Aqualisa Quartz: Simply a Better Shower Section-G, Group-02

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Case Analysis Aqualisa Quartz
Section G

Group 2




Submitted By:

2014PGP016 AJAY MEENA
2014PGP097 DEBARUN SENGUPTA
2014PGP179 LAKSHAY SAHNI
2014PGP190 MAHESH NARAYANAN
2014PGP289 RAKESH KUMAR
2014PGP365 SINDHU S
IPM2011027 EKTA SETH


Aqualisa Quartz: Simply a Better Shower Section-G, Group-02
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MISSION
To improve the sales of Quartz and increase the market share
Internal
SWOT Analysis
Strengths
The installation of the shower could be done in just half a day without any expert knowledge
requirement.
The innovation of the remote control helps to attain desired temperature beforehand and
saves time.
Only a single hole has to be drilled in ceiling and electronic valve/processor can be placed in
a convenient location, that helps to save space and avoid the need of excavating bathroom.
It is easier to attain the desired temperature and water flow rate due to the automatic
control
One touch control mounted on wall
Strong reputation in UK market
Premium brand which provides top quality showers and great service attested by the
consumers.

Weakness
Servicing slipped in the past few years
10% of showers become defective
Plumbers werent ready to accept the new innovation
Low sales volume in trade shops and showrooms
Lack of brand awareness
Sales force spent 90% time on maintaining the existing accounts and servicing the existing
new customers. Only 10% time spent on developing new customers.
Opportunity
Increased demand of the UK market for automatic showers
Threat
Other companies are fast catching up on product quality
There is a general market perception that product is overpriced
Salesmen tend to gloss over other products and to sell they have to point out deficiencies in
the existing products.




Aqualisa Quartz: Simply a Better Shower Section-G, Group-02
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Situational Analysis
1. Company: Aqualisa
o A UK shower manufacturer, Harry Rawlinson is the Managing Director
o Launched its premium product Quartz in May 2001
o Generally recognized as a premium brand in top quality showers
o Number 3 overall in UK shower market
o Earned a base profit of 17,355

2. Context
Technological Environment:
o Real breakthroughs are rare in the shower market. Innovations are mostly cosmetic
o Most of the manufacturers only recycle their product line and relaunch their main
products every four or five years
o Plumbers distrust innovation after the electronics flopped terribly in the 80s

3. Collaborators
The collaborators for Aqualisa constitute the following:-
o Trade Shops: carried products across all available brands. Primary customer was
plumber who worked for developers, showrooms, contractors or directly for
consumers. Aqualisa was available in 40% of trade shops.
o Showrooms: Carry high end product lines and brands and offered installation
services by subcontracting with contractors and independent plumbers. 2000
showrooms in U.K. Aqualisa brand was sold in 25% of them.
o DIY Sheds: offered cheaper and discounted brands for mass market. Aqualisas
Gainsborough brand was available in 70% of approximately 3000 DIY outlets in U.K.
o Plumbers: About 10000 plumbers in U.K. They charged about 40 to 80 per hour for
servicing plus the excavation cost. They had a conservative mind set and distrusted
innovation
4. Competitor
Major competitors for Aqualisa are:-
i. Triton has the maximum sales (545,500 in year 2000) among all the brands. Only
company to build brand awareness at the consumer level. Huge sales in electric
shower category (479,000). Therefore, major competitor for Aqualisas
Gainsborough brand (180,000).
ii. Mira maximum sales in the mixer showers category (200,000). Therefore, a direct
competitor for Aqualisa Quartz brand.
5. Customer
Major customers for Aqualisa are divided into 3 segments:-
i. Premium: typically shopped in showrooms. Preferred high performance, service and
style
ii. Standard: emphasize performance and service. usually relied on independent
plumber for recommendation on a product
iii. Value: majorly concerned with convenience and price and rely on independent
plumber to select a product
Aqualisa Quartz: Simply a Better Shower Section-G, Group-02
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Apart from direct consumer market, there are 2 more markets:-
DIY (Do-it-yourself) market: generally shopped at large retail outlets. Customers
interested in inexpensive and easy to install models
Developer market: preferred reliable, nice looking and price sensitive products. Had
relationships with independent plumbers
Aqualisa Quartz: Simply a Better Shower Section-G, Group-02
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Decision problem and key stakeholders
The problem with Aqualisa Quartz is that its sales are not as expected. They may be due to flaws in
distribution channels and promotional strategy. Since plumbers are key players in affecting the
consumer decisions therefore, efficient process for reaching out to them is vital.
Stakeholders:
o Consumers
o R&D Team
o Developer
o Plumbers
o Distributors(Trade Shops, Showrooms, DIYs)

Options
1. Enlightening plumbers: The plumbers are reluctant to switch brands mainly because of the
following two reasons:-
Conservative nature: They distrusted innovation in technology
For bungled installations, they have to pay from their pockets for a second visit
Since, an instance in the case shows that once a plumber performs one installation, he gets
familiar with the ease of installation of Quartz. Therefore, one possible solution for changing
the conservative nature of plumbers could be creating awareness among them regarding the
installation process by organising training or demonstration sessions for them.
2. Learning from the showroom sales: Since Quartz has penetrated the showroom market the
most because of product demonstration facilities, therefore, such demonstrations can be set
up for the consumers in other markets such as Trade Shops or DIYs should be done.
3. Providing unconditional guarantee to plumbers to deal with their scepticism of breaking
down or service requirement of showers.


Aqualisa Quartz: Simply a Better Shower Section-G, Group-02
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Q1: Quartz is a unique product but why it is not selling?

The probable reasons could be:-
1. Inability to target the right customers: As there was a reluctance of the plumbers to
accept this new product due to their bias against electronic goods, they refused to install
or recommend the product to potential customers.
2. Overpriced: The product was perceived to be overpriced (850 Euros to 1080 Euros) by
the customers.
3. Inefficient marketing strategy: The plumbers influence nearly 73% of the customers in
recommending and selecting the shower brand or model and about 54% of installations
are done by independent plumbers. Therefore, marketing strategy should be more
plumber oriented than consumer oriented.
4. Very less time for developing new customer base: Only 10% of time was spent by the
sales force on developing the new customer base.

Q2: What should Harry do now?

Harry can implement the following options:-

1. He should focus on targeting the plumbers as they are able to influence nearly 73% of
the customers. Installation of the mixer showers by independent plumbers is 54%, of the
total mixer showers sold. Promotion with the plumbers could help in reaching more
consumers and hence, improving sales. As of now, the plumbers believe that the
electronic goods will require frequent servicing and are not reliable. There should be
seminars for the plumbers to demonstrate the ease with which the product can be
installed.
2. As of now, only 10% of the total sales force is working on gaining new customers. If we
increase this percentage so that more people will be focused on gaining new customers,
it would lead to increase in sales.
Property developers are yet another potential market which has not been penetrated yet.