Aqualiza Quartz Shower

1.Situation analysis

a. Customers

The segmentation of Aqualisa consumers has tended to fall in three different levels:

* Premium: as in those people that typically buy in showrooms, taking for granted high performance and service, and by that their selection was determined by the style of the shower.

* Standard: Consumers in this segment relied on emphasizing performance and service.

* Value: In this segment consumers were concerned with the convenience and price of the product.

b. Channels of distribution

* Trade shops: The primary customer of this distribution channel are plumbers that work directly for developers, contractors, or directly for consumers. The Aqualisa brand was available in 40% of all trade shops. The customers of trade shops are very sensitive when it comes to interaction with the seller, they do not search for tech advice, rather reliable product availability. All three types of showers (electric, mixer, power) are sold in large quantities thorough this channel.

* Showrooms: The purpose of the showrooms is to provide service to consumers that are positioned on a scale that allows them to interact with the «consultants» of showrooms that guide them thorough selection of a bathroom that fits their desires. The shower is already installed in an artificial household environment that provides the customer a sort of a virtual reality so they can easily decide which product to buy. Electric and Mixer showers are the most popular among customers.

* DIY sheds: These retail outlets offer mass - market, do-it-yourself, and most importantly products that are on discount. Electric showers have the dominant role in this channel regarding sales of showers. Electric showers are the most preferred product in the DIY channel.

c. Competition

The producers that pose the biggest threat to Aqualisa Quartz are Triton that managed to build a respectable brand awareness at the consumer level and Mira as well as a licensed product sold to developers under the brand name ShowerMax that uses Aqualisa technology and ofcourse Gainsborough that uses the same concept - separate brand name.

d. Company and market environment

The company itself is brought mainly in an traditional manner, being organized traditionally with an downward hierarchal order. Harry Rawlinson being the managing director, and from that point on the structure brakes in four different areas such as technical, marketing&sales, finance and operations department. Other than that, with the coming of Harry Rawlinson, he helped build the R&D team, what later proved to be crucial in their efforts to introduce something groundbreaking to the market. The market it self is a mature one, with the Aqualisa Company making between 5 and 10 percent annual growth and 25 percent of net return on sales, what made most of the people satisfied in the company, but turned out to be a double edged sword. The company had about two years of head start in front of the competition that had to be used wisely.

2. Quartz value proposition to consumers

The benefits of the Quartz shower to consumers is in my opinion enormous, if we take in consideration the types of problems that most shower users deal with in Great Britain. It isn't meant to fit all of the consumers needs possible, but it offers simplicity and efficiency what most of the consumers search for. If we draw a line between the Quartz and the Aquavalve 609 we can easily conclude that the biggest advantages of the Quartz are ease of installation that doesn't need bathroom excavation (it is kept to a minimum) while the Aquavalve 609 requires a lot of work especially if an additional pump is required and that results in additional costs for the consumer that are not neglible, as well as it is not esthetically attractive bathroom after the work is done. The additional cost of installing the additional pump of Aquavalve 609 would probably exceed the 300 pounds sterling difference between the Aquavalve and the Quartz.

3. Quartz value proposition to the plumbers

For the plumbers, by their first reactions it is exactly what they needed or wanted. This fact is relevant mainly because it cuts their usual time frame for installing an average shower by 1,5 day. The simplicity of the installment allowed them to even send inexperienced young apprentices to install the shower that probably cost them nothing or a small fee for the salary of the apprentice. The plumbers are better off with the Quartz because it minimizes both their time and salary