Aqualisa Quartz: Simply a Better Shower 3
Aqualisa Quartz: Simply a Better Shower
By: Hadi Radwan
Section: N1
Date: 4/1/2011
Problem statement: With the launch of the new innovative Quartz shower by Aqualisa, the Company expected to have a boost in its sales. Yet the sale of the product was not picking up. The Company was facing a big challenge with communicating its product to the consumer/target. The Company wants to ensure that the innovative technology, which is leaps and bounds ahead of competition, will generate more sales to capture market share before the competition can imitate the technology. Accordingly, the CEO of the Company will have to re-devise a new positioning, distribution and pricing plan, if necessary.
Situation Analysis: 1. Company: Aqualisa, a premium brand in the shower market, has been able to sustain a high reputation brand in the UK shower market. Target consumers’ perceive its product as being of high quality yet overpriced. Its current market share is around 18% (17% of Electric showers and 21% of Mixed showers) and ranks third among other competing firms. As of year 2000, the company had an annual profit of €17 million which translated into a net return on sales of 25%. 2. Collaborators: The Company distributes its products through three main channels: (a) Trade shops (40% of which have the Aqualisa product). Their primary customers were the plumbers and represent 47% of the total sales of Aqualisa products. (b) Showrooms (25% of which have the Aqualisa product). Their primary customers were the high end consumers looking for style and represent 8% of the total sales of Aqualisa products. (c) DIY outlets (70% of which have the Gainsborough product). It represents 36% of the total sales of Aqualisa products. In addition, Aqualisa has a sales force of 20-personnel that focus their time 90% on the existing consumers and 10% on new customers. Finally, the plumbers, who, although not a direct distribution channel, have direct influence on the sales of the
By: Hadi Radwan
Section: N1
Date: 4/1/2011
Problem statement: With the launch of the new innovative Quartz shower by Aqualisa, the Company expected to have a boost in its sales. Yet the sale of the product was not picking up. The Company was facing a big challenge with communicating its product to the consumer/target. The Company wants to ensure that the innovative technology, which is leaps and bounds ahead of competition, will generate more sales to capture market share before the competition can imitate the technology. Accordingly, the CEO of the Company will have to re-devise a new positioning, distribution and pricing plan, if necessary.
Situation Analysis: 1. Company: Aqualisa, a premium brand in the shower market, has been able to sustain a high reputation brand in the UK shower market. Target consumers’ perceive its product as being of high quality yet overpriced. Its current market share is around 18% (17% of Electric showers and 21% of Mixed showers) and ranks third among other competing firms. As of year 2000, the company had an annual profit of €17 million which translated into a net return on sales of 25%. 2. Collaborators: The Company distributes its products through three main channels: (a) Trade shops (40% of which have the Aqualisa product). Their primary customers were the plumbers and represent 47% of the total sales of Aqualisa products. (b) Showrooms (25% of which have the Aqualisa product). Their primary customers were the high end consumers looking for style and represent 8% of the total sales of Aqualisa products. (c) DIY outlets (70% of which have the Gainsborough product). It represents 36% of the total sales of Aqualisa products. In addition, Aqualisa has a sales force of 20-personnel that focus their time 90% on the existing consumers and 10% on new customers. Finally, the plumbers, who, although not a direct distribution channel, have direct influence on the sales of the