Aqualisa launched the most significant shower innovation in recent British history: the Quartz shower. The shower provides significant improvements in terms of quality, cost, and ease of installation. In product testing, the Quartz shower received rave reviews from both consumers and plumbers alike. However, early sales of the Quartz have been disappointing. Now, the company is faced with some key issues about whether to change the channel strategy, promotional strategy, and the overall positioning of the product (niche or mainstream product) in the context of his existing product line.
Company: Aqualisa, 3rd in the shower market with 18% coverage has had a successful marketing strategy, which allowed it to enjoy 25% net return on sales and a growth of 5% to 10% in a mature market. They have effectively segmented their markets and have products that cater to each segment's needs (product range of 9 models covering the three types of showers used in the UK, ranging between 230 and 670).
Their channel relationships are strong and positioning has helped them achieve a good brand name in the market. The company used the shower max (specialized product similar to Aqualvalve at lower priced than the before mentioned) to penetrate the developer's market.
* Strong reputation in the shower market
* Highly profitable company
* High quality products
* Excellent service
* Strategic use of Gainsborough brand to penetrate low cost market
* Only available in 40% of trade shops, 25% of the total showrooms, and 70% of total outlets
* 10% defected products
* Competition is catching up in product quality
* Considered as an expensive brand
Costumers: Broadly speaking the customers in the individual market segment have one common feature; they could identify problems in current showers which...