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Assignment Marketing Antwerp Management School
Citation preview
Eduardo Valero CabezaEvelineMoortgatAndré HaasbroekOlivia VerheyeFrancine Carron
Summary
Problems in UK showers:
• Only 60% of UK homes had showers
• Obsolete plumbing (Victorian era)
• Gravity fed water systems
• Cold water tank
• Separate boiler
• Poor pressure
• Changeable temperature of water
Shower solutions for low pressure & fluctuating temperature:
• Electric Showers• No hot water supply needed (electrical heating elements)
• Bulky white box visible in the shower
• Poor water flow
• Mixed Shower Valves• 2 types: manual or thermostatic
• Hot & cold water supply required
• Thermostatic needed excavation for valve installation
• Additional booster pump
• Integral Power Showers• Hot & cold water supply required
• Bulky box visible in the shower
• Low reliability
Triton 30.3%
Mira 21.7%
Gains-borough
11.3%
Aqualisa 6.8%
Masco 6.7%
Ideal Standard
3.3%
Heatrea Sadia 2.2%
Bristan 1.1%
Grohe 1.1%
Hansgrohe 0.8%
Others 14.7%
UK Market Share Data: Units Sold 2000
• Trade Shops• Products across all brands available• Primary customer: plumber• Stock depending on demand• Aqualisa available in 40% of the trade shops
• Showrooms• High-end products• No inventory held on location• Display of the product in a pleasant environment• Installation service by contractors or independent plumbers
• DIY Sheds• Discounts• Mass-market & do-it-yourself• Electric shower leader in this channel• Gainsborough brand available in 70% of outlets
Channels of Distribution
Quartz Shower• 2 Models:• Quartz Standard Shower
• Quartz Pumped Shower
• Installation:• Physical space for small processor required
• Processor could be mounted horizontally, vertically or on the side
• Processor contains: mixing valve and pump
• Advantages of Quartz:• Installation reduced to a half-day
• Straightforward installation
• Efficient and reliable water pressure and temperature
• “One touch” control
Marketing Strategies
• Change management & sales’ team approach • Invest in targeting plumbers • Offer extended warranty• Highlight only 1 hole required for Quartz installation vs huge
excavation for competition • Invest in consumers • Invest in up-market• Invest in showrooms & trade-shops• Invest in mid & premium segment consumers via recreation
centers • Target luxury hotels, spas, gyms• Highlight the aesthetic & functional benefits while maintaining
the price of the premium product • Don’t target developers
Recommendations
• No price reduction• Bring the Brand experience to customer through its marketing
activities, so that customer can feel the simplicity of Quartz shower.
Recommendations
Questions ? • 1.What is the Aqualisa Quartz value proposition to plumbers; to consumers? For which segments of the
shower market is the Quartz most valuable?• 2.Why is the Quartz shower not selling? To identify potential stumbling blocks which are negatively
affecting sales of the Quartz shower, consider using the following frameworks:a. Outline the buying process for showers. How do consumers purchase and use a shower? b. Consider the market dynamics and competitive landscape of the shower market. How does Aqualisa stack up versus its competition to be successful in this market? c. Consider the Quartz’ go-to-market plan. Is it the right product at the right price sold in the right location via the right marketing message delivered to the right target audience?
• 3.What is a loyal Quartz consumer worth to Aqualisa? What is a loyal Quartz plumber worth to Aqualisa?• 4. Aqualisa currently has three brands: Aqualisa, Gainsborough and ShowerMax. What is the rationale
behind this multiple-brand strategy? Does it make sense?• 5.What should Rawlinson do to generate sales momentum for the Quartz product? Should he change his
marketing strategy to 1.) target consumers directly, 2.) target the DIY market, or 3.) target developers? Should he lower the price of the Quartz? Are there other strategic or tactical options he has not considered that would increase sales and profitability for Aqualisa? When evaluating Rawlinson’s options, be sure to evaluate the incremental cost of implementing each option and calculate how many units of the Quartz shower must be sold to recover these incremental costs. How feasible is it that Aqualisa will achieve these “breakeven” unit estimates for each option?
• 6.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? Is Aqualisa ready to be a company which “breaks out of the pack because they’ve got the right product and they’ve got the right vision,” as Rawlinson claims in the case?
Quartz Value Proposition• Customers Premium and standard market • Reliable water pressure up to 18 litre/minute• Perfect temperature control• Easy to use• Safe for children and elderly• Good looks• Durable
• Plumbers• Fast installation time (half-day vs. standard of two days)
• Increased business opportunities• Simple installation, little skills required• Durable and low service requirement