Analysis Aqualisa Quartz Essay Example for Free

Analysis Aqualisa cryst totallyization EssayEvery comp whatsoever dreams that one day they can select just ab stunnedthing unique and very competitive, and use it to dominate the grocery. merely things might non be as easy as they thought. In Aqualisa case, Harry Rawlinson, managing director of Aqualisa, authorises us an example that correct with new significant shower harvest-time lechatelierite, which seems to be perfect in every aspect, they cannot make a relative progress in U.K. shower trade. quartz is designed to solve all the troubles that exist in U. K. showers. It provides efficient and reliable water pressure and temperature, needs less space in bathroom, has a stylish looking and is easy to use and install. Although crystal leaps all former(a) showers, the initial sales results turned to be gloomy, as Rawlinson said For some reason, it simply wasnt selling.To reveal these reasons, we de berth runner look at the general shower market status, and and then we will analysis twain main factors that cause Quart fail in initial Sales Quart itself and pipe fitter. Finally, we will examine Aqualisas marketing strategy and find out what is the right thing to do.Shower market in U.K. The U.K. shower market has 3 distribution channels, 3 buyer segments, and 2 Special roles Plumber and Developer. To give a brief summary, we will use some charts to demonstrate characteristics of these elements, and use it for latter discussions.As we can see, Quartz has 61% in Rate of replication (manufacturer) and 47% in Rate of return (retailer), which is not the high gearest among other products. And we notice that Aquavalve Value, which is in value segment, and Aquaforce 1. 0/1. 5 Bar, which is in Standard segment, have higher(prenominal) Rate of return, but these product sold well in get down segments. Thus Quartz cannot be blamed for overprice, at least it was no more than expensive than Aqualisas other product. Besides, if we consider the installati on bell that saved by Quartz (2 days to half day, with 40-80/hour), Quartz is even cheaper.So any the price was not the reason, or the price was misunderstood. Consumer could be blinded by Quartzs high retail price and ignore its relatively high produce cost. Besides, Aqualisa was generally recognized as having top quality showers, a premium brand, and great service, that re regulateation could make consumers form the theme that Quartz is just another premium product which is not cost-effective. This misjudgment of Quartzs value is the true reason that Quartz was not accepted in lower market. Thus lower Quartzs price would have less result if the misconception remains unchanged.To solve this problem, Aqualisa need more effort to spread the idea that Quartz is economical and practical. Quartzs former advertisement plan shows most of its progressiveness, analogous the picture in Exhibit-9, they list all the priorities, make it even more like a premium product. They need to give s ome economy features such as the cost of installation, the durability of Quartzs get arounds, Quartzs life time budget etc, and compare Quartzs features with traditional showers, to remind consumers that Quartz values for their money.Plumber, Friend or Foe? Plumber is an important role in shower market. Exhibit-4 shows that nearly 73% shower selection are influenced by Plumbers. Yet Plumbers are wary of innovation, particularly any innovation involving electronics, AKA Quartz. The negative impact of Plumbers attitude is obvious, and even Aqualisa calling face-to-face introduce and explain the new product to their very trusty plumbers, nothing changed in short term. Rawlinson was so desperate to plumbers that he thought about abandon plumbers and target consumers directly.Considering the plumbers high clout in current market share, and Aqualisa already have high market share (70%) in Do-It-Yourself Sheds which target consumer directly, give up plumbers would be ineffective and use less. Rather than evade the issue, allows face it straight Why Plumbers oppose Quartz and how to change it. The main reason that plumbers reject innovation derived from risk aversion. Because unfamiliar products could present unsung performance problems, which will make plumbers pay money and time to adjust. Former failure case like push-button controls in 1980s had Strengthened plumbers stubborn.But Quartz has no substantive contradiction with plumbers, on the contrary, its easy to install and operate that could give plumbers substantial benefits. As a matter of fact, Plumbers who puts one in, becomes convert. Thus Plumbers prejudice will disappear by time. By saying Adoption is a long, slow process Pestell, Aqualisa national sales manager, did not realize that they do have some ways to speed up the process. In fact, it seems that Aqualisa did not consider plumbers as a distinct important part in their sales. They barely treat plumbers like consumers or retailers, told plumbers how excellent or advanced Quartz is.But what they should do is telling how good Quartz will do to the plumbers themselves. They could show plumbers the contradistinctions in installing Quartz and traditional showers, and emphasize that Quartz will make their daily two days work to half day, reduce both their work intensity and work time. With this advantage, plumbers can do more jobs and be better off in more income. Aqualisa can too give more samples to plumbers or pay non-loyal plumbers to install Quartz to clear former haze of electronics. With focused promotion plan, Aqualisa will make plumbers realize Quartz is favorable, and turn them into steady alliance.Strategy, Breakthrough or Mark time? Aqualisas former strategy is Steady and comprehensive. They joined every segments of market and provided their products in all distribution channels. Their current core product is Aquavalve 609, and they had been in the upper level in the market share ( bod two in mixing valves and number three in the overall UK shower market), only surpass by triton and Mira (Exhibit-2). When Quartz joins the family, it did not have a clear lieu among other siblings. Actually, Aqualisa showed no clear expectations in Quartzs performance.They just spread it to whole market and hope it can dominate. This pointless strategy makes them unconscious(p) to the market response thus they make no effective action when sales encountered difficulties. Even if their final target is the whole market, they could build milestones and interim objectives like enter the high-end market then extend to lower market or simplify the product to catch the lower market with low price then release advance model to premium user. Either way, the company should have a more specific positioning and targeting plan to meet the companys expectation.Despite the former marketing strategy, Aqualisa now need to decide their next move. Rawlinson showed his trepidation that Aqualisa, which is profitable with its curre nt products, may not be willing to make for the risk of promoting Quartz. The risk comes from two sides first, the development of Quartz has already spent 5. 8 jillion and three historic period times, further promotion could cost 3-4 million more. Its hard to stay profitable with this huge investment. Second, the Quartz has competition effect with companys Cash Cow product Aquavalve, which also put companys stable market share and benefit in uncertainty.The risk of launching new products is inevitable, but is it possible that Aqualisa can sit back, unleash and enjoy its current benefit? As we learn from Exhibit-2 (U. K. Market Share Data 2000), Aqualisa, had 18. 1% market share in total units sold, while Triton and Mira were 30. 3% and 21. 7%. In the Electric Showers category, which Aqualisa sold most, the market share was 16. 9% while Triton had 43. 5%. And in Mixer showers category, where core product Aquavalve 609 rest, the market share was 20. 8% while Mira had 36. 4%. With these figure, we cannot say Aqualisa is in a safe place.They did not have domination in any part of the market, and there were significant gap between Aqualisa and market leader. With more than one competitor, Aqualisa could easily be replaced and fall into masses. At this situation, even promoting new product could cost a fortune, Aqualisa still need a breakthrough and Quartz is just what the company need. On the other hand, the existing market structure gives Quartz decent space to outspread. If Quartz is good enough to assault Aquavalve 609s sale, it could also shake the leader position of Triton and Miras products.If Quartz is, as Rawlinson said, first significant product innovation in the U. K. shower market since forever, it will beat down others companys products and increase Aqualisas market share, and not only in U. K. market, it can move forward to European markets or global markets, then the current promotion cost would be unremarkable. But if Aqualisa give up Quartz, th e opportunity cost would be too big to accept. Rawlinsons worry will become true In five years time, someone else will have got the world market for this technology.Then the Aqualisas experiences would be competitors field test and its former investment would contribute to others benefit. Conclusion People usually consider that finding the goose is the hard part, but in fact, make the goose laid golden bombard is also not easy. Aqualisa holds its goose named Quartz, and shows us such an example. This case also told us its not only about what we have, its more about how to connect everything together, including product (Quartz), customer, collaborator (plumber), market, make right decisions and build relationships.