Product Development Case Study Series Part 2 A

part 2 a of 7 part Case Study

1 Product development

Luxury brand Case Study

2

Notes

3

Luxury Brand

Business

Development

Case Study Part II A Market overview

4

Trigger Document

5

Trigger Document

6

Trigger Document

7

Trigger Document

8

Review Research

9

Review Research

10

Review Research

11

Review Research

12

Economic overview

13

Economic overview

14

Economic overview

15

Economic overview

ages 35 to 54

16

Economic overview

households between 45 & 54

17

Economic overview

$47,500

18

Economic overview

19

Economic overview

20

Market Trends

21

26 million

1 million up 47%

1985 $180 billion

Market Trends

22

Remodel Market

23

Remodel Market

1,ooo,ooo

24

Remodel Market

$180,000,000,000

25

Remodel Market

26

443,000

Remodel Market

200,000

27

Market trends

28

Market trends

29

2%

6%

21%

21%

44%

multipoint

switch plates

bath accessories

cabinet pulls

door hardware

30

2%

6%

21%

21%

44%

2006 Total HPP Market

$749 Million


$659 Million

High Price point Total market

64%

20%

7%

4% 3% 2%

other

baldwin

emtek

rocky moutain

period brass

omnia

31


$749 Million


$659 Million

High Price point Total market

59%

22%

10%

5% 3% 1%

32 Custom home market

66%

29%

5%

tract

custom

semi-custom

Total US Housing 2001 market

new homes 1,529,000

custom homes (29%) 443,410

semi-custom (5%) 76,450

Industry level market

33

Business level market

34


35


36


37


38


39

40 Product level market


+

47 Custom home designs

8% 6%

13%

17%

23%

6%

12%

8%

10%

italian tuscany

arts & crafts

french country

mediterranean

colonial

contemporary

english

mountain rustic

other

French country homes

8% 6%

13%

17%

23%

6%

12%

8%

10%

Total French country share

total homes 57,643

hardware market $74,000,000

48

8%

6%

13%

17%

23%

6%

12%

8%

10%

Total Italian Tuscany share

total homes 35,472


Italian Tuscany homes

49

8%

6%

13%

17%

23%

6%

12%

8%

10%

Craftsman homes

Total craftsman share

total homes 26,604


50

51 Abbreviated Swot analysis

companies opportunites

kwikset

schlage

baldwin

jado

omnia

period brass

rocky mountain

emtek

brand building service excellence braodway / ives service improvement expanded offering limited limited improved service expand upon styles improved product expand offering distribution

strengths

sales force distribution marketing speed to market brand product breadth reputation quality quality contemporary line designs finishes customer service quality & style speed to market breadth of offering 7 day deliveries

weaknesses

quality speed to market limited styles sales force deliveries sales force deliveries new styles deliveries new styles deliveries customer service new styles distribution quality sales force

threats

quality baldwin pricing reputation slow deliveries arrogance american standard intro into mass retail contemporary styles lack of support poor service deliveries trend changes limited line grow to fast performance low profitability

Competitive product offering analysis

kwikset baldwin period brass

omnia jado rocky

mountain a.i.w.

rustic look only distressed style only

handlesets handlesets handlesets handlesets handlesets handlesets handlesets

levers levers levers levers levers levers levers

knobs knobs knobs knobs knobs knobs knobs

deadbolt deadbolt deadbolt deadbolt deadbolt deadbolt deadbolt

accessories accessories accessories accessories accessories accessories accessories

52

53 Competitive Architectural styles

Italian Tuscany

Southwest Door LaForge

Craftsman

Rocky Mountain Emtek

Period Brass

French Country

Emtek Bouvet / LaForge

Baltica

Mediterranean

Baldwin Southwest Door

LaForge Rocky Mountain

Colonial

Baldwin AIW

Period Brass Omnia

Rustic

Rocky Mountain AIW

Ashley Norton Sun Valley Bronze Southwest Door

Contemporary

Baldwin Valli & Valli

Baltica Omnia

English Bronze

Emtek Rocky Mountain

Baltica

Cat

ego

rie

s

Kw

ikse

t

Sch

lage

Bal

dw

in

Pe

rio

d

Bra

ss

Jad

o

Om

nia

Ro

cky

Mo

un

tain

Emte

k

OPP

MPP

Up-Market

Premium

Prestige

Electronics

54 Competitive products

Cat

ego

rie

s

Kw

ikse

t

Sch

lage

Bal

dw

in

Pe

rio

d

Bra

ss

Jad

o

Om

nia

Ro

cky

Mo

un

tain

Emte

k

Positioning

Distribution

Sales Force

Tubular

Mortise

Electronics

55 Competitive products

56 Competitive reaction analysis

Baldwin hardware

parent company

total business

estates

images

bath accessories

general hardware

lighting

giftware, door accessories etc.

acquired – 1982

primarily door hardware

mortise

entry level (home depot)

masco (no longer parent company)

$250 million

$ 38 million

$ 74 million

25%

10%

10%

5%

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Baldwin SWOT analysis

complete this exercise for each competitor (only one example shown)

strengths threats

brand name

reputation for quality

nationwide distribution

many stocking wholesalers

complete line of colonial styles and finishes

merchandising

has not expanded into the rustic market

smaller manufacturers are taking market share

home depot offering has hurt their image, creating less support from showrooms

weaknesses

lead-times are 10-12 weeks

not all finishes available in all styles

difficult to install

limited variety of styles

opportunities

continues to grow into other products, such as lighting and giftware

their mortise locksets are sold to other manufacturers and have become the standard

58

Luxury Brand

Business

Development

Case Study Part II A Market overview

59

Product Development Case Study Series Part 2 A

Documents

Transcript of Product Development Case Study Series Part 2 A