The Coolest Coffee Table: Project Analysis

Answer

The Coolest Coffee Table: Project Analysis

Table of Contents

1.0 Introduction. 2

2.0 Project Title. 2

3.0 Overview And Summary Of The Consultancy Project 2

3.1 Overview of the product 2

3.2 Project drivers and project constraints. 2

3.3 Constraints: risks and limitations to achievement of objectives. 2

4.0 Project Proposal 3

4.1 Marketing Strategy. 3

4.2 Potential Risks. 3

Low Return on Investment in Wooden Products. 3

Climate Change and Poor Land Management Practices. 4

Tech-embedded Table Cloth for Health Monitoring Offering Competition. 4

5.0 Project Related Information. 4

6.0 Follow Up Questions. 5

7.0 Relevant Skills and Experience. 5

8.0 Conclusion. 5

References. 6

The Coolest Coffee Table: Project Analysis

1.0 Introduction

This paper details a project in which a new product, dubbed “The Coolest Coffee Table”, is set up and distributed in Australia. Introduction and promotion of the product in Australia will be conducted by accentuating the product’s superior quality, and subsequently positioning it in the downstream sectors of the timber industry. The strategy will not include cost leadership as it is believed that the product’s superiority and strong value proposition, and position as a status symbol will persuade high-end customers in the middle class and upper classes to buy it at comparatively high prices.

2.0 Project Title

The Coolest Coffee Table

3.0 Overview And Summary Of The Consultancy Project

3.1 Overview of the product

The Coolest Coffee Table is an elegant, long-lasting, Red Green Blue (RGB) LED lights enabled, serviceable coffee table replete with a protractible mini surface, in-built fridge, abundant storage space for snacks, stationery and video games, and 3 splendid colours tailored for all colour backgrounds. The objective of the project is to advice via the consultancy the client to set up and distribute the product in Australia.

3.2 Project drivers and project constraints

The main motivation to enter the market is to take advantage of exciting opportunities for growth in Australia, being the world’s 12^th largest economy, grossing a nominal GDP of $1.3 trillion annually (Australia 2015). Moreover, the country is geographically situated next to large markets such as China, Japan, the U.S., South Korea and Singapore, where luxury furniture subsector is thriving, with 2.5 decades of relentless growth, enhanced by superior research and development (R&D) functions, and enviable growth prospects in information technology (Australia 2015).

The project also seeks to leverage on abundance of hardwood timber, only second to Brazil (Torelli 2015). To the firm’s advantage, Australia is also home to Turpentine, one most fire-resistant variety on the planet (Torelli 2015).

3.3 Constraints: risks and limitations to achievement of objectives

Despite the aforestated drivers, a number of limitations abound. Three are highlighted; namely, Low Return on investment (ROI) in Australian hardwood products, cataclysms of climate change and poor land management practices, and competition from a tech embedded table cloth designed for the health-conscious customers in the middle and upper classes, most of whom are above 50 years old (Torelli 2015; Zhou et al 2015). Detailed discussions of these constraints are in the project proposal section.

4.0 Project Proposal

            Key elements of the project are promotion of a product with unique features designed for high-end spenders in the downstream position of the timber sector. The product essentially dovetails functional usefulness with aesthetic appeal. This is evident in the value-added components exemplified by innovations in storage spaces, twin AC ports, two Universal Serial Bus (USB) ports, Bluetooth enabled Sound Systems, integrated device control station, two beverage cooling fridges, a work station, an entertainment center, beverages cooler, a storage center, and a status symbol.

The target market is high-end consumers in the middle class and upper class. Accordingly, Sheppard and Biddle (2017) delineate these customers as the “established middle’” class consisting of 24% of the market with a mean age of 51 years, comparatively privileged domestic earnings, and similarly superior academic achievements. They are characterised by greater “social and cultural capital” derived from being scions of parents with remarkable “occupational prestige” (Sheppard and Biddle 2017). Similarly, the upper-class customers, characterized as “emerging affluent” has a mean age of 51 years with the most privileged “economic, social, and cultural advantages, greater incomes than their peers in the “established middle class”, yet an inferior wealth accumulation.

4.1 Marketing Strategy

The marketing strategies are anchored on circumvention of logistical and operational challenges, such as set up of physical offices, staff, and procurement of office equipment. A study by Tran (2019) contend that a standard office should comprise of furnishings and office equipment, spacious front office area, well trained front office staff, records section, ergonometric furniture and deco, spacious meeting rooms, Wireless Fidelity (Wi-Fi) connectivity, ample parking spaces, security, and restrooms (Tran 2019). Additionally, there should be optimal lighting, functional fire alarms, burglarproof doors and windows, burglar alarms, and unambiguous evacuation plan in the event of emergencies. Moreover, “switches, wall sockets should be in good condition. Finally, there should be reliable power supply, fast internet connectivity, working phone line, and functional office printers and scanners.           

4.2 Potential Risks

Empirical evidences show that the project’s marketing strategy is moderated by three factors, namely, delayed ROI on hardwood timber products, Climate change and poor land management practices (Torelli 2015), and strong competition from tech-embedded table cloth for the health-conscious customers (Zhou et al. 2015).

Low Return on Investment in Wooden Products

The coolest coffee table is composed of wood as the main raw material. Yet, evidence by Torelli associate Australian hard wood plantations with the slowest growth rates. For instance, the Turpentine variety’s ROI is at least 30 years (Torelli 2015). The situation is further compounded by surging demand for similar wood varieties in the construction sector. Available projections also reveal similar growth in demand for softwoods, a situation which could instigate inflationary pressure on the product in Australia and beyond. At present, the country exports the bulk of its softwoods, resulting in imports by home users (Torelli, 2015).  Presently, demand for Australian hardwood is projected to grow. Further, the situation is exacerbated by nearly 5,000 manufacturers in the Australian furniture manufacturing industry, who rely on similar resources to employ in excess of 54, 600 people, adding an average of $2.6 billion in industry to the Australian economy annually (Torelli 2015).

Climate Change and Poor Land Management Practices

In recent times, Australia has endured adverse weather conditions, mostly in the form of “fires, floods and cyclones”, leading to suboptimal growth of forests, low-grade timber, periodic obliteration of forests, upsetting of supply chains, and jeopardizing operations of downstream sectors (Torelli, 2015). Apart from climate change, research has also associated “land management practices” with motivational and disruptive influences. Specifically, studies have revealed positive correlations between sustainable land management practices and improvement of biodiversity and soil improvement. Conversely, unsustainable land use protocols could adversely impact soil quality and supply of monoculture forests”.

Tech-embedded Table Cloth for Health Monitoring Offering Competition 

Competition from tech-enabled table cloth, a technological marvel with a “novel sensor system for the support of nutrition monitoring” could present new challenges for the product (Zhou et al. 2015). In essence, the product has an embedded table cloth matrix with a “smooth grained textile matrix and a weight sensitive tablet” (Zhou et al. 2015). The system is nonintrusive, personal and scalable.

5.0 Project Related Information

The objectives of this project are twofold: to introduce the Product into the market, and to position it in the market through appropriate marketing strategy. To address these objectives, the sources are selected from peer reviewed journals, company reports, conference reports, and publications from industry professionals.

For instance, Zhou et al. (2015), in their “Smart table surface: A novel approach to pervasive dining monitoring”, outlines the benefits of the “nutritional monitoring technology suitable for spotting and recognition of food intake related actions, such as cutting, scooping, and stirring”. Similarly, Torelli (2015), in his Australian Furniture Association response to Meeting Future Market Demand – strategic directions issues paper, discusses opportunities, and threats in the Australian market. This is important for identifying project drivers and constraints.

Moreover, Bento, Martinez and Martinez (2018), authors of Brand engagement and search for brands on social media: Comparing Generations X and Y in Portugal, identify social media as an effective tool for marketing communications that increase brand awareness and customer engagements. Correspondingly, Larsson (2017), in “Diversifying Likes: Relating reactions to commenting and sharing on newspaper Facebook pages”, discusses the impact of Facebook marketing by narrowing on the kind of content being shared or commented on, and the underlying reasons for sharing.

By the same token, in “The Challenge for Luxury Retailers: Figuring Out Digital Opportunities”, Dahlhoff (2016) offers various choices in regard to awareness and drive on buying decisions on social media marketed products. Likewise, Dissanayake, Siriwardana and Ismail (2019) highlights the contribution of social media to correspondence in the marketing of the product.  Finally, Cooper (2019), in his “The drivers of success in new-product development”,  recognizes sales promotion as an important element of the NPD process by focusing on success variables in new product development; namely, tactical focus on product uniqueness, strong value proposition to the customer, and actionable best practices (could include refinement of the Bluetooth speaker to have a bigger sound, introducing innovative colours and new designs and so on).  The second grouping includes business level where “organizational and strategic factors”, regarding innovation approaches and detailed reviews of R&D processes are discussed. Finally, the third category of success divers identified is the systems and methods that the firm has in place for managing NPD.

6.0 Follow Up Questions

1. How might you identify the target market?
2. Are there seasonal issues or current trends that may impact on the success of the launch of the product?

7.0 Relevant Skills and Experience

Australia enjoys a robust and enduring “research and design” labour force, which is a key aspect of the project’s success. However, there are concerns around non-value-added functions particularly around, an ageing workforce, apparent inability to recruit and retain younger employees, steady disappearance of low-skilled workers as technology takes root, and limited opportunities for current employees to upgrade their knowledge so as to take up more challenging tasks with heavy focus on science, technology, engineering and mathematics (Torelli 2015).

8.0 Conclusion

From the foregoing discussion, the objective of the project is to advice the client to set up and distribute the product in Australia. Evidences from the reviewed literature suggest that the two objectives should be pursued by presenting the product as a status symbol. Subsequently, the product’s features were accentuated, and presented to the middle- and upper-class consumers via a strong value proposition.