Name: Justine Kaye B.

Porcadilla

Subject: MrkMn 6-F1

CASE ANALYSIS

Executive Summary

The company MPO Fenêtres (Menuiserie Plastique de l’Ouest) was one of the first French
companies in the PVC/carpentry sector to offer a customized service. However, at that time, in France,
very little was known about PVC, carpentry and double-glazing technology: these markets were still in
their infancy. During that time, consumer preferences vary greatly from one country to another, it was
very difficult to market a standard product globally, which partly explains the customisation this
phenomenon. As time passed by, the rise of energy prices resulted to individuals being more likely to
invest in better insulating materials for their houses in order to reduce their energy bills. So it was
important innovate products that are eco-friendly, energy-saving, but at the same time has an improved
technical attributes. Moreover, since 1975, the statute on thermal regulation has imposed rules on
French companies regarding the energy consumption of buildings. The Thermal Regulation of 2012 (“RT
2012”) has been in force since July 2011 for the tertiary sector and public buildings, and from 1 January
2013 for residential houses. The main objective is to achieve self-sufficiency for energy purposes in
buildings by 2020. Thus, this regulation promotes the use of more efficient technologies for the
production and retention of heat, as well as the production of renewable energy. Many standards apply
to the design of buildings, including windows and doors. In addition, companies use independent
inspection and certification to prove the increased performance of their products, and to act as a
guarantee of their quality. Since 1 March 2007, MPO Fenêtres has committed itself to producing more
eco-friendly windows, offering NFcstBat-certified eco-friendly windows and triple-glazed Visio windows.
However, triple glazing products are much more expensive to purchase, and the acoustic insulation
offered is not necessarily better than that of “acoustic double glazing”. Therefore, the company needs to
ensure the best promotion in order to convince clients to invest in these products. With regard to
marketing and distribution, the business is customer-oriented: therefore MPO Fenêtres has chosen to
keep control of the entire supply chain. Today, the continuing strong growth of the market has
encouraged MPO Fenêtres’s CEO to rethink the organizational model of its agencies. In order to improve
production performance and increase the commercial strength of the company, an audit of its business
performance both sales and production was conducted.

Point of View

The case study wants to portray how MPO Fenêtres has started and how are they going to succeed in
launching marketing its product successfully in order to succeed in the PVC window market.

Statement of the Problem

This case study is based on real events which occurred in 2010. It describes the launch by MPO
Fenêtres of new windows, characterised by improved thermal performance, achieved by the use of
triple glazing. This company is based in the French region of Orne. It has 200 employees, and realized a
turnover of over €35 million in 2010. It has positioned itself as an innovative company, always seeking to
apply the latest technical developments. In the current economic crisis customers are more careful with
their money, and think more carefully about potential purchases. In recent years it has been shown that
consumers’ purchasing behaviour has evolved, and that criteria such as sustainable development and
environmental protection are now among the factors that may influence purchasing decisions. In this
sense, an “ecological consciousness” has emerged. Not only the Grenelle de l’Environnement (a French
forum for the discussion of issues relating to sustainable development) and government standards, but
also tax credits associated with the purchase of certain goods, have affected the housing industry, and
therefore also window manufacturers. Rebuilding and renovation are also subject to these factors. In
this context, the launch of windows made of PVC, with their high thermal performance and technical
and competitive advantages, was important for this SME. It was the company managers’ responsibility
to launch and market these products successfully. Considering that MPO Fenêtres has committed itself
to producing more eco-friendly windows, offering NFcstBat-certified eco-friendly windows and triple-
glazed Visio windows (which are much more expensive) following the rules imposed by the Thermal
Regulation, it is quite challenging for the company on how to convince clients to invest in these
products. Thus, how can MPO Fenêtres succeed in the PVC window market?

Objectives

To be able to illustrate the practical application of the theoretical concepts on marketing strategies

To be able to review the fundamentals of market analysis, demonstrate the criteria used for strategic
decision-making and implement a business strategy.

Areas of Consideration

 Over recent years, the market has grown steadily, but different forecasts by professionals are
more pessimistic.
 The joinery market is rising energy prices. The price of energy has been increasing for several
years. What might have appeared to be temporary fluctuations in market prices now seem to
have become a settled trend which is unlikely to change.
 The impact of the rising energy costs on market activities related to the insulation and
improvement market in construction
 The cost of inaction with regards to energy is becoming greater than investing in new materials.
In the current financial crisis, faced with both price increases and decreasing purchasing power,
the financial resources of households are declining.
 Suppliers of the various types of products which enable energy savings may therefore find
themselves in direct competition
 MPO Fenêtres 10 years to take off the company due to the lack of knowledge about PVC,
carpentry and double-gazing technology. The company had losses from the begging, however,
managers invested in new offices and production buildings.
  Product portfolio: from 1970 to 1997 they had basic products but from 1997 onwards, new
product ranges were introduced in order to widen the target market. In1997, a range of high
quality windows made of aluminium and wood and in 2007, windows featuring (+super heat)
with insulation value made of aluminium with a thermal break. Accounting for 10% of the
company’s turnover.
 In 1970, the company specialized in public and collective markets with 60% turnover
 In 1995, sales development to individual consumers with 40% turnover- 200 employees-
€35million of turnover; significant growth over the last decade.
 Key success factor: Innovation. Technical and technological innovations are constantly sought, as
represented in its range of low thermal coefficient products. Exceeding the market standard in
terms of high quality commitment.
 Quality service: products developed within the framework of sustainable development and
certification for the installation of windows obtained in 2011.
 4 founding values: innovation, perfectionism, cheerfulness and honesty with all the company’s
stakeholders.

Alternative Courses of Action

1. MPO should improve its Marketing Distribution Strategy

The fact that MPO Fenetres is customer-oriented which means they keep control of the entire supply
chain, right through from the order to delivery to (and sometimes installation for) the customer, it is
important for them to take advantage of this strategy. It allows them to collect valuable data on
customer buying habits, distinguish the company from the competition, respond to product
performance and customer feedback, get products to consumers faster, avoid sharing profits with a
third-party distributor, and build relationships with its customers. These are just some of their
competitive advantage, thus they have to make sure to continuously improve its marketing distribution
strategy. They can also invest in more new tools to improve the flow for window fabricators using small
work cells to reduce inventory, speed production and provide simple but accurate control. In this way,
the company can be able to increase output, increase quality, and improve workforce involvement and
skill.

2. MPO should invest in Employee Seminars and Training and Customer Service Coaching

Considering that the company is committed itself to producing more eco-friendly windows, offering
NFcstBat-certified eco-friendly windows and triple-glazed Visio windows which are a lot more expensive,
it is important for their employees to adopt a customer-focused approach. For this reason, it is essential
that sales staff receive customer service training and that training is backed up with customer service
coaching activities. Every team in the company will have its own unique training and on boarding.
However, some training can be cross-functional and applied to every department in the company. If
every new employee at the business begins with customer service training, they'll become more familiar
with customer-focused strategies. So, when the company implements a new growth strategy, they'll
already have the customer's best interests in mind. Additionally, customer service training can help
them become more familiar with user needs and understand the common behaviours of its customer
base. It also helps the company ensure that each and every employee has enough knowledge about
PVC, carpentry and double-gazing technology to get rid of what had happened before----10 years take
off due to the lack of knowledge.

3. Invest in sustainability and take advantage of the Thermal Regulation

Considering that the regulation promotes the use of more efficient technologies for the production and
retention of heat, as well as the production of renewable energy, it is best if MPO Fenêtres to invest in
sustainability throughout its entire business operations, including things customers can readily see and
things they can’t. The company should strive hard to become the most eco-friendly brand in the PVC
window industry in France. In this way, they can quickly gain a powerful reputation for their
commitment to the environment, and their ability to inspire more sustainable practices. They have to
think beyond the basics of their CSR initiatives and start making a real difference in the world, through
producing sustainable products and services, adding new roles like Chief Sustainability Officer, and
publishing sustainability reports for end-to-end transparency. Thus, joining the ranks of environmentally
friendly businesses is a great way to succeed in the carpentry industry.

Recommendation

In order for MPO Fenêtres to succeed in the PVC window market, it is highly recommended for
the company to improve its marketing distribution strategy, provide employees the essential seminars
and training and customer service coaching that they need, and at the same time take advantage of the
Thermal Regulation.