Aqualisa Quartz: Simply A Better Shower Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Analysis

United Kingdom shower market

The shower market of UK was under crisis as the customers were often complaining about the pressure of showers and fluctuations in temperature of water.Apart from this, the customers did not like the breakdowns in showers and leakages.In addition, 60% of the population has showers in their bathrooms.

aqualisa quartz case solution

Most of the customers were uninformed about the prices of the showers. There was almost no understanding of the product options as the customers were dependent on the plumbers most of the time. Moreover, the customers were also unaware of the cost breakdown between labor, material and excavation.

Investment

The company was an active seeker about the changes in the industry and the need to change the technology was required. This was determined by the company on a very early stage that technological advancement would be required if the company wants to stay viable in the industry and enjoy the first movers advantage. The company invested a sum of $5.8 million to develop a breakthrough product that positioned itself superiorly in terms of quality, technology, design and ease of installation.

4P analysis

The company used a 4 p analysis for the products it offered in the market as the growth in the market was slow.

Product:

Electric shower (prices were lower than the others)
Mixer shower (prices were lower than the power showers)
Power shower (prices were the highest of other products)
Premium
Standard
Middle low
Trade shops
Distributor
Showrooms
DIY outlets

Price:

Place:

Promotion:

The promotions were kept simple and were not aggressive at all. In addition, the only channel used was advertisement (ex. Boucher).

Channel of distribution

Plumbers:

Plumbers are the most effective in making sales and increasing the volume of sales. Almost 73% of the sales come from plumbers as most of the customers depend on the plumbers. Plumbers have a high loyalty for the brands as the plumbers feel comfortable in working with the same products.

Showroom:

Showrooms prefer to carry high end product line and brands with various showers and bath options offering the customers with an installation service by subcontracting. Aqualisa made sales of around 25% in the market.

Trade shop:

Aqualisa was available in 40% of the trade shops of United Kingdom. The primary customers of trade shops are plumbers. Trade shops carry brands of all typestherefore, the market faces competition among different brands under one roof.

DIY shed:

The brands are available in almost 70% of the DIY sheds. The products in DIY sheds are cheaper and easier to retrofit. These DIY sheds often offer discounts on the products in mass purchases.

The breakthrough product

The product is a breakthrough in the industry of showers as this was the first time that such an innovation was seen. The issues raised by the customers were resolved by changing the process of showers and not making changes in the showers. The issues like change in pressure of water and fluctuation in the temperature of water were resolved. The customers were provided with a single touch control in the system to manage the pressure and temperature of the water.

Promotions

The company kept the promotional activities simple. Initially, the company started with promoting the product in shows like bathroom expo, demonstrations and press events and featuring the product on the cover of trade journals.Aqualisa Quartz Simply A Better Shower Case Solution

Problem statement

How the company will be able to familiarize the new product to the customers and how the expected level of sales will be met?

Recommendations

The problem of the innovation is that the customers are not aware of the product as the promotions have been low. The promotional activities should be increased and a more effective means of promotion has to be found out.

With effective promotions, the company has to influence the plumbers to come towards innovation as this will save their time and will make them make more profits. The company, if needed, has to give plumbers a small amount of incentive to promote their product as the product is the only one of its type.

It is recommended that the company should promote the product and sell the product via trade shops as most of the sales are made through trade shops in United Kingdom. Trade shops represent 47% of the shower market in United Kingdom and 54% of the mixer showers are installed by the plumbers. Plumbers have a big influence on the decision making of the customers.....................

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