Executive Summary
Aqualisa is a well-known shower manufacturer in the UK. They have a strong reputation with great service. They have invest 5.8M to develop the Quartz system that positions itself in the premium category in terms of quality, technology, design and ease of installation. Before the development of Quartz, the only option for good water pressure and temperature was to install either a mixed shower valve that was costly, or to use integral power showers, which was big and bulky. Aqualisa Quartz was launched in May 2001. The Managing Director of Aqualisa, Harry Rawlinson, invested time and money into the development of Quartz and thought it would be an instant success. So, what is the best marketing strategy to increase
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If it’s easy to install, Aqualisa could advertise to the D.I.Y. market. Gainsborough is already successful in the DIY market and Aqualisa could easily take advantage of distribution channels.
• Cons: If they lower the price, it would lower the profit margins. This might cause customer to think the product is low in quality, which isn’t ideal. Quartz is the cheaper product compared to other Aqualisa products, in terms of labor and price. This option could also cause cannibalization.
3. Target Developers – Aqualisa can request that when it comes to residential or commercial development, plumbers use the Quartz system in their projects.
• Pros: This would be a large volume channel. Aqualisa may be able to generate more sales when it comes to this method, rather than targeting consumers. Developers can force plumbers to use Quartz, no matter what the plumbers feel about electronic technology in shower products.
• Cons: Developers might be hesitant to go with the Aqualisa brand because of the high quality brand image, even though they would receive a discount. Rawlinson mentioned he didn’t want to discount the product. There will be slower results than if they were targeting consumers. Developers only signify 15% of the market.
4. Target Plumbers – Aqualisa can try to help plumber get over their hesitance when it comes to shower products and electronic technology.
• Pros: Aqualisa could use the word-of-mouth marketing to increase
The Quartz sales are suffering for many reasons primarily due to positioning errors on the part of the Aqualisa management. The market entry strategy is ill-defined and lacks a clear direction. They have failed to hone in on a target niche as well as to develop an effective product induction strategy. This is further exacerbated by the lack of buy-in on the part of their most important allies in the sales processes – the plumbers.
Second recommendation is to collaborate with other brands. In order to increase sales and expand not only premium market, but also mass market without undermining brand value, there are two options to target different consumers. One is to collaborate with Superdry, which is a young and fashionable brand with great reputation. Consumers are able to smell the partner perfume in Superdry’s shop and make purchase if they are interested in. Another is to collaborate with five-star hotels. There are many kinds of bath
In addition, Gril-Kleen will have to hand over the distribution to the middlemen and risk letting go the ownership of the distribution channel. Therefore Gril-Kleen should concentrate on trying to establish a sales force. With being a fairly new venture, direct sales are the best strategy available to them in the restaurant business. Gril-Kleen would have to adopt a direct sales strategy for the industrial sector as that is the preferred method of selling in such markets. In the boating market however, the best method would be to use channels and middlemen so that the product gains more exposure and is available over a wider geographical area. The product will mainly be stocked at major hardware stores and supermarkets in the cleaning section.
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Brand recognition will also give the company long term benefits. At the present time, Triton is the only company that has achieved some sort of brand recognition and its importance is evident in the amount of showers that have been sold by Triton (Exhibit 2). Providing incentives to plumbers will reduce their resistance when more consumers realize the benefits of the Quartz. Moreover, Keeping the Quartz a premium brand can avoid cannibalization of Aqualisa’s lower end products.
Another marketing endeavor the marketing team could employ, at the trade shops, is gathering information from plumbers, getting their names, address, etc., constructing a database of potential customers. With this data, Aqualisa could send out marketing materials, such as DVDs demonstrating the ease of installation, showing how fast the Quartz system can be installed, and testimonials of peer plumbers explaining their experience with the Quartz shower system. Promotional flyers and discounts on future purchases can also be sent, to lure in more customers. Aqualisa has been successful with innovative products in the mixer-shower-valve market before, the Aquavalve 609 was the company’s core product in the mixer-shower-valve category, and regarded by plumbers as being a high-quality, reliable mixer shower with state-of-the-art technology. One other strategy Aqualisa can use is piggy-back off the success of the Aquavalve 609, buy introducing the Quartz shower system as an upgrade, renaming it the Aquavalve 610. With this strategy, plumbers would already be familiar with the name of a current successful product and be more adapt to the change because it is a product that they have already had a good experience with.
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