Posted at 11.16.2018
Aqualisa is a shower processing company in the U. K. They make electric, mixer and ability showers. They focus on people in all the three sections namely Prime, Standard and Value. They sell electric showers under the name 'Gainsborough'. Rawlinson took over as the managing director of Aqualisa in 1998. Aqualisa was possessing a 25% net come back on sales and was having a growth of 5 to 10% in older market when he required over. Aqualisa has turn out with a fresh product by name Quartz in 2001. Quartz is one of its types in the bathtub market. It has been developed over an interval of three years with an enormous investment of 5. 8 million. Regardless of its state-of-art technology it is unable to catch the marketplace. Rawlinson, the controlling director of Aqualisa, is aimed at a deal of 100 or 200 units every day from the existing 15 units per day.
Blackwell, Miniard, Engel define consumer behavior as "A field of research that ocuses on consumer activities". (Webpage 4, Chapter 1) 60 percent60 % of the homes in UK use showers. In the entire year 2000, out of the total sales made for showers 61% bought electric showers(Source : Show 1 Research study) and the rest of the 40% comprising of mixer and electricity showers. Electric showers didn't need excavation which most people didn't like but electric shower did not solve the water flow problem. Triton is the marketplace leader in the entire sales of showers and in the electric showers category as well. Not absolutely all people were happy with their showers; replacement unit showers assembly comprised a major 44%. Aqualisa viewed to solve this problem of consumers.
"Understanding consumers is a driving a vehicle force in customer-centric source chains". Keeping this in mind, Aqualisa worked on the needs of customers. "Consumers desired a bathtub that appeared great, delivered good pressure at stable temperature, was easy to use, and didn't breakdown. "(Source: case study). Aqualisa had taken these factors under consideration and developed the Quartz Standard Shower and Quartz pumped shower. Quartz didn't require any excavation, it required only a small location to place the remote processor. It did not require any modification of temperature every now and then.
As per the case study,
The major player in the bathtub market is Triton having sales of 30% of the full total sales of showers in UK. The Gainsborough brand of Aqualisa is the 3rd major player in the market followed by Aqualisa. Aqualisa leads the marketplace in mixer bathtub sales and is third in forces showers. It really is fourth in the overall market. Its electricity showers are Aquastream Manual and Thermostatic. Its mixer showers are Aquavalve and Aquavalve 609. Aquavalve 609 is the top selling shower of Aqualisa. Aqualisa is well liked by the consumers. It is said to acquire top quality showers and service.
The market head Triton is the sole brand in the UK which has awareness at the buyer level. Further, very less percentage of individuals choose their own showers.
All the manufacturers sold their showers through trade outlets, showrooms and D-I-Y sheds. Aqualisa bought from trade shops and showrooms and was unavailable in D-I-Y sheds. From graph, it is evident that Aqualisa's main competitors are the Triton and Mira. Triton was the entire market leader because they sold a very big quantity of electric showers. In the case study, we recognize that electric showers led the sales in D-I-Y sheds. Triton, because they had consumer level awareness could have made more sales in the D-I-Y sheds. Aqualisa will not contend in the D-I-Y sheds immediately. Only Gainsborough comes in this category. From your Show 2 of the case study we also understand that Aqualisa stands second in the mixer bathtub category, second and then Mira. So Aqualisa's main competitor becomes the Mira. For mixer showers, 53% of sales is immediately affected by plumbers. (Source : Case study). The plumbers played out the major role in the bathtub market. Their decision played a essential role in bathtub sales.
Aqualisa has developed a fresh product Quartz. Quartz came as Quartz standard and Quartz Pumped Bathtub. Even after 6 months of its unveiling Quartz sold only 81 parts. Even though the merchandise has been loved, sales never have better. Rawlinson is worried that Quartz would be written failing if indeed they don't raise the sales of Quartz and bring it to the mainstream. Now, the task experienced by Aqualisa is taking Quartz to the mainstream and boosting its sales.
"Any business requires a plan". Likewise Aqualisa must devise its intend to achieve its goal of earning Quartz a mainstream product. Malcolm McDonald (2008) defines Marketing Plan as "It really is a logical sequence and a series of activities leading to the setting up of marketing goals and formulation of strategies for attaining them. "(Chapter 1) A marketing plan essentially is made up of
Before devising its online marketing strategy, Aqualisa should consider its SWOT.
The major strength Aqualisa has at the moment could it be has created the most technologically advanced shower so far. There is no competitor for the merchandise currently. Rawlinson explains to that Aqualisa has a maximum of 2 years lead in the market with quartz. Further, Aqualisa is a pretty popular brand with the plumbers. In fact, the director of marketing even telephone calls them "Our plumbers". Of all challengers, Aqualisa has an extremely strong R and D team. The Quartz has been developed over an interval of 3 years and addresses all the issues faced by the consumer with regard to showers. Despite the fact that the product is very strong, Aqualisa's sales team work is not allocated consistently. Aqualisa has a existence in 25% of showrooms and 40% of trade shops only and 90% of the sales team's time is allocated to maintaining the existing account and only 10% is spent on developing the new business. Aqualisa comes with an opportunity of expanding clients if sales team work allocation is changed.
Aqualisa does not have awareness at the consumer level. The reluctance of plumbers to an electric product and the unawareness of consumer have led to poor sales of the new Aqualisa Quartz. Aqualisa has a good marketing blend already. It has a product in every segment which means that all parts of consumers already use Aqualisa. It really is a chance which Aqualisa might use while marketing its new product.
Rawlinson aims at advertising at least 100 units per day. From the SWOT research, we can easily see that Aqualisa has opportunities of improving sales by growing clients. Aqualisa has its existence only in 25% of showrooms. The target should be to increase their occurrence in more volume of places. Their existence in tradeshops is also not significant. If they make their product popular among plumbers, it is essential that they focus on their channels of circulation.
According to Kotler et al, " The logic by which the business enterprise unit hopes to attain its marketing objectives"(Page 156, Section 3) is ONLINE MARKETING STRATEGY. In the online marketing strategy, the company must decide the portion it targets, position the merchandise in such a way that it captures a location in your brain of the clients and differentiate its product from its competitors.
"Price segmentation is the practice of offering different prices to different customer sections with an eyeball on making the most of the profitability of every segment. ". Based on this kind of segmentation, the UK bathtub market could be categorised into three specifically : Prime, Standard and Value. The superior customers shopped in showrooms and gave importance to beauty. The standard insisted on performance and the value customers viewed cheaper products.
Further, based on installation of showers, customers can be labeled as shown.
Kotler et al points out that "By going after segments instead of the complete market, companies have a much better chance to deliver value to customers". (Chapter 9, Page 420). The next thing is to target the sections which Quartz can best fulfill and just do it on the market.
Aqualisa's best "target market" could be the top quality and standard category. As per the case study, Quartz has already established a good response in showrooms. People have loved its aesthetic. So, Aqualisa sales force has to concentrate in producing quartz in new showrooms. But to type in mainstream, superior customers alone will never be sufficient. Aqualisa must target the standard users as well. The features the standard customers look for in a shower particularly: performance and service, both were best satisfied by quartz. Moreover, Aqualisa was developing more additional features for quartz. So, it is very important that quartz gets into the mainstream faltering which such a great creativity may not reach a wide volume of consumers.
Unlike the other conventional showers which remember to warm-up and require adjustment every now and then, quartz comes with an automatic temperature control. Quartz has features which is lacking in its customer's product. Placing the quartz weighed against its competitor's on the market would improve its sales substantially.
Pricing is the main of the merchandise mix. Matching to Kotler, Amstrong, et al "To improve the pricing ability, many companies add value added strategies. Instead of cutting prices to complement competitors, they add value added services to distinguish their offers and so support higher prices". Rawlinson in the case analysis has given an option of reducing the price. But for a unique product like quartz price do not need to be reduced. Somewhat, quartz can be sold highlighting the price consumers can save on plumbing and excavation.
Kotler, Armstrong et al "Marketers can choose from two basic campaign mixture strategies - push promotion or pull promotion. "(Web page 715).
Kotler, Armstrong et al"A campaign strategy that demands using the sales team and trade campaign to push the product through channels. " The thrust strategy may be used to target consumers who take indie decision of the plumber. As per the case study, a good 27% buy their showers without consulting the plumber. Among these, the ratio which purchases its showers from showroom can be targeted by adopting this plan.
From exhibit 4 of the research study, we recognize that 83% of bathtub purchase decision in the united kingdom is done by plumbers. So marketing Quartz to the plumbers should be given goal. Rawlinson mentions in the case study that through the initial ending up in plumbers, plumbers got appreciated the product but it did not use sales. This is because plumbers are wary of innovation. The sales team should hold more fact-to-face meeting with the plumbers.
Meetings with plumbers who have already installed quartz could be arranged so that plumbers who are unwilling to set up Quartz can get confidence on the product. Quartz has other advantages as well. Expert plumbers could send their apprentice to repair Quartz shower. Grasp plumbers are scarcity in the united kingdom. The average holding out time for a plumber is reduced if they install quartz. When a plumber can mount 10 typical showers in 20 days and nights, he can mount 40 quartz in the same duration. The sales force has to focus on the plumbers with the great things about quartz and help the plumbers get over their fear of electric showers.
Kotler, Armstrong et al "Sales promotion includes a wide variety of promotion toold designed to stimulate prior or more powerful market response" (Webpage 799, Chapter 17). There are many types of sales campaign technique available according to Kotler, Armstrong et Al. The most appropriate among the methods for Quartz is "Point-of-Purchase Promotions". Kotler, Armstrong et al, "POP include exhibits and presentations that take place at the point of purchase or deal". If the customers at showroom receive a POP about Quartz, they'll be in a position to appreciate the merchandise which would use sales. Likewise, if the plumbers reach start to see the easy installation of Quartz, they will start using the product more.
Kotler, Armstrong et al "However great the look, however grand the plan, it is just a sale which makes a dream possible". (Webpage 779, Section 17) There is absolutely no point in having made this innovative product as Quartz if it generally does not reach a major number of people. Worries of plumber towards electric items didn't allow them to go ahead with the Quartz even though they appreciated its features. Aqualisa's sales team focused mainly only on preserving existing accounts and incredibly less time was spent on developing new customers. There was no follow-up on the plumber's conference after the the one that was organized in the original stage.
Rawlinson provides three options to boost sales. Targeting consumers straight will improve the advertising budget heavily. The profit reduces very much if huge money is allocated to that. Moreover, very few consumers make their own decisions on showers. So concentrating on the consumer immediately will give slow-moving returns which is not your best option at this time.
"Brands are considered the major enduring asset of your company, outlasting the company's specific products and facilities"(site 521, chapter 11). As rightly pointed out in the event review, if quartz gets into the D-I-Y market, it can't ever bring back its brand again. "Brands will be more than just names and icons" So concentrating on the D-I-Y market just because sales have to be improved upon is not the right option. Quartz may be sold more, but its section would change completely.
The third option is focusing on the developers. From the three this is an improved option but can only be second to the choice of targeting plumbers directly. Developer installation is merely 20% of the total market and additionally only programmers building luxury properties gone for costlier products. Changing the whole programmer section would devote some time and in both years timeframe hardly any sales would be made. Whereas the 3rd party plumbers comprised 54% of the full total market and concentrating on them would help improve sales. The strategies discussed above can help in getting the plumbers section.