Aqualisa Case Study
Aqualisa Product Offerings:
Aqualisa has a good brand name and has a strong product line. The name Aqualisa is synonymous with high quality and great service. The company enjoys overall second position in the UK shower market. Aqualisa markets the products as three separate brands:
1. Aqualisa (Core products line)
2. Gainsborough (Value range)
3. Showermax (Available through specialist contract outlets)
They had launched a new shower called Quartz, which is a major product innovation in years in the shower market in the UK. The product line Aqualisa offers can be viewed from three perspectives:
1. Product Line Breadth: Aqualisa??™s main product is shower and pump. There are three different types of showers ??“ electric showers, mixer showers and power showers. A substantial part of revenue (approximately one third) comes from selling shower accessories and other commercial products.
2. Product Line Length: Aqualisa offers a good length of products. In every category of the shower and pump, Aqualisa has three segments ??“ Value, Standard and Premium. The products in these segments are available through different distribution channels and cater to different customers.
3. Product Line Depth: Since showers are standard equipments, these don??™t come in many varieties.
Product Line Breadth Aqualisa Product Line Length Offerings
Value Standard Premium
Electric Showers Gainsborough Gainsborough Aquastyle
Mixer Showers Aquavalve Value
Showermax Aquavalve 609 Quartz Standard
Power Shower Aquastream Manual Aquastream Thermostatic
Pump Aquaforce 1.0/1.5 Bar Aquaforce 2.0/3.0 Bar
Shower accessories and commercial products
Along with the physical product, product offering is the value or benefit that the customer enjoys. It comes bundled with the product and can include the brand value, technical support, etc. Aqualisa has the following product offerings:
??? The product itself
??? Brand value
??? Company Reputation
??? Convenient availability
??? Word of mouth references
??? After sales service
The penetration of showers in UK homes is low. Only 60% of them have showers. Many of these had very old plumbing and worn out showers. Replacement showers had 44% share in the overall market. In the UK shower market, the consumers are usually uninformed about the types of showers. They have little or perhaps no knowledge about the options available.
Brand awareness is also low among UK consumers. This is evident by the fact that only 27% of the consumers take decisions on type and brand of shower alone (i.e. without consulting plumbers). The rest 73% take advice from plumbers for either type or brand of shower or for both. Hence plumbers are the opinion leaders and are sought by a majority of customers for their judgement and expertise.
The different types of consumers are:
1. End users: End users are indifferent to the brand and have little or no knowledge about the types of products. Generally, their decision making attributes are:
a. Good water pressure
b. Constant accurate temperature
c. Easy to use.
d. Ability to bear lime scale formation
e. Good quality shower valves (that don??™t turn stiff to turn)
f. Good quality sealing (to prevent leaks)
2. Plumbers: The people with multiple years of experience. They are the opinion leaders and influence 73% of the consumers buying decision. They are sought for their expertise and technical knowledge. Their decision making attributes are:
a. Easy to install
c. Doesn??™t require any service.
3. Property Developers: Developers are the high volume business. They form significant market size in UK. Their decision making attributes are:
b. Nice looking product
c. Can work in multiple setting
d. Economical (with the exception of luxury developers).
4. Do-it-yourself (DIY): They are a sizeable market in the electric showers category. Their decision making attributes are:
a. Easy to install
b. Value range
c. Readily available
Based on the buyer behaviour, they can be categorised as follows:
Market Segment Decision forming agents / Distribution channel Values
Premium Showroom Style
Standard Plumber/ Trade shops Performance
Value Plumber/ Trade shops Functionality
Do-it-yourself Large retail outlet Easy to install
Property Developers Direct company sales Easy to install
Nice looking and reliable
Worked in multiple settings
Quartz Value Proposition
Quartz is an innovative product that received rave reviews from the press, plumbers and the early adopters. If positioned properly, it can catapult Aqualisa as a leader of a new class of intelligent showers. A unique value proposition will help Aqualisa achieve that. I recommend the following unique value proposition targeted alike for customers and plumbers:
???Customers who need a reliable, good looking and easy to install and use shower will buy Aqualisa??™s Quartz because it eliminates water pressure and excavation problems and can easily fit anywhere. They will choose this over Mira and Triton showers because we can uniquely offer technically advanced shower with one touch automatic temperature control and light indicator from our highly qualified team of scientists and design engineers who spent 3 years designing the shower that customers want.???
I base my value proposition on the results of the market research conducted before Quartz was developed (See Appendix A). The distinctive capability that enabled Aqualisa to develop Quartz is the top notch research and development team. Clearly, Aqualisa has an edge over its competitor??™s products because of Quartz??™s automatic temperature control and flexibility to fit anywhere.
Multiple Brand Strategy
Aqualisa has multiple brands catering to different segments of the market.