AQUALISA QUARTZ

Group 4, Section D

Situation Analysis

Industry Overview:
40% homes do not have showers (Untapped market)
Key Issues: Water Pressure and Temperature Control
Customer:
73% of the cases the plumber was directly/indirectly involved in the purchase decision (1)
Customers are reluctant to switch brands and 44% of the Sales consists of buying replacement
showers (2)
Developers want customizable products and at prices lower than MRP
Distribution Channels:
Gainsborough product is already present in 70% of DIY outlets
Only high end products are sold in showrooms which are visited by individual shoppers
Aqualisa has presence in 40% trade shops but staff cannot be trained in technology
QUARTZ
High Technology Product involving electronics
Sunk Costs: 5.8 million
In the future Quartz can lead to sister product cannibalism
Sales volume is as low as 30 units/day where expectation is of 200 units/day
Obj: Increase the sales volume of Quartz to 100 units/day in the short run
1: Exhibit 4
2: Exhibit 3

Quartz: Value Proposition

PLUMBERS
Value Proposition
Easy Installation- No need for
Bulky boxes / Excavating the
wall
Installation time reduction:
From 2 to 0.5 days
Push-Fit-Connect technology
General Product Dislikes
Integrated with Electronics
High on Innovation (Plumbers
distrusted too much
innovation)
Perceived notion of
complexity

CONSUMERS
Value Proposition
Water pressure control (12-18
l/min)
Temperature Control (41-45
Celsius)
One touch control
Once set automatic temperature
control
Safe for kids, Easy to use for
elderly
General Product Dislikes
Developers disliked high MRP
products

Why Quartz is not selling?

Plumber Dissatisfaction: Involved in direct/indirect purchase decision

73% of times and are wary of the innovation
High Margin Product:
Non customizable: Cannot capture 20% of the market held by
developers (1)
Customers:
Have low brand awareness
Usually do not switch between types of showers purchased. 44%
go for replacement within the brand used itself(2)
Presence in Premium Product Market
Premium product offered only in the Electric Shower segment
~16% Market share in electric shower segment. Mainly in
Gainsborough brand(3)Electric Showers
Triton

Mira

Gainsborough

Aqualisa
19%
4%
Heatree
3%
Sadia

Masco

Ideal
Standard

44%
Bristan

Hansgrohe
14% Others
16%

Grohe

Strategy to increase sales

volume

Introduce Aqualisa Quartz in DIY Sheds

Rationale: 1. 70% presence in 3,000 outlets in UK
2. Partnership with B&Q could help in product introduction without incurring
advertisements campaign costs
3. Quartz is a better product as compared to Electric Showers. Selling them in the
same shed could give a competitive edge to Quartz
4. DIY sheds are meant for easy to install products. Quartz is easy to install and
takes 0.5 days for installation
5. DIY Shed focus on consumers, Consumer needs are being satisfied by the
Quartzs Value Proposition.
6. Consumers can influence plumbers initial reluctance to use Qurtz
Action Plan: 1. Introduce Quartz at a MSP in the short run in DIY Sheds
2. Increase the stock of Aqualisa Quartz in DIY sheds and keep selling Electric
Showers under Gainsborough brand
3. Increase premium charged in Quartz over a period of time

Current Price Structure

Proposed

MRP

Cost
Price

Margi
n

MRP

Cost
Price

Margi
n

Quartz
Standard

85
0

175

675

450

175

275

Quartz
Pumped

10
80

230

850

575

230

345