How useful, functional and how well you like that furniture is something persons in the office furniture industry do think and care a lot about. With so many well-known and well-respected companies in this industry, consumers are besieged with more than enough choices and options. It's furniture manufacturers' challenge, then, to monitor and stay ahead of this growing and changing industry.
This high level of industry activity has been leashed by Kennedy Research, Inc., through Office Trends, a quarterly industry tracking study. For manufacturers of office seating, systems, components, telecommunications equipment supplies and the industry trade association, KRI has collected insights and information on the office industry from designers, dealers and facilities managers. Through this panel of key industry experts drawn primarily from top dealers, contractors, general managers, design firms, architects and Fortune 500 companies, KRI provides up-to-date, relevant information and a nationwide perspective and view of the office environment, its equipment and furnishings.
Each study measures sales expectations, tracks trends in product, pricing and promotion and analyzes changes affecting office environment, equipment and furnishings. Specific product areas are explored each quarter to measure awareness and image perceptions of major manufacturers.
Studies have involved subjects such as: new product introductions, demand for full-height movable walls, use of file cabinets in open offices, evaluation of furniture systems, design concept evaluations, compatibility of office systems with electronic equipment, analysis of office telecommunications needs, installations of furniture, fixtures and equipment in new buildings, advertising awareness studies and brand image evaluations.
"Office trends helps manufacturers, designers and others keep a finger on the pulse of the office furniture market," says Richard Kennedy, president of KRI. "We're also able to chart trends and provide insights no other source can match."
Study objectives
Specifically, the objectives of the study are as follows:
1. To measure sales expectations for each quarter;
2. To track average delivery times;
3. To determine awareness of special promotional activities or programs;
4. To track trends in office furniture sales in these areas: product mix (wood vs. metal, budget vs. high quality, systems/computer support/traditional furniture and case goods), pricing, use of open vs. private offices and new vs. renovated space; and
5. To measure awareness and image perceptions of major office furniture manufacturers.
To obtain the needed information, KRI uses a panel of key industry experts who participate in an ongoing basis to ensure continuity of results. The panel is structured in this way:
1. 100 dealers from companies such as Steelcase, Herman Miller, Haworth, Allsteel, Knoll, Kimball, Westinghouse, GF, and Hon.
2. 100 major interior designers and
3. 100 facilities managers from Fortune 500 industrial and service firms.
The dealers and interior designers are drawn from six regions to obtain a geographically balanced sample:
1. Northeast: Boston, Philadelphia and Washington, D.C.
2. Midwest: Detroit, Chicago and Cincinnati
3. South: Atlanta and Tampa
4. Southwest: Dallas and Phoenix
5. West: Los Angeles and San Francisco and
6. New York City.
To facilitate participation while minimizing respondent "burnout," a mail questionnaire is used. The panel is initially recruited by telephone and some over recruitment is done to provide for respondent fall-out. Monetary incentives are offered to participants along with a summary of findings to encourage participation. Dealers and interior designers complete a questionnaire each quarter; facilities managers do so only once a year.
To maintain a reasonable questionnaire length, dealers and designers are asked a base of core questions each quarter with certain issues addressed only once or twice a year.
Core questions
The core questions cover the following issues:
1. Sales expectations/product mix
a. Are order levels expected to increase, decrease, or remain unchanged in the next three months? Why?
b. What is the product mix relative to wood vs. metal, budget vs. high quality, systems vs. computer support vs. traditional desk and case goods? Are any of these expected to change in the next three months?
2. Delivery times
a. What is the average delivery time? Is it improving/worsening?
b. Are there major variations by type of furniture or manufacturer?
3. Marketing/promotional activities
a. What new promotions are you aware of?
b. How/where did you learn of them?
4. Price levels
a. What is the average price being paid for a work station? Task chair? Mid-management chair?
5. Open vs. private offices
a. What percentage of furniture sold/specified is for open/private offices?
b. For what applications are open/private offices being specified?
Supplementary topics
Supplementary topics to be covered each quarter are as follows:
- Evaluation of systems furniture:
For what applications? Percentage wood/metal? Percentage new orders/replacement? Average number of work stations/order? What price range? Percentage budget/mid/high quality? What brands? Brand leaders in terms of design, quality, price/value?
- Office seating evaluation:
Percentage of new orders/replacement? Features desired? What brands? Brand leaders in terms of design, quality, price/value? - New vs. renovated space:
Percentage of furniture sales to new vs. renovated space? Types/brands sold for new. Types/brands sold for renovated. - Image evaluation:
Who are the top three manufacturers in terms of design? Who are the top three in terms of quality? Who are the top three for price/value? - NEOCON impressions:
Which displays did you find particularly impressive? Which new products were you impressed with? What foreign influences did you notice? - Furniture purchases made during the past year: Type, price range and manufacturer.
- Furniture purchases expected for the coming year: Type, price range and manufacturer.
- Percentage open vs. private offices; expected change
- Awareness of furniture manufacturers
- Top three manufacturers in terms of design, quality and price/value
- Evaluation of traditional furniture and case goods, including vertical and lateral files: For what applications are traditional furniture being specified? What brands are being specified? What price range?
- Computer support furniture evaluation:
What types of companies are using? Features desired? What brands are being specified? Who are the brand leaders? What price range?
Proprietary questions
Clients subscribing to the study also have the opportunity to insert proprietary questions, the results of which are made available only to the question sponsor.
Interview results are coded and edited for completeness and accuracy. Data processing provides cross-tabulations of approximately 18 variables such as type of respondents, dealer affiliation and region.
Results are then analyzed and a summary report prepared. This report includes charts and graphs tracking changes overtime.
Steelcase
While Office Trends has only been available for about one year, it already has attracted a long list of subscribers from highly respected companies nationwide. Steelcase, a major designer and manufacturer of office furniture headquartered in Grand Rapids, Mich., is part of Office Trends' founding subscribers, says Richard Arnold, manager of marketing research at Steelcase. The study is attractive to the company and the office furniture industry alike.
"In the past, our company and the office furniture industry in general have not done a significant amount of marketing research regarding marketplace perceptions," says Arnold. "We have a need to track major issues in our industry, to have some sort of monitoring system.
"The core items are of interest to us," continues Arnold. "These are order expectations, in other words, what we can expect in future business activity. It also gives us the marketplace perception of our delivery lead times in comparison to the competition, and it gives us an indication of discounting and pricing levels in the industry."
The results of the study have a broad distribution within Steelcase. First, it's compiled into an executive summary outlining the areas of interest and concern to Steelcase. "We internalize the executive summary and distribute it to sales and marketing managers, all who have contact with furniture customers, dealers or the design community. The information helps them better understand the competitive environment." The information is also used to validate customized research the company has done or to bridge the gap between the time one study is conducted and before it's conducted again.
"Office Trends is a periodic, cost-effective way to monitor key business activity issues and to address special topics in detail throughout the year," adds Arnold.
Allsteel
Allsteel, the Aurora, Ill.-based contract furnishings manufacturer, is another Office Trends’ initial subscriber. Ken Malik, director of marketing strategy and planning at Allsteel, says the tool is used because "we need more specific information about our industry but it's often too cost-prohibitive and time-consuming to research on our own. It's the only tool that reaches a cross-section of industry people. It also enables us to submit proprietary questions which provide an extra access point to the market."
Malik says the study is especially important when the company is embarking on a specific product or program.
"It provides another data point in our decision-making process. It's an additional checkpoint that may initiate a different course of action or rethink the current proposal."
The results go to the company's vice president of marketing, product managers and staff members who "use it as a reference point in our planning and program development. It's another important input in the decision-making process."
Adds Malik, "In this industry, there's little other type of data available at the micro-level, and the KRI report gives us added input to stimulate our thinking. "
Kimball International
Like the two companies previously mentioned, Kimball International, also one of the founding sponsors, has a similar need for Office Trends. According to Martin Vaught, assistant to the senior executive vice president of marketing, the Jasper, Ind., company is continually monitoring all aspects of the office furniture industry and its involvement in the marketplace.
"It's somewhat of a mirror or added resource," describes Vaught, "to supplement other data we use, such as that supplied by our market research personnel and industry and government information."