Notes on Aqualisa Quartz Case Study

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Preparation Questions:
1. What is the Quartz value proposition to plumbers? To Consumers? To plumbers:
a.Very easy to install - 'push-fit-connect-you're done'
b.More profitable –
i.½ day work (25% of previous time), apprentices can do work also – opportunity to install more and capture some of historical 6-mo. wait list ii.on average, plumbers do 40 to 50 a year (generally 2-day job), but generally without reducing profit, will be able to do many more To consumers:

c.Efficient and reliable water pressure and temperature
d.One touch control with red light indicator
e.Much easier to install for DIY sector

2.Why is the Quartz shower not selling?
a.Reluctance of plumbers to switch; mostly due to stigma of other innovative options that failed or required repairs, affecting consumers b.Possibly overpriced
c.Really only gaining traction in the showrooms, concern about cannibalism (and bringing down value) of other products

3.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? a.Yes, worth the investment, because technologically innovative. Early test results showed consumers loved the product. Consumers are currently relatively uninformed and there was little understanding of product options b.Mainstream, superior product and resolves all issues:

i.Poor pressure
ii.Varying temperature
iii.Break after a while

4.Aqualisa currently has three brands: Aqualisa, Gainsborough, and ShowerMax. What is the rationale behind this multiple brand strategy. Does it make sense? Yes, to allow brand to penetrate different specialized markets. a.Aqualisa – higher end, range of different types of electric, mixer, and power showers; shown in show rooms and used my consumers/plumners, Aqualisa available in 40% of trade shops b.Gainsborough – mainly for DIY market (sizeable) ; 70% of Gainsborough brand c.Shower Max – for developers, only...
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