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Aqualisa Case Study

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1. Problem Statement:
In May 2001, Aqualisa had launched the Quartz shower, a real significant product innovation, with unique and superior features in terms of technology, water pressure, design and ease of installation. Four months after the launch, despite the initial euphoria surrounding the product, Quartz has experienced poor sales and has not met the company’s expectations. Harry Rawlinson, the MD of Aqualisa, needs to rethink the Marketing strategy, in order to generate sales momentum and quickly turn around the situation, assuring that the 5,8 Million Pounds spent on the development of Quartz were not in vain.
2. Situation Analysis:
Aqualisa is a Shower system manufacturer that operates in the UK market, being generally recognized as a strong brand. Consumers in this market generally fall in one of the three following price segments: Value, Standard and Premium.
On the value segment, customers are mainly concerned about price and ease of installation. They don’t give much importance either to style or shower quality experience. Mainly, the products on this segment are electric showers and they are distributed through DIY mass-market outlets, with discounted prices. The retail price represents the total cost incurred by the buyers. Aqualisa has nearly 17% market share (units) on this segment (Appendix C), mainly through their Gainsborough Brand.
On the standard and Premium segments, customers tend to value both the shower experience and the style. They prefer mixer and power showers, which are mainly available through showrooms and trade-shops. Prices are higher on these segments, and installation usually requires a professional plumber that takes approximately 2 days to perform the work. Obviously, this adds to the total cost of the customer. Assuming that plumbers charge in average € 60,00 per hour (text says between 40 and 80), and the work is done

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