Aqualisa Quartz Presentation

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Marketing Management Case Study May 2, 2013 Prof. Michele Costabile



UK MARKET FOR SHOWERS




Environment Clustering








THE PRODUCT SWOT ANALYSIS BRAND MANAGEMENT PRICING




Cost comparable Pricing strategy

   

PUSH STRATEGY


Which advantages for the intermediaries?



PRODUCT PROFITABILITY: BREAK EVEN POINT VALUE PROPOSITION CHANNEL AND DISTRIBUTION CONCLUSIONS

 Low

diffusion of showers/high diffusion of bathtube  Old equipments with temperature and pressure problems  Low product involvement  Low brand awareness (Triton excluded)

 Key
      

role of plumbers

10,000 Master plumbers in UK SHORTAGE Long training 40-50 showers installation per year Labour cost: €40-€80 per hour Warried about innovation Plumbers advises about showers influence the 70% of the market

 Value
 

segment

Price sensitive Influenced by plumbers

 Standard segment
    

Performance and service sensitive Influenced by plumbers Style sensitive Showrooms buyer Influenced by showrooms consultants

 Developers  Large channel  Price sensitive  Different needs: in new buildings there aren’t pressure/temperature problems

 Do-it-yourself
 

 Premium segment

Price sensitive Need easy installation

Plumbers: the Infomediary

Product  Innovative for the market  Solution of diffuse problems: low pressure, instable temperatures and endurance  Easy to install. No excavation.  Easy to use  Energy savings  Time savings  Style

Although company performed a DISTINCTIVE and RELEVANT product both for the plumbers and for the consumers, still not well PERCEIVED

What is needed? A shift in the marketing strategy

Strenghts High quality – high reputation High margins 50% - 60%

Weaknesses No brand awareness Poor sales force (90% time CRM)

No perceived product quality

Opportunities
50% market sales for replacement

Threats

Shortage of plumbers
Positive response on product tested

Low consumer involvement
Competition (exp. Triton)

Other future organic growth option

Indipendent Plumbers: «Infomediary»
Plumbers reluctancy to innovation

MAIN PROBLEMS
 Lack

of brand awareness

 Plumbers

diffidence

 Mission :

 Design a

Communicate the company position in the market  Position in big retailers shops  Improve the communication with the decoration shops

marketing strategy for the brand  Position the brand in the ‘Top of Mind’ via promotion and advertisement  Incentives for the plumbers with promotions for using our brand

 Traditional showers

 Aqualisa quartz

Price on average: 500  Labour costs on avarage: € 60 per hour  Installation time: 16 h  Installation costs €60*16=960  Total cost: €500+€960= €1460 

Price on average: 950  Labour costs on average: €60 per hour  Installation time: 4 h  Installation cost: €60*4=240  Total cost: €950+€240=€1190 

Economic Value Propostion for the final customer: €1460 - €1190= €270

Lower installation cost and time is Aqualisa Quartz major competitive advantage Final customer saving: €1460 - €1190= €270  Moreover, the final customer will save 1 day and half of time (i.e. job implications)  No excavation and no mess BETTER PRODUCT, BETTER SERVICE, GOOD PRICE! WHICH STRATEGY? • Communicate the advantages! HOW TO DO IT? • Increase the price and use the margin to develop the communication 

The firm should decide for a push strategy, inducing the intermediaries to promote and sell the product to end users.

Market Principal Intermediary: Plumbers
Key actions:  Specific training sessions for plumbers  Organization of a convention addressed to master plumbers, to show the product and how install it  Furniture of trial products  System of incentives funded by new margins coming from price increase Other Intermediaries: Showrooms’ consultants and Interior designers

System of incentives (monetary and...
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