9-990-001 DESIGN MANAGEMENT INSTITUTE CASE STUDY Braun AG: The KF 40 Coffee Machine This case study came from the Case Study Research and Development Program at the Design Management Institute’s Center for Research. The Center conducts research and develops educational materials on the role of design and design management in business success. Case studies, the Design Management Journal, reprints from the Journal, and other educational materials are available from the Design Management Institute Press. Design Management Institute Press The Design Management Institute 29 Temple Place, 2nd Floor Boston, MA 02111-1350 USA Phone: 617-338-6380 Fax: 617-338-6570 Email: dmistaff@dmi.org Web site: www.dmi.org Harvard Business School Publishing …show more content…
“We’ll never bring out just a me-too product” echoed in every department. The Gillette Connection In 1967, the Braun brothers sold the company to an American consumer products giant, Gillette. The Gillette Company, well known for its mass-produced, mass-marketed products like razors, blades, and toiletries, hardly seemed the company to become the parent of an elite-class German firm. But Gillette was no stranger to Europe, having marketed its goods on the continent and in Britain since the turn of the twentieth century. It now saw the Braun acquisition as an opportunity to cover the dry end of the shaving business, as well as to extend its influence upward. Braun, for its part, had by 1967 grown to over 5,700 employees and operated in 144 countries, but it was too small to compete with the multinationals. Its management saw Gillette as a source of funding to enable them to do so. Shortly afterwards, Braun moved its headquarters from Frankfurt to Kronberg, a few kilometers away. For the first several years, Gillette left Braun’s product strategy intact while infusing some of its management expertise into the organization. Very few people knew that this German company par excellence had an American owner. Braun expanded its operations in other countries and began to extend its target markets beyond the opinion leaders it had originally cultivated. Braun’s Spanish operations were a case in point.
Our mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. Starbucks has lived up to that motto each and every year and with such great numbers and great feedback the company keeps on growing in the right direction. Starbucks is well known around the world for delivering fast, efficient coffee in all forms. From their frappachino’s, to their brew coffee and ice tea they are definitely the set example that other company’s in their area follow. They live by six principles that they practice each and every day they represent there coffee which has always been there passion to deliver
In our search for new design firms in the Boston area, we examined your firm’s online website. While your designs capabilities were suitable for our corporate needs, our
“[Design] is not just what it looks like and feels like. Design is how it works” (Walker, 2003, para. 4). When Steve Jobs said this comment he was speaking about the first iPod, but in actuality it rings true for any design, whether it is a product or a methodology. Tanglewood is a retail store chain with an “outdoors” theme (Kammeyer-Mueller, 2012). The organizational structure in conjunction with recent growth is causing a disconnect between Tanglewood’s mission and quality of staff. Tanner Emerson and Thurston Wood (the owners) are the founders of Tanglewood and are seeking the professional guidance of an external human resources (HR) consultant to unify the organization’s practices between regions (Kammeyer-Mueller, 2012). The HR consultant will use the staffing organizations model (Figure 1) to design a plan for the organization. The staffing organizations model is an effective design when the content works for the organization.
The introduction of the Sensor Shaving System, one of the biggest product launches ever, forced Gillette to reevaluate its strategy in its shaving and non-shaving business. It had to decide whether to go ahead with the launch and if so, at what scale.
The design of an organization is a “formal, guided process for integrating the people, information, and technology of an organization” (Glickman et al., 2007). A good organizational design increases the likelihood that an organization will succeed; that its’ values will be realized and its mission will be attained. An organization begins with a strategy or a purpose, is followed by its philosophy or values, then identifies the mission and finally evaluates the environment and its’ strengths, weaknesses, opportunities, and threats to the organization (Kelly & Crawford, 2008).
The case is all about CDS (Concept Design services) , earlier they were in to business to consumer business by d product name of “Focus” now they have moved from business to consumer to business to business format. They have tied up with many design house and they give them the design which they manufacture and then distribute to the customer. They also moved from manufacturing focus products to high – quality stylish home wares with a high design value.
Synopsis: Gillette has long been known for innovation in both product development and marketing strategy. In the highly competitive, but mature, razor and blade market, Gillette holds a commanding worldwide market share. The peak of its innovation occurred in 2006 with the introduction of the Fusion 5-bladed razor. Today, innovation in razors and blades is thwarted by a lack of new technology and increasing consumer reluctance to pay for the “latest and greatest” in shaving technology. Gillette must decide how to put the razor wars behind them and maintain or increase its share of the global razor market.
EU Design’s management style was founded in a very small business environment. There was little standardization of individual tasks. In a small business, everyone on staff is expected to be involved in all day-to-day business activities. This creates a very informal relationship between workers and management. In addition to the small business aspect, EU Design is in a creative industry. Many of the people in this industry are not trained or educated in formal business practices. A creative mindset takes precedence over the structure of the business.
A three phase strategy of 1) revitalize Gillette’s brand name, 2) enhance Gillette’s leadership position through product innovation, and 3) capitalize on the renewed strength of the Gillette brand name by extending it to other men’s grooming products. I would agree with the first two phases of this strategy. There are concerns regarding phase 3. Gillette has a broad coverage strategy in place today and its “The best a man can get” theme supports this broad coverage strategy. It serves consumers ranging from disposables to high end cartridge systems. Gillette has struggled in the past when it has made attempts to add complementary goods to its offerings. Past attempts at this strategy were subsequently divested. We propose an alternative for phase 3 of the strategy. Rather than adding products that might not carry the value of a strong brand and image we propose that Gillette focus on areas of the world where they don’t have strong market share. Japan is an area specifically mentioned in the case. It is mentioned that Shick has a first mover advantage in
By all this we can conclude that Gillette was actually consumed by its ambition to earn more revenue through the wrong way. Instead of trying to generate more profits buying other businesses, the Gillette executives should have focused more on the continuous innovation to their own company, because after all it was this continuous innovation and dedication that took Gillette to the top and avoid it to have any serious competition until 1962.
If you ask the question: “What is Architecture?” Is it a tangible object? Is it just beautiful moment? Or is it a built experience? The confusion about what Architecture is leads to identity issues. To establish the identity of the firm, marketing must be employed to strategically address these three main components. The services offered, the physically build product, and the experiential moments that are created within. The emotional impact of a designer’s vision is a pivotal factor behind the architectural enterprise. The biggest hindrance to that is creating an illusion can never be delivered. Therein lies the need for strategic architectural marketing. By analyzing and evaluating the firm’s target market and goals, you will be able to
Over time, it’s how we will build GM into the world’s most valued automotive company.”
Gillette is seeking means to retain dominance in market share they have lead for the last century. Along with sustaining market share Gillette has continued focus on expanding worldwide into less saturated markets. In this analysis multiple alternatives will be explored in order to make a recommendation on steps that would favor Gillette’s organization in meeting their aspirations.
Gillette relied on fact based research and development to create a single product for global distribution. The product was supported by their marketing premise that it would be equally valuable to customers globally. But Gillette grew its market share in India dramatically by setting aside its global strategy. Let’s take a look at how Gillette innovated by targeted advertising and inventing a new product development process to reflect local shaving habits.
Gillette is successful because the focus on the one thing they know and that is men. They understand what men need for their grooming needs, and their products are sold all over the world (P Kotler, 2017). Gillette’s popularity has worked because of several factors, including high-quality innovation, consumer research, and mass communications. With their research, and the fact they have kept improving their product, Gillette has made many breakthrough product innovations, which should allow their success to keep increasing. In 1971, there was the Trac II, the first twin-blade shaving system, then the Atra in 1977 there was a razor with a pivoting head, and then in 1989 they developed the Sensor the first razor with spring-mounted twin blades dubbed (P Kotler, 2017). In 1998, Gillette introduced the Mach3 it was the first triple-blade system, surpassed only by the 2006 launch of the six-blade Fusion, promoted as “the best shave on the planet.” (P Kotler, 2017) It is possible that Gillette can become as successful with Women as Men due to the fact Procter & Gamble acquired Gillette in 2005 and Procter & Gamble are experts at marketing to women, due to the fact most of their lines such as dishwashing liquid, laundry detergent, and hygiene products are aim for their woman clients.