Aqualisa Case Study solution Essay
I took into consideration the problem of Aqualisa Quartz shower line and found out how to solve it, how to make an enormous problem to become an opportunity instead. This company made a great job with it’s research and creation of product that takes advantage on it’s competitors by giving everything to needs of the customers. But the problem is there is no connection between plumbers and customers. Also sales are affected by bad experience of customers with previous products. So, customers don’t really trust to this new product. Aqualisa needs positioning in the market as a good value, high quality, and multifunctional product. It needs also a marketing plan for new products. Aqualisa company is required to determine the distribution channels which it should concentrate on, and also the company needs to clarify itself the level of its brand (either it will be standart or premium). According to the showing in a text it is clear that the market share of Aqualisa was 18% in 2000, and the percentage of people who use shower instead of bathtubs is around 60%. If other 40% were shower users too, the demand for these new showers would increase rapidly.
By making a lot of researches and surveys, it was felt that the customers were not satisfied with 2 main problems: the fluctuations in temperature and the pressure of water. The suggestion of improve this situation is to create something new and innovative that would differ Aqualisa from its competitors. The CEO of Aqualisa should simply lower expectations. High prices prevent sales of increasing. If company would prefer to stay in the premium level, the company won’t be able to fight with competitors. But in other case, if Aqualisa decides to decrease price level, the product would have great chances on the market within it’s easy installation; the Aqualisa’s Quartz shower would be attractive to the “Do it yourselfers“. This strategy will not be targeted directly to developers, because the price expectations for showers are more flexible at the developers’ market. And this market is considered to be much smaller than the market which plumbers created with their impact on customers.
In fact, it is not effective to create another new options and additional features which some “high-qualified exclusive brands” already sell with relatively high price. It is not profitable. Aqualisa’s CEO considers that targeting consumers directly will cost him a lot of money that he cannot afford to spend. It would cost 3-4 millions of pounds over two years to buy a large-scale consumer campaign, and it is not profitable, too. To my mind not only customers should know everything about the product that they use (in this case it’s Aqualisa’s Quartz showers) but also plumbers, too. And customers should also be independent of plumbers’ opinion and influence that would make them buy another showers because of not being aware of knowing how to install these new Quartz showers.
Aqualisa should pay much more attention to the plumbers. If they would be interested in this product it would bring to the company a great amount of sales. Customers trust to their opinion. Everyone: customers, plumbers, company would get a benefit. Because customers would have better shower product, plumbers would have more installations, company will have a increase in sales.
Better design, quality
Strong brand recognition
Innovative light indicator
Easy to use
One touch control
Bad experience with previous products
Manual controlling is not comfortable
Bad water control
Shower systems are too big
Aqualisa is overpriced
Cannibalization of existing shower product models
Competitors are catching-up on quality and technology
Strategic Market Plan
If to make much more concentration on plumbers’ distribution channels, the Quartz showers’ sales would significantly increase. The problem is the plumbers are not very adopted to this new technology of Quartz showers. According to the showings, Quartz showers have the highest contribution margin per unit and largest potential market with no direct competitors which offer the same products. The company has a very powerful and spread brand name among plumbers, so Aqualisa has reliable relationships with these plumbers, and they are seemed to be loyal to this brand. The solution which this strategy suggests is to decrease and/or to liquidate resources of all other Aqualisa’s shower products with high premium quality. But to my mind it will be difficult to successfully produce Quartz showers without a bad influence of all those other shower products. Their profit from investments will have a significant loss in prices rather than the Quartz showers’ current prices.
Marketing Mix Strategy
To reduce prices just on Aqualisa Quartz would be not logical. Customers won’t understand it. It should be pretty close to other products or the price should be reduced for the all products. Aqualisa should pay much more attention to awareness of a product.It is very important to get involved plumbers. As I said before, they have an incredible influence on customer’s choice. But plumbers have to be very close and familiar with this product to understand It’s advantages and benefits. Quartz should be demonstrated also in showrooms, that would also bring increase in sales. Company shoul give free demonstration models to showrooms and to plumbers.
– create awareness
– increase marketing budget to support strategy of growth of a new product –
concentrate attention on plumbers
– decrease marketing dollars for other premium brands
– validate customer’s new needs and satisfy themu