Aqualisa Quartz – Simply a Better Shower Harvard Case Study
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Nature of SituationMany homes’ showers in the U.K. suffered from poor water pressure and fluctuatingtemperatures due to old, outdated plumbing. These problems were addressed and solved for themost part by electric showers or specially made shower valves. Aqualisa, one of the top showermanufacturers in the U.K., had developed a revolutionary shower system called the Quartz.Before the development of the Quartz, the only option to have good water pressure andtemperature in the shower was to install either the mixed shower valve, which involvedexcavating the bathroom wall and was costly, or to use integral power showers, which resulted ina big, bulky box being installed inside the shower. However, the Quartz used electronictechnology to allow the remote processor that mixed the hot and cold water to be located awayfrom the shower, and once the ideal temperature was set, there was no need to fiddle around tofind the right temperature in subsequent showers.Harry Rawlinson, the Managing Director of Aqualisa, had invested a lot of time and money intodeveloping the Quartz shower system and thought for sure that the Quartz would be an instantsuccess, but sales after the initial launch was disappointing.Decision to be madeRawlinson wants to choose the best marketing strategy to increase sales for the Quartz showersystem since the current strategy has led to disappointing sales.AlternativesTargeting Consumers Directly:The first option is to target consumers directly in order to increase consumer awareness of theQuartz shower system.Pros:- Triton (30.3% of the shower market share) proved that it could be done- More immediate results- Probably easier to convince consumers than plumbers or other professionals- After initial market penetration, word-of-mouth could help sales- consumers could convince their plumbers by insisting on the Quartz- Already a trial-run in place, so results could help inform decisionCons:- Increase in advertising costs- Difficult to justify such a steep increase in advertising (23.5% of net income)- Because Quartz is a premium system, a large part of the consumer market (Standard, Value, and DIYers) may not take interest
Targeting Developers:The second option is to target developers, so that they can request that plumbers install theQuartz system in their buildings, whether commercial or residential.Pros:- Developers can force plumbers to install the Quartz, no matter how wary plumbers are of electronic technology- May be able to generate more salesthan targeting consumers (large-volumechannel)Cons:- Slower results than targeting consumers- Developers resistant to Aqualisa products because they see it as a “premium” brand, even with 50% discount- Rawlinson does not want to discount the Quartz because it is a revolutionary productTargeting PlumbersThe next option is to target plumbers and help them overcome their wariness of electronictechnology in shower products.Pros:- 73% of consumers buying showers are influenced by their plumbers- Once a plumber installs the Quartz, he/she “is a convert”- 54% of shower installations are done by independent plumbers, and some developer installations and showroom installations may be done by independent plumbers as well- Aqualisa already has a loyal group of plumbers; they could use word-ofmouth to help salesCons:- Plumbers are very wary of electronic technology in plumbing, because it seems complicated and easier to mess up the installation- Plumbers often became “experts” at installing certain types of showers and do not want to switchLowering the Price:The last option is to lower the price of the Quartz, in hopes of attracting a wider market.Pros:- Lower price would mean more people from Standard, Value, and DIY market segments would consider Quartz as a viable shower option- Lower price would also encourage more developers and landlords to consider putting the Quartz in their buildingsCons:- Lower price would mean lower profit margins- Lowering the price may lower the perceived value of the product, which Rawlinson does not want – Quartz is already cheaper in terms of price and labor compared to similar Aqualisa models