive
Did not need to invest
in premium product
Had relationship with
independent plumber
Prefer reliable and
stylish model
 Market Share
COMPETITIVE
LANDSCAPE
Electric Shower

Quality

Power Shower

Mixer Shower
 PROBLEM
IDENTIFICATION

How Aqualisa increase

sales of its product ?

Which marketing strategy

choose by Aqualisa ?
THEORY ANALYSIS
LATENT & MANIFEST MOTIVES IN PURCHASE SITUATION

Its elegant and bring

Easier to use
prestige to me

High quality Purchase

product Aqualisa
Quartz

My plumber Its quite expensive (than

recommends this the other) so it can
brand bring pride to me

The linkage between behavior and motives that are known and freely admitte
The linkage between behavior and motives that are either unknown or are such that the consumer is
reluctant to admit or reveal them
 Value Proposition

VALUE CREATED
FOR CUSTOMER
Quartz is superior to any other
shower on the market

Outstanding performance,
elegant design, easy to use

Cheaper and easier to install, no

wall excavation due

Great economic benefit

 Value Proposition

VALUE CREATED
FOR PLUMBERS

Quartz can be installed 4 times

more quickly

Installation is so simple to let

them send apprentices to
perform it, which would
increase plumber business

No risk of after-sales problems

Mean-End Chains Analysis :
How consumer perceive Product attribute.

Explore a hierarchical Their consequences.

sequence of :
What these then reveal about their value.

VALUE End

CONSEQUENCES
(functional and psychosocial)

PRODUCT ATTRIBUTE Mean

(concrete and abstract)
The Laddering Techniques
CONSUMER

ACCOMPLISHMENT ECONOMY

Use by all Elegance &

Simplicity Low cost
family member prestige

Good looking
Easy to use Easy to install Endurance
design
The Laddering Techniques
PLUMBER

ECONOMY BELONGING ACCOMPLISHMENT

Low cost Trust Simplicity

Loyal to 1 Distrusted to
Easy to install
product innovation
The Laddering Techniques
DEVELOPER

ECONOMY

Sold out
Saving time Low cost Elegance

Easy to install Prive sensitive Prefer reliable Stylish

SOLUTIONS
Quartz
Premium Product
Leading product in innovation
and Technology
Maintain as Niche Product
High Quality and Performance
 Targeting Customer Directly

Quartz
Premium Product

Targeting Developer Targeting Showroom

 Targeting Customer Directly

Increase brand awareness

and knowledge by ads
Deal with Plumber
(influence 73%)
Good services to plumber
Quartz Make incentive program to
plumber
Premium Product

Targeting Developer Targeting Showroom

 Targeting Customer Directly

Quartz
Premium Product

Targeting Developer Targeting Showroom

Deal with High Class Showroom with service

Developer Aqualisa provide the
Create a new brand plumber bundling with
Supermax+ the product
customizable Expand distribution on
showroom
 Targeting Customer Directly

Quartz
Premium Product

Targeting Developer Targeting Showroom

Deal with High Class

Developer
Create a new brand
Supermax+
customizable
LESSON LEARNED
It is not easy to make and market products for the first
time. There are many things that must be considered by
a company in create new product. Not only innovate
new technology but also research their customer
profiles and ways of marketing.
Companies also should not be afraid to pay extra costs
to support the marketing of new product. All of these
actions is expected to increase the sales of new product.
By support the marketing of its own product, company will
gain extra value, which is one of the most important thing
from a product : consumers brand awareness.
High brand awareness will bring good number of profit and
sales.
Each company should also pay attention to each type of
consumers and customers. Different consumers will need
different treatment and service, thats why its important to
know their profile before.
THANK YOU