Hbs Aqualisa Quartz Case Write Up
Aqualisa Quartz Case Write up
Problem: Aqualisa is suffering from a lack of sales momentum with their new Quartz product line due to a lack strategic promotion. The firm is has boldly attempted to innovate the electric segment of the UK’s shower market. Unfortunately plumbing products have little brand recognition amongst consumers and Aqualisa has a small share of the electric shower market further reducing their new product’s visibility. As electric showers have a reputation of being problematic, independent plumbers who perform the majority of shower instillations in the UK are hesitant to adopt a new electric product line. The circumstance is further confounded by Quartz’s premium pricing putting it in jeopardy of becoming a niche product. Although they received accolades and recognition by promoting the Quartz at product expos, the firm is experiencing sluggish sales.
Alternative 1: Utilize the sales reps and their established relationships to aggressively promote the new Quartz product line. Since Aqualisa’s strongest sales have been through the trade shop channel it would make good sense to convert the independent plumbers who already choose their products. Making a case to plumbers to adopt the Quartz system would be two fold. Educate them on the cost benefits of time saved from the easy installation process. Then offer a manufacturer rebate initially to generate sales momentum.
Pros:
* Puts the Aqualisa Quartz into the hands of contractors who might normally be discouraged by the style and price. * If plumbers adopt the Quartz and embrace it, word of mouth advertising will increase as more Quartz are installed and more consumers and plumbers experience the value.
Cons:
* Using discounts to increase sales volume will initially impact profits * Sales motivated by discounts can create a fair-weather customer base, only interested in buying when Quartz is discounted
Alternative 2: Since DIY sheds constitute the majority of
Problem: Aqualisa is suffering from a lack of sales momentum with their new Quartz product line due to a lack strategic promotion. The firm is has boldly attempted to innovate the electric segment of the UK’s shower market. Unfortunately plumbing products have little brand recognition amongst consumers and Aqualisa has a small share of the electric shower market further reducing their new product’s visibility. As electric showers have a reputation of being problematic, independent plumbers who perform the majority of shower instillations in the UK are hesitant to adopt a new electric product line. The circumstance is further confounded by Quartz’s premium pricing putting it in jeopardy of becoming a niche product. Although they received accolades and recognition by promoting the Quartz at product expos, the firm is experiencing sluggish sales.
Alternative 1: Utilize the sales reps and their established relationships to aggressively promote the new Quartz product line. Since Aqualisa’s strongest sales have been through the trade shop channel it would make good sense to convert the independent plumbers who already choose their products. Making a case to plumbers to adopt the Quartz system would be two fold. Educate them on the cost benefits of time saved from the easy installation process. Then offer a manufacturer rebate initially to generate sales momentum.
Pros:
* Puts the Aqualisa Quartz into the hands of contractors who might normally be discouraged by the style and price. * If plumbers adopt the Quartz and embrace it, word of mouth advertising will increase as more Quartz are installed and more consumers and plumbers experience the value.
Cons:
* Using discounts to increase sales volume will initially impact profits * Sales motivated by discounts can create a fair-weather customer base, only interested in buying when Quartz is discounted
Alternative 2: Since DIY sheds constitute the majority of