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Assignment Submission Form: This Will Be The First Page of Your Assignment
Assignment Submission Form: This Will Be The First Page of Your Assignment
(Please start writing your assignment below)
1.What is the Quartz value proposition to plumbers? To consumers?
Quartz shower had significant benefits to both plumbers and consumers as compared to those of
traditional shower.
The value proposition to plumbers was that
i) Quartz installation time took only half a day whereas traditional shower took two days
ii) Since installing Quartz is very straightforward, plumbers could send their apprentice who
had little or no experience to install Quartz.
The value proposition to consumers was that
i) Quartz provided efficient and reliable water pressure and temperature.
ii) It included a “one-touch” control which was mounted on the shower wall. The Easy-to
use-push button, by flashing red light till desired temperature of water has been reached,
eliminated the need for consumers to stick out their hand in the shower to check the
temperature. Additionally, it also included a feature to set the temperature and once it was
set , the control was automatic.
iii) It is easy and safe to use for children, elderly and the handicapped.
Aqualisa had 20% salesforce who spend most of their time in serving existing customers. It had long
standing relationships with plumbers who were loyal to the brand. Aqualisa interacted with its
network of plumbers and explained to them about the features of Quartz. However, the sales could not
gain traction as plumbers were wary of innovation, particularly involving electronics. They had an
opinion that electronic showers don’t work properly. Furthermore, the difficulty in pitching Quartz
along with other core products is that salesmen tend to gloss over other products.
3. Aqualisa spent 3 years and euro 5.8 million developing the Quartz. Was the product worth
the investment? Is Quartz a niche product or a mainstream product?
Aqualisa spending 3 years and 5.8 million euros in developing the Quartz is worth the investment
since it came up with an innovative product which was breakthrough in shower technology. It had
many advantages over other showers such as easy installation, efficient and reliable water
temperature, and pressure etc. It resolved several issues that consumers had with other products. It
could come up with a product that had significant value proposition to both consumers and plumbers.
Consumers found Quartz very convenient to use while plumbers could install it in a very short time.
Aqualisa also had a new state of the art testing facility, nine patents and a 20-member engineering
team. By leveraging these resources, it was able to develop several other products which were in
advanced stages of development.
Quartz is a niche product as it is good for homes with children, elderly and the handicapped.
4. Aqualisa currently has three brands: Aqualisa. Gainsborough, and ShowerMax. What is the
rationale behind this multiple brand strategy? Does it make sense?
Targeting specific segments in the market, Aqualisa developed several brands that were tailor made to
the needs of consumers in that segment. Aqualisa sold electric showers under a separate brand
“Gainsborough” to DIY(do-it-yourself) market in UK. DIY market composed of customers who were
mainly interested in inexpensive models that were easy to install and electric showers were popular
choice in this segment as they could be adopted to all water systems and could be installed in a day.
Gainsborough was available in approximately 70% of the 3000 DIY outlets in UK.
Aqualisa targeted ShowerMax brand towards developers as it was optimized for developer’s specific
needs. Developers didn’t worry much about the pressure as new homes were built with high pressure
systems, however, they were price sensitive. They had relationships with plumbers who followed
their direction in deciding which brand of shower to install. Sensing this opportunity, Aqualisa
developed ShowerMax brand by redesigning the elements of Aquavalve technology. With Aquavalve
technology, ShowerMax could provide all the benefits that a high pressure shower could do at a
significantly cheaper price. It makes sense because Aqualisa adopted a multi brand strategy that
addressed the needs of customers across various segments.
5. What should Rawlinson do to generate sales momentum for the quartz product? Should he
change his marketing strategy to target consumers directly, target the DIY market, or target
developers? Should he lower the price of the Quartz? Or should he do something different
altogether?
i)Targeting consumers directly: High cost of ad campaigns, customers might still follow the
direction of plumbers as they might still perceive them as subject matter experts.
ii)Targeting DIY market: - DIY market composed of customers who were mainly interested in
inexpensive models, so garner customer attraction in this segment, the price of quartz has to be
drastically reduced. Premium brand…..
73% if the total decsiins and malso many develpers also rem.