Situation
Aqualisa Quartz, a significantly innovative product developed by Aqualisa, in terms of both cost and quality, has been facing challenges in the market since its launch four months ago. The product described by one of the customers (a plumber) is a 'push-fit-connect-you're done' shower and offers the customers 'what they (the plumbers) want'. Despite the above facts, Quartz has experienced poor sales and has not met the company's expectations.

Brand awareness was low in the industry, problems were frequent breakdowns, re-installations, and leaking/stiff valves, besides pressure and temperature inconsistencies, and nearly half the sales were from replacements. The new Quartz product line is experiencing a very slow adoption …show more content…

They were considering a life style decision here. Not just a utility shower. It would very beneficial to install demos in showrooms, and it would be justified because people were buying the Quartz like an impulse purchase in showrooms.

Plumbers were another important channel, their recommendation is very important (73% of the time), and 94% of jobs involve them. They dislike electrical showers due to their failure in the 80's, their apprehension to install electrical showers could be attributed to the fact that if they failed, replacement would be at their expense. If Aqualisa would be willing to bear this risk, then the apprehension could be removed.

The developers who build premium properties, and who did not perceive Aqualisa products as pricey could be made to install the Quartz, and this way the plumbers would be forced to install them, and they would then convert to Quartz for good.

The easy installation benefit of Quartz shower would certainly be appealing to the "do-it-yourself" retail outlets. However, participating with a retailer such as B&Q would seem counter productive to the Aqualisa premium brand recognition. Aqualisa's price would be significantly higher than the competitor products or Aqualisa would need to reduce their price resulting in likely cannibalization of its Gainsborough brand sales. Perhaps the Quartz model can be re-styled and distributed under the Gainsborough brand in the future.

Increasing