Concept design service.pptxtttttttttttttttttt
- 2. Background
- 3. Objective • strategic transformation of Concept Design Services (CDS). • inward-looking manufacturing company, to a customer-focused, integrated service provider. • The goal was to differentiate CDS from competitors, increase profitability, and continue growth
- 4. What make them unique
- 5. BAckground • founded in the 1960s as Focus Plastics, initially focused on manufacturing complex injection-molded plastic components primarily for large industrial customers. • Focus Plastics expanded its product range to include popular household items such as washing-up bowls, pedal bins, baby baths, buckets, and dustpans. • company's products, distributed through wholesale channels and later through large national DIY stores. • Over a decade, the company experienced significant growth, with turnover more than doubling • company underwent a transformative journey. It shifted from being an inward-looking manufacturing company to a customer-focused, integrated service provider known for value-added and innovative designs.
- 6. Products • By 1989, the company produced around 200 homeware stock- keeping units (SKUs).
- 7. Reasons for Withdrawal from Industrial Market: • Industrial markets became less profitable and more challenging. • Order sizes were decreasing, and some larger contracts were lost due to production moving abroad. • Industrial customers were difficult to work with, frequently changing schedules without guaranteeing long-term continuity of business.
- 8. Differentiation Strategy: • Recognized the risks of concentrating on one market and focused on differentiating from competitors • Determined to differentiate from competitors in the household products market. • Competed against smaller manufacturers by positioning as technical professionals with a customer-focused service. • Invested in the latest precision equipment and high-quality molds despite higher overhead costs. • Emphasized customer-focused service as a key differentiator.
- 9. Concept Brand: • coordinated range of plastic homeware items under the "Concept" brand name. • Established a new distribution network targeting up-market stores, kitchen equipment shops, and specialty retailers across Europe. • Market Penetration and Brand Recognition: • Generated public interest through illustrated feature articles in magazines, features in newspapers, and product placements on TV cookery programs. • Within a year, established a new market and rebranded the company to reinforce the change in direction. • Concept brand now contributes over 70% of revenue and the bulk of profits.
- 10. • Value Proposition and Customer Engagement: • Achieved higher prices and margins with Concept range, proving market appreciation for design value. • Offered coordinated ranges allowing customers to start collections and add to them gradually. • Positioned products as objects of beauty or lifestyle symbols, enhancing customer engagement. • Guaranteed supply of products in any color for at least four years, launching new ranges and colors regularly. • Continued Growth Opportunities: • Identified growth opportunities in designing, manufacturing, and distributing products for prestigious design houses. • Growing business especially in continental Europe, offering full-service capabilities and Europe- wide distribution tailored to design houses' needs. • Utilized own call-center, warehouse, and distribution resources for seamless customer experience.
Editor's Notes
- #4: The objective of the above paragraphs is to highlight the transformation of Concept Design Services (CDS) from an industrial-focused manufacturing company to a profitable provider of innovative household products. This transformation involved recognizing and capitalizing on market opportunities, such as shifting focus from industrial to household products, developing a coordinated range of items under the "Concept" brand, and establishing new distribution channels. The goal was to differentiate CDS from competitors, increase profitability, and continue growth through innovation and expansion into new markets, such as partnerships with prestigious design houses and offering tailored distribution services across Europe.