New-product development at Ikea

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IKEA-logoIKEA is one of the most successful and interesting companies of our day. IKEA is a case study we use to open our chapter on cross-functional coordination (chapter 19 in Basic Marketing and Bonus Chapter 2 in the new Essentials of Marketing 15e). This article, “Behind the Scenes at IKEA’s Top Secret Furniture Lab” (Wired), provides an inside look at IKEA’s new-product development process. The article lines up well with the new-product development process we describe in our textbooks — so it would be a great complement to your coverage of chapter 9. You could assign the article and ask your students to identify Ikea examples of the five steps in the new-product development process.

You could use this short video — no text, only music — as an introduction to a discussion.

Marketing, R&D and Design Work Together on New Products at Electrolux

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electrolux-ultracaptic-vacuum-cleanerSwedish appliance maker Electrolux (which also controls the Frigidaire brand) development of their new UltraCaptic vacuum cleaner (see picture) provides a great example of cross-functional coordination and new-product development. Electrolux uses what it calls the “innovation triangle” — with marketing, R&D and design working closely together in the new product development process. They also seek customer feedback throughout the process. You can read all about it in this Blooomberg Businessweek article, “Electrolux’s Holy Trinity for Hit Products” (October 31, 2013). The article offers great examples to use when you cover new-product development or cross-functional issues. It could be especially useful for those of you using our Basic Marketing textbook, which has a chapter titled “Managing Marketing’s Link with Other Functional Areas”).

 

Has Walmart cut too much?

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walmartcutsWe all know we can “save money” at Walmart — and maybe “live better,” (the other half of their current tagline), too. But have Walmart’s efforts to cut costs and deliver low prices created other problems for the giant retailer? Cutbacks appear to be leading to empty shelves and poor customer service. You can read about these issues at Bloomberg Businessweek “Walmart Faces the Cost of Cost-Cutting: Empty Shelves” (March 28, 2013) and at Business Insider “Wal-Mart Could Be In Big Trouble If It Doesn’t Fix Customer Service Fast” (April 12, 2013).

There are plenty of good examples that might be useful when you cover distribution customer service or retailing.  It could also be a good example for cost management and  HR-marketing cross functional issues which we have in the implementation and control and cross-functional chapters in Basic Marketing. 

Mastering “Customer Speak”

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Dilbert nails it – as he often does.  When I worked at Kodak management went on a kick to remove the work “problem” from our conversations with customers “call them opportunities.”  This might be fun to show when you cover marketing orientation (that total company effort thing) or customer service.  Also posted at Learn the 4 Ps.

Dilbert.com

$375 (or more) for a pair of jeans!

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The new Phantom jeans from True Religion have a list price of $375 — which is a deal when you consider Gucci jeans can go for $495 to $665.  You might ask the same question I did “How Can Jeans Cost $300?” — fortunately the Wall Street Journal (July 7, 2011 – non-subscribers may have to click here) asked the same question.  The article notes that costs are higher due to material costs and manufacturing — as well as the markups at wholesale and retail.  There is also a nice graphic that lists all of the material, trim, labor and other costs.  On top of that add the advertising costs — and relatively low sales volume.

This article might provide a nice addition to a discussion of branding, pricing, or manufacturing/costs (in Basic Marketing we cover marketing cost analysis and examine costs and production in our cross-functional chapter).