8/8/2019 Analysis OfAqualisa

1/3

Analysis of Aqualisa Quartz

Major decisions issues in the case:

Aqualisa, a shower manufacturing company in the UK, launched an innovative product

Quartz in the May 2001. This is differentiated from the existing range of showers as it useddigital technology for showers to answer to the problems of existing range of products.

The company had presence in all the three types of showers presently sold in the market namely

Electric Showers, Mixer showers and Power showers. While it promoted 96% of Electric

Showers under the brand name Gainsborough, the other two varieties were predominantly sold

under the brandAqualisa (83%). All the three types had inherent advantages and disadvantages.

The Electric showers were the lower end sold in three versions and it accounted for 57% of the

total units sold (both Gainsborough and Aqualisa combined). The Mixer showers were largely

marketed by Aqualisa as Aquavalve and Aquavalve 609. The Aquavalve was the core product

and it was top selling shower as it was regarded as high quality reliable shower by the plumbers.

1. Innovation to capture market:Product - Quartz

The present types of showers were age old products and the innovations in the product were only

cosmetic. Mostly the basic shower remained the same and the products were recycled and re-

launched every four or five years to refresh the brand and did not impact prevailing market share

pattern.

There were problems with the existing range of products and it is evident from the sales figures

which indicate that 44% of the sale is attributed to replacement showers. The Two main

problems encountered by the consumers were

a. Poor pressure as most of the showers were gravity fed the flow rate varies with the level ofwater in the Cistern.

b. Varying temperatureHowever, there were other problems like for consumer Stiff valve, leaky seals and worn out

shower which broke eventually, bulky unit installed just above the shower made bathroom

unappealing; for plumbers - difficulties in installation viz., excavation in the bathroom leading to

delay upto 2 days, easy to use technology requiring less experience.

Aqualisa Quartz addressed all the above problems effectively using the digital technology. Thepump attached to the unit which is installed outside the bathroom provides adequate pressure.

The temperature setting ensured that there was no fluctuation in the temperature. The unit

(remote processor) was sleek (was of the size of shoe box) and only a single hole was drilled to

route the pipe carrying mixed water from the processor to the shower. The digital valve

eliminated manual valves which were mostly leaky or became stiff due to scaling after regular

use. The installation took less than 2 hours and required no excavation in the bathroom. The light

8/8/2019 Analysis OfAqualisa

2/3

attached to the unit indicated the readiness of the shower. The product had WOW factor.The

product was well developed. In total the product is well differentiated and is an excellent

innovation.

Pricing:

Though the pricing is higher, the additional features in the shower justify the premium charged.

Hence the pricing of the product doesnt require much attention. Although incentivizing the

channel partners will improve the sales, the MSP for the product can be retained and the margin

to the company can be reduced initially to capture the market.

Positioning:

The products are sold through three major channels Trade Shops, Showrooms and Do-It-

Yourself sheds. DIY accounted for 50% of the sales in electric showers while trade shops were

the leaders in selling mixer shower a product which is close to QUARTZ. (Exhibit 6)

Though there is a fear that Quartz would replace Aquavalve, the product is capable of retaining

the market share if not capture more.

The Plumbers being the major decision making factor in choice of the shower need to be

convinced. Presently, the plumbers play a role in selection of shower in 73% of the cases as

compared to 27% by consumers as indicated in Exhibit 5. However, educating the consumers

through campaigns and advertisements will generate more visibility of the product and can

improve the sales.

As such the technology is nascent and would definitely require time to penetrate the market.

Promotion:

The added features of the product like increased safety can be used to promote the product. Since

the kids could use the product without parental supervision. Similarly, the product will also suit

the elderly consumers who find it difficult to operate the stiff valves.

The Plumbers who are the most influential in the sale of the product can be roped in for

promotion. They can be given incentives for choosing Quartz over other models. Training

programmes, clinics can be held for them to reduce their delay in adoption.

The marketing strategy therefore should focus on establishing the brand through

1. The plumbers2. The consumers directly

The Developers will be price sensitive and hence would be reluctant to buy and would not give

the necessary push to achieve the required target sale of 200units. They can be targeted once the

8/8/2019 Analysis OfAqualisa

3/3

brand is established. The DIY, similarly, is again very price sensitive segment and hence may not

give adequate thrust to the product sales.