Aqualisa Quartz Showers Market and Business Analysis

Aqualisa Qu rusez Showers Market and Business Analysis1 Introduction/Case study analysisAqualisa quartz pointer, the top, state of the art produce of the Aqualisa, was ordered in May 2001. crystal was the solution of the vivid merchandise research, dotty piece of engine room and design. The compatibility, remainder of knowledgeability and reliability were normal among the plumbers while the beautiful design, stability of temperature and ingenuous pressure do it type for the consumers. Unexpectedly, despite of the crystals unfounded features, it did not uprise the overwhelming victor that Aqualisa expected.2 Consumer BehaviourThe consumer behaviour with regards to its purchase of shower in UK was somewhat intricate and problematic. Only 60% homes had showers. Gravity-fed plumbing inculpatet slow water pressure (3 to 4 litters per min). Varying temperature was as well as a problem. The individual consumer trade had various priorities (see the set back (a) below) .44% of UK commercialise for shower was replacement shower. So there was a l remainder for durability. in like manner the do-it-yourself consumer was keener on convenience as well as value of the fruit. Property developers wanted a harvesting which they could use in their developing properties which should not only be cheap entirely fashionable and broad lasting as well. The plumbers played actually great occasion in the selection of showers for the consumers.Individual consumer market fell into tether set segmentsSegments Shop from PrioritiesPremiumShowrooms whole tone and designStandardPlumber recommendationsQuality and durabilityValuePlumber selectionConvenience and price conduct-in aDo It Yourselfers proffered to buy showers from BQ style chains, which were easy to install, despite of being bulky, within a day without any help.The spot developers needed fashionable an attractive design, cheap and which would work in multiple setting. Showermax was designed for t hem which were truly(prenominal) popular among them.The plumbers preferred the apparatus with which they were familiar to avoid repeat plumbing. The deprivation of trust in electrical shower because of previous un self-made person made them sceptical about electric showers.2.1 Market Players their StrategiesIn the UK the main players in terms of market share were Triton, Mira, Gainsborough, Aqualisa and Masco with 545,500, 390,000, 203,500, 122,000 and 120,000 sold units respectively.*Tritons simple system was to score sentience at consumer level. This strategy gave them an edge and as a result more trust was developed in the harvest-tide.They had range of all three kinds of shower e.g. electric shower, mixer shower and power showers, so targeting some(prenominal) segments.The distribution of the produces of particularly Triton and Mira, in all distribution bring was exceptionally well.2.2 Swot AnalysisThe following is the swat analysis of the Aqualisa Quarts.Strengths 5% to 10% market growthHigh tech harvestsShowers with better water pressures than the competitorsBrilliant, researched based designsInnovative reapings(e.g. lechatelierite)No 2 in mixing valve and 3 in over all UK market.Good usefulness provider general in plumbersElegant designs and Clever productsWeakness10% products tranquil goes incorrectShould be available in up to 90% of trade shop, show rooms and out lets.Weak merchandise strategy for Quarts as the gross bargains agreement hugs for Aqualisa spends 90% of term on maintaining existing account while the 10% on developing unused customersOpportunitiesbrand awarenessMaximum sales and profits in case of vitreous silica success.Market leaders in innovative showers productsRoad to sweet inventions and ideasLeave the competitors behindThreatsOther competitors undercover work up to Aqualisas product qualityPerception of the product as priceToo much focus on fundament thus outlay more money on inventions and ignoring core issues bid providing basic service to customers.(10% items still goes faulty)3 The Product development and launch process for Aqualisa QuartzAqualisa was a respectable connection with a 25% net pass on on sales and 5% to 10% growth in the market*. Despite the fact that the company was at the third position in the market as a whole and was considered respectable and reliable, it was feared by the company that the rivals may well beat them if they dont come up with something innovative and novel. The managing film director Harry Rawlinson organised (RD) Research and Development team of Aqualisas sales and marketing Directors, market researchers, Cambridge scientists, and top industrial designers*. All the experts finished brain storming and market research came up with the idea of the product which involved a downcast apparatus installed remotely in order to mix water. This idea was precise powerful as the product installation wouldnt require excavation. After feedback fro m the 60 consumer field test sites and three years of development and expenditure of some 5.8 trillion Quartz was developed. It cost the company from 175 to $230 to make*.The Aqualisa was launched in the major showrooms like Bathroom exposition in London in May 2001 and was awarded fist prize. There were good and positive reviews about the product in the sunrise(prenominal)s covers. The fact that the product had good flow of water, very convenient and fast to install and accurate temperature control made it a popular product. Quartz was on the covers of major trade journals. There was a single time add break loose in news paper on Sunday too.3.1 Positioning Strategies and Marketing mixThe positioning strategy of the Aqualisa quarts was complicated. Following chart would show some pros and cons of the Positioning of the Quartz.PositioningProsCons1 Targeting Consumer DirectlyIf the consumers were targeted directly there was a good chance of the revivification and an increase in the sale of the product at a time aware of the advantages of the product. verify /influence the plumbers to use the Quartz.The advertisement would cost 3 to 4 million in two years2 Targeting Do It YourselfersQuartz was so easy to install that anybody could do it easily, so if advertised to d.i.y market could be beneficial.If advertised as premium value product the partner like BQ could help boost the advertising campaign too.If the item was associated with the d.i.y products it would never befool its premium position.It was too good to take place of value product.2 Targeting DevelopersLarge- volume channelDevelopers would enforce more plumbers to install quarts so plumbers would get more confidence about QuartzNever accepted Aqualisa product level(p) at 50% discountNo guarantee that trim price would defiantly attract them.Table cMcCarthy (1999) classified the tools that pay the Marketing mix, into four famous Ps Product, Price, power, and Promotion.In case of Aqualisa Quartz a s a Product it was a angry piece of technology and art. It was ticking all the boxes for what the consumer wanted. The plumbers regarded it as a wonderful product because of the ease of installation. It was innovative, state of art product.Quartz was premium Priced. The price was high because of the Quartz being innovative and state of the art product. It wouldnt be long when the competitors would be following the same route and may price their product even higher, so fitting because the Quartz did not get the overwhelming success in its first phase of launch, the price should not be reduced.Place the Quartz was distributed to various channels e.g. trade shops and showrooms etc. There were a good number of plumbers working for Aqualisa who were also introduced to the product. They loved the ease of installation as it took half a day to install. In spite of that very few sale were made.Promotion the product at the time of launch was exhibited in London in May 2001 at Bathroom expo. It was disposed first prise for being a fantastic product*. Similarly a single time add in the mail on Sunday magazine was run. Major news papers and trade magazines had it on its front pages. Still the promotion was not enough to make the product successful as it failed to target the potential buyer.4 Reasons of Failure of Aqualisa Quartz in the initial phaseThere were many reasons to the failure of the product despite its fantastic qualities and innovations. Some of the reasons are listed below.The Quartz was an innovative and fantastic product but it was considered an expensive product. Although the price was high but the product deserved a higher price being so typical than traditional products in market.The twenty sales personal would spend specified 10% of time on gaining new customers while 90% on maintaining old customers. Obviously more than 10% of time was required to make headway new customers.Reluctance of the Plumbers to accept electric showers due to previous fail ure of the electric shower so they were eager to try Quartz. Consumers often had to force the plumber to install the Quartz for them. But once they installed it they were born-again and were convince that it was a brilliant product.Weak positioning also created a hidden image of the product as the plumbers were sceptical and the individual consumers were not richly aware of the advantages the product was offering.The Marketing mix of the product was also not perfectly well executed as the item was although available done main channels but little work was done on the promotion of the product. At the time of launch it was exhibited at the London Expo and it won the first prise and it was on the front pages of trade magazines, still it was not enough. Intense marketing at individual level was also required for the awareness and promotion of the product.4.1 Strategies to come to the productFollowing strategies could revive Quartz.Segmenting the market and Targeting the self-direc ted plumbers which constituted the 54% of the UK market*, was of core importance. A vigorous marketing was needed to target them. The plumbers were sceptical of using the electric showers but once they used Quartz they were converted. Targeting 54% of the market could be really beneficial for the company.Following this strategy the Quartz coulddominate as a successful product up to 90% of plumbers who made blow% of decision for 54% of market in the.change the perceptions of the consumers particularly property developing market which constituted 20% of the UK market (source Aqualisa). Once the independent plumbers were converted then that would eventually change the status of the product as a reliable and efficient.Availability of Quartz in max no Show rooms, Trade shops and D.I.Y sheds.According to the UK shower market in 2000, sum electric shower units sold in show rooms was 55,000 *. It was important to make sure that the Quartz is present in max no of showrooms and.Similarly 33 0,000 electric units were sold by the trade shops and a good no of plumbers were working for these shops*. The presence of the product in the trade shops would mean better chances of exposure to the consumer.The D.I.Y sheds like BQ could promote the Quartz as a premium high quality product with the benefit to install independently. The sale of electric shower in UK at D.I.Y sheds in 2000 was the max i.e. 550,000*. If the product was placed in the D.I.Y sheds with the help of BQ promotions it could get the success it deserved.Launch an intense marketing campaign was vital to target the consumer directly. Once the product is successful the profit would cover the costs of marketing. Only one time add in magazine is not enough. Electronic media e.g. TV and radio should run advertisements for the product.Microsoft launched a massive $500 million marketing campaign, when it introduced the original Xbox, promoting the new product through in store merchandising, retailer incentives, events and sponsorship in supplement to traditional advertising. (Alice z. 2004)Position Quartz as a family product. In the showrooms once the individuals with families had a look, they bought it as it was perfect and gumshoe for all ages. Targeting the consumer directly through advertisement would let the families realised that the Quartz is a family need.Brand awareness would attract the families, plumbers, D.I.Yers and property developers as they would become aware of the product benefits. loose high price by emphasising the qualities of the Quartz.Promotional low prices temporarily for the new buyers particularly the property developers. Once they plumbers used the product they were converted. So by low promotional prices would attract massive audience who could be converted as well.To increase the 20 person sales force. To increase from 10% to at least 50% of time to spend on new customers attainment.5 ConclusionAqualisa Quartz despite of the fact that it was a fantastic product, it failed to achieve the success it deserved in the beginning. The product was such an innovation that it should have made records of best selling product. The push button technology, ease of installation, stable temperature and ideal water pressure made it ideal shower. It was safe to use with children as well as with elderly. Aqualisa was expecting huge sales but the results were rather disappointing when there were only few sales in the first phase.Robert Lauterborn (1990) suggested that the sellers four Ps correspond to the customers four Cs.Four Ps Four CsProduct customer solutionPrice Customer costPlace ConveniencePromotion Communication.The Quartz was a fantastic Product and it was offering perfect customer solution. Similarly the price was just ok for the product as it was one in all products. And customer would pay high Price for an item if it is fit for purpose and providing the extravagance at the same time. Thats when the Promotion comes in. But at the same time Quartz n eeded wright positioning and good marketing to attract the consumer. The product was available through trade shops, Showrooms and D.I.Y sheds. The plumbers working for the Aqualisa were also introduced to the product. Still more was needed. So if all the strategies listed above are tried, it should not take long when the Quartz would be on its way to success.