ACCO 202 - Major Project [FINAL]

ALEXANDRE DUSSAULT, BROOKE GRAHAM, CAMILLA HERLIN, ALESSIA NICOLUSSI, ANNA PERCZEW, MARK SCHAEFER DICKERMAN, & ISABELLA SOTO

REENGINEERING

Agenda• Home Improvement Industry Overview

• Competition and Main Players

• Market Research

• Company Overview: The Current Situation

• Strategy I & II

• Marketing

• Final Recommendation & Implementation

INDUSTRY OVERVIEW

Industry Overview

(Source: Euromonitor International - Passport)

Industry Overview

OPPORTUNITIES THREATS• Capturing Millennials Market • Recovering Economy• New Medias

• Exchange Rate• Competitors

(Source: Euromonitor International - Passport)

COMPETITION AND MAIN PLAYERS

Price

Quality

Competitors - modernlamps.ca

Price

Quality

Competitors - modernlamps.ca

Competitors - Cuisine Montréal

Price

Quality

Competitors - Cuisine Montréal

Price

Quality

MARKET RESEARCH

Market Research• Profiling the Customer

(based on 50 surveyed individuals)

• 25-45 Years of age

• Women buying their first apartment

• Students

• Women with family

• Low-Medium Income

Market Research(continued)

• Trends, Findings & Conclusions(based on 50 surveyed individuals)

• Market wants lighting that is affordable, and has trendy design

• Majority of Market (75%) are renters

• In fact, 50% of dwellings in the GMA are rentals

• Market is increasingly becoming socially active (esp. on Social Networks)

• Prefer making purchase in-store rather than online

COMPANY OVERVIEWTHE CURRENT SITUATION

Company OverviewCurrent FinancesCurrent FinancesCurrent Finances

ModernLamps.ca

Current Finances

Rent

Current Finances

$3000/month

Current Finances

Insurance

Current Finances

$70/month

Current Finances

Marketing

Current Finances

$300/month

Current Finances

Utilities

Current Finances

$200/Month

http://ModernLamps.ca

Company Overview

STRENGTHS

• Affordable Prices• Manufacturing Cost

• Trendy Designs

WEAKNESSES• Location • Inventory (Availabilty)• Awareness • Limited Budget

Current FinancesCurrent FinancesCurrent FinancesModernLamps.ca

Current Finances

Rent

Current Finances

$3000/month

Current Finances

Insurance

Current Finances

$70/month

Current Finances

Marketing

Current Finances

$300/month

Current Finances

Utilities

Current Finances

$200/Month

http://ModernLamps.ca

Current Issues

Current Issues• Location

• Strategy I - Repositioning

• Strategy II - New Identity/New Location

Current Issues• Location

• Strategy I - Repositioning

• Strategy II - New Identity/New Location

• Awareness

• Social Media

• The National Home Show(Salon national de l’habitation)

STRATEGY I

STRATEGY IREPOSITIONING OF MORDERNLAMPS.COM

Strategy I

• Highlights

Strategy I

• Highlights

• Downsizing

Strategy I

• Highlights

• Downsizing

• New Positioning/Distribution Strategy

Strategy I

• Highlights

• Downsizing

• New Positioning/Distribution Strategy

• Increasing Reach/Market

Strategy I (continued)Repositioning mordernlamps.com

Current Distribution ArrangementManufacturer

(Retailer)


Current Distribution Arrangement

New Distribution Arrangement

Manufacturer

ManufacturerRetailer

(Independent Decor Boutiques)

Distributor(w/ Storage)

(Retailer)




Manufacturer



(Retailer)




Manufacturer



(Retailer)

Online


*estimated

modernlamps.CA modernlamps.COM Change

Strategy I (continued)Current Vs. Anticipated Finances*

*estimated


Rent $3,000/month $315/month +$2,685


*estimated


Rent $3,000/month $315/month +$2,685

Insurance $70/month $10/month +$60


*estimated


Rent $3,000/month $315/month +$2,685


$300/month $1,500/month -$1,200


*estimated

Marketing


Rent $3,000/month $315/month +$2,685


$300/month $1,500/month -$1,200


*estimated

Expenditure


Rent $3,000/month $315/month +$2,685


$300/month $1,500/month -$1,200

Utilities $200/Month $100/month +$100


*estimated

Expenditure


Rent $3,000/month $315/month +$2,685


$300/month $1,500/month -$1,200

Utilities $200/Month $100/month +$100

Total $3,570/month $2,090/month +$1,735


*estimated

Expenditure

*estimated


*estimated


*estimated

STRATEGY IIINTRODUCING THE

STRATEGY II

.HOUSE GROUPINTRODUCING THE

Strategy II• Highlights


• New domain extension (.House), offers new and & unique opportunity



• Combining both ModernLamps.House & ModernKitchen.House under the newly created .House Group




• Simplifies Image





• Streamlines Operations






• Opportunity for Growth (Eg. ModernBathroom.House)






• Opportunity for Growth (Eg. ModernBathroom.House)

• New Location

Strategy II (continued)

Rate

Area

Pros

Cons

Walk Score®

438 rue St-Pierre

(Vieux-Port)

$1,500/month +Tax

(Excl.: Heating & Electricity)

1,275 sq.ft

• Location• Walking Traffic• Ambiance• Target Market

(tourists & high income)

100


Rate

Area

Pros

Cons

Walk Score®

438 rue St-Pierre

(Vieux-Port)

$1,500/month +Tax


1,275 sq.ft



100

4725 rue Sainte-Catherine E

(Hochelaga)

$1,600/month +Tax


1,855 sq.ft

• Target Market• Area (sq.ft)

• Location

83


Rate

Area

Pros

Cons

Walk Score®

438 rue St-Pierre

(Vieux-Port)

$1,500/month +Tax


1,275 sq.ft



100

4725 rue Sainte-Catherine E

(Hochelaga)

$1,600/month +Tax


1,855 sq.ft

• Target Market• Area (sq.ft)

• Location

83

1366 rue Ontario E (Ville Marie)

$1,800/month +Tax


1,689 sq.ft

• Walking Traffic• Nice Window Front

• May require extensive renovations

97

MARKETING

Social Media

Social Media• Keep the posts short (posts under 80 characters show 27 % more

"engagement")


"engagement")

• Avoid using capital letters


"engagement")


• Best time to reach users: 8am, 12pm-1pm, and 5pm-11 pm


"engagement")


• Best time to reach users: 8am, 12pm-1pm, and 5pm-11 pm

• Use questions in your posts (a question should always be positioned at the end of the post → results in 15 % higher engagement rate - When, where, would, why, how, which - “Which lamp do you prefer?”)

• Take advantage of different occasions by customizing posts For example: Mother’s Day -“Did you forget to buy something to your mother? This is the perfect gift..."

• Put the Facebook and Instagram Icon on the top of your webpage → more easily seen and clicked (Today the icon is in the bottom)

• Promote your Facebook page and Instagram account in-store (walls, packaging, business cards & doors) → creates awareness

Social Media

• Put the Facebook and Instagram Icon on the top of your webpage → more easily seen and clicked (Today the icon is in the bottom)

• Promote your Facebook page and Instagram account in-store (walls, packaging, business cards & doors) → creates awareness

Social Media

Example of an Instagram & Facebook Campaign

Social Media

Example of an Instagram & Facebook Campaign

→ Creates engagement, activity & WOM

Social Media

The National Home Show• March 6th - 15th, 2015


• 150,000 attendees (2014)


• 150,000 attendees (2014)

• Pricing Options (10x10):

• $27.50/sq.ft. ($2,750)

• $26/sq.ft. ($2,600)

• $15/sq.ft. ($1,500)


• 150,000 attendees (2014)


• $27.50/sq.ft. ($2,750)

• $26/sq.ft. ($2,600)

• $15/sq.ft. ($1,500)

• 23% of attendees are seeking lighting products


• 150,000 attendees (2014)


• $27.50/sq.ft. ($2,750)

• $26/sq.ft. ($2,600)

• $15/sq.ft. ($1,500)

• 23% of attendees are seeking lighting products

• 75% of attendees plan on purchasing a product from an exhibitor within the next 6 months

• Now taking registration!

FINAL RECOMMENDATION & IMPLEMENTATION

ImplementationDecision MatrixDecision Matrix

Strategy I (Repositioning)

Decision MatrixStrategy II

(New Identity)

Decision Matrix

Financial Risk

Decision Matrix

✔

Decision Matrix

✗

Decision Matrix

Cost of Implementation

Decision Matrix

✔

Decision Matrix

✗

Decision Matrix

Ease of Implementation

Decision Matrix

✗

Decision Matrix

✔

Decision Matrix

Time Needed for Implementation

Decision Matrix

✗

Decision Matrix

✔

Decision Matrix

Possibility for Growth

Decision Matrix

✗

Decision Matrix

✔

Implementation - Strategy II

~3 Months

Implementation - Strategy IICreation

of the .House

Group

1 Month

Implementation - Strategy IICreation

of the .House

Group

1 Month1 Month

Retrofit New

Location

1 Month

Preparation & Moving to

New Location

“The secret of change is to focus all of your energy, not fighting the old, but on building the new.”

-Socrates

Documents

ACCO 202 - Major Project [FINAL]