The value proposition to plumbers is reduced installation time. The time decreased from the standard two days for a traditional shower installation to a half-day for the Quartz. Along with reduced installation time, there is also an improvement in the ease of installation due to the fact that the plumber only had to drill a hole to accommodate the pipe feeding the mixed water into the shower. The improvement in ease of installationwas so much so that the master plumbers were able to send apprentices out to complete the entire job. The value
Cons: Retails could by less baking soda and could probably decide to sell baking soda at a higher price, which could deter some existing costumers from buying again. Option 2: Since a 40% of consumers use coupons when purchasing baking soda the brand director could attempt to increase consumer promotions. Pros: There has been some success in the past to this method and there is also an emerging trend of coupon clippers as mentioned in the case. Cons: This would lower the amount of revenue per unit sold and although consumer like to use coupons when purchasing baking soda, a heavy user of the product only purchases 5 times a year. Option 3: Increase the turnover rate of baking soda by introducing freshness indicator in the small 8oz packages of baking soda.
• Some people at the firm are reluctant to take risks because they’ve been a very profitable company for many years. • Some people at the firm believe that the Quartz might cannibalize their existing core product the Aquavalve. • In order the sell the Quartz the sales reps sometimes have to point out deficiencies in their core products. Opportunities (External) • Breakthrough innovations are rare in the shower market and demand for a shower that addresses all the major problems of the day in one unit seems to be high. • Many existing showers wear out and need to be replaced.
In other words, if showers had not broken down, these sales would not exist. As it is more likely that quality increased than it decreased due to the progress in manufacturing, it is unlikely that the number of replacement showers will grow by much. The remaining reasons for shower sales are "luxury reasons": New properties, installing second showers or adding showers to bathtubs are all reasons
Assignment #1 Economics and Ethical Issues Mrs. Acres Homemade Pies In relationship between supply and demand for Mrs. Acres Homemade Pies, according to the growth of production, consumers are willing to buy Shelly pies at $4.50 each with a production of 8000 pies per month with a profit of $12,000. In order to stay at a $12,000 monthly profit, if Shelly decide to raise her price to $9.50 per pie; the impact will decrease the demand for her pies and her production would only have to be 2000 pies per month. The equilibrium price for Shelly pies is $6.00 per pie with a production of 4000 pies a month.
1. Considering that a consumer usually buys a new shower every 10 years, that’s why we assume that Aqualisa’s shouldn’t target the final costumer but the plumber that buys and installs 45 showers a year, making them a crucial piece that influences the Quartz sales. Aqualisa, developed a new and revolutionary product in the shower industry, the Quartz, based on the beliefs that the main problems with the shower industry in U.K. came from the poor-to-low water pressure and the frequent fluctuation on water temperature in the shower. But it didn’t have the market impact that they expected… It is known that plumbers have a resistance to innovation, they even discourage clients to buy these kinds of showers, influenced by older showers with electronic innovations which at that time didn’t work as well as they should, giving more problems to their owners than “normal” showers. The difference between these new showers and the older ones is that when they install one of Aqualisa’s Quartz shower, they are astonished with the shower itself and with the assembly process and even ask for more information about them: they become converted!
The source based on Listerine Advertisement shows a great value to people in the 1920s due to giving yourself a better breath. It proves that if you have halitosis, “no matter how charming you may be or how fond you your friends are, you cannot expect them to put up with halitosis.” Sometimes you can’t just doubt some advertisers because some of their products can help you in some ways. Also, on the source “The Poor Little Bride of 1860” it show the changes back in the day where there weren’t the recipe to make pancakes and you’ll have to come up with the right ingredients but for today, you just go to the grocery stores and purchase a pack of the mixture. “The Poor Little Bride of 1860” explains how the young bride couldn’t make the tender pancakes like her Aunt for her husband and later gave up. Now, the young bride doesn’t have any more trouble making pancakes because the recipe are premix.
The maximum sales loss would be 25% before they can tolerate before a 20% price increase, which amount to 1,500 bottles per day instead of 2,000. 2. In order for Healthy Spring to reposition itself as a premium water, management believes that it will have to upgrade the packaging of its product. The company will deliver the water in glass rather than plastic bottles and the bottles will be "safety sealed" to insure their cleanliness until the covering is removed in the customer's home. These changes will add $1.00 per bottle to the variable cost of sales.
Cottle wants to expand to new product development but the Indian culture has not fully adapted to the use of low-end and mid-range toothbrushes. They live on less than $2 a day and have low discretionary spending. The population in India has grown but so has poverty. This has made it harder for Cottle to emphasis the need for the toothbrush because they refer back to inexpensive homemade brushes. The Indian culture does not associate health issues with not brushing teeth.
However, this may also go against them because without stores there sales will be lower than they could be if they did own shops. The website also helps to increase sales revenue as it is bright and eye-catching that could encourage people to buy their products. The website also helps to increase sales revenue as the delivery service offers free global shipping, which could increase sales exponentially. However, this does have exceptions as it does not deliver to some countries. ASOS also add 1790 new clothing lines a week and already have 50,000.