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O-MopTM Product
Line Assessment
Ronnie Forrest
Morgan Kapp
Dave Zhang
Overview
Methods Journey
Industry Overview
Corporate Values and Strategy
Brand Differentiation
Recommendation
Brand Differentiation
Integrate products and consumer household values
Health and safety
Aesthetics
Environmentally responsible
Premium offering to differentiate from existing commodity
brands available in the market
Superior packaging, presentation, colors, and sensory
aesthetics
Product formulation
Eye-catching designs
Lean outsourcing network of suppliers to remain nimble and
quick to market
Recognizable to establish brand loyalty
Ergonomic
Aesthetically pleasing
Biodegradable disposable cloths
Leverage PLA material
Source constraints
No U.S.-based manufacturers will agree to produce PLA non-woven cloths
due to technological concerns (90% of current products are sourced
domestically)
China source has agreed to produce the material
No source can guarantee non-GMO material
Weaknesses
Chinese supplier is unable to produce a quality product
Unable to effectively market this product consistent with core values
Sourced from China potential distribution complexity and increased price
Opportunities
Growth in the PLA cleaning cloth industry
High cost of entry for competitors (limited sources)
Threats
Public perception / consistency with core values: Materials sourced across the
globe carried a larger environmental impact due to shipping
Narrowing of distribution channels: GMO-free advocates and distribution channels
may shut Method off from the supply base due to the potential use of GMOs in PLA
More geo-political risk
O-Mop: Recommendations
Evaluate product market positioning
Product: convince management and stakeholders that the product aligns with
company vision is this product against dirty?
Price: Determine whether or not China-based source will result in a product
cost that can compete in the market
Placement: Understand distribution reaction to potential GMO in the products
Promotion: Clearly market the benefits of the O-mop over alternative solutions
Backup Slides
Current Situation
In 2006, Inc. magazine listed Method at #7 on the 500 fasted and
most successfully growing firms in the U.S.
$300,000 in startup capital
2007 45 employees and $50M in annual revenues; 125 products
Distribution was through drug stores, dept. stores, supermarkets,
and other retail outlets. (Target was a key channel 1400 stores in
47 states)
Live feedback from customers on their website tips for the future
Method created designer brands
Harmless to humans and the environment
Creative bottle and aroma designs
Created a premium brand to compete with cost-competitive non-green brands in the
market place
Issues
Source constraints domestically, with available sources in China
Raw material inputs to PLA could not be guaranteed GMO-free
some distribution channels / retailers were firmly against GMO
products
SWOT Analysis
Strengths
Supports their main mission Provide environmentally friendly alternative to nonbiodegradeable products
First to market on biodegradeable cleaning cloths
Technological familiarity
Weaknesses
Chinese supplier is unable to produce a quality product
Unable to effectively market this product consistent with core values
Sourced from China potential distribution complexity and increased price
Opportunities
Growth in the PLA cleaning cloth industry
High cost of entry for competitors (limited sources)
Threats
Public perception / consistency with core values: Materials sourced across the
globe carried a larger environmental impact due to shipping
Narrowing of distribution channels: GMO-free advocates and distribution channels
may shut Method off from the supply base due to the potential use of GMOs in PLA
More geo-political risk