Marketiing Management

1. AQUALISA – QUARTZ CASE
By Group A - PGMPX 2015 (Amit, Mandar, Michelle, Sanmeet & Vinod)
Case Highlights
1. Total Showers Units sold in the UK in 2000 was 1,800,000 units (Electric 1,100,000 / Mixer
550,000 / Power 150,000)
2. Aqualisa has 6.77% of the total UK shower market in 2000. ( 0.54% of Electric Showers, 17% of
Mixer showers & 14.66% of power showers)
3. Aqualisa reported net income of € 17 million in 2000. They spend € 2.7 million on marketing & €
1.7 million on R&D.
Quartz Shower Valve (Sept 2001)
1. Took 3 years to develop. Total developmental cost € 5.8 million.
2. Quartz has 2 versions – Quartz Standard Shower & Quartz pumped shower
3. No evacuation required during installation, only half day work for a plumber to install.
4. Efficient & reliable water pressure & temperature for users with Quartz technology (via one touch
thermostatic control)
5. (Disappointing Sales) -15 Quartz sold daily – 6 month projection 30 to 40 units. Ideal target 100
to 200 units to be recognized as a mainstream shower product
Case Dilemma – Quartz (Mainstreamor Niche product)
Rawlinson (CEO) believes Quartz will become a mainstream product while Sales & Marketing managers
believe Quartz at best is a niche product. Rawlinson believes a rejig in marketing strategy is the way
forward;
Rawlinson Marketing Plan
1. Targeting customers directly
2. Targeting D.I.Y customers
3. Targeting developers
Recommendation
1 - Target the plumbers
1) Plumbers have a say in 73% of all shower purchases in the UK
2) Standard shower installations took 2 to 3 days – Quartz could be installed in half a day
3) Most standard shower installation also involved excavation – any bungled job could involve out of
pocket cost for the plumber – Quartz – remote processor was the size of a shoe box and
could be located anywhere in reasonable proximity to the shower unit.
4) The Quartz unit installation process was straightforward – Plumbers sending apprentices with
little or no experience for the installation work
Aqualisa - Quartz Offer to Plumber to increase market penetration
 For a limited period, Company will refund the plumbers for any loss due to faulty Quartz unit (This
is aimed at elevating their fear of innovative products that tended to break down in the past)
 Will offer apprenticeships to trainee plumbers to increase pool of loyal plumbers to Aqualisa
products.
 Since Quartz requires just have a day to install, this allows them to take on more jobs per year.

2. 2 – Focus on Trade Shops and Showrooms
Sales force should target to increase the number of trade shops and showrooms stocking Aqualisa
Products. Currently only 40% of trade shops and 25% of showrooms stock Aqualisa Products.
Reduce the MSP for Quartz products as follows
Model Current MSP Reduction New MSP Cost Revised Margin
Quartz Standard € 450 10% € 405 € 175 € 230
Quartz Pumped € 575 15% € 489 € 230 € 259
3 – Focus on Developers
Sales force should contact the developers and encourage them to use Quartz in New Home Build as it
also forms 20% of the market. They should come up with Bulk promotional offers for such developers.

3. 4 – Other Strategy
 Target the consumers directly with Advertising campaigns and hope to build a consumer brand
like Triton who is currently the market leader.
 Survey should be taken for DIY customers as they can also be interested because of the ease of
installation provided by Quartz product