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Aqualisa Quartz: Simply a Better Shower - Case Study Example

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Aqualisa Quartz: Simply a Better Shower

The launching stage of the product brought with itself a lot of excitement and anticipation but although there were thousand showers distributed to the other channels, these were able to sell about eight showers in total. The reason behind the poor sales was firstly, the plumbers did not welcome innovation of any in the field of electronics since they are late adopters and do not welcome the new technology at first. It takes time for the plumbers to adopt new technology of any sort at any stage; therefore they did not spread the word of mouth that the electronic showers were useful and they even stopped the customers from purchasing these showers at the same time. On other hand, Aqualisa’s Quartz was placed as a premium product which was penetrating in to the market and the product was priced at premium rates and the product which was already penetrating in to the market priced at high prices barred the product from a better market penetration. Since Quartz was in direct competition with the core products of the company, therefore company stopped it from comparing it with other products which they offered since it could have hurt the sales of Aqualisa indirectly. 2. What factors will determine the profits that Aqualisa will earn from the Quartz? There a numerous factors which will affect the profitability of Aqualisa, starting from the price of the showers which is available at the market at a premium price. The pricing strategy decides if the product will be profitable in the market, or will be able to breakeven, whereas on the other hand, wrong pricing strategy can affect the profitability as well. In the case of Aqualisa, the price is kept at a premium although the product is penetrating in to the market; therefore due to this the company is facing problems in selling the showers in to the market which has affected the revenues earned by Aqualisa. Moreover the channel of distribution is another aspect which influences the profitability of Quartz, since Aqualisa has offered the product at different channels of distribution, from the showrooms to the independent sales stores. The promotional strategies used by Aqualisa will also reflect the profitability of the company since the marketing strategy of promotion is the underlining way which portrays that how much revenue will be earned by the entity. 3. If the product is successful, will Aqualisa be able to create barriers to entry to prevent other firms From entering the market with a similar product? Aqualisa is primarily focusing on the innovation and technology, the concept of electronic showers is new to the market which steps away from the concept conventional and conservative showers which were already being produced by Aqualisa. However the concept of electronic powers is unique and hence the risks exposed to the entity are immense as well because the parent company is facing difficulties in selling such an invention because this is not easy to get adopted by the consumers. Therefore the cost of research and development of the electronic showers is very high and apart from this initial cost, convincing the customers to purchase the new innovation means using the pricing and promotional ...Show more

Summary

Why do customers and plumbers apparently not recognize the benefits of the Quartz? The launching of the premium brand, Quartz, did not bring about much success for the company Aqualisa which was a UK based shower manufacturing company, known for reliability, quality and innovation…
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