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COMPETITIVE

ADVANTAGETHROUGH DESIGN



‘One of the great functions of design is to be able

to project and embody the future rather than the

present: that is where added value comes from.’

Sir Christopher Frayling, Chairman, Design Council



03

CONTENTS

04 GO

08 SMILE

12 LIFEBUILDING COMPANY

16 HEWLETT PACKARD

20 TESCO

24 UNILEVER

28 DUCHY ORIGINALS

32 BLACK & DECKER

36 IKEA

40 SMITH & NEPHEW

44 CHARCOLONLINE

48 USEFUL INFORMATION

07 BRANDING

11 E-BUSINESS

15 LIFESTYLE & COMMUNITY

19 INNOVATION CULTURE

23 CUSTOMER FOCUS

27 ENVIRONMENT &

SUSTAINABILITY

31 DESIGN COSTS

35 PRODUCT DESIGN

39 STRATEGIC DESIGN

43 DESIGN

THE BUSINESS CASE

47 CONNECTING

DESIGN & MARKETING

ADVICESTORIES



The deregulation of air travel in 1997 spawned a quartet of low-cost airlines in the

UK: Go, Easyjet, Ryanair and the now defunct Debonair. Rather than just entering a

head to head battle with the other airlines, Go, a former British Airways subsidiary,decided to set itself apart from the competition by deliberately taking on the High

Street retailers for a slice of the growing leisure spend.

STORY 1 GO

GO COMPETES WITH THE HIGH STREETTO GET PASSENGERS ON BOARD

04

Barbara Cassani

Chief Executive To achieve this, Go’s design and

marketing strategy was aimed at

persuading the increasing number of ABC1s with disposable income that a trip

to Barcelona, Bilbao or Venice was an

alternative to a meal out or a new pair of

designer trousers. Hence Go positioned

itself as a classier, more design-

conscious airline than the competition,

while offering equally cheap fares.

Because it entered the market slightly

later than its

competitors,David Magliano,

Marketing Director

of Go, was able to

carry out detailed

observational

research. He realised that the airline had

three potential markets: passengers

visiting friends or relatives, self-employed

and middle-tier business people and

pure leisure travellers. Most of thesecould afford a more expensive option

but preferred to spend their money

on something else. What would attract

them was reliability and style, plus afew affordable extras such as

allocated seating.

Go used branding and customer focused

design (both up front and behind the

scenes in its

business operation)

to build a

competitive

position in themarket. Its logo

and overall image are modern and

restrained - in contrast to the brash

‘tabloid’ style of its main competitors.

Both its brand and advertising are

designed to appeal to upmarket

professionals - visual, stylish, clean,

crisp, with a clear invitation to travel.

It aims to emulate well-known retailers

such as Ikea and Gap and banks likeFirst Direct.

Go’s business model sees

retailers, not

just airlines, as

competition

A restrained

image sets Go

apart from

brasher rivals



06

‘We measure our own customers’

satisfaction and over 80% of customers

rate our overall experience as Good or Excellent. This is well above the consumer

industry norm so we believe we are

getting it right.’

David Magliano, Director of Marketing, Go



You don’t see many people with a smile on their face when they are queueing in a

bank. So when the Co-operative Bank launched smile, the UK’s first full-service

internet bank, in 1999, the first principle it established was that it had to bepersonalised and user-friendly.

FACT BOX

COMPANY smile

CHIEF EXECUTIVE Bob Head

PRODUCTS & SERVICES Online banking

ACCOUNT HOLDERS 500,000 in first

18 months

SECURITY OF SITE BS7799 - Informat ion

Security management

CUSTOMER FOCUS Active e-panel of

500 customers

TURNOVER - 2000 £429.0 million

Co-operative Bank. Up

£25.7 million on 1999

OPERATING PROFIT - 2000 £96.3 million

(before tax) Co-operative Bank

WEBSITE www.smile.co.uk

08

STORY 2 SMILE

PUTTING A SMILE ON THE FACEOF A BANK’S CUSTOMERS

To underpin these core brand values a

coherent design strategy was needed,

to encompass:

• Branding - to attract potential

customers to try something really new

• Customer needs - to keep clients with

the bank, and ensure they recommend

it to their friends!

• e-business - a genuine solution, not a

trendy, not-very-useful add-on.

smile’s logo with bright pink branding

was a deliberate strategy to enable it to

stand out from the crowd among the

major banks. Thecolour pink was

chosen because

it clearly separated

it from the usual

blues, greens and

reds of conventional

banks. And the design, reminiscent of

e-mail sign-off ‘smileys’, is appealing

to the technological generation that

would most likely be the bank’s firstcustomers.

Yet design means much more to smile

than creating a friendly logo and a

shocking pink house style. Design

principles drive the way the bank’s printed

literature is written and presented, the

informal but efficient telephone mannerof the staff and, most importantly of

all, the development of its website.

To ensure reliability, smile has always

used technology that is widely available

and which allows as many customers

as possible to access the site quickly

and easily.

Chief Executive Bob Head believes thatsmile’s internet design has been the

key to business success. ‘Simple clean

design and clear language have ensured

that smile customers like to use our

site and recommend it to their friends.

At the same time, we have to deliver

products to customers at a low cost to

the bank and customer alike. The result

is a website which is straightforward,

simple, human and, above all, easyto navigate.’

Design drives

every aspect

of business,

right down to

telephone manner



10



12

‘Physical products are becoming containers for the delivery of services and experiences and it would surprise me if

housing doesn’t follow that route.’

John Weir, Group Design Director, Wilson Connolly



15

The example of house builder Wilson Connolly is a case in

point. The company is attempting to change attitudes to new

housing developments by adapting its offer to suit people’s

lifestyles and by addressing common concerns rather than trying

to persuade people they want something that they don’t.

In a broader context, designers have a responsibility to address

the issues of how we live and how the products and services

we use on a day-to-day basis affect the people immediately

around us. Improving the design and quality of public spaces

and buildings, public transport and local amenities of course

helps to generate a spirit of community and well-being. And

common concerns, such as an increasing crime rate, how to

cater for an ageing population and how to deal with pressing

ecological issues can all be tackled effectively by a modicumof lateral thinking and inventive design.

In some ways, design that has a positive effect on the

community is just plain common sense. But often this involves

stepping away from entrenched thinking and examining matters

from a fresh perspective, which is easier said than done.

Good lighting and visibility not only deter thieves, but make

people feel safer. The same is true of other mesures that

hamper crime or remove temptation, such as car immobilisers,

bicycle pods at rail stations and handbag clasps on

restaurant seats.

ADVICE 3 LIFESTYLE & COMMUNITY

Design has a key role to play, not only in helping

businesses become more profitable, but also in creating

better environments and communities for us to live in.



The recent high-profile proposed merger of Hewlett Packard and Compaq illustrates

the relentless need for growth and worldwide reach in the computer industry. HPbelieves that we’re heading toward a world where everything will be connected by

way of a new generation of technology linked to the internet. What is astonishing is

how quickly this is happening.

FACT BOX

COMPANY Hewlett Packard

CHAIRMAN & CEO Carly Fiorina

EMPLOYEES 89,000 (pre-merger)

PRODUCTS & SERVICES IT, hardware,

software and solutions

TURNOVER - 2000 $48.7 billion


PROPOSED ACQUISITION Compaq

NEW COMPANY VALUE $87 billion

as of Sept 2001

WEBSITE www.hp.com

16

STORY 4 HEWLETT PACKARD

WRAPPING THE FUTURE AROUNDTHE INTERNET

This case study was written prior to the proposed merger of HP and Compaq.

At the same time, there is a strong

downward pressure on prices. What’s

clear today is that value rarely lies

solely in the product itself, but in the

service delivered through the product,

which is why more companies are

wrapping them in e-services.

HP believes that it must display six

inherent traits to survive in the

internet era: inventiveness, optimism,

inclusiveness, humanity, quality-

consciousness and trustworthiness.

HP still sees itself as a company of

inventors in the tradition of Bill Hewlett

and Dave Packard, who started the

business in a garage. However,

inventiveness now is seen to be vital to

business success: the smart, ingenious

thing that others will admire and respect

- and pay for.

These traits are wrapped around the HP

brand character and soul. The soul

defines what HP stands for in an

internet age, and sits at the core. The

character defines how HP acts and

communicates, and performance

indicates what HP says and does to

make it all ring true.

What happens when product design

goes way beyond the box?

One activity which highlights all the

characteristics of an innovative culture is

the Superdome high-end server project.

The HP Superdome

product team

designed a

whole customer

experience into

their top line UNIX

server. By harnessing the collective

know-how of far-flung, interdisciplinary

teams, the product team learned it could

make the whole process of planning,

purchasing, integrating and maintaining

Value lies not in

the product, but

in the service it

delivers



18

‘Our core values, and the

rules of the Garage [Hewlett

Packard was founded by

two inventors working froma garage], are the heart and

shining soul of the system.

These are among our

greatest, most compelling

competitive advantages.’

Carly Fiorina, Chairman, President & CEO,Hewlett Packard



The rollercoaster world of e-commerce is still in its infancy. New technology

inevitably attracts entrepreneurs, but the recent spectacular crash of several

internet-based businesses illustrates that the key to successful innovation is often

the ability to harness new technology to mature businesses with strong brand

names. Oh, and don’t forget to put the customers first!

20

STORY 5 TESCO

THE BIG BRAND THAT HASCRACKED THE ART OF E-RETAILING

In the mid 1990s, many first-timers

launched unproven business concepts

on the internet. Tesco.com was

launched initially as a defence against

all these new e-retailers, however

Britain’s top retailer has now proved

that e-retailing can be highly successful

if the business model is well designed.

Tesco was one of the first retailers to

go online, back in 1995 and, to be fair,

its website suffered a few early jitters

before developing

into the sleek and

intuitive site that

we see today.

More important

than the website

though was what lay behind it and hereis where the company began to succeed.

Tesco decided from the start that the best

economic model was structured around

its existing assets and so it used in-store

staff to pick items ordered over the

internet off the shelves, rather than

making up orders from a separate

warehouse. While other retailers mainly

opted for centralised warehouses,

Tesco correctly forecast - against allthe received wisdom at the time - that

warehousing was a recipe for disaster.

John Browett, Chief Executive of

Tesco.com, explains: ‘Running our home

delivery service from the stores gives

customers the best service and value.

Delivery times can be kept below 30

minutes from store to house, keeping

costs down, and the range is hugebecause stores stock so many products.’

Terry Leahy

Chief Executive,

Tesco

John Browett

Chief Executive,

Tesco.com

Tesco realised

the value of its

existing assets to

its next venture



22

‘Our dot com business is an important way of getting in

touch with our customers and reaching out to new ones.’

Lucy Neville-Rolfe, Corporate Affairs Director, Tesco



You don’t normally associate detergents with design. Washing powders and liquids

are hardly the most glamorous part of the weekly shop, and the arrival of ‘designer

detergents’ in supermarkets is clearly still some way off. However, design thinkingdoes help Unilever solve an extremely tricky equation in linking scientific research,

customer research, marketing, business strategy and environmental issues to evolve

the product offering we see on our shelves.

FACT BOX

COMPANY Unilever

CHAIRMEN Antony Burgmans

and Niall FitzGerald

PRODUCTS & SERVICES Consumer products

UK MARKET SHARE - 27%

HOUSEHOLD DETERGENTS

(3 YEARS)

DETERGENT IMPACT Reduced by 125,000

tonnes a year in Europe

TURNOVER - 2000 £28,963 million

up 16% on 1999

WEBSITES www.unilever.co.uk

www.unilever.com

24

STORY 6 UNILEVER

KEEP TAKING THE TABLETS

Persil Tablets are a good example.

Persil, manufactured by Unilever, has a

dominant 27% share of the fiercelycompetitive £1 billion UK household

detergent market, where players have to

be highly innovative to remain competitive.

Unilever considers design to be crucial

in pulling together its research and

development and manufacturing

operations to develop the products

which help secure more market share.

But just as important to the company are

its targets for sustainable development,

defined as ‘meeting

the needs of the

present without

compromising the

ability of future

generations to

meet their needs’.

Its policies include using environmental

management tools to evaluate thepotential whole-life effects of products

from the extraction and processing of

raw materials through manufacturing,

packaging, distribution, use and

eventual disposal.

Environmental concern is not the sole

preserve of Unilever. The European

detergent industry as a whole has

taken steps to address environmental

issues by developing a Code of Good

Environmental Practice, backed by an

awareness campaign aiming to show

consumers the contribution they can

make to sustainability by changing the

way they wash their clothes.

However, despite efforts like these,

good performance is generally still

more important to customers than

environmental issues when they choose

their detergent. Various eco-friendly

detergents have been launched over

the last few years only to fail simplybecause they don’t do their job as well

as conventional detergents.

Persil tablets

Non-biological tablets

Design binds

research and

manufacturing

to create

new products



25

‘We have a consumer and

citizen agenda. The task is

to design a product that is

consumer friendly but which

is also environmentally

sustainable’

Dr Hamish Will, Environmental

Assurance Manager, Unilever



26

In this relatively conservative marketplace

a new product has to carry a simple

proposition and offer obvious benefits.

Past successes and failures illustrate the

point. In the 1970s, low temperature

bleaching agents in washing powdersmeant customers could reduce their

washing from 90° to 60° and cut their

energy bills, but

the concentrated

powders of the

1990s met with

resistance because

people tended to

use more than necessary and so came to

see the product as bad value for money.

Unilever’s designers had to find a product

that brought together the requirements

of eco-friendliness, performance and

convenience. They came up with a

simple idea - detergent tablets - which

proved to be the breakthrough the

company had been looking for.

They were launched in the UK and France

in 1998 after seven years of R&D. At

the time, 60% of the market was in big

box powders, 20% was in liquids and the

remainder was in concentrated powders.

Unilever hoped tablets would have a

20% share in five to six years by moving

customers from big box powders and

concentrates. However, tablets have

already secured a 25% share in just

three years.

Hamish Will, Unilever’s Environmental

Assurance Manager for Home Care

products, likens the convenience of

detergent tablets

with that of

teabags: ‘Bothproducts are

pre-measured,

which means

convenience and

minimum waste. Although we tried to

get across the environmental message

with concentrated powders, it simply

didn’t work because there was very little

perceived consumer advantage.

‘Consumers want to do the right thing,

but when it comes to the crunch they

do what suits them. We have, therefore,

both a consumer and a citizen agenda.

The trick is to provide a product which

is consumer friendly but also

environmentally sustainable. Detergent

tablets fulfil both criteria.’

Will added: ‘The success of detergent

tablets has reduced the volume of

detergent used in

Europe by

125,000 tonnes a

year. We have no

doubt that this

new unit dose

format represents an opportunity to

make further major contributions

towards the sustainable consumption

of detergents.’

Niall FitzGerald &

Antony Burgmans

Chairmen of Unilever

‘Design is the creative harmonic between culture and industry, technology and

consumers, and engineering and art.’ Dick Powell, Director, Seymour Powell

New products

must carry simple

propositions and

clear benefits

Tablets combine

customer

advantage with

environmental

benefits

Using tablets

has cut overall

detergent use

in Europe



27

It’s just as clear that such a shift in attitudes needs to be

adopted by businesses too. So how close is it to materialising?

Recent research by the Design Council suggests that British

businesses have some catching up to do with their European

counterparts when it comes to seeing sustainable design as

an opportunity to enhance competitiveness and build brand

values rather than a way of staying within regulations. While

only 3% of Swedish businesses, for instance, saw designing

for sustainability as a product development cost, 21% of

British companies saw it that way. In Sweden, 76% viewed it

as an investment, compared to only 38% in the UK. Of the

German businesses surveyed, 35% said they pursued

sustainability in the name of competitiveness, compared to

only 18% in the UK. A reactive attitude by UK businesses is

suggested by the fact that 36% said customer demand was

the main driver for sustainability.

Of course, figures like these may simply be a reflection not

so much of some in-built British reticence as the fact that

sustainability has been on the business agenda longer in

some European countries than in the UK. Nevertheless some

UK companies are already taking a proactive stance. Unilever’s

continued efforts to put sustainability at the heart of its work

prove that it’s possible to tackle environmental issues

positively and strategically and not regard them as a tiresome

obstacle. With guidance from external advisors such as BjornStigson, President of the World Business Council for

Sustainable Development, and Jonathon Porritt, Programme

Director of Forum for the Future, it has developed tools such

as Life Cycle Assessment which gauge the environmental

impact of products and help to spur innovation rather than

stifle profitability.

For others, ready access to information on the possibilities of

sustainable design would be a major step in the right direction.

Then they could start to integrate appropriate programmes

into their business strategy. In the UK too many companies

are unable to look beyond principle-specific issues such as

waste management and recyclable materials, rather than

taking a more holistic approach which would result in more

far-reaching, innovative solutions. If the issue is given an

appropriate priority at the beginning of the design process,

rather than tacked on as an afterthought, the chances are

that more breakthroughs will follow.

Taking a leaf from more progressive countries, exchanging

ideas, creating forums for debate and sharing information are

all positive measures that could and should be taken. Good

practice should be highlighted, encouraged and aided with help

from relevant industry and governmental bodies. Armed with

relevant information and perhaps even coaxed by incentives,

companies can put more energy and initiative into sustainable

strategy. Sustainability is something that most companies

realise will become ever-more important to the way they dobusiness. They just need the will and necessary tools to

integrate it into their corporate culture.

It’s estimated that 25% of vacuum cleaners, 60% of stereo systems and an

incredible 90% of PCs still function perfectly well when people decide to get rid

of them. It’s clear that if the highly commendable goals of sustainable living

and energy conservation are to be met, a sea change in consumer attitudes

and behaviour needs to be initiated.

ADVICE 6 ENVIRONMENT & SUSTAINABILITY



Duchy Originals is the organic food brand established by The Prince of Wales in 1990.

This followed the establishment of a 450-acre organic farm on the estate at Highgrove

in the mid-1980s. By the early 1990s, the estate was producing sufficient crops to

turn them into commercial products, and this led to the idea of establishing a food

brand which would actively encourage the establishment of more organic farming and

food production. A secondary objective was to raise money for charity, namely The

Prince of Wales’s Charitable Foundation.

FACT BOX

COMPANY Duchy Originals

MANAGING DIRECTOR Belinda Gooding

COMPANY SIZE Seven employees

PRODUCTS & SERVICES Organic food and drink

SALES - 2000 £12 million

CHARITY DONATION - £1.3 million

1999-2001

EXPORT MARKETS USA, Germany, Japan

WEBSITE www.duchyoriginals.com

28

STORY 7 DUCHY ORIGINALS

THE ROYAL BISCUIT WITHAN ORGANIC MESSAGE

Duchy Originals now has a strongly

branded range of organic food products

that sets out to persuade the publicthat sustainably produced comestibles

are also very good to eat.

According to Fiona Gately, PR and

Communications Manager, Duchy

Originals products exemplify what organic

farming is about. ‘We launched the brand

in 1992 with Oaten Biscuits made with

Highgrove wheat and oats. They were

attractively packaged with a printedexplanation of the wheat-growing and

manufacturing process.’

The original biscuit took about 18 months

to develop in partnership with Walkers

Shortbread and now all Duchy Originals

products are produced under licence.

The source of the raw materials is also

more diversified, although much stillcomes from Highgrove, including the

recently launched Duchy Originals Organic

Milk from the farm’s Ayrshire herd.

Despite the proselytising motive behind

the launch of Duchy Originals, the

business is run onstrictly commercial

lines. Costs are

kept to a minimum

through the

licensing structure,

enabling the firm

to be run by a small core team. This

team handles sales, marketing and

new product development, while

manufacturing and distribution arehandled by the licensees.

The company spends no money on

advertising, so depends entirely on

in-store promotional activity, public

relations and high quality packaging to

develop brand awareness and tempt

new customers.

Fiona Gately emphasises that packaging

is the key to the brand. ‘Packaging has

to tell people what the brand and the

Combining tasty

food with sound

business and a

pro-organic

message



29

product are about, so we rely heavily on

good design. A couple of years ago we

needed to develop a consistent design

to give us a clear brand identity across

a growing product range. Being organic,our products most often sit alongside

the supermarket’s own label equivalent.

The trend towards merchandising organic

foods within the product category,

rather than in organic blocks, means

that the products are increasingly sold

beside mainstream brands as well.

They therefore need to stand out and

compete on the shelf.’

Customer research is important. Gately

adds: ‘Research shows that people will

come to the brand

because they know

the connection.

A lot of people

first buy the

products because they are aware of

The Prince of Wales’s views in theorganic and environmental fields, and

it does help that many customers like

the fact that the profits go to charity.

However, customers will only make

repeat purchases if they like the products

as much as the principles behind them.

‘But perhaps most importantly, Duchy

Originals is about innovation. While the

products may seem traditional, there is

always something different - an ingredient

or a process - that is not available in

other products. The objective of the

brand is to deliver something new to the

sector and each product has to have its

own identity. A question The Prince of

Wales always asks is “Is it original?’’’

A great effort is also being made to

encourage other farmers within the Duchy

of Cornwall estate

to convert to

organic farming, to

provide a potential

source of organic

raw materials for

the future. At the same time, overseas

links are being set up to ensure a

sustainable and reliable source of crops,

such as organic cocoa and ginger, which

cannot be grown in the UK.

Although products are exported to the

USA, Japan and Germany, Duchy

Originals is concentrating its efforts on

the home market. Judging from therapid growth in sales to £12 million,

and the brand’s presence in Tesco,

Sainsbury’s, Waitrose and Safeway, in

addition to specialist stores all over the

UK, this seems to be working well.

Furthermore, The Prince of Wales’s

Charitable Foundation has received a

donation this year of £580,000 out of

Duchy Originals’ profits, an amount

which the company aims to boost to

£1 million within the next five years.

‘One of the missions of The Prince of Wales’s organic food brand is to persuade

the British public that organic farming is vital to the long-term sustainability of

the planet and good use of design is helping to achieve that aim.’

Fiona Gately, PR and Communications Manager, Duchy Originals

Branding conveys

tradition and

innovation

Farmers are

being encouraged

to grow

organically



30



31

But they’re missing the point. The scope and potential of design

within a business context is far reaching - among other things, it

can contribute new ideas and approaches, make your business

processes more effective, offer knowledge and expertise in

relevant areas, and improve strategic planning and thinking.

Of course you can pick and choose from these various offerings

- you may need one, a combination or all of them. It’s also worth

remembering that in the longer term, good design solutions

can have a tangible effect on profit margins, customer relationsand the perception of your brand. Design may not come cheap,

but the savings and benefits it can achieve easily outstrip

initial costs.

Once you’ve decided to invest in design, you’ll need to decide

what type of agency is most appropriate to your requirements.

There are many different outlooks and set-ups and you’ll find

that professional charges vary considerably depending on

location, specialism and experience.

Whichever designer you decide to hire, you will need to supply

a design brief and an indication of the budget you will be

making available.

Larger, multi-disciplinary agencies offer a ‘one-stop shop’,

providing a holistic approach and integrating design skills and

expertise in a number of different areas. This type of agency,

for example, could tackle an integrated response to a brief

combining contributions from hardware and software designers,

design psychologists and researchers. They can see a project

through from start to finish, commencing with research, moving

through to concept development, and then on to testing and

engineering of the product or service.

But you can expect to pay handsomely for this array of skill sets

as these agencies represent the upper end of the market.

Alternatively, you could employ a single-discipline agency, which

specialises in one particular area and can deliver focused,quality expertise. This type of agency can, where necessary,

bring in people with other skills through its network of contacts.

Finally, you could take a chance on a raw young designer, just

starting out in their career, from whom you can expect inspiring,

perhaps even provocative work. On the other hand, you’ll

probably have to provide more input yourself and exercise a

greater level of control.

This is a general guide - the main point is to consider exactly

what you need and cut your cloth accordingly.

No one likes spending money if they don’t have to. That’s not only sound

business sense, it’s human nature. And it’s also one of the underlying

(if misguided) reasons that companies are reluctant to invest in design -

many feel it’s an unnecessary, not to mention hefty, expense.

ADVICE 7 DESIGN COSTS



Every time you turn on the television, there seems to be another programme about

home or garden improvements. This has led to an increase in demand for powertools, but consumer trends are changing and there is a need for a constant flow of

innovative products. That is why market leader Black & Decker places paramount

importance on new product design and development.

FACT BOX

COMPANY Black & Decker

CHIEF EXECUTIVE Nolan D Archibald

Chairman, President

and CEO (US)

PRESIDENT Ian R Carter

President - Europe

Power Tools and

Accessories group

PRODUCTS & SERVICES Consumer Tools, DIY

Divisions: Consumer

power tools, outdoor,

cleaning, accessories


(worldwide)


(worldwide)

OPERATINGPROFIT- 2000 Net earnings

$282 million

WEBSITES

www.blackanddecker.com (Tools and accessories)

www.dewalt.com (Dewalt tools)www.bdk.com (Corporate information)

32

STORY 8 BLACK & DECKER

THE POWER-TOOL BUSINESSDESIGNED TO SUCCEED

All of Black & Decker’s businesses have

established a reputation for product

innovation, quality, design and value.The company’s Consumer Power Tool

division sells the brand-leading range

of drills, jigsaws

and sanders as

well as garden

items such as

hedge trimmers

and lawnmowers,

and the hugely successful Dustbuster

hand-held vacuum cleaner.

Product design and development are

carried out by a number of strategically

sited global design centres. The second

largest of these is based in the North

East of England, employing more than

100 personnel.

Where possible, Black & Decker will seek

global design solutions, but Europeans,

for example, generally require morecompact products than Americans

because their homes and gardens tend

to be smaller.

Danny Bone, Innovation Manager,

places great importance on the ‘Three

As’ - Attitude, Ability and Awareness.

‘As designers, we must have a can-do

attitude. The moment people go into

negative mode they’re not looking for

the best solution. By ability, I mean the

ability to allocate sufficient time for

development and planning. Awareness

and understanding of what’s around

you is the third vital attribute of a

good designer.’

A constant flow

of innovative

products for

changing markets



33

‘New products introduced within the past

three years accounted for an impressive

one third of our total sales in 2000’ Nolan D Archibald, Chairman, President and CEO,

Black & Decker, Annual Report 2000

Quattro concept

ID sketches

Nigel Robson



Emerging Consumer

Needs & Opportunities

Design Centre

Creativity

B&D Strategy

Brand ImageInitial

ConceptsInventors

External Technologies

Suppliers

Universities Application of new/

new to us technology

‘Milestone’

Design &

Implementation

Process

34

An example of Black & Decker’s

innovative approach was the launch of

the Quattro. During the mid 1990s the

company’s Multisander had proved to be

very successful. Its multifunctionality had

dramatically increased both its perceivedand real value with commensurate

financial benefits. This led the business

to consider what the effect may be if

multifunctionality were applied to the

business’s core product range. Within

two weeks of applying the three As to

this challenge a concept prototype of

a power tool capable of drilling,

screwdriving, sanding and sawing had

been created and demonstrated.

Bone believes it is essential to show a

working prototype. It gives concepts,

particularly in new business areas, a

credibility that can be readily understood

and communicated throughout the

business. The

innovation process

is aimed at

translating concept

ideas, derived

from insights into consumer needs, into

reality. Industrial design further enhances

the process by ensuring the finished

article exhibits a ‘must-have’ image

reflecting brand values.

Creative design is a distillation over

time of many ideas. These initial ideascan come from anyone within, or even

external to, the business. The role of the

Innovation Group is to help prioritise

and incubate such ideas into credible

business opportunities.

In the case of the Quattro, the concept

progressed quickly through the business

and the seven-strong project team

successfully launched the product within

17 months of its inception. As Bone

puts it: ‘It began as a ten-minute video

conference and ended up as a multi-

million dollar product.’

The result of this approach to design

and innovation is that Black & Decker

is a global leader

in its sector with

a year 2000

turnover topping

$4.5 billion. And

its par ticular

success with first-time ‘DIY-ers’, including women, means

its customer base looks very secure.

Danny Bone

Innovation Manager

Satisfying The Corporate Need

Black & Decker Design Process

‘Because new products stimulate retailer and consumer interest, build consumer

demand, contribute to market share growth, and represent a vital opportunity to

increase profit margins, our new product strength is especially impor tant during

periods of economic weakness.’ Black & Decker, Annual Report 2000

Industrial design

gives products a

must-have quality

Creative design

distills ideas

from within

and beyond

the company



Not a bit of it. As Danny Bone, Innovation Manager at Black &

Decker, recalls: ‘It’s often better to ask for forgiveness than

permission. If you believe a concept will work, try it, you will

learn from the experience. There is very little to lose and

everything to gain.’ There’s probably a life lesson in there

somewhere, but it makes sound business sense too - if you

don’t stick your neck out from time to time, you’ll never

produce anything remotely different and there’ll be nothing to

set you apart from the competition.

He points to the need for an open mind too. The Black & Decker

Workmate, submitted by an external inventor, was initially

turned down by the company, but put into production later

after the decision was reviewed. The time might not be right

for your particular creation, but perhaps its time will come.

Product design has been described as adapting new technology to

the application of innovative thinking. Undoubtedly, an in-depth

knowledge of relevant manufacturing processes, technologies

and materials, as well as the market you are designing for, is

critical. Adding that little unexpected twist to your product is the

magical added extra. But successful design is also pragmatic

design. It should always be able to deliver efficient manufacturing

- that is, make sure that the product is made cost-effectively

for its specifications within set timescales.

Teamwork is an essential part of the design process.

Manufacturers, suppliers, and if possible the end-user, should

work closely with designers to ensure a quality product and

should be involved right from the start of the design process.

Up to 80% of a product’s manufacturing costs are committed

in the early stages - if they are managed effectively, you

should reap the rewards later.

A realistic design concept such as a working prototype made

from the correct materials will help iron out niggles before themachines start rolling and will smooth discussions between

design and production. Refining your manufacturing plans

alongside your product development gives you viable

production options and reduces the time it takes to move

from concept phase into production.

At Black & Decker, the design process for the Quattro power

tool was unique in that its start point was clearly defined.

This, however, is quite rare as the start point for most

projects is difficult to define precisely.

Numerous concepts and ideas are generated in response to

perceived and real customer needs. The innovation process

helps to define credibly what the future product may be. The

trick is to provide solutions to genuine customer needs before

the customer is even aware of those needs. Doing this helps

businesses lead markets with innovative products that

reinforce and enhance brand value.

You only have to look at the success of the Apple iMac to see how radical, brave

product design can galvanise a company’s fortunes. This type of design requires original

creative thinking, gutsy self-belief and determination, and perhaps just a touch of

inspiration. But this is the glamorous, aspirational end of product design, isn’t it -

surely these kinds of criteria aren’t applicable to more mundane, everyday items?

ADVICE 8 PRODUCT DESIGN

35



When Swedish furniture retailer IKEA first appeared on the British landscape in

1987, it offered a completely new concept. Well designed furniture and household

products - although in many ways unfamiliar to the UK market - soon caught on

because quality was good, prices were low and the self-assembly drive-away offering

reduced the need for deliveries.

36

STORY 9 IKEA

DESIGN ACROSS THE BUSINESS,PRODUCTS, PROCESSES ANDADVERTISING

Since IKEA was founded in Sweden in

1951, it has been driven by the pursuit

of a single ideal: well designed products

at low prices.

IKEA bases its design and new product

policy on the customer feedback it

receives from its

locally-based sales

and marketing

operations

throughout theworld. Thus any product modifications

or new product ideas are subject to a

carefully thought-out operation from

original design concept and product

development to the selection of

suppliers, distribution to the stores and

then to customers - mainly through

take-home flat packs. Developing or

modifying products at IKEA is a blend

of co-operation, collaboration and

discussion between designers, product

developers, purchasers and suppliers.

A key element in the design of all IKEA

products is the need to minimise

material waste in order to keep costs

down. Therefore design has to be

functional and fit in with existing

production methods and the finished

products must be packaged in such a

way as to fit onto Euro pallets. Most

importantly of all, the majority of

products, with obvious exceptions such

as upholstered sofas, must be designed

for flat-pack distribution so that they canbe easily stored and then transported

in the average car. Furthermore, they

must be easy to self-assemble when

the customer gets them home.

IKEA believes in close collaboration with

its manufacturers. Thus its ‘co-workers’

regularly visit suppliers all over the

world to negotiate prices, monitor

production and carry out quality controls

and inspections.

Anders Dahlvig

President

Hans Gydell

Vice-President

Feedback and

collaboration

guide design



FACT BOX

COMPANY IKEA

PRESIDENT Anders Dahlvig

VICE-PRESIDENT Hans Gydell

MANAGING DIRECTOR Goran Nilsson

UK STORES

UK ADVERTISING Frances Evans

MANAGER

COMPANY SIZE 58,000 employees

PRODUCTS & SERVICES Home furnishing

products

STORES 139 in 22 countries

SUPPLIERS 1960 in 53 countries

TURNOVER BREAKDOWN Europe 80% (UK 13%)

North America 17%

Asia 3%

TURNOVER 2000 $8.5 billion

WEBSITE www.ikea.com

37

IKEA is design led and many of its

products are radically different from its

competitors’, yet its retail formula is

hard-edged. It is based in seven areas,

which are all designed for simplicity and

efficiency. They can be summarisedas follows:

• Product development IKEA is a

production company. Its operations

are a balance between design, function,

environmental sensitivity and a low price

• Suppliers new products are made with

good materials from the best suppliers,

backed by well designed supply chain

management systems

• Purchasing ‘co-workers’ work closely

with the suppliers to negotiate prices,

monitor production, and carry out

quality controls and inspections

• Distribution a vital piece of the low

price puzzle. Well designed flat packed

products contribute to keeping storage

and transport costs low

• Stores are simple, well designed, cost

effective and easy to navigate

• Customers contribute to creating a low

price by choosing to collect, take home

and assemble their goods

• Advertising, though IKEA offers a

defined range of products, advertising

differs from country to country

While the British have always liked IKEA’slow prices and take-away operation, there

has always been some resistance to

some of the Swedish retailer’s more

modernistic designs. It thus took some

years before the UK was won over to

IKEA but sales were boosted in the mid-

1990s by a tongue-in-cheek advertising

campaign developed by American TVCommercial Director Mark Tiedermann,

with the strapline ‘Chuck out your Chintz’.

The strategy was to challenge people’s

expectations and to make them question

their taste without offending them. The

commercials went on air in the last throes

of the Major Government and aimed to

tune in to the perceived social and

cultural changes in Britain at the time.

Research showed that when the

commercials first went out, two-thirds

of all IKEA visitors were female and

women took 90% of purchasing

decisions. The research also showed that

men were happier than women to live in

the minimal, functional environment

that IKEA-style encouraged. The initialcampaign raised awareness of the IKEA

brand from 39% to 63% in the stores’

catchment areas.

By last year IKEA had ten stores in

Great Britain, which has now become

the company’s second largest market.

However judging from the number of

conventional furniture warehouses that

still stand proud along our arterial roads,there are still plenty more potential

customers to be won over.

‘Design is 98% commonsense and 2% that magic ingredient called

aesthetics and sometimes style.’

Sir Terence Conran, designer, restaurateur, retailer



38

‘We will achieve the IKEA vision by offering a wide range

of well designed, functional home furnishing products at

prices so low that as many people as possible will be

able to afford them.’ Anders Dahlvig, President, IKEA



39

To reap some of these potential rewards, find out how design

is currently being used within your organisation. Everything is

designed, though not necessarily with a coherent focus. You

need to make sure your company starts thinking about the

implications of design at the early stages of a project. A strategic

overview of design can both manage and co-ordinate the

activities of your business, with advantages of competitiveness

and efficiency.

Like any strategic aspect of your business, you need to be able

to evaluate what design has achieved for you on a particular

project by setting out targets and goals before you start, and

take a judgement as to whether these have been met when

the project is completed. It’s also worth considering the

broader picture, linking all the parts of your business that are

affected by design (marketing and customer relations as well

as product development, for example) and looking at how

each of these areas may have benefited.

Engaging with design techniques, methods and perspectives

adds value the whole way through the creative business

process. From the refinement and clear articulation of a

strategic vision, to identifying problems and coming up with

relevant solutions, to working through concepts, finding the

right emotional ergonomics and managing the development

process. Finally, it brings an added impetus to your marketing

drive and clarifies the branding of the finished goods.

At best, design can be used as a powerful instrument for

managing and co-ordinating how your business looks to its

customers as well as the way it communicates with them and,

most importantly, thinks about them. It’s also a tool for

helping you realise and evaluate future business, service and

product opportunities, and a way of maximising a company’s

potential to deliver useful, useable and desirable products

and services.

It’s always worth bearing in mind that strategic objectives are

unlikely to be delivered through investment in a single project.

A holistic approach, combined with a little patience, will always

yield more encouraging results - creating better business

processes through effective design is best thought of as an

ongoing initiative, involving a series of investments and

design-led programmes. These may be needed over a period

of time and might include your products and services, your

communication material and your working environment.

An awareness of the power and potential of design should be at the strategic heart

of any good business. Used intelligently and thoroughly, design can increase profits

and turnover and open new markets, as well as improve take-up and market share.

Softer benefits might include more solid relationships with your customer base and

suppliers, and fewer customer complaints.

ADVICE 9 STRATEGIC DESIGN



The competition in the healthcare market is probably among the fiercest in the world.

Smith & Nephew is one of the best known and respected brand names in the medical

field yet it is still driven by the need for constant innovation in order to remain one

step ahead of the field.

FACT BOX

COMPANY Smith & Nephew

CHIEF EXECUTIVE Chris topher O’Donne ll

MARKETING DIRECTOR Rory Gleadhill

Orthopaedics

COMPANY VALUES Per formance,

innovation, trust

PRODUCTS & SERVICES Healthcare

TURNOVER - 2000 £1.135 billion

TURNOVER - 1999 £1.120 billion

OPERATING PROFIT - £171.4 mill ion

2000

WEBSITE www.smith-nephew.com

40

STORY 10 SMITH & NEPHEW

NAILING THE COMPETITIONTHROUGH INNOVATION

Innovation is taken seriously throughout

the organisation, not least in the

boardroom. Chief Executive Christopher

O’Donnell believes ‘innovation is thelifeblood of a medical device company

like Smith & Nephew’.

Product development therefore sits at the

heart of profitability within the company,

backed up by its other core values, which

are performance, trust and innovation.

Product development is managed via a

stage-gate process, to ensure thatproducts will meet customers’ demands

and perform clinically. Market research,

stage one, defines the unmet needs of

Smith & Nephew’s

customers. Stage

two involves

research and

development

engineers working

in partnership with leading clinicians to

develop new products, as well as

innovative surgical techniques and

instrumentation designed for shortening

and improving patient recovery. Following

extensive design testing, stage three,the staged development process

concludes with limited clinical trials to

ensure that the products will perform

as designed.

Whenever possible, Smith & Nephew’s

R&D process seeks to develop platform

technologies on which a number of new

products can be produced. This strategy

maximises the return on the costlyinvestment involved in commercialising

implantable medical devices by building

on proven technologies and designs.

Smith & Nephew is particularly strong

in the orthopaedic sector and has been

recognised for its innovative designs in

intramedullary nails for many years.

Intramedullary nails are tubular metal

implants which are placed in the central

bone marrow canal of badly broken

Christopher O’Donnell

Chief Executive Product

development is

central to

profitability



41

bones. They are used when a traditional

plaster cast will not provide the necessary

level of mechanical

stability required

for predictable

healing. However

the company’s

world-renowned

product, the Russell-Taylor stainless

steel nailing system, now faces strong

competition from more recently

developed products.

Smith & Nephew recognised that it was

time for a new innovative approach to

counter the competition. With the

assistance of two world-renowned

surgeons, Dr Toney Russell and Dr RoySanders, the company developed TriGen,

a titanium nail system, with the goal of

simplifying the technique.

Since operating room charges are often

the most costly part of this treatment,

Smith & Nephew recognised the need

to reduce operating times. Reduction of

operating times is also critical to patient

recovery, in the instance of multipletraumatic injuries, and in particular the

case of serious motor vehicle accidents.

The TriGen nailing system is a major

advance in intramedullary nailing

technique and has been recognised by

five patents with two more pending. It

has significantly reduced the number of

instruments required to treat lower limb

fractures. It also makes it easier to

train the operating room staff, thereby

improving efficiency, in part by increasing

familiarity with the technique through

repetition. In addition, the TriGen nailing

system is colour-coded for instant

recognition of the correct components

for the implant system as well as

matching the correct instruments.

This also reduces the chances for

inadvertent mistakes that might

otherwise lead to wasted operating

room time and a potential increase of

patient trauma.

Rory Gleadhill, Marketing Director for all

orthopaedic trauma products, points

out that TriGen really makes life simple

for the surgeon. ‘The design allows

surgeons to treat fractures with justthree nail designs, compared with six or

seven nailing systems for the Russell-

Taylor product line.

In addition, the

surgeon now only

needs one

instrument set to

treat almost any

lower-extremity fracture. As well as

making surgery easier and reducing thecost of the procedure, the new design

causes less trauma and leads to a

better rate of patient recovery and

success.’ This is a highly customer and

patient- focused approach.

The product was launched into the US,

German and Japanese markets a year

ago and has been well received. It has

not yet been sold into the UK market,

although it is being evaluated.

‘Innovation is the lifeblood of a medical device company like Smith & Nephew.’

Christopher O’Donnell, Chief Executive, Smith & Nephew

Rory Gleadhill

Marketing Director,

Orthopaedics

Gleadhill believes that the Smith &

Nephew brand strength having been

built on trust, performance and

innovation makes the medical profession

more receptive to its developments

than to those of its less well

known competitors.

Clear brand

values are

attractive to

customers

Innovation cuts

operating time

and speeds

patient recovery



42

‘Design is not an add-on, but

ground level, base station thinking.’

Peter Crowley-Palmer, Principal Designer, Land Rover Group



43

There is, however, a compelling reason to apply design

techniques, methods and perspectives to every possible aspect

of your organisation. It’s a reason that makes every business

person sit up and take notice... namely, the bottom line.

In fact, if your company is prepared to embrace sound design

principles fully, it can expect to reap significant rewards.

These include increases in the take-up of services, better

products that enjoy a greater market share, fewer customer

complaints and less wastage on warranty repairs and returns.

These are the kinds of advantages that are a springboard to

the running of a healthy, profitable business.

Design can increase your profits in two major ways - by cutting

costs and improving margins. The best way to achieve cost-

cutting is to bring in design-for-manufacture (or implementation)

expertise from the very outset of a project. As for improving

your margins, you can add value to products or services bydesigning greater usability, heightened aesthetics or a more

engaging customer experience. And effective design,

particularly as far as products and graphics are concerned, is

a major source of differentiation in customer perception of

quality and brand value.

But if you want hard facts and figures, try this: In 1998, Fitch,

a large, well-respected international design consultancy quoted

on the Stock Exchange, conducted an experiment. It tracked

the share prices of a selection of its publicly quoted clients,back-dated over a five-year period. The results were staggering.

The shares, bundled into a fund, out-performed the Standard

& Poors 500 benchmark by a factor of nearly four. The fund

grew by an impressive 350%, while the rest of the market

averaged just 90%. Such figures at least suggest a link between

strong performance and a design-led approach.

In 1999, the Design Council conducted a further study. Here, the

FTSE-quoted clients of six top UK design consultancies were

monitored. For the purposes of the research, six hypothetical

funds were established - one for each of the consultancies as

well as a joint fund containing all of them. Significantly, all of

these funds out-performed the FTSE All-Share Index. While

individual funds were between 5% and 28% more profitable,

the joint fund proved 10 points more effective.

The fact that design isn’t just for blue-chip companies was

underlined by a similar exercise undertaken in 2000 with a

hypothetical fund based on the 31 FTSE-quoted companiesawarded Millennium Products status by the Design Council for

excellence in design and innovation. These companies included

relatively small businesses launched on to the market on the

basis of the product or service which won Millennium Product

status. The results were even more impressive, with the

Millennium Products companies out performing the FTSE

All-Share Index by up to 150% over a four-year period.

ADVICE 10 DESIGN - THE BUSINESS CASE

Because design initiatives are hard to measure in a directly quantifiable way,

many companies need convincing about their efficacy. They want hard evidence

before they commit time and money to something they perhaps feel is irrelevant

to their day-to-day working practices.

C RCO O



The internet has created a new breed of consumers who want to make their purchases

instantly via their computers and don’t want to be bothered with visiting shops or

making phone calls. The mortgage broker Charcol, formerly John Charcol and now

owned by Bradford & Bingley, spotted this trend in the late 1990s, so it set up an

internet mortgage service which would allow people to compare mortgages and apply

online. Up front, the service it designed is clearly customer-focused, while behind the

scenes the system also improves the company’s operational efficiency.

FACT BOX

COMPANY Charcol

CHIEF EXECUTIVE Toby Strauss

DIRECTOR SPECIAL Clive Kornitze r

PROJECTS

PRODUCTS & SERVICES Financial Services

AWARDS Mortgage Site of

The Year 2000

Microsoft Digital

Britain Award

OWNER Bradford & Bingley

Building Society

WEBSITE www.charcolonline.co.uk

44

STORY 11 CHARCOLONLINE

FIXING A MORTGAGE WITHOUTGOING ANYWHERE

Although Charcol had operated a website

like those of its competitors since 1996,it primarily offered mortgage information.

By the millennium, the company realised

that an interactive service would capture

a lot of business from beyond its

traditional client base.

CharcolOnline - a complete online

mortgage broking service - was launched

in November 1999. Since then, the

service has flourished, gaining Charcol

a larger market share and several

awards, including the Microsoft Digital

Britain award and the Mortgage Site of

the Year award.

Charcol employed both external

consultants and its own staff to design

the site. The result was an online tool

to enable potential clients to find amortgage tailored to their needs, go

through the entire application process

online and get a quick decision from the

mortgage provider. This has enabledCharcol to reach a new market sector.

Traditionally, its

clients wanted

advice on choosing

a mortgage. Now

the increased

capability of broking

services available on CharcolOnline

appeals to clients the company describes

as ‘more empowered, with a different

mindset’.

Recently, Bradford & Bingley decided it

wanted to provide an online investment

service. CharcolOnline was given the job

of developing an investment site for the

group. This was developed in close

co-operation with the regulatory

authorities and now offers an ISA andcash management account platform.

Broking services

appeal to

‘empowered’

clients

‘We would like our site to enable our clients to view all their finances in



45

The technical and visual design of the site

is client-led, and based on functionality

rather than gimmicks. To suit clients’

needs, the site is straightforward to

use and downloadsquickly. But most

importantly, it

does what clients

want it to: they

can go through the

complete process of applying for a

mortgage on the site, in most cases

with no additional paperwork or face to

face contact.

The site’s design also suited Charcol’s

business needs, which were to cut

down the amount of processing involved

in each mortgage transaction. Because

there is a lot of selection of products

and vetting of the clients involved in the

early stages of the online process, the

client is less likely to be refused a

mortgage by their chosen provider.

A ‘plug and play’ design has been used

which means that a module can be

removed or re-designed easily if it is not

meeting expectations. Things can

change fast, and the capabilities of the

site allow Charcol to remove products

which are no longer available and add

new ones quickly and easily.

Charcol is now looking to the future of its

site. Clive Kornitzer, Director of Special

Projects, predicts that the financial

products market will move towards a

more integrated approach. ‘We would likeour site to enable our clients to view all

of their finances in one place. Even where

we do not manage all their financial

affairs, we want our clients to be able to

view their current and deposit accounts,

as well as their mortgage and investments

through the site, move money around

and buy and sell equities. Although this

is a challenge, we feel that it is no less

possible than anything else that we

have achieved to date.’

Kornitzer does, however, sound a note of

caution for Charcol’s competitors. ‘It

takes longer, it costs more and it’s much

harder to develop

a site like ours

than we realised.

Having Charcol’sstrong brand and

over 25 years’ experience as an IFA

behind us is an integral part of

CharcolOnline’s success and the

results have proved all that hard work

was well worth it. We view our online

proposition as part of an integrated

bricks and clicks strategy. Our clients

value the ability to transact online in

the knowledge that face to face adviceis just a click away.’

Toby Strauss

Chief Executive,

CharcolOnline

Clive Kornitzer

Director of

Special Products,

CharcolOnline

We would like our site to enable our clients to view all their finances in

one place - even where we don’t manage all their affairs.’

Clive Kornitzer, Special Projects Director, CharcolOnline

Web design is

based on

functionality,

not gimmicks

Clients want to see

all their finances

in one place



46

‘Design is the creative force by which we realise our

hopes for a better environment.’ (the late) Jimmy Knapp



You’ll probably go for the brand you feel most empathy for.

You might have seen advertising which appealed to you. Your

friends might have bought one recently. You might like the

product’s image. What you’re doing is identifying with the softer,

emotional resonance of a brand. What does it say about you

that you own an Apple iBook rather than a Sony Viao PC? That

you prefer Nike to Adidas trainers? That you drink Buxton mineral

water rather than Evian? That you’ve plumped for an Orange

mobile phone as opposed to one from Virgin? They’re subtlesignifiers, but consciously or subconsciously they say something

about you, your choices, and the kind of person you are.

It’s the role of marketing, working in tandem with design, to

create desirable auras around brands. Together with market

research, marketing and design are key strategic components of

business which have a significant mutual dependence. All three

are concerned with connecting to customers and determining

the look and feel, features, functionality and appeal of a

service or product range. They are collectively responsible for

reaching out and touching the consumer, so a close relationship

and a shared strategic vision is vital to market success.

The aim of market research and design is to find out what really

makes consumers tick. To find out what appeals to them and

why. Quantitative market research tends to rely on results

collated from hundreds of questionnaires. Qualitative market

research is more in-depth, using controlled interviews with

individuals or small demographically differentiated groups to

eke out attitudes and opinions. Design research can, in

addition, help to discover customers’ unexpressed needs

because it is not predicated solely on existing knowledge.

These findings may then be filtered through into design

concepts and product planning.

Both marketing and design play a pivotal role in product

planning. Whether you’re involved in the design of a financial

service, a website or a machine tool, you need to bring

together the same basic elements. Firstly, the needs of the

end-user within the context of the market. Then, your company’s

resources - these may include technology, manufacturing or IT.

Finally, your corporate vision and strategic objectives. These

fundamental parameters will define your product.

Valid, intelligent marketing should be able to express eloquently

the ‘soul’ of the product. It should use elements unearthed

during the research and design phases of the production

process to entice and delight potential customers. In other

words, it should take what’s already there and build a credible

story around it. And if it’s a story people want to hear, they’ll

buy your product rather than your competitor’s.

Two products. They do exactly the same thing just as well as each

other. They look and feel similar. They are identically priced. As a

consumer, how do you choose between them?

ADVICE 11 CONNECTING DESIGN & MARKETING

47



48

CONTACTS

Other useful websites:

DTI/Design Council

Living Innovation website

www.livinginnovation.org.uk

DTI Future and Innovation Unit

www.innovation.gov.uk

Design Business Association

www.dba.org.uk

Centre for Sustainable Design

www.cfsd.org.uk

Engineering and Technology Board

www.etechb.co.uk

Patent Office

www.patent.gov.uk

Small Business Service

www.sbs.gov.uk

Trade Partners UK

www.tradepartners.gov.uk

UK online for business

www.ukonlineforbusiness.gov.uk

Fit for the Future

www.fitforthefuture.org.uk

Design Directory

www.designdirectory.org

Design Council

www.designcouncil.org.uk

CBI

www.cbi.org.uk



Publication Team

Project Manager: Paul Sykes, Design Council

Contribution: Dr Tim Bradshaw, CBI

Design: Heard Design

Copy: Mattison PR



The Design Council’s purpose

is ‘to inspire and enable the

best use of design by the UK,

in the world context, to improve

prosperity and well-being’.

Design Council

34 Bow Street

London

WC2E 7DL

United Kingdom

Phone +44 (0)20 7420 5200

Fax +44 (0)20 7420 5300

www.designcouncil.org.uk

[email protected]

In partnership with:

Confederation of British Industry

Centre Point

103 New Oxford Street

London WC1A 1DU

United Kingdom

Phone +44 (0)20 7395 8071

Fax +44 (0)20 7497 3646

www.cbi.org.uk

[email protected]

March 2002

Published by the Design Council

Registered charity no. 272099© 2002 The Design Council

ISBN 1-904335-00-4

design advantage

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