Customers
Shower buyers fall in three pricing segments: premium, standard and value. First, premium segment is conducted of people who mainly shop in showrooms. Their focus is on great service and high performance. Second segment is called standard. Customers in this segment rely on plumber recommendation and emphasize performance and service. Value segment conducts mainly customers who are primarily concerned with convenience and price. Thus, they like to avoid excavation and also tend to rely on independent plumber in selecting a product. Value segment falls in with DIY market, where people tend to buy in large retail shops, interested mainly in inexpensive models that are easy to install and they are also strongly price sensitive.
Channel
Main three channels of distribution are Trade shops, Showrooms and DIY Sheds.
It is evident that Do-it-Yourself Sheds are dominant in sales for Electric Showers (550.000 units) , which are cheap and easy to install and designed for mass-market. Followed by Mixer Showers (80.000 units) and Power Showers (20.000 units). This represents buyers of lower pricing segment.
Showrooms tend to be for more high end products and customers with higher income. Here the best selling products are Mixer Showers (70.000 units), followed by Electric Showers (55.000 units) and Power Showers (20.000 units).
Trade Shops are places most applicable for plumbers, where reliable product availability is more important then technical advice. Mixer Showers are here also the best selling product (440.000 units), followed by Electric Showers (330.000 units) and Power Showers (110.000 units).
Competition
UK Marketshare Data shows us that UK has five players which sell more then 100.000 units per year (data for year 2000) on the showers market. These are: Triton (545.500 units), Mira (390.000 units), Ganiesborough (203.500 units), Aqualisa (122.000 units) and Masco (120.000 units). If we focus on Electric Showers, Gainesborough (Aqualisa brand) is with 180.000 number of units sold on the 2nd place, behind Triton (479.000 units). In Mixer Showers category, Aqualisa is also second with 94.000 units (behind brand Mira with 200.000 units sold in year 2000).
Company & market environment
UK shower market had (has?) a big potential, since only 60 percent haven’t had a shower. 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.
Aqualisa’s reputation was always strong in UK.
In conclusion, we would attract about 458 estimated customers a year for our spa service, and we will use different media in our campaign to target different segments based on their geographic, demographic, and psychographic factors. By using social media advertising campaign, we could measure how many response rate we can get and to set up a clear objectives for our spa service. We try to differentiate ourselves with a lower price while providing high quality service as we previously stated in our objectives. We will try to maximize our profits and minimize the total of our advertising campaign cost, in order to have a high ROI to achieve our goal.
Home Depot company offer a wide range of merchandise and services, and serve three primary customer groups: do-it-yourself customers, do-it-for-me customers and professional customers. A classic Home Depot store stocks approximately 40,000 to 50,000 product items, including variations in color and size. Major product groups include building materials, lumber plumbing, electrical and kitchen; hardware and seasonal, and paint, flooring and wall coverings. To balance the national brand name products it offers, the Company has formed strategic associations with vendor partners to market products under brand names that are only offered through The Home Depot. “As of fiscal year-end 2001, the Company offered products under more than 30 proprietary and other exclusive brands, including Thomasville kitchen and bathroom cabinets; RIDGID power tools; Behr Premium Plus paint; Mill's Pride cabinets; GE SmartWater water heaters, and Vigoro fertilizer.” ("The Home Depot", 2004)
In liasion, the company’s products include services for home improvement professionals and contractors. This marketing mix from Home Depot highlights the quality of service they wish to provide. On the other hand, the majority of the products at the firm’s stores are from third parties, such as equipment manufacturers. Home Depot’s multi-faceted product mix include building materials, lawn and garden products, and home appliances, among other things. Kitchen and garden products accounted for nearly 27% of revenues in fiscal 2014 making them the best-grossing product categories. (Exhibit*- Revenue by product
"The Home Depot TV Commercial, 'The Bath You Want'" ISpot.tv. N.p., n.d. Web. 19 Apr. 2014.
Home Depot operates in the home improvement retail industry that comprises of retailer that sell appliances, lumber, building material, kitten fittings and other home improvement products aimed at improving existing structures. Companies functioning in the home improvement industry buy products from retailer and manufacturer based all over the world, and then put those products for sale on the market to three types of buyers, generally characterized as: do-it-for-me, do-it-yourself, and professional customers. The home improvement retail industry is well established industry and is highly attractive and there is high level of price competition among the key players of the industry as the products lines are all the same.
Market Analysis Product Design Product Design Selection Detailed Product Design Build Prototypes Field Test Prototypes Finalized Product Design Final Manufacturing Process Order Production Equipment Install Production Equipment Celebrate
Miazga, Mike. "Changing with the Times." Plumbing & Mechanical June 2012: 34. Home Improvement Collection. Web. 4 Mar. 2014.
Part of the demographic of shoppers in Home Depot retail outlets need an item or product immediately, and that brand recognition and in stock purchase option is vital to maintaining the competitive advantage of the organization.
The plumbers is simply where the target market is for the Quartz showers, the data states that with mixer showers, 20% are influenced by the plumber, not the brand, 28% of consumers takes the plumber’s advice on the brand and type of shower they should use, and 25% is just the plumber making the decision and not taking any advice from the person they are doing the job for. That is 73% of the market, for mixer showers, that involves the plumber.
Costumers: Broadly speaking the customers in the individual market segment have one common feature; they could identify problems in current showers which were poor pressure, varying temperature and breaking down. Within this individual customer category there are sub-segments based on varying needs.
My Tia was lucky enough to have a friendly neighbor that let her use her water hose a few times a week. In Mexico you are considered wealthy if you have a washing machine. But of course my Tia did not have one. What she has is something called a pila. A pila is made out of cement and has three sections one section is like a tank that holds a lot of water and the other two sections are for washing your clothes by hand. My Tia would use her hose two to three times a week, to get fresh water for the pila. We used that water not just for laundry but also for washing dishes showering and anything else we needed. At home when you want to shower what do you do? Just turn the nozzle and wait for the water to get warm right? Well at my Tia’s it was a little more complex. We were only able to use no more than two buckets of water each. And if you want to take a hot shower you would have to take two buckets of water to the backyard, start a fire, and boil it. You have to make sure that those two buckets last through the entire shower. That’s much easier said than
For the full-service wash model, they too have to be in tune with cheaper and less service options as in challenging economies, their services become more difficult to justify for the consumer who is worried about income. Competitive rivalry, threat of substitution, and threat of new entry are the forces that the full-service model is at most risk with. Poor service reputation and lack of a strong value proposition puts this car wash model at serious risk of substitution. The treat of new entry for both business models can be significant as there are many new innovations in car wash businesses such as mobile wash stations and new and used car dealerships that are adding this business in what has been a very difficult car economy.
The above mentioned total budget competitors compete with personal water filtration devices because they rival with a consumers daily life necessities.
Consumer Decision Making Process A key factor in successfully marketing new/existing products or implementing a product Extension is a thorough understanding of the motivation, learning, memory, and decision Processes that influence consumers purchasing behavior. Consumer purchasing behavior theories have found their way into managerial decision making to help companies more effectively develop and launch new products, segment the market, determine market entrance and in brand management. Therefore, a better understanding of how consumers decide what to purchase is critical to the success of a product. There are numerous theories and models describing the consumer purchasing decision process.
In developing countries, passing along technical information for maintaining pumps and sanitizing the local water supply will help not only relieve the burden of responsibility, but allow them to maintain a constant supply. Factories and cleaning facilities establish jobs and financial stability when in the right hands. Knowledge of finances and business will help establish revenue and economic stimulation, thus allowing for better technology for survival in the future. Technological innovations in developed and developing countries will allow war-torn states to have more access to water than previously known.... ...