Aqualisa Quartz: Matthew Margin

Case: Aqualisa Quartz: Matthew Margin 24168181

Industry definition – Aqualisa is a U.K. shower manufacturer that operates in the British plumbing industry in 2001, analysis is based on the business unit level.  

Level of analysis – Strategic business unit (SBU): SBU analysis is used as Aqualisa is considering the strategy for the ‘Quartz’ shower in the product line. The strategy recommended will aim to generate sales momentum for the Quartz product.

External analysis – Competing with shower products in a market against other shower and plumbing product producers.  

Internal analysis – Overall goal of generating sales momentum of the Quartz product within the broader context of overall company sales growth. Quartz is positioned as the product with the most potential for growth within the Aqualisa product range.

Strengths:

• Quartz technology leads and bounds above other U.K. showers in terms of water pressure, ease of installation, use, design.
• Aqualisa has a strong reputation in the U.K. shower market
• Aqualisa service regarded as being ‘great’.
• Quartz benefits significant: shorter installation time, young apprentices can install, strong reviews
• Field trials suggests consumers love the product
• Quartz received top prize at bathroom expo in London/features on covers of several prominent trade journals
• Strong R&D team

Weakness:

• Brand awareness is low, only market leader ‘Triton’ has managed to create brand awareness at the consumer level
• 10% of showers still “went wrong”, a percentage that hasn’t improved in recent years
• Core products can be considered “too expensive”
• Channel partners have large inventory of Quartz products and only sold 81.
• Only 10% of sales force time is spent on developing new customers

Opportunities:

• 40% of homes in the U.K do not have shows
• Aqualisa only currently available at 40% of trade shops, and 25% of showrooms.
• Plumbers loyalty to a brand creates expertise given installation features and failure problems
• Leverage off top prize award at London expo

Threats:

• Triton and other rivals in the plumbing industry (8 main competitors plus others)
• Other companies catching up  
• Resistance to change and innovation as unfamiliar products present unknown performance problems for plumbers → ‘adoption is a long and slow process’

Identification of alternatives –

S1. Target plumbers directly: Plumbers have a high level of impact over brand and type of shower installation, with 53% (73?) of installations being influenced by the plumber’s choice. Targeting plumbers could be achieved through free demonstrations, discounts on repeat/volume installations, rewards programs based on amount of installations etc.