Aqualisa Quartz: Case Study

1. What is the lechatelierite sentence revalue proposition to plumbers? What is Aqualisa watch crystal value proposition to consumers? The value proposition of Aqualisa lechatelierite to plumbers is that it is easy to install it is more than lucrative beca spend they atomic number 18 capable to do more generalizations. Because the installation process is less(prenominal) complicated, it takes less time to install ( solitary(prenominal) half a day comp ard to 2 days anteriorly). This gives plumbers the probability to install more units and begin most of the historical 6-month carrying list for bathymetry jobs.Due to a less analyzable installation process, even apprentices are able to do installations, instead of hardly dependent plumbers. The Aqualisa watch crystal point of intersection as well verbalises fantabulous results, which gives the plumbers increased credibility with consumers for installing a superior returnion with less malfunctions. The value prop osition of Aqualisa watch crystal to consumers is that it had efficient and real water pressure and temperature. It is safe to use for kids and elderly people. It has a maven hale control with a red atonic indicator which quited consumers to know when the water pisses the want temperature.Once the temperature is set, consumers only drive to push the one touch control and wait for the light. It is much easier to install for the DIY sector of consumers since it does non require excavation of the wall to r distri only ifively plumbing. The Aqualisa watch crystal also has excellent be after and aesthetics. The control box could now be placed in any put close to a water semen and electrical outlet even in out of sight locations. 2. Why is the Quartz exhibitor non sell? gross gross revenue of the Quartz presentationer are importantly at a lower place expectations. there are a some contributing f dallyors. Slow betrothal Processes.Most plumbers are wary of impert inent technology and do not faith it, especially in light of previous electronic control failures. In addition, plumbers have a comfort level with a token put up and see ever-changing their preferred product as an unnecessary cost. The uncertainty of its performance, which whitethorn result in having to do repair work, plus the time to learn a impudent product, is seen as a hindrance. They seem to adhere to the rule, If it aint broke, dont ready it. Although in that respect has not been much credence with the product, plumbers also may pose a potency challenge with the structure of their lean chedule. If a labor cost of 40 to 80 pounds per hour was constraind by 75% because of the ease of installation, a plumber may have to schedule approximately terzetto times as some an(prenominal) shower jobs to make up the potential loss in labor revenue enhancement or use the time to deliver antithetical services. Sales Targeting and Cannibalization. With the sales displume spending 90% of their time on existing accounts, there is inadequate decoct on trade shops which crisscross plumbers. It also creates the threat of flush toiletnibalization of the new(prenominal) product subscriber lines.Typically, new products should be wrapd to existing customers to either capture new revenue or renew aging products. Another admittance is to introduce the products to new customers. In this case, the product poses manoeuver competition and the sales team up seems unsettled of how to proceed when adding the Quartz to their typical sales process. The solution is for companies to refocus the sales team to buttocks new customers or surgical incision a portion of the sales hale to tell a donation in a particular product line. Product Testing versus merchandise Research.The research and development team at Aqualisa seem to do a adept job of obtaining feedback from the users and to de limitine what would make the silk hat user experience. However, there does not seem to be any feedback gathered from its capital customer base on what problems they are facing, how this new product may exonerate them, and ultimately how it may benefit the plumbers. The approach assumes plumbers will catch on because it was alone a better shower. However, that is not the incumbent situation. 3. Aqualisa fagged lead years and 5. 8 million produce the Quartz. Was the product expense the investment?Is Quartz a inlet product or a mainstream product? The Quartz line product is charge the time and money that Aqualisa spent growing it. The company has been able to create an advance(a), break apart-through product in an extremely mature industry. given the current cost model, Aqualisa faecal matter break even on its investment by selling slightly over 18,700 units (assuming a 50/50 split surrounded by the two models offered). There were 550,000 power shower class units sold in the get together Kingdom in 2000, so selling unless fewer than 20,000 of such a superior product should be an manageable goal.The Quartz is a mainstream product that appeals to anyone who can afford it. While the Quartz may have failed to post strong initial sales numbers there is understandably a demand in the unite Kingdom (and probably the rest of Europe) for a product that fixes all of the problems associated with the old plumbing infrastructure that exists in this part of the world. When there is strong demand and only one supplier that adequately addresses all the consumer inescapably the only missing ingredient is a proper marting campaign, which is clearly lacking.If Aqualisa can efficaciously convey the benefits of the Quartz units to both plumbers and consumers adequately there is no indicate Quartz cannot fuel Aqualisas growth for the next several years. 4. Aqualisa soon has three discolourations Aqualisa, Gainsborough, and ShowerMax. What is the rationale behind this sevenfold marque strategy? Does it make sense? The act of managing multiple markings is a thin awful rope walk that can serve well elevate a firebrand to that degree almost beneficial as good diminish it. Aqualisa has recognized distinct merchandise places within the boilers suit commercialise of showers.An excellent slip of multiple brands can be raddled from the brief anecdote at the seed of the paper with the mentioning of the Marriott that Mr. Rawlinson was a guest of. Marriot has a multitude of brands within their brand. Consumers come in any and every form, from those who seek forest first and have the means to hire the toll for the outgo to those who look at the price tag first and via media on quality and everywhere in between. Marriott lies of the Courtyard, The Fairfield Inn, Marriott Resorts, and Residence Inn, just to name a few.The goal is to isolate the needs and demands of detail types of consumers and utilize severally brand to specialize and cater to that type of consumer. They have up trolled ove rmaster their branding into an architecture specify the brands categories as iconic luxury, luxury, lifestyle, signature, modern essentials, broaden stay and destination entertainment. More than just creating these branches they have focused on clear establishing a separate identity for each brand magical spell still embodying the overall total brands mission.This is a difficult juggling act in multiple brand management, teetering to find the blameless balance between separation and unification. The lengthy stay category consists of those rooms including kitchens, and other amenities to cater more as well long term guests for example. Any market is filled with a myriad of different consumers so to generalize them with one brand as a one size fits all service would be foolish. Marriott has spent a great sum of advertise and marketing dollars and effort to research the market and gain insight into the demands of the consumer.This has also been gross(a) by varying pricing poin ts, among other particularors, in identify to break down the target market into multiple targets. This allows the brand to better serve each demographics precise needs more efficiently and effectively. Aqualisa recognizes the aforesaid(prenominal) trend within the shower market. As stated in the case study, the linked Kingdoms buyers tend to blow over into three pricing segments premium, standard, and value. Aqualisa has developed three brands respectively Aquastyle, Gainsborough, and ShowerMax, to penetrate these markets.Not only are consumers concerned with price but also ease of use, installation and performance. These versatile factors translate to different types of end users. They consist of the DIY consumers, plumbers, developers and contractors, and the retail consumer. These varying users each need to be reached through distinctive means. Tradeshows are the beaver place to reach plumbers and developers while options like hardware stores and showrooms are best for DI Y and retail consumers.In a market such as the shower market in the UK, there needs to be several strategies and methods of market penetration. In order to best cater to these different strategies, Aqualisa mustiness customize and tailor fit a product line knowing for each market segment. This example is a quintessential instance where multiple branding is the best option. Just making one brand in this case would most in spades pigeon-hole their operation and typecast them as just being a product for only one or two types of consumers.A singular brand would in turn ostracize the needs of other miscellaneous types of demand within the market. The sheer fact that there are commercial and residential applications support the fact that multiple product brands are required. Promoting a universal mental object and ideal for your brands that encompasses all product lines and bridge over their differences is imperative Aqualisa has chosen a knowing strategy in pursuing multiple brand s. 5. What should Rawlinson do to generate sales pulse for the Quartz product?Should he depart his marketing strategy to target consumers promptly, target the DIY market, or target developers? Should he raze the price of the Quartz? Or should he do something different altogether? Although the Quartz is very ground breaking and innovative in terms of function and design, many consumers and industry professionals alike are not fully aware of its features and benefits. Aqualisa should commit to an assertive marketing and advertising campaign targeted towards the consumer and DIY markets respectively.Targeting consumers directly will increase brand recognition, depict product differentiation, and in turn allow customers to make informed decisions. Armed with data from customized advertising and marketing strategies, customers are in a unique position to reduce the leverage plumbers have traditionally had in selecting installation brands. The price point for the Quartz should not be lowered because it is a new revolutionary product with basically no market competition.However, Aqualisa should develop methods to effectively mitigate the immediate and continuing move of cannibalization as they strive to increase Quartzs sales. Aqualisa could also benefit from developing a marketing scheme to target plumbers and or industry professionals. Plumbers are influencing 73% of all shower purchase decisions, so getting there buy-in is crucial. Additionally, the overall liveliness value of a single plumber could be well into the tens of thousands of euros (where as the life-time value of a consumer is a few hundred).The organization acknowledges the challenges it faces with products boasting technological advancements ascribable to industry skepticism. This reluctance has undoubtedly been responsible for(p) for the lack luster demand as evidenced by product handiness within trade shops. As part of this strategy the company could offer a series of workshops, trad e, or industry shows designed solely for plumbers to showcase the Quartz features, reliability, and installation ease. In regards to distribution, Aqualisa needs to do a better job of getting their products into the market.Aqualisa currently has only a 40% comportment in trade shops and 25% in show rooms. In order to truly make a difference in sales, the product needs to be in stock(predicate) in more outlets for purchasing. Distribution must be expanded. With the aforementioned strategies, an increased social movement is needed in trade shops, show rooms, DIY chains and general consumer stores to increase brand awareness and recognition. A lower pricing structure would not be a good strategy for the long term because it will reduce value margin.There is some room to lower the price of the Quartz to match the profit margins on the other Aqualisa products. Currently the Quartz line is close to a 32% profit margin, in comparison to the other Aqualisa products which cast off from 22% to 32%. The majority of products rowlock near 26%. However, lowering the price may be a operable option in the future after sales volumes have increased significantly. Listed below are specific strategies Aqualisa could adopt and go through to increase Quartz sales volumes. Strategies