...November 13, 2011 Aqualisa Quartz Case Study SCH-MGMT 660 Ben Hubbard FALL 2011 Table of Contents Overview............................................................................................................................... 3 SWOT Analysis: ..................................................................................................................... 3 Strengths: ......................................................................................................................................3 Weaknesses: ..................................................................................................................................3 Opportunities:................................................................................................................................3 Threats: .........................................................................................................................................3 Alternative Analysis............................................................................................................... 3 Plumbers: ......................................................................................................................................4 Showrooms: ...................................................................................................................................4 DIY:.......................................................................................................
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...Aqualisa Quartz Subject: How to best market the new Aqualisa Quartz line of showers Problem: Aqualisa has created a superior new shower line that seems to be perfect for the needs of customers but the sales are far below expectations. Customers do not have brand awareness of Aqualisa, plumbers are wary of innovation and salesmen are unsure of how to positively market a product without negatively reflecting on other products in their company. Background of the situation: In the United Kingdom only about 60% of homes have showers due to the unique issues of bathroom remodels in Victorian era homes. Homes with plumbing from this period are gravity fed, with a separate boiler; this meant poor water pressure and temperature fluctuations. Three types of shower solutions were installed in UK bathrooms. * Electric Showers use water from cold water supply. Electrical heating elements in the shower raise the temperature of the water. This type of shower did not address the flow problem. These are a budget solution and very bulky. * Mixer Shower valves; either Manual or Thermostatic. Both mix hot and cold water to create the desired temperature of the water; these require a lot of excavation of the wall during the installation. To help the water pressure additional booster pump was used. These are a high end, attractive, but costly solution. * Integral power showers are compact with thermostatic mixer valve and a booster pump. They require mounting of a box in the wall...
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...HSS 562 – Aqualisa Quartz: simply a better shower” 1) Which value do the various products from Aqualisa (the UK company) create: for consumers? For plumbers? For its channel partners? * Aqualisa is present on all types of markets with different brands * three pricing segments: premium, standard and value * premium segment : * motivation for the purchase: replacement shower, second shower, search for higher performance, new build/styles * the decision criteria: style * the preferred channel: showrooms * Aqualisa products : Aquastyle, Aquaforce 2.0/3.0 Bar, Quartz Standard, Quartz Pumped * standard segment : * motivation for the purchase: replacement shower, second shower, new penetration, search of higher performance * the decision criteria: performance, service and advice from their independent plumber * the preferred channel: showrooms, trade shops * Aqualisa products : Aquavalve 609, Aquastream Thermostatic, Aquaforce 1.0/1.5 Bar * value segment : * motivation for the purchase: replacement shower, second shower, new penetration * the decision criteria: convenience and price * the preferred channel: trade shops * Aqualisa products: Aquavalve Value, Aquastream Manual, Gainsborough brand * 2 additional markets : developer market and do-it-yourself (DIY) market * developer market * motivation for the purchase: equipping new homes * the decision criteria: reliability, look, could...
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...- - - - - - - - - - - - - Customers Shower buyers fall in three pricing segments: premium, standard and value. First, premium segment is conducted of people who mainly shop in showrooms. Their focus is on great service and high performance. Second segment is called standard. Customers in this segment rely on plumber recommendation and emphasize performance and service. Value segment conducts mainly customers who are primarily concerned with convenience and price. Thus, they like to avoid excavation and also tend to rely on independent plumber in selecting a product. Value segment falls in with DIY market, where people tend to buy in large retail shops, interested mainly in inexpensive models that are easy to install and they are also strongly price sensitive. Channel Main three channels of distribution are Trade shops, Showrooms and DIY Sheds. It is evident that Do-it-Yourself Sheds are dominant in sales for Electric Showers (550.000 units) , which are cheap and easy to install and designed for mass-market. Followed by Mixer Showers (80.000 units) and Power Showers (20.000 units). This represents buyers of lower pricing segment. Showrooms tend to be for more high end products and customers with higher income. Here the best selling products are Mixer Showers (70.000 units), followed by Electric Showers (55.000 units) and Power Showers (20.000 units). Trade Shops are places most applicable for plumbers, where reliable product availability is more important then technical...
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...Case study Aqualisa Quartz: Simply a better shower Q1. What is the Quartz value proposition to a) consumers b) plumbers? Ans. Aqualisa, a U.K. based shower manufacturing Company had launched its premium brand µQuartz¶ in May 2001. The Company has been very reputed in the U.K. market for its top quality showers, reliability and great service. The basic purpose behind launching this brand was to address the concerns of the consumers and the plumbers which perhaps were not satisfied with the existing products in the market. Stated below are the issues faced by the consumers and the plumbers and the value proposition offered by Quartz: a) Consumers: Consumers were typically not happy with the kind of showers that were available in the market as revealed by the market research conducted by the Research and Development team of Aqualisa. The consumers wanted a shower that looked elegant, delivered water flow at good pressure, had a stable temperature, was easy to use, do not break down easily, have valves that do not become stiff and hard to turn after a period of time and don¶t require servicing very often. Also, they did not want the big bulky boxes installed for the mechanical control right over their shower wall. Inorder to address these concerns, Aqualisa launched its new product Quartz for providing a solution to the problems faced by the consumers apart from having certain added features. The Quartz, being elegantly designed was easy to use. It gave an option to consumers to run...
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...Aqualisa Quartz Simply a Better Shower 1) In 2001 the Company came up with Quartz Standard Shower and Quartz Pumped Shower. The production and innovation used to create these two products provided the following value proposition to the two groups: a) Consumers : The consumers were unhappy with the existing showers in the market , they faced the following issues that were addressed by Quartz * Poor Pressure and varying temperatures of water * The life of the showers was limited , they would break after some time * Due to scaling, it becomes hard to turn knob of the shower * Getting a plumber to fix a standard shower Typically took 2 days and the waiting line for getting a plumber was 6 months due to shortage of master plumbers * Bulky set up for the shower The Quartz dealt with all these issues and more for the consumer, the developed a shower that addressed all the needs * It provided efficient and reliable water pressure at the press of a button * At the desired temperature of 41 degrees * The easy push button to control light on valve that flashed red every time the water was ready for use * It was safe to use for kids and the elderly didn’t need to struggle with the turning the tap * It didn’t require much time for installation, was easy and not bulky * It was perceived as efficient and incredibly convenient b) Plumbers : The main concerns faced by the plumbers were * They were skeptical towards technology and...
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...Marketing Concepts Aqualisa Quartz Case Study Problem As Rawlinson stated, “real breakthroughs are pretty rare in the shower market” and that “innovations are primarily cosmetic.” After years of moderate growth and marketplace comfort, Aqualisa made the decision to revamp its R&D efforts to produce an innovative solution to the common consumer shower troubles of water pressure, consistent temperature, and reliability. When Aqualisa released Quartz, a new and innovative shower product line that would solve the consumer shower problems; it was hampered early by slow sales and a slow adoption rate in the early goings of the product launch. As managing director of Aqualisa, Harry Rawlinson was challenged with the question of how to generate sales momentum for the Quartz showers. In addition to increasing sales there was also a question that Rawlinson failed to thoroughly address in the article, which was, should he drop the price? Analysis One thing that Rawlinson would have to consider for driving sales would be the price of the product. Although the article does not include any bulk or discounted prices, Rawlinson often stated in the article that discounting the price of their products was not something they cared to do. What I find interesting about the Quartz products is that the cost to produce the product is very comparable (€175 - €230) to the other products that they were currently making. Granted there was an increase from the money spent on R&D, but his perception...
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...Professor Youngme Moon and Research Associate Kerry Herman prepared this case. HBS cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. Some data have been modified or disguised. Copyright © 2002 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685, write Harvard Business School Publishing, Boston, MA 02163, or go to http://www.hbsp.harvard.edu. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of Harvard Business School. YOUNGME MOON Aqualisa Quartz: Simply a Better Shower Plumbing hasn’t changed since Roman times. — Tim Pestell, Aqualisa national sales manager Harry Rawlinson (HBS ‘90) shrugged out of his overcoat and headed to the reception desk of the South Kent County Marriott. “Can you direct me to the breakfast room?” he asked, “I’m meeting some guests from America.” The receptionist pointed toward a hallway lined with photographs of the region’s golf fairways and putting greens. “It’s just to the left down there,” she said. As he strode down the narrow corridor, Rawlinson, managing director of Aqualisa (see Exhibit 1), a U.K. shower manufacturer, felt a surge of energy. He...
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...Marketing Management Case Study May 2, 2013 Prof. Michele Costabile Francesco Borsetti Davide Novelli Bruno Ricardo Yuli Pacheco Valentina Verde UK MARKET FOR SHOWERS Environment Clustering THE PRODUCT SWOT ANALYSIS BRAND MANAGEMENT PRICING Cost comparable Pricing strategy PUSH STRATEGY Which advantages for the intermediaries? PRODUCT PROFITABILITY: BREAK EVEN POINT VALUE PROPOSITION CHANNEL AND DISTRIBUTION CONCLUSIONS Low diffusion of showers/high diffusion of bathtube Old equipments with temperature and pressure problems Low product involvement Low brand awareness (Triton excluded) Key role of plumbers 10,000 Master plumbers in UK SHORTAGE Long training 40-50 showers installation per year Labour cost: €40-€80 per hour Warried about innovation Plumbers advises about showers influence the 70% of the market Value segment Price sensitive Influenced by plumbers Standard segment Performance and service sensitive Influenced by plumbers Style sensitive Showrooms buyer Influenced by showrooms consultants Developers Large channel Price sensitive Different needs: in new buildings there aren’t pressure/temperature problems Do-it-yourself Premium segment Price sensitive Need easy installation Plumbers: the Infomediary Product Innovative for the market Solution of diffuse problems: low...
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...9-502-030 REV: JULY 10, 2006 YOUNGME MOON Aqualisa Quartz: Simply a Better Shower Plumbing hasn’t changed since Roman times. — Tim Pestell, Aqualisa national sales manager Harry Rawlinson (HBS ‘90) shrugged out of his overcoat and headed to the reception desk of the South Kent County Marriott. “Can you direct me to the breakfast room?” he asked, “I’m meeting some guests from America.” The receptionist pointed toward a hallway lined with photographs of the region’s golf fairways and putting greens. “It’s just to the left down there,” she said. As he strode down the narrow corridor, Rawlinson, managing director of Aqualisa (see Exhibit 1), a U.K. shower manufacturer, felt a surge of energy. He had been looking forward to this opportunity to discuss an HBS case possibility. In May 2001 Aqualisa had launched the Quartz shower, the first significant product innovation in the U.K. shower market since—well, to Rawlinson’s mind—since forever. But here it was early September 2001, and the euphoria surrounding the product’s initial launch had long since faded. Rawlinson knew the Quartz was technologically leaps and bounds above other U.K. showers in terms of water pressure, ease of installation, use, and design. But for some reason, it simply wasn’t selling. The U.K. Shower Market Rawlinson leaned forward as he began to explain his situation. Showers in the U.K. were plagued with problems. While everyone had a bathtub, only about 60% of U.K. homes had showers....
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...9-502-030 REV: JULY 10, 2006 YOUNGME MOON Aqualisa Quartz: Simply a Better Shower Plumbing hasn’t changed since Roman times. — Tim Pestell, Aqualisa national sales manager Harry Rawlinson (HBS ‘90) shrugged out of his overcoat and headed to the reception desk of the South Kent County Marriott. “Can you direct me to the breakfast room?” he asked, “I’m meeting some guests from America.” The receptionist pointed toward a hallway lined with photographs of the region’s golf fairways and putting greens. “It’s just to the left down there,” she said. As he strode down the narrow corridor, Rawlinson, managing director of Aqualisa (see Exhibit 1), a U.K. shower manufacturer, felt a surge of energy. He had been looking forward to this opportunity to discuss an HBS case possibility. In May 2001 Aqualisa had launched the Quartz shower, the first significant product innovation in the U.K. shower market since—well, to Rawlinson’s mind—since forever. But here it was early September 2001, and the euphoria surrounding the product’s initial launch had long since faded. Rawlinson knew the Quartz was technologically leaps and bounds above other U.K. showers in terms of water pressure, ease of installation, use, and design. But for some reason, it simply wasn’t selling. The U.K. Shower Market Rawlinson leaned forward as he began to explain his situation. Showers in the U.K. were plagued with problems. While everyone had a bathtub, only about 60% of U.K. homes had showers. Archaic plumbing...
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...AQUALISA CASE STUDY AQUALISA VALUE PROPOSITION • Easy to install: half a day V/S 2 days. Apprentice can also install • Earn more Plumbers can do more install in less time more profitable • Reliable : lesser break downs. Second visit if require need to be borne by the plumber. C O N S U M E R S • Safety: Family and especially safe for kids • Ease of use: Remote control, one touch button, indicator - All age group can use. • As easy to installed DIY customer can easily adopt. • No issue :flow, temperature pressure or P L U M B E R S • Smart & Sleek design: No excavation, no major space requirement • Save Labor & excavation cost WHY IS QUARTZ SHOWER NOT SELLING Great PRODUCT High PRICE Lack of awareness: Among Plumbers, Consumers, Distribution channels, plumbers skeptical due to past experiences to adopt newer innovations. Lack of focus: only 10% time spend by employees focusing on new customer, 90% in maintaining existing accounts, distributors, contractors, trade etc. Lack of marketing efforts: Very selective & limited promotion. Average POSITIONING Low PROMOTION Was Aqualisa Worth the Money • Aqualisa Quartz - a great product • Overcame shortfalls in other showers in the market had, including Aqualisa’s own brand. • Efficient & reliable water pressure, temperature control, ease of installation, one touch button and other features. • 1st price at Bathroom Expo in London in 2001. • Good and positive reviews about the product in the news papers...
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...One of the reasons the sales of the Aqualisa Quartz failed is because the product was a premium priced item that was aimed at the wrong target audience. This could be because as a company they did not have many if any products that fell into this sector making it hard for them to understand how to advertise the product to the public and where was best to place the product as well. No new product offer As with many new products there is normally some form of offer to get people attracted and hooked to the product. However with the Quartz there was nothing to show customers what made this shower stand out from any other on the market and an offer of some form could have helped this. Lowering the price like is mentioned many times in the case study would not have helped at all as there has to be a general interest in the item first to warrant a reduction in price. Too much time spent on current customers and not enough on gaining new customers Limited amount of product face in limited amount of locations . Confusing advertising Current market planning Lack of communication across the board no one person on the same page No planning – plan on how much to sell but not on how to sell it. - Marketing planning process overview section 2 - Pest/swot analysis section 2 - Marketing mix section 6 onwards - Segmentation section 5 Product portfolio Quartz Gainsborough Shower max ...
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...Aligning Strategy and Sales 2012 December 2 - December 7, 2012 Schedule for Sunday, December 2, 2012 Time 11:00 - 3:30 PM 4:00 - 5:45 PM Event Registration Opening & Introductory Case Session Instructor: Frank Cespedes Location McArthur Hall Program Office McCollum 101 Cabot Pharmaceuticals, Inc. (510030) 5:45 - 6:30 PM 6:30 - 7:30 PM 7:30 PM Opening Reception Opening Dinner Individual Preparation McArthur Hall Lounge Kresge South Terrace Copyright 2012 President and Fellows of Harvard College Aligning Strategy and Sales 2012 December 2 - December 7, 2012 Schedule for Monday, December 3, 2012 Time 7:00 - 8:00 AM 8:00 - 8:45 AM 9:00 - 10:15 AM Event Breakfast Discussion Groups Case: Ben & Jerry's Homemade Ice Cream, Inc.: A Period of Transition Instructor: John Wells Location Kresge Boardroom Assigned Living Group McCollum 101 Ben & Jerry's Homemade Ice Cream, Inc.: A Period of Transition (796109) 10:15 - 10:30 AM Class Photo 10:30 - 10:45 AM Break 10:45 - 12:00 PM Lecture: Strategy Articulation Instructor: John Wells 12:00 - 1:00 PM 1:00 - 1:40 PM 1:45 - 3:00 PM Lunch Discussion Groups Case: Edward Jones in 2006: Confronting Success Instructor: Frank Cespedes Kresge Boardroom Assigned Living Group McCollum 101 Baker Library McArthur Hall Lounge McCollum 101 Edward Jones in 2006: Confronting Success (707497) 3:00 - 3:15 PM 3:15 - 4:15 PM Break Lecture: Making & Articulating Strategic Choices Instructor: Frank Cespedes 4:15 - 6:15 PM 6:30...
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...value and profit for the company. Maintaining a strong and compelling value proposition and long-term relationship with the company’s customers are vital for the company’s continued success and require constant monitoring of market, environmental, technological and competitive forces. Marketing is therefore integral to establishing a company’s strategic direction. This in turn makes marketing skills and perspective essential to the success of all business managers in any business. This course provides an in-depth exploration and practical application of basic marketing tools. These include product policy, pricing, promotion, distribution, sales management, and customer segmentation and retention. In most classes, we will analyze case studies that require us to identify marketing opportunities, refine value propositions, select customer segments and develop marketing programs for a variety of management situations. The course also includes a number of creative and analytic...
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