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Aqualisa Quartz: Simply A Better Shower, Case Study

2756 words - 11 pages

IntroductionAqualisa 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 MarketU.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 characteristicsFigure 1: Market Segments based on Price v. Customer BehaviourA 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 also gains substantial entry into the market at the same time.Broadly speaking the customers in the individual market segment have one common feature i.e. they are faced with problems of low water pressure. But, within this individual customer category there are sub-segments based on varying needs. However, the property developers do not face the problems of water pressure and are faced with the different set of issues.The three distinct customers in the individual category based on price are:* Value Customers,* Standard Customers and* Premium CustomersThe property developers who form an entirely different category are quite price-sensitive with the exception of a few luxury developers.One interesting group of people in all the categories, who are not the consumers and hence could not be placed in the above figure are the plumbers - people who actually install the showers so that the customers can actually gain the benefits that they seek. As mentioned earlier, the consumers' knowledge of showers is...

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