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Aqualisa Quartz: Simply a Better Shower

Problem Statement
Harry Rawlinson, the managing director of Aqualisa is faced with an interesting problem of selling the
Quartz showers. This shower is very innovative and solves problems of Plumber and end customer
beyond expectation. Rawlinson has the following questions to solve
(1) How to generate sales momentum?
(2) Was the problem that the Quartz priced too high? However he believes and he is reluctant to go the
discounted price route because his product is very niche.

Possible Alternatives
Rawlinson is debating on the following options:
(1) Targeting customers directly
(2) Targeting Do-It-Yourselfers
(3) Targeting Developers

Solution
We are proposing solutions where the major target audience is addressed.

Communicate Superior Value Proposition through better


advertisement
(1) The advertisement completely ignores the actual technical innovation (setting up of box remotely)
which should be directed at Plumbers as it is seen that 53% of purchase is either done by plumbers
or by customer's who take inputs from Plumbers. Half of the market remains un catered through this
advertisement.
(2) From a customer stand point, cost saving is not highlighted though the product is sold with a
premium. The cost comparison is as shown below
Traditional Shower vs Quartz

Cost of
Shower
Traditional 675
shower
(not in
low
segment)
Quartz
850

Installation Cost

Excavation Cost + Material Total Cost


Cost

640
100
1415
[ Cost of the labor= 40 per (assumption as the case study
hour multipled by 16 (for 2 did not mention a value)
days)]
160
0
[ Cost of the labor= 40 per
hour multipled by 4(for 1/2

1010

days)]

Strengthen the eco system - Wooing Plumbers!


Installation by independent plumbers in this business constitutes 53% of the market share (see
exhibit 5). It is very essential to concentrate on the current problems which the plumbers are facing
technically and psychologically.
(1) A bungled installation often required a second visit by the Plumber and is paid out of the plumbers
pocket.
(2) Plumbers distrusted innovation especially if it involves electronics.
Aqualisa should inform & educate plumbers that if there is a bungled installation, then the technician
from Aqualisa will fix the problem at the customer location and not the plumbers. The sales persons
should involve plumbers at different places and ensure that they get a chance to try out the
installation of Quartz (road show). The plumbers should also be given incentives in terms of branded
tool kit to increase the loyalty.

Company
Company needs to marginally reduce the sales of the existing product and increase the availability of
Quartz. This would help customers to look for other available products of Aqualisa. However, there is
a risk that the customer may switch to another company if a product is not available.
Some people at the company had an opinion that Aquavalve which is the bread and butter of
Aqualisa will eventually be replaced by Quartz. The case study gives a negative tone while
presenting this information. Pestell, the National Sales Manager of Aqualisa needs to evangelize that
this is not a replacement product but Quartz has additional advantages.
Company should take initiative to install Quartz in public places like hotels, swimming pools where
the people get an opportunity to understand the benefit of Quartz.
Company also needs to take initiative to create brand awareness at the consumer
level
Posted 9th May 2012 by - Neo