Aqualisa Quartz 4
Case
Aqualisa Quartz: Simply a Better Shower
Introduction
Aqualisa is a U.K. shower manufacturer. Shower buyers in U.K. fall into 3 pricing segments: premium, standard and value. Premium segment consist of people who mainly shop in showrooms. Their focus is on great service and high performance. In standard segment, Customers rely on plumber recommendation and emphasize performance and service. Value segment are mainly customers who are primarily concerned with convenience and price. Thus, they like to avoid excavation and also tend to rely on independent plumber to select a product. The company currently has 3 brands: Aqualisa, Gainsborough, and ShowerMax to satisfy needs from different segments. The company’s main three channels of distribution are Trade shops, Showrooms and DIY Sheds.
In order to create innovations, Aqualisa developed the Quartz, a breakthrough in technology with many benefits: easy and fast installment, efficient and reliable water pressure and temperature, ease of use, and no bulky box. Consumers loved the new shower during field trails. Reviewers have also been positive about the product. However, Aqualisa did not sell as many as they thought they would. The breakthrough in technology did not bring a breakthrough in sales and profits. How to solve this problem had become a critical issue for the company.
The challenges
Aqualisa spent 3 years and 5.8 million Euros in developing the Quartz. Now they have an innovative product which are superior to other showers in the market and can satisfy consumers’ needs. The product is worth the investment since the Quartz gives Aqualisa a competitive advantage over competitors. The product development is successfully done. Now the challenge lies in marketing strategy. To solve the problem, we need to know the reasons behind the Quartz’ poor initial sales results. The following are the main reasons why the product is not selling.
1. The plumbers are wary of innovation, particularly
Aqualisa Quartz: Simply a Better Shower
Introduction
Aqualisa is a U.K. shower manufacturer. Shower buyers in U.K. fall into 3 pricing segments: premium, standard and value. Premium segment consist of people who mainly shop in showrooms. Their focus is on great service and high performance. In standard segment, Customers rely on plumber recommendation and emphasize performance and service. Value segment are mainly customers who are primarily concerned with convenience and price. Thus, they like to avoid excavation and also tend to rely on independent plumber to select a product. The company currently has 3 brands: Aqualisa, Gainsborough, and ShowerMax to satisfy needs from different segments. The company’s main three channels of distribution are Trade shops, Showrooms and DIY Sheds.
In order to create innovations, Aqualisa developed the Quartz, a breakthrough in technology with many benefits: easy and fast installment, efficient and reliable water pressure and temperature, ease of use, and no bulky box. Consumers loved the new shower during field trails. Reviewers have also been positive about the product. However, Aqualisa did not sell as many as they thought they would. The breakthrough in technology did not bring a breakthrough in sales and profits. How to solve this problem had become a critical issue for the company.
The challenges
Aqualisa spent 3 years and 5.8 million Euros in developing the Quartz. Now they have an innovative product which are superior to other showers in the market and can satisfy consumers’ needs. The product is worth the investment since the Quartz gives Aqualisa a competitive advantage over competitors. The product development is successfully done. Now the challenge lies in marketing strategy. To solve the problem, we need to know the reasons behind the Quartz’ poor initial sales results. The following are the main reasons why the product is not selling.
1. The plumbers are wary of innovation, particularly
References: 1. Aqualisa Quartz: Simply a Better Shower. Harvard Business school case: 9-502-030 2. Wikipedia (2009): Brand recognition http://en.wikipedia.org/wiki/Brand_recognition 3. A Framework for Marketing Management (3rd Edition): Philip Kotler, Kevin Lane Keller