8/10/2019 Case Analysis - Aqualisa Quartz

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Aqualisa Quartz: Simply a Better Shower

Problem Statement

Harry Rawlinson, the managing director of Aqualisa is faced with an interesting problem of selling the

Quartz showers. This shower is very innovative and solves problems of Plumber and end customer

beyond expectation. Rawlinson has the following questions to solve

(1)How to generate sales momentum?

(2)Was the problem that the Quartz priced too high? However he believes and he is reluctant to go the

discounted price route because his product is very niche.

Possible Alternatives

Rawlinson is debating on the following options:

(1)Targeting customers directly

(2)Targeting Do-It-Yourselfers

(3)Targeting Developers

Solution

We are proposing solutions where the major target audience is addressed.

Communicate Superior Value Proposition through better

advertisement

(1)The advertisement completely ignores the actual technical innovation (setting up of box remotely)

which should be directed at Plumbers as it is seen that 53% of purchase is either done by plumbers

or by customer's who take inputs from Plumbers. Half of the market remains un catered through this

advertisement.

(2)From a customer stand point, cost saving is not highlighted though the product is sold with a

premium. The cost comparison is as shown below

Traditional Shower vs Quartz

Cost of

Shower

Installation Cost Excavation Cost + Material

Cost

Total Cost

Traditionalshower(not in

low

segment)

675 640[ Cost of the labor= 40 perhour multipled b !6 (for "

das)#

!00(assumption as the $ase studdid not mention a %alue)

!4!5

&uart' 50 !60[ Cost of the labor= 40 per

hour multipled b 4(for !"

0 !0!0

8/10/2019 Case Analysis - Aqualisa Quartz

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das)#

Strengthen the eco system - Wooing Plumbers!

Installation by independent plumbers in this business constitutes53%of the market share (see

exhibit 5). It is very essential to concentrate on the current problems which the plumbers are facingtechnically and psychologically.

(1)A bungled installation often required a second visit by the Plumber and is paid out of the plumbers

pocket.

(2)Plumbers distrusted innovation especially if it involves electronics.

Aqualisa should inform & educate plumbers that if there is a bungled installation, then the technician

from Aqualisa will fix the problem at the customer location and not the plumbers. The sales persons

should involve plumbers at different places and ensure that they get a chance to try out the

installation of Quartz (road show). The plumbers should also be given incentives in terms of branded

tool kit to increase the loyalty.

Company

Company needs to marginally reduce the sales of the existing product and increase the availability of

Quartz. This would help customers to look for other available products of Aqualisa. However, there is

a risk that the customer may switch to another company if a product is not available.

Some people at the company had an opinion that Aquavalve which is the bread and butter of

Aqualisa will eventually be replaced by Quartz. The case study gives a negative tone while

presenting this information. Pestell, the National Sales Manager of Aqualisa needs to evangelize that

this is not a replacement product but Quartz has additional advantages.

Company should take initiative to install Quartz in public places like hotels, swimming pools where

the people get an opportunity to understand the benefit of Quartz.

Company also needs to take initiative to create brand awareness at the consumerlevel

Posted 9th May 2012 by - Neo