Nature of the Situation
Aqualisa, a U.K. shower manufacturer is having trouble selling their newly developed, technologically innovated Quartz shower product. The Quartz model addresses most, if not all, of the problems regarding U.K. showers. Aqualisa has not only improved the important issues of water pressure and temperature with their Quartz model, but they have also improved upon cosmetics, ease of use, and product quality. The Quartz is also easy to install compared to other models on the market. Aqualisa has come up with a very good product, but the shower is not selling at the rate that Aqualisa had hoped. Plumbers do not want to install it because it is electric, and consumers have not heard enough about it to tell the plumber that is what they want. Aqualisa is in a tough situation they have a great product, but they have no one to sell it to.
Decision to be Made
Aqualisa must decide how to generate more sales momentum for their Quartz product. Their current sales tactic of selling to distributors, trade shops, showrooms, developers, and plumbers is not working, as they are not seeing the sales volume they expected with such an innovative product. Aqualisa must come up with a better sales strategy quickly, as their patents will expire and competition will catch up with them within just a few years.
There are many alternatives that Rawlinson and Aqualisa can consider in order to improve sales momentum for their product. Several considerations should be: 1)Change marketing strategy to target consumers directly.
2)Change marketing strategy to target the Do-It-Yourself crowds. 3)Change marketing strategy to target developers.
4)Lower the price.
5)Let Quarts become a niche product, and concentrate sales on other products. 6)Change marketing strategy to target the plumbers/installers.
There are pros and cons to each alternative; Aqualisa must decide on the method that will...