Two Pager Assignment for
Group
Einor Hansen Kelly Zwart Felicia Szekely Hildward Werleman 31/10/2018
Table of Content
2 Pager
Two Pager Assignment
Bibliography Apendices
for
page 3 page 5 page 6
Group
Einor Hansen Kelly Zwart Felicia Szekely Hildward Werleman 31/10/2018
2 Pager Introduction In a market that is well-established and continues to grow, Sofa Kompagniet must remain competitive (See Porter’s 5 forces, figure 1). A sustainable approach is one of the primary responsibilities that companies need to adopt in order to keep up with a demanding consumer-base. Furthermore, creating a sustainable image is different than simply applying sustainable strategies. A company must not only be sustainable in its actions, but also in it’s perception to achieve loyal consumers. Problem Sustainability as a concept is very eclectic, however a lot of sustainable methods are associated with durability and a long life-cycle. (See Sustainable Blue Ocean Strategy Canvas, figure 7) The problem here is that many consumers are still shopping for convenience and a temporary fix. People such as expats, diplomats, military and students are prime examples of those who may desire a nice piece of furniture without needing it for a long time. Instead of trying to fit the current use of sustainability into this dilemma, we want to transform its definition. We want to fill the need of renewment by introducing an innovative sustainable “fast furniture” option. Solution The concept we have developed is focused on a new product that Sofa Kompagniet could offer alongside their existing products. It is essentially the bestselling sofa, Astha, made entirely out of natural, biodegradable materials with the option to expand into a small line of furniture. Based on which materials have been used, the sofa would last anywhere from four months to a year. (See concept description, figure 2) This process would be filmed and documented through the beginning stages to the final product. Then compiled into a short explanatory video and a report that consumers could access on the company website. This allows for transparency and helps the customer build trust. (see Tows matrix, figure 3) The concept targets people who have a temporary living situation, are sustainably driven, shop for convenience, and are enthusiastic about innovation. We call them The Progressive Non-Settlers (See Target group description, figure 4). The concept is also presenting a possibility for storytelling by creating products that can be seen as statement pieces. Opportunity In 2018, the European furniture market revenue has amounted to approximately €283,560m and is expected to grow annually by 2% (bibliography 3). In addition to this, furniture is listed as one of the fastest growing eCommerce segments (bibliography 3). This suggests that more competition will arise for Sofa Kompagniet as more companies develop eCommerce strategies. The main competitors to Sofa Kompagniet both currently and in terms of a future sustainable initiative are illustrated in the Blue Ocean Strategy Canvas (figure 7). Regarding consumers, trend reports show that a person is likely to investigate before they make a purchase (bibliography 1). Therefore, customers will respond positively to transparency. In this process of investigation, people are responding to an identity that they relate to more than they are responding to a product. Consumers desire a sustainable, good investment that mirrors their core beliefs. However, they will not sacrifice on the quality of product, price or function. (see interview Anja, figure 10).
Furthermore, fast and overconsumption have been in the center of our society for generations (bibliography 2), which also shows the obsession to own things and dispose of them in order to get something new. Up until now, this has had a negative connotation and impact on the planet. With this concept we introduce a positive take on our obsession of consumption. The opportunity is to formulate a concept that fosters a sustainable image. Competitive Advantage Sofa Kompagniet’s current competitive advantages are the high quality for a low price, and the efficiency in production (see VRIO analysis, figure 11). However, there is a threat of other companies developing a similar business model. This new biodegradable concept falls under a ‘Blue Ocean Strategy’ because an entirely new group is targeted and the method of applying sustainability is innovative. This separates Sofa Kompagniet from competitors in the eyes of consumers. Creating a “fast furniture” experience will challenge the current concept of both furniture and sustainability, as well as bringing forth a playful element. The concept stands out and breaks patterns, while at the same time helping people to feel comfortable and good about themselves (see aesthetic strategy model, figure 12). The biodegradable sofa provides guilt-free fast consumption (see insight paper, figure 13). Business Model The supply chain process (see Business Model Canvas, figure 15) for this concept remains the same as Sofa Kompagniet’s existing one. The key difference is the focus on the end of the sofa’s life cycle and the process of biodegradation as well as implementing a simple truck service and serviceoriented instructions on how to dispose of the product correctly. (see customer journey, figure 14). However, there are still steps that can adopt more sustainable habits along the way. For instance, the use of renewable energy and transportation vehicles that generate lower emissions will help to assure customers that the company values sustainability in all aspects. The main purpose of the “fast furniture” concept is to attract attention and transform the perception of the company. Sustainability and transparency in other steps of the supply chain will ensure that this new perception is solidified. To manifest this concept, the sofa design and development will benefit from experimentation, partnerships with industry innovators, and sustainable material experts. In addition to standard channels, pieces of the furniture can be displayed in public locations to bring attention and intrigue to the idea even before the line is ready for consumer purchase. Natural spaces like parks and forests can help to display the actual function of the sofa’s decomposition as well (see business model canvas, figure 15). Sofa Kompagniet’s current values are authenticity, passion for design, and challenging conventions. These values are the foundation of our new concept as well. With “fast furniture” that does not impact the environment negatively, Sofa Kompagniet would inspire a new and unique way of thinking.
Bibliography 1. Market Research Blog. 2018. Sleuthy Shoppers: A Top Consumer Trend for 2018 | Market Research Blog. [ONLINE] Available at: https://blog.euromonitor.com/sleuthy-shoppers-a-topconsumer-trend-for-2018/. [Accessed 31 October 2018]. 2. Society and Culture: Manufacturing a Consumer Culture. 2018. Society and Culture: Manufacturing a Consumer Culture. [ONLINE] Available at: http://www.vision.org/visionmedia/ society-and-culture-consumerism/74097.aspx. [Accessed 31 October 2018]. 3. Statista. 2018. Furniture & Appliances - worldwide | Statista Market Forecast. [ONLINE] Available at: https://www.statista.com/outlook/247/100/furniture-appliances/worldwide. [Accessed 31 October 2018].
1. Porter’s 5 Forces THREAT OF NEW ENTRANTS • • • •
THREAT OF NEW ENTRANTS
No patent to protect design, design is easy to replicate There is a threat for well-known companies to offer the same things/features as Sofa Company and thereby block any potential consumers from discovering Sofa Company Furniture and appliances is one of the fastest growing eCommerce segments (Statista Digital Market Outlook 2018) It is easy to develop an online store, anyone can go eCommerce
VERY STRONG
BARGAINING POWER OF SUPPLIERS • • •
Danish and Norwegian suppliers of material One factory, partner relationship with an exclusive contract Sofa Company has other options for materials and controls the rest of the process, therefore the bargaining power of suppliers is not too strong
BARGAINING POWER OF SUPPLIERS
WEAK
RIVALRY AMONG EXISTING COMPETITORS
STRONG
BARGAINING POWER OF BUYERS
STRONG
BARGAINING POWER OF BUYERS (CONSUMERS) • • • •
Sofa Company is B2C, so this section will refer to the bargaining power of the consumers The amount of money that people spend on household furniture is since 2012 stable and slowly increasing (Statista) Consumer loyalty has a very large impact on a brand’s success, so consumers have a lot of power in decision making Trend reports show that consumers are more likely to investigate before they buy.
VERY WEAK THREAT OF SUBSTITUTES
THREAT OF SUBSTITUTES • •
This industry is not easily substituted Potential substitutes may be second-hand sofas, charity stores, building own furniture/hiring a carpenter, inheriting furniture, and artistic pieces
RIVALRY AMONG EXISTING COMPETITORS • • • •
While there are many competitors, the ones competing directly with both price and quality are fewer The European furniture market is large and expected to grow (Statista) Many competitors are producing a similar product design Some competitors are large in size like IKEA, but many are a similar size to Sofa Company
LOOKING TO THE FUTURE: HOW IS THE MARKET DEVELOPING? • • • • •
Revenue from the furniture market in Europe is expected to grow annually by 2% (Statista) Economic recovery from a recession, therefore peope are feeling more secure to spend more money Consumer use of digital technologies is growing There are more eCommerce companies and internet retailing Trends will influence how the market develops
2. Concept Description
Concept Description THE OVERALL IDEA
CUSTOMERS
COMPETITORS
To introduce “fast furniture” through biodegradable materials, and promoting/enabling short life cycles that will challenge what sustainability is and what it could become.
Temporary: Diplomat, expat, military, student
Sustainability: Vepa, Bolia
New thinkers Benefit-seekers Green-believers
“The biodegradable sofa”
PRODUCT / SERVICE A sofa that lasts 4-12 months based on the consumer’s needs. Made of biodegradable materials.
FUNCTION & PURPOSE
USE, BEHAVIOR & INTERACTION
VALUE PROPOSTION
As part of a new innovate initiative to give Sofa K a sustainable image. Altering the way people perceive sustainability.
Focused entirely on the end of the life cycle/chain. Where customers can give their sofa back to nature & its origin.
Convenience Sustainable image Converstation piece Simple disposal New thinking Authenticity
BUSINESS MODEL
For this new product, the current business model would include the collection of natural materials and general development.
Design: Hay, Bolia, IKea Price: IKea, Made.com
JOBS TO BE DONE
STRATEGIC OPPORTUNITY
Help the planet
Blue Ocean: instead of going with the current way of sustainability, Sofa K would transform its definition.
Maintain good social life Make smart and convenient buys
3. TOWS Matrix EXTERNAL FACTORS OPPORTUNITIES
THREATS
Ongoing sustainability trend
Growth in eCommerce
Temporary furniture need
Expansion in unfamilar countries
Customers are ‘sluethy’
Competitiors in Scandi design
STRENGTHS
S/O STRATEGIES
S/T STRATEGIES
High quality for low price
Provide a sustainable sofa option with custom features and revamp the business model to highlight sustainability.
Continue to update business model components to stay ahead of competition. Consider new design elements to include other cultures.
WEAKNESSES
W/O STRATEGIES
W/T STRATEGIES
Lack of visible transparency
Make information about the story of each sofa accessible to customers to grow trust. Visualise sustainability on website to make the image representative of the identity.
Gain customer loyalty by having innovation to peak interest and becoming very transparent to generate trust.
INTERNAL FACTORS
TOWS Matrix
Business model exectution Giving customers options
Overload of Social media accounts Misalignment in identity and image
4. Target Group Description
“THE PROGRESSIVE NON-SETTLERS” The target group in focus for this new concept consists of people in Europe who are living somewhere temporarily. They are open-minded and forward-looking individuals who care about the impact they will have on the earth. They are people who want to make purchases out of convenience or people who want to make a statement. They are social and care about the perception others have of them. They respond positively to innovation and become enthusiastic about new ideas.
GAIN CREATORS
PRODUCTS & SERVICES A sofa/line of furniture that is temporary and sustainable Use of materials that can biodegrade Disposal plan in the sofa’s dna
Sustainable recognition and action Conversation piece Playfulness New/innovation thinking
GAINS Be recognized and admired Convenience Fitting in enough while standing out Exciting experience Benefits of being sustainable
PAIN RELIEVERS
Alleviates pain of inconvenience Easy way to be sustainable Simple disposal Makes you feel good about yourself
PAINS
Temporary living situation is hard to shop for Being sustainable is hard and inconvenient Getting rid of furniture is tedious Not perceived as a good person
CUSTOMER JOBS Emotional: Helping the planet Functional: Finding convenience Sub-job: Transferrer of value
5. Evaluating secondary data sources Statista, Euromonitor, Competitor Websites, Trustpilot, Other Industries (Clothing, Food), Trend Reports, WGSN, Future Behaviour, Sofa Company Presentation and their conducted research, etc. OVERALL SUITABILITY 1. Does the data set contain the information you require to answer your research question(s) and meet your objectives? The data we choose to work with contains the information needed to answer our research questions. All the excessive and unnecessary data has been excluded. 2. Do the measures used match those you require? The measures we used did match the ones we required. If it didn’t we tried to reshape it in a way that it did matched the requirements or we decided to discard it. 3. Does the data set cover the geographical area that is the subject of your research? During our research process we focussed on the geographical area that Sofa Company is trading in. We defined these areas by starting to look at their website in which countries it is offered (for example language settings). Information found outside these areas can be used as inspiration but not as comparative material. PRECISE SUITABILITY 1. How reliable is the data set you are thinking of using? The data set we are using is reliable because it is possible to replicate and achieve the same findings. 2. How credible is the data source? For our research we only used sources provided by KEA Library or primary competitor data (their own websites). This to make sure that the source of our secondary data is credible. For example, It has been evaluated and recommended by KEA Library. 3. It is clear what the source of the data is? All the used data has a clear source (author, institution, date, etc.) and if they refer to another source within their data there is a clear source reference. 4. Do the credentials of the source of the data (author, institution or organization sponsoring the data) suggest it is likely to be reliable? As mentioned before, the sources were suggested by KEA Library. This makes it likely to be reliable. This also goes for the credentials of the source of the data. 5. Is the method described clearly? The most common method we used was analyzing the data and summing it up. This was clearly described and made it easier for others to understand the data. 6. If sampling was used, what was the procedure and what were the associated sampling errors and response rates? Within our secondary data sampling was not used, this makes the question irrelevant. 7. Who was responsible for collecting and recording data? Within our group we collected and recorded the data together. We didn’t point out one responsible person within the group. 8. Is a copy of the questionnaire or interview checklist included? There is no copy included, see answer to question 10. 9. Who was the target audience and what was its relationship to the data collector or compiler (were there any vested interests)? The target audience are people who recently bought a sofa and are living in urban areas. The relation with the data collector or compiler were that they were acquaintances.
6. Potential market segments 1. How is the market segment/target segment defined by the case company? Women, 25-45, Urban areas. 2. Discuss the advantages and disadvantages with the current definition. PRO’s : That they have looked in to the decision process. I.e women mostly make the decision for buying a new sofa. CON’s : Very broad, only based on demographics. 3. How can you explore new ways of defining an attractive segment(s)? What are the different consumer needs – how could they lead to new attractive segments? Looking into consumer trends to predict future behaviour and needs of the consumers, as well as changes within expectations of brands. What do people expect of the brand, for example sustainability or transparency or csr. This could be conducted through interviews with employees and observing showroom behaviour. And also qualitative interviews with Sofacompany customers, competitive customer, sustainable competitors in different fields and sustainable competitors specifically in furniture. Consumption behaviour, values, lifestyle, needs, career, mindset. 4. When you have found your concept (in some days/a week) – then use the segment checklist and discuss the market segment attractiveness (find it McDonald, M et al. Market Segmentation: How to Do it, How to Profit from: pp. 279-281 + 312).
7. Blue Ocean Strategy BLUE OCEAN STRATEGY HIGH HAY
SOFA KOM BOLIA MADE.COM
IKEA
LOW QUALITY
PRICE
SCANDI DESIGN
DELIVERY
PRODUCTION EFFICIENCY
SUSTAINABILITY
SERVICE
PRODUCTION METHODS
BLUE OCEAN STRATEGY - SUSTAINABILITY HIGH
VEPA GREENINGTON ECOBIRDY
BOLIA SOFA KOM
LOW TRANSPARENCY
MATERIALS
CERTIFICATES
ETHICALLY
8. Interview Kate Kern Kate Kern 25 years old Living in Amsterdam Single Working full-time as a Project Manager at Wink (Experience Architects) Mostly vegan, sometimes vegetarian. For example when she is at an event where there are no vegan options she will eat vegetarian. She consciously chose to go to a sustainable bank, ASN. Banks have the most money and they make a lot of investments. The most influence is there where the money is. Transfer to ASN was very easy. Kate joined a green energy company, called “Pure Energie”. They have been elected greenest energy supplier in the Netherlands for 5 times in a row by Consumers Association, Nature & Environment, WISE and Greenpeace. She separates her household waste as much as she can. She separates plastic, paper/cardboard, glass and residual waste. She would love to separate organic waste as well but this isn’t offered by the municipality in her living area. When Kate is doing groceries she doesn’t necessarily pays attention to organic products versus regular products. Mostly because organic products are evidently more expensive. If she needs to buy meat for other people, for example when they are coming over for dinner, she always buys meat with “better life quality marks” from the Dutch Society for the Protection of Animals. Kate rarely buys clothing, maybe 3 times per year and only if she really needs something. She wears old clothing from her friends who don’t wear it anymore, if she buys something it’s mostly secondhand. If she needs to invest in a garment, for example a jeans, she doesn’t necessarily pays attention to sustainability. She does look to the material composition of the jeans and if it is organic cotton but she makes her decision based on the look and fit of the jeans. She already rarely buys clothing so the few times that she does buy something new, she takes the sustainability for granted. 2 years ago Kate bought a new sofa because she moved to a new apartment in Amsterdam. She started researching sofa’s online but it was very important to try out the sofa’s first before buying. She bought her sofa at IKEA, the most important reason to buy it there is that she was going there for other stuff for her apartment and it was convenient to buy everything there, including the sofa. She went there together with her mom but her mom had no influence on the decision process. Kate picked the sofa herself and paid for it. The most important features for Kate to buy a sofa are the way it looks but most importantly if it is comfortable to sit on. She did some research online into different brands an sofa’s but she needed to try it out in person before buying a sofa. She wanted to feel the material and experience the comfort. She researched mostly wholesale brands and furniture boulevards. When buying the sofa she didn’t pay attention to the material composition. She felt the material but nothing more. When furnishing her apartment she didn’t payed attention to sustainability. She did pay attention to convenience and price. She didn’t researched any sustainable furniture brands. It’s not a subject to pop ups when she thinks about furniture, it’s more regarding fashion and food. If a brand starts advertising with sustainability it would pop out, because there is no other brand yet who does it. It would be the first.
How companies treat their workers is very important but also hard to find out. This is also a reason why Kate doesn’t buy clothing that often, every time when she walks into a clothing store all she can see is child labour. Kate is sceptic because of all the nice stories brands are telling. Possibilities to implement sustainability within the furniture industry are recycled materials (most obvious), modular furniture end recycling old pieces. Kate finds the fast furniture concept and a biodegradable sofa super awesome. She would tell it to everyone in her environment. She is concerned about the fact that people might find it disgusting, that it is dirty and alive etc. The concept has a clear connection with the target group. Is not sure of it would fit price wise as well. With expats this wouldn’t be a problem but for students it could be. They have less money to spend. It is possible to see the concept as green washing, but Sofa Company is very strong ethically which makes it less easy to label the concept as green washing. It will have a positive effect and it could beginning of something new.
9. Interview Sophie Lagergren 25 years old, living together with Nathan Turley, 34. Industrial design student and chef, Stockholm based. Why did you want a new sofa? The old one, we bought second hand. From blocket (swedish version of dba.dk). We were looking for a couch that was quite similar to danish design couches that was low, so that we could have it in front of our windows, but i couldn’t find any low couches on the market. And all the low couches were also extremely expensive. Then I found this one one blocket for only 500 kr. And i thought why not. This is the old sofa btw, and we had it for 2.5 years. Were you looking at other places too? I had my eye on ikea and… mostly actually on interior architecture blogs, there’s always interiors bloggers who writes about cheaper options for expensive couches. And a blogger was blogging about the couch that we bought. Which is the cheapest i have ever found on the market this size and its very big. And this is the sofa we have now. So what we did with the old one was to put it up on blocket.se I put it up for free so someone else came and picked it up, which i believe is the best way to do it if you want someone else to use your old furnitures. There is always someone who’s in need of a free couch or chair. And also someone else could come pick it up so you don’t have to take care of it yourself. Ikea is the typical style that everyone has at home, so in a sense it wasn’t ideal for us, unless you personalize it. It feels like a furniture that you see in everyone’s home, so after awhile you get tired of it. Why don’t people want to buy from ikea? For me it has to do with mass production. I feel a little bit disgusted. I’ve experienced that furniture that i’ve had from ikea i have gotten rid of quite quickly. And you always tend to buy things you really don’t need. And then you change it for something you really want, that fills the same need. Which is just an expensive way of living. The last couple of 4 years i’ve have been buying things from blocket and design things. Nice design, like expensive design lights that i’ve known of but that i’ve never had the money to buy. And then you can always buy cheaper when someone is getting tired of it, and then you save up and then you love it forever. Some stuff that i’ve bought are even unique, that i have never seen anyone else have.Which is a nice feeling. That you’ve found something special. When it comes to blocket for me i always known what i want, what i am looking for. Which is not the same thing as looking in a shop and get influenced with everything around you, that maybe i can buy this aswell or this with this. But instead you look on blocket, thinking i want a sideboard, and that’s the only thing you’re looking at, you look at thousands of sideboards. Do you enjoy doing this? I love doing this, i love the feeling of having something that no one else has.
I love finding that perfect thing. And that its worth all the time you’ve invested in finding this item. What I fell for with the couch was the price, it was 14000 SEK, but its a 2.5 meter couch. It’s extremely big. Its from posh living its called pepito. They have a store in stockholm. Getting rid of the sofa? Was there any ther options? No, it almost felt too trashed to put it up on blocket. Theres is a category “for free” and there are so many people who wants that, and i’ve done that with all of my furniture. I think you should never throw away stuff, there is always someone in need of a couple of chairs or.. I don’t know. Have you ever thought about sustainability? I have never thought about it actually, it’s about the price. This was 2 years ago and i haven’t thought about buying a couch in the next couple of ten years, i would probably think about it in the future. Because i’m thinking about it when i buy clothes sometimes. I mean when i buy new clothes, i very seldom buy new clothes, i almost always buy second hand clothes, which is a way of sustainability. Would a more sustainable sofa add some value to you? Yeah of course, definitely i would buy the sustainable one. But it should be the same price, but i doubt it would. The price is the primary focus, first the look then the price. It’s more important with a sofa then ever because it could get stained so easily. For a sustainable sofa I could pay maybe like 2000 SEK more, I wouldn’t say more. A sofa only says where its made. It would be nice if it would say everything about where the sofas are made, where the fabrics are from, the ethical footprint. Because i think they are plenty of people that would be interested in that. Or if it would just appear on all of the sofas, people would start to care. It’s just a matter of time until one couch company does that. They’re gonna put it out and then they’re gonna start question all the couch companies and then the consumer will never want a nonethical couch, ever. People have just not understood it themselves.
10. Expert interview Anja Holst 25 years old. Copenhagen based. Consumer Research & Analytics - Consumer Insights, Business Development PANDORA A/S. SUMMARY Anja said that through her own research she has got a greater understanding of what the consumers are looking for. Relating to sustainability there is a huge demand and need of it, however the need is not for a product that is sustainable but a company that is sustainable. She developed it further and said said that the consumer is looking for the right choice, they want to be conscious and choose a company that represent sustainability, the brand itself, not necessarily the product. She said that the consumer still wants the same product, design, price, function, but from a brand that is representing a good cause. The consumer wants the company to make the sustainable choices for them so that they don’t have to do it themselves. And if the consumer can find the same product but from a sustainable competitor, they would be very willing to switch company. She describes sustainability as a form of storytelling, that the value it adds to the consumer is a form of fulfillment. It makes the consumer feel complete, the user can basically buy a good deed. Or as a way to buy in to a status, through a product. It can provoke a feeling of pride and make the consumer able to brag about his/ her choice.
11. VRIO Analysis PAST STRATEGY EVALUATION How we have competed and what we have done? They were focussing on different markets while losing the Danish market. Competing with low prices, hand made quality designed in denmark, fast low prices, great customer service. How did we get to where we are? Low-price strategy and quality strategy. Rich Swedish guy bought two companies and merged them together. These companies were clients from Scandinavian Design and stopped buying from them. His argument was that the people in Denmark didn’t want their products. To prove that the Danish market did liked their designs they opened a website. Eliminating middlemen - B2C- Full value chain ownership. Did the past strategy work well or bad? After almost losing the Danish market, they opened the online shop to prove their relevance on the danish market, with affective results. the online shop is now the core of the company together with showrooms. CURRENT STRATEGY EVALUATION Which strategy are we following today? After being bought out by the Swedish, the company structure shifted from being a stand alone company/brand to being owned and lead by an overarching mother company (SoFa Co Group) While the core strategy and values remained almost untouched compared to the past. What products do we have? The products that are available in the online shop and through the showrooms are furnitures and decorations and caretaking products. Sofas, table,chairs, poufs/ottoman, pillows, wall decoration, furniture treatment products, carpets, design yourself concept. How do we innovate? By offering accessibility and affordability, while still maintaining a high standard of craftsmanship, quality and design. As well as pushing the “Make me” concept. How can we stand out from the competition? What will keep us in the playing ground amongst our international competitors is the implementation of a more sustainable footprint and further on developing circularity. Our current strategy has worked so far with a 50% growth in this year, but not offering a sustained competitive advantage. By implementing sustainability and circularity, sofa company will differentiate themselves on the global furniture market as pioneers. ESSENTIAL TO KNOW WHAT WE’RE STRONGER AND WEAKER AT Analyse our strengths and weaknesses in relation to others. Strengths : Affordable, quality, partner factory, delivery time, guarantee. Weaknesses : Transparency, lack of online point of sale, showroom accessibility, logistics, design can be imitated. Compared to IKEA they have a competitive advantage that the furniture are assembled. Compared to Made.com, sofa company is more affordable. CONCLUSION What is our central or main capabilities? What we do particular well? Fast delivery, quality, craftsmanship, low-price consistency, reliability, guarantee.
11. VRIO Analysis COMPETENCE
1. Price
2. Delivery
3. Scandi design
4. Quality
5. Efficiency in production 6. Designed by you 7. Price vs. quality
VALUABLE
✓ ✓ ✓ ✓ ✓ ✓ ✓
RARE
X
✓ X X
✓
NON IMITABLE
ORGANIZATION
X
✓
2
X
3
X X X
✓
X
X
✓
✓
✓ ✓ ✓ ✓ ✓
POINTS
1
2
4
2
4
12. Aesthetic Strategy Model Aesthetic Strategy Model Aesthetic experience based on phenomenological detection of the product’s physical and sensuous qualities
Instant payoff
Instant presence
Please place your concept above with a cross and write down a few lines why this placement. With our concept we are challenging how people see and experience a sofa. Also introducing new materials not associated with furnitures.
Pattern booster
Pattern breaker
Please place your concept above with a cross and write down a few lines why this placement. This concept is inspired by the fast fashion industry, by challenging it through a fast furniture concept. The concept makes it easier to be sustainable by using products that are meant to be temporary. We are flirting with the thought of fast consumption not necessarily being perceived badly.
Aesthetic Strategy Model Aesthetic experience based on semiotic decoding of added symbolic value
Comfort booster
Breaking the comfort zone Please place your concept above with a cross and write down a few lines why this placement. Our concept leans towards comfort booster because of its sustainable approach. It makes the receivers feel good about their choices, guilt free consumption. We help people consume within their comfort zone while adding a benefit.
Blending in
Standing out
Please place your concept above with a cross and write down a few lines why this placement. Our concept is standing out but our product is blending in. The concept is innovative and the first of its kind within the industry, it challenges the industry and a consumption pattern. The concept and product is a conversational piece, an object made for storytelling. The product blends in because it appears the same as a normal sofa.
13. Insight Paper Question One: Which of P. Jordan’s four pleasures is related with your concept? (Physio, Socio, psycho, Ideo): Primary insight was: Primarily the Ideo Pleasure. Due to the value creation as the sofa is being reborn as its original form; nature. It’s a self-fulfilling deed that you are performing. It is an expression of environmental responsibility. What we might consider is: There is also a Socio Pleasure taking place, because the concept generates story telling. It’s a statement piece that you want to talk about and are proud of. The user can be perceived as a responsible and trendy person. It makes you different because you are only one of few people who have this peace. Question Two: How does the four pleasures support the values from S. Boztepe’s value system? (Belief system, exchange, use, meaning and sign, experience): Primary insight was: The Value System and Four Pleasures are connected. The Value System is a more elaborated and expanded version of the Four Pleasures. The Four Pleasure looks at it from a different angle. You can connect each value out of the Value System back to one of the Four Pleasures. In order to get the best understanding of your concepts value it is important to apply both methods. Question Three: What is the primary positive emotional experience you would like your concept to be for the user? This emotional experience is seen in the following elements: The guilt free fast consumption is the primary positive emotional experience we aim for. The main element providing this experience is the biodegradable material that creates a natural temporary product. What we might consider is: The negative connotations and associations the biodegradable materials have at the moment. To conquer this is to make the sofa look identical to their current design. Question Four: What do you see as the most important value creation Sofakompagniet will benefit from you concept? Our concept will add value to the client because: It will generate a sustainable image because it captures the consumers attention. Our consumer research show that consumers are looking for a company that represents sustainability. Looking at the Blue Ocean Strategy it sets them apart from their competitors. There is no other furniture brand that is working with sustainability on a high level, and certainly not on this innovative level. It’s a new way of applying sustainability. This we have made clear in the following considerations: • Material innovation • Product lifespan • Disposal of the product • Degradability Our value creation in one sentence: To introduce “fast furniture” through biodegradable materials, and promoting/enabling short lifecycles that will challenge what substantiality is and what it could become.
14. Customer Journey Map CUSTOMER JOURNEY MAP- SOFA COMPANY STAGE
AWARENESS
DECISION
CONSIDERATION
DELIVERY & USE
LOYALTY & ADVOCACY
Hear from friends,
CUSTOMER ACTIVITIES
See offline or online. SoMe
Compare & evaluate alternatives
Add a sofa to the basket
Order the sofa
Receive the order
Use the sofa
Contact company to dispose of sofa or
Story telling
Share experience
To have a rare/different product
Share feelings and give advice
Place the sofa back into nature
To have a sofa that biodegrades quickly
CUSTOMER GOALS
No goals at this point
To find the best option
Find a suitable sofa Get inspired
Easy order
Receive the order To have a sofa that effortless and quickly stays intact
& Easy pick-up
Website,
Word of mouth,
TOUCHPOINTS
Traditional media, SoMe
Create marketing campaigns, online presence
ORGANISATIONAL ACTIVITIES
offline content, Workshops, PR
Comparison tools, websites, social media,
Delivery truck, website,
website,
showroom
confirmation email,
showrooms
Create marketing campaigns,
Inspirational environment
online & offline content,
marketing campaigns,
visual merchandising
SoMe
Optimize e-shop, clear confirmation
package tracking,
Customer Service phone,
SMS,
chat,
Logistic,
Care customer sercive
Picking
&
Delivery
Additional departments
Truck,
SoMe,
Phone,
offline,
biodegradable material,
Phone,
nature
Partner with suitable biodegradable material, Optimize pick-up system, Disposal information
Email, Word of mouth
Blogs, SoMe, offline, Phone, Word of mouth
Develop story and process information.
Improve sharing possibilities,
Storytelling platform
Manage feedback
15. The Business Model Canvas