Aqualisa who throughout the history in the U.K. held recognition for having top quality showers, a premium brand, and great service, feeling the market had yet to experiment any major innovations conducted a market research and developed the Quartz. In 2001 launched the Quartz shower; an innovative product that gathered all the characteristics the costumers felt were missing or deficient in the shower industry all at once. This shower provided improvements from water pressure, installation, temperature, maintenance, to use and design. During the field trials conducted lead by company’s employees, friends of friends and sales reps, the Quartz experienced great acceptance indicating a success in the confection of the product as well as …show more content…
This decision leads back to management the company then must have made a decision towards which product would be their star, the one who will allow the entrance to new markets, the one with the highest margin, although it may replace their old models, there’s only so much market that one product can occupy and bring revenue.
Although 32.5% of showers were sold at Do-It-Yourself Sheds, 42% in trade shops and the rest in showrooms and electrical wholesalers, these were mostly value and standard segments where the margin went from 105£ to 225£. Whereas the margin of the products sold at showrooms went from 60£ to 345£.
Rawlinson was debating marketing options to enhance company sales, these three options were: targeting consumers directly, targeting Do-it-yourselves, or targeting developers.
As previously stated the problem with targeting consumers directly is that the cost it’s too high, as its too high risk to invest a 23% of revenue in large scale campaign, it’s been stated that customers know very little about the products they buy, and are mainly influenced by the plumbers.
Targeting Do-it-yourselves could be an option considering the ease in the installation process, however it could damage company image because the customers would
By upgrading their brand, it will help to identify the qualities of the products that set it apart from the competition. They have to make the
Since the market is oligopoly, so when you have a new thing, you need to deal
audience. Companies know how to sell their products and make millions of dollars doing it.
Our objectives are to consider the impact of not entering the faucet-mounted filtration market on our market share, brand image and profitability. We must consider the short-term and long-term implications of different scenarios including: entering the faucet-mounted market, increasing our current pitcher sales, and increasing our filter
On the other hand, the company’s products would be more seen by consumers, which means the demand for their products probably increase.
Reason: Meeting buyers needs will increase demand. Higher demand=potential increase in profit and market share.
Kennedy, X. J., et al., eds. The Bedford Reader. 12th ed. Bedford St. Martin’s Press. Boston, MA. 2014.
Opportunities: international market; co- operation with other bigger companies; launching of the new products; increasing tendency of the customer demand etc.
Too many product types were launched at the same time with little differentiation and too much technology for the consumer to understand and digest.
After looking at the issues causing the initial lack of sales of Quartz, it is essential to note that the lack of adoption of Quartz from the plumber has had a high impact on the issue at hand. For plumbers, Quartz brand is a high margin brand for plumbers, and thus, once adopted by plumbers will, the product extension will yield great gains for the
This could be company strengths, current market penistrationpenetration, supplier agreements and simply all of the business and/or customer loyalties that they have had. Also in today’s market the consumers are looking for the “next new thing”. They no longer want an extension of what they already have. The consumers are loyal to a company, but can quickly change focus if a company fails to continue to change to meet their needs and/or demands for change.
Purchase selection of premium customers was influenced by style and looks of the shower. These customers shopped in showrooms so we should focus on getting Quartz shower in showroom. Showrooms also offered installation services by subcontracting with contractors and independent plumbers. This will also get the attention of plumbers to Quartz. Only 25% of about 2000 showroom showcased Aqualisa’s product range. We should also focus on increasing this number to increase market penetration.
| ST Strategies: * Make innovations for being over the potential competitors. * Use their financial position for acquire new technology.
Other environmental influences, such as competition, may fuel the company’s desire to create more and better products that could well determine their location and standing in the global market. Increase in the number of competitors for the same line of products may mean that there
It gives the consumer an alternative to buy products that have still not saturated the market.