Aqualisa Quartz

Case Analysis – Aqualisa Quartz

Section G

Group 2

Submitted By:

2014PGP016 AJAY MEENA

2014PGP097 DEBARUN SENGUPTA

2014PGP179 LAKSHAY SAHNI

2014PGP190 MAHESH NARAYANAN

2014PGP289 RAKESH KUMAR

2014PGP365 SINDHU S

IPM2011027 EKTA SETH

MISSION

To improve the sales of Quartz and increase the market share

Internal –

SWOT Analysis

Strengths

• The installation of the shower could be done in just half a day without any expert knowledge requirement.

• The innovation of the remote control helps to attain desired temperature beforehand and saves time.

• Only a single hole has to be drilled in ceiling and electronic valve/processor can be placed in a convenient location, that helps to save space and avoid the need of excavating bathroom.

• It is easier to attain the desired temperature and water flow rate due to the automatic control

• One touch control mounted on wall

• Strong reputation in UK market

• Premium brand which provides top quality showers and great service attested by the consumers.

Weakness

• Servicing slipped in the past few years

• 10% of showers become defective

• Plumbers weren’t ready to accept the new innovation

• Low sales volume in trade shops and showrooms

• Lack of brand awareness

• Sales force spent 90% time on maintaining the existing accounts and servicing the existing new customers. Only 10% time spent on developing new customers.

Opportunity

• Increased demand of the UK market for automatic showers

Threat

• Other companies are fast catching up on product quality

• There is a general market perception that product is overpriced

• Salesmen tend to gloss over other products and to sell they have to point out deficiencies in the existing products.

Situational Analysis

1. Company: Aqualisa

o A UK shower manufacturer, Harry Rawlinson is the Managing Director

o Launched its premium product Quartz in May 2001

o Generally recognized as a premium brand in top quality showers

o Number 3 overall in UK shower market

o Earned a base profit of €17,355

2. Context

Technological Environment:

o Real breakthroughs are rare in the shower market. Innovations are mostly cosmetic

o Most of the manufacturers only recycle their product line and relaunch their main products every four or five years

o Plumbers distrust innovation after the electronics flopped terribly in the ‘80s

3. Collaborators

The collaborators for Aqualisa constitute the following:-

o Trade Shops: carried products across all available brands. Primary customer was plumber who worked for developers, showrooms, contractors or directly for consumers. Aqualisa was available in 40% of trade shops.

o Showrooms: Carry high end product lines and brands and offered installation services by subcontracting with contractors and independent plumbers. 2000 showrooms in U.K. Aqualisa brand was sold in 25% of them.

o DIY Sheds: offered cheaper and discounted brands for mass market. Aqualisa’s Gainsborough brand was available in 70% of approximately 3000 DIY outlets in U.K.

o Plumbers: About 10000 plumbers in U.K. They charged about 40 to 80 per hour for servicing plus the excavation cost. They had a conservative mind set and distrusted innovation

4. Competitor

Major competitors for Aqualisa are:-

i. Triton – has the maximum sales (545,500 in year 2000) among all the brands. Only company to build brand awareness at the consumer

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