Aqualisa

In sum, create a more focused marketing plan by determining the correct

market segment. Determining the correct consumer will aid the company in
properly placing the product and creating the necessary campaign that goes
with that specific market segment

1. What is the Quartz value proposition to plumbers? To Consumers?

To plumbers:
a. Easy installation
b. More profitable –
i. ½ day work (25% of previous time), apprentices can do work also –
opportunity to install more and capture some of historical 6-mo. wait list
ii. on average, plumbers do 40 to 50 a year (generally 2-day job), but
generally without reducing profit, will be able to do many more

To consumers:
 High quality product that is:
- Efficient and reliable water pressure and temperature
 One touch control system
- Easy installation
 Product is not bulky so it can be installed and stored anywhere

2. Why is the Quartz shower not selling?

a. Reluctance of plumbers to switch; mostly due to stigma of other innovative
options that failed or required repairs, affecting consumers
b. Possibly overpriced
c. Product is not being targeted to the correct consumers and therefore are
not being marketed extensively or efficiently at the correct distribution
channels
(Marketing doesn’t mean that the product has to be everywhere – it’s about
cost efficiency too)

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?
a. Yes, worth the investment, because technologically innovative.   Early test
results showed consumers loved the product. Consumers are currently
relatively uninformed and there was little understanding of product options
b. Mainstream, superior product and resolves all issues:
i. Poor pressure
ii. Varying temperature
iii. Break after a while

4. Aqualisa currently has three brands:   Aqualisa, Gainsborough, and

ShowerMax.   What is the rationale behind this multiple brand strategy.   Does
it make sense?
Yes, to allow brand to penetrate different specialized markets.
a. Aqualisa – higher end, range of different types of electric, mixer, and power
showers; shown in show rooms and used my consumers/plumners, Aqualisa
available in 40% of trade shops
b. Gainsborough – mainly for DIY market (sizeable) ; 70% of Gainsborough
brand
c. Shower Max – for developers mostly
But, this is not cost effective – too many channels and unfocused
Suggestion:
Capture the plumbers segment by highlighting how easy the product is to
install and how much more work they can take on with the easy installation
and that this can be delegated to a junior associate (productivity increases,
the opportunity cost of not taking on a job is diminished) – this is also a great
starting point for a word-of-mouth campaign: a strategy that is cost-effective.
Once value has been proven to the plumbers, then the company can attract
the consumers (the shoppers), and developers of condominiums and possibly
hotel chains. Both of these segments are influenced to some degree by
plumbers.
The developers can also be targeted because of the product’s appeal
(modern, non-reliant on old water gravity system)
They can utilize Pull strategies at this point, especially after their marketing is
made more focused (select proper distribution channels). They can offer
discounts/free goods to plumbers.