DESIGN WORK

Design management

Student Name: Yi Pei WU Student Number:07019413

DE0938 Global StrategyTutor Name: Liz MacLarty

LIz corporate FINAL 1.indd 1 2011/4/28 12:02:32 AM

Research

This paper is going to provide a personal interpretation on examine a new product development from both theoretical and practical point of view by our project brief perception. The following paragraph will provide the comprehension of KAO corporate strategy and the commercial proposal for Alliance Boots to introduce a new product into the UK market, meanwhile, also includes some of the implication of design management units that might bring out an out-standing outcome.


To begin with the process, while we planning, we have firstly defined the project aim by following steps,

which give us clear direction to going on:

Diagram 1: Showing the three stages of the strategic management skills.

By explore those sectors; it should assists us to identify ourselves in each stage, we address our business by introduce emergent approach; it enhances us to define our objectives in advance, and then do some changes while progressing, hence the three stages are interrelated to produce better outcome. To start up with a busi-

ness, the first stage is to explore the elements of the comprehensive business strategy, which build up the fundamental basis. On this stage, design manage-ment team should be able to imply strategic skills to intensify their company in next following years.

2-3


Corporate Strategy

Explain that into detail, the com-pany should be able to audit their business objectives, purposes or goals that combined with all es-sences to carry on their long-term run enterprise. On this stage, we

have considered three core areas to spreading out our business by fol-lowing sector. See model 1.

Model 1. The summary of Strategic manage-ment elements (Johnson 1984)


According to Cooper and Press (1995), they have demonstrate the summary the purpose on corpo-rate strategy, they are, setting direction, concen-trating effort, providing consistenc and ensuring changes, especially in this complex market envi-ronment, the deisng should be able to help the company to meet the community mainstream. To conclude that, the main focus on using design within the organization can be describe on the

way how they managing design resources, design processes and promotiing a culture of innova-tion, like cultural are the main focus for Apple to gained huge success. To begin with the project of Human recovery and well-being design brief, in this section, I am going to demonstrate my interpretation based on design point of view that has also involved a few definitions of importance on understanding strategic management.

Business perspective “Corporate strategy can be described as the identification of the purpose of the organiza-tion and the plans and actions to achieve that purpose. “(Lynch 1997)

“Corporate strategy is fundamentally about growth- and of course profit. And both are vital for any business.” (Olins 1989)

Design perspective

“The effectiveness of design depends on the recognition and placement of strategic design management as a driver for the organiza-

tion’s leadership. And the conference is dedi-cated to fostering a design –based leadership to shape the 21st century ”(Design Manage-ment Institute 2008)

“Designers bring energy to strategy. They find ways forward. Their currency is possibility and their scope is vast. We need their creativity- perhaps more than ever.” (Margaret and John 2002)

George, C described: “Design is what links creativity and innovation. It shapes ideas to become practical and attractive proposi-tions for users or customers. Design may be described as creativity deployed to a specific end.” (Hands 2009)

The following quotation also shows the theoretical review from several historical intellects both on business and design perspective demonstrate the importance of explicating design as strat-egy within an organization.

4-5


Product feature

Image1. The product original packaging Image2. Eye mask effect illustration

Kao is a customer driven company; Yoki-MonoZukuri is the founda-

tion of Kao’s marketing, which means, “a strong commitment by all members to pro-vide products and brands of excellent value for consumer satisfaction”. Based on their

company philosophy, as a group, we want to propose something that can enhance the company’s market share as well as increase the sales breakdown on the category of hu-man/health care product.

Whe

re a

re w

e no

w?


Diagram 1.1 Showing the current position of the company sales condition in 2010. (Kao corporation 1994)

6-7


Diagram 1.2 Showing the geographic sales result from four areas

The 1.1 statistic was produced by Kao annual report in 2010,

while we doing the research, we realized that, in UK marketplace, there is no such product like this, relief tiredness eye with such a capable item, we came up with the idea based on our own experience, we questioned ourselves: the first thing we would like to go when we back to our coun-try, is doing body massage, despite that, after a few times meeting, we have finally

came up with an idea that is to introduce such a product to UK market place, we will purpose the idea to the origin company, where based in Japan, then present the idea by following strategy to show their product potential into the market movement. The diagram showing below shows our market research for the similar product, which ex-ists in UK market.

Idea found


Diagram 2.1 UK market research for similarity product

Diagram 2.2 UK market re-search for simi-larity product

WH

ERE ARE W

E NO

W?

8-9


Diagram 2.3 Showing the statistic num-ber on needs of eye care product from UK consumer market. (Key Note N/A)

Regarding to the collected data, we can clearly to see the product which existing in the market, also combined with different self-service eye treatment items. At this point, we have also gathered some useful statistic data that can support our product idea significantly to move forward to the next position. W

here

are

we

now

?

Allowing ourselves to analysis the environ-ment, we have decided to imply emergent strategic process to explore market by under-stand the customers, the suppliers and the most important one, our competitor, but of course, as our product is going to present to UK market, we should make sure that we have

understand the comprehensive knowledge on competitive environment, as well as inject ana-lytical procedure, that has been recognized as one of the important element of the strategy process from several theorist. (Margaret and John 2002)


To explore the insight of the market envi-ronment, we must examine it by articulate SWOT analysis and the study consumer needs; the aim is to identify the balance of power between each force and the orga-nization within the industry and also the company is a consumer driven company, hence, to perceiving the importance from their needs are essential at this point. After we realise the notion of the environment, it

should assists us to be able to develop our corporate strategy between two companies. The following paragraph shows our SWOT analysis that was produced by one of our group member, and this included our analy-sis for our product.

Model 1. Explain the whole notion of emergent strategic process steps, and interconnections (Mar-garet and John 2002)

10-11


Using SWOT analysis helps us easy to understand about features of brand and useful to establish the brand iden-tity as well. The term SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It is a research to find stra-tegic challenge addressed by marketing managers. As shown in the following

table, SWOT is combining the result of external environmental analysis: op-portunities and threats, and the result of internal environmental analysis: strengths and weaknesses. (Kotler P. & Keller K. L., 2009: 52)

Image 3. SWOT analy-sis by our group member, Soohyun Lim

Section creater, Soohyun Lim(group member)

SWOT analysis

Applied SWOT analysis to our prod-uct ‘Megurism (めぐりズム)’

Strength & Weakness: The eye-mask ‘Megurism (めぐりズム)’ with lavender perfume get starts to heat up automatically when peo-ple take the cover off (New technol-ogy). The mask is useful in anywhere and anytime, so it helps people get relaxation easily in living as well as low price (Economy of time, Conve-nience).The virtue of ‘Megurism’ is inhibitory of eye fatigue, insomnia and dark circle because the heating function and lavender perfume are effective eye massage and therapy. These points make appeals to con-sumers.


On the other hand, the biggest weakness is that the UK customers are not familiar with using the mask. Besides, lacks of the technology protection, limitation of use time and disposal material are its disad-vantages.

Opportunity & Threat:The UK is a potential market to increase the market share for profit and growth, and the eye-mask is new technology to the UK consumers. Interestingly, limi-tation of use time is also opportunity, which can develop of our product be-cause it is unfulfilled clients’ needs. How-ever, the threat is that other competitive companies are easily to produce substi-tute products. This problem may cause some obstacles about trade regulations and barriers.

WH

ERE ARE W

E NO

W?

12-13


Consumer profile

Regarding to our product company type, it is consumer-driven company, hence, we wants to introduce VALSTM to understand our consumer behaviour by including: ideals, achievement, and self- expression. VALS in another word, it represents the Value, Attitude, and Lifestyle, and is a psychographic segmentation approach to review a group of peoples with their behav-

iour. The holistic diagram combined as follow-ing model.

Model 1.1. The original VALSTM chart from historian, the knowl-edge taught by Christian Sander.

Section creater, Sohee Yoon (group member)

WH

ERE

ARE

WE

NO

W?


We imply this model into our strategies for several reasons; we wants to recognize our target market with high standard approach. From this model, we can easily to review our consumer’s preference product type, for example, if they wants to treat them-selves for better lifestyle, they might pur-chase our product and enjoy themselves at home, if they are tend to be more experi-ential, they might wants to try our product, because this is a brand new product/ brand which first introduce to the UK market, perhaps makers as well, our product also targets on people who works too much on one thing, this means, their eye get tired

because of their long time strive, hence, they might interested in our functional product, to get relief on their tiredness of eye strain. On the survivors stage, those people get the lower income than others, but their purchasing behaviour are tend to be more based on brand loyalty, hence, while our product launch into Boots retail, it might estimate their buying attitude on purchase our product. However, there is always interconnection between our product and the consumer we are target-ing with. Thus, the model showing below, gives some example of how we imply this approach into our product type.

Image 4. Consumer profile analy-sis. Created by group member, Sohee Yoon

14-15


During the outlined assignment, the group was tasked to develop a prod-uct. As a group it was decided that a health care product would

be developed as this fitted best with the groups experience and knowledge. As part of this it had been decided that a measurable objective would be to propose the product to an internationally recognized brand that is a top retailer in the sale of health product. Boots was chosen as the retailer for these reasons:

Based on those provided information by Kao corporation, it enhances us to examine ourselves where the company should plan themselves to move forward to the next stage. At this stage, we need to consider why we are existing within the market, who are we going to offering to how is the value added should be generated and distributed. By understand-ing the following elements, we should be able to shape our organization main purpose in the next paragraph.

WH

ERE

DO

WE

WA

NT

TO B

E?

Europe sales condition “Sales of Kao Group companies in Europe decreased 21.0 percent

compared with the previous fiscal year to 111.2 billion (US $1.194.7 million)”. Excluding the effect of currency translation, sales would have decreased 8.2 percent. Both the Consumer Products Business and the

Chemical Business were impacted by the weak market. “(Kao Corpora-tion 2010)

Business activities: Overseas operations“As one of its growth strategies, the Kao Group is conducting opera-

tional in markets in Asia, Europe and North America, with a particular emphasis on strengthening its operations in emerging countries with

high economic group rates.” (Kao Corporation 2010)


Model 2. This shows the consideration of the company when they are shaping their purpose.

Consider purposes:

• Increase the market share for the business activity• Increase the market growth within European market• Expand the market size within Europe• Satisfy more consumer needs• Reputation spreading • Maintain the company position within the consumer-driven market in Asian market

Those stated areas could actually shape the company’s purposes significantly; sometimes those boundaries can help the company to recognize the direction where they going to, and that might en-able the company to achieve their vision,

as well as objectives influentially. Hence, the following purpose was considered after we understood our current market environment.

16-17


However, although the company purposes were easy to define, but the question bring out as how are we going to explore the development within the fields as a starting point. While we are choosing the area of our activity, we have to make sure that our business idea is not either too narrow or broad to execute the product development, hence, to define the length

of the business seem to be a main focus at this point. See image 2.1. Bring out our-selves as an example, as we are a brand-new product for the UK market, thus, the first step we are going to do is just going to introduce the exactly same product into the marketplace first, except re-design the Japanese language packaging to English version. See image 2.2.

Image 2.1. Shows our time plan for product plan, from market research to further

development stage. The whole process as we as-sume, it might take us more

than a year to purpose the idea to the company.


Of course, our product will keep continuing to develop by using our innovative idea cre-ated by our design thinking skills. According to Cooper and Press (1995), they argued the importance of how an organization stirving the issues, like quality, innovation, creativ-ity, new product development and tools that organizations use for process improvement,

such as quality function deployment by us-ing design implications. For example, the designer utilize design strategies to generate products, service and corporate comunica-tions which aim to optimize customer saits-faction and business success. (Margaret and John 2002)

Image 2.2. The brand- new packag-ing design (created by our group mem-ber: Soohyun Lim)

WH

ERE DO

WE W

AN

T TO BE?

18-19


As a design management student, to comprehend the process of de-sign seems to be the essence as a starter, no matter what the project brief are. Design process is a struc-tured formulation, which framed as the guidance for undertakers to

follow the step-by-step process to recognize and audit themselves, to be able to accomplish their project goal. The following model provided by “inclusive design toolkit”, show-ing the cascading model of design process.

As soon as we applied this model in to our project brief, we start to realise the needs from existing marketplace by analysis the environment and the resources we have got. As a group, we started to put ourselves on the position of consumer, thus, recall our

own experiences and examine the marketing statement, finally, create our product idea to fit in to market opportunity. The following diagram shows our consideration on how we create our business idea.

Model 2.1. The waterfall inclusive design process (Waller 2007)

Design strategy

WH

ERE

DO

WE

WA

NT

TO B

E?


Diagram 3.1. Shows the consideration of how we came up with the idea.

Image 2.3. This image was taken when we had brainstorming the product and also being customer

perspective, mean-while thinking about product improvement for our forward devel-opment.

Market opportunity

The diagram 3.1 given the position chart where we have placed ourselves into it, and based on the consumer perspective, we have firstly experience the product thus brainstorming the way in which we can improve it before we launch into the real marketplace. As a design team, we need

to know the qualitative information about the customer, such as, the product use and functionality, and the environment in which it will be used, hence to put us into a cus-tomer position are essential. (Margaret and John 2002) Picture demonstrates as follow-ing.

20-21


Diagram 2.2 Showing our busi-ness opportunity, the chart showing the popularity for people to purchase Eyecare treatment product.

By analysis the current environment and the consumer buying behaviour, we also identify some advantages of why people might purchase our product:

• We are the first product within the European market• Ease of use/Carry• Valuable price combined with function efficiently • Fresh experience


Model 2.2. This model assists us to review our steps and exam-ine the process then create something better, it allow our-selves to see the reflection on the action until the project end.

By explicit the de-sign element into our project develop-ment, we started to see the influential

result came out from our on-going process by endeav-our action research as a way of observa-

tion skill. To Simplify, that is an non-stop action, which ex-plain as ” learning by doing it.”

WH

ERE DO

WE W

AN

T TO BE?

22-23


Model 2.3 The diagram shows that design strategy is the vision for de-sign at all levels within the organiza-tion. (Liz MacLarty 2011)

WH

ERE

DO

WE

WA

NT

TO B

E?From model 2.2, we can clearly to see the time where we spending on, in another word, that is about time where we made our deci-sion on reviewing these schedules. These decision-making represent the strategy we have used. “Strategies create futures. That is what they are for. Futures cannot be de-termined by analysis alone.” (Margaret and John 2002) Based on that quotation, we have decided to use some design strategy into our creative business to expand our idea leads better accomplishment. “Designers, visualizers, concept developers and creative people are the Cinderellas of strategy.”(Richards 1999)

We have truly believed that, design strategy has vital influences for any size of organi-zation whichever manipulate it into their business, such as ensuring that companies concentrate their efforts on products and services that play to corporate strengths, like, design- driven company, Apple, Orange, IKEA.(Robert Brunner 2008) Therefore, to grasp the notion on level of management are es-sential at this point, especially with combina-tion of design and management involved. See model 2.3.

Strategic Management


In terms of produce efficient work within an organization, to recognize the role of team within those level are seems to be one of the key to being success. Regarding to many of strategic intellectuals commit that there are three levels of strategy within corporations, that is, strategic design management, tactical design management and finally, operational design management. (Lockwood and Walton 2008)To explain that, management, can be described the most important essences factor,

which can influence the whole system signifi-cantly, thus, to utilize the model to identify the specific position within the organization system seems to be an essence at this stage. Moreover, it is also meaningful for company to consider the improvement that design management can perform by underpinned strategic analysis, strategic choice and strate-gic implementation.

“The effectiveness of design depends on the recognition and placement of strategic design management as a driver for the organization’s leadership. And the conference is dedicated to fostering a design- based leadership to shape the 21st century.”- The design management institute, in announc-ing the 25th international design management conference (Lockwood and Walton 2008)

24-25


To finish up with this section, there are a few points I would like to conclude as following:

• Design process in an tool which can be imply into any kind of business to examine their on-going process, and be able to edit the toward movement enable to reach the final goal. • Design should always undertaking by any size of the organization to make sure the company growth, that is to be visible but not only about profitable. • Strategic design management should emphasize design as a source of sustainable competitive advantage and as the fact that can influence the company’s on-going direction.

On the other hand, apart from the strategies we have discussed as above, the company ultimately goal is to reach the business growth, once the organization imply those design strategies into their system, the next thing comes to: why are we doing this? To answer this question, our answer is: to

deliver experiences that make our consum-ers life better, which also fit into the Kao’s philosophy,

Model2.4. Kao corpora-tion philosophy. (Kao corporation 1994)


The advantages showing our most consider-able communication channel to distribute our product by applying Boots two core busi-ness, “ pharmacy-led health and beauty re-tailing and pharmaceutical wholesaling and distribution”(Alliance Boots 2010), meanwhile, also enable Kao Corporation to meet their company goal, “the global group of companies that is closet to the consumers in each market” (Kao corporation 1994)

Diagram3. Shows the UK beauty and toiletries market, channels of distribution, 2009 (Alliance Boots 2010))

At this point, we should allowing our-selves to purpose the market potential to our operative company, Boots, to carry on our objective for the project. Of course, before we introduce the idea to Boots, we have to figure out the Boots market position and then toward the idea development. Hence, we identify follow-ing status that might unable us preserve the possibility.

Advantages for choosing Boots:

•The UK leading pharmacy-led health and beauty group•International chain- store•Customer centre company•Location friendly (easy to find in every-area in UK regions)•Consumer friendly shop•Brand loyalty•Interactive marketing involved (e-com-merce), word- by-web•The product might be able to have their label feature located in the store, such as NO.7 product. •Easy to appeal consumer’s attention while they are shop

HO

W D

O W

E GET TH

ERE?

26-27


As we can see from the diagram 3, which show-ing the quantitative information about the UK distribution channel, the diagram represent the place where most consumer buy beauty products with competitive prices, convenience, special offers/ deals and loyalty cards (club card in particular) all represent the key drivers. In despite of that, Boots, as a leading international brand, they delivering series range of products and services to customers and satisfy their

needs significantly, there is no doubt that, they are became our first choice as our preference to introduce the idea under their names. Before we going to negotiate the deal with them, to understand their company vision are essential at this point,

Diagram 3.1, Operation and financial review in March 2010 (Alliance Boots 2010)

“Our mission is to become the world’s leading phar-macy-led health and beauty group. We seek to develop our core business activities of pharmacy-led health and beauty retailing and phar-maceutical wholesaling and distribution across the world and become a significant player in many major inter-national markets.”(Alliance Boots 2010 )

HO

W D

O W

E G

ET T

HER

E?


Nevertheless, although business strategy seems an unforgettable tool for an enter-prise to concern with, but, nowadays, de-sign is always needed to innovate in order to maintain competitiveness and carry on the business, especially in this 21st centu-ry. According to Cooper and Press (1995), they argue most organization realised that the various elements can not be indepen-

dent, they all has to be interdependent, as well as the team members, should work together in order to see the problem and then solve them with the best solution they have propused. See Model 3.

Diagram 3.1 had assists us to recognize the geographic sales condition where Boots sell their product within those specific areas, especially the trading profit, showing the

business growth significantly in everyplace, in total, about 17.2 % of the total business. Furthermore, at this stage, as a group, we decided to ex-amine marketing mix on our

product to implement it into the competitive marketplace.

Diagram 3.2. Marketing Mix created by group mem-ber, Sohee Yoon.

28-29


Model 3. Functional links as interlocking building blocks (Cooper and Press 1995)

Hence, within any business element, it should always imply design element to cre-ate unique outcome, for example, in Prod-uct, it connect to quality, function, usability; Price, it should not only about money, rather than it’s extra value like economical issues and manufacturing; Place, this will automatically influence the product’s pack-aging, like what language shoule they de-sign, etc; Promotion, it concering about the cultural of the area, for example, in Asia, the population of people who shops online are currently more than in Europe.

As both of the company are seems to be-longing to consumer driven company, hence, at this stage, the use of design strategy to build up the customer loyalty are neces-sary. “From lock-in to lock-out: using design to create fiercely loyal customers”- Jeremy Alexis(Lockwood and Walton 2008)There are sevearl strategies which has been described as the most useful system that involved design factors to build up the strong relationship with the consumers, that is, dis-tinctive solution, emotional connection and favorable economics,


Model 3.1 Design interventions that can build customer loyalty. (Lockwood and Walton 2008)

HO

W D

O W

E GET TH

ERE?

30-31


In conclusion, the module has expand my knowledge of whole notion of the business knowledge, this is my first time to explore the insight of the overall process, this paper had enhance myself to discover the module from project brief, discover business strategy, de-sign implication, analyze both of the company report, apply new strategy in to the corporate strategy, and finally, using my own reflec-tion to produce the report to showing my perception. The progress was practical, but it was quite tough to gather and cover all the information, which I have already done for

this document, despite that, the project out-come has finally produce, thus, I still have to say, business industry is like a war, you have to fight with others to showing what you have got better than them, in order to survive within the marketplace. In another word, the four essential purposes for corporate strategy and design are define the product direction, concentrating on market research, imply the consistency strategy to maintain the product movement and finally, ensuring flexibility for the whole business.

Model 3.2. Our summary of project development procedure.

To conclude what we have done so far for our product, the model 3.2 will shows our whole notion of process, which we will and have articulated within our proj-

ect development. It supports us to achieve long-term goal for the business.

Personal Reflection


Reference

Alliance Boots. ABout us. annual report2, Baarerstrasse: Alliance Boots, 2010.—. Group strategy and objectives. 2010 йил N/A-N/A. http://www.allianceboots.com/About_Us/Group_strategy_and_objectives.aspx (accessed 2010 йил 15-April).—. Our mission: Alliance Boots. 2010 йил N/A-N/A. http://www.allianceboots.com/About_Us/Our_mission.aspx (accessed 2010 йил 16-04).—. Press release archive 2010. 2010 йил N/A-March. http://www.allianceboots.com/news/Alliance_Boots__Preliminary_results_announcement_for_the_year_ended_31_March_2010.aspx (accessed 2010 йил 15-April).Cooper, Richael, and Mike Press. The Design Agenda. Chichester: John Wiley & Sons, 1995.Design Management Institute. Building Design Strategy . Edited by Thomas Lockwood and Thomas Walton. Newyork: Alloworth Press, 2008.Hands, David. Vision and Values in Design Management . Singapore: AVA publishing SA, 2009.Johnson, G and Scholes, K. University of cambridge. 1984 йил N/A-N/A. http://www.ifm.eng.cam.ac.uk/dstools/paradigm/corpst.html (accessed 2011 йил 15-April).Kao corporation. About kao group. 1994 йил N/A-N/A. http://www.kao.com/jp/en/corp_about/kaoway_02.html (accessed 2011 йил 17-04).Kao Corporation. Kao financial and operating review. Annual report, tokyo: Kao corporation, 2010.Key Note. Key Note . N/A йил N/A-N/A. http://www.keynote.co.uk/academics/index#nohref (accessed 2011 йил 10-04).Lockwood, Thomas, and Thomas Walton. Building Design Strategy. New york: Allworth Press, 2008.Lynch, Richard. Corporate Strategy. 4th Edition. London: Pearson Education Limited, 1997.Margaret, Bruce, and Bessant John. Design in Business. Essex: Pearson Education Limited, 2002.Olins, Wally. Corporate Identity . London: Thames and Hudson, 1989.Richards, T. Creativity and the Management of Change. Oxford: Blackwell, 1999.Robert Brunner, Stewart Emery. Design matters . New jersey: Pearson Education , 2008.Waller, Sam. Inclusive Design Toolkit. Edited by Roger Coleman, Lan Hosking, Sam Waller John Clarkson. Cambridge: Engineering Design Centre, 2007.

32-33


Documents

DESIGN WORK