Aqualisa Essay

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Marketing 1, Day 4 Marketing Report - Aqualisa Aqualisa Quartz: Simply a better shower Exercise 1: Analysis of the UK shower market In this section I aim to analyze the UK shower market in the context of an existing company that is introducing a new product. Seeing that the shower market in the UK is in a mature stage, I will focus on the following items: Market size: How large is the market? Is it growing? Competition: Who are the players in the market? What are their focus areas? Who would a new product have to compete with? Company: Who is Aqualisa? How are they perceived in the market? Customers: Who is buying the products? What are their needs? The key buying factors in this market are peculiar and therefore deserve an analysis as well. Market size and expected growth The market size can be roughly estimated from the existing data by combining the average prices of Aqualisa and Gainsborough offerings in various segments with the number of units sold. As shown in Exhibit 1 – Value of the UK Shower Market, the total market volume is estimated to be 622 million GBP. Crosschecking this estimate with Aqualisa's sales and market share yields a total volume of 682 million GBP. An estimate of 650 million GBP can therefore be regarded as a viable working number. While there is no data available regarding the past growth of the market, there are two reasons to assume that there will not be a huge growth: 44% of shower sales in 2000 were due to replacement showers. In other words, if showers had not broken down, these sales would not exist. As it is more likely that quality increased than it decreased due to the progress in manufacturing, it is unlikely that the number of replacement showers will grow by much. The remaining reasons for shower sales are "luxury reasons": New properties, installing second showers or adding showers to bathtubs are all reasons

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