Aqualisa Quartz by Siren Sungkar Syndicate

1. Aqualisa Quartz
simply a better shower
Wisnumurti Rahardjo
Anggi Fitrining Tyas
Lukman Kresno Oktavianto
Yohanes De Deo Tedo
Ronald Bagus Putra

2. SUPPORTED BY
PINISI BACKPACKER HOSTEL
JL. Musaen 192/6A
BANDUNG
INDONESIA
+6222-86868610

3. SUPPORTED BY
PINISI RELAXATION
Jl. Halmahera no. 2 Bandung 0224240065
Jl. Kenari no. 14 Sukabumi 0266231016

4. SUPPORTED BY
ORANGE BUTTON
Jl. Baladewa Asri no. 14 Bandung - Indonesia
orangebutton@pinisirelaxation.com

5. Background
Aqualisa innovate a
breakthrough product
(Quartz) to the market but
it was unsuccessful in the
market because of
Plumber’s Electronic
Syndrome.

7. The U.K. Shower Market
Electric Showers
•heating elements instantaneously heated the water to the
required temperature, eliminating the need for a boiler to store
hot water.
•convenient for small bathrooms, the electrical components were
usually mounted in a bulky white box that was visible in the
shower stall.
•did nothing to address the poor water flow of many showers in
U.K. homes,
•sold mostly under a separate brand name, the ‘Gainsborough’
brand.

8. Mixer Shower Valves
•Valves came in two types :
•thermostatic  controlled temperature automatically
•manual  manually find the right temperature
•Installing a mixer valve meant excavating the bathroom wall.
•Add booster pump to boost water pressure (cost € 350 to € 600)
•Core Product: Aquavalve609 (thermostatic); Cost : € 155 Price : € 675 to €
750;
• Sales: 60,000 units per year; Image : high-quality and reliable

9. •Valves came in two types :
•thermostatic  controlled temperature automatically
•manual  manually find the right temperature
•Installing a mixer valve meant excavating the bathroom wall.
•Add booster pump to boost water pressure (cost € 350 to € 600)
•Core Product: Aquavalve609 (thermostatic); Cost : € 155 Price : € 675 to €
750;
• Sales: 60,000 units per year; Image : high-quality and reliable
Integral Power Showers

10. PremiumSegmentConsumer:
- shopped in showrooms
- Granted high performance and service
- Style determined selection
Do-it-yourselfersSegment:
- shopped at large retail outlets
- Interested in inexpensive models that were easy to
install, even though bulky and unattractive
- Overwhelming choice : Electric showers
- Popular among landlords & apartement dwellers
Standardprice Segment :
- emphasize performance and service
- Product selection rely on plumber
Pricing Segment
Value Segment :
- concern with convenience and price
- Avoid solutions that required any excavation
- Product selection rely on plumber
- Concerned with convenience and price

11. Product & Price

12. Distribution

13. U.K. Market Share Data
30%
22%11%
7%
7%
3%
2%
1% 1%
1%
15%
Chart Title
Triton Mira Gainsborough Aqualisa
Masco Ideal Standard Heatrae Sadia Bristan
Grohe Hansgrohe Others

15. 44%
25%
6%
15%
10%
Sales
Replacement Shower
New penetration
commercial
New Build
Second Sgower
 The principle reason for consumer to install
a shower is to replace the old shower into
new ones (44% of customers).
 There are only 6% of consumer who has a
commercial purpose in installing a shower.

16. The Quartz Shower Valve

17. The are 2 versions:
 The Quartz Standard Shower
 The Quartz Pumped Shower
With Quartz technology:
– Installation time of a half-day
– Plumbers were finding that the install
was so straightforward
– The Quartz shower provided efficient
and reliable water pressure and
temperature – “one touch” control
– the temperature control is automatic
To install the Quartz shower:
– the plumber had to identify a physical
space to accommodate the remote
processor
– The processor contained the
thermostatic mixing valve and pump
– The device could be mounted
horizontally, vertically, or on its side,
depending on space constraints

18. VALUE
PLUMBERS
Easy to install
More profitable – able to do more installation
Take 0.5 day to install which is only 25% of previous times
Even apprentice can do the installation
CONSUMERS
Efficient and reliable water pressure and temperature
Safe to use for kids and elder people
One touch control with red light indicator
Much easier to install for DIY sector
Excellent design and aesthetics, which increases
ownership pride
Quartz Value Proposition

19. Individual Developers Plumbers
Premium
&Standard
Diyers Price Sensitive Don’t like
innovation
Low brand
awareness
Change premium
brand preception
Small market Costly to
convert
Independent of
plumber
influence
Large market
Influence plumber
Largest market
share
Premium brand
recognition
Cheaper Strong
influence to
customer
C
O
S
T
B
E
N
E
F
I
T
Cost and Benefit

20. PROBLEM
• HIGH INNOVATION & TECHNOLOGY but
LOW IN SALES
•Rawlinson should choose appropriate
marketing strategy to overcome the
problem. The choice are :
- Targeting customer directly
- Targeting developers
- Targeting DIY

21. MARKET ANALYSIS

22. 5C
Company
Customer
CollaboratorContext
Competitor

23. • UK shower manufacture
• Have breakthrough in shower
technology by producing
“The Quartz”
• Have strong reputation in UK
shower market.
• Producing premium product in
shower market.
COMPANY

24. Aqualisa using the working divisions/department
based. Consist of: Marketing & Sales, Finance,
Technical, and Operations.
Organizational Chart

25. Customer
• Individuals
• DIYers
• Developers
• Plumbers
Collaborator
• Outlet
• Developers
• Trade shops
• Showrooms
• Distributors
Context
• In UK, everyone
had a bathtub,
only 60% had
showers.
• It is rare an
innovation in
shower
production.

26. 30%
22%11%
7%
7%
3%
2% 1%
1%
1% 15%
UK Market Share Data : Units Sold (2000)
Total Unit Sold by Brand
Triton Mira Gainsborough Aqualisa
Masco Ideal Standard Heatrae Sadia Bristan
Grohe Hansgrohe Others
 Triton has the biggest market
share (30%).
 Aqualisa and Gainsborough
market share is the 3rd largest
(18%).
 For the Electric Showers
product, Aqualisa and
Gainsborough has 2nd biggest
market share (16.9%) .

28. Product Price Place / Distribution Promotion
Showers with Various
categories.
Type of Shower :
- Electric Shower
- Mixer Shower
- Power Shower
High (premium
prices)
Standard
Middle-Low
Trade Shop
Distributor
Showrooms
DIY Outlets
Advertisement
(Brochure)
Web

29. Segmenting
• UK Niche Market Shower
Targeting
• Direct consumer
• DIY market
• Developers
Positioning
• Leading in Shower Technology that have top quality
showe, premium brand, and great service

30. Strength
• Strong reputation in the UK
• shower market.
• High Market share
• High Quality Product
• Easy to install
• High innovation in technology
Weakness
• Low sale in Trade shop and
Showrooms.
• Expensive brands image
• 10% of Aqualisa is defected.
• Lacked the ability to relate to end
users.
Opportunity
• Typically low pressure and
• fluctuations in temperature of UK
shower valves.
• High demand of UK market
• Rare real breakthrough in the shower
market.
Threat
• Plumbers loyal to single brand and
distrusted innovation.
• Other companies were catching up to
Aqualisa product quality.
• Dependency of Consumer to the
plumbers.
SWOT

32. •Quart stand for Premium segment with price €850 and
€1,080.
• Quart standard and pump provide the biggest margin
than other models.

33. Behavioral Analysis

34. Consumers
Consumer doesn’t like!
•Poor Pressure
•Varying Temperature
•Shower broke down or “went wrong”
hard-to-turn valves, leaky seals, and worn-out
showers. Because of that, almost half the U.K.
shower market consisted of sales of replacement
showers.
•Consumers were generally uninformed about
showers.
•little understanding of product
options
•Brand awareness was low;
•Prices to consumers usually lump
sums and unaware how costs broke
down (labor, material, excavation,
etc).

35. • Most developers did not worry about pressure problems because new
homes were almost have high-pressure systems.
• faced a different set of issues, preferring reliable, nice-looking products
that could work in multiple settings.
• price-sensitive except of luxury builders
• Developers usually had relationships with independent plumbers.
• Aqualisa sold to developers under its ShowerMax brand, which was
available only through specialist contract outlets.
• technology had been redesigned, rebranded, and optimized for
developers specific needs.
• ShowerMax could deliver a high-pressure shower withAquavalve
technology at a significantly lower cost.
Developer

36. Plumbers

37. • The most installation
method of mixer
shower is by
independent plumber
which is 54% of all.
• While the installation by
showroom and
developer is 20% each.
• The smallest percentage
is the commercial
installation which is
only 6%.
54%
20%
20%
6%
by indeoendent
plumber
by developer
installation for
new home build
by showroom
commercial
installation

38.  Most consumer, selects Mixer
Shower by taking plumber’s advice on
type and brand of shower which is
28%.
 While 20% of consumer are
selecting only type of shower – (not
the brand), that influenced by the
plumber.
28%
27%
25%
20%
takes plumber's
advice on type and
brand
consumer select
type and brand
alone
plumber select type
and brand alone
plumber influences
type of shower, not
brand

39. Type of Influence
INFORMATIONAL

40. Consumer Motivation & Value
Needs
(Shower)
Consumer Wants
(lookes great, delivery good
preassure, stable
temperature, easy to use,
didn’t break down)
Plumber Wants
(easy to install, with a
guarantee not break down or
requiring service)

41. Latent & Manifest Motive
Purchase a
SHOWER
Premium
brand makes
me more
prestiges
The plumber
suggest me to buy
that brand and
that type
It’s look great , easy
to use, good
pressure, stable
temperature,
didn’t break down

42. Cons
• ‘bet the company’
kind of product
• Cost about € 3 to 4
million over 2
years
• tough to justify a
high-risk, high-
reward strategy
when company
results were
already healthy
Pro
• Quartz’s superior
value proposition
so possible to
charge a premium
for this product.
• The Quartz is so
easy to install.
• Currently selling
its Gainsborough
in this market
• Push the product,
avoiding the need
for expensive
consumer
advertising Cons
• associating
premium brand
with discount
channel
Pro
• Large-volume
channel.
• force plumbers
to get familiar
with our product
Cons
• Time lag before showers
reach consumers through
this route.
• Developers perceived
products to be premium
brands.
• Quartz under price was a
breakthrough innovation.
Pro
• Triton Has Proven that it can be
done
• Many Problems reaching the
plumbers

43. • The cause of quartz failure is the
resistance from plumbers. With the
analysis of circumference, they should
: ‘Targeting Consumers Directly’.
- Plumbers
 shoot the trade shop
 product presentation (installation,
warranty) to the plumber community
 give some incentives
(if they buy in a big mount)
- Consumer
 Bring the Brand experience to
customer through its marketing
activities, so that customer can feel
the simplicity of Quartz shower.
- Developer
 make a contract
 give some incentives