Andi Ahmad Fauzan

29115661

Aqualisa Quartz Case Analysis

1. Background of the case
Unsuccesful in the market
Plumbers Technology Syndrome.
Three years of research and development
High technology and design which invested 5.6 million Euros
2. Product Information

Electric Shower
heating elements instantaneously heated the water to the required temperature, eliminating the
need for a boiler to store hot water.
convenient for small bathrooms, the electrical components were usually mounted in a bulky
white box that was visible in the shower stall.
did nothing to address the poor water flow of many showers in U.K. homes,
sold mostly under a separate brand name, the Gainsborough brand.
Mixer Shower
Valves came in two types :
o thermostatic : controlled temperature automatically
o manual : manually find the right temperature
Installing a mixer valve meant excavating the bathroom wall.
Add booster pump to boost water pressure (cost 350 to 600)
Core Product: Aquavalve609 (thermostatic); Cost : 155 Price : 675 to 750
Sales: 60,000 units per year; Image : high-quality and reliable
Power Shower
Combine a thermostatic mixer valve and booster pump
Bulky box on the wall
Core Product: Aquastream (thermostatic); Cost : 175 Price : 670
Sales: 20,000 units per year
Aqualisas strongest selling shower in the power shower technology

3. Business / Industry Situation

Aqualisa Quartz shower, the top, state of the art product of the Aqualisa, was launched in May 2001.
Quartz was the result of the intense market research, fantastic piece of technology and design. The
compatibility, ease of installation and reliability were popular among the plumbers while the beautiful
design, stability of temperature and good pressure made it ideal for the consumers. Unexpectedly,
despite of the Quartz's fantastic features, it did not get the overwhelming success that Aqualisa
expected.
4. Competition Situation

Aqualisa are in the fourth place after Triton, Mira and Gainsborough. This motify Aqualisa to do
market research, technology development and design in the product for 3 years with a total investment
of 5.6 million Euros. May 2001 Aqulisa had launched the Quartz shower, the first significant product
innovation in the UK shower market, with relatively higher price than the competitors.
The consumers might not want to buy it because expensive. But Aqualisa overcomes the problem of
low pressure with pump and fluctuation in temperature, customers will have a chance to experience
better shower performance..
5. Marketing Mix
Product

Price

Short-term
Ensure that showrooms
fully
showcase
the
attractive design
Associate the Quartz brand
closely with Aqualisa
Retain high retail price
As a new brand entering the

Long-term
Introduce
extension

product

line

Gradually reduce retail

price (market skimming)

Promotion

Place

market, a high price can

signal quality and premium
standard
Incentivise
showroom
consultants to promote
Quartz
Only 25% of showrooms
carried the Aqualisa brand
Expand sales force to
develop new customers

Publicize installation cost

saving
Reach out to more trade
shops
Target plumbers:
- Give them the Quartz as
a gift
- Give the a product
guarantee

Channel of Distribution
Plumbers

Showroom
Preferred to carry
loyalty to
high-end
product
Plumbers
lines and brands
73% Various shower and
sales came from
bath options
plumbers
Offered installation
Advice
services
by
a brand for consumer
subcontracting
The Aqualisa brand
was sold in about
25% of them
High
product

Trade Shop
Carried
products
across all available
brands
Their
primary
customer was the
plumber
The Aqualisa brand
was available in
40% of trade shops

DIY Shed

Offered
discount,
mass
market,
do-ityourself
products
DIY

Cheape
r and easier to
retrofit

The
Gainsborough brand
was available in
70% of DIY Sheds

6. Problem Definition :
Quartz sale have not meet expectation
Plumbers technology syndrome
Expensive
Brand awareness still low
7. Formulate alternatives
Offer the product to the end consumers directly
Aqualis Quartz is easy to use and install, so the sales people can make the consumers aware
the products unique features and benefits. They can provide insight to customers that buy
goods with cutting-edge technology can reduce costs after sales.
Give free product as a gift, and also free trial and demonstrations to plumber.
It will help plumbers to understand the easy method of installation required for the quartz
shower. When they positive about the product would always prefer it. Approximately 73% of
the consumers are influenced by the plumbers for installation of a shower.
Co-operate with developers as a consultant
The developers who are of the opinion that the Aqualisa brands are usually high end products
should also be made to realise the performance and flexibility of the product. If they can be
influenced, more plumbers will have to install the Quartz shower.
Display on the shelves of more number of showrooms.

The prize of product is expensive and its targeted mostly to premium segment, it should be
displayed on the shelves of more number of showrooms. People generally become aware and
instantaneously make a decision to own the product when it displays in showrooms.
Should promote the new product.
Promote the new product for medium segment and at the same time also concentrate on its
existing products.

8. Recommend one solution and prepare the contingency plan

Image branding is very important in introducing a product to the consumer. this will determine the
segmentation of users of the product. with the support of the good marketing plan and promotion
will make our products easy favored by buyers and eventually bringing increased product sales
and profits for the company