Rawlins is considering whether to change marketing strategy for the Quartz in order to sell 100 or 200 a day to break through the mainstream. To generate sales momentum, most important, Rawlins should come up with tactics to encourage product trial by plumbers; secondly, demonstrate product benefit to consumer, and build premium image and sales channel with luxury property developer. Situation Analysis: Company: Rawlins believed Quality's profit advantage is vulnerable because of the vanishing product/quality difference.
Therefore, Rawlins Initiated product research and development to come up with the Quartz shower a breakthrough technology far preceded other U. K. Showers, which satisfied all of the consumer's unmet needs but was simply not selling. Rawlins worried that Quartz would look likes a niche product so that a quick action needed to turn around sales performance. Consumer and Collaborator: Triggers and Barriers to adopt Quartz Channel I Target I Needs I Quartz I Trigger/Strength I Barrier/ Opportunity Retail I Consumer I * Nice looking * Deliver good pressure at stable temperature
Easy to use * Don't breakdown 0000 | * use-friendly I * Low brand awareness * Uninformed about showers and heavily rely on plumber's recommendation I Special I Do-let-Yourself I * Inexpensive model * Easy to Install | 00 | Too expensive I Property developer * Reliable * Nice looking * Work in multiple setting * Price sensitive (except for luxury property developer) I CIO;half half I luxury developer, Quartz's premium Image could justify paying high for luxury property. I * Pricing too high to most property developers. I Collaborator I Plumber I single brand to create expertise.
Like to familiarize with the service expected from a manufacture. I DO I *Quick and easy to install I * Reluctant to switch brand because of unknown performance. * Distrust Innovation. I I Allis's Sales team I * Avoid product centralization with current Quavered 609 I * To sell Quartz, sales have to point out deficiencies in existing products. I According to Exhibit 4, only 27% of consumers select type and brand without advice from plumber. In other words, plumbers are influencer and decision-maker when selecting for mixer showers.
They liked to be loyal to a single brand and distrust innovation, one of the key factors contributed to unsatisfied sales performance in the first four months since Quartz launched in the market. Additionally, Quartz priced too high to be accepted by Do-let-yourself and property developers (except for luxury property developers) In which price-sensitive weights in the decision making process. Moreover, Quartz wasn't positioned clearly inside the company so that sales team's Competition: Triton and Mira are Quality's key competitors in terms of overall shares in the shower market.
Triton was dominant in Electric Showers segment. Therefore, Squalid didn't compete with Triton in the same product segment (Quality's market share ranked it No. 2 in mixer shower segment), while compete head to head with Mira in Special shower segment. According to Exhibit 2, Quality's market share in Mixer shower segment was only more than a half of Maria's (20. 8% vs.. 36. 4%). It's possible to grab some shares from Mira with superior technology and advertising investment. Context: Market share didn't really change without product innovation, a reason for
Squalid to invest and launch Quartz so as to keep profit advantage and even grab more market shares from both competitors and new penetration (current market penetration is 60%) with this breakthrough technology. Railing's goal, sell 100 or 200 a day to break through the mainstream, is reasonable even under additional cost of advertising investment. Alternatives: The question for Rawlins was how to generate sales momentum. To solve the problem, Rawlins should first decided whether or not to discount Quartz, hen identify priority of target group and different-emphasized message, finally solve the problem of product centralization.
Alternatives include: * Discount Quartz? I would not suggest doing so. First, discounting price can't persuade plumbers to select Quartz. Second, if Railroading's like to avoid plumbers in shower selection, he could position Quartz in Do-let-Yourself and Property developer market in which requires far low pricing and heavy advertising to compete with market leader Triton. Squalid would lose profit, contrary to the original intention, which was to keep profit advantage and grab more shares. * Target Do-let-yourself? I would not suggest doing so.
Most of Do-let-Yourself were satisfied with low-priced Electric Shower, which was not Quality's main market, not to speak of Quartz. * Target consumers directly? It would cost 3-MM to do a big advertising campaign, resulting in BEE = (3-MM +5. MM)/300 MM/300 = 30,000 units, which represents = 5. 5% market share in mixer shower segment. There's market potential, and consumers would be educated and consumer-select-segment would be increased. * Target the developer? There's market potential in luxury property developers. They need superior product like Quartz to Justify their high pricing.
The luxury property developer should be our target but not the prioritize one considering both their contribution in future brand recognition and significant time lag effect laid down the way. Recommendations: Plumbers are 1st prioritize target group and are key factor for Quartz to succeed, so encouraging product trial by promotion is important. Besides that, emphasis message of quick ; easy to install and support plumbers with additional service to reassure plumbers with Quartz's reliable quality and installation convenience, say Quartz assign installation consultant to go and assist plumbers Trade shops.
Luxury developers are 2nd prioritize target group, message to them should be emphasis on premium image associated with leap technology. Consumer would love the product because the benefits of Quartz were significant, therefore I recommend Consumer to be the 3rd prioritize target group. Once brand connection established, they will influence plumbers in turn and further increase the brand penetration. Advertising investment and product display in showroom are key communication vehicles.
In order to avoid product centralization, Quavered and Quartz need a clear price positioning and differentiation in distribution channel. Let's position Quavered in value - standard price segment, and Quartz in premium price segment. We show Quartz in showrooms to attract high-end customers with high requirement of nice- looking shower. We place both Quavered and Quart in Trade shops and we might need to discount Quavered a little bit to grab shares from other Mixer Shower brands.