INDIAN INSTITUTE OF MANAGEMENT INDORE

PGP - I
Term - I
AY 2017-18
MARKETING MANAGEMENT I
Section: C
Group: 16
Case Analysis: AQUALISA QUARTZ

Group Members:-
ARNAB KUMAR DAS (2017PGP069)
ISHEE VATSALA (2017PGP140)
VISHESH SINGH (2017PGP424)
SHUBHAM BHAWSAR (IPM2014091)
 Statement of the Problem

Aqualisa is a UK based shower manufacturer and Harry Rawlinson is the managing director
of the company. Aqualisa have recently launched Quartz shower which despite being the
latest innovation in the shower market and better than its competitors is not selling.
Rawlinsons problem is to understand the reason for the same and work out a shift in
Aqualisas marketing strategy to maximize its sales.

Causes of the Problem

The UK shower market was plagued by several incidents over a long period of time that have
contributed to several perceptions that are hampering Aqualisa Quartzs sales. Some of these
instances are:

Distrust of electronics innovation by the plumbers: Several companies launched

showers with an electronic push-button control in the 1980s, these were poorly
designed and stopped working after some time. Hence the plumbers were distrustful
of electronic products and reluctant to install Quartz.

Resistance to change: Plumbers preferred working on the same products as before

because they had gained the expertise of installing a particular type of shower of a
particular company. Any new device would present difficulty and require fresh
learning. Hence, they were not comfortable with the job of installing a completely
new type of shower.

Lack of brand awareness: Consumers in the UK shower market were generally

unaware about the different types of showers and brands selling showers that were
available in the market. There existed only one exception to this trend and that was
the company Triton which had managed to build consumer awareness for its brand.
Therefore, they mostly relied on their plumbers to choose the right type of shower for
their bathroom.

Decision Criteria and Alternative Solutions

Based on the information presented to us in the case, there are several possible strategies that
Aqualisa can adopt to try and help increase sales. Some of the options that Aqualisa has,
include:

Directly targeting customers: Aqualisa has faced difficulty in convincing the plumbers
of its products efficacy and they have the example of Triton which has succeeded in
building brand awareness at the consumer level. Therefore, they can consider going
for this strategy but the disadvantage of this method is that there are extremely high
 costs associated with it (an entire campaign would cost about 3-4 million when the
companys net income is 17 million).

Targeting Do-It-Yourselfers: This is a segment which could be targeted because the

Quartz shower is very easy to install and thus anyone can do it. But there are two
possible disadvantages of getting into this segment. The first is that once Quartz gets
linked with the DIY tag, it will be very difficult to shed it and it is not clear if it is a
good idea to associate a premium product with it. Secondly, it would be very tough to
compete with the electric showers which dominated this market.

Targeting Developers: There are two main advantages associated with targeting this
segment. The first advantage is that the company can sell a lot of showers in one go.
Secondly, the plumbers would get used to installing Quartz showers because the
developers would make them do so. But the disadvantage would be that it would be a
long gap between the installation and when the end-consumers would actually use the
showers, wiping out Quartzs first mover advantage. One issue also was that
developers were reluctant to buy Aqualisa products because they considered their
products to be of premium category.

Targeting Plumbers: Given that the shower market is one where the customers are
heavily dependent on the plumbers for advice on making the right choice as well as
further installation and maintenance, Aqualisa can target the plumbers directly.

Recommended Solution, Implementation and Justification

Based on the advantages and disadvantages associated with each of the alternative solutions,
we would suggest that Aqualisa directly target the plumbers. The main reason behind this
recommended solution is that the customers are highly dependent on the plumbers for
selecting and installing the right type and brand of the shower. We would like to cite
instances from the case to support our argument.

From Exhibit 4 (Shower Selection for Mixer Shower), we can observe that 28%
consumers take the plumbers advice on the type and brand of shower to buy, and
25% consumers let the plumbers select the type and brand of shower (without
consultation with the customer). This clearly shows that more than 50% of the
purchase decisions in the shower market are influenced by the plumbers.

From Exhibit 5 (UK Shower Market, by Installation Method), we can observe that
54% of the shower installations are done by independent plumbers. Given that
Aqualisa Quartz takes very less time to install as compared to other showers in the
market, plumbers can install more number of showers in the same amount of time and
thus earn more.
 Looking at the advertisement given in Exhibit 9, we can observe that no emphasis is
made on the user-friendliness
friendliness and ease of installation of the product. A shift in
advertising strategy like redesigning the poster is required to effectively communicate
the advantages to both customers and plumbers.

Given the combination of above given factors, a shift in advertising strategy warrants that
Aqualisa try to educate plumbers about the various innovations of their product and convince
them that the Quartz is the right choice for them. Highlighting the eas
easee of use of Quartz and
communicating the financial benefits of doing Quartz installations to the plumbers effectively
would help Aqualisa improve its sales.

Exhibit 4: Shower Selection for Mixer

Showers
Plumber influences type of
shower, not brand
25% 20%
Consumer selectes type and
brand of shower alone (without
advice from plumber)
27%
Consumer takes plumber's
28%
advice on type and brand of
shower
Plumber selects type and brand
alone (without consultation
with consumer)

Exhibit 5: UK Shower Market, by Installation

Method (Mixer Showers Only)

6% Installation by Independent
20% Plumber
Developer Installation for New
54% Home Build
20% Installation by Showroom

Commercial Installation

Source: Aqualisa