Simply a Better Shower

Aqualisa is a U.

K. shower manufacturer. Shower buyers in U.K. fall into 3 pricing segments: premium, standard and value. Premium segment consist of people who mainly shop in showrooms.

Their focus is on great service and high performance. In standard segment, Customers rely on plumber recommendation and emphasize performance and service. Value segment are mainly customers who are primarily concerned with convenience and price. Thus, they like to avoid excavation and also tend to rely on independent plumber to select a product. The company currently has 3 brands: Aqualisa, Gainsborough, and ShowerMax to satisfy needs from different segments. The company’s main three channels of distribution are Trade shops, Showrooms and DIY Sheds.

In order to create innovations, Aqualisa developed the Quartz, a breakthrough in technology with many benefits: easy and fast installment, efficient and reliable water pressure and temperature, ease of use, and no bulky box. Consumers loved the new shower during field trails. Reviewers have also been positive about the product. However, Aqualisa did not sell as many as they thought they would. The breakthrough in technology did not bring a breakthrough in sales and profits.

How to solve this problem had become a critical issue for the company.The challengesAqualisa spent 3 years and 5.8 million Euros in developing the Quartz. Now they have an innovative product which are superior to other showers in the market and can satisfy consumers’ needs. The product is worth the investment since the Quartz gives Aqualisa a competitive advantage over competitors. The product development is successfully done.

Now the challenge lies in marketing strategy. To solve the problem, we need to know the reasons behind the Quartz’ poor initial sales results. The following are the main reasons why the product is not selling.1. The plumbers are wary of innovation, particularly any innovation involving electronics. They just do not want to switch to other products easily because they are afraid of unknown performance problems.

However, the Quartz provides real benefits to plumbers because it is so easy to install that they can have more jobs.2. Brand awareness in U.K.

shower market is low. Consumers have little understanding of product options. Most customers depend on what the plumber recommends. They are just not aware of the product. This is why the many benefits of the Quartz could not induce demand from consumers.3.

The Quartz needs to be aligned with existing product to avoid cannibalization.The company’s alternative solutionsNow Rowlingson have important decisions to make to meet the challenges and generate sales momentum. He is thinking of the following marketing options. Each of them has its own pros and cons.1.

Targeting consumers directly – target consumers with the Quartz and try to build a consumer brand.Pros: 1) Overcome the problem to reach plumbers. 2) Proven to be doable by Triton. Cons: 1) It is tough to justify this strategy in a healthy company due to its high-risk, high reward nature. 2) Large scale consumer campaign costs too much.

2. Targeting Do-It-YourselfersPro: The Quartz is very appealing in do-it-yourself market due to the ease of installation. Con: Association of the premium brand with the discount channel.3. Targeting DevelopersPros: 1) The large volume channel could promote sales significantly.

2) Force plumbers to get familiar with the Quartz.Cons: 1) Significant time lag before showers would reach consumers. 2) Developers’ unwillingness to spend money on premium brand.My solutionI suggest Rowlingson try to create brand recognition for the Quartz in both consumers and plumbers by targeting a specific customer segment and at the same time providing enough incentives for plumbers to try the new product. The Quartz is an innovative product which is superior to any other option in the market. Making consumers and plumbers be aware of this fact is critical for its success in sales.

Brand recognition will also give the company long term benefits. At the present time, Triton is the only company that has achieved some sort of brand recognition and its importance is evident in the amount of showers that have been sold by Triton (Exhibit 2). Providing incentives to plumbers will reduce their resistance when more consumers realize the benefits of the Quartz. Moreover, Keeping the Quartz a premium brand can avoid cannibalization of Aqualisa’s lower end products.Recommendation1.

Conduct a small or medium scale consumer campaign to target a specific group in the market. This specific group should fit the advantages of the Quartz and are more open-minded to innovations. It is better if these consumers are in need of new showers. My candidate is young couples who start a new home. But their ability to pay the premium price is questionable.

We need detailed market analysis and customer surveys to determine that. The rationale behind this recommendation is that a small or medium scale consumer campaign will not cost as much as initially estimated and is less risky. And when consumers become aware of the benefits of the new product, many will begin to ask for Aqualisa by name which will boost not only Aqualisa Quartz sales, but also other Aqualisa shower sales.2. Provide incentives for plumbers to try the Quartz.

For examples, reimburse the plumber for the cost if anything goes wrong with the installed Quartz and the plumber has to pay a second visit. In this way, plumbers will be less afraid of unknown performance problems. Once plumbers try the new product they would immediately realize its advantages because it is so easy to install and they can be much more productive.3.

Build demonstrations in places other than showrooms and invite plumbers to compare the Quartz with other showers and even try it in breakfast meetings.