AQUALISA QUARTZ: SIMPLY A BETTER SHOWER Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Aqualisa QUARTZ: simply a better shower Case Solution

1 Introduction

Aqualisa is an English company which manufactures showers. The firm has a pioneer name in the UK market for its superior quality, and high performance showers, reliability and great servicing efforts. The company launched its premium brand shower known as the Quartz in May 2001. The basic purpose behind launching this shower was to address the issues of plumbers and consumers which were not been addressed at that time. However, there were several products in the market but they were not able to satisfy all the needs for consumer as well as plumbers.

aqualisa quartz case solution

In addition, the company has three products in the shower segment. The company launched its premium Quartz brand to solve low water pressure issues, and for giving balanced temperature control for water. Furthermore, due to designing matters, showers has low pressure and variable temperatures. On the other hand, electric showers were dominating almost 60% of the market while Aqualisa has around 20% of this market. While these showers were placed awkwardly in the bathrooms and were not able to solve the problem for providing proper temperature and low pressure.

On the other hand, the electric showers do not need heat water supply separately instead they were able to heat the water thyself. However, they were far cheaper ranging 200–400 euros. Nonetheless, mixer showers had two products in the market one with the pump and second without the pump. Their price range was around 40—700 Eurosand they took two days for installation. These showers also created a huge room for the electric shower. Finally, the Quartz solved the issues for these showers since, Quartz was able to be installed in half day and it also has its own temperature configuration buttons and its installed box can be placed away in a close place.

However, the cost of the Quartz was slightly higher than traditional showers in the market. Since, its cost was around 850-1100 Euros. Furthermore, the company was targeting the premium segment of the market. Now, because of targeting the premium segment and the reluctance of plumbers to learn installation of the new product, Quartz was not able to meet the expected sales target and the company was only able to sold only 15 units a day which was insufficient to meet the break even as the company needed almost 50 units a day to break even in almost 2 years.

2 Reasons behind Declined Sales of the Quartz Shower

The company’s initial target of the company was to design Quartz in a way that it could be able to target the premium segment of the market because of its higher price and special features as compared to the present product in the market. However, the product was also designed to appeal consumer as well as plumbers both. On the other hand, the initial launch of the product faded the positioning of the product and its features since, very few units were sold during the first month of launch. However, the reasons behind lacking in selling the product to that particular niche includes

2.1 Higher price

The product has a very high price as compared to other competing brands, as the product was costing the consumer around 850 euros which was not affordable by everyone however, the company was targeting the elite class but still the customers of Aqualisa were skeptical about the price as compared to the performance of Quartz.

2.2 Incorrect Initial Strategy

Initially, companies offer lower prices for even high quality products to make the consumer addict to the product but in case of Quartz it was not looking the same as the managing director refused to give any discounts or promotional offers and believed that Quartz is a premium product therefore, it should be sold on premium prices...................

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