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Greene

Judy Greene started her own pottery business in 1981 and has experienced tremendous growth, with sales reaching over €1 million by 1998. She attributes her success to having her workshop co-located with retail, allowing close customer contact. Customer feedback was vital for testing new product ideas. While pottery has been successful, customer trends are shifting away from pottery towards other items. To stay ahead, Judy studies design trends in magazines and other markets. She aims to identify potential trends and customize them for the Irish market. Judy also relies on customer feedback to develop new lines and balance innovation with her signature style.
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0% found this document useful (0 votes)
90 views

Greene

Judy Greene started her own pottery business in 1981 and has experienced tremendous growth, with sales reaching over €1 million by 1998. She attributes her success to having her workshop co-located with retail, allowing close customer contact. Customer feedback was vital for testing new product ideas. While pottery has been successful, customer trends are shifting away from pottery towards other items. To stay ahead, Judy studies design trends in magazines and other markets. She aims to identify potential trends and customize them for the Irish market. Judy also relies on customer feedback to develop new lines and balance innovation with her signature style.
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Judy Greene Pottery

Doing something harder is what Judy Greene has done and continues to do. In fact, Paul, Judy’s
husband and business partner, likens Judy to the blade on an icebreaker ship. ‘Judy has to continually
break the ice in developing new ideas. Judy never looks back; she is always looking ahead. Like most
artists, her next piece is the most important.’

Judy is a prominent contemporary potter whose company, Judy Greene Pottery, is noted for the
quality and design of its output as well as the entrepreneurial qualities of its director. Judy Greene is
engaged not only in developing products and designs, but also in managing the manufacturing and retail
operations of the firm. Judy’s business has been successful, experiencing phenomenal growth rates over
the last ten years. Her main concern is to ensure its future prosperity.

Judy Greene Pottery

When aged 31, Judy left the Irish pottery company Potaireacht Cléire in 1981 to start her own
business. She had no business plan, no capital and no time to take business-training classes. So, she put
key figures on a sheet of paper and went to see the bank manager. An overdraft of €19,000 was
approved. By 1998, sales turnover had reached €1,000,000. Judy’s aim was to achieve €1,250,000+ in
sales by 2000 and an additional 25 per cent by 2005.

Judy attributes her success, in those years, to having her workshop on the retail site allowing for
close, consistent contact with customers. In fact, customers were vital in providing feedback for testing
new product ideas. Judy noted that ‘if it worked it sold. The customers walking through the workshop
were like having a marketing department walking through the door every day.’ Judy contemplated what
to do next. Her handmade pottery has been extraordinarily successful and she wishes to focus on
developing future strategies to ensure continued prosperity.

The Irish market for giftware and crafts

The Irish crafts/gift market had an estimated annual turnover of €127 million. Handcrafted
pottery accounted for approximately 9 per cent of that market, giving a per capita expenditure on
pottery of less than €2.50. Pottery made in a studio environment (i.e. handcrafted) has 70 per cent of
the Irish market, is usually found at the upper price band for tableware and gift items and is not as price
sensitive as other product categories. The craft/gift industry had been a growth market for many years.
However, there are signs that growth is beginning to slow.

There are several trends which relate to the Irish craft/gift industry overall:

 The young and more travelled customers are moving away from traditional and safe
gifts.
 The influence from the tourist industry continues to be strong.
 The healthy economic climate provides a good foundation for opportunities not only for
established firms, but also for new entrants.

Customer profiles
Judy’s current customers are mostly female, 25 to 45 years of age and older, coming from
mostly middle and upper middle incomes. Many of the younger customers (i.e. mid-twenties to mid-
thirties) are newly married couples and/or new homeowners. Exhibit 9.1 gives customer segments.
Tourists buy in the retail shop and ship their purchases home, perhaps purchasing again later through
mail order. Most of these tourist/mail-order sales are made to customers from the US (90 per cent);
smaller proportions are made to tourists from the UK (5 per cent), and other countries (5 per cent).
Export sales are made through individual retailers who have sought out Judy Greene products or
through supplying specialist consumer catalogues. The majority of sales are made to retailers in the US
(55 per cent); smaller proportions are made to retailers from Canada (15 per cent), France (10 per cent),
the UK (10 per cent) and other countries (10 per cent).

Exhibit 9.1 Customer segmentation for Judy Greene Pottery for 1998

Market segment Oct.–March April–Sept.


Domestic 90% 80%
Export 2% 5%
Tourist 4% 10%
Mail-order 4% 5%
Total 100% 100%

Customer trends

Customer trends are changing and their tastes appear to be moving slowly away from pottery
back to china, porcelain and cut glass. Most important for Judy is to identify and stay ahead of the
trends. To identify trends, Judy ‘devours’ interior design magazines and travels abroad to Europe and
the United States to see what is popular and selling there. “Typically, what is selling in Frankfurt now,
will be in Ireland in two years’ time.” For this reason, she finds that the timing of new products and
designs is crucial. In fact, the idea for one of her bestselling products, oil burners, was developed as a
direct result of a trip to a ceramics fair in Munich, five years ago. While in Germany, she went to
numerous chemists’ shops to examine the design, function and safety features of various kinds of oil
burners. It was one of the most cost-efficient ways to do her R&D work. Thus, when she returned to
Galway she wasted little time and resources in developing her final product.

Judy readily admits that reading interior design magazines and examining other markets is no
guarantee of success in the Irish market, as design and color trends may not suit Irish tastes. However,
identifying the potential trends and then customizing them for the consumers in the home market
affords a better chance of success. Judy also relies quite heavily on customer feedback. The retailers and
customers who buy Judy Greene Pottery are always looking for new designs, so Judy has to stay fresh
and respond to their feedback. Judy is aware that she needs to capitalize on ideas for new lines to ‘stay
fresh’ in a highly competitive market. Yet, at the same time, she also knows it is important to stay true to
her own style. Balancing these two concerns is challenging while trying to satisfy customer demand.

With respect to design preferences, 10 years ago when Judy started, flowers and flowery
designs were ‘in’. Now she has to consider what the upcoming generations want, as they will be the
customers of the future. The younger age groups are more interested in simpler, more classical lines of
design. Judy believes that “younger customers are looking for something Irish, but not hackneyed
symbols of shamrocks and shillelaghs”. In response, Judy introduced her Connemara Collection to
appeal to the younger markets.

Furthermore, Galway being a tourist town, there are the tastes of visitors to consider. Judy has
noticed that the English tourists love the flowery designs and will buy everything in the shop. German
visitors prefer the simpler designs and buy the larger, exclusive, unique and one-of-a- kind pottery
pieces. The American visitors will be one of two types: either ones that buy ‘seconds’ from the bargain
baskets; or ones who buy entire dinner sets, because they like the design and consider money to be no
object. Finally, the French and Italian tourists do not buy a lot of pottery and prefer to purchase items in
Design Concourse Ireland.

As a member of the Galway Chamber of Commerce, Judy does have access to a research report,
Galway Tourism 1997. According to this report, there were 920,000 visitors to Galway City in 1996 (see
Exhibit 9.2) spending an average of A21.34 on gifts.

Exhibit 9.2 Visitors to Galway City, 1996

Country Percentage
Ireland and N. Ireland (i.e. other than Galway) 42%
United Kingdom 17%
United States of America 15%
Germany 8%
France 7%
Other Europe 7%
Rest of world 4%
Total 100%

Focus group research

Although Judy believed she had a good understanding of her loyal customers, she thought it
worthwhile to investigate various other (potential) customer segments. Her objectives in pursuing this
research were to learn more about:

 where people got their ideas for fashion, interior design and home furnishings;
 their general perceptions of porcelain, china, and pottery;
 what brands of pottery they knew, liked, and bought (i.e. for themselves or a gift);
 their buying patterns and criteria when buying pottery.

Judy was interested in qualitative information that explained why people think or feel the way
they do and so hired a market research firm to organize and facilitate focus group interviews. The
researchers identified four customer types.

Young Graduates – future customers


The average age of participants in this focus group was 23 years. All participants had finished
their undergraduate studies. At the time of the interviews, they were in the process of postgraduate
studies, or in their first job. None of them owned their own home, and they were living either in the
family home or in rented accommodation.

The Young Graduates described themselves as being very style and fashion conscious. They
were very aware of current fashion trends. In addition, many of them liked to buy branded products and
perceived that a good brand name added value to their purchases. Most of their influences came from
magazines, shop windows or their peers. However, they also had a clear idea of what they liked and the
designs and styles they preferred.

Professionals – higher disposable income customers

The average age of participants in this focus group as 36 years. All participants were
homeowners and professional women in a full-time job. The majority of these women were married and
had children.

The Professionals viewed themselves as very practical individuals who preferred comfort,
convenience and simplicity in their surroundings and clothing. Terms such as ‘very convenient, no
thought involved, easy to manage and maintain, comfortable and practical’ were mentioned frequently
as important factors for purchases to suit their lifestyle. Many of the Professionals expressed that they
led busy, hectic lives and sought purchases that made their lives easier.

Homemakers – mature customers

The average age of participants in this focus group was 50 years and they had had their home
for a number of years. Many of the women identified themselves as homemakers, although many of
them work outside the home, or did so at one time. All the women were married and the majority had
children.

The Homemakers felt that words such as ‘casual, functional, traditional and classical’ most
accurately described themselves and their preferred surroundings. Influences on their choice of style
came from themselves and from magazines, as well as from their friends and relatives. However, they
did not believe they were influenced by trends in fashion. Essentially, they had developed their own
style and preferred to ‘stick with it’.

Loyal Customers – core customer base

The fourth focus group was composed of loyal Judy Greene customers. As this was the only
criterion, participants’ profiles were more diverse than in the other focus groups. The women ranged in
age from 35 to 67 years. All the women had their own home. Most of them were married and many of
them had children. Half of the participants were professional women in full-time positions, and ranged
in age from 37 to 54 years, while the other half identified themselves as homemakers and ranged in age
from 35 to 67 years.

The Loyal Customers perceived themselves to be independent thinkers. They did not believe
they were heavily influenced by trends in fashion and interior design. In general, they favored clothing
and home furnishings that were ‘classical, elegant, and of good quality’. Although they appreciated
classical styling, they did not view themselves as traditional. Consequently, they clarified that they
preferred “an old style with a modern twist, and a mix of antique and modern furnishings”. Essentially,
they liked ‘things that won’t date, that are smart, but not too trendy’. Many of these women expressed
an opinion that ‘fashion was for younger people’. Essentially, they felt they were at a stage in their lives
where their identities were established and they were comfortable with themselves.

As a whole, the groups preferred pottery to china and porcelain. Still, each group did have
distinct characteristics in terms of motivation for purchase, importance of branding, purchase criteria,
and preferences for style, design, color, etc. Exhibit 9.3 summarizes the participants’ responses from the
focus group interviews.

Exhibit 9.3 Summary of customer profiles


Focus groups
Young Professionals Homemakers Loyal
Graduates Customers

Customer segment Future High Mature Core customer


customers disposable customers base
income
customers

Description of personal ‘Classical ‘Practical ‘Functional ‘Timeless


style casuals’ minimalist’ traditionalist’ modernist’

Purchase motivations Brand, style and Convenience, Function, Quality,


current trends practicality, personal function,
functionality taste and habit consistent
and value (not with own
by brand and styles – i.e.
fashion) timeless,
smart, won’t
date

Perception of current Retro, 1950s Space, Natural, wood Country style,


fashion style, tailored, efficiency, and spacious, airy,
classical casual functionality, earth tones, more
bright, changes for younger
airy, timeless, slowly over people
simplistic, time
minimalist

Pottery preferred (with Simpler, less Clean, simple Traditional Classical lines
respect to style, design, fussy lines, in (terracotta) with a
color, etc.) designs, in bold white, natural designs modern twist,
colors and and and lines in but
shapes – terracotta muted timeless
like a lot of tones colors
variety

Q1: Where do you get Magazines, Magazines, Magazines, out Irish


ideas for fashion, interior peers, peers, of magazines,
design and home shop windows, friends, i.e. own head, visit
self, what others friends the shops, own
furnishings?
‘what I like’ did in their and relatives style
homes

Q2: How do you describe Own style is Practical, Casual, Classical, good
your own style and that casual, comfortable, functional, quality,
of your surroundings (i.e. easy to focused, individualistic, elegant,
maintain, minimalist, not independent
home or
comfortable; simple, too concerned thinkers, smart
accommodation)? style, convenient, about styles, not too
brand and consistent fashion trendy
quality or dated, old-
conscious, very style
fashion with a modern
conscious, twist
very aware of
trends

Q3: Words you associate Formal, dainty, Too outdated, Dainty, Delicate,
with china and dust collectors, costly, impractical, lovely,
porcelain? old-fashioned, expensive, unused, pretty, formal
out of date fussy, flowery, dining
delicate, expensive, not room, formal,
irritating for never
everyday use used

Q4: Words you associate Earthy, natural, Functional, Chunky, Warm, earthy,
with pottery? raw/unaffected, chunky, practical, comforting,
in durable, heavy functional, old- casual,
fashion fashioned intimate

Q5: What are important Color, shape, Occasion (gift) Practicality, Shape, color,
factors when buying design, texture, recipient’s function, functionality
pottery? depends on taste and shape, color,
occasion preferences, simplicity,
look and design,
design, style
function, and
price

Q6: What brands Stephen Stephen Stephen Stephen


of pottery are Pearce, Judy Pearce, Judy Pearce, Judy Pearce,
you most familiar Greene, and to Greene and to Greene and Jack O’Patsy,
with (i.e. name lesser a lesser Nicholas Judy
extent Nicholas extent Mosse Greene, Louis
recognition)?
Mosse, Michael Nicholas Mulcahy and
Kennedy Mosse Nicholas
Mosse

Q7: How important Very brand and Brand not a big Brand name is Appreciate
is the brand (name) style issue – not value of
in general and when conscious more emphasis important brand, but
on brand
purchasing pottery?
function, name is more
convenience, important for
comfort, gifts
price–value
relationship

Q8: How important Brand carries (a Value Price is not Price is not at
is price when lot) conscious very all
purchasing pottery? more more important important
importance, than price
but they also conscious
look at
price carefully

Q9: How important Very important Convenience is Important part Extremely


is in-store service? very of the important
important purchase
experience

Questions:

1. Classify the types of marketing research used by Judy Greene over her firm’s evolution.
2. What market research would you suggest that Judy Greene should have done before starting up
her business?
3. To what extent did the qualitative research reported fulfil Judy Greene’s research objectives?
4. Based on the research conducted so far, what recommendations would you make to Judy
Greene concerning the way ahead for her company?
5. What further research would you recommend she does?

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