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Aqualisa Case

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Marketing Strategy // Fall Semester 2013/14 // Prof. Dr. Kuester // Zaehringer Lucas, Prikhodko Roman, Oberhofer Moritz, Nan Jiaxi, Brozda Jacek, Achtelik Olivia // Aqualisa // 15.10.2013

THE INDUSTRY PRIOR TO 1998
• Mature market with incremental innovations • Biggest part of the market is replacement (44%) • 60% of UK homes have showers • Gravity-fed plumbing: pressure and temperature problems • Three main types of products (electric, mixer and power showers) • Low brand awareness: plumbers as main customers

THE INDUSTRY PRIOR TO 1998
DISTRIBUTI ON CHANNEL PRICE SEGMENT CUSTOME R SEGMENT

Trade Shops

Showroo ms

Special Contract Outlets

DIY Sheds

Standard/ Value

Premium

Standard/ Value

Value

Plumbers Property Developer s DIY Enthusias ts

Traditiona l

High-end

THE COMPANY’S SITUATION/STRATEGY PRIOR TO 1998


Multiple brand strategy: several shower-systems cover different price and customer segments Focus on well known technologies (continuity) Reliance on the very good reputation and image of the company





• High profitability (25% net return; 5-10% growth per year; high market share)

„everyone was happy“

THE COMPANY’S SITUATION/STRATEGY PRIOR TO 1998

BU Rawlinson's predictions in May of 1998: T
• Competitors will catch up in terms of product quality • Actual service and product quality is extenuating • Aqualisa will be perceived as overpriced

RATIONALE BEHIND THE MULTIPLE BRAND STRATEGY
Gainsborough Aqualisa
Target group DIY enthusiasts Brand image Inexpensive and easy to install, specialized in electric showers

Aqualisa
Target groups Plumbers and high-end customers Brand image High-priced top quality product (good service and reliability)

ShowerMax Aqualisa
Target group Property developers Brand image Good price value ratio (due to value engineering), good looking

One brand

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