Company conducted market research, spent EU5.8 million in development, invested in a new state-of-the-art testing facility, acquired 9 patents, grew engineering team from 6 to 20 and established stages of new product development pipeline. Company spent 90% of their sale efforts on maintaining existing accounts and 10% on developing new customers. Company had longstanding direct relationship with a group of plumbers. Sale force contacted its network of plumbers, calling face-to-face to introduce and explain the new product.
2. What are the wants/needs of plumbers? Of consumers?
Consumers wants a shower that looked great, delivered good pressure at a suitable temperature, was easy to use and doesn’t break down.
(Consumers in the premium segment emphasizes on style. Consumers in the standard price range tended to emphasize on performance and service. Consumers in vale segment were primarily concerned with convenience and price and they liked to avoid solutions that required any excavation).
Plumbers wanted a shower that was easy to install, with a guarantee to not break down or require servicing.
(Plumbers generally preferred to install a single shower brand and extremely reluctant to switch brands. They liked to familiarize with the service they could expect from a manufacturer. They distrusted innovation). 3. What is the Quartz value proposition to plumbers? To consumers?
Plumbers are able to shorten the installation time from 2 days to half-day. The installation is straightforward that plumbers could even send their young apprentices to complete entire job.
For the consumers, the Quartz shower provides efficient and reliable water pressure and temperature with an easy-to-use “one-touch” control mounted on shower wall for target temperature setting and indication.
4. Describe the competitive situation. Who are the major competitors? What are their relative strengths and weaknesses?
The major