Marketing Case Study Ii: Aqualisa Quartz Essay Example

low-quality and common. As a result, it is best to exclude Quartz from the D.I.Y market.

Despite only 27% of installations being completed without the assistance of plumbers, Aqualisa should recognize the importance of promoting their new product to increase market awareness and customer interest. However, their current advertisement (Exhibit 9) may not effectively generate the desired outcomes, as it overly emphasizes Quartz's technical specifications. Additionally, Aquavalve can be considered Aqualisa's cash cow according to the BCG Growth-Share Matrix definition and may raise concerns of cannibalization.

In view of the competition, Aquavalve may be in danger of being overshadowed by Quartz's superiority. Despite its potential risks, this shift is crucial to prevent losing Aquavalve as a top performer and risking it being taken over by a rival's rising star (Appendix 4). Therefore, it is recommended that Quartz aims to raise awareness and create a positive customer experience while driving sales, all while safeguarding Aqualisa's brand image. A target of 20,000 additional units sold for the 2001 fiscal year should be set, utilizing marketing channels limited to showrooms and tradeshops, excluding DIY stores.

To address communication issues, it is recommended to use the Objective-and-Task Method in determining the promotion budget. This involves dividing tasks into 'push' and 'pull' strategies expected to cost a total of €2-4million. Achieving additional Quartz sales of about 6,500 - 13,000 units per year (see Appendix 2) can offset this cost. The marketing efforts of Quartz should primarily concentrate on primary purchase decision makers, i.e. plumbers, as part of the 'push' strategy (see Appendix 5). Enticing plumbers can be achieved with an additional budget of €1-2million and the following tactics:

1. ...

To enhance the appeal of Quartz, we can take the following steps:

1. We can distribute Quartz installation guides to our plumber accounts to make the installation process easier. This will intensify the ‘ease of installation’ selling point.
2. We can emphasize the ‘highest dollar margin’ selling point to our trade shops, which will push plumbers (their customers) to opt for Quartz.
3. To encourage product handling, we can offer discounts on the first ten Quartz systems installed, allowing plumbers to get a bigger commission.
4. We can also establish a redemption program that rewards plumbers who promote and install a certain number of Quartz systems successfully. This will encourage the diffusion of Quartz innovativeness into the mainstream market.

Aqualisa offers a three-year warranty to both customers and plumbers, providing reassurance to the former and an incentive for the latter to install Quartz. This policy reimburses any cost incurred due to second visitations. To enhance the buyer readiness of consumers within a budget of €1-2 million, Aqualisa should launch a compelling advertising campaign that focuses on intangible benefits such as ease of use and safety rather than the functionality of Quartz. The ultimate goal is to induce more plumbers to try Quartz through customers' prompting, as shown in Appendix 5 and Exhibit 9.

The core benefit of the Quartz shower is providing users with the ultimate shower experience, thanks to its precise temperature regulation, steady output, and user-friendly interface. The Quartz model should continue to focus on early adopters of premium products while Aquavalve serves as the company's Cash Cow. Once the high-end market segment is satisfied, Aqualisa can consider introducing Quartz technology into Gainsborough to

cater to middle-income consumers. Overall, the Quartz model has great potential to revolutionize Aqualisa's business. Despite potential risks to existing products, the company should take advantage of its first-mover status and adopt a hybrid marketing system (see Appendix 6) to secure a strong market position and ensure continued success in the evolving shower industry.