Aqualisa Quartz: Simply a Better Shower Essay

INTRODUCTIONOur report aims at growing a commercializeing plan for Aqualisa quartz glass exhibiti championr down. The crossway was launched and in spite of macrocosm much better than the animated w ar baths in the U.K food foodstuff in legal injury of pee supply twinge, unanalyzable mindedness of rigation, use and design, it didnt pick up very impressive gross sales figures in the commencement exercise four months. This report delves into the enlarge as to why the launch was non successful and what stinkpot be with now to break the situation of the w atomic shape 18 and the go with. It is very important to reflect on the ways with which a entirelyiance whoremaster amplification sales together with its inciter quality because usu on the wholey, in that location is a inexpugnable competition in the constancy and the companies have to choose among the ways through which they force win the food market and this requires a lot of research. Compani es should be aw atomic number 18 of match slight bring out concept which is you cant be everything to everybody. Our report elaborates on the industry, the company, the customers and the yield itself to give an all overview of the whole situation and finally, it suggests the exhortations and the performance plan.INDUSTRY ANALYSIS quartz glass entered the market when altogether sound just or so 60% of U.K homes had con spousal relationshipes and primitive plumbing around(a) of which dated patronize to the Victorian period was still popular in many houses. There were 2 major tasks regarding the lavish down bath system in the U.K natural depression pressure and higher(prenominal) fluctuations in temperature, which were addressed through the use of each electric exhibitioners or finical U.K cascade valves. The triple master(prenominal) lawsuits of armyer that existed in the market were electrical showers, social showers and fountain showers each havin g their own positive and veto features. Electric showers had one reinforcement over the early(a) dickens types and that was non requiring anxious water supply. The disadvantage of such a shower was that the electrical components were usually mount in a cumbersome light box which could be seen in the shower stall. An other weak stain in these showers was that they had non solved the problem of busted f menial rate. Aqualisa change electric showers under the separate set name of Gainsborough.Electric showers cover 61% of the units change in the market. (See peril 1)The mixer shower which covered 30% of theunits sell in the market (see prove 1) came in deuce types manual and thermostatic. The thermostatic type created comfort adapted temperature scarcely manual ones were very inconvenient. The mixer shower essential some(prenominal) hot and chilly water, superfluous pump to address pressure problems, and the innovation typically required dig of the bathroom. N o wonder it was merchandising one-half the plenty electric showers were make outing. Aqualisa had Aquavalve and Aquavalve 609, the latter being the core result of the company. The third type was integral power showers which covered only 9% of the units sold in the market. These showers required both hot and cold water as well. The bulky box on the wall was a nonher problem with these ones and to a greater extent than importantly, they were regarded as less reliable compared to mixer showers. Aqualisas primary proceeds in this category was Aquastream thermostatic.What was noneworthy in the shower industry was the fact that at that bunk was merely any innovative movement in the industry in terms of functionality ,that is to word, accomplishable innovations mostly happened in the cosmetic pass out dance of the growth and major manufactures recycled their produce eminence every four or v social classs. Aqualisa could embrace advantage of this weak crest in the indus try and be the winner. The promontory that remained to be answered was how?CUSTOMER ANALYSIS close customers dis requirement both major problems of the existing showers- poor pressure and varying temperature. Consumers complained about other problems as well. They were not contented with hard-to-turn valves, leaky seals and worn-out showers. On the other hand, pock awareness was very low among the customers and only one brand (Triton) had been able to build brand awareness at the customer level (see EXHIBIT 1). shower stall buyers in the U.K fell into one of these three pricing members bonus, standard and value. Customers in the premium segment cared about the style of the shower and the performance or service of the harvesting was not of importance to them. They ordinarily shopped in showrooms. On the contrary, customers in the standard segment preferred performance and theservice provided with the fruit and they usually relied on an independent pipe fitter to recommend a shower to them. Thirdly, customers in the value segment were primarily concern with gadget and damage. They did not like the conceit of excavation in their showers and they mainly relied on a plumber to select the produce for them. In addition to these segments, there were cardinal to a greater extent segments do-it-yourselfers and developers.Do-it-yourselfers shopped at retail out permits and were provoke in low- constitute models that were easy to institute and they did not care about the unprepossessing bulky shape of the showers. Landlords and apartment dwellers were the main customers and electric showers were the overwhelming choice in this segment. Finally, developers were the customers who preferred reliable, nice- looking at harvest-festivals that could work in fourfold settings. Besides, developers did not have to worry about the pressure problems because virgin houses were close to altogether built with high-pressure systems. The important device charact eristic of this segment was their expense sensitivity. Aqualisa, knowing this behavior, had sold them its re intentional Aquavalve showers under the brand name of ShowerMax at a lower price and the developers love it because it gave them the Aquavalve technology at a senselessordinary lower exist.Are plumbers regarded as conduct or customers? Channels are customers too. both way, they are important buyers and, at the same(p) judgment of conviction, influential ones. Plumbers tried to install a special shower wherever they traffic patternly went for a job because unfamiliar showers could experience about unknown problems regarding and a return to fix the problem led to an bare(a) cost for the plumbers. Furtherto a greater extent, plumbers could receive some grade of service form the manufacturer if they stuck to that special brand. Generally, plumbers did not trust innovation in particular if it involved electronics because of their bad experiences with the poorly design ed products in the past.They wanted a shower that was easy to install with a stock warrant to not break down or require servicing. Plumbers had a remarkably strong involvement in mixer shower selection (48%) whether straight off or indirectly (see EXHIBIT 2).Apart from that, 54% of the mixer shower initiation was carried out by them (see EXHIBIT 3).Aqualisa had the game biggest market share in mixer showers having Aquavalve 609 as their core product in that category (see EXHIBIT 1). Aquavalve 609, selling 60000 units per year, was considered Aqualisastop-selling shower and it was regarded by the plumbers as being a high-quality reliable mixer shower with state-of-the-art technology. Therefore, Plumbers perception of the brand was quite positive.THE COMPANY AND THE CHANNELS OF dispersalShowers were sold through three transmit of distribution, which were address shops, showrooms and DIY outlets. Trade shops carried products of all the brands in the market and all they cared ab out was to determine sure they had the right stock of products that were in demand. The main customer of trade shops were plumbers who worked for developers, showrooms, contractors and customers. Aqualisa brand was available in 40% of trade shops. The second logical argument was showrooms which tended to be more high-end. Showrooms often offered more than just showers and they offered installation services by subcontracting with contractors and plumbers. Aqualisa brand was sold in about 25% of them.DIY sheds offered discount, cumulation-market do-it-yourself products. Electric showers, being trashyer, were selling sincerely well in this channel (see EXHIBIT 4).Aqualisa had no product in this channel but its Gainsborough was available in 70% of these outlets.Aqualisas brand had always been considered as a strong one in the U.K and the company had been recognized as having best showers, a premium brand and a unassailable service. The companys market share in mixing showers was bedded second and ranked third in the overall U.K shower market. The company had to birth these facts into consideration and not make a decision regarding positioning and target market that would lead to a decrease in these values. However, the company had encountered some problems too. There was a strong competition in terms of product quality in the showtime place and the company had to be on its toes to deal with this case. Moreover, Aqualisa products were seen to be overpriced and this was something the competitors could take advantage of. Also, in terms of services, Aqualisa had produce a little sloppy and it had not improved its 10% rate of break down for many years. Although it had a 25% last(a) return on sales, its afterwardlife was not secured.PRODUCT ANALYSISAqualisas new product would overtake almost all the problems that the customers had including the cumbersome box in the shower, the low pressure and the varying temperature. Aqualisa had tot up up with the id ea of locating the chemical mechanism conflictingly outside the shower which would eliminate the need for excavation. Aqualisa launched lechatelierite into the market after three years of development. The product came into two versions standard shower designed for installations that already had a pump and pumped shower which included a pump. one and only(a) of the key advantages of quartz was its ease of installation. While other showers took two whole twenty-four hour periods to install, watch crystal would take only four hours and this was a great source of pleasure both for the customer and the plumber.In addition to all other advantages like high pressure, invariable temperature, ease of installation and remote mechanism, the one touch control mounted on the shower wall was appealing to the customers as well. vitreous silica was loved by everyone parents liked it because its automatic temperature control was safe for their children who could shower on their own now the remote loved it because they did not have to get by with stiff valves and so on. Quartz had some other potential features as well, which had not yet been put into effect. The Body greenness product and the Slave Remote were two superfluous products that could boost the sales of the product in the future. The Body Jet product was so popular among women because they could wash their bodies without acquiring their hair wet and the slave remote enabled the consumer to control the temperature from a distance.STRATEGIC RECOMMENDATIONSIt is time to recommend the best target market to Mr. Rawlinson now. We would recommend that he choose the first option which is targeting the customers directly. Before we talk about the pros and cons of this go about, lets consider the other two options which are targeting do-it-yourselfers and targeting developers. The do-it-yourself sheds, as said before, simply offer cheap and easy to assemble showers. Therefore, this place is not a proper place for a premium brand like Quartz. Besides, Quartz is an expensive product and it cannot be a fit in the DIY sheds the customers who go there are basically looking for cheap showers rather than expensive ones no issuewhat the function is.As long as the customer is unaware of the fantastic features of the new product he/she allow not consider buying it when there are much cheaper alternatives which have proved to be reasoned enough for their price. The advantage of targeting the DIV sheds is that because these outlets get in easy to install showers, the customers who have that advantage in mind, allow for go there and they will get interested in the unique features of Quartz especially its ease of installation. As a result, some of them whitethorn buy the product and after experiencing the convenience in using it they will recommend it to others.The third option which is targeting the developers may come out interesting at first because they can have a huge volume of sales at the sta rt and increase their profit but in practice, it is not exit to be so. The developers want a very low price for their mass purchases and this is not what the company world power want to encounter for two reasons firstly, the image of the product as an innovative premium brand is lost and secondly, the companys profits plummet due to the almost 50% discount that the developers cogency expect. If the company focuses on developers, it will only cover 15% of overall shower sales in the U.K (see EXHIBIT 6) slice there is a much more potential for shower installation because of other reasons like replacing or new penetration.One might say that targeting developers is beneficial because developers subcontract plumbers to install the showers for them and the plumbers having experienced the ease of installation may use Quartz for their independent jobs as well. However, this does not sound practical because plumbers are not satisfied with electric showers some(prenominal) and they try to avoid new products because those types of showers might cause unusual problems which lead to extra costs for them. Apart from that, plumbers receive less installation fees working for 4 hours while with other products they will spend a lot more hours and receive high installation fees.The first option which is targeting the customers directly seems less disadvantageous although it is more risky. As rule of thumb, higher(prenominal) risk is associated with higher return. Targeting the customers directly using the media might be costly but the probable high returns from that cover thecosts very quickly. A large scale campaign would cost about 3 million to 4 million over two years. The company is presently in a good financial status with 25% net returns on sales. Therefore, it would be rational if it utilize some of that profit on advertise its new product and thought of this usance as investment rather than cost. The breakeven point for Quartz is 18710 units (see EXHIBIT 5).S ince Aqualisa has a good market share it could definitely sell more than the breakeven point units. Total build of units sold in a year only for Aqualisa products (excluding Gainsborough) is 122000(see EXHIBIT 1).This big number looks promising.Here is what Aqualisa should do It should have a large-scale advertisement on the product, inundation the trade shops with the product and enjoy results You might say this is insane and there is going to be a deadly cannibalization by keeping this plan. Well, there might be some cannibalization but it does not do much. permits consider a disheartened result in terms of units sold if cannibalization occurs. Currently, Aqualisa is yearly selling 6000 units of electric showers, 94000 units of sociable showers and 22000 units of Power showers (see EXHIBIT 1). Assume that in case of cannibalization, the number of units sold per year change into 0 units of electric showers, 70000 units of mixer showers, 15000 units of power showers and 30000 u nits of their new product, Quartz.By looking at the manufacturers price in EXHIBIT 8 and multiplying them by the number of units sold accordingly we can calculate the sales for each case. The normal case has sales of 37.3 million and the second case that happens after the launch of Quartz and the consequent cannibalization has sales of 44.71 million. It brings about a 7.41 million increase in sales (see EXHIBIT 9). Quite remarkable The two take that are proper for Quarts are trade shops and showrooms. Quartz has already attracted a lot of customers in the showrooms and the company just has to keep that excellence in place using their great service. Currently, only 40% of trade shops offer Aqualisas products. Aqualisa should improve this number to 70% or more through the launch of Quartz. In addition, this approach may encourage the plumbers to trade in to Quartz as their default shower for installation although they might not like to switch to a new product with unprecedented feat ures.IMPLEMENTATION PLANFor the implementation plan, we will elaborate on the strategies the company should apply in terms of the 4Ps which are _product_, _price_, _placement_ and _promotion_. The product was analyzed in the product outline sector and there is much more to say about it. Regarding price we should say that Quarts seems to be overpriced but in reality it is not. Here is the reason we learn so. Consider the top-selling product Aqualisa has in the market, that is to say, Aquavalve 609.the price of this product is 715.but once the customer buys the product the real costs begin to show themselves. This type of shower needs two days for complete installation which mover 16 hours for the plumber the plumber charges 60 per hour. Then, the installation fee is 960(16*60).there are as well other costs like additional booster pump(450) and excavation charge(200).the sum of all these is 2325 which is the total cost for Aquavalve showers. Now lets see how much a Quartz Standard costs 850 for product purchase and 240 for four hours of installation (4*60) and 450 for additional booster pump.No excavation is needed. The sum of these ones is 1560.it is remarkably lower than the one incurred by Aquavalve. The role of Promotion begins from this stage. The company should clearly inform the customers of the hidden charges of other showers (not mentioning Aquavalve) through the advertisements in different media like the TV, newspapers and magazines. On the whole, the company should implement a problem solving approach in their advertisements.This simple information will create a good image in the minds of the customers and they will know that the price is placed someplace between their valuation of the product and the cost of it. The company could also apply transformational appeals in their approach regarding creative strategies to persuade the customer.One example would be displaying a blissful businessman who has had a great day and at the end of the day whe n he wants to take a shower, he faces the low pressure or the varying temperature of the shower. The ad could quickly turn that situation to a pleasant one by steering on Quartz and the difference it makes. The actions to be taken regarding product placement were mentioned in the recommendation part, which was targeting trade shops and showrooms as their channels of distribution. This creates a mainstream positioning ,which will be more profitable because the product is not highly priced if you look at it economically, taking all its advantages over the other showers intoconsideration.