Six Sigma and Social Media Strategy for Concept Design Services

Introduction

Consumer Design Services (CDS) began as Focus Plastics in the 1960s, an industrial plastics supplier. When the company was acquired by a consumer products group, however, it shifted focus toward consumer plastics. Producing plastics for industries had proven too cyclical and inconsistent in terms of guaranteeing long-term contracts; customers were always adjusting timeframes and were difficult to work with, whereas consumer plastics clients were more stable and could give longer-term guarantees of work (Johnston et al., 2003). By 1990, industrial ties were severed completely and CDS focused entirely on consumer plastics. This shift presented its own challenges, however, as smaller producers could compete with lower prices and undercut CDS's overhead (Johnston et al., 2003). The equipment CDS was using was specialized for industrial purposes and not necessarily suited to consumer do-it-yourself applications. Because the company had gained expertise in operating large machines, this counted as a valuable set of specialized resources, and it needed to find a way to use them, maximize its potential, and differentiate itself from cheaper autonomous companies that could sell buckets at lower cost.

Literature Analysis

Strategic relationships are as much a part of strategic management as they are about the success of an organization. CDS had a strategic relationship with industry initially, but this changed as it moved in a new direction. As Keller and Tuerk (2016) point out, organizations need to know what best practices are and must be able to examine evidence before developing a strategy. Internal analysis is where a company must begin — understanding what it is all about, what resources it possesses that others do not, and how it can leverage those resources to succeed in the marketplace. External analysis is equally important, and companies should use the Five Forces framework to identify threats and opportunities. Ultimately, it is all about managing change, and as Vedenik and Leber (2015) point out, "managing change is of key importance if companies or organizations want to remain competitive" (p. 584). The key to managing change well is to understand that client servicing has to evolve in most cases (Vedenik and Leber, 2015).

Additionally, McGregor (2004) states that "quality and change are similar concepts because they both imply movement and are not finite states" (p. 3). Yet for a company trying, like CDS, to develop a brand, a clear brand image and identity are essential. It is also important for the company to find a way to market the brand in a manner that is meaningful to the new generation of consumers. That is why Bratu (2019) suggests social media marketing and the use of influencers to help improve a brand's appeal.

As Singh and Xue (2017) show, brand appeal is a significant part of gaining a loyal following, and a company that wants a long-term commitment from consumers has to develop that following by using influencers who can impress a brand upon an audience. Apple is a company that has succeeded well at cultivating brand loyalty by way of an Apple lifestyle (Yoffie and Slind, 2008). This is essentially what CDS is in the early stages of doing with its Concept brand.

Concept Design Services' Strategies

CDS's strategies have been successful since the decision to exit the industrial products market, particularly with respect to the Concept brand and the Concept lifestyle. Consumers are willing to cultivate this lifestyle for themselves by showing off CDS products as commodities that accentuate their kitchens or homes and give them a certain status or sense of value (Johnston et al., 2003). These items have become collectibles for many customers, and this is the company's most profitable area. CDS has positioned itself as a designer brand and guarantees products in a range of colors for this purpose, which has also shaped how it markets itself. However, no information is provided about whether the company is using social media influencers. Ki and Kim (2019) note that social media influencers are able to help brands gain appeal because consumers tend to mimic what they see on social media.

If CDS wants to grow its brand across continental Europe and even across the Atlantic, it should turn to social media influencers for assistance, as other companies are doing — such as Tesla, which has performed very well in developing its brand through social media influence (Lei et al., 2019). Marketing should focus on this area because it is growing rapidly as consumers shift from old media (television and print) to new media (the internet and social media). Consumers are less affected by television commercials than they were in the past because they are not consuming as much of that type of media. They are, however, spending increasing amounts of time on social media and turning to influencers for information about products, brands, and how to cultivate a lifestyle (Bratu, 2019).

The other major strategy shaping CDS concerns supply services, because every order for Focus is so large and important that if one falls through or if delivery fails, the company stands to lose a significant amount of money (Johnston et al., 2003). With Concept products being seasonal — with large sales around Christmas — capacity planning and scheduling at peak times is difficult; molds and production timelines are both urgent yet require planning around a tight schedule. Concept production is usually smaller and more focused on fulfilling out-of-stock orders, so a great deal of time goes into planning for Concept production, whereas Focus production is comparatively straightforward. With Concept focusing recently on desktop solutions such as filing trays, storage boxes, and other desk items that can be swapped for seasonal colors to liven up the drab interior of office spaces, there is room for business-to-business collaboration to help companies enliven workplace culture with Concept products (Johnston et al., 2003). A joint-venture strategy is also in the works with home designers and large retailers. This shows that CDS is branching out in various directions, but the core issue remains how to harness the power of the Concept brand to grow the company in the right direction. Brand power is the most important asset CDS has since divesting itself of its industrial products market. That brand power must be communicated effectively whether in B2C or B2B marketing, as both rely upon the emotions conjured up by a significant brand (Lynch and De Chernatony, 2004).

Conclusion and Management Implications

The company should first consider addressing a marketing change: instead of promising that all items will be available in any color, shape, or size at any time, it should turn to a word-of-mouth marketing approach and allow users to generate content online on their own. User-generated content can really help drive a brand's success and can be cultivated through social media influencers that the company can sponsor to promote the brand, especially in new markets (Luca, 2015). Sites like Facebook can be great for influencer-based marketing (Kim and Johnson, 2016), and the Concept brand can grow and become more profitable without the company tying itself to promises that constrain its manufacturing and supply departments. Other changes should focus on applying Six Sigma to the organization, as discussed below.

To apply a business transformation project of the sort CDS needs, a change management program must be in place to help workers accept the new direction and overcome resistance and other obstacles (Antony and Banuelas, 2002). With the right support system in place, managers can effectively implement a new strategy based on Six Sigma that will help the company improve performance and profitability (Pande et al., 2014). The following steps are provided as guidance for improving sales and profitability into the foreseeable future.

Change is not always easy and obstacles can arise that create resistance among workers, but management must be committed to implementing changes that can alter the organization's structure and approach (Pande et al., 2014). Six Sigma requires total commitment from management in order to be effective. With the right mindset, the organization can succeed at analyzing supply and manufacturing issues, weighing them against demand requirements, and projecting for new markets.

The culture of the company appears to be positive, but underlying issues can exacerbate strain, and strain can bring underlying issues to the foreground (Antony and Banuelas, 2002). Managers must therefore support a positive workplace culture, demonstrate leadership, and meet the needs of workers so that burnout and turnover do not add to the company's costs. Managers should also be attentive to the emotions of workers as they implement the right analytical approach to strengthening the company's business strategy (Johnston et al., 2003).

Implementing Six Sigma will require training, as it involves substantial data gathering, surveying, and analysis (Moosa and Sajid, 2010; Pande et al., 2014). Managers must be involved in explaining why and how Six Sigma works so that supply and manufacturing departments can collaborate with sales and marketing to ensure that everyone is aligned on data collection, information sharing, and staying focused on shared goals (Antony and Banuelas, 2002). The more that everyone works together, the more effective the change will be, and the more profitable the company can become through better forecasting, modeling, and projection — ultimately reaching the goal of 100% product in-stock capacity.

Project sponsors and supervisors must be available to guide the implementation of Six Sigma, as they represent the core of the infrastructure supporting this strategy (Antony and Banuelas, 2002). Everyone has to be involved, and resources must be available to support the initiative. An all-hands-on-deck environment is needed for Six Sigma to work effectively, because it is a genuinely data-intensive endeavor that requires analytical understanding at every level (Pande et al., 2014).

Project management will be crucial for the success of a Six Sigma application, as every department must understand what data inputs are needed and how to gather data so that it can be used meaningfully for analysis (Moosa and Sajid, 2010). The more everyone practices this, the more efficient the process will become. Before long, the company will no longer face the same supply and manufacturing constraints it does today (Johnston et al., 2003). Instead, it will be able to plan and predict, schedule accordingly, and no longer be disrupted by short-term emergencies that throw schedules off track.

Six Sigma's goal is to reduce variability and uncertainty so that the company can reach its profitability and growth targets. This is achieved only through systematic analysis and management. Every project must link back to the customer, and the customer's requirements must be taken into consideration first and foremost (Antony and Banuelas, 2002). For the company to succeed, it must assess customers' needs while also evaluating how its own marketing is shaping customer expectations. The marketing side of the company also needs to be refined so that it can more fully tap into new marketing concepts — such as zero-cost marketing through word-of-mouth strategies and social media influencing (Dhar and Chang, 2009).

User-generated content can help the company gain traction with consumers without the need to make big promises that add constraints to supply and manufacturing (Dhar and Chang, 2009). This is the area where change is most urgently needed to support the company's business strategy. The way the company's products are currently marketed undermines performance and profitability. This can be overcome by adopting a more contemporary approach — social media influencing rather than promise-making (Bratu, 2019).

To conclude, the company is in a strong position but has a few issues to resolve, primarily the constraint problems on the manufacturing and supply side that stem from consumer-facing commitments. These commitments extend from the company's promise to always have items in stock (Johnston et al., 2003). Two options are available to address this problem: apply Six Sigma to create better forecasting analysis so that items are always in stock when needed; and change the marketing approach from promise-making to social media influencing. The goal is to achieve long-term brand loyalty among consumers — and that goal is more sustainably met through social media marketing than through operational promises that strain the organization (Bratu, 2019). That is where the company should focus its changes for future growth and profitability as it looks to extend into new markets.

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