9.2: Market Sectors and Segments

9.2
Market Sectors and Segments
Essential idea: Designers must research and consider the target market sectors and segments in the design of their products.

By identifying the market sectors and segments a product will be designed for, a designer can gain data directly from the perspective of the potential consumer.

Categories of market sectors
Designers need to clearly be able to identify the needs of the target market and target audience. These can be classified into two categories:

• Geographical sectors

Geographical sectors focus on the values, culture, and characteristics of purchasers in that region along with purchasing power.

• Client-based sectors

Client-based sectors may focus on consumers, industrial, public sector and commercial.

You can divide a market sector into market segments, narrowing it down. Market segmentation: Markets divided in to smaller segments where purchasers have similar characteristics and/or tastes.

Market segmentation introduction

Why do we segment?

• Increased understanding of customer wants and needs
• Different products for different groups
• Better match between customer wants and product benefits
• Maximise the use of available resources
• Focused marketing expenditures
• Competitive advantages

The influence of market sectors

The influence of market sectors

•  if there is a technological advance then the products or services in that sector will change.
• This change will influence the target markets.
• Such as the size of microchips allowing for powerful portable devices leading to iPads and smartphones.

Classifications of consumer market segments: income, profession, age, family, values, behavior
Common segmentation variables for consumer markets:

1. Geographic
• Country
• Region
• City size
• Density
• Climate
2. Demographic
• Age
• Gender
• Family size
• Life-cycle
• Income
• Education
• Religion
• Nationality
3. Psychographic
1. Social class 
2. Lifestyle 
3. Personality
4. Behavioral
1. Loyalty 
2. Attitude
3. Behaviors of customers

Types of Market Segments

• Income (high, middle, and low levels of finance) 

For example, different cars are made for different types of customers. Eg. ' Daewoo and Corolla vehicles for price sensitive customers whereas Mercedes and BMW aim their cars at the more affluent.' 

• Profession (types of jobs one has which can influence social groups or personal interest)

Different products apply to different professions, for example book genres.

• Age (babies, toddlers, tweens, teenagers, young adults, middle aged to the elderly)

Differences in age would generate different products for their specific needs; such as diapers/nappies for babies, toys for children, clothes for teenagers

• Family(single no kids, single with kids, married with two kids, empty nesters, etc.)

For example, a family with kids would purchase furniture that is more family orientated as opposed to a single living alone (trendy furniture).

Ikea offers different types of furniture for different market segments.

• Values (the ethical, worthiness or importance of something that is held by an individual or group, opinions)

Depending on the social demographic, people may have different environmental behaviors, eg buying environmentally friendly products vs a throw away society.

Development of a product family
Product family: A group of products having common classification criteria. Members normally have many common parts, assemblies and/or aesthetic elements.   

Companies and designers will develop a successful product or product range into product families. This further develops a successful market segment that is already familiar with the original product. For example, iPod then iPhone, then iPad.


Designers often develop product families to extend a successful product range and to develop products for market segments that are already familiar with the original product.

4.4: Manufacturing Processes

4.4
Manufacturing Processes
Essential idea: Different manufacturing processes have been developed to innovate existing products and create new products.

Designers sometimes engineer products in such a way that they are easy to manufacture. Design for manufacture (DfM) exists in almost all engineering disciplines, but differs greatly depending on the manufacturing technologies used. This practice not only focuses on the design of a product's components, but also on quality control and assurance.

Additive Techniques
Paper-based rapid prototyping
PRP technology at the moment only used for for prototyping purposes and does not offer the same design freedom and strength as for example, a Selective Laser Sintered (SLS).

Laminated object manufacture (LOM)
LOM is used to make 3D paper/thin polymer models and is a form of 3D printing. It is often used for creating scale models and conceptual prototypes that can be tested for form or design. It can also be used to make patterns for use in traditional manufacturing, such as sand molded casting.

• Materials include paper, plastic or metal
• Design contexts include models, prototypes, vacuum forming molds, pattern (for casting), or one-off products.

3D Printing and Fused Deposition Modelling (FDM)
Fused Deposition Modelling process constructs three-dimensional objects directly from 3D CAD drawings. A temperature controlled head extrudes thermoplastic material layer by layer.

• Importing an STL file of a modelled into horizontal layers , which is then sliced into horizontal layers
• The material used for objects 3D printed by an FDM would generally be PLA - less harmful to the environment, as it is made out of cornstarch. ABS is not as good for the environment because it is synthetically made.

The result of the solidified material laminating into the preceding layer is a plastic 3D model built up one strand at a time.

Stereolithography (SLA)
Stereolithography is an additive manufacturing technology that builds objects one layer at a time by curing a photo-reactive resin with a UV laser or other similar power source.

• Type of liquid or polymer that reacts and hardens to the laser beam
• Liquid material is hardened on contact
• Laser builds from the bottom up

Wasting/Subtractive Techniques
Manufacturing techniques that cut away material in order to create a component.

Cutting
Cutting describes the action sawing, chiseling, and planing which removes material in the process of cutting.

Band Saw

Advantages

• equipment and CNC have a high accuracy
• equipment and CNC produce a high quality finish
• produce very fine details
• minimal distortion

Disadvantages

• equipment and CNC initial costs are high
• special training/skills are required

Machining
Powered machines that shape materials through a variety of cutting processes, machine tools operate on unfinished metal parts, such as rough metal castings or forgings, and perform shaping and finishing operations that produce precisely dimensioned parts. Most machine tools function in one or more several basic categories - drilling, turning, and milling.

Drill Press

Mill machine

Advantages

•  High accuracy can be achieved
• equipment and CNC produce a high quality finish
• produce very fine details
• CNC/CAM allows for 24/7 production

Disadvantages

•  equipment and CNC initial costs are high
• special training/skills are required
• less workers requires in a CNC/CAM work environment

Turning
Turning is most commonly carried out using a lathe or milling machine. Lathes are mostly used for cutting metals or woods. They work on a horizontal axes where the workpiece rotates at speed and tools such as chisels remove waste materials.

Abrading
Abrading involves the use of abrasive materials to wear away the material by friction. This can be done using abrasive papers (eg. sandpaper) or emery cloth. It could also involve the process of grinding use a wheel or abrasive stone. Synthetic materials such as silicon carbide, aluminum oxide or industrial diamond tipped tools can be used. As with cutting the tool must be harder than the material being cut or abraded.


Advantages

• provides a good finish
• takes sharp edges away – safety
• Cheap shaping technique – relatively low capital cost

Disadvantages

• can be noisy so health hazard
• can be dusty so health hazard

Shaping Techniques
Moulding

Thermoforming

Laminating 

Casting

Knitting

Weaving

Permanent Joining Techniques
Fastening

Adhering 

Fusing

Temporary Joining Techniques

9.1: Corporate Strategies

9.1
Corporate Strategies
Essential idea: Companies and businesses can utilize a range of different strategies to develop products, services, and systems.

Pioneering strategy
A pioneering strategy indicates a product led or technology led approach, in other words the product is being pioneered by a designer or design team and an associated manufacturer who may become a product champion. A pioneering style of approach to product design and development may be indicative of the use of new materials, production processes, or technology. 

Being the first to market with a new innovation

Dyson - new vacuum technology

ADVANTAGES - most risk, but highest potential for gains, need strong R&D (research and development)
DISADVANTAGES - risky, may not work. need a lot of money from extensive market research; risky and costly

Imitative strategy
An imitative strategy for a product designer /manufacturer would be to look at and thoroughly research existing products within a sector and use a very similar format (almost copying) for their won product development using similar technology, materials and production techniques. this approach enables the manufacturer to reduce design and development time and therefore cost.

Developing products that are similar to an existing new product.

REVERSE ENGINEERING is a process that imitative manufacturers use to extract knowledge or design information from products & systems and reproduce it. The process often involves dissembling something and analyzing its components and workings in detail.

Market development
This strategy involves looking at the existing market which a product ids placed in and then researching other markets or market segments that the product could be additionally placed in. The product may require minor adjustment or re-packaging. Research is required based around product analysis and consumer awareness.

Increasing sales to existing customers or finding new customers for an existing product.

Starbucks - opening new stores around the world

Product development
This approach involves taking an existing product (maybe one you already produce or a competitors) and doing a significant product analysis and then changing the product or developing it to more appropriately fit a changing market. These could be minor or major design and functionality changes. 

The creation of new, modified or updated products aimed mainly at a company's existing customers.

Variations to a product - Coca-Cola and its variations

Market penetration
Market penetration is a strategy which a business uses for existing products in current market. In this strategy there is no need to produce new products or offer products in new markets - the business will try to sell more products to existing consumers or find new consumers for their product which will increase their sales. 

Increasing sales to existing customers or finding new customers for an existing product. Selling more things

Trying to increase sales to customers that we already have


Product diversification
Increasing sales from new products or markets. Diversifying a product / product offerings

For example, Kelloggs, widely known for breakfast cereals diversified in the mid 80's into cereal snack bars, this meant they could sell a product that could be consumed at any time of the day without milk/bowl/spoon and the product is manufactured using the same or similar raw materials.

• Involves a company both in the development of new products and in selling those products to new companies.

Ansoff Matrix

Hybrid approaches
Hybrid approaches is defined to be using more than one of the previously mentioned strategies in accordance with each other. In actuality, the majority of product developments that are brought to market evolve through elements of the sections listed previously. There is no exact formula than enables a product to succeed in the market, this is why new products from inexperienced designers and manufactures with low capital find it harder to enter significant markets which are already served by large manufacturers/suppliers.

Corporate social responsibility
This can be defined as the corporate belief or objective that a company needs to be responsible for tis actions, socially, ethically, and environmentally. Businesses will publish a CSR report, which describes its efforts in being economically, socially, and environmentally responsible (triple bottom line). 

Corporate social responsibility is a form of self-regulation for a company and centres around the development of goals related to three areas; social, economical, and environmental.

Companies that consider corporate social responsibility as a goal need to assess the impact of their operations in relation to these three areas in order to maximize the benefits and minimize the disadvantages. Students need to consider the ways in which a company might achieve this and the evidence of effective corporate social responsibility for a major multinational corporation.



Nike Sustainability Report
Coca-cola Sustainability Report
Lego CSR Report

4.3: Scales of Production

4.3
Scales of Production
Essential idea: The scale of production depends on the number of products required.


One-off production
One-off production is where only one for a few specialist items are required. If a prototype is made then it is usually part of the realization of the product and so the next step after testing would be batch or volume production.

In one-off production a single (or very few) product (s) is designed and made to a client's specification. Labor and material costs are high, and a high level of design and manufacturing skills are needed. An example of one-off production would be a made-to-measure wedding dress or a commissioned piece of furniture.

Custom made to fit the customer or consumer

Manufacturing costs are high and labor costs are high.

Examples of one-off production

Batch production
Limited production volume - a set number of items to be produced. There is a set amount of products made or manufactured.

Batch production set quantities of a product are manufactured to order. Batch production requires a high-level of design, pattern making and sampling skills. Materials are cost-effective and manufacturing costs are lower than one-off production. 

• automation is required eg. templates
• Making products in set quantities

Garments are designed to fit a range of standard sizes and shapes. The quantity varies from a set of four cushions made by a designer or maker to 20,000 jumpers made for a department store.

Cars may be manufactured in batches

Examples of batch production

Continuous flow production
Definition: A production method used to manufacture, produce or process materials without interruption.

MASS PRODUCTION is the industrial-scale manufacture of large quantities of products, usually on a production line. Standardized production mean that it is suitable for products that rarely need to be redesigned. Mass production is used for products that are needed in very large numbers, such as socks or jeans. Often, products are made overseas where labour costs are lower. 

• high set up costs (machinery)
• low unit costs

CONTINUOUS-FLOW MANUFACTURING is when many thousands of identical products are made. The difference between this and mass production is that the production line is kept running 24 hours a day, seven days a week to maximize and stopping the production process. The process is highly automated and few workers are ever required.

Production lines

Choosing a production method
The best method of production depends on the type of product being made and the size of the market.

• One off production - service sector such as tailors or manufacturing jewellers, one off production is the best production method
• Batch production is used to meet group orders, and batch orders. Appropriate for bakery and clothes manufacturers
• Flow/continuous production is used to produce everyday standardised items such as soap power and canned drinks.

LEVELS OF PRODUCTION:

Advantages and disadvantages of different production methods

4.2f: Composites

4.2f
Composites
Essential idea: Composites are an important material in an intensely competitive global market. New materials and technologies are being produced frequently for the design and rapid manufacture of high-quality composite products. Composites are replacing more traditional materials as they can be created with properties specifically designed for the intended application.

A composite is composed of two or more materials with one acting as the matrix and the other acts as the reinforcement (fibers/sheet/particles).

Form: fibres/sheet/particles and matrix
Composites are a combination of two or more materials that are bonded together to improve their mechanical or physical properties. Composites can be investigated as a whole but breaking them down into 3 key areas is most useful to achieve a detailed understanding - form, process, and composition. 

Textiles: Fiber

• Fibers can be spun into filaments, string or rope, used as a component of a composite material or matted into sheets to make such products as fabrics, paper, or felt.
• Synthetic fibers can be produced very inexpensively and in large quantities, compared with natural fibers.



Carbon Fiber Textiles

• Woven fabrics and other reinforcements are used in conjunction with resins (the matrix) to produce composite materials which combine the strengths and overcome the weaknesses of two (or more) materials to produce very strong materials, such as carbon fiber (CF)

Sheet: Glass

• Glass is produced using silicon dioxide, sodium oxide and calcium oxide, and is generally made into sheets.
• When glass is laminated then it becomes a glass composite because there is an interlayer between the glass sheets made from PVB [polyvinyl butyral]. When the glass is shattered the interlayer keeps the glass layers bonded, preventing the glass breaking up.

Particles - Metals and Concrete

• Particle re-inforcing in composites is a less effective of strengthening than fiber reinforcement.
• Particulate reinforced composites achieve gains in stiffness primarily, but can also achieve increases in strength and toughness & wearability in terms of concrete composites.
• Particulate reinfoced composites find applications where strength, toughness, nad hadness may need to be increased.

Matrix -Carbon fiber

• There is a reson that a material like carbon fiber can be strong and lightweight at the same time. It is related to the atoms that make up these materials and the way that these atoms bond together.
• As with all composites there are two categories of constituent materials, matrix and reinforcement. The matrix for carbon-fibre is an epoxy resin that surrounds and supports the reinforcement materials ie the woven CF fabric.

Carbon fiber polymer structure

Process: weaving, moulding, pultrusion and lamination

Weaving 

• Woven carbon fiber is most suitable for applications requiring a high strength-to-weight ratio.
• Carbon fiber is stiff and strong but remains very light. Replacing steel in many applications, its up to 5 times stronger and up to two thirds lighter. Further to its incredible strength and weight properties carbon fiber products offer distinct aesthetic value.

Moulding

• Hand lay-up is an open molding method suitable for making a wide variety of composites products including: boars, tanks, bath ware, housings, architectural products, and many other products ranging from small to very small to very large. 



Spray-up Molding

• Production volume per mould is low and is feasible to produce substantial production quantities using multiple moulds.

Hand Lay-Up

• Spray-up is an open mold method similar to hand-lay up in its suitability for making boats, tanks, for transportation, and other items in a large variety of shapes and sizes. A chopped laminate has good conformability and is sometimes faster than hand lay-up in molding complex shapes. 

Pultrusion

• Pultrusion is a continuous process for manufacture of composite materials with constant cross-section. The term word, combines 'pull' and 'extrusion'. As opposed to extrusion, which pushes the material, pultrusion works by pulling the material.
• Raw materials are a liquid resin mixture (containing resin, fillers, and specialized additives) and flexible textile reinforcing fibers. The process involves pulling these raw materials rather than pushing, through a heated steel forming die using a continuous pulling device.

Pultrusion is a molding process where fibers are saturated with a liquid polymer resin & pulled through a heated die to form a part.

Pultrusion process

Lamination

• One of the early materials that was used as a part of a lamination process was called Formica. Formica originally consisted of layers of fabric bound together with resin; later, it was made with thick pieces of paper laminated with melamine. This tougher substance could resist heat and abrasion, while the paper opened up a wealth of possibilities for printing colors and patterns, which proved key to its success.

Formica Laminate Sheet

Composition and structure of composites: concrete, engineered wood, plywood, particleboard, fibreglass

Kevlar, carbon reinforced plastic, laminated veneer lumber (LVL)

Volumetric Drawing Skills Projects (1)

Sketching an Everyday Object: Basics of Cube & Perspective Drawing

through shaving dimensions of a 'box' (cuboids/cubes)

Example of this art technique

For this sketching project I chose to draw a standard blender, as I wanted to explore vertical dimensions and sketch realistically; being a skill I aim to develop in this DT course. I started with basic shapes - I drew a cuboid around the blender to get an estimate of its dimensions, and perspectives (shown on the right) and then shaved away at the outlines of the cube to create an outline of my blender. I drew the initial cube in 2 point perspective, according to the angle that the blender was angled at. The right image represents the starting of the sketch; a simple cube (in my case, a cuboid).

I then added details and buttons to the blender and outlined it in pen (using the technique of 'spider lines').

Sketching an Everyday Object: Basics of Sphere Drawing

For this sketching activity I drew a glass jar to practice drawing cylinders. This sketch came from a still object in front of me, instead of a picture (like the sketch of the blender above).

I started this sketch with a simple cylinder and then started to add details and refine the sketch. I personally think that my proportions are slightly off in this sketch, maybe due to the inaccuracy of dimensions, so and so forth.

Basic foundations of cylinder

From the basic sketch of the cylinder I added the glass details of the jar and tried to make it appear more volumetric. My sketch may not have appeared as accurate because my top and bottom ellipses [of the cylinder] may not have been as accurate.

Tough Mudder Water Bottle Project: Concept Designsdesigning a water bottle for a thrilling, vigorous and intense run

Water Bottle Concept Designs

This recent design project is focused on creating/designing a bottle that encompasses the brand of the run (Tough Mudder) and ergonomic functions that will be useful to the target consumer; which in this case are runners and athletes who are participants of the run. 

I have designed 5 different bottles that are initial concepts that I am likely to develop further with materials and other aspects that has to be considered for the bottle design. The designs were started through simple cylindrical drawing, similar to the project above. The art techniques I added consisted of spider lines and adding magic markers to highlight and lift things off the page, making my design more eye-catching and interesting.