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Group 4, Section D
Situation Analysis
Industry Overview:
40% homes do not have showers (Untapped market)
Key Issues: Water Pressure and Temperature Control
Customer:
73% of the cases the plumber was directly/indirectly involved in the purchase decision (1)
Customers are reluctant to switch brands and 44% of the Sales consists of buying replacement
showers (2)
Developers want customizable products and at prices lower than MRP
Distribution Channels:
Gainsborough product is already present in 70% of DIY outlets
Only high end products are sold in showrooms which are visited by individual shoppers
Aqualisa has presence in 40% trade shops but staff cannot be trained in technology
QUARTZ
High Technology Product involving electronics
Sunk Costs: 5.8 million
In the future Quartz can lead to sister product cannibalism
Sales volume is as low as 30 units/day where expectation is of 200 units/day
Obj: Increase the sales volume of Quartz to 100 units/day in the short run
1: Exhibit 4
2: Exhibit 3
PLUMBERS
Value Proposition
Easy Installation- No need for
Bulky boxes / Excavating the
wall
Installation time reduction:
From 2 to 0.5 days
Push-Fit-Connect technology
General Product Dislikes
Integrated with Electronics
High on Innovation (Plumbers
distrusted too much
innovation)
Perceived notion of
complexity
CONSUMERS
Value Proposition
Water pressure control (12-18
l/min)
Temperature Control (41-45
Celsius)
One touch control
Once set automatic temperature
control
Safe for kids, Easy to use for
elderly
General Product Dislikes
Developers disliked high MRP
products
Mira
Gainsborough
Aqualisa
19%
4%
Heatree
3%
Sadia
Masco
Ideal
Standard
44%
Bristan
Hansgrohe
14% Others
16%
Grohe
Proposed
MRP
Cost
Price
Margi
n
MRP
Cost
Price
Margi
n
Quartz
Standard
85
0
175
675
450
175
275
Quartz
Pumped
10
80
230
850
575
230
345