Essay About Aqualisa Quartz Value Proposition And High Cost

Aqualisa Quartz Case Study
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CASE DECISION SHEET: Aqualisa Quartz Value Proposition:Based on the case facts, following are value propositions for each users:UsersValue propositionCustomersNo water pressure and temperature fluctuationLow maintenanceSafe for kids and elders as wellEasy to useExcavation is not requiredPlumberLess installation timeEasy to install; even apprentice can install the product. So, master plumber can have lesser waiting timeReasons for under-selling of Quartz:Plumbers are not recommending the product and 73% of the sales are affected by the recommendation of plumbers. They are apprehensive of innovation and they don’t have required expertise of repair and service.Product is perceived as high cost in the market.Company is not targeting the DIY and developer markets.Investments and break-even:Total investment : 5.8 mn eurosAverage selling price:   965 euros                (2 products: 1080euro and 850euro)Average margin per product: 310 eurosFor recovering investment cost, it has to sell 18710 units, which seems an achievable target, given that 5.5lacs units of mixer showers were sold in UK in 2000. Further, there is an unexplored market of 40% of UK homes, which do not have showers.Rationale for brands:BrandsGainsboroughShowerMaxAqualisaCustomerDIYDevelopersAllSales channelDIY ShedsTrade shopTrade shop, showroomAs per the above table, Aqualisa is catering to different customer segments and through different sales channels. This strategy makes sense as it does not dilute the main brand of Aqualisa. This also differentiates it from its competitor Triton, which is a leader in DIY segment.Sales Strategy:Cost calculation (euro)Mixer showerQuartzExhibit 8Retail price7151080Excluding marginCost of installation960-Plumber rate: 60euro*2days*8hoursCost of installation-240Plumber rate: 60euro*4hoursTotal cost16751320Above table clearly shows that the cost to customer of Quartz is lower than that of other mixer shower.