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AQUALISA QUARTZ

Group 4, Section D

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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 drectly!ndrectly nvolved n the purchase decson (")

•Customers are reluctant to swtch brands and 44% of the #ales conssts of buyn$ replacement

showers

(%)

•&evelopers want custom'able products and at prces lower than P

 – Distribution Channels:

•*ansborou$h product s already present n 70% of &I+ outlets

•,nly h$h end products are sold n showrooms whch are vsted by ndvdual shoppers

•-.ualsa has presence n 40% trade shops but staff cannot be traned n technolo$y

•QA!"#

 –/$h Technolo$y Product nvolvn$ electroncs

 –Sun$ Costs: &'( million

 –In the future 0uart' can lead to sster product cannbalsm

 –#ales volume s as low as 12 unts!day where e)*e+tation is o, -00 units.day

Ob/: In+rease the sales volume o, Quart to 100 units.day in the short run

1: Exhibit 42: Exhibit 3

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Quart: 2alue ro*osition

  PLUMBERS

• Value Proposition

• E!" In!t##tion$ %o nee& 'or(u#)" boxe! * Exc+tin the-##

• In!t##tion ti.e re&uction:/ro. 2 to 0 &"!

• u!h$/it$onnect techno#o"

• General Product Dislikes

• Interte& -ith E#ectronic!

•5ih on Inno+tion 6#u.ber!&i!tru!te& too .uchinno+tion7

• ercei+e& notion o'co.p#exit"

CONSUMERSValue Proposition8ter pre!!ure contro# 612$19#*.in7 Te.perture ontro# 641$4

e#!iu!7ne touch contro#nce !et uto.tic te.perturecontro#S'e 'or )i&!, E!" to u!e 'ore#&er#"

General Product DislikesDe+e#oper! &i!#i)e& hih ;Rpro&uct!

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hy Quart is not sellin56• Plumber Dissatisfaction: In+o#+e& in &irect*in&irect purch!e &eci!ion

73% o' ti.e! n& re -r" o' the inno+tion

• Hi! Marin Pro"uct:

• %on cu!to.i

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Strte" to incre!e !#e!+o#u.e

+ntro"uce ,-ualisa .uart/ in D+0 S!e"s

Rationale: 1 71% pre!ence in 3,000 out#et! in UB 

  2 rtner!hip -ith (CQ cou#& he#p in pro&uct intro&uction -ithout incurrin

&+erti!e.ent! c.pin co!t!

  3 Qurt< i! better pro&uct ! co.pre& to E#ectric Sho-er! Se##in the. in the!.e !he& cou#& i+e co.petiti+e e&e to Qurt<

  4 DI !he&! re .ent 'or e!" to in!t## pro&uct! Qurt< i! e!" to in!t## n&t)e! 0 &"! 'or in!t##tion

  DI She& 'ocu! on con!u.er!, on!u.er nee&! re bein !ti!e& b" the

Qurt