Aqualisa Case Analysis
Aqualisa Products Limited designs, develops, and manufactures showers in the United Kingdom. It offers mixer, digital, electric, power, exposed, concealed, bar, and gravity-fed showers; and shower accessories and spare parts, including shower heads, hoses, and pumps. The company also provides service and repairs. It sells its products through showrooms, as well as online. The company was incorporated in 1976 and is based in Westerham, United Kingdom. Aqualisa Products Limited is a former subsidiary of Aqualisa Group Limited.
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.
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.