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This report contains analysis of the Danish
interior design brand House Doctor and how sustainable touch added to the
company image will affect. By improving company’s recognition, it will let to
reach new customer. In this report will be also presented operations and
efforts that they take in order to stay competitive and attractive for their
consumer. In addition, as well as current and future business and lifestyle
trends will be presented. House Doctor is already following many of the present
trends, however having focus on the main sustainable part of this report,
recommendations how to adopt to sustainability trend will be given.

 

Introduction

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Company House Doctor is a Danish retailer
of interior design goods, which was established in 2001 by three siblings – Rikke
Juhl Jensen, Gitte Juhl Capel and Klaus Juhl Pedersen. They are all very
creative and always believed in power of design, that beautiful and joyful
interior can signalize your better living. At the beginning, it was created
small company in Ikast, Denmark. Over the time, the business was becoming more
and more successful. Family trio gained more people to work with, people who
just as the owners, value beauty, Danish heritage, good design and family
relations.  Currently place of business
in Ikast in Mid- Jutland became Head Office of House Doctor brand. House Doctor
presently is successfully selling furniture and home interior goods worldwide.
The brand is also growing instantly creating new brands inside House Doctor
Group with new categories of products, like cosmetics and skincare products or
some of the food items. Brand effectively grows and progress by developing new
products constantly. However, to be able to reach future audience and business
trends, the company should take under consideration involving sustainable
strategy to their image, as it is one of the main focusses on the modern Danish
as well as global market.

 

Purpose

This report will be focused on Danish brand
House Doctor and how the new sustainable concept will be able to improve the
global recognition of the brand, create different vision of company and will
help to reach new group of customer. Furthermore, the report includes description
of Business Canvas Model currently and how the brand situation is right now and
will show how it is going to look like after implementing new sustainable
solution. Finally, there will be given a couple of recommendations for House
Doctor to the future, to achieve the best possible sustainable concept, which
will add a positive signification right after implementing a growth strategy
and will affect profitable company in the future.

 

Problem statement

How House Doctor can reach new customer
group and improve their image by implementing new brand with sustainable
products?

 

– Who is current target group of House
Doctor?

– What brands does HD already have?

– What are the business and lifestyle
trends on global, interior and handicraft market that require adaptation to the
market?

– How can the new line of products be
implemented?

– How investing in sustainability will
improve HD image?

 

 

Methodology

In order to solve the problem statement
which was mentioned above, some methods will be used. At the beginning brand’s
DNA will be developed through researching online, sources and articles. By presenting
House Doctor’s competitors will be possible to recognize the market. In
addition, research on current and upcoming as well as business and lifestyle
trends will be done, especially with focus on growing trend of sustainability
all over the world. Then will be presented theory of buying decision making in
order to develop buying pattern of House Doctor’s customer. Furthermore, there
will be added Business Canvas Model which will present current situation of the
brand and also will consist some new added values by implementing the new
strategy. To create a description of the brand’s customer group, will be
developed 2 current personas and also 2 future ones who will represent new,
wider customer group. Finally, taking previous information under consideration
all added values will be involved and SWOT analysis will be presented.

 

House
Doctor’s Design DNA

First and one the most important values is
having very strong family bonds. The company was established by three siblings
which has huge reaction for all of their decisions, working pattern and done
activities. They all are marked by artistic souls, which allows to treat whole
interior business very serious. Family values make them be able to work
together and share with all ideas in order to keep company on the right track.
It is also visible in the way that they work with employees. Everyone is
treated in a right way what is confirmed by implementing “Human Balanced
Project” which has huge positive impact on working environment. Next features
which define their design DNA are all the taken decisions across few last years
of existing company. The decision about creating wide product assortment, so
meeting needs of many potential consumers. Also, decision of producing
assortment with strongly visible Danish heritage. To keep them growing owners
decided to create brand like Meraki under House Doctor Group witch totally new
range of products. They also decided to connect themselves with several
different designers to add new value to the brand. Right now, whole company’s
“family” of around 100 people work every day on tracking new trends and
adapting them to their already existing style. Everything to create the best
outcome as possible.

 

House
Doctor Group’s brands

As House
Doctor states, they developed brands like Meraki which is 100% owned by House
Doctor, Nicolas Vahé and Monograph. Instead of launching skincare products,
office items or gourmet foods, the owners took decision to implement new
brands, with their own names and specialties. However, they still belong to
House Doctor Group. As CEO of the company Klaus Juhl Pedersen says, it was much
more cost-effective and profitable solution to launch new products. New brands
have huge contribute in a growth of the company, what resulted in 2016 selling
for over 300 million DKK. http://housedoctor.dk/house-doctor/showlab

 

Knowing fact, that those brands are very
good selling it is opportunity for the brand to implement another, more
sustainability group of products.

 

Competitors
analysis

Danish design is known all over the world.
It is valued by its excellent design, good quality and stable Scandinavian heritage.
Since House Doctor sells worldwide, the competition became bigger. On Danish market,
considering type of design and prince range, there are competitors like HAY,
Muuto, Ferm Living, That Nordic Feeling or Skagerak. Not many of those brands
have shipping outside Europe, what differentiate House Doctor. However, there
are existing retailers, who sell Danish interior design globally. Those are web
shops like Scandinavian Design Center. There is still an idea how to overtake
the most of competitors. By creating sustainable concept of the House Doctor
brand, they will start offer not only Danish design which whole world loves so
much, but also more environmental friendly feeling. That will make the company become
more outstanding and will leave the rest of other interior dealers behind.  

Trends

Trends
that House Doctor follows successfully

1.    
B2B

First of all it
is important to mention that House Doctor already follows successfully some of
the trends that will be very promising also in the future. The company decided
to choose Business-to-Business strategy. As they chose to become B2B their
customer are mostly resellers and companies. The B2B business is a slowly
rising great trend, so House Doctor chose the right path to follow. The Brand
sells in more than 90 countries all over the world, what makes it even easier
and more profitable for them to keep this strategy within their business.

2.    
Transparency

This is another
very important trend that House Doctor brand is already following. Transparency
in business requires informing customers about how the products is done and
about all the operational factors within producing and marketing the product.
People want to know exactly what are they buying before making purchase, to be
fully aware of history, key information and value that is hidden behind the
purchase. According to study by Label Insight : almost 94% of questioned
customers, stated that they were prefer to be loyal to the brand which offers
transparency and 73% answered that they were more likely to pay more for
products which are totally transparency. (https://www.entrepreneur.com/article/295739) House
Doctor currently offers showrooms where potential customers can gather and look
through the assortment. Showroom is full of products and assistants who are
ready to answer every asked question. The important thing is that the products
are placed like in natural environment, which means inspirational displays.
There are prepared rooms fully furnished and designed, what makes searching
easier and more pleasurable.

 

3.     Recurring revenue

This type of revenue is created when company sign a
contract with customer for a longer period of time, agreeing to spend certain
amount of money every month or few months. Then company can expect future
stable revenue from this contract. This is very popular and profitable trend to
follow. Recurring revenue makes a company being more stable and predictable
financially. House Doctor also successfully follows this pattern in cooperating
with their customers. They have very good ordering system (see: BMC model) that
allows them being organized and keep customer loyalty.

 

As
we see above, House Doctor follows many of current trends which is very
cost-effective for them as a brand.

 

Future
Business Trends that House Doctor should take under consideration

In this part of the report will be
explained presented prepositions of the trends that could be profitable for the
House Doctor’s company. The brand already follows most of the important trends
of 2017, however there is several trends more which could be implemented in
order to escalate their result.

 

Sustainability

Over the past few years the sustainability theme
was a headline of the most of as well fashion as lifestyle and interior brands.
Growing awareness about environment creates array of demands all over the
world, concerning every branch of activity. Sustainability became mega trend,
which means some major and very important movement in society. That shows
clearly it is a trend which has huge meaning for most of the present popularity
and customer segment too. Consumers search for identity. There is visible
increasing demand for sustainable and socially responsible products. Especially
this movement is visible in industrialized countries. The importance of this
trend is growing all around the world. Lately companies are facing with great
public pressure to improve their sustainability policies. Below it is attached chart
visualizing markets of special interest for fair trade home products:

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