Aqualisa Case

Aqualisa had launched the Quartz shower, significant product innovation in the UK shower market in terms of water pressure, ease of installation, use, and design. But this new product is not selling well enough. I will make some analysis in order to understand the situation and make some recommendation for Harry Rawlinson on marketing strategy and ways to generate sales for the Quartz products. 1. What is the Aqualisa Quartz value proposition to plumbers, to consumers? Quartz offers a technological change to enhanced value to consumers and plumbers. Aqualisa has been customer-focused, making efforts to understand what consumers want and upgrade its product accordingly. Aqualisa Quartz value proposition to plumbers is following: easy to install, more profitable, faster to install. It takes ½ day to install Quatrz so plumbers have an opportunity to install more showers and make more money. Aqualisa Quartz value proposition to consumers is following: efficient, reliable water pressure and temperature, easy to use (one touch control with red light indicator), easy to install for do-it-yourself segment. Thus, Quartz offers a breakthrough product that delivers superior value to plumbers and consumers. But Aqualisa has failed to have high sales volume since its launch. 2. Why is the Quartz shower not selling? I believe there are two main reasons which are impeding Aqualisa’s ability to realize the expected sales volume from its Quartz shower. The first reason is the blockage in the channels. There were total sales of 1,800,000 (1,000,000 units of electronic showers+550,000 units of mixer shower+150,000 units of power showers) showers in the UK in 2000. Distribution through the trade shops is 840,000 showers (330,000+400,000+110,000) or 46,6 % of the total market (840,000/1,800,000). Distribution through showrooms is 145,000 showers (55,000+70,000+20,000) or 8 % of the total market (145,000/1,800,000). Distribution through