...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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...be as easy as they thought. In Aqualisa case, Harry Rawlinson, managing director of Aqualisa, gives us an example that even with new significant shower product Quartz, which seems to be perfect in every aspect, they cannot make a relative progress in U.K. shower market. Quartz is designed to solve all the troubles that exist in U.K. showers. It provides efficient and reliable water pressure and temperature, needs less space in bathroom, has a stylish looking and is easy to use and install. Although Quartz leaps all other showers, the initial sales results turned to be gloomy, as Rawlinson said “For some reason, it simply wasn’t selling”. To reveal these “reasons”, we will first look at the general shower market status, and then we will analysis two main factors that cause Quart fail in initial Sales: Quart itself and Plumber. Finally, we will examine Aqualisa’s marketing strategy and find out what is the right thing to do. Shower market in U.K. The U.K. shower market has 3 distribution channels, 3 buyer segments, and 2 Special roles: Plumber and Developer. To give a brief summary, we will use some charts to demonstrate characteristics of these elements, and use it for latter discussions. Chart 1: Distribution channels in U.K. shower market Distribution channels Features Showrooms Consulting and display High end Installation services Aqualisa share 25% Trade Shops Sell all available brands Primary customer is plumber Aqualisa share 40% Do-It-Yourself Sheds...
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...AQUALISA QUARTZ: SIMPLY A BETTER SHOWER F ELIX L E C HEVALLIER – 11/01/2012 1) Which value do the various products from Aqualisa (the UK company) create: for consumers ? for plumbers ? for its channel partners ? The first step that we need to take is to analyse what are the segmentations of the market. There are three pricing segments as said in the case: premium, standard and value. These segments differentiate the basic consumers; we then have DIYers and developers that have specific standards. We will analyse the aquastream, the gainsborough, the aquastyle and the aquavalve, and the quartz. Channel DIY outlet Consultant’s Advice Decision Criteria Customer Segment DIYers Customer Values Price Convenience Style Performance Service Price Convenience Reliability Style Price Quartz -++ ++ ++ ++ -++ ++ ++ -Gainsborough Aquavalve Aquastyle ++ / -+ ++ + / ++ -/ + + -+ / ++ -+ ++ + + ++ Aquastream -/ ++ + -/ -- Showrooms ACQUALISA Premium Trade Shops Plumber’s advice Standard Value Specialist Contract Habit & Relations Developers The products show great differences in their characteristics in addressing customer’s preferences. They are targeting different segments and thus they don’t create value thanks to the same advantages In addition to the table, we can stress one of the preferences of the plumbers that is of importance. The installation time sensitivity. Indeed, as said in the case, the main issue is the reluctance of plumbers towards electronical...
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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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...Organic Farming Visit Date: ___________________________ Section 1: Aim The aim of this site visit is to learn about - The use of a greenhouse in agriculture - The importance of biological pest control in agriculture - The use of fertilizers in agriculture - The features of the Maltese soil - The use of good agricultural practices such as crop rotation Section 2: Observations and Data Collection This section will be like a long discussion. You need to include photographs taken on the visit. Paragraph 1: The greenhouse Take a photograph of the greenhouse visited. Describe the main features of the greenhouse visited during this site visit. List down the crops grown in the greenhouse you have visited. Do some research about other crops that are commonly grown in a greenhouse in Malta. Discuss THREE advantages of using a greenhouse to grow crops Discuss THREE disadvantages of using a greenhouse to grow crops Biology Site visit Form 4 Page 1 Organic Farming Visit Paragraph 2: Biological pest control Give the definition of biological pest control. Ask the visitor about the typical pests targeted in the greenhouses visited. List them down. Explain which organisms are used to control the spread of the mentioned pests Discuss THREE advantages of using biological pest control Discuss THREE disadvantages of using biological pest control Paragraph 3: Fertilizers Discuss the importance of fertilizers in agriculture Discuss any deficiency...
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...AQUALISA QUARTZ: SIMPLY A BETTER SHOWER by Nir Ilani-Freedman Situation analysis (Q1) a. Customers Segmenting and characteristics Premium price segment- consumers typically shop in showrooms. Preferred specs: high performance and service. Style determined selection. Granted high performance and service. Standard price range: Emphasize service and performance. Product selection Rely on independent plumbers’ recommendations. Value segment: Primary concerned with convenience and price. Liked to avoid solution that required any excavation. Product selection relies on independent plumbers’ recommendations. DIY market- Primarily interested in inexpensive, easy to install models. Electric showers were the overwhelming choice in this segment. Shopped at large retail outlets. Popular among landlords & apartment dwellers. Property developer market: Preferred reliable nice looking products that could work in multiple settings, price sensitive, did not invest in premium valves. Used independent plumbers to install their selected products. b. Channels of distribution: Products sold, primary customers, channel characteristics Trade shops: Carried products across all available brands. Mainly sold to plumbers that worked for developers, contractors or directly to consumers. Their focus was to have right stock of products in demand. Their customers are looking for reliable product availability more than technical advice. Aqualisa brand was available in about 40% of trade shops...
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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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...Solution 1 Aqualisa Quartz: Simply a Better Shower Case Executive Summary Situation Aqualisa Quartz, a significantly innovative product developed by Aqualisa, in terms of both cost and quality, has been facing challenges in the market since its launch four months ago. The product described by one of the customers (a plumber) is a 'push-fit-connect-you're done' shower and offers the customers 'what they (the plumbers) want'. Despite the above facts, Quartz has experienced poor sales and has not met the company's expectations. Brand awareness was low in the industry, problems were frequent breakdowns, re-installations, and leaking/stiff valves, besides pressure and temperature inconsistencies, and nearly half the sales were from replacements. The new Quartz product line is experiencing a very slow adoption process probably mostly due to the stigma that has remained from other electronic showers that have failed. Consumers and plumbers do not have much faith in the current quality of existing shower products much less an electronic version. The Market Showers were affected by low pressure and varying temperature of water. Aqualisa sold the electric showers, one of the solutions, through their Gainsborough brand; electric showers were visible in the shower stalls and did not solve the pressure problem. Mixer showers were the other solution. Manual mixers and Thermostatic Mixers were available. Aqualisa sold the Aquavalve in this segment, it was thermostatic, but could...
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...1. PROBLEM STATEMENT In 2011 Aqualisa made an heavy investments of €5.8 million to develop Quartz, the most innovative shower in UK history. The electric shower is stylish, easy to use and install and solve both problems of end customers and plumbers. However, the product is selling at a rate of 15 units per day which is well below the expected rate of 100 to 200 units a day. The company is now looking for a new marketing strategy to generate sales momentum for Quartz. 2. SITUATION ANALYSIS Aqualisa, the 3rd largest shower manufacturer in UK with 18.1% units sold, has had a successful multi brand strategy focused on high quality innovative products, which allowed it to enjoy 25% net return on sales and a growth from 5% to 10% in a mature market. The two market leaders, Triton and Mira, have 30.3% and 21.7% respectively. The company is present in all segments of the market, and has a broad product range of nine models, which cover the three types of showers used in the UK (power, mixer and electric), ranging between €230-670 per unit. The company is also present in all consumer markets, serving both B2C and B2B clients. Their channel relationships are strong and the company is reputable in the UK market for its top-quality showers, reliability and great services. The UK shower market has a big potential since only 60% of homes have showers therefore the remaining 40% could be converted to installing showers. The population that already has showers have a variety of complaints...
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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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...Aqualisa Quartz Analyzing the case of Aqualisa Quartz, it has been decided that the best option for them is to go gaining market penetration by phases. The first should consist of reinforcing and not neglect their sales through Showrooms. These specialized channels accepted provided innovative products and high-tech, in addition, seek always count with showers which aesthetically look good such as Quartz. As a second phase (and this should be developed at the same time as the first) should be sought to achieve a share of Plumbers who know the brand. It is known that plumbers proving to install sprinkler Quartz become our brand by saving in time that this represents them (by what could attend more homes in less time) and saving to the final consumer. This knowledge with the plumbers can be through sampling of the product, giving away samples and brochures showing the benefits. In addition, to enable them to get to know more of the product and in this way to get to most homes. The plumbers are those who succeed in our product to get volume in the market and they will focus our strategy. As regards the price of Aqualisa Quartz has decided to keep it because of the benefits of innovation, offering, in addition to the benefits for the plumber and the final consumer. Key success factors Maintain and increase the presence of Aqualisa Quartz in Showrooms to display product. Aqualisa operates in 500 showrooms. While the showrooms is the less important for the industry,...
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...Channels: 1.3 Competition: Top UK shower market competitors including Aqualisa have been shown below with their market ranking and market share in each kind of shower products: 1.4 Company and Market environment: Market Environment U.K. shower market is a matured market and can be roughly estimated to be around € 400 million market Showers in U.K. were plagued with problems. Only about 60 percent of U.K. homes had showers Archaic plumbing (mostly gravity fed) was common in many homes leading to low water pressures Majority of the market revenues come from Electric showers followed by mixer and power showers More than 70% of the shower selection is influenced by the plumbers Most of the shower companies in UK have low brand awareness except Triton Company Aqualisa is the third largest company in the UK shower market by sales volumes and second in mixer showers It has a good product mix with product offerings in all the segments and across all the channels in UK Aqualisa has a revenue of around € 68 million with a base profit of around 25% It has a reputation for providing good quality and service SWOT Analysis 2. Quartz Shower Value proposition for consumers The value proposition for installing Quartz premium compared to Aquavalve609 standard with Aquaforce 1.0/1.5 has been explained below: Cost saving Quartz Pumped Premium total cost calculation: Aquavalve 609 standard with std. Booster...
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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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...DATE To: Harry Rawlinson, Managing Director, Aqualisa From: Jun Mo Kim, Marketing Analyst Subject: The marketing strategy for the Quartz product Introduction Showers market in the U.K. was bothered with problems that only about 60% of households in U.K. had showers. Even though Aqualisa accomplished an innovation of the Quartz shower, momentous product regarding quality and cost, they still faced problems that had low sales and did not meet the company’s expectations. The purpose of this memo is to review the important features related to a new plan for Aqualsa’s success in the future. This memo will address market analysis, situation analysis, and a recommendation. Market analysis According to case, showers in U.K. used four different channels such as trade shops, distributors, showrooms and DIY outlets to sell products. First, the major customer of trade shops was the plumber who was seeking believable product availability rather than official information and Aqualisa products were available in 40% of trade shops. Next, about 2,000 showrooms were in U.K. and about 25% of Aqualisa products were sold. They tended to be more high-end and were supplied by distributors. Therefore, Consultant in showrooms usually helped consumers for the choosing and planning for their bathroom. Also, showrooms not only enabled costumers to view the product but also offered installation services. Last, do-it-yourself retail outlets offered do-it-yourself products such as Electric...
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