Aqualisa Product Quartz Case Study

1. Aqualisa spent three years and €5.8 million developing the Quartz. Was the product worth the investment? Is Quartz a niche product or a mainstream product? What is the Quartz value proposition to plumbers? To consumers?

Answer: In my personal opion, it was worth for the Aqualisa to spend three years and €5.8 million developing the Quartz because of the tremendous potential market demands. For 60% of families had shower with lot of mechanical problems and inconvenient use experiences, Quartz with it’s signigicate advantages were designed to feet their customer’s needs.

The conventional shower can no longer satisigy the market demand, innovation and customer value delivery is the market trend since forever. As the result, the development of Quartz proved Aqualisa’s brand value in marketing base aspect by deliverying “cleverness” of the product and its “elegant design”. As for finance aspect, Quartz provide higher customer value products with considerable margin which even higher than core products-Aquavalve 609. Based on these factor, Quartz is worth the investment in the long run.

Accurently, Quartz was accepted by limited market due to three factors. Fistly, the shower distribution mainly relays on plumbers (Exhibit 4 showcase 27% of consumer selects type and brand of shower without advice from plumber, the rest 73% of consumer are affected by plumbers by different extent.)who reluctant to accept new products with innovation especially involves electronics. Secondly, the sales channel and marketing activities are limited.

According to Exhibit 7 Aqualisa Select Financial Statement, only 2.7 million euro was spent in marketing process, which indicate the insufficient marketing strategy or activities may contributed to Quartz’s limited market ratio.

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However, Quartz is a mainstream product, with its significant advantages which can resolves all issues and with its high customer value, will become the market trend in the future is only the Aqualisa will fit their appropriate marketing strategy and activities with certain market base. Consumers are currently relatively uninformed and there was little understanding of product options.

Aqualisa Propositions for Plumbers

The propositions of the product for plumbers were listed herein below: Firstly, easy to install. As for the traditional shower, the installing work is really tough and time-consuming. In addition, the installing job is really difficult so that there is a serious shortage at senior plumber who can install the shower perfectly. But the installing job of this product is easier and need less time so even the apprentice can make it. Secondly, Quartz guaranteed that this product would not break down easily or require sevicing. Thirdly, More profitable, because they can do more jobs in the same period of time due to huge market demand.

The propositions of the product for customers were listed herein below: Firstly, Efficient and reliable water pressure and temperature. Secondly, looks great and eligent. Thirdly, easy to use (One touch control with red light indicator), especially for elderly and kids. The last but not the least, much easier to install for DIY sector

Traditional shower buyers are always suffering in some problems such as the low pressure and unstable temperature of the shower. But Quartz’s new shower technology resolved all of these problems.

2. Aqualisa currently has three brands: Aqualisa, Gainsborough, and ShowerMax. What is the rationale behind this multiple brand strategy? Does it make sense?

Answer: The market base has been cut into three segment by their purchase features. Direct cosumer, DIY market and Developer. The three brands are concertrated in these three segement separately so as to allow brand to penetrate different specialized markets. Aqualisa deliver higher end, range of different types of electric, mixer, and power showers; shown in show rooms and used my consumers/plumners, Aqualisa available in 40% of trade shops Gainsborough mainly for DIY market (sizeable) ; 70% of Gainsborough brand Shower Max for developers, which was available only through specialist contract outlets. Elements of the Aquavalve technology had been redesigned and re- branded for the ShowerMax product line and optimized for developers’ specific needs. The target customers of these three brands are totally different. So the reason of Aqualisa create three different brands is to highlight the difference between these three brands. As the matter of fact, customers can base on their needs and find the things really fulfill their requirements.

3. Why is the Quartz shower not selling?

Answer: The reasons of Quartz shower not selling listed herein below: First of all, the shower distribution mainly relays on plumbers (Exhibit 4 showcase 27% of consumer selects type and brand of shower without advice from plumber, the rest 73% of consumer are affected by plumbers by different extent.)who reluctant to accept new products with innovation especially involves electronics. Secondly, the sales channel and marketing activities are limited. According to Exhibit 7 Aqualisa Select Financial Statement, only 2.7 million euro was spent in marketing process, which indicate the insufficient marketing strategy or activities may contributed to Quartz’s limited market ratio. The Quartz products were only gaining traction in the showrooms, the boarder were concern about cannibalism (and bringing down value) of other products. Thirdly, the price of Quartz may little bit higher than customer expected for they are currently relatively uninformed and there was little understanding of product options.