Quartz Value Proposition

1. Easy to install. Half day for plumbers.

2. Aqualisa’s good reputation

3. Overcame the problem of low pressure with pump

4. Overcame problem of fluctuation in temperature

5. No bulky boxes. Can be hidden

6. Stylish. Electronic lights and buttons

7. Easy to use. One touch control.

8. Safe for children

9. Elderly didn’t have to fight with stiff values

10.Easy to sell in showrooms as easy to demonstrate.

11.Awarded top prize and good press

Challenges

1. Plumbers reluctant to switch because uncertain of performance of new

product, second visit.

2. Selling only 15 units and projected to 30-40 in 6 months. But needed 100-
200.

3. Distribution

a. Trade Shops – Focused on demand and no time to explain benefits of

new products

b. Showrooms – Easy to demonstrate but only premium customers

c. Do-it-yourself Sheds – Association may undermine the value and need

to give discounts

d. Direct to consumers – High cost 3 million to 4 million euros

e. Plumbers – Build loyalty, explain benefits, service more consumers.

20% + 25+ 28

f. Developers – time lag

4. Competing with existing products while need to focus on increasing market
share

5. 20 persons concentrating on 90% on maintaining existing accounts

6.

Aqualisa Quartz Case Study

1. What is the Quartz value proposition to plumbers? To Consumers?

To plumbers:

a. Very easy to install - 'push-fit-connect-you're done'

b. More profitable

i. ½ day work (25% of previous time), apprentices can do work also.

Opportunity to install more and capture some of historical 6-month wait list

ii. on average, plumbers do 40 to 50 a year (generally 2-day job), but

generally without reducing profit, will be able to do many more

To consumers:

c. Efficient and reliable water pressure and temperature

d. One touch control with red light indicator

e. Much easier to install for DIY sector

2. Why is the Quartz shower not selling?

a. Reluctance of plumbers to switch; mostly due to stigma of other innovative

options that failed or required repairs, affecting consumers.

b. Possibly overpriced
c. Really only gaining traction in the showrooms, concern about cannibalism
(and bringing down value) of other products

3. 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?

a. Yes, worth the investment, because technologically innovative. Early test

results showed consumers loved the product. Consumers are currently
relatively uninformed and there was little understanding of product options.

b. Mainstream, superior product and resolves all issues:

i. Poor pressure

ii. Varying temperature

iii. Break after a while

4. What should Rawlinson do to generate sales momentum for the Quartz

product?

Should he change his marketing strategy to target consumers directly, target

the DIY

market, or target developers? Should he lower the price of the Quartz? Or

should he do

something different altogether?

Targeting the correct market is crucial to solve the problem. With this in
mind, there are 4 alternative marketing strategies.

The first option is to target the consumers directly. This is a high risk option.
Firstly, it requires a high advertising budget (3-4 millions). Secondly, even
though we can convince the consumers, they might still be influenced by the
plumbers in making their decisions. Therefore, we put the option of targeting
the consumers directly as a long term goal that will be achieved after the
implementation of the second option.

The second option is to target the plumbers. Currently, they influence 73% of
all shower purchases. The challenge here is that they are always skeptical
about electronic showers and fear that unfamiliar products may cause
unknown performance problems. Aqualisa needs to implement a marketing
strategy that can make them believe in the Quartz's capabilities. The ease of
installation feature should generate much enthusiasm in the plumbers
because it can help them increase their productivity (half-a-day installation,
instead of the usual two days and their apprentices could also do the job for
them), which would translate into more installations and higher income for
them. Also the Aqualisa could have a deal with the plumbers that if they
recommend and install a certain amount they would get a commission.

The third option is to target the DIY group. The Quartz's easy installation
benefit would certainly make it a hit among the DIYers. However, it might be
detrimental to Quartz's image as a premium brand and once we are in the
DIY sheds, it would be difficult to climb out.

The last option is to target the developers. Enlarge the distribution channel,
directly increase the sales and profit has to be share.

http://www.bignerds.com/papers/29232/Aqualisa/

Aqualisa

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Aqualisa Quartz Case Study

1. What is the Quartz value proposition to plumbers? To Consumers?

To plumbers:

a. Very easy to install - 'push-fit-connect-you're done'

b. More profitable

i. ½ day work (25% of previous time), apprentices can do work also.

Opportunity to install more and capture some of historical 6-month wait list

ii. on average, plumbers do 40 to 50 a year (generally 2-day job), but

generally without reducing profit, will be able to do many more

To consumers:

c. Efficient and reliable water pressure and temperature

d. One touch control with red light indicator

e. Much easier to install for DIY sector

2. Why is the Quartz shower not selling?

a. Reluctance of plumbers to switch; mostly due to stigma of other innovative

options that failed or required repairs, affecting consumers.

b. Possibly overpriced

c. Really only gaining traction in the showrooms, concern about cannibalism

(and bringing down value) of other products

3. 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?

a. Yes, worth the investment, because technologically innovative. Early test

results showed consumers loved the product. Consumers are currently
relatively uninformed and there was little understanding of product options.

b. Mainstream, superior product and resolves all issues:

i. Poor pressure

ii. Varying temperature

iii. Break after a while

4. What should Rawlinson do to generate sales momentum for the Quartz

product?

Should he change his marketing strategy to target consumers directly, target

the DIY

market, or target developers? Should he lower the price of the Quartz? Or

should he do

something different altogether?

Targeting the correct market is crucial to solve the problem. With this in
mind, there are 4 alternative marketing strategies.
The first option is to target the consumers directly. This is a high risk option.
Firstly, it...

Marketing Case Study II: Aqualisa Quartz

Introduction and Problem Statement
Aqualisa, a premium British shower manufacturer, is experiencing teething problems with its new
line of electronic mixed shower products – Quartz. Despite being hailed as “a breakthrough in
shower technology” (Case p. 6), early sales were dismal. Plumbers, the main channel of
Aqualisa’s products, have developed an ‘electronic phobia’ since the late 1980s when
early electronic showers failed, hurting Quartz by association. Furthermore, the company is also
concerned of cannibalization that could occur to Aqualisa’s existing products should Quartz
become successful, especially to Aquavalve, Aqualisa’s current flagship.

Alternatives and Analysis

1) Whether to target the plumbers
73% of consumer decision is derived from plumbers’ advice . Moreover, independent plumbers
installed 54% of mixer showers in the U.K. shower market . Therefore, plumbers become an
extremely vital channel of distribution for promoting Quartz as a mainstream brand. Despite their
resistance to electric showers, most plumbers found the Quartz installation easy and timely. This
paves the way to persuading plumbers to change their attitudes towards electric showers.

2) Whether to target the other channels of distribution

Trade Shops: Quartz models accounted for the highest profit margin in dollar sales (Appendix 1), as
trade shops could get at least €400 per unit of Quartz sold, vis-à -vis €335 from Aquavalve 609
(with the best margins). In view of this, it would be in the interests of the trade shops to adopt
Quartz, forming a major selling point.
Developers: As property developers are price sensitive, cheaper shower models such as
“Aquavalve Value” should be promoted to increase sales fo ...