Introduction
The purpose of this memo is to discuss new strategy to solve the issues facing the Aqualisa Company and Mr. Rawlinson. Struggling sales of their innovative Quartz Shower has led managers to believe that they may be trying to sell a niche product. The company will increase sales of the product by increasing its presence in showrooms and focusing its efforts to win preference of the plumbers who are market influencers. Showrooms have been a proven seller for the Quartz shower early in the sales process. Plumbers are influencers in the shower market and stand to gain many benefits by adopting the Quartz product quickly.
Strategy
Technology and innovation is meant be experienced. Businesses must see the benefits to their company and consumers must see how this will improve their everyday life. Rather than focusing on advertising and media spend, Aqualisa will move forward by making it possible for users to experience the product before use. Half of last years marketing budget will be used to distribute the Quartz product into showrooms and to plumbers as a way to generate increasing sales. By focusing on market influencers (plumbers) and increasing the company’s presence in showrooms we believe we will be able to meet sales goals and become the leader in the shower market.
Focusing on Influencers
According to research done on how consumers selected their shower, 73% said a plumber either influenced their selection or selected the shower for them. They are also the primary customers of trade shops, which account for the largest percentage of shower sales in the market. Aqualisa needs to focus their marketing efforts on helping plumbers adopt their product. Plumbers are largely averse to new technology. They find it either too difficult to install or not reliable. If the installation breaks down it often requires a second visit by the plumber out of his or her own pocket. To help plumbers view the benefits of adopting the Quartz shower, Aqualisa must change its value proposition to focus on business benefits rather than technological features. The company must create a “what’s in it for me” message to the plumbers that focuses on ease of installation, time saved, and return on investment. Aqualisa’s most recent advertisement (shown in exhibit 9 of the case) is full of features that the consumer would be interested in. This messaging misses the influencers of the market completely; the individuals who are actually recommending and installing showers. Not only does the messaging to the plumbers need to be changed, but the slow adoption rate needs to overcome meet the sales goals for the Quartz showers. To speed adoption rate Aqualisa will put one quarter of its marketing budget into free product for plumbers to try. This gives Aqualisa either 3,891 Standard Quartz units or 2,961 Pumped Quartz units to help speed adoption of the product. Adoption rate is expected to be 35% of the plumbers contacted in the first year. The goal is for plumbers to see the business benefits of the product by having a