Aqualisa Quartz

simply a better shower

Lukman Kresno O.
Yohanes De Deo Tedo
Anggi Fitrining Tyas
Ronaldo Bagus Putra
Wisnumurti Rahardjo

29110394
29110399
29110400
29110404
29110412

Background
Aqualisa innovate a
breakthrough product
(Quartz) to the market
but it was unsuccessful
in the market because
of Plumbers 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

Combine a thermostatic mixer valve and booster pump

Bulky box on the wall
Core Product: Aquastream (thermostatic); Cost : 175 Price : 670
Sales: 20,000 units per year
Aqualisas strongest selling shower in the power shower technology

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 & apartment dwellers

Product & Price

Distribution
Gainsborough

DIY / Value
buyers

DIY sheds

Distributor

Showrooms

Premium
Buyers

Trade shops

Plumbers

Standard /
Value buyers

Developers

New Home
Buyers

609, Quartz

Shower Max

U.K. Market Share Data

Chart Title
Triton

Mira

Gainsborough

Aqualisa

Masco

Ideal Standard

Heatrae Sadia

Bristan

Grohe

Hansgrohe

Others

1%
1%

1%

15%
30%

2%
3%
7%
7%
11%

22%

Sales
Replacement
Shower
New
penetration

10%
15%

44%

The

principle reason for

consumer to install a shower is to
replace the old shower into new
ones (44% of customers)

commercial

There

6%
New Build

25%
Second Sgower

are only 6% of consumer

who has a commercial purpose in
installing a shower

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
PLUMBERS

More profitable able to do more installation

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

C
O
S
T

B
E
N
E
F
I
T

Developers

Plumbers

Premium
&Standard

DIY

Price Sensitive

Dont like
innovation

Low brand
awareness

Change premium
brand perception

Small market

Costly to
convert

Independent of
plumber
influence

Large market

Premium brand
recognition

Cheaper

Largest market
share

Influence plumber

Strong
influence to
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

Individuals
DIY
Developers
Plumbers

Outlet
Developers
Trade shops
Showrooms
Distributors

Context
In UK, everyone
had a bathtub,
only 60% had
showers.
It is rare an
innovation in
shower
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%
2% 1%

1%

15%

30%

3%

Triton has the biggest market

share (30%).

7%
7%
11%

22%

Aqualisa and Gainsborough

market share is the 3rd largest

(18%).
For the Electric Showers
product, Aqualisa and
Gainsborough has 2nd biggest
market share (16.9%) .

Product
Showers with Various
categories.
Type of Shower :
- Electric Shower
- Mixer Shower
- Power Shower

Price
Premium
Standard
Middle-Low

Place / Distribution
Trade Shop
Distributor
Showrooms
DIY Outlets

Promotion
Advertisement
(ex. Brochure)
Web

Segmenting
UK Niche Market Shower

Targeting
Direct consumer
DIY market
Developers

Positioning
Leading in shower technology that have top quality
shower in premium brand and also give great services

Strength

Weakness

Strong reputation in the UK

shower market.
High Market share
High Quality Product
Easy to install
High innovation in technology

Low sale in Trade shop and

Showrooms.
Expensive brands image
10% of Aqualisa is defected.
Lacked the ability to relate to end
users.

SWOT
Opportunity

Threat

Typically low pressure and

fluctuations in temperature of UK
shower valves.
High demand of UK market
Rare real breakthrough in the shower
market.

Plumbers loyal to single brand and

distrusted innovation.
Other companies were catching up to
Aqualisa product quality.
Dependency of Consumer to the
plumbers.

Quartz stand for Premium segment with price 850 and

1,080.
Quartz standard and pump provide the biggest margin
than other models.

Behavioral Analysis

Consumers

Consumer doesnt like!

Poor Pressure
Varying Temperature
Shower broke down or went wrong
hard-to-turn valves, leaky seals, and worn-out
showers. Because of that, almost half the U.K.
shower market consisted of sales of replacement
showers.
Consumers were generally uninformed about
showers.

little understanding of product

options
Brand awareness was low;

Prices to consumers usually lump

sums and unaware how costs broke
down (labor, material, excavation,
etc).

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
independent plumber
which is 54% of all.
While the installation by
showroom and
developer is 20% each.
The smallest percentage
is the commercial
installation which is
only 6%.

Type of Influence
Informational

Consumer must know the advantages of Aqualista so they

could directly buy the product or ask the plumber to use
Aqualista on their wash room
Plumbers must understand the way Aqualista work so they
have no uncertainty on using Aqualistas products

takes
plumber's
advice on type
and brand

20%
28%
25%

27%

consumer
select type
and brand
alone
plumber select
type and
brand alone

plumber
influences
type of
shower, not
brand

Most consumer, selects Mixer

Shower by taking plumbers advice on
type and brand of shower which is
28%.

While 20% of consumer are

selecting only type of shower (not
the brand), that influenced by the
plumber.

Consumer Motivation & Value

Needs
(Shower)

Consumer Wants
(lookes great, delivery good
preassure, stable
temperature, easy to use,
didnt break down)

Plumber Wants

(easy to install, with a

guarantee not break down or
requiring service)

Latent & Manifest Motive

Its look great , easy

to use, good
pressure, stable
temperature,
didnt break down
Purchase a
SHOWER
The plumber
suggest me to buy
that brand and
that type

Premium
brand makes
me more
prestiges

Pro

Pro
Triton Has Proven that it can be
done
Many Problems reaching the
plumbers

Cons
bet the company
kind of product
Cost about 3 to
4 million over 2
years
Tough to justify a
high-risk, highreward strategy
when company
results were
already healthy

Quartzs superior
value proposition
so possible to
charge a premium
for this product.
The Quartz is so
easy to install.
Currently selling
its Gainsborough
in this market
Push the product,
avoiding the need
for expensive
consumer
advertising

Pro
Large-volume
channel.
Force plumbers
to get familiar
with our product

Cons
Associating
premium brand
with discount
channel

Cons
Time lag before showers
reach consumers through
this route.
Developers perceived
products to be premium
brands.
Quartz under price was a
breakthrough innovation.

 The cause of quartz failure is the

resistance from plumbers. With the
analysis of circumference, they should :
- Plumbers
shoot the trade shop
product presentation (installation,
warranty) to the plumber community
incentives
- Consumers
Bring the Brand experience to
customer through its marketing activities,
so that customer can feel the simplicity of
Quartz shower.

- Developers
make a contract
incentives