An Investigation Into the Design and Manufacture of a Branded Collection of Interior and Gift Products

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An Investigation Into the Design and Manufacture of a Branded Collection of Interior and Gift Products An Investigation into the Design and Manufacture of a Branded Collection of Interior and Gift Products, Which Show Manchester to be a Centre of Design Talent. A dissertation submitted to the University of Manchester For the degree of Master of Enterprise in the Faculty of Humanities 2010 Beth Marie Harvey School of Arts Histories and Cultures VOLUME ONE: SUBJECT An investigation into the design and manufacture of a branded collection of interior products, which show Manchester to be a centre of design talent. Chapter One: Introduction 1.1 Scope of Investigation 2 1.1.1 Project 2 1.1.2 Context 2 1.1.3 Problem 3 1.1.4 Aims 3 1.1.5 Objectives 3 1.1.6 Methods 3 Chapter Two: The Relationship Between Craft and Design 2.1 Definitions of Terms 6 2.1.1 Craft 6 2.1.2 Designer-maker 7 2.1.3 Design 7 2.1.4 Social Enterprise 9 2.2 Government Divides 9 2.2.1 Arts Council 9 2.2.2 Design Council 10 2.2.3 Crafts Council 10 2.3 The Relationship Between Craft and Design Literature 11 Review 2.3.1 New Technology 13 2.3.2 Prototyping 14 2.3.3 The Craft ‘Look’ 15 2.3.4 Craft in Industry 16 2.3.5 Craft as a Gift 17 II 2.3.6 Imported Crafts 18 2.4 Case Studies 20 2.4.1 Hella Jongerius 21 2.4.2 Carina Ciscato 22 2.4.3 Claire Norcross 22 2.5 Summary 23 Chapter Three: Creativity and Place 3.1 Craft and Design and its Relationship to Place 25 3.1.1 Manchester 26 3.1.2 Buy Local 27 3.1.3 Traceability 30 Chapter Four: Methodology 4.1 Methodology 32 4.1.1 Questionnaire Methodology 32 4.1.2 Interview Methodology 34 4.1.2.1 Retailers 34 4.1.2.2 Individual Makers 35 Chapter Five: Results 5.1 Questionnaire Results 37 5.2 Interview Results - Retailers 39 5.2.1 Hazel Sunners, John Lewis 39 5.2.2 Jeane-Marie Kenny, Bluecoat Display Centre 40 5.3 Interview Results – Designers 42 5.3.1 Claire Norcross 42 5.3.2 Eleanor Suggett 45 Chapter Six: Discussion 6.1 Defining Craft and Design 47 III 6.2 Technology 48 6.3 The Craft ‘Look’ 48 6.4 Craft in Industry 48 6.5 Craft as a Gift Product 49 6.6 Imported Crafts 49 6.7 Creativity and Place 50 Chapter Seven: Conclusions and Recommendations 7.1 Approach 52 7.2 Evaluation 52 7.3 Further Research 53 7.4 Lessons Learned 54 7.5 Concluding Remarks 54 Appendix 1 – Questionnaire Results 58 Bibliography 62 List of Figures V Word Count Volume 1 14688 Word Count Volume 2 15177 IV List of Figures Figure 1 Vase, John Lewis 19 Figure 2 Vase, John Lewis 19 Figure 3 Vase, John Lewis 19 Figure 4 7 Pots, Hella Jonerius, 1998 21 Figure 5 Ceramics, Carina Ciscato 22 Figure 6 Aperture, Claire Norcross 22 Figure 7 B of the Bang, Manchester 26 Figure 8 Imperial War Museum, Salford 26 Figure 9 Reasons for Buying Locally Produced Foods - Source: IGD 29 Shopper Trends 2010 report Figure 10 Questionnaire Results 37 Figure 11 Questionnaire Results 38 Figure 12 Quesitonnaire Results 38 Figure 13 Vase, John Lewis 39 Figure 14 Private Commission, Rebecca Gouldson 41 Figure 15 Stackable Egg cup, Hannah Tofalos 42 Figure 16 Staccato, 2007, Halima Cassell 42 Figure 17 The Eight Fifty, Claire Norcross 43 Figure 18 Beginnings, Eleanor Suggett 45 V VOLUME TWO: ENTERPRISE An investigation into the design and manufacture of a branded collection of interior products, which show Manchester to be a centre of design talent. Chapter One: Project Concept and USP 1.1 Mission Statement 2 1.1.1 What do we do? 2 1.1.2 How do we do it? 2 1.1.3 For Whom do we do it? 3 1.2 Vision Statement 3 1.3 Project Concept 3 1.3.1 Demand 4 1.3.2 Innovation 4 1.3.3 Feasibility 4 1.3.4 Attractiveness 4 1.4 Definitions of Terms 5 1.4.1 Manchester as a Focussed Location 5 1.4.2 Social Enterprise 5 1.4.3 Designer-Makers/Craft 6 1.4.4 Product Design 7 1.4.5 Products 8 1.5 Identification and justification of USP 10 1.5.1 Local 10 1.5.2 Traceability 10 1.5.3 Limited Edition 11 1.6 Background to project 11 Chapter Two: Market Issues 2.1 Macro Environment Analysis 13 2.2 Micro Environment Analysis 14 2.2.1 Porter’s Five Forces 14 VI 2.2.1.1 The bargaining power of 14 customers 2.2.1.2 The threat of new entrants 14 into the industry 2.2.1.3 The bargaining power of 14 suppliers 2.2.1.4 The threat of substitute 15 products or services 2.2.1.5 Rivalry amongst existing firms 15 2.2.2 Internal analysis 15 2.2.3 SWOT analysis 16 2.2.3.1 Strengths 17 2.2.3.2 Weaknesses 17 2.2.3.3 Opportunities 17 2.2.3.4 Threats 17 2.3 Identification of Market 18 2.3.1 Target Market 18 2.3.2 Marketing Mix 18 2.3.2.1 Price 18 2.3.2.2 Product 19 2.3.2.3 Place 19 2.3.2.4 Promotion 20 2.3.3 Competitive advantage 20 2.4 Customer profiles 22 2.4.1 The consumer 22 2.4.2 Manchester Made typical consumer 22 profile 2.5 Competitive Analysis 23 2.5.1 Direct Competitors 23 2.5.2 Indirect Competitors 24 2.5.3 Future competitors 26 2.6 Primary Research Methodology 27 VII 2.6.1 Questionnaire 28 2.7 Analysis 30 2.7.1 Demographics 30 2.7.2 Craft and Design 30 2.7.3 Consuming 31 2.7.3.1 Distribution channels 32 2.8 Key Market Risks 32 Chapter Three: Product/Service development 3.1 Outcome of development to date 36 3.2 Implications for commercialisation 36 3.2.1 Manchester Made 36 3.2.2 Website 37 3.2.3 Packaging for Retail 40 3.3 How the products are protected 41 3.3.1 Licence 41 3.3.2 Royalties 41 Chapter Four: Commercialisation 4.1 Business Model 43 4.1.1 Infrastructure 44 4.1.2 Offering 45 4.1.3 Customers 46 4.1.4 Finances 47 4.1.5 Value chain 48 4.1.5.1 Primary activities 48 4.1.5.2 Support activities 48 4.2 Development plan 50 4.3 Business strategy over next three years 51 4.3.1 Proposed start date and timeline 51 4.3.2 Key Milestones 51 VIII Chapter Five: Financial Analysis 5.1 Financial Position 54 5.1.1 Grants 54 5.1.1.1 Umbro Industries 54 5.1.1.2 Arts Council 54 5.1.1.3 Manchester City Council 56 5.1.2 Other sources of funding 57 5.2 Start-up Costs 57 5.2.1 Website 57 5.2.2 New Mac Computer 58 5.3 Fixed Costs 58 5.3.1 Marketing 58 5.3.2 Wages 59 5.3.3 Office Expenses 59 5.3.4 Telephone 60 5.3.5 Manufacturing 60 5.3.5.1 Margin 61 5.3.5.2 Mark-up 61 5.4 Variable Costs 62 5.4.1 Packaging 62 5.4.2 Fulfilment 62 5.4.3 Royalties 5.4.4 Tax 63 5.5 Sales Forecast 63 5.6 Cash Flow 64 5.7 Profit and Loss 65 5.8 Balance Sheet 66 Chapter Six: Conclusions 6.1 Sensitivity Analysis 69 6.1.1 Wages 69 6.1.2 Sales 69 IX 6.1.3 Ratios 69 6.1.3.1 Increase in Overheads 69 6.1.3.2 Increase in Sales 70 6.2 Evaluation 70 6.2.1 Project concept and USP 70 6.2.2 Market issues 70 6.2.3 Product/service development 71 6.2.4 Commercialisation 71 6.2.5 Analysis 71 List of Figures XI List of Tables XII Declaration XIII Copyright statement XIV Acknowledgement XV Executive Summary XVI Appendix 1 – PESTEL Analysis 74 Appendix 2 – SWOT Analysis 77 Appendix 3 - Competitors 78 Appendix 4 - Survey 80 Appendix 5 – Survey Results 83 Appendix 6 – Umbro Industries 93 Appendix 7 - Logos 94 Appendix 8 – Arts Council Interview Transcript 95 Appendix 9 – Cash Flow 96 Appendix 10 – Balance Sheet 99 X List of Figures Figure 1 Products from Makers own websites 9 Figure 2 Products from Makers own websites 9 Figure 3 Products from Makers own websites 9 Figure 4 Products from Makers own websites 9 Figure 5 Flos, Selfridges 10 Figure 6 19 Manchester Made Market Position (Beth Harvey, 2010) Figure 7 Product Life Cycle 20 Figure 8 21 Sustaining Competitive Advantage (Martin Henry, Lecture Slide) Figure 9 Target Market Persona (Google Images, 2010) 23 Figure 10 What is your age 30 Figure 11 What is your profession 30 Figure 12 Area Heat Map 30 Figure 13 Supporting Local Businesses 31 Figure 14 The Perfect Gift 32 Figure 15 Local Makers 33 Figure 16 Who Made the Product 33 Figure 17 How Often do consumers buy gifts 33 Figure 18 Where do consumers buy gift products 34 Figure 19 Manchester Made Logo 36 Figure 20 Manchester Made Flyer 37 Figure 21 Website 38 Figure 22 Website 39 Figure 23 Packaging 40 Figure 24 Branding 40 Figure 25 Osterwalder Business Model Canvas 43 Figure 26 Infrastructure 44 Figure 27 Offering 45 Figure 28 Customers 46 Figure 29 Finances 47 Figure 30 Michael Porter’s Value Chain 48 Figure 31 Cash Flow View 63 Figure 32 Break Even Graph 66 XI List of Tables Table 1 Strengths and Weaknesses 16 Table 2 Direct Competitors 24 Table 3 Competitors 25 Table 4 High Street Competitors 26 Table 5 Gantt Chart 50 Table 6 Depreciation 58 Table 7 Wages 59 Table 8 Profit and Loss 65 XII Declaration No portion of the work referred to in the dissertation has been submitted in support of an application for another degree or qualification of this or any other university or other institute of learning; XIII Copyright Statement i.
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