Aqualisa quartz case write up essay sample

Aqualisa is suffering from a lack of sales momentum with their new Quartz product line due to a lack strategic promotion. The firm is has boldly attempted to innovate the electric segment of the UK’s shower market. Unfortunately plumbing products have little brand recognition amongst consumers and Aqualisa has a small share of the electric shower market further reducing their new product’s visibility. As electric showers have a reputation of being problematic, independent plumbers who perform the majority of shower instillations in the UK are hesitant to adopt a new electric product line. The circumstance is further confounded by Quartz’s premium pricing putting it in jeopardy of becoming a niche product. Although they received accolades and recognition by promoting the Quartz at product expos, the firm is experiencing sluggish sales. Alternative 1:

Utilize the sales reps and their established relationships to aggressively promote the new Quartz product line. Since Aqualisa’s strongest sales have been through the trade shop channel it would make good sense to convert the independent plumbers who already choose their products. Making a case to plumbers to adopt the Quartz system would be two fold. Educate them on the cost benefits of time saved from the easy installation process. Then offer a manufacturer rebate initially to generate sales momentum. Pros:

* Puts the Aqualisa Quartz into the hands of contractors who might normally be discouraged by the style and price. * If plumbers adopt the Quartz and embrace it, word of mouth advertising will increase as more Quartz are installed and more consumers and plumbers experience the value. Cons:

* Using discounts to increase sales volume will initially impact profits * Sales motivated by discounts can create a fair-weather customer base, only interested in buying when Quartz is discounted Alternative 2:

Since DIY sheds constitute the majority of electric shower purchases promoting the Quartz through this channel could be lucrative. Promotion would be done primarily in partnership with channel retailers pushing the product combined with workshops showing the ease in which the Quartz can be installed. This will help brand the Quartz as an easy to install, premium electric shower product. Pros:

* Tapping the DIY consumer market is a great way to put the product into the homes of consumers that would provide credible brand evangelizing * Increased experience with their retail channel might provide Aqualisa a chance to bring the Quartz to international markets Cons:

* Premium brands will be a hard sell at DIY sheds since they’re considered value product retail * Prices may be too high for the typical customers of this channel * Selling a premium, ground breaking product at a DIY shed could negatively affect the brand image Recommendation:

As plumbers do the majority of shower instillation in the U. K. and many of the plumbers and trade shops and already choose Aqualisa products, it would be the most logical step to win them over to the new product. Increasing the number of sales associates will allow for more product promotion because right now the current force is consumed with maintaining current accounts. Next equip the sales reps with testimonials from plumbers who champion the Quartz combined with demonstrations showing time, (and hence money,) saved from its easy installation should make it an attractive product. To ease the cost concern of a premium product, a modest manufactures rebate should be offered for the first six months to a year. Although this will momentarily decrease profits, it is also worth considering that rebates are rarely redeemed by 100% of consumers who purchase a product. Once Quartz products are in plumber inventories they will be motivated them to use them in projects. As contractor’s familiarity with the Quartz increases, so will brand trust. This will translate into word of mouth marketing that will impact the channel of distribution that most influences what products go into Briton’s showers.