Course: MKG631 AB Strategic Marketing

Instructor: Mark Parker

Report by: Olivia Singh

Case Study Summary 4: Aqualisa Quartz

Situation Overview:

Aqualisa is a prominent U.K. shower manufacturer. The company has introduced an innovative

product in the market called the Quartz shower. The innovative aspects include better quality,

cost, and an easier installation process. The Quartz shower was received positive responses from

the plumbers as well as the consumers at the product testing stage. Yet, the sales of the product

seem to fall short of its initial appreciation from the buyers. Aqualisa now has to alter its

marketing strategy in order to increase the sales of the Quartz shower and generate profit.

Problem Identification:

Product:

At present, Aqualisa is not able to generate enough profits from the Quartz showers. The

company could offer bulk pricing at a discounted rate to construction companies and developers

who build residential units. In the long run, the company will be able to increase its sales,

generate customer loyalty, open up avenues for future long-term partnerships, and increase its

market share. Over time, this would also help in strengthening the market position of the

company.

Pricing:

At present, the company does has an edge over its competitors in terms of the innovative features

it offers in the Quartz showers. At the same time, the company has high brand awareness where

it could charge a little higher than its competitors. Aqualisa should implement the Good Value

Pricing strategy. The company should emphasize the value of its innovation and combine that

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Course: MKG631 AB Strategic Marketing
Instructor: Mark Parker
Report by: Olivia Singh

with its good repute in the industry. This way, the company maintains its premium status and still

manages to offer prospective customers value for their money.

Place:

Aqualisa should implement the Hybrid Distribution System in its distribution of the Quartz

showers. In order to access the market at a deeper level, the company should not only enhance its

own online distribution channel but also invest in outsourcing logistics, warehousing and other

tasks that do not require key decisions. Instead, it should come up with an agreement to have the

third party fulfil certain duties contractually, while the key decisions remain with the company to

make and have them implement.

Promotion:

In Aqualisa’s case, promotion and marketing should take place via direct email marketing. This

way, the company will be able to reach its target audience in a highly personalized manner.

Further, this might also the customers become familiar with the company to not just its products

online but also be able to recognize it in physical stores. Another added advantage is that direct

email marketing will allow the company to increase its foot traffic at trade shows and/or industry

events. Direct email marketing also allows the company to survey its potential and existing

customers and modify its product offerings accordingly.

In addition to direct email marketing, Aqualisa should allocate some portion of its marketing

budget to have a third-party agency do its Search Engine Marketing. This way, the people who

receive the said emails in the form of newsletters and/or promotional material, will be able to

read more about the company and purchase their products. Further, the company can harness

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Course: MKG631 AB Strategic Marketing
Instructor: Mark Parker
Report by: Olivia Singh

these customers’ search history to provide targeted advertising to them. This is especially helpful

during the residential construction and/or renovation season.

Decision:

Aqualisa should use the hybrid distribution model to change its distribution channel. The

company should collaborate with other channel partners who already have favourable

positioning in the market. This would allow the company to increase its market share and

strengthen its positioning, all the while reaching its target market. Further, Aqualisa should

manage key processes in the manufacture and distribution of the product at its headquarters. At

the same time, the company should outsource things like logistics, warehousing, store

management to other third parties. This would reduce the operational costs for the company. The

company should also develop a mobile-friendly advertising platform where it could reach its

millennial target demographic.