Today’s Agenda Case Overview Needs and Wants Four P’s Aqualisa Quartz Value Propositi on The Problem Issue Tree Final Recommendation Conclusion
Marketing Concepts Studied Marketing Mix Consumer Behaviour STP/Brand Positioning Behaviour Segmentaion Breakdown with Issue Tree
Case Overview • Aqualisa is a UK shower manufacturer: a strong reputation, a premium brand & great service. • Aqualisa has invested 5.8 million to develop a breakthrough product (May 2001), the Quartz shower that positions itself superiorly in terms of quality, technology, design and ease of installation. • Marketing strategy to generate sales momentum for Aqualisa Quartz??
Consumers Consumer did not like! •Poor Pressure •Little understanding of product options •Varying Temperature •Low Brand awareness •Shower broke down or “went wrong” •Lump sum prices for consumers •Hard-to-turn valves, leaky seals, and worn- out showers. • ( Hence, almost half the U.K. shower market Unaware about cost break down consisted of sales of replacement showers) (labor, material, excavation, etc). •Consumers were generally uninformed about showers.
4 P Analysis Product Price Place / Distribution Promotion Showers with Various Premium Trade Shop Advertisement categories. Standard Distributor (ex. Brochure) Type of Shower : Middle-Low Showrooms Web - Electric Shower DIY Outlets - Mixer Shower - Power Shower
Product & Price
Pricing Segment Premium Segment Consumer : - Shopped in showrooms - Granted high performance and service - Style determined selection Standard price Segment : - Emphasize performance and service - Product selection rely on plumber Value Segment : - Concern with convenience and price - Avoid solutions that required any excavation - Product selection rely on plumber - Concerned with convenience and price 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 dwel ers
Channels of Distribution r e m nsu o c r o f d n a br a e c i v d A • s r e b um pl m o r f e m a c s e l sa % 3 7 • s r be m u Pl t uc d o r p o t y t l a y o l h g i H • Plumbers Plumber . m he t f o % 5 2 t u o b a n i d l o s s a w nd a r b sa i l ua q A e h T •
ting c a r t n o c sub by s e c i v r se n tio a l a t s n i d e r e f O • s n ptio o h t a b nd a r e w sho us o i r a V • Show Sho ro r om s d n a br nd a s e n i l t uc d o r p d n e h- g i h y r r a c o t d e r r e f e Pr • s p sho
de a r t f o % 0 4 n i e bl a l i a v a s a w nd a r b sa i l ua q A e h T • r be um pl he t s a w r e m o t s u c y r a m i r p r i e h T • s nd a r b e l b a l i a v a l a ss o r c a s t c u d o pr d e i r r a C • Tr T a r de Sho de Sh p ds e h S Y I D f o % 0 7 n i e l b a l i a v a s a w d n a r b h g u o r o sb n i a G e h T • t f o r t e r o t r e i s a e d n a r pe a e h C • Y I D s t uc d o r p f l se ur o y - t i - do , t e k r a m ss a m , t un o sc di d e r e f O • DlY D Shed h
Plumbers •Had high technical expertise. •Strong influence on consumers. •Consumers often had to wait six months due to shortage •Charge about € 40 to € 80 per hour. •Plumber’s Electronic Syndrome: Loyal to single brand Distrusted innovation → cause Quartz failure in the market.
Quartz – the Breakthrough Product
The are 2 versions: The Quartz Standard Shower The Quartz Pumped Shower To install the Quartz shower: – the plumber had to identify a physical With Quartz technology: space to accommodate the remote – Installation time of a half-day processor – Plumbers were finding that the install – The processor contained the was so straightforward thermostatic mixing valve and pump – The Quartz shower provided efficient – The device could be mounted and reliable water pressure and horizontal y, vertically, or on its side, temperature – “one touch” control depending on space constraints – the temperature control is automatic
Quartz Value Proposition VALUE Easy to instal PLUMBERS More proftable – able to do more instal ation Take 0.5 day to instal which is only 25% of previous times Even apprentice can do the instal ation Efficient and reliable water pressure and temperature Safe to use for kids and elder people CONSUMERS One touch control with red light indicator Much easier to instal for DIY sector Excel ent design and aesthetics, which increases ownership pride
Initial Promotion • Curtain raisers at major shows like Bathroom Expo: awarded top prize! • Demonstrations & Press Events • Highly appreciated by the press on its cleverness and elegant design • Featured on the covers of trade journals
The Issue Tree
Cost and Benefit Individual Developers Plumbers Premium DIY Price Sensitive Don’t like &Standard innovation CO Low brand Change premium Smal market Costly to S awareness brand perception convert T Independent of Large market Largest market B plumber share E influence NE Influence plumber FI Premium brand Cheaper Strong T recognition influence to customer
Target Consumers Directly Pros • Target consumers directly, essentially a “pull” strategy, and build a consumer brand. • Will be able to better compete against Triton, the market leader. Cons • A costly strategy for Aqualisa. • Must be consistent to be effective (out of sight, out of mind).
Target Do-It-Yourselfers Pros • Gainsborough already successful in this category and Aqualisa could take advantage of its channels of distributions. • DIY may be willing to pay a premium because of its ease of installation. Cons • Expensive consumer advertising. • Must be consistent to be effective (out of sight, out of mind). • Potential cannibalization.
Target Developers Pros • Could sell in large volume. • Dealing with developers could simplify sales and make it less costly for Aqualisa. • Will force plumbers to familiarize themselves with the product. Cons • It could take time for the product to get to consumers. • Could be a tough sell due to premium price. • Only represents 15% of the market.
Target Trade Shops and Plumbers Pros • Plumbers have direct contact with final consumer. • 54% of mixer showers installations are done by plumbers, and trade shops represent 46.7% of the UK shower market • Plumbers have big influence on decision making process. Cons • Plumbers distrust innovation. • Plumbers may be difficult to sway and could take time to change their perception. • Trade shops carry other brands.
Final Recommendation Target Trade Shops and Plumbers!
Quartz sales are expected to reach €184,500,000 (most likely scenario), which is 4 times Aqualisa’s current sales.
Plumbers will become interested because they can become 4 times more productive and 2 times more profitable.
Consumers will become interested because they can get a better product for their money: a premium product with more benefits for less, and will experience less discomfort.
Aqualisa will develop and strengthen its relationship within the distribution channels and establish long-term bonds.
Product awareness and knowledge of its benefits will increase.
Target Trade Shops and Plumbers UK Shower Market (Total Units Sold, 2000) Do-It-Yourself Sheds Showrooms Trade Shops Other (Electrical wholesalers) 9% 36% 47% 8%
Evaluation of Alternatives CRITERIA WEIGHT OF CRITERIA 30% 20% 20% 15% 15% 100% Impact on channels Sales of Total Product Weighted Revenues distributio Market Awarenes Costs Average Potential n - share s Relationsh ip
Conclusion •Create an intensive Marketing communicating campaign to target market (consumer) & target influencer (plumbers) • Focus in premium market shower to increase their sales in Quartz product • Enhance market research to fnd what customer wants and needs of shower products really are
Thank You..! Group 6 – Wikreate Akshay Hiremath Nimisha Nasa Rahul Joshi Saurabh Wankhade Swati Singla