Aqualisa Quartz

simply a better shower

Wisnumurti Rahardjo
Anggi Fitrining Tyas
Lukman Kresno Oktavianto
Yohanes De Deo Tedo
Ronald Bagus Putra
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BANDUNG
INDONESIA
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 Background

Aqualisa innovate a
breakthrough product
(Quartz) to the market but
it was unsuccessful in the
market because of
Plumber’s Electronic
Syndrome.
The U.K. Shower Market

Electric Showers
•heating elements instantaneously heated the water to the
required temperature, eliminating the need for a boiler to store
hot water.
•convenient for small bathrooms, the electrical components were
usually mounted in a bulky white box that was visible in the
shower stall.
•did nothing to address the poor water flow of many showers in
U.K. homes,
•sold mostly under a separate brand name, the ‘Gainsborough’
brand.
•Valves came in two types :
•thermostatic  controlled temperature automatically
•manual  manually find the right temperature
•Installing a mixer valve meant excavating the bathroom wall.
•Add booster pump to boost water pressure (cost € 350 to € 600)
•Core Product: Aquavalve609 (thermostatic); Cost : € 155 Price : € 675 to €
750;
• Sales: 60,000 units per year; Image : high-quality and reliable

Mixer Shower Valves

•Valves came in two types :
•thermostatic  controlled temperature automatically
•manual  manually find the right temperature
•Installing a mixer valve meant excavating the bathroom wall.
•Add booster pump to boost water pressure (cost € 350 to € 600)
•Core Product: Aquavalve609 (thermostatic); Cost : € 155 Price : € 675 to €
750;
• Sales: 60,000 units per year; Image : high-quality and reliable

Integral Power Showers

 Pricing Segment
Premium Segment Consumer :
- shopped in showrooms
- Granted high performance and service
- Style determined selection

Standard price Segment :

- emphasize performance and service
- Product selection rely on plumber

Value Segment :
- concern with convenience and price
- Avoid solutions that required any excavation
- Product selection rely on plumber
- Concerned with convenience and price
Do-it-yourselfers Segment :
- shopped at large retail outlets
- Interested in inexpensive models that were easy to
install, even though bulky and unattractive
- Overwhelming choice : Electric showers
- Popular among landlords & apartement dwellers
Product & Price
Distribution
 U.K. Market Share Data
Chart Title
Triton Mira Gainsborough Aqualisa
Masco Ideal Standard Heatrae Sadia Bristan
Grohe Hansgrohe Others

1%
1% 1% 15%
2% 30%

3%

7%

7%

11% 22%
 Sales  The principle reason for consumer to install
Replacement Shower
a shower is to replace the old shower into
10% new ones (44% of customers).
New penetration

15% 44% commercial

 There are only 6% of consumer who has a
6%
New Build
commercial purpose in installing a shower.
25%
Second Sgower
The Quartz Shower Valve
The are 2 versions:
 The Quartz Standard Shower
 The Quartz Pumped Shower
To install the Quartz shower:
– the plumber had to identify a physical
space to accommodate the remote
processor
– The processor contained the
thermostatic mixing valve and pump
– The device could be mounted
horizontally, vertically, or on its side,
depending on space constraints

With Quartz technology:

– Installation time of a half-day
– Plumbers were finding that the install
was so straightforward
– The Quartz shower provided efficient
and reliable water pressure and
temperature – “one touch” control
– the temperature control is automatic
Quartz Value Proposition
VALUE
Easy to install
More profitable – able to do more installation
PLUMBERS
Take 0.5 day to install which is only 25% of previous times

Even apprentice can do the installation

Efficient and reliable water pressure and temperature

Safe to use for kids and elder people

CONSUMERS One touch control with red light indicator
Much easier to install for DIY sector

Excellent design and aesthetics, which increases

ownership pride
 Cost and Benefit
Individual Developers Plumbers

Premium Diyers Price Sensitive Don’t like

&Standard innovation
C
O Low brand Change premium Small market Costly to
S awareness brand preception convert
T

Independent of Large market Largest market

B plumber share
E influence
N
E Influence plumber
F Premium brand Cheaper Strong
I recognition influence to
T customer
PROBLEM

• HIGH INNOVATION & TECHNOLOGY but

LOW IN SALES

•Rawlinson should choose appropriate

marketing strategy to overcome the
problem. The choice are :
- Targeting customer directly
- Targeting developers
- Targeting DIY
MARKET ANALYSIS
 Company

Competitor Customer

5C
Context Collaborator
 COMPANY

• UK shower manufacture
• Have breakthrough in shower
technology by producing
“The Quartz”
• Have strong reputation in UK
shower market.
• Producing premium product in
shower market.
 Organizational Chart
Aqualisa using the working divisions/department
based. Consist of: Marketing & Sales, Finance,
Technical, and Operations.
 Customer Collaborator Context
• In UK, everyone
• Individuals • Outlet had a bathtub,
• DIYers • Developers only 60% had
showers.
• Developers • Trade shops • It is rare an
• Plumbers • Showrooms innovation in
shower
• Distributors production.
 UK Market Share Data : Units Sold (2000)
Total Unit Sold by Brand
Triton Mira Gainsborough Aqualisa
Masco Ideal Standard Heatrae Sadia Bristan
Grohe Hansgrohe Others

1%
1% 15%
2% 1% 30%
3%
7%  Triton has the biggest market
7% share (30%).
22%  Aqualisa and Gainsborough
11%
market share is the 3rd largest
(18%).
 For the Electric Showers
product, Aqualisa and
Gainsborough has 2nd biggest
market share (16.9%) .
 Product Price Place / Distribution Promotion
Showers with Various High (premium Trade Shop Advertisement
categories. prices) Distributor (Brochure)
Type of Shower : Standard Showrooms Web
- Electric Shower Middle-Low DIY Outlets
- Mixer Shower
- Power Shower
Segmenting
• UK Niche Market Shower

Targeting
• Direct consumer
• DIY market
• Developers

Positioning
• Leading in Shower Technology that have top quality
showe, premium brand, and great service
 Strength Weakness
• Strong reputation in the UK • Low sale in Trade shop and
• shower market. Showrooms.
• High Market share • Expensive brands image
• High Quality Product • 10% of Aqualisa is defected.
• Easy to install • Lacked the ability to relate to end
• High innovation in technology users.

SWOT
Opportunity Threat
• Typically low pressure and • Plumbers loyal to single brand and
• fluctuations in temperature of UK distrusted innovation.
shower valves. • Other companies were catching up to
• High demand of UK market Aqualisa product quality.
• Rare real breakthrough in the shower • Dependency of Consumer to the
market. plumbers.
•Quart stand for Premium segment with price €850 and
€1,080.

• Quart standard and pump provide the biggest margin

than other models.
Behavioral Analysis
 Consumers

Consumer doesn’t like!

•Poor Pressure

•Varying Temperature •little understanding of product

options
•Shower broke down or “went wrong”
hard-to-turn valves, leaky seals, and worn-out •Brand awareness was low;
showers. Because of that, almost half the U.K.
shower market consisted of sales of replacement •Prices to consumers usually lump
showers. sums and unaware how costs broke
down (labor, material, excavation,
•Consumers were generally uninformed about etc).
showers.
 Developer

• Most developers did not worry about pressure problems because new
homes were almost have high-pressure systems.
• faced a different set of issues, preferring reliable, nice-looking products
that could work in multiple settings.
• price-sensitive except of luxury builders
• Developers usually had relationships with independent plumbers.
• Aqualisa sold to developers under its ShowerMax brand, which was
available only through specialist contract outlets.
• technology had been redesigned, rebranded, and optimized for
developers specific needs.
• ShowerMax could deliver a high-pressure shower withAquavalve
technology at a significantly lower cost.
Plumbers
• The most installation
method of mixer
shower is by by indeoendent
independent plumber plumber

which is 54% of all. 6% by developer

• While the installation by 20% installation for
new home build
showroom and 54% by showroom
developer is 20% each.
• The smallest percentage 20% commercial
is the commercial installation

installation which is
only 6%.
 takes plumber's
advice on type and
brand
 Most consumer, selects Mixer
20% consumer select
Shower by taking plumber’s advice on
type and brand
28% alone
type and brand of shower which is
plumber select type
25% 27% and brand alone 28%.
plumber influences
type of shower, not
brand
 While 20% of consumer are
selecting only type of shower – (not
the brand), that influenced by the
plumber.
 Type of Influence

INFORMATIONAL
 Consumer Motivation & Value

Needs
(Shower)

Consumer Wants
Plumber Wants
(lookes great, delivery good
(easy to install, with a
preassure, stable
guarantee not break down or
temperature, easy to use,
requiring service)
didn’t break down)
 Latent & Manifest Motive

It’s look great , easy

to use, good
pressure, stable
temperature,
didn’t break down Premium
Purchase a brand makes
SHOWER me more
prestiges
The plumber
suggest me to buy
that brand and
that type
 Pro
Pro Pro
• Quartz’s superior
• Triton Has Proven that it can be value proposition
done • Large-volume
so possible to
channel.
• Many Problems reaching the charge a premium
plumbers for this product. • force plumbers
to get familiar
• The Quartz is so
Cons easy to install. with our product
• Currently selling
• ‘bet the company’ its Gainsborough
kind of product in this market
• Cost about € 3 to 4
million over 2
• Push the product,
avoiding the need
Cons
years for expensive • Time lag before showers
• tough to justify a consumer
high-risk, high-
reward strategy
advertising Cons reach consumers through
this route.
when company • Developers perceived
• associating
results were products to be premium
premium brand
already healthy brands.
with discount
channel • Quartz under price was a
breakthrough innovation.
• The cause of quartz failure is the
resistance from plumbers. With the
analysis of circumference, they should
: ‘Targeting Consumers Directly’.
- Plumbers
 shoot the trade shop
 product presentation (installation,
warranty) to the plumber community
 give some incentives
(if they buy in a big mount)
- Consumer
 Bring the Brand experience to
customer through its marketing
activities, so that customer can feel
the simplicity of Quartz shower.
- Developer
 make a contract
 give some incentives