Aqualisa Case Study

Words: 922
Pages: 4

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
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Red-light indicator seems to have been successful in the show room ii. Offer rebates until product gains awareness
1. Incentivizes consumers to help convince plumbers
2. Once people are aware and see product, word-of-mouth marketing
c. Does not need to be primary area of focus, but continue to market in show rooms to reach high-end customers
d. Don't shift strategies:
i. Do not lower current price since it is a specialty product; Just need to gain market share of plumbers/general consumers. ii. Do not lower price also because overall cost to consumer will be lower because generally have to pay higher costs for excavation and plumber labor. Customer pays $640 to $1280 in labor costs plus excavation fees. This is more than the $160 to $320 that it would cost the customer to install a Quartz brand. So, overall the consumer would be paying less. iii. Do not focus on DIY market. Will be very over-priced compared to other DIY products and hard to capture customers and Gainsborough brand has large percent of market share

6. How does Aqualisa fit with Rawlinson's strategy for the company going forward? What challenges does this strategy present?
a. Addresses all consumer concerns, just need to educate them that this is ultimate in showers in technology, functionality, and aesthetics
b. Large potential market share – only a few main competitors (i.e. Triton, Mira), but Aqualisa now has ultimate product
c. Challenges:
i. Selling