Aqualisa Quartz
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Transcript of Aqualisa Quartz
Aqualisa Quartz simply a better shower
Lukman Kresno O. 29110394Yohanes De Deo Tedo 29110399Anggi Fitrining Tyas 29110400Ronaldo Bagus Putra 29110404Wisnumurti Rahardjo 29110412
Background
Aqualisa innovate a breakthrough product (Quartz) to the market but it was unsuccessful in the market because of Plumber’s Electronic Syndrome.
INDUSTRIAL OVERVIEW
The U.K. Shower Market
Electric Showers• heating elements instantaneously heated the water to the required
temperature, eliminating the need for a boiler to store hot water. • convenient for small bathrooms, the electrical components were
usually mounted in a bulky white box that was visible in the shower stall.
• did nothing to address the poor water flow of many showers in U.K. homes,
• sold mostly under a separate brand name, the ‘Gainsborough’ brand.
Mixer Shower Valves
•Valves came in two types : •thermostatic controlled temperature automatically•manual manually find the right temperature
• Installing a mixer valve meant excavating the bathroom wall. •Add booster pump to boost water pressure (cost € 350 to € 600)•Core Product: Aquavalve609 (thermostatic); Cost : €155 Price : €675 to €750• Sales: 60,000 units per year; Image : high-quality and reliable
•Combine a thermostatic mixer valve and booster pump•Bulky box on the wall •Core Product: Aquastream (thermostatic); Cost : €175 Price : €670• Sales: 20,000 units per year•Aqualisa’s strongest selling shower in the power shower technology
Integral Power Showers
Premium Segment Consumer :- Shopped in showrooms- Granted high performance and service- Style determined selection
Do-it-yourselfers Segment :- Shopped at large retail outlets- Interested in inexpensive models that were easy
to install, even though bulky and unattractive- Overwhelming choice : Electric showers- Popular among landlords & apartment dwellers
Standard price Segment :- Emphasize performance and service- Product selection rely on plumber
Pricing Segment
Value Segment :- Concern with convenience and price- Avoid solutions that required any excavation- Product selection rely on plumber- Concerned with convenience and price
Product & Price
Distribution
Gainsborough DIY sheds DIY / Value
buyers
609, Quartz
Distributor
Trade shops
Showrooms
Plumbers
Premium Buyers
Standard / Value buyers
Shower Max Developers New Home Buyers
U.K. Market Share Data
30%
22%11%
7%
7%
3%
2%
1% 1%1%
15%
Chart TitleTriton Mira Gainsborough Aqualisa
Masco Ideal Standard Heatrae Sadia Bristan
Grohe Hansgrohe Others
U.K. Shower Sales by Reason for Installation
44%
25%
6%
15%
10%
Sales
Replacement Shower
New penetration
commercial
New Build
Second Sgower
The principle reason for consumer to install a shower is to replace the old shower into new ones (44% of customers)
There are only 6% of consumer who has a commercial purpose in installing a shower
The Quartz Shower Valve
The are 2 versions: The Quartz Standard Shower
The Quartz Pumped Shower
With Quartz technology: – Installation time of a half-day– Plumbers were finding that the install
was so straightforward– The Quartz shower provided efficient
and reliable water pressure and temperature – “one touch” control
– the temperature control is automatic
To install the Quartz shower:– the plumber had to identify a physical
space to accommodate the remote processor
– The processor contained the thermostatic mixing valve and pump
– The device could be mounted horizontally, vertically, or on its side, depending on space constraints
VALUE
PLUMBERS
Easy to installMore profitable – able to do more installationTake 0.5 day to install which is only 25% of previous times
Even apprentice can do the installation
CONSUMERS
Efficient and reliable water pressure and temperature
Safe to use for kids and elder peopleOne touch control with red light indicatorMuch easier to install for DIY sector
Excellent design and aesthetics, which increases ownership pride
Quartz Value Proposition
Individual Developers Plumbers
Premium &Standard
DIY Price Sensitive Don’t like innovation
Low brand awareness
Change premium brand perception
Small market Costly to convert
Independent of plumber influence
Large market
Influence plumber
Largest market share
Premium brand recognition
Cheaper Strong influence to
customer
COST
BENEFIT
Cost and Benefit
PROBLEM HIGH INNOVATION & TECHNOLOGY butLOW IN SALES
Rawlinson should choose appropriate marketing strategy to overcome the problem. The choice are : - Targeting customer directly - Targeting developers- Targeting DIY
MARKET ANALYSIS
5C
Company
Customer
CollaboratorContext
Competitor
• UK shower manufacture• Have breakthrough in shower
technology by producing “The Quartz”• Have strong reputation in UK
shower market.• Producing premium product in
shower market.
COMPANY
Aqualisa using the working divisions/department based. Consist of: Marketing & Sales, Finance, Technical, and Operations.
Organizational Chart
Customer
• Individuals• DIY• Developers• Plumbers
Collaborator
• Outlet• Developers• Trade shops• Showrooms• Distributors
Context
• In UK, everyone had a bathtub, only 60% had showers.
• It is rare an innovation in shower production.
30%
22%11%
7%
7%
3%
2%
1%
1%
1%15%
UK Market Share Data : Units Sold (2000)Total Unit Sold by Brand
Triton Mira Gainsborough AqualisaMasco Ideal Standard Heatrae Sadia BristanGrohe Hansgrohe Others
COMPETITOR
Triton has the biggest market share (30%).
Aqualisa and Gainsborough market share is the 3rd largest (18%).
For the Electric Showers product, Aqualisa and Gainsborough has 2nd biggest market share (16.9%) .
Product Price Place / Distribution PromotionShowers with Various categories.Type of Shower :- Electric Shower- Mixer Shower- Power Shower
PremiumStandardMiddle-Low
Trade ShopDistributorShowroomsDIY Outlets
Advertisement (ex. Brochure)Web
4P Analysis
Segmenting
• UK Niche Market Shower
Targeting• Direct consumer• DIY market• Developers
Positioning • Leading in shower technology that have top quality
shower in premium brand and also give great services
S T P
Strength• Strong reputation in the UK • shower market.• High Market share• High Quality Product • Easy to install• High innovation in technology
Weakness• Low sale in Trade shop and
Showrooms. • Expensive brands image• 10% of Aqualisa is defected.• Lacked the ability to relate to end
users.
Opportunity• Typically low pressure and • fluctuations in temperature of UK
shower valves.• High demand of UK market• Rare real breakthrough in the
shower market.
Threat• Plumbers loyal to single brand and
distrusted innovation.• Other companies were catching up to
Aqualisa product quality.• Dependency of Consumer to the
plumbers.
SWOT
Products and Price Points
•Quartz stand for Premium segment with price €850 and €1,080.
• Quartz standard and pump provide the biggest margin than other models.
Behavioral Analysis
Consumers
Consumer doesn’t like!•Poor Pressure
•Varying Temperature
•Shower broke down or “went wrong” hard-to-turn valves, leaky seals, and worn-out showers. Because of that, almost half the U.K. shower market consisted of sales of replacement showers.
•Consumers were generally uninformed about showers.
•little understanding of product options
•Brand awareness was low;
•Prices to consumers usually lump sums and unaware how costs broke down (labor, material, excavation, etc).
• Most developers did not worry about pressure problems because new homes were almost have high-pressure systems.
• faced a different set of issues, preferring reliable, nice-looking products that could work in multiple settings.
• price-sensitive except of luxury builders• Developers usually had relationships with independent plumbers.• Aqualisa sold to developers under its ShowerMax brand, which was
available only through specialist contract outlets. • technology had been redesigned, rebranded, and optimized for
developers specific needs. • ShowerMax could deliver a high-pressure shower withAquavalve
technology at a significantly lower cost.
Developer
Plumbers
•Had high technical expertise.
•Strong influence toward consumers.
•Consumers often had to with six months
•Charge about € 40 to € 80 per hour.
•Loyal to single brand
•Distrusted innovation → cause Quartz failure in the
market.
• The most installation method of mixer shower is by independent plumber which is 54% of all.
• While the installation by showroom and developer is 20% each.
• The smallest percentage is the commercial installation which is only 6%.
U.K. Mixer Shower Market, by Installation Method
Type of Influence
Consumer must know the advantages of Aqualista so they could directly buy the product or ask the plumber to use Aqualista on their wash room
Plumbers must understand the way Aqualista work so they have no uncertainty on using Aqualista’s products
Informational
Most consumer, selects Mixer Shower by taking plumber’s advice on type and brand of shower which is 28%.
While 20% of consumer are selecting only type of shower – (not the brand), that influenced by the plumber.
Shower Selection for Mixer Showers
28%
27%25%
20%
takes plumber's advice on type and brand
consumer se-lect type and brand alone
plumber select type and brand alone
plumber in-fluences type of shower, not brand
Consumer Motivation & Value
Needs(Shower)
Consumer Wants(lookes great, delivery good
preassure, stable temperature, easy to use,
didn’t break down)
Plumber Wants(easy to install, with a
guarantee not break down or requiring service)
Latent & Manifest Motive
Purchase a SHOWER
Premium brand makes
me more prestiges
The plumber suggest me to buy
that brand and that type
It’s look great , easy to use, good
pressure, stable temperature,
didn’t break down
AQUALISA STRATEGIC ANALYSIS
Cons• ‘bet the company’
kind of product• Cost about €3 to
€4 million over 2 years
• Tough to justify a high-risk, high-reward strategy when company results were already healthy
Pro• Quartz’s superior
value proposition so possible to charge a premium for this product.
• The Quartz is so easy to install.
• Currently selling its Gainsborough in this market
• Push the product, avoiding the need for expensive consumer advertising Cons
• Associating premium brand with discount channel
Pro• Large-volume
channel.• Force plumbers
to get familiar with our product
Cons• Time lag before showers
reach consumers through this route.
• Developers perceived products to be premium brands.
• Quartz under price was a breakthrough innovation.
Pro• Triton Has Proven that it can be
done• Many Problems reaching the
plumbers
• The cause of quartz failure is the resistance from plumbers. With the analysis of circumference, they should :
- Plumbers shoot the trade shop
product presentation (installation, warranty) to the plumber community incentives
- Consumers Bring the Brand experience to customer through its marketing activities, so that customer can feel the simplicity of Quartz shower.
- Developers make a contract incentives
Recommendation