changing consumer behaivor

8/2/2019 Changing Consumer Behaivor

1/14

UNDERSTANDING

CHANGING CONSUMERBEHAVIOR

What Do We Do Now?

Alvin Wight, PresidentStrategic Decisions Inc.

What characterizes todaysshopper?

Insecure

More price/value driven at all income levels

Home furnishings a lower priority

Focused on rooms they actually use

Changing shopping patterns and channels of

distribution

2


2/14

What puts them off?

Retail stores that all look the same

Products that dont excite or give immediatepsychological feedback

Difficulty in understanding quality, feature,and value differences

Few vendor brands they know and trust

3

What puts them off?

Confusion with various salesperson stories

Need to shop multiple stores to feelcomfortable in their purchase

Value equation in terms of other demands ontheir wallet and time

4


3/14

How do we impact todaysconsumer? Give them what they want and are willing to

pay for rather than what we think they want

Deliver through a channel of distribution thatthey want to shop for the category

Present it in a manner that differentiates ourproduct from other me too competitors

Make them secure in their choice andselection

5

Marketing 101!

Lessons to always remember.

Consumers buy our product not because theyunderstand it, but because we understandthem.

Furniture is a service industry, our challengeis to deliver to the consumer:

What they want When they want it

In a competitive retail environment

With a range of services they want and are willing to pay for

6


4/14

Marketing 101!Lessons to always remember.

If you have a differentiated product and thecustomer doesnt understand it, price alwayswins

You must clearly define

your target customer

7

Our ChallengeDevelop and Profitably Move Product Through To The

Ultimate Customer The Consumer

8

Success comes with understanding and motivating each of these groups

Your Company(1) Your

ManagementTeam

(2) Your SalesRepresentatives

(3) RetailBuyers

(4) Retail SalesPeople (5)Your Target

Consumer


5/14

How furniture is different:

We are the only major durable goods industrythat does not involve the ultimate user, theconsumer, in product development

We basically price our product on cost ofacquisition (whether our own or purchased)plus a standard markup rather than what theconsumer is willing to pay

Up to 80% of products are derivative ratherthan innovative

9

10

Too expensive, risky, wasteful, time consuming & unpredictable

+/- 40% NEVER PRODUCEDWaste of company money, showroom space,

buyer and rep time, relationship capital, opportunity

+/- 40% DONT RETAILWaste of company & retailer money Rep time & effort,

major waste of relationship capital & credibility,missed opportunity of not

producing products that sell

+/- 20% SELLStill in line 12 months after

first retail placement

OF 100 PRODUCTS SHOWN AT MARKET

Current results


6/14

What if you could, right now: Improve sales of new introductions

Better forecast product flow and sell through

Prove real not imagined regionaldifferences

Increase net margins

Have solid metrics to make productdecisions

11

What if you could, right now:

Recast your relationship with your reps andretailers

Speed up time-to-market

Reduce mistakes & increase successes

Learn from the real customer, the consumer

12


7/14

How do we do it?

Find out what the customer wants and give itto them

The most powerful message we can besend is You asked for it, we are giving it toyou

Consumer research opportunities havechanged dramatically with current internet

opportunities, both in lower cost and higherconfidence

13

What has changed, why now?

Universality of internet usage

Higher resolution monitors & increased bandwidth permitting more realistic visual productpresentations

Use of virtual reality and sophisticated

graphics to bypass product sample process

14


8/14

What has changed, why now?

Prequalified consumer panels that permitlarge samples of specifically profiledconsumers at very affordable costs

Quick response that shortens developmentcycles

15

Product Test Categories

16

A) PLANNING AND PRIORITIZINGTesting of style appeal and preferences uses SDInsights

proprietary style matrix images. Weve designed a series ofstandardized collages covering major style categories.These are used to elicit accurate consumer responses andhelp focus overall merchandise planning and new productevaluations in terms of well understood style preferences.

ie. Informal Contemporary

ie. New Country


9/14

17

B) FEATURES AND CONFIGURATIONSTest consumer preferences for specific productfeatures and configurations before releasingassignments to your designers.


18We can provide affordable rendering services to create accurate,

testable images for high confidence results .

Turn your designers line drawings that are simple and efficient but are poorimages for consumer feedback into accurate representations of your

designers vision with detailed renderings that can illustrate variations in finishcolor, wood specie and hardware treatments.

C) NEW DESIGNSTest specific new designs for consumer preferencescomparing even subtle detailing. Gain high confidenceof a projects success before ever going to market.



10/14

19

First we confirmed the strength of thebrand and whether it fit with Pulaskiscorporate objectives.

Then we tested multiple concepts,

attitudes, designs, colors, promotional andPOP ideas with very targeted consumersto develop the product and marketing.

Case Studies

20

Case Studies


11/14

Results

One of the most successful new youth brand andproduct launches in recent memory.

The first (Build-A-Bear) collections were so popular that Pulaski hadto delay cuttings of the second group while it caught up on production.

Page Wilson, VP Sales Pulaski Furniture, September 2007

Build a- Bear, reports that their brands youth furniture sales exceed

$30,000,000Global Icons, Build-a-Bear Workshop licensing agent

21

Case Studies

22

Results:One third of new products tested were not sourced due to low appealOther products were sourced at substantially higher levels than othersNet margins were increased with fewer closeoutsRetailer relations and placements were improved with the confidence thatconsumers wanted to buy these new introductions

Americas largestindependent lighting producerused SDInsight to testnumbers of new productsbefore introduction

Case Studies


12/14

23

THECLASSICSTested the concept, features,finishes, and presentation fornew CLASSICS collection oftraditional styled furniture.

ResultsConfirmed much broader appeal thanhad been initially expected and identifiedtarget customerMix and match concept developed

Research information used in marketpresentation to successfully place newcollection

Case Studies

24

Case Studies


13/14

Working with Martin Roberts Design, developed newbranded store display system based on marketresearch and in-store testing allowing the effectivepresentation of Harden upholstered and solid woodfurniture in a 1,000 sq. ft. Home Studio

Results Harden said the Home Studio, introduced in April 2006, is increasing

sales of the companys high end product by 33% in stores with a prioryears history Furniture Today

Partnering with our dealers to make them more successful, Hardens

Home Studio has now been installed in almost 50 stores and continuesto deliver exciting results Harden Furniture

25

Case Studies

26

Tested Laura Ashley brand,designs, and product conceptsand features with targetconsumers.

ResultsSuccessfully launched Laura Ashley brandmattresses for continued strong results withconsumers and retailers.

Case Studies


14/14

Results & Benefits Sales improve over untested products and

marketing

Margins improve with the right products,reduced closeouts, and pricing consumers arewilling to pay.

Real metrics permit informed decisions aboutproduct development & lowers overall costs

Your company is differentiated by focusingdesigners, product developers, marketing, andsales on innovative, well designed merchandisewith proven consumer appeal

27

Time to market can be accelerated with newtechniques and narrowing of focus on mostappealing products with best opportunities

Sales organization is motivated with credibleevidence of consumer appeal

Retailer relations and their margins areimproved, no longer being your test market

Retail salespeople are motivated with productsand features they know customers actually want

Move your company closer to the realcustomer, the consumer

28Contact Strategic Decisions Today:(229) 226-9548, web: sdiresearch.com

Results & Benefits

changing consumer behaivor

Documents