Electric Shower Technology Quartz Electric Aquastyle electric
What is the Quartz value proposition to plumbers? To consumers? Plumbers installed 40 to 50 showers in a year &charged about €40 to €80 per hour with cost of excavation & materials. Quartz shower installation took half day. Quartz shower installation was so straightforward that learner plumbers can do it. Many plumbers said that it was easy to fit and they preferred it most. Type of buyers: Premium, Standard & Value &Type of shower: Electronic, Mixer & Power shower. Value of electronic shower: Value- €95, Standard - €155, Premium - €230. Value of mixer shower: Value - €390, Standard- €715. Value of power shower: Value - €480, Standard - €670. Provided efficient and reliable water pressure and temperature & had one- touch” feature & light on the valve to determine desire temperature.
Why is the Quartz shower not selling? Plumber’s wary of innovation of any electronics shower Plumber’s conservation nature or adaptation is a long process Quartz glosses over Aquavalve’s core products
Problems with Marketing Strategies Direct selling –High risks –High cost like advertising expense Do –It-Yourselfers –Riskier to market premium brand through discounted channels Developers –Lag before the shower would reach consumers –Perceived those types of products at better discount rate
Aqualisa spent three years and €5.8 million developing the Quartz. Was the product worth the investment? Is Quartz a niche product or a mainstream product? The investment was worthful because –Different kinds of shower –Advanced stage of development –Upgrading product features by using new technology. Niche Product –25% Return on sales and 5-10% growth rate
Aqualisa currently has three brands: Aqualisa, Gainsborough and ShowerMax. What is rationale behind this multiple brand strategy? Does it make sense? Rationale behind this multiple brand strategy –Different people have different choice based on the facilities given by the Aqulisa. –Most of the customer buy this product based on their ability. Middle class people buy Aqulisa & Gainsborough and upper class people buy ShowerMax. Yes, it make sense. Because different brand has different demand in customer mind.
What should Rawlinson do to generate sales momentum for the Quartz product? Should he Change his marketing strategy to target consumers directly, target the DIY market or target developer? Should he lower the price of the Quartz? Or should he do something different altogether? Rawlinson should do… Branding –Conducting learning session –Follow-up advertisement –Offering discounted price for in exchange of an old system of Aqualisa or any other company Restructuring the Sales Force Offering Commissions to Plumbers
Target… Targeting Customers Directly –Designate a separate marketing team to make consumers aware about the new product. –Running follow-up marketing strategy (advertisements) to support it. Targeting Developers –Developers are also consumers to the company Aqualisa
Lower price or not… No, Because, Quartz is an innovative product and way ahead (Almost 2 years than other technologies, according to the case) than other technologies available in the market. Therefore, lowering the price may affect the R&D cost of Quartz. Besides, people always strive for innovative product.
Something different… Considering the push and pull marketing strategy Rawlinson may do following activities: Push: –Can offer a commission to the plumbers on the MRP of Quartz. –Can offer a commission to the developers on the MRP of Quartz. Pull: –Can offer a launching discount on the product to the consumers. –In-occasions, he may offer some cash discounts to the consumers.
Appendix Plumbers found that Quartz shower installation was so straightforward that learner plumbers can do it easily. There are three types of buyers base on price segments: Premium, Standard & Value. Quartz provided three kids of showers: Electronic, Mixer & Power shower. Aqualisa sold to developers under its ShowerMax brand, which was available only through specialist contract outlets. To gain objective create a space for Quartz Targeting old client –Participants from different area –Discount to the participants –Help to remind target market about the product & benefit. –Competitors market as well –Should include a team which will assist sales force –Plumbers can be treated as auxiliary sales force