Print Email Facebook Twitter Fulfilling Brand Aspirations with Sustainability - Bruynzeel Home Products Title Fulfilling Brand Aspirations with Sustainability - Bruynzeel Home Products Author Dam, J.C. Contributor Santema, S.C. (mentor) Wever, R. (mentor) Van Leeuwen, R.J. (mentor) Faculty Industrial Design Engineering Department Product Innovation Management Date 2012-04-18 Abstract Introduction The central question in this report is: How can Bruynzeel successfully integrate sustainability in its business? Sustainability is generally getting more attention and Bruynzeel’s customers (DIY-chains and expert-dealers) sometimes take inventory of sustainable products or start other sustainable initiatives. Bruynzeel now wants to know how sustainability can be integrated in their business so it can contribute to the company’s results. Integrating sustainability should lead to positive results rather than lead to losses. Three research subjects have been the foundation for composing an advice: sustainability, Bruynzeel and the context of Bruynzeel. Sustainability What is sustainability? The most used interpretation of sustainable development is that from the Brundtlandt commission (1987): a “development that meets the needs of the present without compromising the ability of future generations to meet their own needs”. This general definition needs an interpretation for Bruynzeel. Bruynzeel must realize that sustainability is not an attached subject to the company and is time consuming and loss-making. Sustainability is a balance between people, planet and profit. Profit can only be realized on the condition of people and planet. The balance requires a full integration of sustainability, only than can sustainability contribute to profits. Concerning sustainable results, sustainable development should be regarded as making small steps in the right direction that are relative improvements of a certain situation. Sustainability implementation programs have to be tailor-made for each company and each situation, there is no general solution or strategy on how to implement sustainability successfully. It is a combination of the right elements and circumstances. First Bruynzeel need to be clear and of the same mind on the motivation why sustainability has to be integrated. That is a determining factor in finding the right content but also in being successful with sustainability. Than, it must become clear what the steps are that Bruynzeel makes if it applies sustainability. The combination of the SWOT-elements form the basis for a strategy in which sustainability adds value to the company. Bruynzeel The strongest points of Bruynzeel are: its brand name, the expertise in developing and selling quality sanitary and fly-screen products and long relationships with DIY-chains. Its weakest points are an illogical product portfolio, a too little brand awareness of Bruynzeel as a sanitary brand and the lack of formal innovation and product development processes. A research to the motivations for sustainability reveals that there is no agreement at this moment on an ambition level for sustainability. The main drawbacks are priority and the business perspectives of sustainability. The drawbacks are the result of a wrong interpretation of sustainability. The strategy should respond to these counter arguments and reveal a right interpretation of sustainability. Context Bruynzeel possesses a modest position in its context and sustainability does not play a big role in it. The company is too small to put serious pressure on suppliers. Customers of Bruynzeel are few, big and able to choose from multiple different suppliers. DIY-chains raised the bargaining power on their suppliers last year by applying tenders on product categories. Suppliers like Bruynzeel are required to offer additional value and to show vision on product categories in the DIY-chains. Besides that the pressure to lower product prices is enormous. Sustainability does not play a big role in the context of Bruynzeel. Especially in the specific product categories of Bruynzeel sustainability is hardly an issue. Sustainable initiatives of Bruynzeel’s customers are very accessible and focus on compliance, responsibility and brand image. The pressure on Bruynzeel to integrate sustainability is therefore relatively low. It can be expected that coming years Bruynzeel satisfies customer’s sustainability requirements with applying certified wood and applying for BSCI (guidelines for suppliers concerning mainly human-rights and working conditions). However, several stakeholders of Bruynzeel wonder why Bruynzeel is not already engaged with sustainability as it belongs to an A-brand to respond to trends and developments. It can be noticed that many other A-brands are engaged with sustainability and use it as a differentiation tool to respond to the increasing demand to sustainable products, but also to show innovativeness and foresight and to create differentiation. Strategic advice The best way for Bruynzeel to integrate sustainability is to incorporate it in an A-brand strategy. A strategy that focuses on the brand Bruynzeel and the innovative character of the brand. It lets Bruynzeel fulfil to its A-brand aspirations. With this strategy, Bruynzeel becomes a front runner with new innovations and developments and gets a leading role on the markets and achieves a strong differentiation from competition. Besides, Bruynzeel acquires a clear and distinct brand image. People confronted with Bruynzeel should automatically relate the brand to high-quality and innovative sanitary products. To achieve this two subjects need to be adjusted and improved: Innovation and Communication. 1. Innovation If Bruynzeel extends the innovation scope from specific products to the bathroom as a whole, it meets the expectations of an A-brand much better. An A-brand is expected to be innovative, a focus on the bathroom as a whole creates a foundation for bathroom innovations rather than a focus on specific bathroom products does. Innovations of Bruynzeel than have to be categorized in three subjects: Technology, Experience and Sustainability. Basically every new innovation fits one of these categories, but the distinction provides possibilities for a clear brand position towards consumers. Besides, it makes the innovation processes of Bruynzeel more convenient. Technology With technology, Bruynzeel is able to warrant quality and to follow / setup new technological developments. New production processes, but also the application of audiovisual products fit in this subject. Experience The extension of innovation focus to the bathroom as a whole includes an increased emphasis on the experience and perception of a bathroom by users. Colours, rituals, functionality, materials, light and more belong to this subject. Collaboration with other suppliers to realize a wide range of product offers is an important part of this innovation field. Sustainability Sustainability has become one of the three innovation fields and this is how sustainability can optimally contribute to the company’s results. Basically, sustainability imply two implementations: The basic variant of sustainability that is a response to sustainable developments from the context and implies accreditation for FSC/PEFC, the appliance for BSCI guidelines. DIY-chains regard this together with service, reliability and responsibility as sustainability. This way of interpreting sustainability will become more and more a license to operate and is not a differentiation tool. The extended implementation of sustainability implies products and new innovations. This form of sustainability opens up a new solution space for products, creates differentiation from competition and enriches the brand image. Bruynzeel should not only apply for a basic variant of sustainability but make optimally use of it and use it as a differentiation tool. The value of sustainability in this strategy is an intangible value. Sustainability raises the brand image of Bruynzeel and innovative sustainable product concepts prove brand ambitions and create differentiation. Together with the innovations in the two other fields, a strong brand is positioned on the market. 2. Communication Improved communication programs respond to the weak brand awareness of Bruynzeel as a sanitary brand. The brand Bruynzeel is generally well-known, however Bruynzeel is barely known as a sanitary brand. Higher budgets are part of a better brand communication towards customers and consumers. Two results are achieved if Bruynzeel uses an approach in which every product launch is accompanied with an extensive advertising campaign that addresses both the brand and the specific product. The first result is that the brand Bruynzeel is known for sanitary products. The second result is the association of the sanitary brand Bruynzeel with innovative products and increased attention to each innovation. The extended marketing programs also contain an improvement of the brand visibility in DIY-stores. The desired effect is that consumers, from a distance, recognize Bruynzeel products between other products. Conclusion The A-brand strategy elaborates on strengths of Bruynzeel by making optimally use of the department product development which is a competitive feature compared to competitors. Several weak points of Bruynzeel are solved: First, the brand visibility increases and makes Bruynzeel a well-known brand of innovative sanitary products. Besides the portfolio and the innovation process on term will be more structured by consistently applying the innovation pattern. This strategy is also an answer to arguments against integrating sustainability. Exactly by addressing the urging subjects of differentiation and brand visibility the arguments against integrating sustainability are contradicted. In this way, incorporated in an A-brand strategy, the business perspectives of sustainability are positive and simultaneously the priority of it is proven. The biggest benefit of this strategy is achieving differentiation and offering additional value. This is a major threat from the market, but is responded with improved innovation and communication programs. In several years Bruynzeel will reach a major position on the markets and the company has grown due to a decent bathroom innovation program and increased marketing and advertising activities. Subject SustainabilitySustainable DevelopmentStrategyValue CreationBruynzeelBruynzeel Home Products To reference this document use: http://resolver.tudelft.nl/uuid:51b1ed83-c6c7-470d-823f-3aef7ef10b80 Access restriction Campus only Part of collection Student theses Document type master thesis Rights (c) 2012 Dam, J.C.