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Aqualisa Quartz-Syndicate 1 NDHI

The document discusses Aqualisa Quartz, a new shower product developed by UK shower manufacturer Aqualisa. It analyzes why the Quartz shower is not selling well, such as plumbers' wariness of new technology and high price. It also evaluates if the 5.8 million pound investment in developing the Quartz was worth it based on projected revenue under pessimistic, most likely, and optimistic scenarios. Aqualisa developed the Quartz shower to position itself as superior in quality, technology, design and ease of installation compared to existing shower products. However, the Quartz shower was not selling as well as expected due to factors like plumbers

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heber
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0% found this document useful (0 votes)
111 views9 pages

Aqualisa Quartz-Syndicate 1 NDHI

The document discusses Aqualisa Quartz, a new shower product developed by UK shower manufacturer Aqualisa. It analyzes why the Quartz shower is not selling well, such as plumbers' wariness of new technology and high price. It also evaluates if the 5.8 million pound investment in developing the Quartz was worth it based on projected revenue under pessimistic, most likely, and optimistic scenarios. Aqualisa developed the Quartz shower to position itself as superior in quality, technology, design and ease of installation compared to existing shower products. However, the Quartz shower was not selling as well as expected due to factors like plumbers

Uploaded by

heber
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Master of Business Administration

School of Business and Management


Bandung Institute of Technology
2019

SYNDICATE 1

AQUALISA Heber Panjaitan 29119109


Christina Tiurma Novianti 29119228
QUARTZ Meyta Saraswaty Putri 29119089
Hanung Pratama N. 29119010

Tugas Marketing Management


Company Overview VALUE PROPOSITION
For Customer
Aqualisa is a UK shower manufacturer
Efficient & Reliable Water Pressure
Top quality brand, a strong reputation, and Neat fittings & Elegant Design
great service
AQUALIZA- Innovative “touchtronic” operation
Aqualisa has invested 5.8 million to develop QUARTZ
Straightforward and less time
a breakthrough product (May 2001), the STUDY CASE
installation
Quartz shower
Great economic benefit
The Quartz positions itself superiorly in
terms of quality, technology, design and 5 years part & labour warranty
ease of installation.
Quartz can be installed 4 times
PROBLEM more quickly

Take 75% lesser installation time


The Quartz Shower is
Installation is so simple even
not selling apprentices can perform it, which
would increase the plumber business
For Plumber
No risk or after-sales problem
Segments & Channels

AQUALIZA-
REACHING CUSTOMERS QUARTZ
STUDY CASE

CHANNELS Trade Shop DIY Sheds Showrooms

Plumbers
MIDDLEMAN

CUSTOMERS Standard Value DIY Premium Developers


Why is The Quartz Shower Not Selling ?

AQUALIZA-
QUARTZ
STUDY CASE
01 Plumber’s wariness for innovation

02 High Price, Niche Product

Low brand awareness of Quartz Product


03
As developers were price sensitive, so
04 they generally avoid prime products
The sales team have to point out
05 deficiencies in Aqualisa existing products

It fails to overcome plumber fear of not


06 working of electronic product.
Was The Product Worth The Investment ?

PROJECTED AQUALIZA-
REVENUE QUARTZ
STUDY CASE

Pessimistic Most Likely Optimistic


Total # of UK Plumbers 10,000 10,000 10,000
Forecasted Market Penetration 10% 20% 30%
# of target plumbers 1,000 2,000 3,000
Average # of shower installed / year by plumber 180 180 180
# units / year 180,000 360,000 540,000
Avg. MSP (Quartz Pumped & standard) € 513 € 513 € 513
Total Sales € 92,250,000 € 184,500,000 € 276,750,000
Avg. Unit cost (Quartz Pumped & standard) € 203 € 203 € 203
Total cost € 36,450,000 € 72,900,000 € 109,350,000
Gross Margin € 55,800,000 € 111,600,000 € 167,400,000
Multiple Brand Strategy is a very
common strategy nowadays
Multiple brand strategy used to accomodate various channels/segments in
their own needs without ruin the market of the existing product. Therefore,
BRAND multiple brand strategy will increase the market share.
In addition, this strategy will protect the main brand image. If a new brand
STRATEGY fails, this multiple brand strategy will not have much effect on the main brand.

Aqualisa’s brands:

Aquastyle : Aquastyle is targeted for showrooms channels. Showrooms preferred to carry


high-end product lines and brands that unavailable in other channels. Typically customers
that shopped in showrooms are in the premium pricing segment. Customers in
showrooms channels took for granted high performance and service, and for them style
determined their selection.

Gainsborough : Gainsborough is a product targeted to be sold on DIY (Do-it-yourself)


Shed. Customers in DIY Shed Channels were interested in inexpensive models that were
easy to install, eventhough the products were bulky and unattractive. Currently
Gainsborough brand was availablein 70% of the approximately 3,000 DIY outlets in the
U.K.

Showermax : Showermax is targeted for developers. Developers have characteristics


Differentiate types of products: which are price sensitive and specific needs. With this brand, Aqualisa does not need to
• Electric Shower : Gainsborought give discount existing products, so as to maintain the current brand image. On the other
hand, Aqualisa can fulfill the developers’ need.
• Mixer Shower : Aquavalve
• Power Shower : Aquastream
Multiple Brand Strategy is a very
common strategy nowadays
Multiple brand strategy used to accomodate various channels/segments in
their own needs without ruin the market of the existing product. Therefore,
multiple brand strategy will increase the market share.

In addition, this strategy will protect the main brand image. If a new brand
fails, this multiple brand strategy will not have much effect on the main brand.
Advantages of Multi Brand Strategy :
• Create an impression, features, and other attractions for
consumers so that more choices.
• Having Multiple brands helps the companies to establish
its superiority over the markets and over the competition.
• The multi Brand strategy is very useful for the brand
switchers who keep on changing brands to try different
products.
• Effective for large companies that have many
competitors

Disadvantages of Multi brand Strategy :


• Cannibalization
•A major disadvantage of a multi-brand strategy is
that the company’s image may become that of not
customer oriented but profit oriented.
What Should Rawlinson
do?

• Cooperation with plumbers by offering


more benefits.

• Targeting trade shop, give them lucrative


offers to sell products to plumbers and
put up promotions at each merchant
store
AQUALIZA-
QUARTZ

THANK
YOU

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