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Braun

In: Business and Management

Submitted By vivek1234
Words 2125
Pages 9
Braun AG: The KF40 Coffee Machine

Synopsis

Braun started out as a family owned radio and small appliance company in 1921. In 1955, Dieter Rams joined the company and from then on, superior design became central to Braun’s business philosophy. Braun won many design awards for their products, and excellent product design was an ingrained part of the Braun corporate culture: “Almost any employee could tell a visitor that Braun’s values were embodied in its products, which had to have three characteristics: (a) first-class design; (b) superior quality; and (c) functions or features ahead of the competition” (Braun AG, p 5).

In 1967, Braun was purchased by Gillette, a company well known for its mass-produced, mass-marketed products. For the first several years, Gillette left Braun’s product strategy untouched, but in 1980, Gillette appointed a new chairman to Braun, Lorne Waxlax. Waxlax decided a new strategy was in order for Braun. He wanted Braun to narrow their product line by getting out of cameras and hi-fi, and expand into larger consumer markets. His plan was to focus on Braun’s core technologies in personal care and small appliances, their reputation for superior design, and opportunities available in the upper end of the mass market. It appeared that this new strategy would fit well with Rams’ philosophy that good design should be available to everyone.

Through the KF 40 Coffee machine project, it became clear that these two strategies were not entirely harmonious. KF 40 was the next generation of the KF 20 and KF 35. KF 20 had won many design awards and was very expensive. KF 35 came out a few years later. It was cheaper for the consumer, but the design department was never completely satisfied with it, and it only enjoyed average sales. The newly introduced KF 40 would have a range of models (to minimize tooling investments) and would have to

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