This report discusses the concept of fiber board coffins on the Swedish market from the perspective of target costing as well as co-creation. The main method used to derive the empirical findings was a focus group. This report is the third report in a series where the product of fiber board coffins was developed from initial design stage to engineering phase and finally this business report.
Due to the shift from a company centric view to a customer centric view on the market place, companies need to adapt their strategies when launching a new product to make sure they offer an added value to the customer. Target costing considers the customer-centric view by setting a price first and then deriving the placement of costs. Distribution of costs is done by seeking the customer’s opinion and asking for what is important to them in the product. The report describes how the target price was set and costs distributed to reach a satisfactory product for both the client and the company.
Besides costs, consumer behavior and customer value influence how the product should be marketed. Two main areas influence the consumer when purchasing a product: macro, external, and micro, internal factors. It was found that the macro factors play an important role when setting boundaries to the product whereas the micro factors can be used to place the product and derive a unique selling proposition.
The consulted focus group showed clear results. The three most important factors in the purchase of a coffin are price, color and sustainability.
From all the insights mentioned above an advertisement of a catalogue was developed and the conclusion reflects the concept, how to market it, and what could be a motivation to purchase it.
Contents
Summary
1. Introduction
1.2. Problem
1.3. The case company
1.4. Results from module 2-design and module 3-engineering
1.5. Purpose
2. Theory
2.1. Consumer behavior - consumerism
Macro consumerism
Micro consumerism
2.2. Co-creation
Co-creation as marketing research tool
Co-creation as marketing strategy
2.3. Target costing
Definition of the product
Quality Function Deployment
Setting the target selling price and target profit margin
Calculating allowable cost
3. Method
4. Empirical Findings
4.1. The funeral market in Sweden
Process from death to burial
4.2. Results from the module Methods at work - business
4.3. Empirical Findings from the focus group
Test focus group with students
Focus group with relevant customer
4.4. Empirical Findings from the Interview
5. Analysis
5.1. Changing market environment
External influences on the concept of fiber board coffins
Customer influences when making the purchase decision
5.2 Influence of co-creation on the product development to meet customer requirements
Marketing strategy and communication for the product
5.2. Cost model analysis
6. Conclusion and Reflection
6.1. Reflection design student
6.2. Reflection engineering students
7. Appendix
7.1. Table of Figures
7.2. Design Brief of the case company, including company description
7.3. Survey results from the test focus group
7.4. Focus group questions
7.5. Survey results from the focus group
7.6. Interview questions with the funeral company and survey results
7.7. Bill of materials fiber board coffin “Linné”
7.8. Results of testing the fiber board coffin in Solidworks according to material feasibility
7.9. Bibliography
Books
Articles
References from the World Wide Web