Aqualisa was a high reputation Company and launched the Quartz shower, which is the first significant innovation product in the U.K shower market. This product solves the poor pressure, varying temperature, hard to install and other problems for customers. During the field tests, it was received many positive reviewers. Although this product seems satisfied with customers’ needs, the early sales results were poor. To change a marketing strategy or not is a key issue that Rawlinson is facing now.
Analysis:
By analysis the competition in the UK market share (Exhibit 1), the company has three main competitors-Triton, Mira and Masco. The market share of Triton is about 30% and Mira is about 22%. Gainsborough (11%) and Aqualisa (7%)market share ranked in number three. All of these companies are supplying the similar products. It is difficult for Aqualisa to gain competitive advantage. Also only Triton succeeded in building brand awareness at the customers level. As a result, most consumers do not pay more attention on other brands. This is one of the reasons caused the sales decrease.
Besides, most consumers were complaint about their showers because of the poor pressure, varying temperature, hard to turn valves, leaky seals and worn-out showers. They were even uniformed about showers and there was little understanding of product options. Basic on bad previous experiences on other brands’ showers, it is difficult for them to accept a new product. For plumbers, they were distrusted about innovation products. Usually they have their own loyalty brands and were extremely reluctant to switch brands. However, plumbers are playing an important role in customers’ purchase decision for the shower products. It was influenced about 73% of the whole market sales. (Exhibit 2). Although Quartz value proposition both to consumers and plumbers is better than older products (Exhibit 3), the company did not build a good connection between consumers and plumbers. As a