Situation Analysis

Customers
Three Segments: Premium, Standard and Value Premium: shop in showrooms ,excellent service and high performance taken for granted. (Style determines selection) Standard: View service and performance as important (Depend on the plumbers to make selection) Value: dependant on the plumber's choice (conveinience and price), also fall within the DIY market (easy installation and price sensative)

Competition
(Referring to Exhibit 2) Other than Aqualisa and Gainsborough (same company differnt brands) there were 3 major competitors with sales over 100,000 units (combining Electric, Mixer and Power). Triton, Mira and Masco. Aqualisa's main sales was in Mixer showers ( around 17% [94,000/550,000]%). The major competitor in Mixer showers was Mira (36.3% Market share), followed by Ideal Standard and Masco.Gainsborough has second highest market share in Electric showers (16.3%) the first was Triton with (43.5%). Mira Heatrae Sadia and Masco followed. Aqualisa was fourth in place in Power showers with (14.6%) Mira and Masco were in top place with (23.3%) each and Triton had (16.6%).

Channels
Three major channels of distribution: DIY sheds, Showrooms and Trade shops DIY: lead in electric showers (550,000 Units [Exhibit 6, case]). easy to install, cheap. Mixer and Power showers follow. [caters to those costomers that fall in the low price segment] (Aqualisa unavailabe, Gainsborough present in 70%) Showrooms: higher end products (customers with willing to pay more) they lead in Mixer showers (70,000 units) [Exhibit 6, case], followed by Electric and Power showers. (Aqualisa present in 25%) Trade shops: for the plumbers,product availability is more important that technical advice. Lead by Mixer showers (400,000 units) [Exhibit 6, case] followed by Electric showers and Power showers. (Aqualisa present in 40%)

Company and Enviornment

60% of homes in the UK had showers and many of them were facing many problems. Many homes had "Archaic" plumbing (those that are gravity fed). Archaic plumbing meant poor water pressure and fluctuations. Showers were often breaking down. Aqualisa face low brand awareness Half the sales were from replacements.

Quartz Value Proposition to Customers: Better water pressure

Better temperature control Easier and safer to use More user friendly (on touch control) Faster installation (half a day compared to two) All in one solution Parts can be located in hidden areas (more efficient space)

Quartz Value Proposition to Customers: Easy installation (both apprentice and master are capable of doing so) Faster installation Better quality (less breakdowns which mean less headache for plumbers) No excavation needed Deals better with space constraints due to variable mounting options