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Customer Co-creation in Indesit Company


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Sarah e Caterina!.
La customer co-creation è il coinvolgimento diretto dei clienti (user e rivenditori) nella progettazione di nuovi prodotti. Qui sono stati riportati gli effetti dell'impiego della Customer co-creation su indesit

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Customer Co-creation in Indesit Company

  1. 1. 2,2<br />Customer co-creation <br />for the new products development <br />in the Home Appliances industry <br />20 minutes with Sarah Cirillo and Caterina Salvidio<br />Rome, 14th June 2011<br />
  2. 2. Co-designing a newwashingmachine<br />1<br />
  3. 3. Innovationisour business<br />2<br />Customer co-creation is the process by which new products are developed jointly by companies and their stakeholders and their consumers.<br />Since 2008 Indesit engages people as active co-creators of value to reach win more-win more transactions.<br />Indesit is the only one in its industry to use the Customer co-creation.<br />
  4. 4. The effectsofcustomer co-creation<br />3<br />- Differentiation<br />- Efficiences and speed<br /><ul><li>Risks, time and capital reduction
  5. 5. Competitive advantage</li></ul>- Growth and New opportunities<br />
  6. 6. Are customers enough qualified to design new products?<br />4<br />The customers’ competence is the final result of some changes, such as:<br /><ul><li>The Internet which has reduced a particular market failure, known as Information Asymmetry (Akerlof, Spence, Stiglitz)
  7. 7. The social networking and the speed of communication
  8. 8. The transformation from firms considered as a portfolio of business units, to an opened and networked firm, which is related with the context
  9. 9. The increase of customers’ awareness</li></li></ul><li>Market research Vs costumer co-creationM<br />5<br />Traditional marketing inquiries do not involve customers. <br />Playing an active role in the products’ design, customers can deliver a strategic amount of information and insights for firms. <br />
  10. 10. Why are customers able to create value for the firms?<br />6<br />The Customer satisfaction reached by innovation is Indesit’s strategic goal. <br />We are “obsessed” by the customers’ needs. <br />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. <br />Customers are perfect “problem creators”!<br />
  11. 11. Customer co-creation weakens Porters’ five forces<br />7<br />
  12. 12. SWOT ANALYSIS<br />8<br />STRENGTHS<br />WEAKNESSES<br />Client and user at the center<br />Emotional choices<br />Customer satisfaction<br />Products without market<br />
  13. 13. SWOT ANALYSIS<br />9<br />OPPORTUNITIES <br />THREATS<br />Increase in market share<br />Information flow<br />No patents<br />Improved relationship with clients and users<br />Difficulty in engineering process<br />
  14. 14. Potential gains from consumer co-creation<br />10<br />Thanks to consumer co-creation we expect our business to record significant gains in terms of:<br /><ul><li>Ebitda
  15. 15. Ebit
  16. 16. ROI</li></li></ul><li>Customer co-creation impact - 2012 FY preview<br />11<br />[€M, Change Vs. 2011]<br />Change<br />2012<br />2010<br />2009<br />Net Sales<br />2,879.2<br />2,613.0<br />+10.2%<br />EBITDA<br />309.8<br />259.5<br />+19.4%<br />10.8%<br />9.9%<br />% on sales<br />EBIT<br />183.8<br />118.6<br />+55.0%<br />6.4%<br />4.5%<br />% on sales<br />ROI<br />149.4<br />66.8<br />+123.5%<br />5.2%<br />2.6%<br />% on sales<br />
  17. 17. Our competitors<br />12<br />
  18. 18. Potential market share gains in EU<br />13<br />Market Share Units (%)<br />17,9%<br />13,1%<br />12,3%<br />8,9%<br />7,0%<br />3,9%<br />3,4%<br />2,7%<br />2,7%<br />2,6%<br />
  19. 19. On the costs side:<br />Design and planning costs will grow followingcustomer co-creation indications. <br />At the same time, the total effect on costs will decrease, thanks to a reduction in expenses connected to basic marketing researches and advertising.<br />14<br />
  20. 20. CONCLUSIONS<br />Higher brand awareness<br />Higher consumer satisfaction, regarding bothcustomers and users<br />Higher loyalty from ourcustomers<br />Weakening of Porter’s Five Forces <br />15<br />
  21. 21. 3<br />Any questions?<br />