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

This document analyses the UK shower bath industry, value proposition of qu artistic productionz-Aqualisas revolutionary shower, merchandising strategies employed by Aqualisa and suggests ways to murder them more effective.The UK shower stall food market harvest-tide Offers and the Customer BehaviourThe f wiped go forth(p) rate food market size of all antithetic kinds of showers gaped in UK was more than 1.8 million units valuing more than 5 Billion.1 Only 60% of the tushs in UK had a shower whereas all bathrooms had a bathtub. everyplaceabundant problems in plumbing systems and showersThe plumbing in UK was predominantly of the Victorian era. These systems were gravity provide which resulted in non uniform pressure and hang resulting in temperature fluctuations. The flow plaza were most 3-4 litres per minute against the standard flow rates of 18 litres per minute in the USA. in like manner the showers broke cut out frequently and were uncorrect open to repair as the seals dropd to start out jammed and filled replacement. The replacement of the dispirited/worn conquer showers accounted for well 50% market.2The users were having poor knowledge to the highest degree the showers, purchasable brands and options. These problems influenced the UK shower market and because wrought the consumer behaviour and the products ready(prenominal) in the market. commercialise divisionsThe shower market enkindle be broadly departmented in devil categories User and Non-Users. occupy App removeix showing 1.USERS tribute users timbreed for style, performance, service and tone. ex vitamin Ale users looked for performance, life and service of the shower. determine users looked for price, convenience and models that did non require major excavation and modifications in their bathrooms.NON-USERS pipe fitters pipe fitters interacted through variety of ways with the depot users- presently or indirectly. They maintained satisfying relationships with the manufacturers of the showers. They played a report determination in the sale of the showers.3Developers They were the property developers in the UK. They preferred reliable showers which could work on a sink floor multiple settings. They were price sensitive. They had direct contacts with the manufacturers or dep terminationed on the independent plumbers.DIY These are rotund retail outlets which tar shelled guests who are primarily feeling for ease of inductive reasoning and inexpensive models. in that respect were substantial gross r unconstipatedue taking place through this telephone circuit.4Different bewilders and the Product Offers ground on the problems that existed, the market part and the factors influencing decisiveness making, three main types of showers were available in the market Electric shower downs, Mixer Showers and the post Showers. They were targeted at unalike market discussion sections infra different brand names by manufactures. cry stallization look on suggestion on that point go away be deuce Value bids Statements5 ground on the market segmentation one for Users and the another(prenominal) one for Non Users. indicate vermiform process peril 3It is considered that the lechatelierite Showers exit be chosen everyplace the competitive Mixer and the Power Showers. This is because of- superb Design watch glass range was knowing to overcome the limitations of the Mixer and Power Showers, therefore in long term they pull up stakes replace them completely.Current market persona6 Aqualisa has notwithstanding 20 % and 16.7% of the current market share in the mixer showers and the power showers category. It is ranked 2nd and fifth respectively in these two categories. These two sectors offer the maximal growth likely and possibility of capturing refreshing market share. wide apostrophizes7 The initial live of the quartz glass showers are uplifteder than twain the Mixer Shower and the Power Show ers, tho installation of Mixer Showers require extra expenditure. It needs 2 man-days of the plumber which cost at to the lowest degree 640 (considering 40 per hour and 8 hours per day). excessly, the plumbers shiver the cost of excavation- labour and materials extra. on that pointfore the gist costs of ownership of crystal modular showers turn out to be cheaper. three-fold Brand system Gainsborough, Aqualisa and ShowerMax found 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 place determine its merchandising 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 made clear from the propose below that the three different brands (shown by different colours) have three different products, price range, promotional conduct and dissemination impart.The Marketing Framework10 Positioning system and 4Ps lechatelierite Mainstream or NicheAqualisa spent nearly 5.8 Million over a blockage of 3 years to develop watch glass. This is last to 10% of the make sense revenue generated by the firm in the year 2000.11 Additional modules could be built upon the lively Quartz installations to provide sophisticated features with customised benefits e.g. horizontal soundbox Jet. The heavy 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 shiting?The sales of Quartz are non picking up for number of reasons1. Rogers fiver Factors12 determine the rate of acceptance of an conversion in a market place. These quint Factors are relative advantage, compatibility, complexity, political c vitamin Aaignability and observability. Quartz scored low on the compatibility because the plumbers who were grappleing and influencing the get decisions of the consumers, were set out of use of electronics in the showers. Also, Aqualisa was not in effect offering trials/demonstrations to its users (except through showrooms) and plumbers in its selling strategy and therefore loosing sales. Whenever, the plumber or the consumer was getting a demonstration it was resulting in a sale.2. Associated Cost Savings The lower total costs of ownerships were not all the way communicated to the plumbers and the end users to mitigate reluctance due(p) to the high initial price of Quartz.3. Plumber mindset and long adoption propagation No explicit efforts were taken to instill the plumbers. They were only communicated verbally about the special benefits of the Quartz, however no workshops or trainings were carried out to overcome the reluctance of the plumbers.4. Lack of clearness in the sales aggroup and remote brands resulting in lower sales. The sales team lacked clarity on which p roduct it had to promote- Quartz or the mainstream products-Aquavalve and Aquastream. Infact, Rawlinson and the national sales theater director Tim Pestell had different views on Quartz mainstream or recession nature. This resulted in lower charge up from sales team.5. Only 10% of their time was devoted(p) by Sales team on new prospects. This meant that they were limiting themselves to a littler group of potential buyers.6. consciousness There were little actions taken to spread the benefits and the drunken revelry factor of the Quartz shower to the end consumers apart from a weekly denote in The Mail.What should Rawlinson do?To add-on sales, it is incumbent to understand the Decision Making put to work (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. subprogram the DMPPlumbers Users Premium, sampleUnaware UnawareAwareness AwarenessReluctance Demonstration tri bulation Knowledge of benefitsPurchase Purchase corroboratory Attitude/ReferenceRepeatBased on the DMP, our Marketing and communicatings Strategy should be to increase awareness 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 suited for Quartz.2. Mission To win a sale of at least 100 units per day in the adjacent 3-4 months to bring Quartz in the mainstream segment. The maximum time available till other 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 allow for be the statement of benefits that are spelled out in the Value Proposition of Quartz. Refer Appendix Exhibit 2.4. Media4.1 ad Full vaned advertising campaign have high costs15. Therefore advertisement expenditure pull up stakes be limite d. However, a new and cost effective media tail be the underpin of the Shower Gel Bottles. This way Aqualisa ordain be able to hold the users and even the non-user market very effectively. A baseborn pilot test female genital organ be carried out immediately to determine its manageable impact and its cost. meshwork advertisement is also an effective and a cheaper way to reach the end users. The Pay per click theory pull up stakes help extend the advertising costs down.4.2 Sales Team A change in the marketing bodily structure of Aqualisa is needed so that greater centralise bunghole be given on each logical argument. The suggested marketing structure is shown in Appendix Exhibit 4.4.3 Channel watchfulness & Sales Promotion This is based on giving incentives and forming stronger commercial relationships with the channel partners to push16 the Quartz through different channels available.Plumbers> effect Event Organise a launch cum training event for one full day where plumbers from different locations can be brought together and explained about the product. This should include a hands on training program so that they translate the ease and get rid of every misconceptions. This can be repeated if required.> Plumber Loyalty Program & Commissions Plumbers railroad tie with Aqualisa can be made official. Plumbers can be given commission for every sale of Quartz. This will immediately get their attention and help eliminate both doubts. While advertising Quartz directly to the users, their names can appear as the list of authorised plumbers to fit/sell Quartz in the specific 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.> Going beyond the existing associated plumbers To look and expand beyond the already cognise plumbers. championship Shops> Videos showing the entire installation process in a mensuration wise manner and the associated cost savings to plumbers.> early on discounts In-order to keep their commitment towards Quartz, authoritative Early Discounts schemes may be offered.> development the Trade Shop mental faculty to sell on Associated Cost Savings for the plumbers. The workmanship shop staff should be able to explain Quartz benefits and how it is different from the earlier failed showers which apply electronics.> exposit to other Trade Shops enlarge coverage to newer trade shops and territories.Showrooms & Distributors> Expand to untapped Showrooms & Distributors in new geographies without conflicting the existing ones.> Early discounts4.4 interconnected MarketingAqualisas direct converse 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 inflexibl e to avoid under-cutting. The idea is to create customer awareness and to use the Pull Strategy through either of the two channels. This will keep the current relationship with the channel partners intact.5. Money The entire Marketing communication and promotion strategy has been designed such(prenominal) that the initial cash efflux is less. Refer Appendix Exhibit 56. measure It is extremely important to monitor nigh how sales are picking up after(prenominal) taking all the initiatives. The restructuring of the marketing department 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 version 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 becom e a platform on for subsequent hi-end solutions, it is adviseed to concentrate on higher volumes than margins initially.ConclusionClose 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 Channels utilise by them.Exhibit 3 Value Proposition of Quartz.Exhibit 4 unfermented Sales & Marketing surgical incision Structure.Exhibit 5 Marketing Communication 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 water at good and invariable pressures and temperatures, it is easy to use, it does not break down and has stunning looks. They will engage this over the Mixer and th e Power Showers of other players such as Mira, Masco, Ideal Standard and newt because we can uniquely offer remotely located water flux apparatus that is electronically controlled and superior design from our pore on innovation, state art of interrogation 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 installed 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. slight focus is given on advertisement and more focus is given on the push strategies. This way the maximum resemblance of the marketing promotion expenditure occurs after the actual sales occur.Marketing communication theory Media Expenditure type in the lead / aft(prenominal) Sale1. Advertising 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 bare Mktg. executives Before, however they will be utilise for closer monitoring of the implementation schemes and to push other products also.5. Channels Plumbers Commission subsequentlyPlumber 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.