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 level. Huge sales in electric shower category (479,000). Therefore, major competitor for Aqualisa’s Gainsborough brand (180,000).

ii. Mira – maximum sales in the mixer showers category (200,000). Therefore, a direct competitor for Aqualisa Quartz brand.

5. Customer

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