...- - - - - - - - - - - - - Customers Shower buyers fall in three pricing segments: premium, standard and value. First, premium segment is conducted of people who mainly shop in showrooms. Their focus is on great service and high performance. Second segment is called standard. Customers in this segment rely on plumber recommendation and emphasize performance and service. Value segment conducts mainly customers who are primarily concerned with convenience and price. Thus, they like to avoid excavation and also tend to rely on independent plumber in selecting a product. Value segment falls in with DIY market, where people tend to buy in large retail shops, interested mainly in inexpensive models that are easy to install and they are also strongly price sensitive. Channel Main three channels of distribution are Trade shops, Showrooms and DIY Sheds. It is evident that Do-it-Yourself Sheds are dominant in sales for Electric Showers (550.000 units) , which are cheap and easy to install and designed for mass-market. Followed by Mixer Showers (80.000 units) and Power Showers (20.000 units). This represents buyers of lower pricing segment. Showrooms tend to be for more high end products and customers with higher income. Here the best selling products are Mixer Showers (70.000 units), followed by Electric Showers (55.000 units) and Power Showers (20.000 units). Trade Shops are places most applicable for plumbers, where reliable product availability is more important then technical...
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...Solution 1 Aqualisa Quartz: Simply a Better Shower Case Executive Summary Situation Aqualisa Quartz, a significantly innovative product developed by Aqualisa, in terms of both cost and quality, has been facing challenges in the market since its launch four months ago. The product described by one of the customers (a plumber) is a 'push-fit-connect-you're done' shower and offers the customers 'what they (the plumbers) want'. Despite the above facts, Quartz has experienced poor sales and has not met the company's expectations. Brand awareness was low in the industry, problems were frequent breakdowns, re-installations, and leaking/stiff valves, besides pressure and temperature inconsistencies, and nearly half the sales were from replacements. The new Quartz product line is experiencing a very slow adoption process probably mostly due to the stigma that has remained from other electronic showers that have failed. Consumers and plumbers do not have much faith in the current quality of existing shower products much less an electronic version. The Market Showers were affected by low pressure and varying temperature of water. Aqualisa sold the electric showers, one of the solutions, through their Gainsborough brand; electric showers were visible in the shower stalls and did not solve the pressure problem. Mixer showers were the other solution. Manual mixers and Thermostatic Mixers were available. Aqualisa sold the Aquavalve in this segment, it was thermostatic, but could...
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...Marketing Concepts Aqualisa Quartz Case Study Problem As Rawlinson stated, “real breakthroughs are pretty rare in the shower market” and that “innovations are primarily cosmetic.” After years of moderate growth and marketplace comfort, Aqualisa made the decision to revamp its R&D efforts to produce an innovative solution to the common consumer shower troubles of water pressure, consistent temperature, and reliability. When Aqualisa released Quartz, a new and innovative shower product line that would solve the consumer shower problems; it was hampered early by slow sales and a slow adoption rate in the early goings of the product launch. As managing director of Aqualisa, Harry Rawlinson was challenged with the question of how to generate sales momentum for the Quartz showers. In addition to increasing sales there was also a question that Rawlinson failed to thoroughly address in the article, which was, should he drop the price? Analysis One thing that Rawlinson would have to consider for driving sales would be the price of the product. Although the article does not include any bulk or discounted prices, Rawlinson often stated in the article that discounting the price of their products was not something they cared to do. What I find interesting about the Quartz products is that the cost to produce the product is very comparable (€175 - €230) to the other products that they were currently making. Granted there was an increase from the money spent on R&D, but his perception...
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...Case study Aqualisa Quartz: Simply a better shower Q1. What is the Quartz value proposition to a) consumers b) plumbers? Ans. Aqualisa, a U.K. based shower manufacturing Company had launched its premium brand µQuartz¶ in May 2001. The Company has been very reputed in the U.K. market for its top quality showers, reliability and great service. The basic purpose behind launching this brand was to address the concerns of the consumers and the plumbers which perhaps were not satisfied with the existing products in the market. Stated below are the issues faced by the consumers and the plumbers and the value proposition offered by Quartz: a) Consumers: Consumers were typically not happy with the kind of showers that were available in the market as revealed by the market research conducted by the Research and Development team of Aqualisa. The consumers wanted a shower that looked elegant, delivered water flow at good pressure, had a stable temperature, was easy to use, do not break down easily, have valves that do not become stiff and hard to turn after a period of time and don¶t require servicing very often. Also, they did not want the big bulky boxes installed for the mechanical control right over their shower wall. Inorder to address these concerns, Aqualisa launched its new product Quartz for providing a solution to the problems faced by the consumers apart from having certain added features. The Quartz, being elegantly designed was easy to use. It gave an option to consumers to run...
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...AQUALISA QUARTZ: SIMPLY A BETTER SHOWER F ELIX L E C HEVALLIER – 11/01/2012 1) Which value do the various products from Aqualisa (the UK company) create: for consumers ? for plumbers ? for its channel partners ? The first step that we need to take is to analyse what are the segmentations of the market. There are three pricing segments as said in the case: premium, standard and value. These segments differentiate the basic consumers; we then have DIYers and developers that have specific standards. We will analyse the aquastream, the gainsborough, the aquastyle and the aquavalve, and the quartz. Channel DIY outlet Consultant’s Advice Decision Criteria Customer Segment DIYers Customer Values Price Convenience Style Performance Service Price Convenience Reliability Style Price Quartz -++ ++ ++ ++ -++ ++ ++ -Gainsborough Aquavalve Aquastyle ++ / -+ ++ + / ++ -/ + + -+ / ++ -+ ++ + + ++ Aquastream -/ ++ + -/ -- Showrooms ACQUALISA Premium Trade Shops Plumber’s advice Standard Value Specialist Contract Habit & Relations Developers The products show great differences in their characteristics in addressing customer’s preferences. They are targeting different segments and thus they don’t create value thanks to the same advantages In addition to the table, we can stress one of the preferences of the plumbers that is of importance. The installation time sensitivity. Indeed, as said in the case, the main issue is the reluctance of plumbers towards electronical...
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...Professor Youngme Moon and Research Associate Kerry Herman prepared this case. HBS cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. Some data have been modified or disguised. Copyright © 2002 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685, write Harvard Business School Publishing, Boston, MA 02163, or go to http://www.hbsp.harvard.edu. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of Harvard Business School. YOUNGME MOON Aqualisa Quartz: Simply a Better Shower Plumbing hasn’t changed since Roman times. — Tim Pestell, Aqualisa national sales manager Harry Rawlinson (HBS ‘90) shrugged out of his overcoat and headed to the reception desk of the South Kent County Marriott. “Can you direct me to the breakfast room?” he asked, “I’m meeting some guests from America.” The receptionist pointed toward a hallway lined with photographs of the region’s golf fairways and putting greens. “It’s just to the left down there,” she said. As he strode down the narrow corridor, Rawlinson, managing director of Aqualisa (see Exhibit 1), a U.K. shower manufacturer, felt a surge of energy. He...
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...Aqualisa Quartz Simply a Better Shower 1) In 2001 the Company came up with Quartz Standard Shower and Quartz Pumped Shower. The production and innovation used to create these two products provided the following value proposition to the two groups: a) Consumers : The consumers were unhappy with the existing showers in the market , they faced the following issues that were addressed by Quartz * Poor Pressure and varying temperatures of water * The life of the showers was limited , they would break after some time * Due to scaling, it becomes hard to turn knob of the shower * Getting a plumber to fix a standard shower Typically took 2 days and the waiting line for getting a plumber was 6 months due to shortage of master plumbers * Bulky set up for the shower The Quartz dealt with all these issues and more for the consumer, the developed a shower that addressed all the needs * It provided efficient and reliable water pressure at the press of a button * At the desired temperature of 41 degrees * The easy push button to control light on valve that flashed red every time the water was ready for use * It was safe to use for kids and the elderly didn’t need to struggle with the turning the tap * It didn’t require much time for installation, was easy and not bulky * It was perceived as efficient and incredibly convenient b) Plumbers : The main concerns faced by the plumbers were * They were skeptical towards technology and...
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...Aqualisa is a well-established manufacturer of showers in the UK. The company is recognized for quality products, innovation and great service. Despite great features and benefits of the recently developed digital shower Quartz, the initial sales results are very disappointing, and the management needs to redefine marketing strategy in order to improve performance. In particular, key decisions need to be made about target segment, value proposition and marketing mix. 1. What value does the Quartz shower offer to plumbers and consumers (its value proposition)? Quartz shower is a very unique product in the market place with multiple competitive advantages. It offers great value for both plumbers and customers, however it seems that the target market has not been carefully selected and value proposition has not been well defined and communicated. | Plumbers | Consumers | Value Proposition | * Saves time on installation - easy to install within 4 hours, can be completed even by apprentice, low space requirement, less complex / challenging job * Allows to generate more profit versus other shower products – due to easy installation, plumbers can take more orders / jobs * Drives business & customer satisfaction – appealing product, easy to demonstrate, more happy customers due to product features & benefits, incremental business growth by word of mouth * Reliability - 5 year warranty | * Convenience, All-in-One - efficient and reliable water pressure and...
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...Marketing Management Case Study May 2, 2013 Prof. Michele Costabile Francesco Borsetti Davide Novelli Bruno Ricardo Yuli Pacheco Valentina Verde UK MARKET FOR SHOWERS Environment Clustering THE PRODUCT SWOT ANALYSIS BRAND MANAGEMENT PRICING Cost comparable Pricing strategy PUSH STRATEGY Which advantages for the intermediaries? PRODUCT PROFITABILITY: BREAK EVEN POINT VALUE PROPOSITION CHANNEL AND DISTRIBUTION CONCLUSIONS Low diffusion of showers/high diffusion of bathtube Old equipments with temperature and pressure problems Low product involvement Low brand awareness (Triton excluded) Key role of plumbers 10,000 Master plumbers in UK SHORTAGE Long training 40-50 showers installation per year Labour cost: €40-€80 per hour Warried about innovation Plumbers advises about showers influence the 70% of the market Value segment Price sensitive Influenced by plumbers Standard segment Performance and service sensitive Influenced by plumbers Style sensitive Showrooms buyer Influenced by showrooms consultants Developers Large channel Price sensitive Different needs: in new buildings there aren’t pressure/temperature problems Do-it-yourself Premium segment Price sensitive Need easy installation Plumbers: the Infomediary Product Innovative for the market Solution of diffuse problems: low...
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...9-502-030 REV: JULY 10, 2006 YOUNGME MOON Aqualisa Quartz: Simply a Better Shower Plumbing hasn’t changed since Roman times. — Tim Pestell, Aqualisa national sales manager Harry Rawlinson (HBS ‘90) shrugged out of his overcoat and headed to the reception desk of the South Kent County Marriott. “Can you direct me to the breakfast room?” he asked, “I’m meeting some guests from America.” The receptionist pointed toward a hallway lined with photographs of the region’s golf fairways and putting greens. “It’s just to the left down there,” she said. As he strode down the narrow corridor, Rawlinson, managing director of Aqualisa (see Exhibit 1), a U.K. shower manufacturer, felt a surge of energy. He had been looking forward to this opportunity to discuss an HBS case possibility. In May 2001 Aqualisa had launched the Quartz shower, the first significant product innovation in the U.K. shower market since—well, to Rawlinson’s mind—since forever. But here it was early September 2001, and the euphoria surrounding the product’s initial launch had long since faded. Rawlinson knew the Quartz was technologically leaps and bounds above other U.K. showers in terms of water pressure, ease of installation, use, and design. But for some reason, it simply wasn’t selling. The U.K. Shower Market Rawlinson leaned forward as he began to explain his situation. Showers in the U.K. were plagued with problems. While everyone had a bathtub, only about 60% of U.K. homes had showers....
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...9-502-030 REV: JULY 10, 2006 YOUNGME MOON Aqualisa Quartz: Simply a Better Shower Plumbing hasn’t changed since Roman times. — Tim Pestell, Aqualisa national sales manager Harry Rawlinson (HBS ‘90) shrugged out of his overcoat and headed to the reception desk of the South Kent County Marriott. “Can you direct me to the breakfast room?” he asked, “I’m meeting some guests from America.” The receptionist pointed toward a hallway lined with photographs of the region’s golf fairways and putting greens. “It’s just to the left down there,” she said. As he strode down the narrow corridor, Rawlinson, managing director of Aqualisa (see Exhibit 1), a U.K. shower manufacturer, felt a surge of energy. He had been looking forward to this opportunity to discuss an HBS case possibility. In May 2001 Aqualisa had launched the Quartz shower, the first significant product innovation in the U.K. shower market since—well, to Rawlinson’s mind—since forever. But here it was early September 2001, and the euphoria surrounding the product’s initial launch had long since faded. Rawlinson knew the Quartz was technologically leaps and bounds above other U.K. showers in terms of water pressure, ease of installation, use, and design. But for some reason, it simply wasn’t selling. The U.K. Shower Market Rawlinson leaned forward as he began to explain his situation. Showers in the U.K. were plagued with problems. While everyone had a bathtub, only about 60% of U.K. homes had showers. Archaic plumbing...
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...Final Exam Questions Course 62.601 (Customers and Markets) Fall 2014 / Professor Tao (Tony) Gao Question 1: I recommend CDT to introduce accessories for music, movies and video game fans as a new category of products. These accessories include posters, clothes, cups, and so on. These accessories related to a specific movie or famous star, for instance, a T-shirt with a theme of Star Wars. As CDT is a store for music lover and movie lover, this new category can attract these customers’ attention when they looking for their entertainment products. Based on the customer survey, 56% of customers are between 18 and 36 years old, these young customers more like to purchase the accessories for collecting. The accessories for music and video are a new trend that more and more famous singers and movie companies like to release some accessories about their music and movies to earn more money. It provides a new way for CDT to compete with these mass merchandise stores. These merchandise stores are only sell CDs and movies, they do not sell these accessories. In addition, these accessories are high profit products. If CDT introduces this new category, it will bring high profits to CDT. It is a good category for CDT’s long-term business. The digital downloading and piracy significantly affect the sales for CDT’s traditional business. However, the new category will not affected by digital downloading and piracy, so it may be a good way for CDT to focus on it. Question 2: 1. Introducing...
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...create value and profit for the company. Maintaining a strong and compelling value proposition and long-term relationship with the company’s customers are vital for the company’s continued success and require constant monitoring of market, environmental, technological and competitive forces. Marketing is therefore integral to establishing a company’s strategic direction. This in turn makes marketing skills and perspective essential to the success of all business managers in any business. This course provides an in-depth exploration and practical application of basic marketing tools. These include product policy, pricing, promotion, distribution, sales management, and customer segmentation and retention. In most classes, we will analyze case studies that require us to identify marketing opportunities, refine value propositions, select customer segments and develop marketing programs for a variety of management situations. The course also includes a number of creative and analytic...
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...create value and profit for the company. Maintaining a strong and compelling value proposition and long-term relationship with the company’s customers are vital for the company’s continued success and require constant monitoring of market, environmental, technological and competitive forces. Marketing is therefore integral to establishing a company’s strategic direction. This in turn makes marketing skills and perspective essential to the success of all business managers in any business. This course provides an in-depth exploration and practical application of basic marketing tools. These include product policy, pricing, promotion, distribution, sales management, and customer segmentation and retention. In most classes, we will analyze case studies that require us to identify marketing opportunities, refine value propositions, select customer segments and develop marketing programs for a variety of management situations. The course also includes a number of creative and analytic assignments, including a semester-long, group...
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