Aqualisa Quartz

1. What is Rawlinson's vision for the future of Aqualisa, and where does the Quartz shower fit in that picture? What challenges does he face in trying to implement this new strategic vision?

Rawlinson is concerned that if Quartz does not gain market share quickly enough, competitors will dominate the market with a similar product within five years. Given that it took three years to develop Quartz, Rawlinson's concern is justified. He realizes that a drastic change in marketing strategy is needed in order to push Quartz to the top of the market but the company is not reluctant to do such a change since managers consider Quartz as a niche product rather than a mainstream revenue driver.

Another problem Aqualisa is facing is regarding the brand recognition. Aqualisa's brand is starting to be considered overpriced. This can lead to the company's revenue driver, Aquavalve to lose market share to competitions product. If Quartz is successfully marketed this will cannibalize sales of Aquavalve but make the Quartz the new revenue driver. Instead of losing the revenue driver to competitors it is much better to replace the revenue driver with a new one.

2. What is the Quartz value proposition to plumbers? To the different consumer segments?

* Value Proposition

o Plumbers

* Easy installation

* More profitable (less time to install, less uncertainty)

* ½ day of work, apprentices can to it

* Can install many more

o Consumers

* One touch control

* Efficient

* Reliable pressure and temperature

* Safer and easier to use

* Easier to install for DIY people

3. Why is the Quartz shower not selling?

* Plumbers do not want to switch. Their perception is that electronic shower solutions do not work and are too hard or take too much time to install. They prefer to stick to the single shower brand they keep installing over and over again. (single brand expertise)

* Low to nonexistent brand awareness.

* Uninformed consumers. They don't know about the benefits of the product.

* Sales (~50%) are driven by replacements, leaking valves and repairs. This portion of sales are not aligned with the value proposition.

* Ineffective sales force. Only 10% developing new customers.

4. Aqualisa currently has three brands: Aqualisa, Gainsborough, and ShowerMax.