Case Analysis Aqualisa

Aqualisa company overview Aqualisa has always had a strong reputation in the U.K. shower market, with the company being generally recognized as having top quality showers, a premium brand and great service. It was a highly profitable company and sat quite comfortably with its niche in the market. Harry Rawlinson joined the company in 1998 and believed it was vulnerable for different reasons. In the year 2000, Aqualisa had 18.1% of the market share in the shower industry. Aqualisa sold electric showers mostly under a separate brand name “Gainsborough”, which was available in 70% of DIY stores. Three product ranges are available under this brand, which were value, standard and premium. The Gainsborough range accounts for 11.3% of the total market share within the shower industry. This brand is not available in trade shops or showrooms. Aqualisa’s product range has 9 styles and accounts for 6.8% of the entire shower industry market share. This figure does not include the additional shares acquired by the company through the introduction of the Quartz range. Aqualisa products were available through 25% of showrooms in the UK and 40% of trade shops.

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Product- the Aqualisa Quartz shower was a one touch control shower that provided efficient and reliable water pressure and temperature. The Quartz shower coincided with the consumers’ needs and wants and created the wow factor amongst them. It took less than half a day to install rather than a two day installation with the conventional shower. Consumers can either but the standard Quartz or the Quartz pumped edition which comes with a pump which is easily installed anywhere near a hot and cold water connection.

Price- the Quartz standard shower costs €175 to make and is sold at a retail price of €850, bringing in a margin of €275 after the manufacturer selling price. The Quartz pumped edition costs €230 to make and sells at a retail price of €1080, bringing in a margin of €345 after the manufacturing