The Rainbrain Case Summary

Due to the previous product design, the top competitors had a product design system that required the purchase of multiple products. The Koehler product, DTV prompt, had a total product cost of over $994, which includes the thermostat valve and user interface (“Kohler Bathroom”). Moen’s top digital shower product, ioDigital, costs a total of $815 (“Moen IoDigital”). The Rainbrain by Hansgrohe costs upwards of $4000, overpriced compared to the other two (“Hansgrohe”). Although skewed with the addition of the Rainbrain’s price, the arithmetic average for this product category is $1913.
Final Price Due to research and development costs in the early stages, this product will be priced higher than the target sell price in the introduction stage. A $1000 price tag would be an ideal starting point because it is relative to the top two competitors in the product category. However, eventually the product price should be significantly reduced to appeal to a bigger target market. The ideal product price would be below $600. The business to business wholesale strategy will also lower the product price. Although the new
Most importantly, the goal is not to have people solely thinking about the product; because just thinking will not create profit. The goal is to get as much exposure to the product as possible, without spending enormous amounts of advertising to market our product to the general public. The new product would begin distribution in stores locating near the headquarters in Charlotte, NC. Charlotte is the third fastest growing city in the U.S, according to the Charlotte Observer (“Charlotte”). Charlotte is a growing city with an improving economy and quality of life, which is why the population continues to increase. The growth of the city provides a great opportunity for the product to be