Aqualisa Quartz: Simply a

Better Shower

Group 1
PGP32202 Milan Shambharkar
PGP32383 Shivek Kappor
PGP32295 Vrushang Amin
PGP32388 Praveen Kumar
PGP32249 Anand Shah
PGP30014 Augustus Martin
 U.K. Shower Market at a glance: Facts and Figures

Market by installation method Problems plaguing Shower Market Trends in the industry
Installation by
Independent
6% Plumber What consumers disliked
20% Archaic
Developer 60% of U.K. plumbing about their showers?
54% Instalation For New homes had
shower
Home Build
20%
Installation by
Gravity-fed
Showroom plumbing Poor Pressure

Market by reason for installation Varying temperature

Showers often
Replacement Shower
25%
broke down
Second Shower

6%
44%
New Build Low water pressure & Stiff valves & hard to
turn valves
15%
10%
Commercial
Fluctuations in temperature
New Penetration
Leaky seals & Worn-out
showers
Different channels of distribution exist in the U.K.
Shower Market
Pricing Segments
Trade Shops
Carried products across all
available brands.
Value Primary Customer Plumbers,
who worked for developers,
showrooms, contractors or
directly for customers.
Aqualisa brand was available in
40% of the trade shops.
Standard The staff in these outlets dont
have the time to learn all the
features and benefits of the
45,000 items they offer.
Premium
Channels of Distribution
Showrooms DIY Sheds
High-end products. Do-It-Yourself retail outlets like
Showroom consultants B&Q offered discounted, mass
helped their customers market, do-it-yourself
through the process of products.
selecting and designing a Electric showers led sales in
bathroom solution this channel as they were
A chance for consumer to view cheaper and easier to retrofit.
the product in a pleasant Aqualisa brand was unavailable
environment. through this channel but its
Showrooms preferred to carry Gainsborough brand was
high-end product lines and available in 70% of the approx.
brands. They also offered 3000 DIY outlets in U.K.
installation services through
subcontracting with
contractors and also through
independent plumbers.
Aqualisa brand was sold in
about 500 showrooms out of
2000 showrooms in U.K.
Showrooms
 Analyzing the consumer behaviour at the U.K Shower
Market
ASSAEL MATRIX VALUE PROPOSITION
High involvement Low involvement PLUMBER CONSUMER

Easy to install (can Consistent water

Complex buying Variety seeking be done by an pressure and
Significant differences behaviour behaviour apprentice) temperature
between brands Self- purchasing Less Skillman ship Safe to use for
Customer
Profitable (lesser kids and elders
cost for One touch control
installation) Aesthetically
Plumber
Few differences Takes 0.5 days to appealing design
between brands Dissonance-buying Habitual buying install (75% more
reducing behaviour behaviour efficient)

Consumer
Issues concerning plumbers:
Who takes 27% Plumbers distrust innovation
the final Plum Manufacturers serviceability is a concern
ber Unfamiliar products could present unknown performance problems
call? 73%
Loyalty to a single brand
Aqualisa should target plumbers and consumers directly
to maintain aggressive growth
Targeting Consumers Directly Targeting DIY Targeting Developers

27% of customers select brand
and type of shower without
consultation
High user acceptance of Quartz
using field tests
Targeting customers directly may
lead to higher penetration rates
Easy to install: quick and efficient
The product features and design
would demand a premium even
in DIY segment
Partners like B&Q would help
push product without extensive
marketing campaign
A large volume channel
Plumbers would be forced by
developers to get associated with
the brand
Increase the market size and
market share by penetrating new
houses

Large scale marketing campaign Significant time lag before

required ($4mn over two years)
High Risk-High Reward unsuitable
for a profitable yet small firm
The premium category tag may
keep customers away from
Quartz
The risk of losing out on the
premium tag once it enters DIY
segment
Cannibalization of existing brand
Gainsborough
showers reach the actual end
users: only 2 years advantage
Reluctance from developers to
use a premium brand
Heavy discounts (50%) needed to
incentivize developers

1. Target Plumbers: The major influencers should be made aware of the benefits of using Quartz for them and the customers
2. Target Consumers: Marketing campaign to introduce the advanced product and its benefits for the consumers
 A two way marketing strategy should be followed to
increase market share
Target Consumer Directly Target Plumbers

Ad campaigns demonstrating the benefits of Improve trade margins for plumbers

Quartz for the consumer
Warranty for Quartz to ensure no electronic
malfunctions for the risk averse consumers
Partnership with products such as bath tubs to
improve sales
Increase sales staff to target new customers from
existing two sales people
Include trade promotions including installation
guides for the plumbers at trade shops
Loyalty programmes for plumbers at trade shops
to ensure repeat purchases
Increase sales staff to target new customers from
existing two sales people

Introduction of Qaurtz should not be at the expense of Aquavalve, the bread and butter of Aqualisa
The marketing expenses should be kept in tight vigil as the firm is conservative
A high risk-high reward strategy will need the board to be convinced to take a risk on the profitability and stability of the firm
 A marketing strategy change plumbers buying
behaviour to complex buying behaviour
Marketing Strategy

Target Consumer Directly Target Plumbers

Target Existing Consumers Target Existing Plumbers Target New Plumbers

Educating the consumer Seminars Warranty & other incentives Partnerships

Ad campaigns demonstrating
the benefits of Quartz for the
consumer
Partnership with products
such as bath tubs to improve
sales
Increase sales staff to target
new customers from existing
two sales people
Educating about opportunities to 3 years of warranty for Partnership with plumber training
increase: manufacturing defects institutions on providing
Earnings by 200% Dedicated hotline for plumbers installation kits
Time by 400% issues on installation Educating about benefits of
Leisure time Monetory and non-monetory electric showers
incentives on achieving sales
Mock installations to show ease targets
of use to plumbers