Aqualisa Quartz - Simply a Better Shower

Aqualisa Quartz: Simply a Better Shower

Santosh Kuamr Sharma (17316)

Section – C

Situation Analysis:

Company: Aqualisa, 3rd in the shower market with 18% coverage and 2nd in the mixer valve segment has had a successful marketing strategy, which allowed it to enjoy 25% net return on sales and a growth of 5% to 10% in a mature market. They have effectively segmented their market and have products which were catering the needs of customer. It has 9 different types of product with different distribution channel. Through proper channel relationship they have achieved a good brand name in the market. Company’s MD Mr. Harry Rawlinson has invested a lot of time and money in research and development, which has resulted in creation of new product “Quartz Standard Shower and Quartz Pumped Shower. These products are revolutionary product in this industry and seems to be problem solver for several stakeholders.

Company’s Strenght:

• Strong reputation.
• Highly profitable company
• High quality
• Strategic use of Gainsborough brand to penetrate low cost market

Company’s Weakness:

• Only 40% coverage of trade shops which is the largest volume selling medium
• 10% defective products on an average in a year
• Made a brand image of expensive product

Customers: Customer in UK for shower can be broadly classified in three categories.

1. Value customer
2. Standard customer
3. Premium customer

Channel of distribution:

1. Trade shop: Products of all brands were sold. Largest contributor in selling the showers in market to customer. Aqualisa has 40% coverage of total trade shops.
2. Showrooms: Perceived as location for premium product sale. Aqualisa has a share of 25% of total 2000 showrooms.
3. Do-It-Yourself sheds: Products distributed through discounted distributor mode.

Existing problems with showers systems:

• Poor pressure and varying temperature
• Shower with inferior quality (often broke down)
• Stiff vales and hard to turn valves
• Leaky seals and worn-out showers
• Modification in bathroom wall for fitting mixer showers

After three years of R&D company has launched Quartz shower with maximum temperature of 45 degrees Celsius with option to run at 2/3rd speed of maximum flow. It is controlled from remote place with remote and display at shower indicates that exact temperature has been reached, So safe for children. As mixing occurs prior to coming to shower before bathroom so reworking on wall has been eliminated. The problem of turning the stiff valves is taken care by thermostatic electronic valve. Thus it is a state of art product but not gaining expected sales return after four months of launch.