Aqualiza Quartz (Simply a better shower): Harvard Case Solution & Analysis

Aqualiza Quartz (Simply a better shower): Case Solution 

Importance of Aqualiza Quartz project to the company’s success:

  • Aqualiza, a UK based shower manufacturing company, launched its premium brand ‘Quartz’ in May 2011. The Company has good reputation in the UK market for its top-quality showers, reliability, and great service.
  • The main purpose behind launching this brand was to address the concerns of consumers and the plumbers,who were not satisfied with existing products in the market.
  • Furthermore, the company has made a heavy expenditure of 5.8 million pounds, so the expectation from this project was very high, however it does not seem to achieve high profits due to high prices and lack of marketing.
  • Moreover,the shower has value-added features which give the company competitive edge among the competitors, however the plumbers are not innovative and are reluctant of innovation. Moreover, the product is very important for the company’s success as the company spent a lot on it and that it would cause the loss on its existing products.
  • It was identified that the company initially wanted to recover the research and development cost of the project as it wanted to reach break even after the huge amount of investment. Moreover, the marketing manager stated that they would be able to recover the research and development cost in 3 years. In addition, the company will not be able to generate revenues frequently as the product was expensive, and that the plumbers were not ready to change from tradition style of showers, which was easy to install.
  • This technology is unique as no competitor yet offers this technology therefore,in the recent future many competitors will launch the product of similar quality, and in reducing price to gain market share, therefore the company should give proper guidance to the marketing manager to create awareness among consumers and increase sales at an acceptable level.
    aqualisa quartz case solution

    aqualisa quartz case solution

Reason for decline in sales of Quartz:

  • Quartz brand which was launched by Aqualiza was proposed to appeal the consumers as well as it had features that could suit both the groups.
  • However, the euphoria surrounding the product’s initial launch had quickly faded. In the first four months, few units had been sold despite being available in all of the company’s normal distribution channels.
  • The reasons as to why the brand could not grow in a market are as follows;

Aqualisa Quartz Simply A Better Shower Case Solution

Affordability:

  • Being a premium product, the Quartz shower was priced between 850 Euros to 1080 Euros, which was very high as compared to other brands. Thus, it was affordable for all consumers other than those in the premium segment.
  • Moreover, the developers were skeptical of buying the core products despite heavy discounts as the developers would have been a better market for the product as they would force the plumbers to install a product of their choice.

Price Skimming:

  • Most companies launch new products at a lower price to gain market share, however the Managing Director of Aqualiza was of the opinion that Quartz is a premium product and that it should be launched at a higher price.

Plumbers:

  • The plumbers were reluctant of innovation, and this is the reason for not favoring the idea of installing an electronically devised shower. In addition,the reluctance of plumbers did not help in pursuing the sales of the product.

Other Issues:

  • Quartz had value added features which were not available in existing products. Therefore, the sales of the existing product also declined and that adopting this strategy would negatively affect the company’s sales overall.........................
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