Aqualisa Quartz:
Simply a Better Shower
By:
Marjan Hozjan
Ljubljana, February 2007
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1. Conduct a situation analysis
a) Customers (segmentation, characteristics)
According to the HBS case (p.2-3), shower buyers in the United Kingdom fall into one of three pricing segments: premium, standard and value segment. Consumers in the premium segment typically shopped in showrooms; they took for granted high performance and service, and for them style determined their selection. They bought in showrooms based on style, they assumed performance was assured. Consumers in the standard price range tended to emphasize performance and service; they usually relied on an independent plumber to recommend or select a product for them. Consumers in the value segment were primarily concerned with convenience and price; they liked to avoid solutions that required any excavation and tended to rely on an independent plumber in selecting a product. Value customers wanted to »Do-It-Yourself« (DIY); there were also property developers, but they considered Aqualisa products as premium or pricey, unless they were luxury builders. Developers also relied on independent plumbers.
b) Channel (products sold, primary customers, channel characteristics)
Showers in UK were sold through a variety of channels: trade shops, distributors, showrooms, and DIY outlets. Trade shops carried products across all available brands. Their primary customer was the plumber who was looking for reliable product availability rather than technical advice. Trade shops stock whatever there was demand for and Aqualisa was present in 40 percent of trade shops. If we look at the Table 3 in appendix, we can see that mixer shower sales represent almost half of the whole trade shop channel. Showrooms (2,000 in UK; Aqualisa in 25 percent) tended to be more high-end and were supplied by distributors. Showroom has consultants, which led consumers