1 Aqualisa Quartz Overview & Discussion Topic Topic : Aqualisa Quartz Type : ShowerOwner : AqualisaCountry of origin : U.K.Market share : Number three in the overall U.K shower market
2 Aqualisa’s type of shower Electric ShowerUsed the cold water supplyElectronic heating element heated the water to require temperatureConvenient for small bathroomA bulky white box in the shower wallThe poor water flow of many showersAqualisa sold electric showers mostly under the “Gainsborough” brandMixer ShowerCame in two types: manual and thermostaticBoth type blended hot and cold water to create comfortable temperatureIt was Aqualisa’s top selling showerAqua valve 609 was the company’s core product in the mixer-shower-valveWas regarded by plumber as being a high-quality, reliability, reliable mixer shower with state-of-the-art technologyPower ShowerA single compact that combined a thermostatic mixer valve and boosterThe presence of a bulky box on wallProvide up to 18 liters of blended water per unitAqualisa’s strongest selling shower in the power shower category
3 Pricing segment of Aqualisa’s core product PremiumTypically shopped in showroomLook for high performance and serviceStyle determined the customers selection patternStandardEmphasis on performance and serviceUsually relied on an individual plumber to recommended or select a productValuePrimarily concerned with convenience and priceTended to rely on an independent plumber to select a product
4 Aqualisa’s Core Product Offerings Types of Shower Valve Standard PremiumElectronic Shower Gainsborough Gainsborough AquastyleMixer Shower Aquavalve AquavalvePower Shower Aquastream AquastreamManual ThermostaticThese all are retail pricesShowerMax was available with high pressure shower-with Aquavalve technology-at a significant lower cost
5 The initial situation……… Initially, when Rawlinson joined Aqualisa, the situation of the company washighly profitablequite comfortable with its niche in the markethad 25% net return on saleswas enjoying 5% to 10% growth in a mature marketAfter joining the Aqualisa, Rawlinson was very worried:other companies were catching up to Aqualisa in terms of product qualitythe market was beginning to perceive Aqualisa product as being overpricedactual service had slipped over the past few years10% of Aqualisa showers hadn’t improved in many years
6 The development of the Quartz Shower Valve At first, the company built a research and development (R & D) team.The findings of the researches was:consumers wanted a shower that looked greatdelivered good pressure at stable temperatureseasy to useshowers should not break down or require servicing
7 The development of the Quartz Shower Valve Second, locate the mechanism remotely – away from the shower. The breakthrough idea actually came from the brainstorming of the research team.Third, they started using electronics to control the valve remotely. They came up with the idea because the controlling of a mechanism which is located remotely was a problem of users.Fourth, once the product started to take shape, they took the field test. Rawlinson took consumer field test sites, installing showers in the homes, company personnel and friends to friends.Finally, after three years of development Aqualisa successfully able to provide a radically different kind of shower that called Quartz.
8 Aqualisa Quartz : A Breakthrough Aqualisa brought a new kind of shower after three years of research & development which cost 5.8 millionTime consumingUser friendlySpace flexibility
10 Q.1. What is the Quartz value proposition to plumbers? To customers? Quartz is not creating enough values to plumbers as Rawlinson approaching to target consumers directly instead of plumbers.It’s creating values to customers as they are approaching DIY approach though it’s expensive.Q.2 Why is the Quartz shower not selling?Low pressure & Fluctuation in TemperatureShowers often broken or went wrongBrand awareness was low
11 Q-3. Aqulisa spent three years and 5 Q-3. Aqulisa spent three years and 5.8 million euro developing the Quartz. Was the product worth the investment? Is Quartz a niche product or a mainstream product?The company invested in a new state-of-the-art testing facilityHad acquired nine patentHad grown its engineering team from 6 to 20Several additional products were in advanced stages of developmentQuartz is a niche product. Because Quartz is targeting a specific group of people. As Quartz provide the facilities to use without plumber. Still there are 54% people of U.K market are using plumber. So Quartz is targeting those people who don’t want to use plumber
12 Q.4. Aqualisa currently has three brands: Aqualisa, Gainsborough, and ShowerMax. What is the rationale behind this multiple brand strategy? Does it make sense?According to my point of view it is not rational behind this multiple brand strategyPrice premium high of AqualisaDiscountSo, It doesn’t make senseQ.5. What should Rawlinson do to generate sales momentum for the Quartz product ? Should he change his marketing to target consumers directly , target DIY market, or target developers ? Should he lower the price of Quartz ? Or Should he do something different altogether ?Rawlinson should generate sales momentum for the Quartz by creating asales forceYes Rawlinson should lower the priceH should change his marketing to target consumers directly, target DIY market, target developers through branding, restructuring sales force ,Offering commission to plumbers
15 Reasons behind Aqualisa shower’s failure Poor pressure and varying temperatureShowers often broken or went wrongHard-to-turn valves leaky seals and worn-out showersConsumers were uninformed and they had little of understanding of product optionsBrand awareness was low“Triton” the competitor brand had managed to build brand awareness among customer.
16 Continue…… Showrooms- Process of selection and designing a bathroom “solution”various showers and bath options were displayed.Offers installation services by “subcontracting”consultants
17 Distribution Channels Trade Shops – primary customerPLUMBERCustomerscontractorsDeveloper
18 DIY (do-it-yourself) ShowerMax Do-it-yourself generally shopped at large retail outlets.this customer were primarily interested in inexpensive models that were easy to install, though the products were unattractive and bulky.ShowerMaxAqualisa sold to developers under its ShowerMax brandWas available only through special outletsElements of Aquavalve had been redesigned and rebranded for the ShowerMax product line.ShowerMax could deliver a high-pressure shower-with Aquavalve technology at a significant lower cost