Abstract
In the late 1990s in Japan, lingering depression was taking a toll on the housing equipment industry as new residential construction continued to decrease. Cleanup Corporation (Cleanup), which ranked third in the kitchen industry at the time, was no exception. Business was stagnant and price competition was getting out of control. Cleanup decided it was time to leave the price war behind and compete with added value. The company launched a project for a full model change of its flagship product “Cleanlady” which accounted for 40 percent of its sales.
Much to everyone’s surprise, Toru Fujiwara, the project leader chosen by Cleanup’s management, was an in-house designer with no experience in kitchen design. Yet the project became a great success and the new “Cleanlady” turned into a smash-hit. Fujiwara’s design innovation resulted in the development of the hallmark “Floor Containers” with “clearly visible” aluminum front design. Cleanup’s sales showed a dramatic turnaround and the company moved up to second in ranking, hitting record high operating profits in 2003. The case describes the challenges faced by Fujiwara and his team and also outlines how “creativity” came into full play to develop a value added product targeted at a new market.
Issues: Innovation and Product development, Product strategies for new market.
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