Case study

Aqualisa Quartz: Simply a better shower

Q1. What is the Quartz value proposition to a) consumers b) plumbers?
Ans. Aqualisa, a U.K. based shower manufacturing Company had launched its premium
brand Quartz in May 2001. The Company has been very reputed in the U.K. market for its
top quality showers, reliability and great service. The basic purpose behind launching this
brand was to address the concerns of the consumers and the plumbers which perhaps were
not satisfied with the existing products in the market. Stated below are the issues faced by the
consumers and the plumbers and the value proposition offered by Quartz:
a) Consumers: Consumers were typically not happy with the kind of showers that were available
in the market as revealed by the market research conducted by the Research and Development
team of Aqualisa. The consumers wanted a shower that looked elegant, delivered water flow
at good pressure, had a stable temperature, was easy to use, do not break down easily, have
valves that do not become stiff and hard to turn after a period of time and dont require
servicing very often. Also, they did not want the big bulky boxes installed for the mechanical
control right over their shower wall.

Inorder to address these concerns, Aqualisa launched its new product Quartz for providing a
solution to the problems faced by the consumers apart from having certain added features.
The Quartz, being elegantly designed was easy to use. It gave an option to consumers to run
at two-third speeds so that water flowed under the desired level of pressure. It provided the
user to take shower at the optimal water temperature which is comfortably hot as the
temperature control is automatic. The easy-to-use push button was an added advantage. The
button had a light which flashed red until the desired temperature is reached. Also, no
excavation of the shower wall would be required as the mechanism for mixing the hot and
cold water can be installed remotely. The fitting could be done in half a day, hence the
consumers wont have to wait for a longer time for the plumbers to come and install it. Thus
for the consumer, the Quartz shower provided efficient and reliable water pressure and
temperature control, had neat fittings and was safe for use.

b) Plumbers (Installers): The plumbers distrusted innovation and were comfortable with the
shower they had been installing all these years. They had a notion that unfamiliar products
result into unknown performance problems and would often require a second visit to fix up
the problem whose expenses were to be borne by the plumber himself. This made them
extremely reluctant to switch brands and they became experts at doing their routine work of
fixing one particular brand of shower.

Hence, the R & D team of Aqualisa developed the Quartz brand which is not only end user
friendly but pleases the plumbers too. They addressed the issues faced by plumbers by
making a shower that could be installed simply by drilling a single hole into the ceiling above
the shower. The task required only half a day and could be accomplished by even the novice
plumbers. It helped to avoid excavating the walls. Also, the Aqualisa sales force took efforts
in demonstrating to the plumbers to make their job easy. Thus, the push-fit-connect kind of
shower was acceptable to the plumbe
Q2. Why is the Quartz shower not selling?
Ans. The Quartz brand launched by Aqualisa was proposed to appeal the consumers as well as the
plumbers as it had features that could suit both the groups. However, the euphoria surrounding the
products initial launch had quickly faded. In the first four months itself very few units of the product
had been sold despite being available in all of Aqualisas normal distribution channels. The reasons as
to why the brand could not carve a niche for itself in its initial stages of being launched could be
enumerated as follows:
1) Being a premium product, the Quartz shower was priced between 850 Euros to 1080 Euros
which was very high compared to other brands of Aqualisa. Thus it was not affordable to
consumers other than those in the premium segment. Also, the developers who thought
Aqualisa core products to be expensive were sceptical about buying the new product despite
being offered heavy discounts. The developers would have been a better market for the
product as they would force the plumbers to install a product of their choice.

2) At the launch of a new product, generally Companies lower their price for better market
penetration. However, this aspect was not liked by the Managing Director of Aqualisa as he
was of the opinion that Quartz is a premium product. This could have barred the Company
from marketing their product through Do-It-Yourselfers who are their discount channel.

3) The plumbers are usually wary of innovations and perhaps did not favour the idea of
installing an electronically devised shower. Reluctance on their part to install the Quartz
shower even on the insistence of a consumer did not help in pushing the sales of the product.

4) The Quartz shower had better features which could be exemplified after being compared to
any other existing brand. However, adopting this strategy would have hurt the sales of the
existing products.

5) The sales force of Aqualisa concentrated more on servicing the existing customers rather than
developing new ones. As the product is well designed and does not have much issues after
being installed, the sales force could have focussed on extending their customer base by
explaining the features and benefits of the product to potential customers

6) Also, the product was sold through tradeshops which did not have time to learn and explain
the advantages of such a valuable product to the end consumers. This would have hampered
the sales as the consumers were probably unaware of the features that Quartz shower has in
comparison to other brands

7) The Aqualisa brand was sold only in about 500 showrooms out of the 2,000 showrooms in
U.K. This reflects poor market penetration as showrooms are the place where the premium
segment usually shops. Thus a high end product such as Quartz should be made available at
locations where there are more chances of it being purchased.



Q3. Aqualisa spent 3 years and 5.8 million Euros developing the Quartz. Was the product worth the
investment?
Ans. Innovations are primarily cosmetic and dont lead to real breakthroughs. Any Company may
generally relaunch its product every three to five years with certain changes and keep its brand
awareness among customers. However, the investments made in incremental technological
improvements are worth investment if the product is able to achieve the expected sales during the
initial period of the launch as it creates an impact in the minds of the consumers and is able to break
even within a short period of time.
Going with the current sales of Quartz shower of 15 units a day, the Company could probably recover
the amount spent on its research and development with a time period of 3-4 years. If the Company
could promote the sales of the product to atleast 50 units a day it will be able to achieve a break even
within the next two years. The product developed has features which are still unique in the market.
The product could not make it to the expected level of sales due to lack of proper marketing strategies.
However, this does not make the product not worth investing. As opined by the Managing Director of
the Company, the Company has two years of time within which it has an competive edge over other
brands in the market after which competitors would come with similar products at lower prices. It can
promote the product in suitable manner and obtain the desired level of sales.
It the products picks up again within a few months, the Company will build up higher reputation in
the market and enjoy a better market share. Going by the sound financial position of the Company so
far, a little burden on the income in the initial stages of a new product launch does not make the
product unyielding.














Q4. What should the Company do with Aqualisa?
Ans. Since the launch of the new product Quartz, the sales have not been up to the desired level.
However, an analyses of the situation has revealed that the problem lies in the marketing strategy of
the Company and not in the product itself. The Company has a competitive advantage in the market
and should use it optimally to create and enhance brand awareness. Following are the ways in which
the marketing strategy can be improved.
1) As the product is easy to use and install, the Company should market it to the end consumers
directly. The sales people can make the consumers aware the products unique features and
benefits. They can be made to understand that buying such a better product at a little high
price can reduce the after sales servicing costs.

2) As far as the plumbers are concerned, there should be more free trials and demonstrations to
help them understand the easy method of installation required for the quartz shower. The
plumbers once positive about the product would always prefer it. Approximately 73% of the
consumers are influenced by the plumbers for installation of a shower. Thus, promotion with
the plumbers would help in better market penetration.

3) The developers who are of the opinion that the Aqualisa brands are usually high end products
should also be made to realise the performance and flexibility of the product. If they can be
influenced, more number of plumbers will have to install the Quartz shower.

4) Since the product is priced at a relatively higher end and is targeted mostly to premium
segment, it should be displayed on the shelves of more number of showrooms. Because of the
working displays in showrooms, people generally become aware of the products usefulness
and instantaneously make a decision to buy the product.

5) Thus, the Company should promote the new product in an effective manner and at the same
time also concentrate on its existing products so that their sales do not get hampered.