Aqualisa Quartz Case Analysis

Introduction

The new launched Aqualisa Quartz shower was a significant product innovation. It solved the many problems of the traditional showers in U.K. market such as low pressure, fluctuations in temperature and hard-to-turn valves. However, due to plumpers’ distrust to innovation, customers’ lack of brand awareness and salesmen’s hesitation, the selling of the new products was not as good as expected. This paper aims to help Quartz shower to find its right marketing strategy by analysing the distribution channels and targeting alternatives.

Analysis

Identifying the target audience, key distribution channels and is important to build an appropriate marketing strategy for the Aqualisa Quartz product. During the three years of development, Aqualisa spent about €5.8 million. And the final shower cost the company about €175 to €230 to make. As a result, Quartz showers were naturally to be high-priced (See Exhibit 1). The target audience of Quartz was high-end.

1. Analysis of the main channels of distribution

Trade shops: the primary customer of trade shops were plumbers. In the U.K., plumbers can influence 73% of the mixer shower selection directly or indirectly (see Exhibit 2), which means the majority showers in U.K. were sold through trade shops. Trade shops carried out products across all available brands. They sold any products that were in demand. Make Quartz brand be recognized in trade shops would be difficult.

Showrooms: showers in showrooms tended to be high-end. Aqualisa brand was sold in about 25% of all the 2,000 showrooms in the U.K. However, showers sold through showrooms only makes up of 8.32% of all the showers sold (see Exhibit 3). This indicates that Aqualisa brand could only have its market share of 2.08% in showrooms. Therefore, although showrooms were consistent with Quartz showers’ high-end pricing strategy, the sales volume in this aspect would be very limited.

DIY sheds: Aqualisa’s brand Gainsborough brand was available in 70% of the 3,000 DIY outlets in the UK. However, customers in DIY market were primary interested in inexpensive models. Electric showers were the overwhelming choice for customers in DIY market. The high price of Quartz showers would not attract customers in this market unless large discount was offered.

1. Analysis on Targeting Strategy

Targeting Customers directly: to get the plumbers to adopt new technology was very difficult since they were distrust to innovation. Plumbers were reluctant to change brand. Under this circumstance, making Quartz shower recognized by customers became an alternative. Reaching out to the customers could help build brand awareness. Although €3 to €4 million would be needed to start the advertising campaign, this strategy could bring great profit in the long run. This was an expensive, but potentially high reward gamble.