Aqualisa Quartz - Why Do You Think the Quartz Shower Is Not Selling?

AQUALISA QUARTZ

1. In brief, why do you think the Quartz shower is not selling?

Aqualisa Quartz has the potential to succeed but the shower is not selling for the reasons mentioned below:

1. In the UK a large percentage of customers, around 70% rely on the plumbers for shower selection and installation but in the case of Quartz shower the plumbers were wary of the innovation and introduction of electronics in Quartz shower. The plumbers distrusted innovation as they had seen failure in 1980s because of the introduction of electronics and push button controls in the shower. Hence, they were not ready to try a new product or recommend it to new customer. Even if the plumbers come out of their conservative mindset still the adoption would take a long time and as a result the initials sales would be quite low.

1. The price difference between the two Quartz models and Aqualisa’s other premium products is quite large so perhaps Quartz standard and Quartz Pumped are highly priced as compared to other products in its segment. Hence, resulting in lower sales.

1. Aqualisa’s sales force spend 90% of their time on maintaining existing customers and only 10% of their time on developing new customers. Perhaps the sales force needs to spend more time on new customer acquisition and help increase the sales of the new Quartz shower.

1. Aqualisa’s sales force have a long standing relationship with a group of plumbers but maybe this group size is not large enough to influence the overall sale of the product in the market.

1. Lastly, the companies’ effort is not focused on a particular market segment. It seems their effort is currently divided between the niche and the mainstream market segment. It would be better to start with one segment and then move over to another.

2. There are three brands in the company’s portfolio: Aqualisa, Gainsborough, and ShowerMax.  What explains this multi-brand approach to the market?  How have each of the 4Ps in the marketing mix been affected by this strategy?

Aqualisa strategically positioned its products in different segment and categories under separate brand name to enhance the brand value of its products and to make the product more focused to that particular segment. By using this approach they highlighted the brand name over the name of the company. Each of these products had separate features and was tailored to cater to a specific market segment. Aqualisa’s strategy effected the 4Ps in marketing – price, product, promotion and place.

Aqualisa sold electric showers mostly under “Gainsborough” brand name. They had two major products for the two pricing segment – Gainsborough value retailed for €95 and Gainsborough standard retailed for €155. The Gainsborough electric showers were inexpensive and generally sold at the retail outlets and the DIY (do-it-yourself) people were its primary customers. By this product Aqualisa targeted and promoted the product to customers who did not want to spend a lot of money on showers and could purchase the product easily at retail stores.