Transcript Waldesq - OoCities

Dorfman Designs - Waldesq
Emilia Balke
Yoav Bardov
Kiran DSouza
Helena Lam
Zahid Sultan
Introduction

Macro Environments

Marketing Objectives

Competitive Situation

Marketing Strategy

Distribution Situation

Marketing Mix

SWOT

Schedule & Conclusion

Critical Success Factors
Macro-Environment Situation
Demographics
Baby Boomers 
=
Rural  Cities  Changing furniture needs
Economics
Globalization  Outsourcing  Overseas Manufacturing
Technological
Internet = More information, global purchasing/shipping,
increased technology transfer
Macro-Environment Situation
Political / Legal
Increased activity with regional craft-industry
alliance groups
Social / Cultural
Domestic tastes turn international
• Asian & European-influenced styles
• Ideal for space-saving furniture designs
Market Situation

Wood furniture industry demand growing



Increase in remodeling
New home construction
Rise in space-challenged city dwellers
More sales occur in 2nd half of year
 2006 sales have slowed

Competitive Situation – High End
$2,569
Counselor's desk
Elegant design
Foldable top
Two pigeon holes
Two secret pencil drawers
$1,499
Drop Lid Desk
Highly functional
High quality
Work surface drop lid
Competitive Situation – Middle Market
$400-$450
eNook
Elegant design
Can hold 45 lbs
Space efficient
Highly functional
$169.99
The Mobiletech
Mobile Desk
Can fit in most rooms
and offices
Mobile
Scratch & stain resist
$229
Lyon 2253 Wall Desk
Weighs only 30.5 lbs.
Strong
Lift top compartment
Competitive Situation – Mass Market
$59.99
Adjustable Folding Table
Height adjustable
Lightweight
Folds flat
Stain resistant
$36.28
leaning wall shelf
with desktop
Mobile – shelf rests and is not
attached to wall
no skills required
Additional accessories available
Impact on Dorfman Design & Waldesq
First mover advantage
sophisticated mechanism,
high quality, and upscale
design – hard to copy
No product encompasses
all Waldesq attributes
growing demand for
space saving furniture
Lack of capital & market
share
No existing brand name
Competitors’ products
manufactured overseas
Competitors strong
position decreases
industry attractiveness
Distribution Situation
Distribution
Channels of
Distribution
Furniture
Retailers
Chain Stores
Rooms-to-go
Local Stores
Ethan Allen
Outlets
Levitz
Disc. Stores
IKEA
Reps
La-Z-Boy
Buying
Groups
Distribution
Trends
Furniture
First
increasingly
fragmented
Internet
Sales
SWOT
 No brand identity
 Lack of capital
 Lack of manufacturing
capabilities
Expanding to other target
 Seasonal Demand
market segments
Process improvements
(technological innovation)
 Lack of financial backing
Threats
Imitation of Competitors
Opportunities
First mover advantage
Weaknesses
Strengths
Unique, differentiated products
 High Quality, elegant and
durable products.
Multifunctional usage products,
broad appeal to different
market segments.
Ongoing product improvement
Critical Success Factors





Identify correct market niche
First mover & what’s next
Excellence in quality and function
Ease of revision to address changing style
trends
Solid and substantial financial backing for
manufacturing
Alternatives Strategies





The
The
The
The
The
Think Tank Strategy
Expert Maker Strategy
Sell Strategy
Total Control Strategy
Inventor Strategy
The Think Tank Strategy

Sell entire design to another company
Pros

All profit realized at
once

Little follow up
required

Less capital needed

Buyer will file for
patent
Cons

Very little creative
control

Focus on function instead
of styling

Will not benefit from
units sold
The Expert Maker Strategy

Focus on manufacturing. Leave selling to
retailers
Pros

Retain all creative control

Profit margin determined
in-house
Cons




Choice of market segment

Requires a large pool of
capital resources
Intricate design is labor
intensive and costly.
Challenge to locate
domestic manufacturer
No guarantee that
retailers will pick this up
The Sell Strategy

Dorfman acts as retailer, leaving the
production to a furniture manufacturer.
Pros

Margin is made at retail
level, paying furniture
manufacturer a set unit
cost

Focus on selling to chosen
market segment

Headache of making the
item can be avoided
Cons

Investment in retail space

At the whim of uncontrollable
circumstances

Constant work required

Less input into the end
product
The Total Control Strategy

Both making & selling
Pros




Total control of end
product function & design
Total control of targeting
market segment
Vertical chain margins are
increased
Channel open for further
product launches
Cons





Investment in retail space
At the whim of uncontrollable
circumstances
Constant work required
Labor intensive
Has the most capital
requirements out of all
alternatives
Recommendation:
The Inventor Strategy

License the Waldesq design
Pros




Low capital requirements
Little follow up while
license is active
Several ways to profit:
upfront, guarantees, option
agreements, royalties
Able to resell design later
Cons



Little creative input outside of
patented details
Need to maintain patent to
retail license contract value
Additional work after license
expires
Marketing Objectives
PRODUCT
Blue prints – June, 2007
1. $450-$550
Price
2. Volume discount and wholesale pricing
1. Distribution channels
Distribution
2. Market coverage – selective
3. Volume – 100 units
Promotion
1. "pull" selling strategy
2. Advertising –furniture magazines, newspapers,
internet furniture website
Segments and Targets Analysis

Geographic Segmentation

Demographic Segmentation

Psychographic Segmentation
Geographic Segmentation

Young Digerati




Baby Boomers



Couples or single headed house holds mostly with kids
Live in urban areas
In mid 20s with Masters Degrees and technically savvy.
Upper middle class home owners in their forties and fifties
with college education, still raising kids.
Live in suburban areas with kid centered life style
College Towns

Lives in limited living spaces such as dormitories or shared
accommodations in college towns
Demographic Segmentation

Income


Life Stage


Middle and High income groups
Newly weds and people deciding to move in to live together
Social Class

Upper middle class and upper class consumers
Psychographic Segmentation

Innovators


Thinkers


Favors durability, functionality and value in products
Achievers


Often purchase upscale, niche oriented products
Goal-oriented people who focus on career and family
Experiencers

Young, enthusiastic, impulsive people, who seek variety and
excitement
Recommended Marketing Strategy
Concentrated Marketing Strategy

Firm develops and markets for a very well-defined, specific
segment of the consumer population.

Target markets are different from one another

Particularly effective for small companies with limited
resources, because no need for mass production , mass
distribution and mass advertising.
Positioning

Space Saving


Multi-functional and Convenience


Living space is at a premium for most of the target market
Serves multiple functions such as : writing table, break fast
nook, TV stand, work station etc
High Quality

Waldesq made of real wood, aesthetically pleasing and no
close competitor
Marketing Mix - Product
 Description:
Unique
Sleek Design
Functional
 Product Features:
 high quality wood
 durability
 ease of installation
 Materials and colors:  Branding:
 Message: “Space-saving high
Maple
quality furniture with style.”
Medium cherry
 Brass plate “Waldesq by
Dorfman Designs.”
Marketing Mix - Product
 Augmented Product:
 Enhance product (i.e. technical
support, repair services)

Offer product hot line

Capture customer data



Commit to improving existing
products
Provide a web forum
Offer mailing list & promotional
offers
Marketing Mix - Price
 Price:
$450-$550
Upscale stores may
not be interested
Launch in medium
range market
Preserve position
even if copied
Marketing Mix - Place
 Pilot launch:
Pilot launch of 100
desks
Production cost $100 per unit
Give idea of market
acceptance
 Internet Sale:
 Reach potential large customer
segment – mail catalogues,
internet sales

Maintain price to avoid
undermining physical store sales
Caution:
Increasing e-commerce sales, may affect
first mover advantage
Marketing Mix - Promotion
 Capture attention:
 Use of media:
 “Innovators are venturesome“
 Airline Journals
 Target university students and
 Home Decoration Magazines
recent graduates
Message:
 Deliver creative, functional, stylish,
high quality space-saving product.
 Be open to its customer’s changing
needs
 Focus:

Focus on meeting customer needs
 Recreational Vehicles
Catalogues
 Furniture Retailer Catalogue
 Personal Selling
Scheduling
DEPARTMENT
AGENT
TASK(S)
OBJECTIVES
TIMELINE
Comments
Product Management
Product Manager
Acquire Pending
Patents
To protect
Waldesq’s
unique
design from
copying
June, 2007
Product Management
Product Manager
Develop
Blueprints
for Waldesq
production
For mass
production
June, 2007
Product Management
Product Manager
Licensing the
Waldesq to
other
manufactur
ers
For mass
production
and
distribution
August, 2007
Assuming that, it
takes 2
months to
find a
potential
licensee.
Operations
Management
Production
Manager
Manufacturing of
Waldesq
For distribution
through
retail stores
February, 2008
Typically, it takes
around 6
months to
organize
manufacturin
g activities.
Sales Management
Sales Manager
Distribution of
Waldesq to
retail stores
Sell the product
to
consumers
April, 2008
On an average, it
takes around
45 days to
ship to the
retailers.
Sales Management
Sales Manager
Promotion of
Waldesq
Sell the product
to
April, 2008