Memorandum from the Design Council (YH 28)

 

About the Design Council and the Designing Demand Programme.

 

The Design Council is the national strategic body for design. Its role is to inspire and enable the best use of design in business and public services. 

 

One of the core programmes that we have developed to help achieve this goal is Designing Demand. The Designing Demand service was established in response to the HMT Cox Review of Creativity in Business which highlighted the role of design as an important driver of business competitiveness. The review went on to show how many SMEs were not aware of this fact and recommended the development of a new business support service to help them use design and understand how it could help them to grow their businesses.

 

The resulting Designing Demand programme was launched in 2006 with funding from DIUS, BERR and the RDAs. It is a design mentoring service which delivers intensive advice for business leaders and helps them assess design challenges and opportunities across their operations. The focus is on accelerating innovation, developing new products and services and ultimately adding value. It is delivered through a roster of Design Associates who are all trained and vetted by the Design Council.

 

The programme is delivering positive results including improved company performance and profitability and new strategic directions for participating companies. It is now available in seven regions and over 1300 businesses have been through the programme to date. We are also working with the devolved nations to make the programme available in Wales, Scotland and Northern Ireland. The programme now forms an important plank of a streamlined portfolio of business support products available via Business Link.

 

 

Solutions for Business: Design Works

Yorkshire Forward was the first region to roll out the Designing Demand Service which it did under its own Design Works banner in 2006.

This followed on from a report commissioned by the RDA which found that a large proportion of SMEs in the South Yorkshire region were not using design strategically and that perceptions about design amongst local businesses were varied and often inaccurate.

 

Design Works employed a team of six experienced consultants (Design Associates)

approved by the Design Council who worked with the companies on a one-to-one basis to identify

the most effective development design opportunities for the business and develop a project

brief. Businesses then received support and advice in choosing the right design supplier to

deliver that project (from a short list selected from a database of preferred suppliers).

 

By April 2008, almost £1.1m (SME contribution and subsidies) had been spent on design projects through the programme with an average project spend of around £14,300 and an average SME

contribution of more than £9,000.

 

 

Delivering Impacts for Yorkshire Forward

 

The overall aim of the Design Works programme was to strengthen the links between design and business success by promoting more effective communication between SMEs and design

agencies. An independent evaluation based on a survey of 30 businesses involved in the Design Works programme which was carried out in April 2009 by Eko Gen, highlights that the service is meeting this aim and delivering impressive results in the following areas:

 

 

Raising the profile of design

As a result of participating in Design Works, businesses are genuinely buying into the concept of

design as a driver of business performance.

 

Almost a quarter of survey respondents said that design was crucially important to the success of their business and just under half said that it was very important (20%) or important (23%).

 

Just under half of respondents reported that design has become fully embedded in their operations. The same proportion reported that design had either become embedded across most or some departments and functions.

 

Two thirds of the businesses that took part in the phone survey reported that design was integral to their companies operation in comparison to under half of businesses in 2007.

 

 

Design Investment

For many businesses, spend on design has increased as a result of participating in Design Works.

 

Following Design Works, there has been a decrease in the companies that spend up to £4,999 (from 13 businesses, 43% to 2 businesses, 7%) and an increase in those that spend between £5,000 and £35,000 (from 7 businesses, 23% to 21 businesses, 70%).

 

In 2008, one business spent between £50,000 and £100,000. In 2009 6 businesses (20%) expect to spend between £35,000 and £100,000, with half of these expecting to spend over £50,000.

 

Over the next two years, 11 businesses (36%) expect design spend as a proportion of annual turnover to increase. Nine businesses (30%) expect it to stay the same.

 

Overall, the majority of businesses (70%, 21) reported that their investment plans had been significantly (30%, 9) or partly (40%, 12) influenced by Design Works. Of these, just under a third reported significant increases and a larger proportion businesses (43%, 9) reported moderate increases.

 

Measurable business growth (including job creation, sales, profits and market share)

Businesses have experienced a wide range of positive outcomes as a result of participating in Design Works.

 

Since 2007, the top five outcomes, in order, have been increased sales (50%, 15), jobs safeguarded (47%, 14), improved service to customers (40%, 12), increased profits (36%, 11) and increased competiveness (36%, 11).

 

Businesses have also experienced increased market share (33%, 10), entry to new markets (33%, 10), improved employee performance (33%, 10), increased exporting (26%, 8) and job creation (23%, 7).

 

Outcomes which have occurred to a lesser extent are the creation of new products / services (20%, 6) and cost reductions (20%, 6).

 

 

Case Study 1: Interior Surfaces

Background

Sheffield-based Interior Surfaces manufactures a varied range of interior work surfaces. A retail outlet serves homeowners, but a larger proportion of the business is focused on top-end trade customers: design and build contractors and architect-led projects.

In March 2006, Interior Surfaces wanted to update its image following a turbulent few years. The company was launched in 1992 as Tailored Tops. In October 2000, Managing Director (now chairman) Arthur Mackenzie bought out his former partner and a year later renamed the business Interior Surfaces. Then, in November 2006, the company moved premises.

Following this upheaval, sales began to grow, but the new management team believed the business could be doing better.

Problem

'We had a decision to make,' says Sales and Marketing Manager Zoe Dickinson explains. 'We could remain small, just ticking over, or we could try to be a real player. We chose the second but weren't sure how best to achieve it.'

Dickinson received a flyer about Designing Demand. Like many sales and marketing executives working in smaller businesses, she says, she was unclear about the role design and branding could play.

'Our only experience of design was putting together our company brochure,' she explains. The original Interior Surfaces identity had been developed by a commercial artist. 'We'd spent what felt like a small fortune on printing new materials, but it wasn't working. The experience left a sour taste. We felt if that's design then we don't want to play.'

Response

Design Associate Ellis Pitt was assigned to work with Interior Surfaces after it joined the Generate service. His first step was to run an introductory session with the management team to analyse the business.

'It was clear that although they had a strong track record for good workmanship and great products, services and people, the image Interior Surfaces presented through its corporate identity and marketing materials fell short of this,' says Pitt.

The company was ambitious. It wanted to double its 2005-06 turnover of £1.3m within five years. That meant attracting more business from leading, blue chip design-to-build contractors. But to achieve that the business needed these higher calibre clients to take it more seriously.

'The goal was to build a stronger brand through better design and use this to create an added value proposition, repositioning the business as more than just a supplier, as it had clear strengths in terms of quality and problem-solving,' Pitt adds.

He worked closely with the management team to analyse its customer base and target market, identifying the highest value clients and the less profitable ones.

Pitt developed a design brief crystallising the business's strengths, including its focus on quality and problem-solving, and its ambition to build sales with higher calibre clients. This was then used to brief the design company appointed to create the new identity.

Three design companies were invited to present credentials. 'It was apparent all could do the job,' says Dickinson. 'But we felt only one took our business seriously and had taken the time to understand us. They didn't talk at us, which was important. And as a result they were people we felt we could work with.'

The management team selected Huddersfield-based designers The Engine Room, impressed by their track record, enthusiasm and collaborative style. After spending time in the factory and with customers and clients to understand the work surfaces business more clearly, the designers developed three possible design solutions.

'Constant and open dialogue was essential to get the best out of this process, although we had such confidence in the (design) team we would have been happy to use one of the three ideas they came up with,' Dickinson adds. 'Ultimately, it came down to personal preference and luckily we all chose the same one straight away.'

The new corporate identity was launched in January 2007. It comprises the company name in two shades of green beside the initials i and s and strap line, 'Hardwearing surfaces for hardworking people'. This is used across all print materials and promotional literature, and a redesigned website.

 

Impact

The re-branding was received positively by many customers including designers and architects - two groups to which the company was especially keen to present itself as a problem solver. Since then, Interior Surfaces has continued to work with The Engine Room and now has plans for a new retail website. In the year ending July 2008, the company's turnover hit £2.4m.

Dickinson believes the Designing Demand process 'transformed' Interior Surface's business, although at first the management team found it a challenge.

'We were questioned about turnover, business strategy, clients, products - topics we'd never been asked about when talking to designers about previous brochures. And we were initially quite surprised by the bluntness of the recommendations,' she says.

'But it's now clear that what we had previously thought was investing in design was actually expenditure on print. Designing Demand not only helped us re-brand, it helped the management team to focus more closely on developing areas of business that are most profitable and provide greatest potential for future growth.'

Interior Surfaces' Chairman Arthur Mackenzie readily endorses this. 'When I first met the Design Associate I expected questions about colours and fonts. Instead they asked me about financial and business-related matters. The project has totally transformed my view of marketing and branding.'

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Case Study 2: Mechan

 

Background

Mechan is the world leader in the design and manufacture of mechanical handling equipment for the rail industry. Founded 35 years ago and based in Chapeltown, Sheffield, the business is split into two parts. Mechan Ltd produces jib cranes for steel processing, power generation, and for use in petrochemical and marine environments, and also mechanical handling equipment for the rail industry. Mechan Technology, formed in 1998, designs and develops a patented railcar lifting jack control system, Micro Link. This division has enjoyed rapid growth and extended its products to include railway depot protection systems.

Problem

Mechan has a solid reputation for quality, safety and reliability, plus many long-term customers. Although best known for its work in the rail industry it was keen to find new markets and also build export business. But by 2005 its image was looking dated. Faced with a static UK market and growing overseas competition, it needed to make an impact.

Response

Through Business Link South Yorkshire, Mechan signed up for Designing Demand's Generate service, linking up with Design Associate Evan Kitsell. 'I think Mechan was attracted to the programme because it wanted to understand how design could be used as a business tool but lacked the confidence and experience to select designers or ensure it was getting value for money,' says Kitsell.

At around the same time, Richard Carr joined the company as business development director. 'I'd known Mechan for about 20 years as a customer,' he says. 'They needed to be dragged out of the 1980s in terms of how they looked to the outside world and one of my first tasks was to identify our brand values and develop our image to reflect them.

'Mechan has its own internal design department but their primary focus was product design and so the image got left behind,' Carr says. 'Our reputation for quality, reliability and for being market-leading simply wasn't reflected in our identity.'

First, Carr and Kitsell set about identifying the brand's strengths by talking to senior management, employees and customers.

'We went through the process properly,' says Carr. 'I was very keen for it to be done the right way round. I didn't want to get a pretty logo and then worry about everything else later. We looked at perceptions internally and externally, plus customer feedback and used all that to work on a brand image that reflects what the business is about.'

Kitsell adds: 'We gathered intelligence to confirm what we already knew, but also to learn some new things. We talked to staff and existing customers. It was all very positive feedback - customers spoke well of the company and what it did, so the next step was to get an identity that matched people's views.'

Having identified Mechan's strengths - quality, reliability, safety and innovation - the company looked for a design consultancy. Evan Kitsell says, 'I wrote a briefing document  to tell shortlisted agencies enough about the company and its challenges to be ready for a conversation with us.'

Richard Carr chose Sheffield-based Vivid Creative, which has a range of local, national and international clients. 'I felt they would be proactive and were a tight knit team. It proved to be the right choice.'

Vivid and Mechan have forged an ongoing relationship where each understands how the other works and what Mechan needs to move ahead.

Vivid Creative Director Dan Lindley says: 'Mechan had very strong brand values - product quality and product reliability plus innovation and forward thinking combined with an "everything is possible" attitude. It also has a strong heritage and a sense of pride, and it's strong enough to compete yet small enough to care - that's what we needed to work on.'

Vivid created an image that is clean and simple and symbolises the two parts of the business - Mechan Ltd and Mechan Technology - linked together.

 

Impact

Although it's too soon to see an impact on sales, the main benefit is expected to be abroad, where the company has previously done business in an ad hoc way. Already more overseas inquiries are coming in via the new website, which gives Mechan greater reach and impact.

The company is now entering a new phase following a management buyout led by Carr, who has ambitious plans to expand the number of export agents and to focus on new product development.

'The rebrand is all about projecting a high quality, professional image to the outside world. I believe it will give Mechan a higher profile in the UK and the international market and raise us above our competitors,' says Carr.

 

 

 

Case Study 3: Spotty Otter

Problem

Little Trekkers' move to bigger warehouse and showroom premises in 2005 triggered a rethink about the business, including its brand. 'When we looked at our existing marketing materials, the Little Trekkers logo was used inconsistently. Also, having researched brand identity, I concluded neither our logo nor our marketing were consistent with the fun, friendly and funky image we wanted,' says Butterworth.

As well as rebranding the business, Butterworth and Jones decided to improve their margins by developing their own product range under a different brand to sell through third-party retailers.

The business had paid £60 for its original logo, relying on in-house expertise to refine it. But the owners realised they would need external expertise for this project and signed up for Designing Demand's Generate service through Business Link South Yorkshire.

Response

Little Trekkers had already begun discussions with a designer on a range of UV-protective swimwear, but Design Associate Lesley Page was not convinced by the results and went to clothing designers Glacier Blue for a second opinion. A meeting between Glacier Blue director Sarah Renton and Butterworth then led to Glacier Blue developing what became Spotty Otter's first product range. Renton says: 'I wasn't convinced there was a gap in the market, but the thinking evolved and it was agreed that we would develop a launch range of autumn/winter outdoor wear, with UV sunwear for a summer range to follow.'

Spotty Otter needed a brand positioning statement, and the business chose the words 'funky and functional' to encapsulate the brand's unique appeal, provide direction for the look and feel of the brand, the products that would encapsulate it and the gap in the children's outdoor clothing market it aimed to fill.

Little Trekkers worked with Lesley Page on a design brief for the rebranding and Glacier Blue introduced Butterworth to branding specialists The Engine Room, who were given two projects - rebranding Little Trekkers and creating the Spotty Otter brand. The name had already been chosen by Butterworth and partner Matthew Jones following market testing with staff, family and friends.

Spotty Otter's products and brands were developed in tandem. 'Constant dialogue between all parties was essential until initial designs were created to ensure neither side of the design brief went off-message,' says The Engine Room Creative Director Darren Evans. 'Stephanie and Matthew were very clear about their requirements from the outset and developed a strong relationship with the designers early on.'

Working with two design companies was surprisingly straightforward, says Butterworth: 'I produced mini-briefs for each element - not to dictate design but to ensure everything matched the feel we were trying to achieve. It was also invaluable that Glacier Blue and The Engine Room had experience of working together.'

The resulting identity comprises the brand name with a distinctive letter 'o' containing a swimming otter. The launch product range comprised a selection of down coats, waterproof wear and wellington boots. 'We are thrilled,' says Butterworth. 'The designs have far exceeded our expectations. We now have our own branded product range that sits quite comfortably alongside the big brands already established in our market.'

 

 

Impact

The first Spotty Otter product was sold within 45 minutes of going live on the rebranded Little Trekkers website. Distribution has since been extended offline into a number of retailers throughout the country, and the second range of clothing, also designed by Glacier Blue, was launched in spring 2008.

Butterworth says the process of creating Spotty Otter represented a steep learning curve, but that the skills she has honed are already proving invaluable. 'Because of this project, I am now comfortable dealing with design agencies, clothing designers, factories overseas and freight companies. This has had a knock-on effect on our staff, who no longer just deal with customers but wholesalers and retailers too,' she says.

'Just as importantly, our approach to design has altered fundamentally. Up front, we thought long and hard about the financial commitment - investment in the branding alone represented more than ten times our total design investment since 2002. It was a major step for us. But seeing where we've got as a result, and the extent of the role design has played, has been a revelation and has more than justified the financial investment.'