Aqualisa Quartz Case Study

Marketing Concepts

Aqualisa Quartz Case Study

Problem

As Rawlinson stated, “real breakthroughs are pretty rare in the shower market” and that “innovations are primarily cosmetic.” After years of moderate growth and marketplace comfort, Aqualisa made the decision to revamp its R&D efforts to produce an innovative solution to the common consumer shower troubles of water pressure, consistent temperature, and reliability. When Aqualisa released Quartz, a new and innovative shower product line that would solve the consumer shower problems; it was hampered early by slow sales and a slow adoption rate in the early goings of the product launch. As managing director of Aqualisa, Harry Rawlinson was challenged with the question of how to generate sales momentum for the Quartz showers. In addition to increasing sales there was also a question that Rawlinson failed to thoroughly address in the article, which was, should he drop the price?

Analysis

One thing that Rawlinson would have to consider for driving sales would be the price of the product. Although the article does not include any bulk or discounted prices, Rawlinson often stated in the article that discounting the price of their products was not something they cared to do. What I find interesting about the Quartz products is that the cost to produce the product is very comparable (€175 - €230) to the other products that they were currently making. Granted there was an increase from the money spent on R&D, but his perception of innovation and quality seems like it is solely tied to money.

For example, if you compare Aqualisa’s mixer shower valve product, the Aquavalve 609 with the Quartz line, you will see that for the non-DIY, it was actually cheaper to purchase the Quartz product and have it installed. So while the Aquavalve is a hot seller, the cost of installation (and booster pump if needed) actually increased the overall price of the product.

Product | Segment | Retail Price |...