1) Overview

2) Case Background

3) Decision Dilemmas

4) Possible Solutions

5) Conclusion

6) 5C Analysis –
Company

 25% net return of sales and 5%-10% growth

 90% focus on existing customers and only 10% on new
 Premium brand with strong focus on innovation
 Low brand awareness
 Opportunity with 40% untapped shower market
 Concerns of being overpriced
 Slipping in service and product quality

Competitor
Market Share
Hansgrohe
No. 2 in Mixing Valves
1%
Grohe Others
1% 15% No. 3 in Overall Shower Market
Bristan Triton
1% 30%
Heatrae Sadia Main Competitors
2%
Ideal Standard

Masco
3%  Triton
7%
Aqualisa
Mira
22%
 Mira

7%
Gainsborough
Masco
11%
Customer

 Premium – Focuses on high value product designs and service

 Standard – Focuses on usage performance and quality assurance
 Value – Focuses on pricing and convenience of installation
 DIY – Focuses on discounts and easy-to-install products

Factors of Purchase
 Water Pressure
 Temperature
 Break Downs
 Convenience of Installation
 Usage Performance
 Aesthetic Design

Collaborator

Sales
Do-It-Yourself Sheds Showrooms
Trade Shops Other (Electrical wholesalers)

9%

36%

47%
8%

1) Trade Shops

 Main Customer – Plumbers

 Stock for Demand
 Reliable Product Availability > Technical Advice
 40% penetration by Aqualisa
2) Showrooms

 Main Customer – Premium Segment

 Stock for Design
 Designing bathroom solution and part of renovation
 High End Product Line
 Installation Services Offered
  25% penetration of 2000 showrooms by Aqualisa
3) DIY Sheds

 Main Customer – DIY & Value Segment

 Stock for Convenience and Ease of Installation
 Electric Showers of Gainsborough big seller
 Aqualisa unavailable but 70% penetration of 3000 DIY Sheds by Gainsborough
4) Plumbers

 10K Master Plumbers (Shortage)

 6 month wait time for new job, €40 - €60 per hour charges
 Lump sum charges = no cost breakdowns
 Reluctant towards new and unfamiliar
 Expertise & loyalty towards specific brands

Context

 Mostly bathtubs, 60% penetration of showers

 Archaic Plumbing
 R&D team established
 Development of Quartz with investment of € 5.8 Million
 New Facility for Manufacturing, 9 Patents, 20 personnel in Engineering
 Boost of new product development

7) Value Proposition
Customers

 Efficient & reliable water pressure and temperature

 One-touch control panel with push-button light
 Convenience of installation
 Modern look
 Safe for kids, elderly and handicapped
Plumbers

 Half-day installations
 Easy to install, master plumbers not required
 Significantly less breakdowns
8) Why is Quartz not Selling?

9) Customer-Channel Segmentation Analysis

-Which channel is most likely for Quartz?

10) Critical Players in the market and why

Segment Product Purchase Assisted by Channel Used
Knowledge Factor
Premium Moderate Design Style Self Showroom
Standard Low Quality and Plumber Trade Shop
Service
Value Moderate Pricing and Plumber Trade Shop
Convenience
DIY High Pricing and Self DIY Sheds
Ease of
Installation