Marketing - Aqualisa Case

Topics: Marketing, Plumbing, Strategic management Pages: 4 (1187 words) Published: October 31, 2010
Aqualisa Quartz case|
Marketing Management|


Executive Summary
After having spent €5.8million in research and development on a very innovative product (the Aqualisa Quartz shower system), we have still not been able to create an impactful launch. The sales average only 15 units a day in a market place where 100 to 200 unit sales a day are needed to break through to mainstream. The key reasons for the poor sales are: * Limited support from the plumbers on advising consumers. The plumbers play a major role in influencing or recommending to consumers the purchasing choices; representing 48% of the mixer shower market. * Limited purchases by the plumbers. At approximately 54% of the mixer shower market installation, the plumbers represent the largest single purchasing group in the market place via trade shop purchases. * Our company’s sales force are focused on maintenance and service (90% of their time) as opposed to selling the plumbers on the advantages for them and consumers of the new innovative product. The way forward therefore is for us to focus our sales and marketing efforts on plumbers as the key stakeholders of the shower business. The recommendation is as follows: * Focus sales team to spend the majority of its time on educating all existing plumbers contacts on the new Aqualisa Quartz and thereby create a critical mass of converts that will spread the news advantages through a word of mouth to other plumbers * Create a sense of comfort regarding converting to our new system, removing the perceived risk via a guarantee offer scheme. * Aim for the Quartz to be the preferred shower brand throughout aiming for the total shower market and revenue potential of €163.8million (NPV) over 3 years. Situational analysis

Our company is number three in the shower business with 18% market share and the sales staff spend 90% of their time servicing and maintaining accounts. The Aqualisa brand however has only...
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