...saFrom: Milena Gueorguieva To: Professor Malaviya – Marketing Management Case: Aqualisa ------------------------------------------------- Date: December 2, 2010 Main Problem: Aqualisa creates a new breakthrough shower- the Quartz. The product has significant improvements when compared with the other existing products on the market, such as: * Efficient and reliable water pressure and temperature * One touch control on the wall * Light signaling the right temperature is achieved etc * Installation of the Quartz was about half a day (vs. 2 days for other showers) Survey shows that consumers and plumbers loved the product. However, initial sales are low, mainly due to low consumer awareness and plumbers’ reluctance to new products. Where does the problem lie in the funnel? Consumers are uninformed about showers, with little understanding of the products options. Thus, plumbers have a greater influence when selecting the brand, as only in 27% of the times consumers select type and brand of the shower, otherwise plumbers influence on the purchase. Lack of knowledge leads to lack of brand awareness. Options: 1. Targeting consumers directly: -Expensive to have a proper ad campaign (costs 3 to 4 M Euro) - The consumers decide only 27% of the time (ex 4) +Consumers could become more brand aware +Easier to reach consumers than plumbers 2. Targeting Do-It- Yourselfers -Lower-end part of the market thus will be price conscious, have...
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...What is the Quartz value proposition to plumbers ახალი პროდუქტი თავაზობდა სანტექნიკებს ყველა პრობლემის გადაჭრის გზებს: - დრო სამუშაოს შესასრულებლად საჭირო იყო რამდენიმე, საათი მაშინ როდესაც ბაზარზე არსებული ყველა დანარჩენი პროდუქტი საჭიროებდა 2 დღეს მაინც რომდაემონტაჟებინათ. - გამძლეობა პროდუქტი ძალიან გამძლეა რაც ასევე ამცირებს სანტექნიკების რისკებს რომ ისინი ერთ ოჯახში საშხაპის შესაკეთებლად მეორედ მივიდნენ. თან დამონტაჟების შემდგომ გამოძახებაში სანტექნიკოსები ფულს არ იღებდნენ, შესაბამისად ეს მათ ალტერნატიულ ღირებულებას ზრდიდა. Quartz-ი კი იმდენად უპრობლემო პროდუქტი გახლდა, რომ არ ითხოვდა დამატებით შეკეთებას. - მონტაჟი უკვე აღვნიშნე რომ Quartz-ის დამონტაჟება დიდ დროს არ მოითხოვდა, ამასთანავე ამ პროდუქტის დასაყენებლად არ იყო აბაზანის კედლის ზედმეტად გამონგრევის საჭიროება, რადგან Quartz-ის დანადგარი ფეხსაცმლის ყუთის ზომის იყო და თავისუფლად თავსდებოდა მცირედ ადგილასაც. სამონტაჟო სამუშაოებისთვის სანტექნიკს არ ესაჭიროებოდა მრავალწლიანი გამოცდილება და პროფესიული ცოდნა. ნებისმიერი ადამიანი მარტივად მოახერხებდა საკუთარი ხელით მის დაყენებას. Why is the Quartz shower not selling ჩემი აზრით მთავარი მიზეზი იმისა თუ, Quartz-ის შხაპები არ იყიდებოდა არის ის რომ არ იყო სწორად დაგეგმილი მარკეტინგული აქტივობა. ყველანაირი გამოკითხვებით და დაკვირვებებით ცხადი იყო, რომ ეს პროდუქტი უქმნიდა მომხმარებელს და შუამავალს (სანტექნიკოსს) იმ ღირებულებას რომელიც მათ ჭირდებოდათ. აქ...
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...1.1 Customer Segmentation and characteristics: 1.2 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...
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...number of master plumbers. Consumers were generally uninformed about shower options which they did not understand well. Technological: No real innovation before the Quartz. Only innovations at this stage are aesthetic but have a minimal effect on market share. Natural: COMPANY SWOT Evidence Implications Strengths Market Growth Aqualisa is a profitable company with a market growing at a rate of 5% to 10% in 1998 Strong reputation Premium brand Consumers view Aqualisa as a premium brand with great service and with top quality showers Top raking Number 2 in mixing valves and number 3 in the overall shower market Good relationship with plumbers Aqualisa has a long-standing direct relationship with a group of plumbers which they call “our plumbers”. They are very loyal to the Aqualisa brands. Wide distribution Aqualisa products (including Gainsborough) are sold in showrooms, trade shops, DIY sheds as well as sales people. Innovation The company spent three years and 5.8 million pounds to develop the Quartz. Also, several product innovations are currently being developed. Weaknesses Low distribution in showrooms Aqualisa products are only sold through 25% of the 2000 showrooms in the UK Developers are price-sensitive Most developers did not feel the need to invest in premium valves Opportunities Innovation There has been a very limited amount of innovation in the shower market since its inception except for the Quartz. Real breakthroughs are rare...
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...Purpose and Issues Purpose To revise the marketing strategy for the new Aqualisa Quartz shower, following poor initial take-up of the offer “Everything . . . tells me this is a breakthrough product. My worry is we’ll miss the opportunity.” Issues The Quartz is an innovative product that has brought improved functionality and ease of installation. However, plumbers are the primary route for shower purchases and this does not align with plumbers perceptions of values, because The very fact that it is a new product hinders take-up as plumbers are conservative The improved functionality is based on digital technology; plumbers are wary of this following previous bad experiences The reduced installation time translates into reduced revenue during the install for the plumber Change the behaviour of plumbers and encourage them to try the product, without cannibalising existing sales to plumbers; or Change the way end-users buy showers, reducing their dependency on plumbers by marketing directly to them 2 Because of this, the marketing plan needs either to Purpose and Issues Purpose To revise the marketing strategy for the new Aqualisa Quartz shower, following poor initial take-up of the offer “Everything . . . tells me this is a breakthrough product. My worry is we’ll miss the opportunity.” Issues The Quartz is an innovative product that has brought improved functionality and ease of installation. However, plumbers are the primary route for shower purchases and this...
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...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 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...
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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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...Marketing I Day 4 Report – Jeremy Pichitphan G595484 1. Breakdown of UK shower market is as below, Overall Characteristics * Every household had a bathtub but only 60% of them had showers. This shows big market growth opportunity (another 40%) * Shower market in UK is still undeveloped compared to other market for example in U.S. Consumers’ satisfaction is often low due to the following issue; * Low pressure of water * Unreliable water temperature * Low quality shower causing breakdown In addition, products in the market did not have any real innovation to solve all of this problems. This can be viewed as an opportunity for manufacturers who can come up with innovation that answer to these problems. * Consumers were also uneducated regarding products and can barely understand the different value given by each type of showers. Brand-awareness is low and decision often came from the advice from plumbers who mostly responsible for installation. This show another opportunity to educate both consumers and plumbers to create both demands. Products * Products in shower market can be categorized into 3 categories. Each has different pros and cons and suit to different type of consumers Product Type | Product Cost | Additional Cost (Plumber cost, etc.) | Installation | Pros | Cons | Electric Shower | Low | Low | Self-install or plumber | -Does not require hot water supply | -Low water pressure-Bulky box on the wall | Mixer...
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...Executive Summary Aqualisa has invested €5.8M in the research and development of its innovative new product, Quartz. Quartz is offered in 2 Models: Quartz Standard Shower and Quartz Pumped Shower. The main advantages of Quartz are: • Installation reduced to a half-day • Straightforward installation • Efficient and reliable water pressure and temperature • “One touch” control Despite initial favourable reviews from customers and plumbers, sales of the Quartz shower has been much lower than expected in the first 4 months. Aqualisa needs a strategy to drive greater sales in order to take advantage of being first to market and must maximize its profit margins before new rivals enter with similar products. The greatest obstacle for Aqualisa to grow market share and sales has been the slow rate of adoption by the conservative channel of plumbers. 73% of customers (value, standard and premium combined) rely on plumbers to recommend shower product and/or brands. In considering the available target markets for Quartz, the recommendation is that Aqualisa focus on engaging plumbers to adopt Quartz by demonstrating the economic value of switching and by offering loyal plumbers a no-risk option of a free product to install. Additionally, plumbers generate demand for products through the trade shop channel which accounts for 46.7% of shower sales. Aqualisa currently has 40% penetration in that channel. As plumbers are the primary customer for trade shops, it will be plumbers...
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...Hunter Lee Mountain Dew Case 10/16/12 For Pepsi Co. and BBDO to choose a specific advertisement to place into a slot during the super bowl; there has to be a varying degree of analysis on different aspects to decide which ad’s to place in the slots. Certain criteria need to be satisfied by the ad that is selected; it needs to hit the target audience, get across the correct brand image, have the correct brand symbolism, needs to be a “Story” in a sense, have a good product integration, and be in line with the campaign extension. If one of the ad’s can fall into line with these certain criteria all while “symbolizing that drinking Mountain Dew is an exhilarating experience” (Gopalakrishnan). BBDO is going to need to give Mountain Dew certain ad’s choices that are based off of certain filters that are factored into the decision that Mountain Dew makes. The first is that the ad’s need to expand to new customers also while still appealing to the current users. The selected ad needs to communicate a universal appeal. As well, the creative should bring out the product benefits: energizing, quenching, and great taste, emotional benefits: exhilaration and suiting to an irreverent, daring and fun personality. The outlying problem for Mountain Dew is selecting an advertisement that suffices all these criteria, but will be able to differentiate itself from the rest of the ad’s during the super bowl. Considering the super bowl advertisement market is possibly the largest...
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...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...
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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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...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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...Aqualisa is a well-established manufacturer of showers in the UK. The company is recognized for quality products, innovation and great service. Despite great features and benefits of the recently developed digital shower Quartz, the initial sales results are very disappointing, and the management needs to redefine marketing strategy in order to improve performance. In particular, key decisions need to be made about target segment, value proposition and marketing mix. 1. What value does the Quartz shower offer to plumbers and consumers (its value proposition)? Quartz shower is a very unique product in the market place with multiple competitive advantages. It offers great value for both plumbers and customers, however it seems that the target market has not been carefully selected and value proposition has not been well defined and communicated. | Plumbers | Consumers | Value Proposition | * Saves time on installation - easy to install within 4 hours, can be completed even by apprentice, low space requirement, less complex / challenging job * Allows to generate more profit versus other shower products – due to easy installation, plumbers can take more orders / jobs * Drives business & customer satisfaction – appealing product, easy to demonstrate, more happy customers due to product features & benefits, incremental business growth by word of mouth * Reliability - 5 year warranty | * Convenience, All-in-One - efficient and reliable water pressure and...
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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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