Aqualisa Case Analysis
Étude de cas : Aqualisa Case Analysis. Recherche parmi 300 000+ dissertationsPar zzzmg • 21 Avril 2020 • Étude de cas • 1 044 Mots (5 Pages) • 515 Vues
Aqualisa Quartz – Case study analysis
Executive Summary
40% of UK households do not have showers. Two main issues were identified in the shower installation in the UK: low pressure and fluctuations in temperature, furthermore usually 2 days excavations works were necessary by plumber to install a shower. Aqualisa’s team developed a new product – Quartz – which addresses both mentioned issues and furthermore no excavations were required. The shower was tested among sample of consumers and had positive feedback. The issue we are facing is that no sales are generated despite the advantages of the product.
We believe that the main opportunities are to select correct distribution and marketing channel and to address the right segment of the market. We recommend to address the final consumer via plumbers as they impact the decision for shower selection in about 73%. Furthermore we believe that brand awareness campaign has to be organized to highlight the quality of Aqualise’s product as the market is highly sensitive to any innovations and possible quality failure. The campaign should be again focused mostly on plumbers and professionals from the industry.
Analytical summary of the strategic situation facing the brand utilizing the 6 C’s.
Our analytical review is listed in the below attached table:
Insight | Implication | Recommendation |
Electric shower is far cheaper than Quartz. The electric shower costs 155EUR, Standard Quartz is 450% more expensive. | There is no competition with electric showers. The target segment is customers who buy mixer or power showers. | To target the Mixer and Power Showers segment (700,000 units sold in 2000). Not to compete with Electric showers as these are bought usually by customers highly price sensitive (value customers). Not to focus on DIY shops as distribution channel. |
Margin of 275EUR for Quartz Standard and 345EUR for Quartz Pumped Shower It is the highest among all the products | We need to sell at least 20,000 showers to have return for investment for the Quartz shower. Cannibalization is not an issue | In the year 2000 Aqualise had 37% market share in the Mixer and Power Showers segment, also primary focus on these 2 segments will bring fast return. |
Nearly 50% margins for retailers (margin about 400EUR for retailers per shower) | As the price is more than double of the traditional products and competitors' products, significant margin for retailers also they should be motivated to purchase the goods and promote sale. | To focus on trade shops and showrooms as retailers. Work closely with plumbers and to provide sufficient training to plumbers and sales people working in showrooms. |
Higher value despite the higher selling price as installation price is significantly lower (by 75% what represents at least 480EUR) than competition. | Superior value proposition | To promote the lower installation necessary and subsequently lower global price for the showers. |
Installation of Quartz takes 1/2 day and can be done by apprentices. | More showers can be installed, with better margins for plumbers and apprentices can be used. Furthermore less waiting time for customers. | Use that competitive advantage to communicate a win win partnership to plumbers |
40% UK households do not have showers | Potential market - new showers in existing houses (huge) | Conduct a study to understand why and how make them add a shower. |
73% of mixer shower selection is influenced by plumbers | Not possible to bypass plumbers | Work more actively with plumbers, offering discounts, trainings, incentives, etc. |
Concentrated market, main 3 players have 70% market share, Aqualisa is the 3rd. Aqualisa's relaltive market share to the leader was 0.6times. | Aqualisa is relatively strong player, but without brand awareness | To make better brand awareness - especially via trainings to plumbers. |
Shower market is not used innovations, very conservative market |
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Plumbers are loyal to a single brand, but once a plumber puts one quartz in, he’s a convert | Plumbers can become loyal to Quartz product and drive the sales volumes | Invest money/energy on converting plumbers |
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