This report discusses the concept of fiber board coffins on the Swedish market from the perspective of target costing as well as co-creation. The main method used to derive the empirical findings was a focus group. This report is the third report in a series where the product of fiber board coffins was developed from initial design stage to engineering phase and finally this business report.
Due to the shift from a company centric view to a customer centric view on the market place, companies need to adapt their strategies when launching a new product to make sure they offer an added value to the customer. Target costing considers the customer-centric view by setting a price first and then deriving the placement of costs. Distribution of costs is done by seeking the customer’s opinion and asking for what is important to them in the product. The report describes how the target price was set and costs distributed to reach a satisfactory product for both the client and the company.
Besides costs, consumer behavior and customer value influence how the product should be marketed. Two main areas influence the consumer when purchasing a product: macro, external, and micro, internal factors. It was found that the macro factors play an important role when setting boundaries to the product whereas the micro factors can be used to place the product and derive a unique selling proposition.
The consulted focus group showed clear results. The three most important factors in the purchase of a coffin are price, color and sustainability.
From all the insights mentioned above an advertisement of a catalogue was developed and the conclusion reflects the concept, how to market it, and what could be a motivation to purchase it.
Table of Contents
1. Introduction
1.2. Problem
1.3. The case company
1.4. Results from module 2-design and module 3-engineering
1.5. Purpose
2. Theory
2.1. Consumer behavior - consumerism
Macro consumerism
Micro consumerism
2.2. Co-creation
Co-creation as marketing research tool
Co-creation as marketing strategy
2.3. Target costing
Definition of the product
Quality Function Deployment
Setting the target selling price and target profit margin
Calculating allowable cost
3. Method
4. Empirical Findings
4.1. The funeral market in Sweden
Process from death to burial
4.2. Results from the module Methods at work - business
4.3. Empirical Findings from the focus group
Test focus group with students
Focus group with relevant customer
4.4. Empirical Findings from the Interview
5. Analysis
5.1. Changing market environment
External influences on the concept of fiber board coffins
Customer influences when making the purchase decision
5.2 Influence of co-creation on the product development to meet customer requirements
Marketing strategy and communication for the product
5.2. Cost model analysis
6. Conclusion and Reflection
6.1. Reflection design student
6.2. Reflection engineering students
Objectives & Research Topics
The primary objective of this report is to evaluate how target costing and co-creation mechanisms can be utilized to develop a profitable, market-ready fiber board coffin that meets contemporary customer requirements in the fluctuating Swedish funeral market.
- Application of target costing to align production costs with market-driven target pricing.
- Integration of co-creation strategies to involve customers directly in the product development process.
- Analysis of macro-environmental and micro-consumer influences on purchasing decisions.
- Investigation of material feasibility and sustainability in the context of funeral services.
- Development of effective marketing and communication channels for a sensitive product category.
Excerpt from the Book
5.2 Influence of co-creation on the product development to meet customer requirements
As described earlier, customers nowadays want to be involved in the product development process. The focus group delivered deep insights in what a potential customer is interested in: the price, the color and sustainability. During the focus group, the three participants discussed the concept. What they appreciate about it is that it's eco-friendly and cheaper than a wooden coffin. According to their previous experiences about funerals, they don't wish to spend too much money on the coffin, as it's not the more important piece of the ceremony and 85% of Swedish deceased persons choose cremation. The design of the coffin has been quite appreciated by the participants. It also was put emphasis on a traditional look and that the handles should be less “trivial”.
It also gave more insights which parts could be customizable, such as the color, surface treatment or the color of the leather. Therefore the final design has some parts that are unique and individual and some parts that will stay the same and can be prepared by The case company in advance.
This information was considered in further development and refined the design of the coffin, such as the handles. The modifications on the coffin aim to bring a more finished aspect to the product by adding details. What's more the handles are reworked to reduce the “trivial” look which can be disturbing for some customers. Finally, the wish is to get even closer to the company's range of products, the fiberboard coffin should be in line with the company's identity.
Summary of Chapters
1. Introduction: This chapter provides the background for the report, detailing the shift toward customer-centric strategies and the specific case of a traditional paper mill seeking to innovate through fiber board products.
2. Theory: This section establishes the theoretical framework, covering consumer behavior (macro/micro), the co-creation marketing method, and target costing as a model for cost management.
3. Method: This chapter describes the research approach, focusing on secondary research, focus groups, and interviews with funeral industry professionals.
4. Empirical Findings: This section presents collected data regarding the Swedish funeral market, including specific results from focus groups and interviews conducted with potential customers and industry experts.
5. Analysis: This chapter combines empirical data with theory to analyze market environment changes and the influence of co-creation, while providing a detailed cost model analysis for the product.
6. Conclusion and Reflection: This chapter summarizes the findings and provides reflections from both the design and engineering student teams regarding the development process and project outcomes.
Keywords
Target costing, co-creation, fiber board, Swedish funeral market, consumer behavior, product development, sustainability, cost model, market strategy, customer-centric, customization, cremation, funeral services, material feasibility, market research.
Frequently Asked Questions
What is the fundamental focus of this report?
This report investigates the development of fiber board coffins for the Swedish market, employing marketing and management accounting practices to ensure the product is both profitable and appealing to modern consumers.
What are the central thematic fields?
The work centers on customer-centric product development, sustainable material application, and cost management through target costing, set against the backdrop of the funeral industry.
What is the primary research question?
The study asks what insights can be derived from co-creation and target costing methods to successfully introduce fiber board coffins into the Swedish market.
Which scientific methods are utilized?
The research relies on secondary literature analysis, combined with primary qualitative data gathering through focus groups with potential end-users and expert interviews with funeral service providers.
What is covered in the main body?
The main body covers the theoretical framework of consumerism and co-creation, empirical research findings, an analysis of market influences, and a detailed cost-model breakdown for the fiber board product.
Which keywords define this work?
Key terms include target costing, co-creation, fiber board, sustainability, and consumer-centric product design within the funeral industry.
Why are fiber board coffins considered an innovation in Sweden?
They offer a sustainable, cost-effective alternative to traditional wooden coffins while aligning with modern preferences for cremation and customizable funeral arrangements.
How does the report address the sensitive nature of the topic?
The researchers conducted focus groups with individuals connected to each other to maintain a comfortable environment and used interview guides that focus on practical and logical aspects of the funeral process.
What role does target costing play in this project?
Target costing is used to define a retail price that is competitive at 400 EUR, dictating the allowable costs for materials and manufacturing to ensure the company remains profitable.
How do the authors differentiate between test and relevant focus groups?
The test focus group consisted of students who did not represent the target demographic, whereas the final focus group included relevant customers (a grandmother and her friends) to capture authentic perspectives on funeral planning.
- Citar trabajo
- Anna Lena Bischoff (Autor), 2016, Fiber board coffins on the Swedish funeral market. Target Costing and Co-Creation, Múnich, GRIN Verlag, https://www.grin.com/document/318998
