Aqualisa case:
1. What is the Quartz value proposition to plumbers? To Consumers?
To plumbers:
a. Very easy to install - 'push-fit-connect-you're done'
b. More profitable –
i. ½ day work (25% of previous time), apprentices can do work also – opportunity to install more and capture some of historical 6-mo. wait list
ii. on average, plumbers do 40 to 50 a year (generally 2-day job), but generally without reducing profit, will be able to do many more
To consumers:
c. Efficient and reliable water pressure and temperature
d. One touch control with red light indicator
e. Much easier to install for DIY sector
2. Why is the Quartz shower not selling?
a. Reluctance of plumbers to switch; mostly due to stigma of other innovative options that failed or required repairs, affecting consumers
b. Possibly overpriced
c. Really only gaining traction in the showrooms, concern about cannibalism (and bringing down value) of other products
Q1. Aqualisa launched the most significant shower innovation in recent British history: the Quartz shower. The shower provides significant improvements in terms of quality, cost, and ease of installation. In product testing, the Quartz shower received rave reviews. However, early sales of the Quartz have been disappointing. The company is faced with some key issues about whether to change the channel strategy, promotional strategy, and the overall positioning of the product (niche or a mainstream product) in the context of their existing product line.
This case shows that despite the fact Aqualisa had a great product it doesn't necessarily mean that this is going to manifest in great sales of the product.
Innovation needs managing in an integrated way; it is not enough just to manage abilities in a technological superior product. Aqualisa had the generation of a technological innovation but lacked the ability to relate this to end users. The challenge for Aqualisa is in effectively communicating to its customers and...