Analysis Aqualisa Quartz Essay

Every company dreams that one day they idler bring something unique and very competitive, and use it to dominate the food securities industry. But things magnate non be as easy as they belief. In Aqualisa case, lay waste to Rawlinson, managing director of Aqualisa, gives us an example that even with new significant exhibitor product quartz, which seems to be perfect in every aspect, they can non make a relative progress in U.K. shower food market. crystal is designed to brighten all the troubles that exist in U.K. showers. It provides efficient and reliable water drag and temperature, needs less office in bathroom, has a stylish facial expression and is easy to use and install. Although lechatelierite leaps all otherwise showers, the initial gross sales results turned to be gloomy, as Rawlinson said For some reason, it simply wasnt selling.To reveal these reasons, we will inaugural look at the ecumenical shower market status, and then we will analysis two main(pre nominal) factors that cause Quart fail in initial Sales Quart itself and plumber. Finally, we will examine Aqualisas market dodging and find come 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 procedures Plumber and Developer. To give a brief summary, we will use some charts to border characteristics of these elements, and use it for latter discussions.As we can see, crystallization has 61% in Rate of return (manufacturer) and 47% in Rate of return (retailer), which is not the highest 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, concur higher Rate of return, but these product sell well in get segments. hence Quartz cannot be damned for overprice, at least it was no more expensive than Aqualisas other product. Besides, if we consider the installation speak to that saved by Quartz (2 eld to half day, with 40-80/hour), Quartz is even cheaper.So either 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 green groceries address. Besides, Aqualisa was generally recognized as having top quality showers, a pension brand, and great service, that re pieceation could make consumers form the idea that Quartz is middling another tribute product which is not cost- notionive. This misjudgment of Quartzs value is the true(a) reason that Quartz was not accepted in lower market. Thus lower Quartzs price would harbour less result if the misconception remains unchanged.To solve this problem, Aqualisa need more social movement to spread the idea that Quartz is economical and practical. Quartzs actor advertisement plan shows most of its progressiveness, like the picture in Exhibit-9, they enumerate all the priorities, make it even more like a superior product. They need to giv e some economy features such as the cost of installation, the durability of Quartzs gos, Quartzs life beat budget etc, and compargon Quartzs features with traditionalistic 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 about 73% shower selection are influenced by Plumbers. Yet Plumbers are wary of designing, particularly any innovation involving electronics, AKA Quartz. The negative impact of Plumbers attitude is obvious, and even Aqualisa employment face-to-face introduce and explain the new product to their very firm 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 live 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 useless. quite than evade the issue, lets face it straight Why Plumbers gibe Quartz and how to change it. The main reason that plumbers reject innovation derived from gamble of exposure aversion. Because unfamiliar products could present unknown performance problems, which will make plumbers break 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 inviolable benefits. As a matter of fact, Plumbers who puts one in, becomes convert. Thus Plumbers prejudice will disappear by time. By saying acceptance is a long, slow process Pestell, Aqualisa national sales manager, did not ca-ca 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 reta ilers, 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 elaborate to half day, reduce both their work inten drivey and work time. With this advantage, plumbers can do more jobs and be better off in more income. Aqualisa can also give more samples to plumbers or pass on non-loyal plumbers to install Quartz to clear former haze of electronics. With focused advancement plan, Aqualisa will make plumbers realize Quartz is favorable, and turn them into steady alliance.Strategy, uncovering or Mark time? Aqualisas former strategy is sloshed and comprehensive. They joined every segments of market and provided their products in all distribution channels. Their certain core product is Aquavalve 609, and they had been in the upper level in the market sha re (number two in mixing valves and number lead 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 status 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 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 frame 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 spatial relation 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 accredited products, may not be willing to take the risk of promoting Quartz. The risk comes from two sides first, the development of Quartz has already spent 5. 8 one thousand thousand and three years 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, relax and enjoy its current benefit? As we learn from Exhibit-2 (U. K. merchandise Share Data 2000), Aqualisa, had 18. 1% market share in tot up units change, 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, th e 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 kerfuffle between Aqualisa and market leader. With more than one competitor, Aqualisa could easily be replaced and expunge into masses. At this situation, even promoting new product could cost a fortune, Aqualisa assuage need a breakthrough and Quartz is just what the company need. On the other hand, the existing market structure gives Quartz sufficient space to outspread. If Quartz is good enough to assault Aquavalve 609s sale, it could also excite 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 endlessly, it will beat down others companys products and increase Aqualisas market share, and not only in U. K. market, it can move away to European markets or global markets, then the curren t promotion cost would be unremarkable. But if Aqualisa give up Quartz, the opportunity cost would be too big to accept. Rawlinsons worry will become true In five years time, someone else will have got the serviceman market for this technology.Then the Aqualisas experiences would be competitors field adjudicate and its former investment would contribute to others benefit. Conclusion citizenry usually consider that finding the goose is the hard part, but in fact, make the goose laid golden eggs 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 bring together everything together, including product (Quartz), customer, collaborator (plumber), market, make right decisions and build relationships.