Aqualisa was recognized as having top quality showers, a Premium brand and great service in the U.K shower market. Despite this impressive image and positive market research results, when the company launches its new magic product, Quartz, something unexpected happened: it was not selling! The most possible reason for this, may be the ineffective price adjustment and inconsistency while deciding on the right market for Quartz.
The significant opportunity for Aqualisa is that Quartz is a really high quality, high performance, convenient and available product in the shower market and through some small and strategic adjustments, it may be able to be a mainstream for the company and survive in the market.
Now, let’s develop a better understanding of what is going on in Aqualisa in order to be able to analyze the problems and create effective solutions through a 5C Analysis.
5C analysis; firstly industry and then category, segment, competition,consumer/customer and the company profile will be examined.
Industry: for Aqualisa is shower.
Category: is divided according to the types of showers in the U.K shower market, which are electric showers, mixer shower valves and integral power showers.
Segment: : the focused segment in this case is a new,convenient, easy to install and high quality shower to attract both consumers and plumbers.
Among the competitors, the most important one is Triton. As it is stated in the case, one of the major problems is that the customers generally don’t have enough information about their showers and can not exactly understand the product options. At this point, plumbers have a great affect on the brand choices. As shown in Harvard Business School case, plumbers influence type of shower with 20%, consumers takes plumbers’ advice on type and brand of shower with 28% and finally, plumbers select type and brand alone without consulting to customers with 25%. Such high percentages indicate that brand awareness is really low.The only company in the market that had managed to build customer awareness at the consumer level is Triton and this actually brings many advantages to them in the sector. Especially in the electric shower category and also in the total units sold, Triton dominates a huge amount of sales.
Aqualisa targeted both plumbers and consumers. Through different product categories, the company tries to preserve their positive perceptions about Aqualisa products, met their different expectations and give them what they want. For example, the company’s new product Quartz’s value proposition to plumbers is that the product was really easy to install. And for consumers, the Quartz provided efficient and reliable water pressure and temperature. Besides, it featured a “ one-touch”, easy control system.
Aqualisa developed a really important and good image in the U.K shower market since its foundation. As it is stated before, Aqualisa as a company, was recognized as having top quality showers, a premium brand and great service. In there different product categories, it has different successful products. If the U.K marketshare data is observed, it can be seen that the Aqualisa and its great brand Gainsborough together have the largest share after the market leader Triton and the second powerful competitor Mira. Different from its current products, Aqualisa, lastly, launched a really effective product named Quartz. However, despite all its advantages and innovative,convenient features and availability, the products wasn’t selling. The most important problem in the company is that of Quartz’s.
Now, what can be done? How can Aqualisa develop an appropriate strategy in order to increase the sales of Aqualisa and protect the existing image of the company? First of all, it is really obvious that Quartz did not succeed to be a mainstream for now. As the managers said, it is still a niche which does its best in showrooms that are quite a niche market. Keeping this reality in mind, it is also known that, as Pestell said, “Adoption is a long, slow process”. Maybe Aqualisa should show patience and after the right strategies are applied, wait and see what will happen. What are those right strategies? First, Aqualisa should review its pricing policy immediately. A decrease in Quartz’s price may result in successful sale volumes in the developer market, which seems to be the best market for Quartz. Developers prefer reliable, nice looking products,are price sensitive and Quartz may easily met those expectations. Additionally, since developers have relations with plumbers, it also attract those plumbers and make the product more widely known and preferred.