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Question 1: 5C analysis of Aqualisa
In the 5 C analysis for the company which is being discussed in this case study following are the points which will be looked into:
- Company (Context/market analysis for the company)
- Channel (Collaborators)
- Competitors and competitive landscape
1. Company (Context/market analysis for the company)
In the context of the company or the current market dynamics following are the points which are important to be mentioned:
- The shower market of the UK is characterized by a significant level of potential. This is due to the fact that as low as 60 percent of all the households are equipped with showers. Many homes still had archaic, gravity based plumbing and cold water tank or cistern on the roof. Separate boiler and cylinder were needed to store hot water in a nearby airing cupboard. Sound like a good opportunity.
- Reputation of the brand Aqualisa’s has been strong always in the UK. The company is perceived as a manufacturer and seller of showers oftop quality with premium brand quality as well as product quality.
In this section the various details and the characteristics of the channels which are used by the company will be given. The three main channels which are there for the distribution of the company include trade shops, showrooms as well as DIY sheds.
- Trade Shops are the shops in which the plumbers, who have been identified one of the most important resellers for the industry buy their products from. These shops meant for the plumbers is more hinged on the availability of the reliable productsin comparison to the technical advice. In this channel for the company the type of showers which are bestselling is mixer showers with as much as 440,000 units.The other two types of showers which are sold in these stores include the electric showers with 330.000 unitsand power showers with 110.000 units.
- . For this type of stores the bestselling product ismixer showers with 70,000 units. This is then followed by electric showers with 55,000 unitsand the power showers with 20,000 units.
- The showrooms have the high end products for the high end customers with higher level of income and thus purchasing power The Do-it-Yourself Sheds are meant for the low income group consumers and hence the cheaper electric showers is the highest selling product in this stores with 550.000 units sold. These electric showers are not only cheap but also is very easy to install compared to the other types and hence is meant for the massmarket. The sales of the other two types of showers including the mixer showers and the power showers Is significantly lower compared to the electric showers. The sales of the mixer showers 80.000 unitsand the power showers is 20.000 units. This represents buyers of lower pricing segment.
In this section the various details and the characteristics of the existing as well as the prospective consumers for the company will be given. Following are the same:
- The customers of the shower in the UK have been broadly categorized into three types of buyers basis their pricing segments. These are:
- Premium buyers,
- Standard buyers, and
- Value buyers.
- The premium segment includes the people with higher purchasing power and tend to shop only from the showrooms for the showers. The requirement of this set of customers is heavily hinged on high performance as well as great service.
- The standard segment comprises of the customers who have moderate purchasing power and are highly reliant on the recommendations made by the plumbers. Their requirementis underlined by service as well as performance.
- The third segment which is the value segment customers have low purchasing power and these customers are mainly concerned with price as well asconvenience. Hence this set of consumers avoid any excavation requirements in addition torelying highly on independent plumbersfor the salvation of the products. Customers belonging to the value segment also a significant subset of the DIY market in which the customers buy inexpensive models from the large retail shop. They look for products which are not difficult to install in addition to being strongly price sensitive.
4. Competitors and competitive landscape
To understand this section it is important that a look is taken at the U.K. Market Share Data in terms of units sold in the year 2000. Following is the same:
Total Units Sold
Total Units Sold
- The data shows that the showers industry of the UK has 5 brands with more than 100,000 units’sale per year. There are multiple other brands with very small market share and can be ignored for the purpose of this study.
- The largest brands in the market include Triton, Mira, Ganiesborough, Aqualisa and Masco.
- In terms of the low end electric showers, the brand Triton is runaway market leader with salesof 479,000 units. Aqualisa brand Ganiesborough is distant second with 180,000 sales.Triton's simple strategy was to create awareness at consumer level. This strategy gave them an edge and as a result more trust was developed in the product.
- In Mixer Showers category, Aqualisa is second with 94.000 units (behind brand Mira with 200.000 units sold in year 2000).
It has been shown by the market research that the consumers in the industry have a requirement of a shower which is stylish and looks great, is easy to use as well as can deliver good pressure atstable temperatures. This is influencing the climate of the market significantly. Also the requirement of the plumbers, who are the most significant resellers in the market have requirement of the showerswhich can be installed easily and has a lower probability of breaking down or requiring servicing from their end. In view of the fact that the product which is being discussed here already has these qualities it ca be confirmed that with right promotion mix as well as pricing strategy along with targeted advertisementsand sales strategies the same will perform well.
Question 2: Quartz shower value (relative to consumers)
For the purpose of the discussion of this section following will be the table which will be required:
Aquaforce 1.0/1.5 Bar
Aquaforce 2.0/3.0 Bar
From this table it can be deduced that Aqualisa 609 mixer shower will have a cost price of € 715. However adding the price of Aquaforce pump will add to the cost an amount of € 445. This leads to a final price of € 1160 for the Aqualisa 609 mixer shower with pump.
As far as the Quartz shower with pump is concerned the price is € 850.
Question 3: Quartz shower value (relative to Plumbers)
Plumbersare economically better off in case they are installing Quartz shower.
As we have already seen the Quartz has a significantly lower price which the plumber can add to the mark-up which they charge to the consumers.
Also installing a Quartz is easier and quicker and takes half a day and does not require excavation, which takes 2 days. Hence it can be confirmed that Quartz installing takes less than 25 percent of the time and thus cost for the plumber and thus this should be cheaper for the lumbers as well.
Question 4: Who should AqualisaTarget?
As per the logical approach developed from the case study it can be said that the Plumbers can be the most potent market for the developing further sales of Quartz. In view of the fact that these people have the influencing power on the bigger group of consumers, through influencing them the company can drive its sales. However it can be seen that the plumbers are not quite open to the innovation and are reluctant to switch brands. Hence it will be required for the brand to incest more for encouraging the plumbers to use Quartz shower by showing the economic benefit of the same for them. Through achieving this not only the company can avail of the word of mouth marketing but also can develop a set of plumbers who will be loyal to the product and keep on suggesting the same for their end users. Hence the primary focus of the brand has to be on the trade shops from which the plumbers buy most frequently. Trade Shops should demonstrate the simplicity of installation, economic value of the product. It will be necessary to offer guarantee on the product as well as refund on any repair costs for the plumbers. For the reason that the plumbers usually pay repair costs from their own pockets, this will decrease their resistance to the product. Also an informational brochure giving the costs and installation time comparisons between various products on the market can be circulated.