product development case study series part 2 b
DESCRIPTION
Part 2B of a multi-part product development case outlined from start to finish.TRANSCRIPT
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part 2 b of 7 part Case Study
1 Product development
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Luxury brand Case Study
2
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Notes
3
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Luxury Brand
Business
Development
Case Study Part II B
4
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vision 5
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create a business offering an upscale brand of unique hardware
vision
6
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vision
7
with an emphasis on architecturally
styled product design and innovation
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vision
8
for the home market
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vision
9
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vision
10
for luxury home builders and remodelers
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vision
11
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Positioning statement 12
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the (brand) offers
the most
innovative and
fashionable
designs
Positioning statement
13
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Positioning statement
14
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Positioning statement
15
creating an emotional experience with consumers
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Positioning statement
16
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Positioning statement
17
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Overall direction 18
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Overall direction
19
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Overall direction
20
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Overall direction
21
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design innovative home products
Overall direction
22
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Overall direction
23
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Overall direction
24
through new keying systems,
materials and computer technology
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Overall direction
25
to provide the ultimate in safety and security for family and home offices
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Overall direction
26
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Overall direction
27
through brand
building,
merchandising,
communication,
service and
events
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Overall direction
28
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Marketing objective 29
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Marketing objective
30
Launch
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Marketing objective
31
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Marketing objective
32
expands the
premium and
luxury category
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Marketing objective
33
market share target
18%
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Marketing objective
34
gross sales target
Ninety five million
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Marketing objective
35
gross margin target
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Total sales
$21.5 $29.3
$48.7
$69.4
$94.6 2004
2005
2006
2007
2008
Growth
62%
Operating income projects
36
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Total sales
$1.7
$29.3
$48.7
$69.4
$94.6 2004
2005
2006
2007
2008
Growth
132%
Sales objective (upside)
37
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develop a product line, with designs that are
unique to the marketplace, introducing the
products of project parousia into the high
price point market
Scope
scope
38
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,
Target markets
39
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Product functions
40
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french chateau italian Tuscany
craftsmen mediterranean
colonial mountain rustic mediterranean english bronze
Architectural collections
41
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success is dependent on establishing our brand as
a serious competitor
in showrooms and with
architects, designers
and consumers
Key to success
42
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Needs analysis
43
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Needs analysis
44
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design, craftsmanship and finish are required features of showroom products
Needs analysis
45
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showrooms also require products that are exclusive and are not
sold in retail home centers
Needs analysis
46
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the margin requirement is higher for showrooms, due to low volume and higher average overhead
Needs analysis
47
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Needs analysis
48
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baldwin
residential
mortise
market
share
Present situation
42%
49
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Present situation
50
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Present situation
51
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Present situation
interior matching escutcheons with both knob and lever availability
highly decorative styles with many finish options
large size, one piece handleset escutcheons with large pulls
52
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$542 million
Current market
53
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Current market
54
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Current market
55
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Current market
56
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mortise products work on 5 mortise case sizes, which include baldwin, accurate, marks and imports. this selection of mortise cases are sufficient and highly technical in production and design
Initial Design Elements
57
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critical requirements enclosed case with armored front grade one performance level Interconnect night latch
Initial Design Elements
58
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the team has researched and visited mortise lock manufacturers, accurate lock is the only supplier to meet all current criteria, and is capable of supplying the necessary volume
Initial Design Elements
59
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Product definition
60
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Research Planning
61
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Research Planning
mortise case supplier research
62
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Make vs. buy
buy mortise case and latches
63
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Make vs. buy
64
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65 Target customers
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Primary customer 66
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Primary Target audience
building a new home or
remodeling
67
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Primary Target audience
68
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women are considered a major
decision-maker for remodel
projects, she visits and researches
the showrooms
Primary Target audience
69
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educates herself through
magazines and internet
Primary Target audience
70
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looks for
brand name
Primary Target audience
71
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Primary Target audience
72
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incom
e
Primary Target audience
$150,000 +
73
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$500,
000 +
Primary Target audience
74
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college
educated
Primary Target audience
75
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a f f l u e n t
Primary Target audience
76
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Primary Target audience
77
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Primary Target audience
78
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Primary Target audience
79
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Secondary customer 80
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Secondary Target audience
81
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Secondary Target audience
82
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Secondary Target audience
83
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Secondary Target audience
84
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Secondary Target audience
$100,000 +
85
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can be smaller square foot (1,600<), but wants
prestige brands and latest technology
Secondary Target audience
86
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college
Secondary Target audience
87
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researches, wants the best, know that the value is in what
you pay
Secondary Target audience
88
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How do we win ?
89
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emotional brand connection (believable proposition)
How do we win ?
90
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design board of opinion leaders
(experts in specific styles)
designers , architects, educators
board meets to discuss trends, current product development, new opportunities
How do we win ?
91
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How do we win ?
92
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How do we win ?
93
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expertise in the category
How do we win ?
94
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architectural
specifications &
recommendations
How do we win ?
95
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distribution & showroom penetration
How do we win ?
96
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How do we win ?
97
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5 Point program
98
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Archetypes Core Values
architecturally inspired hardware & fixtures
99 Core values
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100 Product style lifecycle
growth elimination degeneration saturation maturity development introduction
mediterranean colonial
mountain rustic
craftsman tuscany french
english
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101 Remodel style market
high
high
low
mid
low
low
high
mid
high
mid
high
low
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2002 2003 2004 2005 2006 2007 2008 2009 2010
development
electronics
english
victorian
project execution
tuscan
craftsman
french chateau
contemporary
french country
colonial
mediteranean
mountain
rustic
farmhouse
Product road overview
102
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Product roadmap
French chateau collection
103
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Product roadmap
Tuscany/Italian villa Collection
104
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Product roadmap
Craftsmen Collection
105
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Sku recommendation
Recommended sku count
106
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Next steps
107
phase 1
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108
phase 2
Next steps
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109 Next steps
phase 3
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Transition
move from the business
plan to phase I to
begin developing
product design and
brand identity
110
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Luxury Brand
Business
Development
Case Study Part II B
111