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Aqualisa Quartz Simply a Better Shower Case Solution

Solution Id Length Case Author Case Publisher
1295 1010 Words (4 Pages) Youngme Moon, Kerry Herman Harvard Business School : 502030
This solution includes: A Word File A Word File

Harry Rawlinson, the managing director at Aqualisa, has been witnessing disappointing sales of one of the company’s innovative products called Quartz. Quartz was an innovation that boasted features of safety, quality, installation costs and the relative ease of installation and use. Despite these features, the product was not selling. The case has revealed that there have been issues regarding the marketing mix strategy for the product. 

Issues pertinent to distribution, sales promotion and the positioning of the product exist. The approach had been the same as had been for other products. The standardized approach perhaps did not fit in well with this new product. Customers are hesitant to use electronic showers; a fear Aqualisa has not addressed. Lastly, the plumbers need to be engaged and encouraged to sell the product for which the sales force needs to be activated. Aqualisa needs to develop a strategy to counter these issues for Quartz to be success.

Following questions are answered in this case study solution

  1. Analysis

  2. Strategic Alternatives

  3. Recommended Action Plan

Case Analysis for Aqualisa Quartz Simply a Better Shower

Analysis

Aqualisa has not been successful in deploying a marketing mix for Quartz. Various issues in the mix have surfaced that have caused the product to witness sluggish sales. The product, Quartz, itself is a high quality product that has no competition due to its unique features. The competition that does exist is that of low cost substitutes that are unable to match the advanced technology and features that Quartz has to offer. However, still the sales are sluggish primarily because of the availability of these low cost alternatives in the market. Moreover, customers shy away from using electronic showers, which results in low sales. Aqualisa is active in two of the three main distribution channels.

The company’s products are available in 40% of the trade shops in the UK. These trade shops are the dominant channel and main suppliers for plumbers. Only 25% of showrooms, which are outlets for premium customers, carry Aqualisa products. Lastly, the Do-It-Yourself market is large; however, Aqualisa products are not available through this channel. It is known that the company does not have brand recognition or recall in the market. The company has not engaged in advertising or promotions for its products. Other products are in the mature stage and may not require promotion; however, Quartz requires aggressive promotional activities. Promotional strategies used for previous products would not be applicable for Quartz unless they are customized.

As seen, Quartz was priced extremely high as compared to other premium brands of the company such as Aquastyle. The margins were high, and the brand developed the image of a high-end overpriced brand. Premium pricing segments meant customers looked for style and shopped at showrooms. Introductory prices tend to be looked down upon by the customers who would perceive it as low quality.

Strategic Alternatives

Aqualisa needs to clarify its product positioning before it can embark upon creating a customized marketing mix for the product. The product is a premium brand and for this Aqualisa needs to identify its target market clearly. The company needs to conduct an in-depth analysis of the customers and their wants and needs so that it can structure its promotional activities in accordance with these needs. The company also needs to identify how it will target these markets. Trade shops are the main suppliers for plumbers and showrooms are the main suppliers for premium customers. Availability of the product in these two distribution channels needs to increase so that plumbers and premium customers can be targeted effectively.

Promotional activities in these two distribution channels also need to increase for Aqualisa to be successful in marketing Quartz and increasing its sales. Plumbers need to be engaged through sales force activation since they are the main influencers for the end-consumer. Regarding the marketing mix the company can take the following steps. The product in itself it top of the line, something that competitors can’t match and that is a major strategic advantage for Aqualisa. The innovation and features of the product can be used effectively in its marketing and sales campaigns.

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