Aqualisa Quartz: Simply a Better Shower

Title: Aqualisa Quartz: Simply a better shower

To: Inese Eglite

From: Evija Tofere / 152RIG022

Date: 20.09.2016

Question: Why is the Quartz shower not selling? If you were Rowlison, which action plan you take to succeed with product sales?

Aqualisa – one of leading U.K. shower producer – has launched new premium price product 4 months ago which essentially differs from other competitors and Aqualisa production hitting bough consumer and plumber needs for convenient use and installation and solving water pressure issue. However new products are not performing as expected. Unfortunately there are no data available regarding business in value to assess business opportunities and market analysis – is the market growing, is Aqualisa market share growing (taking all SKU’s together), what are sales results (YTD data), what is sales split in Aqualisa turnover between value / standard /premium products bough in value and volume.

The main reasons why Quartz is not performing as expected are:

1. Plumbers (which make 54% of all installations and can influence the customers choice in 45%) are conservative and wary of innovations especially when electronics is involved.
2. Sales force is focusing on existing customers, no focus on new customers or new cooperation model with existing customers.
3. Low distribution in premium sales channel – show rooms (25%). As Quartz is expected to be a premium product it has to be there.
4. Price policy – if Quartz is expected to be premium, it has to be the most expensive, but at the same time, there is one product in premium category with lower retail price than for average value price products.

I would suggest to

1. Introduce as much plumbers as possible about product features – in trade shows, in showrooms, by organizing learning sessions.
2. If end-consumer advertisement and communication is needed (not sure about it) – to message it as “The most convenient and modern solution for your shower” – end consumers do not need so much technical details as are in advertisement presented.
3. To focus sales force towards new product features explanation – more educated clients and consumers are the solution to achieve sales results. Customer can’t choose product which they do not know and do not understand.
4. To increase distribution in showrooms, providing learning materials about product features.
5. To fix pricing policy and revise assortment. There has to be logic in pricings, however Aqualisa have to consider option to delete some non-profitable and low performing SKU’s.