DISTRIBUTION MANAGEMENT

AQUALISA QUARTZ: SIMPLY A BETTER SHOWER

CASE ANALYSIS

GROUP - 25 (DTMT3)

Ayush Daruka14F514

Debalina Ghosh14F518

Divya Naik14F519

Jagati Manne14F523

Q1. What is Quartz Value proposition to?

Consumers

Efficient and easy to use Reliable water pressure of water flow Safe to use for children

Neat fittings

Easy-to-use push button

Mixing system of hot and cold water is installed remotely. One touch control

Light indicator

Greatly designed

Automatic temperature control

Great servicePlumbers Easy and took less time and effort to install

More profitableQ2. Why is Quartz shower not selling (to its potential)?

Expensive to buy for customers in non premium segment. Customers are price sensitive

Smaller sales force. Sales force concentrated more on services rather than adding on to the existing market and expanding the customer base Plumbers dislike changes and prefer electronic showers

Shower break down

Less understanding of product features and options Product sold through trade-shop that did not explain the benefits of the product to the end consumers resulting in low awareness of the product Poor market penetration at the starting stageQ5. What should Rawlinson do to generate sales momentum for Quartz?a. Should he change his marketing strategy and target customers directly or target the developers or the DIY retail outlets?b. Should he lower the price?c. Or something different altogether?

Although Quartz has all the features and needs that customers want but still the new product is not able to pick up sales momentum. The features of Quartz are: -

1. A single hole drilling required in the ceiling(Easy process for DIY sector)

2. Efficient and dependable water supply

3. One-touch control

4. Better design and appearance

Following can be the possible problem for low sales

1. Plumbers are wary of technology

2. Low awareness of product ( few promotions)

3. Its expensive

Rawlinson can explore the following options, as far as it marketing strategy is considered, to increase the sales momentum of Quartz

a) Target customers directly:Targeting customers directly involves huge investment in advertisement and promotion. Through this option the company will also loose the major influencer in buying showers i.e. plumbers.

b) Target DIY outlets:DIY customers are the ones who buy low priced showers and are unwilling to pay the premium amount because of the look and appearance of the shower. To target this segment first the company may require huge amount of investments in advertisement to alter the brand perception of its customers.Pros for this option is that company can leverage on the already set distribution channel for Gainsborough.

c) Target Developers:This option will be a good marketing strategy to go with as it will force plumbers to familiarize themselves with the product. It will also make it less costly for Aqualisa and also sell in large volumes. One current problem could be that it only represents 15% of the market.

As far as price is considered, Aqualisa shouldnt lower its price because the price is in accordance to the value and benefits that it provides to both plumbers and customers.

A different potion could be to target the Trade shops and plumbers. This option is feasible for the following reasons:-

1. Plumbers will get interested as it increases their installation efficiency by 4 times and makes them 2 times more profitable.

2. Trade shops represent 46.7% of the UK shower market

3. Product awareness and its benefits will eventually increase.

4. Minimum expenditure in advertisement.

Hence we would recommend Aqualisa to go with targeting trade shops and plumbers.