Assignment issues discussion
Question-1: What is the Quartz value proposition to the plumber? To consumers? Answer:
Value proposition to customer:
• Efficient the reliable water pressure
• Efficient and reliable temperature control.
• Easy to use. This can be used by children, elder person as they don’t need to worry about valve adjustment. Value proposition to Plumber as follows:
• Installation time is ¼th of the previous one.
• Installation does not require master plumber. This can be done by apprentice plumber or inexperienced one also.
Question-2: Why is the Quartz Shower not selling?
Answer: Following factors influence the sales of Quartz:
1. Plumber:EXIBIT-4 clearly shows the brand that chosen by plumber has significant impact on brand sales. ➢ 28% takes plumber advice
➢ 25% takes Plumber selected choice
➢ 20% plumber influences type of showers
This shows plumber has 73% influences on brand and shower choice. 2. Channel distribution
➢ Do-It-Yourself: Aqualisa presence in DIY is very low. Only Gainsbarough brand is available in 70% of outlet. ➢ Showrooms: Aqualisa is present in 25% of showrooms. Currently there are 2000 showrooms and out of this only 500 has aqalisa presence. Quartz is premium segment brand as of price perspective, most of the premium of brand sales happen through this channel. ➢ Trade shop: Aqualisa brand is available in 40% of trade shop. this is the channel through which plumber trade the shower. The main reason why Quartz is not a first choice because ➢ Bad experience with previous electronics push switch in 80’s. ➢ If problem happen in existing fixing then second visit cost comes on plumber.
3. Sales person from Aqualisa
The sales team priority
➢ 90% time maintaining in existing account.
➢ 10% time on developing new customer
As per Mr. Pestell Aqualisa’s national sales manager “Adaptation is a long, slow process. It takes time”. Since sale of Aqavalve is our bread and butter and it can go away if no one’s watching. The Director of Marketing Martyn Denny says “ How do we pitch our other products alongside Quartz? Right now, if Quartz is mentioned , our salesman tend to gloss over our other product. In fact , to sell the Quartz, they have to point out difficencies in our existing products. That really makes any sense, does it?” Now we can conclude following points:
1. Plumber influence 73% of sales but does not have confidence in this product. 2. The Aqualisa has limited presence in various distribution channel, due towhich the sales is not picking-up. 3. Company’s staff is somehow reluctant to sale of this product. Since it is new invention and the fact can not be denied that anything new happens to overcome previous problem and have new facility. Question-3: Aqualisa spent three years and € 8.5 MM developing the Quartz product. Was the product worth the investment? Is Quartz a niche product or mainstream product? Answer: The investments will worth it if the demand of this product is much higher then the product development cost. To check the market potential following facts will be taken
|EXIBIT-2 | | | | |Brand |Electric Shower |Mixer Shower |Power Shower | |Aqalisa |186000 |114500 |25000 | |Others |914000 |435500 |125000 | |Total |1100000 |550000 |150000 | |%share |16.90% |20.80% |16.67% |...