Question: Use 4 V analysis to map out the company s products / services for the below : The move into Concept products The move into
Use V analysis to map out the companys productsservices for the below :
The move into Concept products
The move into highermargin homeware had been masterminded by Linda Fleet, CDSs marketing director, who had previously worked for a large retail chain of paint and wallpaper retailers. Experience in the decorative products industry had taught me the importance of fashion and product development, even in mundane products such as paint. Premiumpriced colours and new textures would become popular for one or two years, supported by appropriate promotion and features in lifestyle magazines. The manufacturers and retailers who created and supported these products were dramatically more profitable than those who simply provided standard ranges. Instinctively, I felt that this must also apply to homeware. We decided to develop a whole coordinated range of such items, and to open up a new distribution network for them to serve upmarket stores, kitchen equipment and specialty retailers. Within a year of launching our first new range of kitchen homeware under the Concept brand name, we had over retail outlets signed up provided with pointofsale display facilities. Press coverage generated an enormous interest which was reinforced by the product placement on several TV cookery and lifestyle programmes. We soon developed an entirely new market and within two years Concept products were providing over per cent of our revenue and per cent of our profits. The price realization of Concept products is many times higher than for the Focus range. To keep ahead we launched new ranges at regular intervals.
The move to the design house partnerships
Over the last four years, we have been designing, manufacturing and distributing products for some of the more prestigious design houses. This sort of business is likely to grow, especially in Europe where the design houses appreciate our ability to offer a full service. We can design products in conjunction with their own design staff and offer them a level of manufacturing expertise they cant get elsewhere. More significantly, we can offer a distribution service which is tailored to their needs. From the customers point of view the distribution arrangements appear to belong to the design house itself. In fact, they are based exclusively on our own call centre, warehouse and distribution resources. The most successful collaboration was with Villessi, the Italian designers. Generally, it was CDSs design expertise which was attractive to design house partners. Not only did CDS employ professionally respected designers, they had also acquired a reputation for being able to translate difficult technical designs into manufacturable and saleable products. Design house partnerships usually involved relatively long lead times but produced unique products with very high margins, nearly always carrying the design houses brand. This type of relationship plays to our strengths. Our design expertise gains us entry to the partnership but we are soon valued equally for our marketing, distribution and manufacturing competence.Linda Fleet, Marketing Director
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