Fiber board coffins on the Swedish funeral market. Target Costing and Co-Creation

Term Paper (Advanced seminar) , 2016 , 50 Pages , Grade: 1,7

Business economics - Offline Marketing and Online Marketing

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.

Inhaltsverzeichnis (Table of Contents)

• Summary
• Introduction
  • Problem
  • The case company
  • Results from module 2-design and module 3-engineering
  • Purpose
• Theory
  • Consumer behavior - consumerism
    • Macro consumerism
    • Micro consumerism
  • Co-creation
  • Co-creation as marketing research tool
  • Co-creation as marketing strategy
  • Target costing
    • Definition of the product
    • Quality Function Deployment
    • Setting the target selling price and target profit margin
    • Calculating allowable cost
• Method
• Empirical Findings
  • The funeral market in Sweden
    • Process from death to burial
  • Results from the module Methods at work - business
  • Empirical Findings from the focus group
    • Test focus group with students
    • Focus group with relevant customer
  • Empirical Findings from the Interview
• Analysis
  • Changing market environment
    • External influences on the concept of fiber board coffins
    • Customer influences when making the purchase decision
  • Influence of co-creation on the product development to meet customer requirements
  • Marketing strategy and communication for the product
  • Cost model analysis
• Conclusion and Reflection
  • Reflection design student
  • Reflection engineering students

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This report focuses on the development of fiber board coffins on the Swedish market, examining the concept from the perspective of target costing and co-creation. The report investigates how to effectively market and cost a product that meets modern customer needs in a fluctuating market. Key themes explored include:

• The importance of customer-centricity in product development
• The application of target costing to ensure profitability and customer satisfaction
• The role of co-creation in understanding customer needs and developing a unique selling proposition
• The impact of macro and micro consumer factors on product development and marketing
• The development of a sustainable and innovative funeral solution

Zusammenfassung der Kapitel (Chapter Summaries)

The report begins by introducing the concept of fiber board coffins and the challenges of adapting to changing customer behavior. It then delves into the theoretical framework of consumer behavior, focusing on macro and micro consumerism, co-creation as a marketing tool and strategy, and target costing. Chapter 3 outlines the methodology used, while Chapter 4 presents the empirical findings from focus groups and interviews conducted with potential customers and industry stakeholders. Chapter 5 analyzes the findings, exploring the changing market environment, the influence of co-creation on product development, and the development of a cost model. Finally, the report concludes with reflections on the project from the design and engineering students involved.

Schlüsselwörter (Keywords)

The report focuses on the development of fiber board coffins, incorporating themes such as target costing, co-creation, consumer behavior, customer-centricity, sustainability, and the Swedish funeral market.

• College: Linnaeus University (Business and Economics)
• Course: Innovation through Business, Engineering and Design
• Grade: 1,7
• Author: Anna Lena Bischoff (Author)
• Publication Year: 2016
• Pages: 50
• Catalog Number: V318998
• ISBN (eBook): 9783668193123
• ISBN (Book): 9783668193130
• Language: English
• Tags: target costing, coffins, sweden, focus group survery