Aqualisa Quartz Group 5

Arnab Sinha – 21P069

Arpita Mathur – 21P070
Manan Jhunjhunwala – 21P089
Manjari Kulshreshtha – 21P090
Karan Shah – 21P109
Shikhar Kansal - 21P110
UK Shower Market

• Showers in UK market were plagued with problems

• Only about 60% of UK homes had showers
• Gravity-fed pumping, where a cold water tank sat in the roof and a separate hot water
boiler or cylinder was used to store hot water in a nearby airing cupboard, was used
• It led to low pressure and temperature fluctuations, which were most disliked by the
customers
• The customers also complained about hard-to-turn valves, leaky seals and worn-out showers

• Most shower buys were replacement showers (44%)

• Awareness of product options and brands was low amongst the customers
Different Consumer Segments

• Premium – Shopped in showrooms, took performance and service for granted, style
determined their selection
• Standard – Emphasized performance and service, relied on an independent plumber to
recommend products
• Value – Prioritized convenience and price, avoided products that required excavation,
relied on independent plumbers’ recommendations
• DIY – Shopped at large retail outlets, interested in inexpensive models that were easy to
install, mostly bought electric showers
• Property Developers – Did not worry about pressure problems, preferred reliable, nice-
looking products, were price sensitive (except luxury developers), had relationships with
independent plumbers
Aqualisa’s Product Offerings
Type of Shower Description Value Standard Premium
Electric Shower • Hot water supply not required Gainsborough Gainsborough Aquastyle
• Bulky box on the wall
• Low flow rate
Mixer Shower • Both hot and cold water supply Aquavalve Aquavalve
required
• Required additional pump for
pressure problems
• Installation required excavation
Power Shower • Both hot and cold water supply Aquastream Aquastream
required manual thermostatic
• Bulky box on the wall
• Less reliable

• Aquavalve (mixer shower) was the top selling Aqualisa shower followed by power shower
• Aqualisa sold to developers under “ShowerMax” brand through specialist contract outlets
optimized for developers’ specific needs
 Channels of Distribution

• Trade Shops
• Primary customer was plumber
• Aqualisa brand available in 40% of shops
• Focus more on providing stocks on demand rather than technological advice

• Showrooms
• More high-ended, provided consumers a chance to view the product
• No inventory was stocked
• Offered installation services to consumers, Aqualisa was sold in 25% of them

• DIY Sheds
• Offered discount, mass-market,do-it-yourself products
• Electric showers led the sales as it was cheaper & easier to retrofit
• Aqualisa brand unaivalaible but Gainsborough brand available in 70% of its outlets
Development of Quartz shower valve
Pretext –
• Aqualisa had a strong reputation as a premium brand, providing top quality showers & great service
• Ranked 2nd in mixing valves & 3rd in overall UK shower market

Fears
• Other companies were catching up
• Aqualisa perceived as overpriced
• Aqualisa services deteriorated
• 10% of its showers went wrong which didn’t improve

Steps taken
• Build a R&D team to locate customer’s & plumber’s pain points
• Locate a mechanism that mixes water remotely
• Features like increased pressure to 2/3rd of maximum speed and maximum temperature limit of 45 degrees were added
• Company spent €5.8 M and acquired 9 patents and increased its engineering team from 6 to 20
The Quartz: Advantages

• Installation time reduced to half a day from 2 days

• Installation easy enough for young apprentices
• Excavation not required
• Efficient and reliable temperature and pressure
• Consumer liked the light button
• Safe enough for kids
• Elderly liked it as valves were not stiff
Quartz failure

• Plumbers did not want to switch to new technology

• Deficiencies in other products had to be pointed out in order to sell Quartz
• Niche product only preferred by a particular segment
• Positioned as a product for all but satisfied needs of 1 segment
• Only showroom sales were performing well because of working display
4P Analysis

Product Price
Superior to electric showers High price
Efficient and reliable water pressure Additional new features
Automatic temperature control Premium price caused easy targeting of consumers
Easy to install
4P Analysis
Promotion
Place
Print ad campaigns
Good number of distribution channels
Highest prize at the Bathroom Expo in London in
Showrooms, DIY sheds, trade shops May 2021
Porter’s 5 forces

Threat of new entrants Threat of substitutes

Market not matured Bath tubs will always exist and they can influence
how the customers
Low economies of scale
Industry rivalry perceive demand
High opportunity to
scale up business Diversified industry
High competition at local
level
High focus on brand
Power of buyers awareness and quality Power of suppliers
B2B market that could convert to B2C Large number of suppliers for all types of raw
Large consumer base with lot of options materials and finished goods, hence no major effect
of this force
Perceived value of consumers can be vital
 Recommendations

• Showermax might offer a less expensive version of the Quartz shower, which would increase volume in the
Developer category. This would also result in an increase in showroom distribution.

• Change the marketing approach such that each Showermax, Aqualisa, and Gainsborough has its own strategy.
Each strategy should appeal to a certain market segment.

• Create a Gainsborough version of the Quartz shower and sell it at - DIY stores, trade shops, and not
showrooms.

• Make contact with high-end consumers, negotiate contracts, and offer incentives to use Quartz showers.

• Invest in consumer advertising to raise awareness of the products' simplicity and, as a result, boost the
brand.

• Identify and educate plumbers about the new product innovation and usability.

• To improve the loyalty factor in the product through word-of-mouth publicity, try to establish a plumbing
community and educate them about the benefits.
Thank You!!