Aqualisa Quartz
Subject: How to best market the new Aqualisa Quartz line of showers
Problem: Aqualisa has created a superior new shower line that seems to be perfect for the needs of customers but the sales are far below expectations. Customers do not have brand awareness of Aqualisa, plumbers are wary of innovation and salesmen are unsure of how to positively market a product without negatively reflecting on other products in their company.
Background of the situation: In the United Kingdom only about 60% of homes have showers due to the unique issues of bathroom remodels in Victorian era homes. Homes with plumbing from this period are gravity fed, with a separate boiler; this meant poor water pressure and temperature fluctuations.
Three types of shower solutions were installed in UK bathrooms. * Electric Showers use water from cold water supply. Electrical heating elements in the shower raise the temperature of the water. This type of shower did not address the flow problem. These are a budget solution and very bulky. * Mixer Shower valves; either Manual or Thermostatic. Both mix hot and cold water to create the desired temperature of the water; these require a lot of excavation of the wall during the installation. To help the water pressure additional booster pump was used. These are a high end, attractive, but costly solution. * Integral power showers are compact with thermostatic mixer valve and a booster pump. They require mounting of a box in the wall but do give a pressure of 18 liters per minute. This is a convenient but not as reliable solution

The average customer’s largest complaints about the showers are poor pressure and temperature fluctuations, but the need to replace items is another major complaint. There is very little brand awareness of showers at the customer level.

The company produces segmented brands “Gainsborough” to Do it Yourselfer shops, and “Shower Max” to developers. Aqualisa was mainly sold to distributors, trade shops, showrooms, and plumbers.

Gainsborough is a bulky, inexpensive, easy to install model that is sold through the growing DIY market.

ShowerMax is attractive to developers because of the low cost. New home construction does not use gravity system and this delivers a high pressure with Aquavalve technology.

Master Plumbers require several years of intensive training in the UK. The shortage of qualified plumbers meant long waits for customers to get a new shower. A standard shower installation was a 2 day job and required a lot of excavation. Plumbers are very brand loyal with their preferences and are extremely reluctant to switch brands.

Aqualisa introduced its newest shower brand the Quartz with 2 versions, standard and pumped shower . The remote processor was about the size of shoe box and could be placed anywhere within reasonable proximity to the shower.
Benefits of the new product “Quartz”:
•Speed of installation was cut by over half. Plumbers found it easy to install and straightforward.
•The Quartz provides efficient and reliable water pressure and temperature.
•It provides “one-touch” control and easy-to-go push button that indicates when the temperature is ready to go
•Parents love that it is safe for their kids. The elderly like that they don’t have to fuss with stiff valves.

Early excitement over the Quartz was replaced by lackluster sales through their normal channels due to high cost of the product and past negative experiences with “electronic” showers.

Key issues: * Aqualisa currently has three brands: Aqualisa, Gainsborough and ShowerMax. What is the rationale behind this multiple-brand strategy? Does it make sense? * A large amount of money was invested for the creation of Quartz. How to generate sales momentum for the Quartz product? Target customers directly, the DIY market, developers? Should he lower the price of the Quartz?

Solution Criteria: * “We can’t forget our core products every time we launch something new.” * Act in a timely manner so the competition doesn’t latch onto our innovations

Alternative Solutions: * Target the customers directly. If it is difficult to get the plumbers to adopt new technology directly, make Aqualisa the brand of the customers. Reach out to the customers, help them understand the details of the new shower technology would be an expensive, but potentially high reward gamble. * Pro: builds brand awareness, wide coverage * Con: awareness fades, advertising expenses, costly * Target the DIY (Do-It-Yourself) markets. Partner with the reputable B& Q chain of stores to promote a premium product and its ease of installation. “We’ll save you money one way or the other” * Pro: ease of installation, partnership helps with advertising * Con: premium product in a discount venue may damage brand reputation * Target the developers more aggressively. Demonstrate what a quality product it is and the buzz it would create in new home builds (prestigious to have quality products in many markets-“you get what you paid for”). Builds familiarity/converts with the product among plumbers as well. * Pro: few developers to contact, high volume of new construction * Con: long lead time before product reaches customer, cost factor * Target the plumbers/trade shops, including those not currently affiliated with the Aqualisa brand. “Time is money” and if we save you time, we both make more money * Pro: key influencer for large percentage of population, value their time, education is key * Con: risk aversion and resistant to change

Solution:
Quartz currently sells 15 units a day, at that pace it could probably recover the amount spent on its research and development within several years. While disagreement exists if the Quartz needs to be the mainstream “bigger and better” product or a high quality niche item, if the sales grew to at least 50 units a day it will be able to achieve a break even sooner. The managing director commented that there is typically two years of time after a breakthrough product is released to gain a competitive edge, so time is of the essence. This is a quality product with big potential. The sales force needs to service existing customers and develop new ones to build brand awareness.

Following are the ways in which the marketing strategy can be improved with the plumber market and trade shops.
1) Offer promotional marketing items to the plumbers/trade shops to assist in building quotes, showing the strengths each of their products offer. The plumber can make the customers aware the products unique features and benefits. The customer can be made to understand that buying such a better product at a little high price can reduce the after sales servicing costs. Warranties will improve that level of interest even further.
2) Offer free trials and demonstrations to plumbers within trade shops to help them understand the easy method of installation required for the Quartz. The plumbers once experienced installers become converts. About 73% of the customers are influenced by the plumbers for installation of a shower. Thus, promotion with the plumbers would help in better market penetration. Direct mailing the limited plumber population would be an efficient use of advertising dollars. The plumbers are the frontline with bidding projects for customers, when they know the apples to apples comparisons of the products the company offers they will find the best fit for the customer’s budget.
3) Display on the shelves of more showrooms (only 25% at this point). Because of the working displays in showrooms, people will realize the performance and flexibility of the product. If they can be influenced, more number of developers and plumbers will see the Quartz as the shower of choice. “I want a Quartz bathroom in my dream house.” This in turn can help support the demand for Quartz showers at the local trade shops.