Aqualisa Case Analysis

Aqualisa seeks to increase the sale of the Quartz Standard Shower and the Quartz Pumped Shower (collectively, the “Quartz Shower”).  Aqualisa’s pursuit of increased sales, however, has encountered a problem:  the perception that the Quartz Shower does not serve the respective needs of developers, plumbers, and consumers.  Developers view the Aqualisa brand as “too high-end” and, as a result, do not purchase the Quartz Shower.  Plumbers distrust innovation and, consequently, are slow to adapt to the innovative Quartz Shower.  Consumers are “generally uninformed about showers” and, therefore, have “little understanding of product options.”  To overcome these problematic perceptions, Aqualisa must market to developers, plumbers, and consumers the Quartz Shower’s performance, design, service, installation ease, and new brand names.  If Aqualisa does so, the Quartz Shower will have increased sales in all segments of the shower market.  Nonetheless, there are risks:  (1) the Quartz Shower may cut sales in some of Aqualisa’s other products and (2) potential shower purchasers may purchase the Quartz Shower under the lower priced Gainsborough brand and not under the higher priced ShowerMax and Aqualisa brands.  These risks, however, are worth taking in light of the significant margins generated by the Quartz Shower and the distinctiveness of the distribution channels in the shower market.
The Market Demand for English Showers
    A successful marketing effort for the Quartz Shower must first account for market demand.  English developers, plumbers, and consumers demand performance from their showers.  They, therefore, want functionality.  Their showers must consistently:  (1) create high ...
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