Aqualisa Quartz Case Study
HBS CASE: AQUALISA QUARTZ – SIMPLY A BETTER SHOWER 1. Aqualisa spent three years and €5.8 million developing the Quartz. Was the product worth the investment? Is Quartz a niche product or a mainstream product? What is the Quartz value proposition to plumbers? To consumers?
Answer: In my personal opion, it was worth for the Aqualisa to spend three years and €5.8 million developing the Quartz because of the tremendous potential market demands. For 60% of families had shower with lot of mechanical problems and inconvenient use experiences, Quartz with it’s signigicate advantages were designed to feet their customer’s needs. The conventional shower can no longer satisigy the market demand, innovation and customer value delivery is the market trend since forever. As the result, the development of Quartz proved Aqualisa’s brand value in marketing base aspect by deliverying “cleverness” of the product and its “elegant design”. As for finance aspect, Quartz provide higher customer value products with considerable margin which even higher than core products-Aquavalve 609. Based on these factor, Quartz is worth the investment in the long run.
Accurently, Quartz was accepted by limited market due to three factors. Fistly, the shower distribution mainly relays on plumbers (Exhibit 4 showcase 27% of consumer selects type and brand of shower without advice from plumber, the rest 73% of consumer are affected by plumbers by different extent.)who reluctant to accept new products with innovation especially involves electronics. Secondly, the sales channel and marketing activities are limited. According to Exhibit 7 Aqualisa Select Financial Statement, only 2.7 million euro was spent in marketing process, which indicate the insufficient marketing strategy or activities may contributed to Quartz’s limited market ratio. However, Quartz is a mainstream product, with its significant advantages which can resolves all issues and with its high customer value, will become the
Answer: In my personal opion, it was worth for the Aqualisa to spend three years and €5.8 million developing the Quartz because of the tremendous potential market demands. For 60% of families had shower with lot of mechanical problems and inconvenient use experiences, Quartz with it’s signigicate advantages were designed to feet their customer’s needs. The conventional shower can no longer satisigy the market demand, innovation and customer value delivery is the market trend since forever. As the result, the development of Quartz proved Aqualisa’s brand value in marketing base aspect by deliverying “cleverness” of the product and its “elegant design”. As for finance aspect, Quartz provide higher customer value products with considerable margin which even higher than core products-Aquavalve 609. Based on these factor, Quartz is worth the investment in the long run.
Accurently, Quartz was accepted by limited market due to three factors. Fistly, the shower distribution mainly relays on plumbers (Exhibit 4 showcase 27% of consumer selects type and brand of shower without advice from plumber, the rest 73% of consumer are affected by plumbers by different extent.)who reluctant to accept new products with innovation especially involves electronics. Secondly, the sales channel and marketing activities are limited. According to Exhibit 7 Aqualisa Select Financial Statement, only 2.7 million euro was spent in marketing process, which indicate the insufficient marketing strategy or activities may contributed to Quartz’s limited market ratio. However, Quartz is a mainstream product, with its significant advantages which can resolves all issues and with its high customer value, will become the