Analyse the UK shower industry, value proposition of Quartz-Aqualisa’s revolutionary shower, marketing strategies employed by Aqualisa

This document analyses the UK waste industry, value proposition of crystal-Aqualisas revolutionary consume, food marketing strategies employed by Aqualisa and suggests slipway to make them much good.The UK Shower market place Product Offers and the Customer demeanorThe current market size of each(prenominal) divergent kinds of showers offered in UK was to a greater extent than 1.8 million units valuing more than 5 Billion.1 Only 60% of the bathrooms in UK had a shower whereas all bathrooms had a bathtub.Prevalent problems in plumbing system systems and showersThe plumbing in UK was predominantly of the Victorian era. These systems were gravity fed which resulted in non similar pressure and f humbled resulting in temperature fluctuations. The flow rates were around 3-4 litres per blink of an eye against the standard flow rates of 18 litres per minute in the USA. besides the showers broke blast frequently and were difficult to repair as the seals apply to get jammed and haveed replacement. The replacement of the broken/worn big bucks showers accounted for nearly 50% market.2The users were having poor knowledge about the showers, gettable brands and options. These problems enticed the UK shower market and thus shaped the consumer behaviour and the products available in the market.Market portionsThe shower market finish be broadly segmented in devil categories User and Non-Users. Refer App terminalix manifest 1.USERSPremium users looked for style, performance, armed service and life. criterion users looked for performance, life and service of the shower.Value users looked for scathe, convenience and models that did non pray major excavation and modifications in their bathrooms.NON-USERSPlumbers Plumbers interacted through variety of ways with the end users- directly or indirectly. They maintained strong relationships with the manufacturers of the showers. They played a anchor role in the sale of the showers.3Developers They were t he property developers in the UK. They preferred genuine showers which could work nether multiple settings. They were price sensitive. They had direct contacts with the manufacturers or depended on the independent pipe fitters.DIY These ar large retail outlets which bottomed customers who ar primarily look for ease of installation and inexpensive models. There were substantial sales pickings place through this transmit.4Different Models and the Product Offers base on the problems that existed, the market segmentation and the factors influencing decision making, three main types of showers were available in the market Electric Showers, social Showers and the Power Showers. They were targeted at diverse market segments chthonian different brand names by manufactures. crystal Value proposalThere go forth be two Value hints Statements5 based on the market segmentation one for Users and the different one for Non Users. Refer addendum manifest 3It is considered that the crystallization Showers bequeath be chosen over the competitive Mixer and the Power Showers. This is because of-Superior Design Quartz set up was designed to overcome the limitations of the Mixer and Power Showers, therefore in eagle-eyed term they testament replace them completely.Current market share6 Aqualisa has only 20 % and 16.7% of the current market share in the social showers and the power showers category. It is ranked 2nd and 5th respectively in these two categories. These two sectors offer the maximum growth potential and possibility of capturing cutting market share.Total costs7 The initial cost of the Quartz showers are higher than both the Mixer Shower and the Power Showers, save installation of Mixer Showers require additional expenditure. It needs 2 man-days of the plumber which costs at least(prenominal) 640 (considering 40 per hour and 8 hours per day). Additionally, the plumbers charge the cost of excavation- compass and materials extra. Therefore the t otal costs of ownership of Quartz Standard showers tress out to be cheaper.Multiple Brand Strategy Gainsborough, Aqualisa and ShowerMaxBased on the market segmentation shown above, Aqualisa uses three different brands to position and serve its target markets optimally.The use of different brands is a positioning policy so that Aqualisa can determine its selling Mix8 for each target market segment in order to occupy a clear, distinctive and attractive position in the minds of the consumers relative to the competing brands and products.9 It is make clear from the figure below that the three different brands (shown by different colours) have three different products, price range, promotional channels and distribution channels.The Marketing Framework10 Positioning Strategy and 4PsQuartz Mainstream or NicheAqualisa spent nearly 5.8 Million over a catamenia of 3 years to develop Quartz. This is close to 10% of the total revenue enhancement generated by the firm in the year 2000.11 A dditional modules could be built upon the existing Quartz installations to provide sophisticated features with customised benefits e.g. horizontal Body Jet. The voiceless expense, scalable plug-ins and the lower total costs of ownership suggest that Quartz was designed to be a mainstream product.Quartz Why are they non selling?The sales of Quartz are non picking up for number of reasons1. Rogers Five Factors12 determine the rate of acceptance of an innovation in a market place. These Five Factors are relative advantage, compatibility, complexity, trialability and observability. Quartz scored low on the compatibility because the plumbers who were selling and influencing the sullying decisions of the consumers, were vary of use of electronics in the showers. Also, Aqualisa was not in force(p)ly offering trials/demonstrations to its users (except through showrooms) and plumbers in its marketing strategy and therefore loosing sales. Whenever, the plumber or the consumer was getti ng a demonstration it was resulting in a sale.2. Associated Cost Savings The lower total costs of ownerships were not clear communicated to the plumbers and the end users to mitigate reluctance due to the higher initial price of Quartz.3. Plumber mindset and long adoption times No apparent efforts were interpreted to educate the plumbers. They were only communicated verbally about the additional benefits of the Quartz, yet no workshops or trainings were carried out to overcome the reluctance of the plumbers.4. Lack of uncloudedness in the sales team and conflicting brands resulting in lower sales. The sales team lacked clarity on which product it had to promote- Quartz or the mainstream products-Aquavalve and Aquastream. Infact, Rawlinson and the subject sales manager Tim Pestell had different views on Quartz mainstream or niche nature. This resulted in lower push from sales team.5. Only 10% of their time was given over by sales team on new prospects. This meant that they were limiting themselves to a smaller group of potential buyers.6. Awareness There were little actions taken to spread the benefits and the wow factor of the Quartz shower to the end consumers apart(predicate) from a weekly advertizement in The Mail.What should Rawlinson do?To increase sales, it is essential to understand the Decision Making Process (DMP)13 of the target market segments. The DMP of the users and the plumbers are different. For DIY and Developers, we would need to establish a separate strategy.Mapping the DMPPlumbers Users Premium, Standard unmindful(predicate) UnawareAwareness AwarenessReluctance DemonstrationTrial cognition of benefitsPurchase PurchasePositive Attitude/ReferenceRepeatBased on the DMP, our Marketing and parleys Strategy should be to increase sense and trial/demonstrations. Further, the strategy should be based on the 6Ms model14 to consider all the aspects and maximize the output.6Ms Model1. Market We have not targeting the user-value segment since it is not suitable for Quartz.2. Mission To achieve a sale of at least 100 units per day in the next 3-4 months to bring Quartz in the mainstream segment. The maximum time available till another competitor catches up with the innovation is estimated to be 2 years.3. Message The message has to be different for the Plumbers and the Users. The different messages ordain be the domainment of benefits that are spelled out in the Value Proposition of Quartz. Refer Appendix Exhibit 2.4. Media4.1 advertizing upright fledged advertisement campaign have high costs15. Therefore advertisement expenditure will be limited. However, a new and cost effective media can be the back of the Shower Gel Bottles. This way Aqualisa will be able to reach the users and even the non-user market very effectively. A small pilot test can be carried out forthwith to determine its possible impact and its cost. Internet advertisement is also an effective and a cheaper way to reach the end users. The Pay per cli ck archetype will help economize the advertising costs down.4.2 Sales aggroup A change in the marketing structure of Aqualisa is needed so that greater focus can be given on each channel. The suggested marketing structure is shown in Appendix Exhibit 4.4.3 Channel commission & Sales procession This is based on giving incentives and forming stronger commercial relationships with the channel partners to push16 the Quartz through different channels available.Plumbers base Event work up a launch cum training event for one large day where plumbers from different locations can be brought together and explained about the product. This should hold a hands on training program so that they ca-ca the ease and get rid of any misconceptions. This can be perennial if required. Plumber Loyalty Program & Commissions Plumbers association with Aqualisa can be made official. Plumbers can be given commission for every sale of Quartz. This will immediately get their attention and help elimina te any doubts. magic spell advertising Quartz directly to the users, their names can appear as the list of authorised plumbers to fit/sell Quartz in the unique(predicate) territory. In return, a small fee can be charged to them for their official partnership. References Aqualisa can use references from respected plumbers to endorse the credibility of Quartz. dismissal beyond the existing associated plumbers To look and expand beyond the already cognise plumbers. hand Shops Videos showing the entire installation process in a step wise manner and the associated cost savings to plumbers. ahead of time discounts In-order to keep their commitment towards Quartz, certain Early Discounts schemes may be offered. Training the Trade Shop faculty to sell on Associated Cost Savings for the plumbers. The wiliness shop staff should be able to explain Quartz benefits and how it is different from the in front failed showers which used electronics. Expand to other Trade Shops Increase cover age to newer patronage shops and territories.Showrooms & Distributors Expand to untapped Showrooms & Distributors in new geographies without conflicting the existing ones. Early discounts4.4 Integrated MarketingAqualisas direct communication with end user should not result in direct business. The sales to the end users must be routed through authorised channels of showrooms and plumbers. Also the retail pricing for the plumbers and the showrooms will have to be same and fixed to avoid under-cutting. The idea is to make out customer cognizance and to use the Pull Strategy through each of the two channels. This will keep the current relationship with the channel partners intact.5. currency The entire Marketing communication and promotion strategy has been designed such(prenominal) that the initial cash outflow is less. Refer Appendix Exhibit 56. Measurement It is extremely important to monitor closely how sales are picking up after taking all the initiatives. The restructuring of the marketing incision suggested will help. Daily reports with key facts and figures will be made available to the Rawlinson who can then take suitable actions.Stripped down magnetic variation for the Developers & DIYAqualisa should develop a stripped down version of the Quartz for the DIY and Developers market(brand it under their existing Gainsborough & ShowerMax brands). Branding it under a different name will keep their Aqualisa brand intact. The fact that Quartz will become a platform on for subsequent hi-end solutions, it is recommended to concentrate on higher volumes than margins initially. expirationClose monitoring and implementations of the suggested schemes will help Aqualisa increase sales of Quartz to achieve its mainstream status.AppendixExhibit 1 Market SegmentExhibit 2 Various shower categories, Aqualisas Offerings and the take used by them.Exhibit 3 Value Proposition of Quartz.Exhibit 4 vernal Sales & Marketing Department Structure.Exhibit 5 Marketing Commu nication and Promotion Expenditure.Exhibit 1 Market SegmentUK Shower Market SegmentExhibit 3 Value Proposition of QuartzValue Proposition Statement17 for USERSPremium and Standard category Users who need bathroom showers will buy Quartz Standard Shower and Quartz Pumped Shower because it delivers piddle at good and stable pressures and temperatures, it is easy to use, it does not break down and has stunning looks. They will choose this over the Mixer and the Power Showers of other players such as Mira, Masco, Ideal Standard and triton because we can unambiguously offer remotely located water combine mechanism that is electronically controlled and superior design from our focus on innovation, state art of scrutiny facilities and engineering development team.Value Proposition Statement for NON USERSPlumbers who sell and influence buying decisions of bathroom showers will buy and recommend Quartz Standard Shower and Quartz Pumped Shower because it is easy to install, can be instal led four times faster, does not need any excavation, offer a 5 year parts warranty, does not go wrong and need a second free visit. They will choose this over theMixer and the Power Showers of other players such as Mira, Masco, Ideal Standard and Triton because we can uniquely offer remotely located water mixing mechanism that is electronically controlled and superior design from our focus on innovation, state art of testing facilities and engineering development team.Exhibit 4 New Sales & Marketing Department Structure.Exhibit 5 Marketing Communication and Promotion Expenditure.Less focus is given on advertisement and more focus is given on the push strategies. This way the maximum residue of the marketing promotion expenditure occurs after the actual sales occur.Marketing Communications Media Expenditure type onward / After Sale1. advert on Shower Gels Before2. Advertising on Internet (pay per click) Before the sale, but charged only on click not for placements3. Advertising in Newspapers Before4. Sales Restructuring Extra Mktg. executives Before, however they will be used for closer monitoring of the implementation schemes and to push other products also.5. Channels Plumbers Commission AfterPlumber Loyalty Program BeforeLaunch Event BeforeTrade Shops Early Discounts AfterTrade shops staff training costs BeforeShowrooms Early Discounts AfterOnly in cases of Launch event and training programs there can be a substantial outflow earlier, however this is absolutely necessary to increase awareness in the Plumbers.