Design Management Lesson 4:Company Analysis

Marketing and Sales: Part 1

2nd of March

CONSUMERANALYSIS

CONSUMERANALYSIS

TRENDANALYSIS

TARGETING

9th of March

COMPANY ANALYSISSTRATEGY

POSITIONING

COMPETITIVESTRATEGY

23rd of February

MARKET ANALYSIS

MARKETDEFINITION

MARKETSEGMENTATION

MARKETMAPPING

16th of March

COMPANY ANALYSISMARKETING & SALES

MARKETING

SALES

DESIGN MANAGEMENT

1. YOU DO NOT DESIGN PRODUCTS IN A VACUUM.

2. YOU DESIGN AROUND PEOPLE’S NEEDS.

3. MAKE SURE YOU UNDERSTAND COMPANY POSITIONING AND STRATEGY.

4. MAKE SURE YOU KNOW WHERE AND HOW TO SELL AND DISTRIBUTE YOUR PRODUCTS.

KEY MESSAGES

Source: PRINCIPLES OF MARKETING by Kotler, Philip, p. 63, Fig. 2.1 Steps in Strategic Planning

COMPANY POSITIONING

COMPANY ANALYSIS

DEFINING THE COMPANY MISSION

SETTING COMPANY OBJECTIVES AND GOALS

DEDESISIGNGNINING G THTHE E BUBUSISINENESSSS P PORORTFTFOLOLIOIO

PLANNING MARKETING AND OTHER

FUNCTIONAL STRATEGIES

CORPORATE LEVEL BUSINESS UNIT, PRODUCT AND MARKET LEVEL

LIKE THE MARKETING STRATEGY, THE BROADER COMPANY STRATEGY

MUST BE CUSTOMER FOCUSED

COMPANY-WIDE STRATEGIC PLANNING GUIDES MARKETING

STRATEGY AND PLANNING

SALES + MARKETING

COMPANY ANALYSIS

POSITIONING ANALYSIS

COMPANY STRATEGY

PRODUCT PORTFOLIO ANALYSIS

MARKETING STRATEGY

DISTRIBUTION ANALYSIS

SALES STRATEGY

Source: PRINCIPLES OF MARKETING by Kotler, Philip, p. 67, Fig. 2.2 The BCG Growth-Share Matrix

BCG GROWTH SHARE MATRIX

COMPANY ANALYSIS

STAR QUESTION MARK

?$

CASH FLOW

DOG

HIGH LOW

LOW

HIG

H

RELATIVE MARKET SHARE

MA

RK

ET G

RO

WTH

RAT

E

Source: PRINCIPLES OF MARKETING by Kotler, Philip, p. 69, Fig. 2.3 The Product/Market Expansion Grid

PRODUCT/MARKET EXPANSION GRID

COMPANY ANALYSIS

EXISTING PRODUCTS

NEW PRODUCTS

NEW

M

AR

KET

SEX

ISIT

NG

MA

RK

ETS

MARKETPENETRATION

PRODUCTDEVELOPMENT

MARKETDEVELOPMENT

DIVERSIFICATION

Source: PRINCIPLES OF MARKETING by Kotler, Philip, p. 72, Fig. 2.4 Managing Market Strategies and the Marketing Mix

MARKETING MIX: 4 OR MORE P’s

COMPANY ANALYSIS

MARKETINTERMEDIARIES

SUPPLIERS PUBLICS

COMPETITORS

CUSTOMER VALUE AND

RELATIONSHIP

PRODUCT

PROMOTION

PLACE PRICE

MARKETINGPLANNING

MARKETINGCONTROL

MA

RK

ETIN

GA

NA

LYSI

SM

AR

KETIN

GIM

PLEM

ENTATIO

N

TARGETING

POSITIONINGSE

GM

ENTA

TIO

ND

IFFEREN

TIATION

Source: PRINCIPLES OF MARKETING by Kotler, Philip, p. 250, Fig. 8.1 Three levels of Product

THREE LEVELS OF PRODUCT

COMPANY ANALYSIS

CORECUSTOMER

VALUE

ACTUAL PRODUCT

PACKAGING

AUGMENTED PRODUCT

QUALITYLEVEL

DESIGN

BRAND NAME

FEATURES

DELIVERY AND

CREDIT

PRODUCTSUPPORT

AFTER-SALE

SERVICE

WARRANTY

PRODUCT’S LIFE

COMPANY ANALYSIS

SALES AND PROFITS ($)

LOSSES / INVESTMENTS ($)

PRODUCTDEVELOPMENT

INTRODUCTION GROWTH MATURITY DECLINE

TIME

PROFITS

SALES

PRICE

COMPANY ANALYSIS

Source: PRINCIPLES OF MARKETING by Kotler, Philip, p. 381, Fig. 13.8 Major considerations in setting Price

NO POSSIBLE PROFIT AT THIS PRICE

LOW PRICE

NO POSSIBLE DEMAND AT THIS PRICE

HIGH PRICE

COMPETITORS’ PRICES AND OTHER EXTERNAL AND INTERNAL FACTORS

PRODUCT COSTS

CONSUMER PERCEPTIONSOF VALUE

PLACE

COMPANY ANALYSIS

Source: PRINCIPLES OF MARKETING by Kotler, Philip, p. 413, Fig. 15.2 Examples of Different-Level Channels

ZERO-LEVEL CHANNEL (M-C)

ONE-LEVEL CHANNEL (M-R-C)

TWO-LEVEL CHANNEL (M-W-R-C)

THREE-LEVEL CHANNEL (M-W-J-R-C)

MANUFACTURER

MANUFACTURER

MANUFACTURER

MANUFACTURER

WHOLESALER

WHOLESALER JOBBER

RETAILER

RETAILER

RETAILER

CONSUMER

CONSUMER

CONSUMER

CONSUMER

Source: PRINCIPLES OF MARKETING by Kotler, Philip, p. 413, Fig. 14.1 Integrated Marketing Communications

INTEGRATED MARKETING COMMUNICATIONS

COMPANY ANALYSIS

CONSISTENT, CLEAR AND COMPELLING COMPANY AND

BRAND MESSAGE

DIRECT MARKETING

SALES PROMOTION PUBLIC RELATIONS

ADVERTISING PERSONAL SELLING

Source: PRINCIPLES OF MARKETING by Kotler, Philip, p. 436, Fig. 14.3 Buyer-Readiness Stages

PROMOTION

COMPANY ANALYSIS

AWARENESS KNOWLEDGE LIKING PREFERENCE CONVICTION PURCHASE

Source: PRINCIPLES OF MARKETING by Kotler, Philip, p. 159, Fig. 5.1 The model of buyer behaviour

MODEL OF BUYER BEHAVIOUR

COMPANY ANALYSIS

THE ENVIRONMENT

MARKETING STIMULIPRODUCT

PRICEPLACE

PROMOTION

OTHERECONOMIC

TECHNOLOGICALSOCIAL

CULTURAL

BUYER’S BLACK BOX

BUYER’S CHARACTERISTICSBUYER’S DECISION PROCESS

BUYER RESPONSES

BUYING ATTITUDES AND PREFERENCES;PURCHASE BEHAVIOUR:

WHAT THE BUYER BUYS, WHEN, WHERE, AND HOW MUCH;

BRAND AND COMPANY RELATIONSHIP BEHAVIOUR

SALES + MARKETING

COMPANY ANALYSIS

POSITIONING ANALYSIS

COMPANY STRATEGY

PRODUCT PORTFOLIO ANALYSIS

MARKETING STRATEGY

DISTRIBUTION ANALYSIS

SALES STRATEGY

IN-CLASS CASE AND EXERCISE

MARKETING AND SALES ANALYSIS

TOM DIXON VERSUS MOOOI

previous data selection of TOM DIXON and MOOOI

COMPANY STRATEGYMARKETING AND SALES

COMPANY INTRODUCTION

TOM DIXON & MOOOI

Source: www.tomdixon.net

TOM DIXONSTORY

COMPANY ANALYSIS

Source: www.tomdixon.net

TOM DIXONMISSION

COMPANY ANALYSIS

Source: www.tomdixon.net

TOM DIXONDESIGNER

COMPANY ANALYSIS

Source: www.tomdixon.net

TOM DIXONCOLLECTION

COMPANY ANALYSIS

LIGHTS

TABLES

CHAIRS

UPHOLSTERY

ACCESSORIES

Source: www.moooi.com

MOOOISTORY

COMPANY ANALYSIS

Source: www.moooi.com

MOOOIMISSION

COMPANY ANALYSIS

Source: www.moooi.com

MOOOIDESIGNERS

COMPANY ANALYSIS

Source: www.moooi.com

MOOOICOLLECTION

COMPANY ANALYSIS

COMPANY POSITIONING

COMPANY ANALYSIS

20 Mio €

DESIGN VALUEFUNCTION VALUE

SALE

S

DESIGN

80 Mio €

40 Mio €

23 Mio €23,7 Mio €

79 Mio €

23 Mio €

Neo-scandinavian

Neo-industrialNeo-decorative

60 Mio €

12 Mio €

8 Mio €11 Mio €

Neo-contemporary

COMPANY BENCHMARK

COMPANY ANALYSIS

Design as a question of love

Unexpected welcome

Beauty & uniqueness

Good Design starts with the person

New Nordic

Give new perspectives

Classic design for a contemporary

context

Celebrate Uncomplicated Design

Meaningful & Sincere

Extraordinary objects for everyday

use

Unique British Heritage

Commitment to Innovation

Create ground-breaking Icons of

tomorrow

Back to thefuture

Influence the designClimate of today

OriginalityPaired with

Craftsmanship

Design made easy

Unwind in comfort

Build atmosphere of Subtile

Aestheticism

Aesthetic Laboratory

The Art of Living

VALUE CHAINTOM DIXON VS. MOOOI

MARKETING ANALYSIS

PURCHASECOST

LOGISITC INBOUND

COST

DESIGN & DEVELOPMENT

COST

SALES & MARKETING

COST

OUTBOUNDLOGISTIC

COSTDISCOUNT END CUSTOMER

TOTAL

GENERAL

(TOTAL PERSONNEL)

PERSONNEL COSTS

FTE

2,536

1,212

(3,386)

1,325

16

9%

5%

(13%)

5%

TOTAL

PURCHASE

PERSONNEL COSTS

FTE

5,759

5,698

62

1.67

21%

21%

0%

TOTAL

PURCHASE

PERSONNEL COSTS

FTE

819

737

82

2.00

3%

2.7%

0%

TOTAL

PD COSTS

PERSONNEL COSTS

FTE

1,125

246

880

21.8333

4%

1%

3%

TOTAL

DIRECT SELLINGCOSTS

MARKETING COSTS

PERSONNEL COSTS

FTE

1,789

456

566

766

21.00

7%

2%

2%

3%

TOTAL

WAREHOUSE

OUTBOUND

PERSONNEL COSTS

FTE

1,704

897

535

272

13.92

6%

3%

2%

1%

11,226

41.72%

GROSSSALES

26,908

SALES 15.682 58%

RETAIL/CONTRACT

INFRASTRUCTURECOST

PURCHASECOST

LOGISITC INBOUND

COST

DESIGN & DEVELOPMENT

COST

SALES & MARKETING

COST

OUTBOUNDLOGISTIC

COSTDISCOUNT END CUSTOMER

TOTAL

INFRA-STRUCTURE

(TOTAL PERSONNEL)

3,076

1,445

(1,631)

11%

5%

(6%)

TOTAL

PURCHASE

6,103

6,103

21%

21%

TOTAL

INBOUND

340

340

1%

1%

TOTAL

PD COSTS

778

778

3%

3%

TOTAL

SELLING

MARKETING

2,007

1,147

860

7%

4%

3%

TOTAL

WAREHOUSE

OUTBOUND

1,123

192

931

4%

1%

3%

13,211

45.3%

GROSSSALES

29,163

SALESOTHER

15,95282

16,033

54.7%RETAIL/CONTRACT

TOM DIXON

MOOOI

INFRASTRUCTURECOST

Source: Company Internal Source Note: Numbers disguised

PRODUCT MIX

ANALYSIS ASSESSMENT ACTION

SALES BREAKDOWN BYMARKET/SEGMENT ANALYSIS

PORTFOLIO PERFORMANCE IN/DIVESTMENT AREA DEFINITION

MARKETING ANALYSIS

PRODUCT MIX OF TOM DIXON AND MOOOI

2012

Source: Company Internal Source Note: Numbers disguised

TOM DIXON%

MOOOI%

Lighting 78 70

Furniture 13

Upholstery 5

Accessories 3 3

Deco 1

Seaters - 13

Storage - 2

Tables - 12

------ ------

Total 100 100

MARKETING ANALYSIS

ABC ANALYSIS

ANALYSIS ASSESSMENT ACTION

MARKETING ANALYSIS

ABC ANALYSIS PORTFOLIO FOCUS ANDDISPERSION

PRODUCT PRUNING LIST DEFINITION

PRODUCT MIX OF TOM DIXON AND MOOOI

2012

MARKETING ANALYSIS

TOM DIXONPRODUCTS

TOM DIXON%

MOOOIPRODUCTS

MOOOI%

Black Beat (L) 22 Raymond (L) 19

Copper (L) 15 Random (L) 19

Etch (L) 14 Container (T) 9

Base (L) 7 LSS (L) 8

White Beat (L) 4 Smoke (S) 6

Glass (L) 4 Paper (C) 6

Void (L) 4 Dear Ingo (L) 5

Wingback (U) 4 Non Random (L) 5

Source: Company Internal Source Note: Numbers disguised

CREATIVITY

ANALYSIS ASSESSMENT ACTION

MARKETING ANALYSIS

NEW PRODUCT ANALYSIS PORTFOLIO CREATIVITY NEW PRODUCTLAUNCH DEFINITION

TOM DIXONNo. of Projects

TOM DIXON%

MOOOINo. Of Projects

MOOOI%

Evergreens 6 48 5 54

Salesbuilders 9 36 8 24

Icons 22 16 13 22

------ ------ ------ ------

Total 37 100 26 100

CREATIVITY OF TOM DIXON AND MOOOI

2012

MARKETING ANALYSIS

Source: Company Internal Source Note: Numbers disguised

CREATIVITY OF TOM DIXON AND MOOOI

2012

MARKETING ANALYSIS

Year No. of Products Sales

2004 1 7,538.00

2005 3 6,128.00

2006 2 9,749.00

2007 3 2,957.00

2008 2 2,286.00

2009 2 3,961.00

2010 8 6,410.00

2011 2 377.00

2012 3 964.00

2013 6 452.00

10 32 40,822.00

Product Name

Year of Launch

Mirror Ball 2004Felt 2005Copper 2005Cone 2005Beat 2006Fat 2006Pipe 2007Base 2007Spin 2007Glass 2008Offcut 2008Void 2009Wingback 2009Slab 2010Screw 2010Peg 2010Etch 2010Scoop 2010Knob 2010Flash 2010Flask 2010Fan 2011Roll 2011Lustre 2012Custom 2012Fin 2012Cell 2013Gem 2013Mass 2013Drum 2013Bell 2013Spun 2013

SALES OF PRODUCTS LAUNCHED IN

TOM DIXON MOOOI

Year No. of Products Sales Average Sales

per new launch

Average Sales per new launch

per year

2005 13 70.039.762 5.387.674 538.767

2006 4 14.456.745 3.614.186 401.576

2007 2 4.901.238 2.450.619 306.327

2008 1 784.638 784.638 112.091

2009 2 16.833.533 8.416.766 1.402.794

2010 2 1.800.395 900.197 180.039

2011 1 6.637.391 6.637.391 1.659.348

2012 1 828.298 828.298 276.010

2013 2 919.831 459.915 229.958

2014 1 372.597 372.597 372.597

10 29 118.384.430 4.082.222 408.222

Product NameYear of Launch

AVL 2005Boon 2005Bottoni 2005Carbon 2005Container 2005Dandelion 2005LSS 2005Oblique 2005Random 2005Smoke 2005Two Tops 2005VIP 2005Wonders 2005Animals 2006Boutique 2006Dear Ingo 2006Paper 2006Carpets 2007Nonrandom 2007Delft Blue 2008Lolita 2009Raimond 2009Emperor 2010Monster 2010Heracleum 2011Valentine 2012Bart 2013Construction 2013Nest 2014

SALES OF PRODUCTS LAUNCHED IN

Source: Company Internal Source Note: Numbers disguised

PRODUCT DEVELOPMENT

MARKETING ANALYSIS

Source: Company Internal Source Note: Numbers disguised

TOM DIXON

Ratio 1

2012 2013 2014Light Furniture Light Furniture Light Furniture

NewnessExtensionAbortion*

Total Briefs

317

11

226

10

429

15

556

16

46

11

21

10-

13

23

Ratio 2

Total Products Launched 4

11Total Briefs= 36%

4

10= 25%

6

15= 40%

10

16= 63%

10

21= 48%

10

23= 43%

Ratio 1

2012 2013 2014

NewnessExtensionAbortion*

Total Briefs

Ratio 2

Total Products Launched

Total Briefs

360

9

9

9= 100%

167

11

34

23

34= 68%

1364

23

19

23= 83%

PRODUCT DEVELOPMENT

MARKETING ANALYSIS

Source: Company Internal Source Note: Numbers disguised

MOOOI

INVESTMENT

ANALYSIS ASSESSMENT ACTION

MARKETING ANALYSIS

INVESTMENT ANALYSIS(CONSUMER)

PORTFOLIO TARGETS AND RESOURCES RELATIONSHIP

INVESTMENT DEFINITION

Source: Company Internal Source Note: Numbers disguised

INVESTMENTOF TOM DIXON AND MOOOI

2012

MARKETING ANALYSIS

TOM DIXON%

MOOOI%

Trade/Architects 40 47

Sales Force 15 31

Consumers 45 15

Others 0 7

------ ------

Total 100 100

TOM DIXON%

MOOOI%

Marketing 46 25

Activities 10 14

Sales Tools 5 4

Websites 5 15

Fairs 15 20

Printed+Photo+Adv+PR+Events

10 16

Others 5 6

------ ------

Total 100 100

Design Management Lesson 4:Company Analysis

Marketing and Sales: Part 2

KEY MESSAGES

1. YOU DO NOT DESIGN PRODUCTS IN A VACUUM.

2. YOU DESIGN AROUND PEOPLE’S NEEDS.

3. MAKE SURE YOU UNDERSTAND COMPANY POSITIONING AND STRATEGY.

4. MAKE SURE YOU KNOW WHERE AND HOW TO SELL AND DISTRIBUTE YOUR PRODUCTS.

SALES + MARKETING

COMPANY ANALYSIS

POSITIONING ANALYSIS

COMPANY STRATEGY

PRODUCT PORTFOLIO ANALYSIS

MARKETING STRATEGY

DISTRIBUTION ANALYSIS

SALES STRATEGY

IN-CLASS CASE AND EXERCISE

MARKETING AND SALES ANALYSIS

TOM DIXON VERSUS MOOOI

previous data selection of TOM DIXON and MOOOI

Source: Company Internal Source Note: Numbers disguised

DISTRIBUTION OVERLAPS

SALES ANALYSIS

TOM DIXON

Product Category Sales Sales Sales Sales

%No. of

Customers% of

CustomersNo. of Orders

% of Orders

Average per

Customer

AverageOrder Value

Lighting 1,749,577 1,991,602 2,349,733 20% 496 46.2% 2,414 26% 4,737 973

Furniture 13,987 37,804 174,705 1% 3 0.3% 47 1% 58,235 3,717

Overlaps 5,639,531 8,519,610 9,209,796 78% 575 53.5% 6,834 74% 16,017 1,348

Total 7,403K 10,549K 11,734,234 100% 1,074 100% 9,295 100% 10,926 1,262

201320122011

Source: Company Internal Source Note: Numbers disguised

DISTRIBUTION OVERLAPS

SALES ANALYSIS

MOOOI

Product Category Sales Sales % No. of

Customers % Customers No. of Invoices %Invoices

Average per customer

Average Invoice Value

Lighting only 3.334.856 20% 506 38% 2.289 20% 6.591 1.457Overlaps 13.572.197 80% 825 62% 9.390 80% 16.451 1.445Non-lightingTotal 16.907.052 100% 1.331 100% 11.679 100% 12.703 1.448

2012

Product Category Sales Sales % No. of

Customers % Customers No. of Invoices %Invoices

Average per customer

Average Invoice Value

Lighting only 3.308.590 17% 496 35% 2.044 16% 6.671 1.619Overlaps 15.792.455 83% 916 65% 10.489 84% 17.241 1.506Non-lightingTotal 19.101.045 100% 1.412 100% 12.533 100% 13.528 1.542

2013

Product Category Sales Sales % No. of

Customers % Customers No. of Invoices %Invoices

Average per customer

Average Invoice Value

Lighting only 4.072.251 18% 497 34% 2.313 17% 8.194 1.761Overlaps 18.635.432 82% 946 66% 11.005 83% 19.699 1.693Non-lightingTotal 22.707.683 100% 1.443 100% 13.318 100% 15.736 1.705

2014

AREA MIX

ANALYSIS ASSESSMENT ACTION

SALES ANALYSIS

SALES BREAKDOWN BYAREA/COUNTRY ANALYSIS

GEOGRAPHIC PERFORMANCE TARGET DEFINITIONBY AREA/COUNTRY

TOM DIXON%

MOOOI%

Europe 70 70

UK 16 6

Scandinavia

Asia 6 7

USA 6 17

Far East 2 0

Row

------ ------

Total 100 100

AREA MIXOF TOM DIXON AND MOOOI

2012

SALES ANALYSIS

Source: Company Internal Source Note: Numbers disguised

CHANNEL MIX

ANALYSIS ASSESSMENT ACTION

SALES ANALYSIS

SALES BREAKDOWN BYCHANNEL

CHANNEL PERFORMANCE TARGET DEFINITIONBY CHANNEL

CHANNEL MIXOF TOM DIXON AND MOOOI

2012

SALES ANALYSIS

Source: Company Internal Source Note: Numbers disguised

TOM DIXON%

MOOOI%

Agent 0.5 71

Distributor 23 6

Retail Dealer 50 -

Contract Dealer 13 -

Direct + Internal 11 23

Wholesale

------ ------

Total 100 100