Problem StatementAqualisa launched the most significant shower innovation in recent British history - the quartz shower. The shower offers significant improvements in quality, cost and ease of installation. In product testing, the Quartz shower received rave reviews from consumers and plumbers alike. However, early sales of the Quartz were disappointing. Now, the company faces some key questions about whether to change its channel strategy, promotional strategy, and overall product positioning (niche or mainstream product) in the context of its existing product line. Analysis of the Company situation: Aqualisa, 3rd in the shower market with a coverage of 18%, had a successful marketing strategy, which allowed it to achieve a net return on sales of 25% and growth from 5% to 10% in a mature market. They have effectively segmented their markets and have products that meet the needs of each segment (product range of 9 models covering the three types of showers used in the UK, ranging from 230 to 670). Their channel relationships are strong and positioning has helped them get a good brand in the market. The company used shower max (specialized product similar to Aqualvalve at a lower price than previously mentioned) to penetrate the developer market. Company Strengths* Strong reputation in the shower market* Highly profitable company* High quality products* Excellent service* Strategic use of The Gainsborough brand wants to penetrate the low cost market Company Weaknesses* Only available in 40% of stores specialized, in 25% of total showrooms and in 70% of total sales points* 10% deserted products* Competition catches up in product quality* Considered an expensive brandCustomers: in general customers in the single market segment have a common characteristic; they could identify problems in current showers which were low pressure, variable temperature and breakdowns. Within this single customer category there are sub-segments based on different needs. After the description of the customer categories, the behavior of plumbers is discussed, which is fundamental for understanding the true nature of the market. Although they are not the end consumers, their role will be significant for Aqualisa in creating an effective marketing strategy. Value Customers: Customers in this category are mainly concerned with low price and convenience. Although style or appearance are not their main concerns, functionality plays an important role. Price is very important for this category because they don't like to spend money on solutions that require excavation (as it would increase installation costs)).
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