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Aqualisa Quartz: Group No. 1
Aqualisa Quartz: Group No. 1
Aqualisa Quartz: Group No. 1
Group No. 1
Agenda
1) Situational Analysis 2) Problem Statement
3) Strategic Options
4) Recommendations
Company High reputation (Top Quality & Great Service) Had a Premium Brand Image (in minds of Plumbers/ Developers) Ranked #3 in overall UK shower market & #2 in mixing valves Launched Quartz - 1st Significant Product Innovation in years
Channels Tradeshops
DMU- Plumbers Aqualisa in 40% of the shops Staff want reliable products over technical advice Responsible for 47% Sales
Showrooms
Premium Channel Bathroom Solutions DMU- Consumers in Consultation with Showroom Staff Aqualisa in 25% of the showrooms Responsible for 8% Sales
DIY Sheds
Discount Channel DMU- Consumers Aqualisa present through Gainsborough (70% of the sheds) Responsible for 36% Sales
Customers
Low pressure, Temperature fluctuations & Shower breakdown Low brand awareness Consumers Standard & Value followed Plumbers recommendations DIY Segment shopped in DIY Sheds; inexpensive products
Not Worried - Pressure problems ; Aesthetic Appeal - Reliable, Stylish products Price sensitive; except for Luxury Builders Developers Relationship -independent plumbers Separate Branding (ShowerMax) Lower cost & Optimized
Plumbers
High switching costs Highly influential; Primary customer of trade shops Scarcity of Plumbers Innovation skeptics
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Competition
Triton UK Market Share Highest market share 30% Others 20% Triton Consumer Brand 30% Mainly focused in Electric Showers (88% of sales)Ideal Standard 3%
Mira Masco 7% nd 2 Highest Market Mainly focused in Mixer Showers (51% of Aqualisa sales) 7% Mira 22% #1 in mixer Gainsborough shower: the main target 11% market for Aqualisa
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Context
In UK, almost everyone had a bathtub, only 60% had showers
Archaic Plumbing
2 Problems Low Pressure Fluctuations in Temperatures Innovation is rare in shower production Product Segments competed in Electric Shower Valve (61%) Mixer Shower Valve (31%) Power Shower Valve (8%)
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Aquavalve
Aquastream Manual Gainsborough Aquavalve 609 Aquatsream Thermostatic Aquaforce 1.0/1.5 Bar
Value
Value Standard Standard Standard Standard
Mixer
Power Electric Mixer Power Booster Pump
390
480 165 715 670 445
130
110
Premium
Premium Premium
Booster Pump
Electric Innovation
595
230 850
305
60 275
Quartz Pumped
Premium
Innovation
1080
345
Customer Insights
End Consumer
Great looks Good pressure delivery at stable temperatures Easy to use Breakdown proof
Plumber
Easy to install
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Average
Low
High
Price Pressure Control Temperature fluctuation control Safety Ease of Maintenance Current Shower Valves
Temperature meter
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Quartz
Internal analysis
Weakness
a. Low sales of Quartz b. Service Standards going down c. 10% of product went wrong (Not improving )
Strength
a. Well known in UK
b. Top Quality Showers c. Premium Brand e. Great Service f. Superior technology (Quartz)
Opportunity
SWOT
Threats
a. Customer Perception of being Over Priced b. Competitors catching up
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Problem Statement
Lack of brand awareness among the customers (plumbers and end consumers).
This has resulted in non materialization of the sales Showroom channel accounts for only 20%.
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Value Generation
Aquavalve 609
Cost of Aqua valve 609 Cost of Aqua force pump 2 days work expense Total cost
Quartz Cost of Quartz Cost of Aqua force pump Half days work expense Total cost 1080 200 (assumed) 1280
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Pros: Can build consumer brand Cons: High advertising budget (3-4m over 2yrs) Pros: Easy to install Cons: Risk of losing premium brand tag
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Targeting DIY
Targeting Developers
Targeting Plumbers
Recommendations To follow differentiation strategy with a focus on short term and long term Short term:
Educate plumbers:
Identify and educate opinion leaders
Showrooms:
Quartz will appeal to customers who requires high end product
Developers:
Quartz will help to high end customers
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Questions
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