Aqualisa Quartz
The Problem:
Why Aqualisa Quartz was not selling even with high quality, strong functions, innovatory technology and is easy to install, use and design? This means, they have got "the right product" but not "the right vision".
Alternatives:
Targeting Consumers Directly
-Maximum competitive advantage as a breakthrough product
-Skip the plumbers channel in a way, at least affect consumers' choice less
-Once brand loyalty is built, maintaining the relationship is not as expensive as if build partnership with plumbers have to
-High cost in educating consumers especially through buzz campaign, therefore high risk
-Takes long time, competitive advantage/ first-entering advantage reduced
-The frequency of changing shower is not that high so that even brand loyalty is built, the cost is comparatively higher while the profit is lower than daily commodity
Targeting Do-It-Yourselfers
-Easy to install, inexpensive, with largest market share (Exhibit 2 & 6)
-Cooperate with retail outlets such as B&Q to get significant sale with low promotion cost
-Almost no effect from plumbers
-Hurt the high-end position of the brand
-Have negative effect on the sale of Gainsborough
Targeting Developers
-Enlarge the distribution channel, directly increase the sales
-Force plumbers learn how to install the product and reduce their influence on consumers
-Strong the positive effect on consumer through plumbers (Exhibit 3& 5)
-Takes long time to reach consumers, eventually lose competitive/ first-entering advantage
-Profit has to be share
Recommendation:
Aqulisa seems have used almost all the distribution channels to reach the consumer. However, it is consumers who are using the product, the necessary connection between them are plumbers. According to exhibit 4&5, only 27% of consumers select type and brand of the shower completely independently, and moreover, installation is almost done by plumbers. Therefore, actually plumbers can be seen as the final
Why Aqualisa Quartz was not selling even with high quality, strong functions, innovatory technology and is easy to install, use and design? This means, they have got "the right product" but not "the right vision".
Alternatives:
Targeting Consumers Directly
-Maximum competitive advantage as a breakthrough product
-Skip the plumbers channel in a way, at least affect consumers' choice less
-Once brand loyalty is built, maintaining the relationship is not as expensive as if build partnership with plumbers have to
-High cost in educating consumers especially through buzz campaign, therefore high risk
-Takes long time, competitive advantage/ first-entering advantage reduced
-The frequency of changing shower is not that high so that even brand loyalty is built, the cost is comparatively higher while the profit is lower than daily commodity
Targeting Do-It-Yourselfers
-Easy to install, inexpensive, with largest market share (Exhibit 2 & 6)
-Cooperate with retail outlets such as B&Q to get significant sale with low promotion cost
-Almost no effect from plumbers
-Hurt the high-end position of the brand
-Have negative effect on the sale of Gainsborough
Targeting Developers
-Enlarge the distribution channel, directly increase the sales
-Force plumbers learn how to install the product and reduce their influence on consumers
-Strong the positive effect on consumer through plumbers (Exhibit 3& 5)
-Takes long time to reach consumers, eventually lose competitive/ first-entering advantage
-Profit has to be share
Recommendation:
Aqulisa seems have used almost all the distribution channels to reach the consumer. However, it is consumers who are using the product, the necessary connection between them are plumbers. According to exhibit 4&5, only 27% of consumers select type and brand of the shower completely independently, and moreover, installation is almost done by plumbers. Therefore, actually plumbers can be seen as the final