Is Aqualisa Quartz a good product? Why?

1. Easy to install. Half-day for plumbers.

2. Aqualisa’s good reputation

3. Overcame the problem of low pressure with a pump

4. Overcame problem of fluctuation in temperature

5. No bulky boxes. Can be hidden

6. Stylish. Electronic lights and buttons

7. Easy to use. One-touch control.

8. Safe for children

9. Elderly didn’t have to fight with stiff values

10. Easy to sell in showrooms as easy to demonstrate.

How does it create value for Consumers?

1. Efficient and reliable water pressure and temperature

2. Safe for kids and elders
3. One-touch control with a red light indicator that would help consumers know when the water
has reached the desired temperature
4. Easy to install
5. Excellent design and aesthetics that increases ownership pride
6. Automatic control and no need for manipulating anything

How does it create value for Plumbers?

1. Easy to install
2. Time consumed for installation was less
3. Young apprentice with lesser experience could do the job
4. More installation can be done and hence more earning

Why isn't it selling?

1. Plumbers were reluctant to switch because uncertain of the performance of a new product,
second visit.
2. Conservative nature of plumbers
3. Adoption takes a long time both from the plumber as well as a consumer perspective
4. The salesforce spent most of their time on maintaining the old accounts wherein their focus
should also have been creating awareness and reaching out to all the potential users
5. They connected with only a group of plumbers, which they should have increased

How do the channels differ? Which channel is most likely to embrace Quartz?

1. Trade shops- Were multi-brand and stocked products based on demand, the staff didn’t
have time for getting trained in new features because the product range was huge and
their focus was on the demanded stock.
2. Showroom- acted as consultant and they showed products mimicking the environment.
They provided solutions for bathroom designs. Provided installation solution as well
3. DIY sheds

Showrooms would most likely embrace Quartz

Which consumers shop where? Which consumer is most likely to embrace the
quartz?

Premium segment consumers– Shopped in showrooms.

o High performance and service is a hygiene requirement.

o Key consideration -- Style

Who are the critical players in the market? Why?

1. Triton was the market leader and had a dominant stance in the electric
shower category
2. Mira was 2nd in the general category of showers with a good lead in the
mixer shower area
3. Gainsborough was also strong in the electric shower category.

Note- Please quote the sales unit from exhibit 2

Given his resistance to innovation, is it worth converting a plumber? How much is

it worth (CLV)

The lifetime value of plumber

Number of installs per year 50

Contribution from each shower ( pounds) 310

 Total value per year 15500

Value from a plumber over 5 years 77500

What about a consumer - how much is it worth to convert a consumer?

Please calculate from case.

How important a product is 'Quartz' for Aqualisa? Why is it so important to Harry?

Is this product worth the 5.8 Million investment?

 Product innovation that promised to change the market FOREVER

 Technologically miles ahead

o Water pressure ( without gravity)

o Easy to install
o Easy to use
o Outstanding design
o Great value

 The R&D effort has created a good pipeline of great products. The
break-thru product justifies the investment on its own steam but it has
also paved the way for more exciting products to come

What other changes has Harry made to the company, in the process of
developing Quartz? Were these changes worth it?

 Building an R&D Team and with outsiders and insiders

 Testing facility was built
 An expanded engineering team from 6-20
 NPD pipeline was built

Why the multiple Brand strategy?

 Differentiated products for different customer segments

o Acqua- Premium
o Showermax– Customised product for the developer
 o Gainsborough– Price proposition for DIY buyers
 Makes it easy for the customer to identify the relevant brand and select.
 Competitive pitching
 Price to product value proposition clearly understood

Option 1- Target customer—Spend another 3 to 4 million pounds

Economically risky and inefficient.

Option 2- DIY market

pitching the easy to install proposition—

But should a premium product be positioned for discount channel

Or can one sustain a higher price even in this segment with the value offered?

Option 3- Target Developers—

High volume channel and break-thru with view developers can provide volume break
thru

Downside: Time lag in customers experiencing the product and this

will allow competition to catch up. Also, sell a premium product at

the steep discount didn’t seem right

Option 4

Sell niche as premium??

But niche implies LOW leveraging of product that transforms the user experience !!

The actual solution should be:

• Plumbers move across the channel and are primary gatekeepers.
• As they play a key installation role, they are best placed to advise customers and
accelerate the adoption
• Launch a service support program to reassure plumbers that Acqua will directly
service any issue that may come up
 o Thru Own service team or outsourced ( retained) plumbers Or even have
a program where the plumber is mapped to accounts installed by him and
any service is directed to him for a FEE paid by Acqua
• Launch a recommend and install incentive for the plumber.
• Launch plumber education program