Case study analysis
1. Situation Analysis
a. Customer segmentation and characteristics: * Value buyers: for them convenience and price play the most important role, they avoid excavation and tend to install the shower on their own. * Standard buyers emphasize performance and service, they rely on independent plumbers to recommend or even select a product for them. * Premium buyers mostly buy in showrooms, they need the highest performance and service, and also perceive style as very important * Developers are a special segment because they don’t buy showers for themselves; they are mostly price sensitive but don’t do installations on their own.
b. Channels of distribution: * Trade shops are mostly intended for plumbers, they have a broad selection of different products, especially the ones that plumbers often use. * Showrooms, where bathroom equipment is sold by “consultants” and is available on display, especially for more premium brands. * Do-it-yourself sheds, retail outlets with discount prices for value buyers; they currently don’t sell Aqualisa brand, only the cheaper Gainsborough brand from the same company. * Plumbers who like to stick to the reliable solution and have bad experience regarding new trends (from electronics in the 1980s).
c. Competition – key players
Only one company (Triton) succeeded in creating brand awareness on a consumer level, otherwise consumers don’t devote much attention to brands of their showers. Triton is also number one in sold units, the second is Aqualisa’s Gainsborough, followed by Mira (22 %) and Masco (7 %). All these manufacturers are offering all three types of showers whereas some smaller companies are specialized for only one kind of shower.
d. Company and market environment
Aqualisa has a strong reputation and is generally recognized as having quality showers of different price segments and great service. The company is stable