Aqualisa Case Study solution
Squalid Case Study solution ay ambiguously took into consideration the problem of Squalid Quartz shower line and found out how to solve it, how to make an enormous problem to become an opportunity instead. This company made a great Job with it’s research and creation of product that takes advantage on it’s competitors by giving everything to needs of the customers. But the problem is there is no connection between plumbers and customers. Also sales are affected by bad experience of customers with previous products. So, customers don’t really trust to this new product.
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Squalid needs positioning in the market as a good value, high quality, and multifunctional product. It needs also a marketing plan for new products. Squalid company is required to determine the distribution channels which it should concentrate on, and also the company needs to clarify itself the level of its brand. According to the showing in a text it is clear that the market share of Squalid was 18% in 2000, and the percentage of people who use shower instead of bathtubs is around 60%.
If other 40% were shower users too, the demand for these ewe showers would increase rapidly. By making a lot of researches and surveys, it Nas felt that the customers were not satisfied with 2 main problems: the fluctuations in temperature and the pressure of water. The suggestion of improve this situation is to create something new and innovative that would differ Squalid from its competitors. The CEO of Squalid should simply lower expectations.
High prices prevent sales of increasing.
If company would prefer to stay in the premium level, the company won’t be able to fight with competitors. But in other case, if Squalid sides to decrease price level, the product would have great chances on the market Nothing it’s easy installation; the Quality’s Quartz shower would be attractive to the ‘Do it yourself”. This strategy will not be targeted directly to developers, because the price expectations for showers are more flexible at the developers’ market.
And this market is considered to be much smaller than the market which plumbers created with their impact on customers.
In fact, it is not effective to create another new options and additional features which some “high-qualified exclusive brands” already sell with relatively high price. It is not profitable. Quality’s CEO considers that targeting consumers directly will cost him a lot of money that he cannot afford to spend.
It would cost 3-4 millions of pounds over two years to buy a large-scale consumer campaign, and it is not profitable, too. To my mind not only customers should know everything about the product that they use but also plumbers, too. And customers should also be independent of plumbers’ opinion and influence that would make them buy another showers cause of not being aware of knowing how to install these new Quartz showers.
Squalid should pay much more attention to the plumbers. If they would be interested in this product it would bring to the company a great amount of sales. Customers trust to their opinion. Everyone: customers, plumbers, company would get benefit. Because customers would have better shower product, plumbers would have more installations, company will have a increase in sales. SOOT Analysis Strengths Easier installation Better design, quality Strong brand recognition Safe Innovative light indicator
Easy to use pressure Temperature control One touch control Weaknesses dad experience with previous products Bad reputation Manual controlling is not comfortable Opportunities Bad pressure Bad water control Shower systems are too big Threats Squalid is overpriced Centralization of existing shower product models Competitors are catching-up on quality and technology Patent expiration Strategic Market Plan If to make much more concentration on plumbers’ distribution channels, the Quartz showers’ sales would significantly increase.
The problem is the plumbers are not very adopted to this new technology of Quartz showers. According to the showings, Quartz showers have the highest contribution margin per unit and largest potential market Ninth no direct competitors which offer the same products. The company has a very powerful and spread brand name among plumbers, so Squalid has reliable relationships with these plumbers, and they are seemed to be loyal to this brand. Ere solution which this strategy suggests is to decrease and/or to liquidate resources of all other Quality’s shower products with high premium quality.
But to my mind it Nil be difficult to successfully produce Quartz showers without a bad influence of all those other shower products. Their profit from investments will have a significant loss in prices rather than the Quartz showers’ current prices.
Marketing Mix Strategy or reduce prices Just on Squalid Quartz would be not logical. Customers won’t understand it. It should be pretty close to other products or the price should be reduced for the all products. Squalid should pay much more attention to awareness of a product. Let is very important to get involved plumbers.
As I said before, they have n incredible influence on customer’s choice.
But plumbers have to be very close and armorial wit n this product to understand It’s advantages and benefits. Quartz should be demonstrated also in showrooms, that would also bring increase in sales. Company should give free demonstration models to showrooms and to plumbers. Marketing Resources Squalid should: create awareness increase marketing budget to support strategy of growth of a new product – concentrate attention on plumbers decrease marketing dollars for other premium brands validate customer’s new needs and satisfy theme