Aqualisa Quartz: 'simply a better shower' - a significantly innovative product developed by Aqualisa, in terms of both cost and quality, has been facing challenges in the market since its launch four months ago. The product described by one of the customers (a plumber) is a 'push-fit-connect-you're done' shower and offers the customers 'what they (the plumbers) want'. Despite the above facts, Quartz has experienced poor sales and has not met the company's expectations.
Hence, the company's managing director, Harry Rawlinswon, a HBS graduate who has the 'itch to think big' is faced with many key decisions regarding the company's marketing strategy. He is re-evaluating their existing strategy regarding the overall positioning of the product, distribution channels and effectively pricing and promoting Quartz.
This report analyzes Aqualisa's existing strategy, beginning with market segmentation and customer behaviour leading to the 4Ps (Product, Place, Price and Promotion). Based on the analysis, recommendations have been provided that will help Aqualisa in developing an effective marketing strategy.
U.K Shower Market
U.K. Shower market is consists of customers who are quite uninformed about the showers and do understand the product options. Based on the information in the case, they can be divided into mainly two categories of customers: individual buyers and property developers. Each of these is further subdivided based on two variables: price and customer behaviour. The table below, lists a few characteristics
Figure 1: Market Segments based on Price v. Customer Behaviour
A detailed description of the above figure is as follows, along with the product that Aqualisa offers to cater to their need. Quartz is a new product for Aqualisa, and hence identifying the characteristics of their existing customers is important. Aqualisa needs to develop an effective positioning strategy for Quartz, so that it does not cannibalize their existing products and...