Acqualisa Quartz

1. PROBLEM STATEMENT

In 2011 Aqualisa made an heavy investments of €5.8 million to develop Quartz, the most innovative shower in UK history. The electric shower is stylish, easy to use and install and solve both problems of end customers and plumbers. However, the product is selling at a rate of 15 units per day which is well below the expected rate of 100 to 200 units a day. The company is now looking for a new marketing strategy to generate sales momentum for Quartz.

2. SITUATION ANALYSIS

Aqualisa, the 3rd largest shower manufacturer in UK with 18.1% units sold, has had a successful multi brand strategy focused on high quality innovative products, which allowed it to enjoy 25% net return on sales and a growth from 5% to 10% in a mature market. The two market leaders, Triton and Mira, have 30.3% and 21.7% respectively. The company is present in all segments of the market, and has a broad product range of nine models, which cover the three types of showers used in the UK (power, mixer and electric), ranging between €230-670 per unit. The company is also present in all consumer markets, serving both B2C and B2B clients. Their channel relationships are strong and the company is reputable in the UK market for its top-quality showers, reliability and great services. The UK shower market has a big potential since only 60% of homes have showers therefore the remaining 40% could be converted to installing showers. The population that already has showers have a variety of complaints due to the quality issues associated with the older models, ranging from variations in water pressure to water temperature.

In 2011 when the company launched Quartz shower, the model solved most of the problems that customers had with U.K. showers. With Quartz, Aqualisa now offered a shower to the market that had eradicated or significantly reduced the issues with temperature and water pressure while adding a new design, safety features and neat fittings. The Quartz was also quick and...