Quartz Case Study
1. What is the Quartz value proposition to plumbers?
The Quartz has solved all problems that the previous products had: it looked great, delivered good pressure at stable temperature, was easy to use and didn’t break down, that meant for plumbers good guarantee, plus it was easy to install, required 50% less time.
2. Why is the Quartz shower not selling?
Well after checking all table charts in the case the answer is to easy. It cost crazy money in comparison with other products on the market. Plus the issue with plumbers who do not have good experience with electronic gadgets also impacts on the sales.
3. Aqualisa spent three years and € 5.8 million developing the Quartz. Was the product worth the investment? Is Quartz a niche product or a mainstream product?
The Quartz was worth the investment made, it really was the breakthrough product, but the cost played the main role here. As we can see, Quartz was selling good only in showrooms, that is just 17% of the market, but it was good in premium brand category, it gained its’ niche. From my personal point of view, at this phase, Quartz is the niche product, it can not become mainstream unless the Cost of manufacturing gets at minimum 2 times lower, even not mentioning to decrease the margin of 275 euro per SKU.
4. Aqualisa currently has three brands. Aqualisa, Gainsborough, and ShowerMax. What is the rationale behind this multiple brand strategy? Does it make sense?
Multiple brand strategy is a kind of investment diversification, it is rationale till the brands give you income, if one of them is going to sink, it’s better to leave it and get oriented on the cash cow product. In this case multiple brand strategy was good step, the company made products for all market segments. Plus as we can see from the product selling by units Aqualisas’ 2 brands had 3rd, and 4th place in top 10 products + others that are not mentioned. So from this point of view the strategy makes sense.
5. What
The Quartz has solved all problems that the previous products had: it looked great, delivered good pressure at stable temperature, was easy to use and didn’t break down, that meant for plumbers good guarantee, plus it was easy to install, required 50% less time.
2. Why is the Quartz shower not selling?
Well after checking all table charts in the case the answer is to easy. It cost crazy money in comparison with other products on the market. Plus the issue with plumbers who do not have good experience with electronic gadgets also impacts on the sales.
3. Aqualisa spent three years and € 5.8 million developing the Quartz. Was the product worth the investment? Is Quartz a niche product or a mainstream product?
The Quartz was worth the investment made, it really was the breakthrough product, but the cost played the main role here. As we can see, Quartz was selling good only in showrooms, that is just 17% of the market, but it was good in premium brand category, it gained its’ niche. From my personal point of view, at this phase, Quartz is the niche product, it can not become mainstream unless the Cost of manufacturing gets at minimum 2 times lower, even not mentioning to decrease the margin of 275 euro per SKU.
4. Aqualisa currently has three brands. Aqualisa, Gainsborough, and ShowerMax. What is the rationale behind this multiple brand strategy? Does it make sense?
Multiple brand strategy is a kind of investment diversification, it is rationale till the brands give you income, if one of them is going to sink, it’s better to leave it and get oriented on the cash cow product. In this case multiple brand strategy was good step, the company made products for all market segments. Plus as we can see from the product selling by units Aqualisas’ 2 brands had 3rd, and 4th place in top 10 products + others that are not mentioned. So from this point of view the strategy makes sense.
5. What