customer co-creation in indesit company
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Customer co-creation for the new products development in the Home Appliances industry
20 minutes with Sarah Cirillo and Caterina Salvidio
Rome, 14th June 2011
Co-designing a new washing machine
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Innovation is our business
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Customer co-creation is the process by which new products are developed jointly by companies and their stakeholders and their consumers.
Since 2008 Indesit engages people as active co-creators of value to reach win more-win more transactions.Indesit is the only one in its industry to use the Customer co-creation.
The effects of customer co-creation
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- Differentiation
- Efficiences and speed
- Risks, time and capital reduction
- Competitive advantage
- Growth and New opportunities
Are customers enough qualified to design new products?
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The customers’ competence is the final result of some changes, such as:
• The Internet which has reduced a particular market failure, known as Information Asymmetry (Akerlof, Spence, Stiglitz)
• The social networking and the speed of communication
• The transformation from firms considered as a portfolio of business units, to an opened and networked firm, which is related with the context
• The increase of customers’ awareness
Market research Vs costumer co-creationM
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Traditional marketing inquiries do not involve customers.
Playing an active role in the products’ design, customers can deliver a strategic amount of information and insights for firms.
Why are customers able to create value for the firms?
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The Customer satisfaction reached by innovation is Indesit’s strategic goal. We are “obsessed” by the customers’ needs.
To innovate is the capability to give a concrete answer to a precise problem of a target market segment. Sometimes to innovate means creating new problems and giving new solutions.
Customers are perfect “problem creators”!
Customer co-creation weakens Porters’ five forces
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SWOT ANALYSIS
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STRENGTHS WEAKNESSES
Client and user at the center
Customer satisfaction
Emotional choices
Products without market
SWOT ANALYSIS
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OPPORTUNITIES THREATS
Increase in market share
Improved relationship with clients and users
Information flow
No patents
Difficulty in engineering process
Potential gains from consumer co-creation
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Thanks to consumer co-creation we expect our business to record significant gains in terms of:
• Ebitda
• Ebit
• ROI
Customer co-creation impact - 2012 FY preview
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[€M, Change Vs. 2011]
2009
Net Sales 2,879.2 2,613.0 +10.2%
EBITDA 309.8 259.5 +19.4%10.8% 9.9%
EBIT 183.8 118.6 +55.0%6.4% 4.5%
ROI 149.4 66.85.2% 2.6%
Change20122010
+123.5%
% on sales
% on sales
% on sales
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Our competitors
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Potential market share gains in EU
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Market Share Units (%)
2,6%
2,7%
2,7%
3,4%
3,9%
7,0%
8,9%
12,3%
13,1%
17,9%
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On the costs side:
Design and planning costs will grow following customer co-creation indications.
At the same time, the total effect on costs will decrease, thanks to a reduction in expenses connected to basic marketing researches and advertising.
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CONCLUSIONS
• Higher brand awareness
• Higher consumer satisfaction, regarding both customers and users
• Higher loyalty from our customers
• Weakening of Porter’s Five Forces
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Fare clic per modificare gli stili del testo dello schemaSecondo livelloTerzo livelloQuarto livelloQuinto livello
Any questions?
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