Aqualisa Quartz Case Study Solution
Abstract
The case illustrates the product development strategy of Aqualisa Quartz, a shower manufacturing company. Over the period of time, the company has developed the premium marketing strategy in catering the 40% target population of the UK market. Since majority of the population consumes the Tubs, the market for showers is very limited.
In addition to this, the company though devised the breakthrough products in the market;it; is still striving to achieve great sales margins and sales quota in the UK market. However the issue of pricing seems to be the hindering factor in pursuing the high sales volume.
In the recent period, the company has devised new shower model that has reduced the installation time to 1 day and has enabled the users to even install the system themselves. Such innovation in shower has developed a strong surge for the product, however, the company is still facing the issue of low or not up to expected sales quota in UK market.Though, the new product has addressed the two key issues of the customer that is pressure and temperature of the water in showers, however still the company is fighting the issue of low sales. In such situation, the company is to develop and identify such strategic plan to cater the customers and to deal with the ailing sales.
Keywords: Competitive Edge, ailing Sales, Innovation
Introduction
The UK market is generally held by two types of bathing range (Tubs and shower).Almost majority of the market is held by the tubs about 40% of the UK market install showers for the usage, having said that, the markets are catered either through by electric showers, Mixer shower valve and integral power showers. These three types of showers under different feature have been offered to the UK markets.Since the major issue using shower occurs are of pressure and temperature of water, different models have been devised to address the market gaps.
However even after addressing the market gaps, Aqualisa Quartz under the leadership of Harry Rawlinson is still facing the low sales.The company established its stance in shower industry in late 80, over the period of time, it incorporated different technology and invested in research and development to design unique and innovative shower products for the UK population. In the current scenario, the company has developed the Quartz shower range, that on one hand is easy to install and can be installed through DIY, while on other hand has offered the right mix of pressure and temperature of water with effective shaft placement and space management. However, still the company is facing issues in achieving the right sales margin in the UK market.
In offering the shower range, the UK market has three tiers namely premium, standard and value, the Quartz lies in the Premium tier of the industry.In such situation, even after the development of the right product with innovation and strong market integration, the company is not picking up the sales.Such trend is positing a challenge to Rawlinson in developing a right marketing plan to engage customers with the brand and to gain the increasing market share.
Aqualisa Quartz Harvard Case Solution & Analysis
Analysis
Value Proposition to Plumbers
Since Quartz is an innovative product with high tech aesthetic design, it offers great value to the plumbers.Due to its easy technology, the plumbers can easily fit the shower,with low labor involvement, and in approximately 0.5 part of the day, which is 25% of the old time required to fir the shower. Such ease and efficiency offers the plumbers the value in dealing more customers in one day, hence gaining more profits, along with the advantage of getting the shower fixed from the junior or apprentices.It is due to the fact that since Quartz has introduced an easy style, the knowledge required to fit the shower has been reduced, making it an easy job..............
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