Reference no: EM133296575
Assignment:
Sofort is a (fictional) company based in Germany which makes prefabricated houses. The company is five years old, employs 35 full-time staff and a variable number of temporary, on-site builders.
Sofort's prefabricated houses are manufactured in a factory in Cologne as separate parts (walls, roof, floors, etc), transported on trucks to the build site and then assembled. This method is cheaper and quicker than traditional building methods, such as brick. It is also more sustainable, using modern insulation materials.
The market for Sofort is individual buyers (consumers) who have purchased a plot of land and want a house built on it. These customers are largely based in Germany, but there is growth in Belgium too (now 12% of Sofort's revenue). To reach this market, Sofort advertises in appropriate magazines and websites, attends exhibitions and buys pay-per-click adverts on Google. Most of the sales are done by the sales team of five.
However, some potential customers have expressed suspicion of prefabricated houses, believing them to be of poorer quality than traditionally built homes. In addition, Sofort is facing a growing level of competition from China. While the transportation of prefabricated houses from China raises time-to-completion and reduces sustainability, the cost to the customer is around 10% less due to lower labour cost.
Sofort's early growth has now levelled off. Revenues and profits are flat. The CEO has brought you in as a marketing consultant to recommend some new approaches. First, she has some questions (below).
You may make any other reasonable assumptions as necessary.
Questions
Question 1: How would you determine an appropriate customer journey for Sofort? What elements may currently be missing in that journey?
Question 2: Other than financials, how should Sofort measure their progress? What Key Performance Indicators would you propose, and why?
Question 3: Given the drive by governments towards more sustainable economies, how could Sofort place themselves in an advantageous market position compared with traditional house-builders?
Question 4: How should Sofort compete with lower cost suppliers?