Design Management Lesson 4:
Company Analysis
Marketing and Sales: Part 1
DESIGN MANAGEMENT
23rd of February
2nd of March
9th of March
16th of March
MARKET
ANALYSIS
CONSUMER
ANALYSIS
COMPANY ANALYSIS
STRATEGY
COMPANY ANALYSIS
MARKETING & SALES
MARKET
DEFINITION
CONSUMER
ANALYSIS
POSITIONING
MARKETING
MARKET
SEGMENTATION
TREND
ANALYSIS
COMPETITIVE
STRATEGY
SALES
MARKET
MAPPING
TARGETING
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.
COMPANY ANALYSIS
COMPANY POSITIONING
CORPORATE LEVEL
DEFINING THE
COMPANY MISSION
SETTING COMPANY
OBJECTIVES AND GOALS
LIKE THE MARKETING STRATEGY,
THE BROADER COMPANY STRATEGY
MUST BE CUSTOMER FOCUSED
Source: PRINCIPLES OF MARKETING by Kotler, Philip, p. 63, Fig. 2.1 Steps in Strategic Planning
BUSINESS UNIT, PRODUCT
AND MARKET LEVEL
DESIGN
DESI
GNIN
ING
G TH
THE
E
BUSI
BU
SINE
NESS
SS P
POR
ORTF
TFOL
OLIO
IO
PLANNING MARKETING
AND OTHER
FUNCTIONAL STRATEGIES
COMPANY-WIDE STRATEGIC
PLANNING GUIDES MARKETING
STRATEGY AND PLANNING
COMPANY ANALYSIS
SALES + MARKETING
COMPANY STRATEGY
POSITIONING ANALYSIS
MARKETING STRATEGY
SALES STRATEGY
PRODUCT PORTFOLIO ANALYSIS
DISTRIBUTION ANALYSIS
COMPANY ANALYSIS
BCG GROWTH SHARE MATRIX
HIGH
LOW
MARKET GROWTH RATE
STAR
$
CASH
FLOW
HIGH
QUESTION
MARK
?
DOG
LOW
RELATIVE MARKET SHARE
Source: PRINCIPLES OF MARKETING by Kotler, Philip, p. 67, Fig. 2.2 The BCG Growth-Share Matrix
COMPANY ANALYSIS
EXISITNG
MARKETS
MARKET
PENETRATION
PRODUCT
DEVELOPMENT
NEW
MARKETS
PRODUCT/MARKET EXPANSION GRID
MARKET
DEVELOPMENT
DIVERSIFICATION
EXISTING
PRODUCTS
NEW
PRODUCTS
Source: PRINCIPLES OF MARKETING by Kotler, Philip, p. 69, Fig. 2.3 The Product/Market Expansion Grid
COMPANY ANALYSIS
MARKETING MIX: 4 OR MORE P’s
MARKET
INTERMEDIARIES
COMPETITORS
MARKETING
PLANNING
PRODUCT
SEGMENTATION
CUSTOMER
VALUE AND
RELATIONSHIP
PRICE
MARKETING
IMPLEMENTATION
PLACE
DIFFERENTIATION
MARKETING
ANALYSIS
TARGETING
POSITIONING
PROMOTION
MARKETING
CONTROL
SUPPLIERS
Source: PRINCIPLES OF MARKETING by Kotler, Philip, p. 72, Fig. 2.4 Managing Market Strategies and the Marketing Mix
PUBLICS
COMPANY ANALYSIS
THREE LEVELS OF PRODUCT
AUGMENTED PRODUCT
ACTUAL PRODUCT
DELIVERY
AND
CREDIT
BRAND
NAME
FEATURES
CORE
CUSTOMER
VALUE
QUALITY
LEVEL
PRODUCT
SUPPORT
Source: PRINCIPLES OF MARKETING by Kotler, Philip, p. 250, Fig. 8.1 Three levels of Product
AFTERSALE
SERVICE
DESIGN
WARRANTY
PACKAGING
COMPANY ANALYSIS
PRODUCT’S LIFE
SALES AND
PROFITS ($)
SALES
PROFITS
TIME
PRODUCT
DEVELOPMENT
INTRODUCTION
GROWTH
LOSSES /
INVESTMENTS ($)
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MATURITY
DECLINE
COMPANY ANALYSIS
PRICE
LOW PRICE
PRODUCT COSTS
HIGH PRICE
NO POSSIBLE
PROFIT AT
THIS PRICE
COMPETITORS’ PRICES AND OTHER
EXTERNAL AND INTERNAL FACTORS
NO POSSIBLE
DEMAND AT
THIS PRICE
CONSUMER PERCEPTIONS
OF VALUE
Source: PRINCIPLES OF MARKETING by Kotler, Philip, p. 381, Fig. 13.8 Major considerations in setting Price
COMPANY ANALYSIS
PLACE
ZERO-LEVEL CHANNEL
(M-C)
MANUFACTURER
ONE-LEVEL CHANNEL
(M-R-C)
MANUFACTURER
TWO-LEVEL CHANNEL
(M-W-R-C)
MANUFACTURER
WHOLESALER
THREE-LEVEL CHANNEL
(M-W-J-R-C)
MANUFACTURER
WHOLESALER
CONSUMER
Source: PRINCIPLES OF MARKETING by Kotler, Philip, p. 413, Fig. 15.2 Examples of Different-Level Channels
JOBBER
RETAILER
CONSUMER
RETAILER
CONSUMER
RETAILER
CONSUMER
COMPANY ANALYSIS
INTEGRATED MARKETING COMMUNICATIONS
ADVERTISING
PERSONAL SELLING
CONSISTENT, CLEAR AND
COMPELLING COMPANY AND
BRAND MESSAGE
SALES PROMOTION
PUBLIC RELATIONS
DIRECT MARKETING
Source: PRINCIPLES OF MARKETING by Kotler, Philip, p. 413, Fig. 14.1 Integrated Marketing Communications
COMPANY ANALYSIS
PROMOTION
AWARENESS
KNOWLEDGE
Source: PRINCIPLES OF MARKETING by Kotler, Philip, p. 436, Fig. 14.3 Buyer-Readiness Stages
LIKING
PREFERENCE
CONVICTION
PURCHASE
COMPANY ANALYSIS
MODEL OF BUYER BEHAVIOUR
THE ENVIRONMENT
BUYER’S BLACK BOX
BUYER RESPONSES
MARKETING STIMULI
OTHER
PRODUCT
ECONOMIC
PRICE
TECHNOLOGICAL
PLACE
SOCIAL
PROMOTION
CULTURAL
BUYER’S CHARACTERISTICS
BUYER’S DECISION PROCESS
BUYING ATTITUDES AND PREFERENCES;
PURCHASE BEHAVIOUR:
WHAT THE BUYER BUYS, WHEN, WHERE,
AND HOW MUCH;
BRAND AND COMPANY RELATIONSHIP
BEHAVIOUR
Source: PRINCIPLES OF MARKETING by Kotler, Philip, p. 159, Fig. 5.1 The model of buyer behaviour
COMPANY ANALYSIS
SALES + MARKETING
COMPANY STRATEGY
POSITIONING ANALYSIS
MARKETING STRATEGY
SALES STRATEGY
PRODUCT PORTFOLIO ANALYSIS
DISTRIBUTION ANALYSIS
MARKETING AND SALES ANALYSIS
IN-CLASS CASE AND EXERCISE
TOM DIXON VERSUS MOOOI
previous data selection of TOM DIXON and MOOOI
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COMPANY STRATEGY
MARKETING AND SALES
COMPANY INTRODUCTION
TOM DIXON & MOOOI
COMPANY ANALYSIS
TOM DIXON
STORY
Source: www.tomdixon.net
COMPANY ANALYSIS
TOM DIXON
MISSION
Source: www.tomdixon.net
COMPANY ANALYSIS
TOM DIXON
DESIGNER
Source: www.tomdixon.net
COMPANY ANALYSIS
TOM DIXON
COLLECTION
LIGHTS
TABLES
CHAIRS
UPHOLSTERY
ACCESSORIES
Source: www.tomdixon.net
COMPANY ANALYSIS
MOOOI
STORY
Source: www.moooi.com
COMPANY ANALYSIS
MOOOI
MISSION
Source: www.moooi.com
COMPANY ANALYSIS
MOOOI
DESIGNERS
Source: www.moooi.com
COMPANY ANALYSIS
MOOOI
COLLECTION
Source: www.moooi.com
COMPANY ANALYSIS
COMPANY POSITIONING
Neo-scandinavian
80 Mio €
79 Mio €
SALES
60 Mio €
Neo-decorative
40 Mio €
23 Mio €
23 Mio €
Neo-contemporary
20 Mio €
Neo-industrial
23,7 Mio €
12 Mio €
11 Mio €
8 Mio €
DESIGN
FUNCTION VALUE
DESIGN VALUE
COMPANY ANALYSIS
COMPANY BENCHMARK
Unexpected
welcome
Unique British
Heritage
New Nordic
Celebrate
Uncomplicated Design
Back to the
future
Design
made easy
Aesthetic
Laboratory
Beauty &
uniqueness
Commitment
to Innovation
Give new
perspectives
Meaningful &
Sincere
Influence the design
Climate of today
Unwind
in comfort
The Art
of Living
Design as a
question of love
Extraordinary
objects for everyday
use
Good Design starts
with the person
Classic design for
a contemporary
context
Create groundbreaking Icons of
tomorrow
Originality
Paired with
Craftsmanship
Build atmosphere
of Subtile
Aestheticism
MARKETING ANALYSIS
VALUE CHAIN
TOM DIXON VS. MOOOI
TOM DIXON
INFRASTRUCTURE
COST
DESIGN &
DEVELOPMENT
COST
LOGISITC
INBOUND
COST
PURCHASE
COST
TOTAL
2,536
9%
TOTAL
5,759
21%
TOTAL
819
3%
TOTAL
GENERAL
1,212
5%
PURCHASE 5,698
21%
PURCHASE
737
2.7
%
PD COSTS
(TOTAL
(3,386) (13%)
PERSONNEL)
PERSONNEL 1,325
COSTS
FTE
5%
16
PERSONNEL
COSTS
FTE
62
0%
PERSONNEL
COSTS
FTE
1.67
82
0%
2.00
1,125
4%
TOTAL
246
1%
PERSONNEL 880
COSTS
FTE
SALES &
MARKETING
COST
3%
21.8333
OUTBOUND
LOGISTIC
COST
DISCOUNT
1,789
7%
TOTAL
1,704
6%
11,226
DIRECT
SELLING
COSTS
456
2%
WAREHOUSE 897
3%
41.72%
OUTBOUND
535
2%
MARKETING
COSTS
566
2%
PERSONNEL 766
COSTS
3%
PERSONNEL 272
COSTS
1%
FTE
GROSS
SALES
26,908
RETAIL/CONTRACT
SALES
13.92
FTE
21.00
END CUSTOMER
15.682
58%
MOOOI
INFRASTRUCTURE
COST
3,076
11%
1,445
INFRASTRUCTURE
5%
(1,631)
(TOTAL
PERSONNEL)
(6%)
TOTAL
LOGISITC
INBOUND
COST
PURCHASE
COST
DESIGN &
DEVELOPMENT
COST
SALES &
MARKETING
COST
OUTBOUND
LOGISTIC
COST
DISCOUNT
6,103
21%
TOTAL
340
1%
TOTAL
778
3%
TOTAL
2,007
7%
TOTAL
1,123
4%
13,211
PURCHASE 6,103
21%
INBOUND
340
1%
PD COSTS
778
3%
SELLING
1,147
4%
WAREHOUSE 192
1%
45.3%
860
3%
OUTBOUND
3%
TOTAL
MARKETING
931
RETAIL/CONTRACT
SALES
15,952 54.7%
OTHER
82
16,033
Source: Company Internal Source
Note: Numbers disguised
END CUSTOMER
GROSS
SALES
29,163
MARKETING ANALYSIS
PRODUCT MIX
ANALYSIS
ASSESSMENT
SALES BREAKDOWN BY
MARKET/SEGMENT ANALYSIS
PORTFOLIO PERFORMANCE
ACTION
IN/DIVESTMENT
AREA DEFINITION
MARKETING ANALYSIS
PRODUCT MIX
OF TOM DIXON AND MOOOI
2012
TOM DIXON
%
MOOOI
%
Lighting
78
70
Furniture
13
Upholstery
5
Accessories
3
Deco
1
Seaters
-
13
Storage
-
2
Tables
-
12
------
------
100
100
Total
Source: Company Internal Source
Note: Numbers disguised
3
MARKETING ANALYSIS
ABC ANALYSIS
ANALYSIS
ASSESSMENT
ABC ANALYSIS
PORTFOLIO FOCUS AND
DISPERSION
ACTION
PRODUCT PRUNING
LIST DEFINITION
MARKETING ANALYSIS
PRODUCT MIX
OF TOM DIXON AND MOOOI
2012
Source: Company Internal Source
Note: Numbers disguised
TOM DIXON
PRODUCTS
TOM DIXON
%
MOOOI
PRODUCTS
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
MARKETING ANALYSIS
CREATIVITY
ANALYSIS
ASSESSMENT
NEW PRODUCT ANALYSIS
PORTFOLIO CREATIVITY
ACTION
NEW PRODUCT
LAUNCH DEFINITION
MARKETING ANALYSIS
CREATIVITY
OF TOM DIXON AND MOOOI
2012
TOM DIXON
No. of Projects
TOM DIXON
%
MOOOI
No. Of Projects
MOOOI
%
Evergreens
6
48
5
54
Salesbuilders
9
36
8
24
Icons
22
16
13
22
------
------
------
------
37
100
26
100
Total
Source: Company Internal Source
Note: Numbers disguised
MARKETING ANALYSIS
CREATIVITY
OF TOM DIXON AND MOOOI
2012
TOM DIXON
MOOOI
SALES OF PRODUCTS LAUNCHED IN
Product
Name
Mirror Ball
Felt
Copper
Cone
Beat
Fat
Pipe
Base
Spin
Glass
Offcut
Void
Wingback
Slab
Screw
Peg
Etch
Scoop
Knob
Flash
Flask
Fan
Roll
Lustre
Custom
Fin
Cell
Gem
Mass
Drum
Bell
Spun
Year of
Launch
2004
2005
2005
2005
2006
2006
2007
2007
2007
2008
2008
2009
2009
2010
2010
2010
2010
2010
2010
2010
2010
2011
2011
2012
2012
2012
2013
2013
2013
2013
2013
2013
Source: Company Internal Source
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
Note: Numbers disguised
32
40,822.00
SALES OF PRODUCTS LAUNCHED IN
Product Name
AVL
Boon
Bottoni
Carbon
Container
Dandelion
LSS
Oblique
Random
Smoke
Two Tops
VIP
Wonders
Animals
Boutique
Dear Ingo
Paper
Carpets
Nonrandom
Delft Blue
Lolita
Raimond
Emperor
Monster
Heracleum
Valentine
Bart
Construction
Nest
Year of
Launch
2005
2005
2005
2005
2005
2005
2005
2005
2005
2005
2005
2005
2005
2006
2006
2006
2006
2007
2007
2008
2009
2009
2010
2010
2011
2012
2013
2013
2014
Average Sales
Average Sales
per new launch
per new launch
per year
Year
No. of
Products
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
Sales
MARKETING ANALYSIS
PRODUCT DEVELOPMENT
TOM DIXON
2012
Light
Furniture
Light
2013
Furniture
Light
2014
Furniture
Ratio 1
Newness
Extension
Abortion*
3
1
7
2
2
6
4
2
9
5
5
6
4
6
11
10
13
Total Briefs
11
10
15
16
21
23
4
4
6
10
10
10
Ratio 2
Total Products
Launched
Total Briefs
Source: Company Internal Source
11
Note: Numbers disguised
= 36%
10
= 25%
15
= 40%
16
= 63%
21
= 48%
23
= 43%
MARKETING ANALYSIS
PRODUCT DEVELOPMENT
MOOOI
2012
2013
2014
Ratio 1
Newness
Extension
Abortion*
3
6
0
16
7
11
13
6
4
Total Briefs
9
34
23
9
23
19
Ratio 2
Total Products
Launched
Total Briefs
Source: Company Internal Source
Note: Numbers disguised
9
= 100%
34
= 68%
23
= 83%
MARKETING ANALYSIS
INVESTMENT
ANALYSIS
ASSESSMENT
INVESTMENT ANALYSIS
(CONSUMER)
PORTFOLIO TARGETS AND
RESOURCES RELATIONSHIP
ACTION
INVESTMENT DEFINITION
MARKETING ANALYSIS
INVESTMENT
OF TOM DIXON AND MOOOI
2012
TOM DIXON
%
MOOOI
%
TOM DIXON
%
MOOOI
%
Marketing
46
25
Trade/Architects
40
47
Activities
10
14
Sales Force
15
31
Sales Tools
5
4
Consumers
45
15
Websites
5
15
Others
0
7
Fairs
15
20
------
------
Printed+Photo+Adv
+PR+Events
10
16
100
100
Others
5
6
------
------
100
100
Total
Source: Company Internal Source
Note: Numbers disguised
Total
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.
COMPANY ANALYSIS
SALES + MARKETING
COMPANY STRATEGY
POSITIONING ANALYSIS
MARKETING STRATEGY
SALES STRATEGY
PRODUCT PORTFOLIO ANALYSIS
DISTRIBUTION ANALYSIS
MARKETING AND SALES ANALYSIS
IN-CLASS CASE AND EXERCISE
TOM DIXON VERSUS MOOOI
previous data selection of TOM DIXON and MOOOI
‡
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SALES ANALYSIS
DISTRIBUTION OVERLAPS
TOM DIXON
2011
Product
Category
Lighting
Furniture
Overlaps
Total
Source: Company Internal Source
Sales
2012
Sales
2013
Sales
1,749,577 1,991,602 2,349,733
Sales
%
No. of
% of
Customers Customers
No. of
Orders
% of
Orders
Average Average
per
Order
Customer Value
20%
496
46.2%
2,414
26%
4,737
973
174,705
1%
3
0.3%
47
1%
58,235
3,717
5,639,531 8,519,610 9,209,796
78%
575
53.5%
6,834
74%
16,017
1,348
100%
1,074
100%
9,295
100%
10,926
1,262
13,987
7,403K
37,804
10,549K11,734,234
Note: Numbers disguised
SALES ANALYSIS
DISTRIBUTION OVERLAPS
MOOOI
2012
Product
Category
Lighting only
Overlaps
Non-lighting
Total
Sales
Sales %
No. of
Customers
% Customers No. of Invoices
%
Invoices
Average per
customer
Average
Invoice Value
3.334.856
13.572.197
20%
80%
506
825
38%
62%
2.289
9.390
20%
80%
6.591
16.451
1.457
1.445
16.907.052
100%
1.331
100%
11.679
100%
12.703
1.448
2013
Product
Category
Lighting only
Overlaps
Non-lighting
Total
Sales
Sales %
No. of
Customers
% Customers No. of Invoices
%
Invoices
Average per
customer
Average
Invoice Value
3.308.590
15.792.455
17%
83%
496
916
35%
65%
2.044
10.489
16%
84%
6.671
17.241
1.619
1.506
19.101.045
100%
1.412
100%
12.533
100%
13.528
1.542
2014
Product
Category
Lighting only
Overlaps
Non-lighting
Total
Source: Company Internal Source
Sales
Sales %
No. of
Customers
% Customers No. of Invoices
%
Invoices
Average per
customer
Average
Invoice Value
4.072.251
18.635.432
18%
82%
497
946
34%
66%
2.313
11.005
17%
83%
8.194
19.699
1.761
1.693
22.707.683
100%
1.443
100%
13.318
100%
15.736
1.705
Note: Numbers disguised
SALES ANALYSIS
AREA MIX
ANALYSIS
ASSESSMENT
SALES BREAKDOWN BY
AREA/COUNTRY ANALYSIS
GEOGRAPHIC PERFORMANCE
ACTION
TARGET DEFINITION
BY AREA/COUNTRY
SALES ANALYSIS
AREA MIX
OF TOM DIXON AND MOOOI
2012
TOM DIXON
%
MOOOI
%
Europe
70
70
UK
16
6
Asia
6
7
USA
6
17
Far East
2
0
------
------
100
100
Scandinavia
Row
Total
Source: Company Internal Source
Note: Numbers disguised
SALES ANALYSIS
CHANNEL MIX
ANALYSIS
ASSESSMENT
SALES BREAKDOWN BY
CHANNEL
CHANNEL PERFORMANCE
ACTION
TARGET DEFINITION
BY CHANNEL
SALES ANALYSIS
CHANNEL MIX
OF TOM DIXON AND MOOOI
2012
TOM DIXON
%
MOOOI
%
Agent
0.5
71
Distributor
23
6
Retail Dealer
50
-
Contract Dealer
13
-
Direct + Internal
11
23
------
------
100
100
Wholesale
Total
Source: Company Internal Source
Note: Numbers disguised