Case Study | 03 October 2024
Case Study on Low-Cost Countries Glass Shower Doors and Bathtubs
Posted by : Parul Atri
One of the major companies which is a leading manufacturer of kitchen and bathroom products, aims at expanding its sales of its export business by diversifying its product range of glass shower doors and bathtubs.
An overview:
An illustrious company from the U.S., with over 20 years of distinguished experience in manufacturing kitchen and bathroom products. The company endeavors to widen its turnover from exports by expanding its product offerings, such as glass shower doors and bathtubs. The company assessed that there are changing customer preferences and burgeoning worldwide demand for innovative bathroom solutions requiring a versatile product portfolio. The company’s vision encompassed two primary objectives:
- The company is willing to amplify its participation in several key international markets across various regions, garnering significant revenue and brand prominence.
- The company wants to cater to worldwide consumers and introduce eco-friendly, aesthetic-focused, and state-of-the-art bathroom solutions.
However, progressing from a traditional product line up to a worldwide, multifaceted, and competitive portfolio created substantial difficulties for the company. Due to the global uncertainties and evolving regulations, the company chose data backed transformation by joining hands with Research Nester to convert its vision into actionable results.
Aiming to achieve this, the firm faced 2 prominent challenges: cost constraints and branding issues. Branding issues appeared as the company is willing to position itself as a worldwide leader in advanced kitchen and bathroom solutions. Cost constraints arose from the prominent investment needed to source eco-friendly materials, scale manufacturing, and diversify the product range for launch in the international markets. To manage these obstacles, Research Netser implemented an all-encompassing framework.
- The company opted for a financial and operational optimization strategy and conducted a detailed cost-benefit analysis. This is to ensure the prolonged profitability of the novel product lines, such as bathtubs and glass shower doors. The study also conducted an analysis for regional pricing, supply chain efficiencies, and anticipated a 12-18% surge in export revenue over 5 years.
- Strategic market positioning assessed prominent international markets and extensively analyzed evolving consumer preferences for premium, smart, and cost-efficient solutions. for the kitchen and bathrooms. These insights were utilized for refining product design and marketing strategies for global brand recognition.
- Thirdly, it conducted supplier evaluation and materials innovation, scrutinizing over 185 suppliers based on the material quality, reliability, and sustainability standards, resulting in the selection of 6 strategic partners.
Product validation and performance benchmarking were also used for digital simulations and prototype testing to upgrade ergonomics, durability, and aesthetics. Feedback from various pilot markets and focus groups helped in forming iterative improvements, in advance of production and launch.
The Story
The company wanted to launch its previous and new products in low-cost countries, such as India, Turkey, Mexico, Brazil, Vietnam, and others. The company aims to augment its business growth by increasing the area for its export. The plan for launching new models of shower doors and bathtubs in these regions included-
- The company wants to launch new types of glasses, different types of shower doors, and bathtubs in various styles in low-cost countries
- They aim to expand their sales of the new products
- However, the lower budget of people of the region cannot compete with the high prices of bathtubs and shower doors, which was a huge obstacle for the company
For launching the new product and its export services in these regions, the company confided its trust in Research Nester, a top service provider and pioneer in consultation and marketing strategy research. With the help of Research Nester, the company launched exquisite bathtubs and glass shower doors in different varieties. In four months, the company found the best technology to make aesthetic yet sturdy shower enclosures. The company also became aware of the needs of the public in the region, which helped them broaden their product portfolio accordingly.
Our Solution:
Our Recommendations:
The price range of the company’s existing products was uneconomical for a huge share of the population, and it was impeding the company's sales. Research Nester provided the company with detailed research of the market by providing the preferences of the people and the expenditures they are willing to make on their bathroom aesthetics and needs. Moreover, 10 major competitors in the low-cost country’s glass shower doors and bathtubs market are thoroughly examined in the Research Nester report. The research gave the firm a thorough image of the market and identified the challenges that are expected to obstruct the new plan for the organization.
Future Growth Prospectus:
The Research Nester team forecasted the growth of the low-cost country’s glass shower doors and bathtubs market for the years 2023–2035 in its report, which helped the company expand its business. With the help of the information given by Research Nester, the company laid out strategies to launch its products in the market in collaboration with other major manufacturers of shower doors and bathtubs. The data from the Research Nester helped the company learn about the positions of other manufacturers and aided in the decision to form a partnership.
Challenges Faced
Managing the cost of the glass shower doors and bathtubs was a huge challenge, however, it was overcome by sourcing the raw material from local manufacturers in various regions. As a result, it significantly reduced the cost of the product.
Results
- The company discovered the ideal partnership for building and launching the new glass shower doors and bathtubs
- The company successfully started its export sales in different countries, including India, Vietnam, and Indonesia.
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