1. Aqualisa Quartz Simply a Better Shower Strategic Marketing Case 2
Javier Ortiz
Ella Leppänen
Saara Sulonen
Stheffany Godoy G.

2. Agenda Current situation and problems Identification of the problem
Possible solutions
Our recommendation
Reasoning
Actions

3. The current situation
60% houses in UK has a shower, 100% has a bathtub.
Showers don’t work well, users are dissatisfied
Director of Aqualisa, launched the Quartz Shower
Features: Quality, safety, low cost, ease of installation and usage
Solves the problem of the plumber and end customer
Early sales were disappointing

4. General problems Low sales; Why sales weren’t as expected?
Advertisement
Plumbers
Company
Not focused on the biggest part of the market. (Price to users and innovation to plumbers)
A bungled installation requires a second visit and the plumber needs to pay it him/herself
Plumbers distrust new ways of working and products, specially if they involve electronics
There are already more type of showers that Aqualisa offers

5. Why hasn’t the sales of Quartz shower gone as well as planned?
THE MAIN REASON
Unclear targeting,
they don’t know who to sell
End users?
DIYs?
Plumbers?
Developers?

6. Unclear targeting leads to several other issues
Only one drilling
Nice looking
Communicating value
Simple installation
No bulky boxes
Premium product
How?
To whom?
Everybody can do the installation
Good pressure
Reliable temperature
Safe to use
What to sell
Turbo charged option
5 years warranty
Climate control
New innovative product but old marketing strategy
Product?
Benefits?
0-18 liters / min
Touchtronic operation

7. The innovativeness and newness of Quartz causes its own obstacles
How to raise consumers’ awareness?
Consumers are not aware of Quartz showers and only few asks the plumber to install it
Plumbers have typically huge prejudices toward electronic showers & they are reluctant to recommend that type of a shower to their customers
How to get past the plumbers’ prejudices?
How to raise consumers’ awareness of the product and how to get plumbers love it
How to get past the plumbers prejudices

8. Different targets value different things
End users
DIYs
Plumbers
Developers
Easy-to-use shower that doesn’t “go wrong”
Good pressure Stable temperatures
Easy-to-install
Inexpensive
Don’t mind bulkiness & unattractiveness
Easy & fast installation
Push-fit-connect-you’re done
No second visits
Guarantee to not break down
Reliable & nice looking products
Must work in multiple settings
Inexpensive

9. Different targets have their own pros and cons
End users
DIYs
Plumbers
Developers
Build consumer brand
Better position against Triton
Utilizing Gainsborough’s channels
DIYs may pay premium because of easiness
Direct contact with end-users
Have a big influence on decision making process
Selling in volumes
Forcing plumbers to familiarize themselves with Quartz
Costly ad-campaigns
Costly ad-campaigns
Potential cannibalization
May need to go downmarket
Don’t like innovation
Difficult to change their minds
Time lag
Problems with premium price
Only 15% of market share
How to solve the main reason causing bad sales? Who to target?

10. We suggest targeting the plumbers!

11. Plumbers have a notable influence on shower purchasing decisions
54%*
73%*
of showers installed by independent plumbers
of shower purchases are either made by the plumber or the plumber is consulted
*mixer showers only

12. Plumbers’ brand loyalty is more important to shower manufacturers than end-users’ loyalty
84 & 613,200
When shower purchase is not typical, customers pay little attention to shower ads
Plumbers are very brand-loyal so once brand loyalty is achieved, long-term cooperation can be expected
Master plumbers install or supervise over 84 shower installations per year and have an impact on over 600,000 shower purchases

13. The actual cost of a shower doesn’t play so significant role
Consumers are unaware of the cost breakdown
→ the cost of the shower is not so important
Overall costs can be driven down with no need for excavation and shorter installation times
€€?
There’s no need to lower prices, which can lead to brand dilution and going downmarket - climbing up is extremely hard!

14. Value proposition for plumbers
Easy and simple installation
More profitable → plumbers are able to do more installations per day
Only ½ day to install → 75% less compared to other shower installations
Even apprentices can do it
“The customers love it - you should, too!”

15. Tangible actions to do STEP 1 STEP 2 STEP 3
Increase awareness by focalized advertising content
Create and reinforce plumbers’ loyalty to the brand
Emphasize value and benefits in few words
Promote aggressive selling through direct, personal contacts
Avoid misleading advertisement → not like this ad

16. Tangible actions to do
STEP 1
STEP 2
STEP 3
Facilitate spaces for plumber-product interaction
Training
Certifications
Exhibitions
Offer incentives
Show tangible benefits for the plumbers to increase sales

17. Tangible actions to do Offer after sales service benefits and security
STEP 1
STEP 2
STEP 3
Offer after sales service benefits and security
Provide extended warranty for electricity issues
Aqualisa will take care of the plumber’s costs in case the shower doesn’t work as intended and another visit must be paid
Aqualisa should inform if there is a problem with the product, then a technician from Aqualisa will fix the problem at the customer location and not the plumbers, or Aqualisa will pay for the whole fixing process of the shower.

18. APPENDIX Plumbers have an influence on two pricing segments
Premium segment customers:
Shop in showrooms
Take for granted high performance & service
Style matters a lot
Standard price segment customers:
Value performance & service
Buy what plumbers recommend
Value segment customers:
Concern primarily convenience & price
Dislike excavation
Rely on plumbers’ recommendations