the big interview
consumers define their gardens, and offering a much broader range of products. “Grange ultimately is about defining gardens, and the aim really is to broaden our range and continually introduce new products. With my background, particularly on the automotive side, where you have continuous product development, one thing you do notice coming from outside into this industry, is that product development can tend to be a one off, where you present your next year’s range at Glee, and the next year you do the same thing again. That’s something I think we’re going to be different with at Grange, because we’re going to continue to introduce new products right the way throughout the year, bringing out new products, new designs, new specifications, so that’s a new take on it coming into the business from outside.”
He continues: “It’s not just us sitting here in Telford deciding what our customers want. We do a lot of work with focus groups, of different profiles, finding out how people use their gardens, what they want, and there’s some interesting findings coming out of that. We’re finding there’s an increasing trend in people wanting ‘collections’ that match with products, and people wanting a greater degree of compartmentalising of their gardens. When I say Grange is broadening its range, we’re following what our customers say and listening to them.”
Neil adds that this approach was in evidence with the new ranges unveiled at Glee. “We had the Urban range with cleaner lines and a sharp appearance, which is positioned for a younger audience, maybe 40 and below, and the Contemporary range, with a modern look, which complements the more traditional range,” he says. “We’re trying to segment, and continue to listen to customers, and that’s what is going to be driving the business in the next three to five years.”
The reward has been in retailer reaction, Neil notes. “Reaction has been very positive so far, both for the designs and quality of the new ranges,” he says. “We feel that they see us moving in a responsive way. Our role, when we’re partnering with retailers, is to jointly provide what consumers want. We feel very confident that the ranges we’re bringing out respond to that, and I think we’re doing the right things. Feedback has been good. “It’s a key thing for us to allow our customers to be able to differentiate, to have a product range that’s able to be stylish, of a continually higher specification, in order to differentiate us from others in the market place. A fence panel is not just a fence panel. A Grange fence panel is a high quality panel, and we’re continuing to bring out products of the same if not higher spec. I think our retail partners are welcoming the fact that we’re introducing new products, they’ve seen the rebranding, and that we’re taking a broader view of the market.” That emphasis on quality is key to the company’s reputation, Neil believes. “There are
GCU November 2015
two areas that set us apart,” he explains. “One is quality, and the other is our supply chain. Our ability to respond to major storms in this country is critical. I think quality defines us, I think supply chain defines us, and I would like, in two to five years’ time, for product and range development to define us.”
The wider picture
Looking at the wider perspective, Neil believes the market is positive. “Taking the macro situation, the market is growing,” he says. “It’s a healthy market, we see lots of things happening in our research that boosts it; people are staying at home more, spending more on the home and garden generally. I think the business climate in this country is positive, with a stable government, improving earnings, so the market is growing slowly but positively.
“For us, it’s a highly competitive market, and that’s how it should be. Competition is good for us, and customers are, quite rightly, demanding more from us in terms of product, in terms of price, in terms of innovation and product development and that’s healthy, and that’s what we have to get right, because consumer tastes are changing and demographics are changing, and our company wants to be at the forefront of that. It’s a big opportunity for us; we have the heritage, we have the brand, and we have the solidity of an organisation of people who know the product, who know the fencing industry, and we can build on that and satisfy more customers. That’s really what we want to do.” Even in a positive market, retailers have to consider their offering. “In retail, you’ve got to get the combination right,” Neil comments. “It’s striking a balance between anticipating and delivering on what customers want, but also securing the supply chain. This is a highly seasonal business, and you’re involved in making key decisions on range early in the process, making the inventory, making sure your suppliers are lined up, and that’s why we’re trying to help our customers with our range expansion and supply chain improvement. The biggest challenge is balancing the two; anticipating those customer demands and making sure you’ve got supply chain partners, such as Grange, who can support you in supplying to the end user.” For suppliers, Neil sees opportunity rather than challenge. “We need to focus on the customer,” he says. “I think we should do more research, finding out what customers want not just now but in the future. The lead times for our product are not necessarily short, so you’re having to make decisions now which could be effective six months, a year, a year and a half into the future. From our point of view, it’s identifying those needs, getting the range right and making sure that we put our investment in the right areas.
“A lot of our decisions come from our partnerships with our major retailers, our major
customers, and we’re in continuous discussions with them. We’ve not got 100% of the wisdom here in Telford, we want to listen. We want to be able to anticipate demand. This is the challenge for the company really, going into a broader range, responding to consumer needs and our customers.”
That relationship is essential, Neil adds. “We’re continually working with our retailers,” he says. “It’s not Grange in isolation. We don’t regard it as a customer/supplier relationship; it’s a partnership with shared destiny. In the majority of cases our retail customers are closer to the end user than we are so their feedback is vital and their input is vital to that whole process. The consumer, through our partners, has a major input on the directions me and my company take, along with the research we undertake. I’m pleased we have a process here that’s customer-led.”
Neil also appreciates retailers who rise above their market challenges. “Retailers that I admire would probably go into two areas,” he expands. “I admire the supermarket chains, because when you talk about anticipating customer wants, they’ve got an enormous job anticipating what customers want to buy this weekend and having the supply chain logistics to back it up. That’s what I think the challenge we have is, matching the customer needs with the supply chain support. I learned a lot in my early automotive days supplying to the supermarket companies.
“The other retailers I admire are in the passenger car markets. Your major car producers, who have got to go through this same process, the logistics and supply with the manufacturing backup, and also differentiating themselves. It’s really interesting watching the car manufacturers nowadays trying to differentiate themselves from their competition.”
He adds: “In a smaller scale, we have the same challenges at Grange, merging this design-led, customer-led offer but making sure we are backing it up with a supply chain and high specification product.” For any suppliers considering entering the sector, Neil believes there are several key elements to bear in mind. “I would say that any new supplier would need three things,” he explains. “One is a pretty clear view of what customers want, today and tomorrow. You’ll never find it out completely, but do your best to find it out. Secondly, whatever you’re going to do, make sure you’ve got some clear differentiation between yourself and your competitors. What marks out your company from somebody else? Thirdly, whether it is a calm climatic situation or you’ve got storms which are blowing half of the UK away, you’ve got to be able to supply your customers. “Those are the three things; know your customers, how different are you, and making sure you can deliver, because it doesn’t matter if you can do the first two, if you can’t deliver you’ll let down a lot of customers.”
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