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Design
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Bringing the Future into

Global Brands
Tony Kim, Professor of Design Management, IDAS,
Hongik University, Korea

Reprint #06172KIM66
This article was first published in Design Management Review Vol. 17 No. 2

Adding Value Through Design

Copyright © Spring 2006 by the Design Management Institute . All rights reserved. No part of this publication may be
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 DEVELOPMENT

Bringing the Future

into Global Brands
by Tony Kim

I n a competitive environment where product cycles are

growing shorter and shorter, design managers need to
identify “opportunity gaps”—unmet needs and attributes
POG
that can be translated into an innovation or a next-generation
project brief. Tony Kim describes how this can be done and cites
several Korean companies that have profitably implemented this
type of forward-looking investigation.

What do Bill Gates of Microsoft, Jeff
Bezos of Amazon, Byung-Chul Lee of
Samsung, and other successful business
people have in common (besides a hefty
bank account)? They were all looking
for a share in future opportunities. Bill
Gates was a Harvard student and there-
by practically guaranteed a good job at
graduation. He had an instinctive feel-
ing, however, that there was an
untapped opportunity lurking around
software for personal computers. Gates
quit Harvard and started Microsoft with
Paul Allen, his long-time friend. The
rest is history. Jeff Bezos was a rising star
on Wall Street, a young vice president
for DE Shaw & Co., the well known and
technically sophisticated hedge fund.
But he, too, anticipated a great poten-
tial opportunity in the new Internet
and quit his prestigious job to start an
online book-selling business. Samsung
founder Byung-Chul Lee was success-
fully running Samsung’s Cheil Sugar
and Cheil Textiles division in the 1960s.
Tony Kim, Professor of After years of long discussions with
Design Management, IDAS, business friends in Japan, however, he
Hongik University, Korea saw the possibilities in the semiconduc-
tor industry and invested a huge
amount of the company’s capital in its
semiconductor division despite consid-
erable resistance from his fellow execu-
tives, who worried that this was too
risky a move. That foresight and action
has made Samsung Electronics a
world-class electronics company.

66 Design Management Review Spring 2006


Of course, all three entrepreneurs were also
interested in increasing market share for their
companies. Increasing market share is a visible
effort. It brings practical profits and is pre-
dictable, whereas securing a share of an oppor-
tunity is invisible and visionary. The future is by
definition not really predictable, and neither are
future sales and profits.
Even if you don’t think of it this way, design-
ing a new product brand is all about trying to
secure a share of a future opportunity. To
achieve an “opportunity share,” a new brand
should be designed and developed with an eye
to trends and consumer lifestyles that are just on
the horizon.
Opportunity Share in Brands
The best products are designed in a way that
connects with the lifestyle and values of intend-
ed customers. However, the services that product
brands provide to their current customers were
designed and developed to satisfy the lifestyle
and values of their past customers. Although
these customers are still using the product
brands and have become accustomed to the
services they provide, life does go on.
Consumers are daily exposed to social, econom-
Higher Expectation or Unmet Needs
PO
EC
G
ON
O M
IC
Current Product/Service
Figure 1. A product opportunity gap (POG) is a void between what is currently on the market and the as-yet-unproduced new or significantly improved
products that may result from emerging trends. These trends are driven by changes in PESTE (political, environmental, social, technological, and econom-
ic) factors. Current products were designed reflecting emerging trends in a time (T) that has passed. However, consumers are already expecting a higher
level of service or an improvement in product design at some time (t) in the near future.
Bringing the Future into Global Brands
ic, and other changes, and though some of these
changes are probably barely noticeable, they
make a difference, spurring trends that motivate
customers to make changes in their lifestyles and
to expect a different level of service. This split
between current and expected service levels is
defined by Jonathan Cagan and Craig Vogel as
the product opportunity gap (POG),1 in recog-
nition of its possibilities for creating new brand
and market segments.
PESTE Factors
Trends are formed by changes in political,
environmental, social, technological, and eco-
nomic (PESTE) factors. Understanding changes
in PESTE factors provides better clues to future
trend and future customer values and, thus,
brand futures. Savvy companies can then use
the product development process as a way to
close the product opportunity gap. Figure 1
demonstrates how PESTE factors drive emerging
trends and, subsequently, changes in consumer
values that are then reflected in their future
buying habits.
1. J. Cagan and C. Vogel, Creating Breakthrough Products
(Princeton, NJ: Prentice-Hall, 2002).
 Emerging Trend via PESTA at (T+t)
SO
CIA
L
Product Opportunity Gap
TE
CH
.
 Reflecting Trend via PESTE at (T)
Design Management Review Spring 2006 67
Adding Value Through Design
Political PESTE factors focus on global and local
issues, such as:
• The growing power of militant Islam
• China’s desire to secure the oil shipping
route through the Indian Ocean, and the
US’s and India’s attempt to block that effort
• North Korean nuclear proliferation and the
US’s effort to hinder it
Environmental factors include such issues as:
• Water shortages
• The need for waste reduction
• Global warming
• The rapid depletion of oil and other natural
resources
Social PESTE factors include:
• New family and work patterns
• Health issues
• The aging of the population in advanced
countries and the population explosion in
underdeveloped countries
Technological factors include:
• Nano- and biotechnology
• The discovery/invention of new materials
• Robotics
• The explosion in digital media
Economic factors focus on:
• The discretionary income people perceive
they have, or expect to have
• Psych-econometrics
• Widening gap between rich and poor
• Retirement of baby boomers
Where the development of consumer products is
concerned, the influence of political and envi-
ronmental factors on trend formation is less
important than the influence of social, technical,
and economic factors. The case studies that fol-
low involve only social, technical, and economic
factors.
Consumer Value Opportunities
Customer value systems change as time goes by.
For example, in the 1960s and ’70s long hair was
popular, perhaps in emulation of the Beatles and
other celebrities. Now (conveniently, for many
balding baby boomers), Michael Jordan and
other sports celebrities have made shaved
68 Design Management Review Spring 2006
heads popular.
Here was an example of a gap between the
service level of current products and the service
levels customers expected as the result of a new
trend. When Philips saw this product opportuni-
ty gap, it introduced the HeadBlade, which
became an immediate success in the market.
Spotting future trends as they emerge is the
province of such organizations as the World
Future Society, which recently published a report
offering up 53 trends that can be transformed
into design attributes that could successfully
affect future product development.2
To analyze consumer value systems, Cagan
and Vogel developed a value opportunity analy-
sis (VOA) that breaks down consumer value
opportunities into seven categories: emotion,
aesthetics, identity, ergonomics, impact, core tech-
nology, and quality. Let us look at the attributes
of each category in detail.
Emotion
All the attributes listed below support a prod-
uct’s ability to contribute to the user’s experi-
ence. However, emotion defines the essence of
that experience, including:
• Sense of adventure, excitement, and
exploration
• Feeling of independence, freedom from
constraints
• Sense of security, safety, and stability
• Sensuality—a luxurious feeling
• Confidence, self-assurance, motivation to
use the product
• Power—authority, control, feeling of
supremacy
Aesthetics
Aesthetics focus on sensory perception. The five
senses (visual, tactile, auditory, olfactory, gusta-
tory) are all important attributes.
Product Identity
Product identity supports the user’s statement
about his or her individuality and personality.
• Personality: The ability to differentiate from
the competition; connection to the rest of
the products produced by the company
• Point in time: For a product to be successful,
2. M. Cetron, O. Davies, “53 Trends Now Shaping the
Future” (Bethesda, Maryland: World Future Society, 2005).

it has to capture a point in time and express
it in a clear and powerful way.
• Sense of place: Fits into the context of use
Ergonomics
Usability is the main focus of the ergonomics
attribute.
• Ease of use: The ergonomics of the size and
shape of the components a person interacts
with should be logically organized and easy
to identify, reach, grasp, and manipulate.
• Safety
• Comfort: A product should be comfortable
to use and should not cause physical or
mental stress during use.
Impact
As was seen in the Enron case, corporate social
responsibility becomes more and more impor-
tant because it is connected with the customer’s
personal value system.
• Social: Product effects on the lifestyle of a
target group, from improving the social
well-being to creating a new social setting
• Environmental: Effect on the environment
is becoming an important issue for con-
sumer value; green design prevalence is one
example.
Core Technology
This must enable a product to function properly
and to perform to expectations, and it must
work consistently and reliably.
• Enabling: Core technology should be
appropriately advanced to provide
sufficient features.
• Reliable: Technology should work consis-
tently and at a high level of performance
over time.
Quality
The precision and accuracy of manufacturing
methods, material composition, and methods of
attachment is the focus.
• Craftsmanship: Fit and finish
• Durability: Performance over time
Foresight, Innovation, and Design
To design a product that overpowers the compe-
tition, or to develop a new product that accom-
modates future needs of customers, requires
foresight, innovation, and design. Foresight leads
to the selection of an appropriate set of cus-
Bringing the Future into Global Brands
tomer value attributes. Innovation is the process
of lifting current value attributes to a higher
level to meet the expected or unmet needs of the
target consumers. Design implements that inno-
vation.
The following case studies exemplify the use
of this method.
CJ Corp.’s Het-Bahn Rice Bowls
In 1995, the design team at Korea’s CJ Corp.
believed they were observing a demographically
driven trend in Korea—a trend toward more
single people, as well as an older generation that
would have a greater interest in eating healthful-
ly. People would have more
leisure time, and there
would be an increased
interest in life outdoors.
Also, microwave ovens
In 1995,
would be more available to the design team at
the general populace.
Rice is, of course, a sta- Korea’s CJ Corp.
ple food in Korea. But sin-
gle people—single men,
believed they were
especially—often did not observing a demo-
have the time to cook rice.
graphically driven
(There is also a prevailing
belief that cooking rice is
mom’s job.) Pre-cooked
trend in Korea—a
rice was available in the trend toward more
marketplace, but as the CJ
team knew, it was of low single people, as well
quality and was not partic-
ularly tasty. On the other as an older generation
hand, a tasty bowl of rice that would have a
in a single-sized package
cooked in the microwave greater interest in
was a possibility.
The CJ team, in essence, eating healthfully.
compared the service level
of the current cooked-rice
product to the service level
of a satisfying bowl of rice cooked in the
microwave. The new product was called Het-
Bahn (fresh-cooked rice, in Korean). The core
concept was “tasty and convenient rice cooked
by mom.” The brand concept was fresh and
quality rice cooked by mom—but with a more
modern Korean image that included stylish peo-
ple aged 20 to 30. Each package contained either
half a dozen or a dozen easy-open, single-size
Design Management Review Spring 2006 69
Adding Value Through Design
servings (Figures 2 and 3).
The success of Het-bahn in Korea opened up
an opportunity to extend the product into dif-
ferent types and flavors of rice, porridge, and
soup. Het-bahn was so successful in Korea that
CJ launched a CJ Gourmet brand in the US in
August 2005. The concept was “natural, premi-
um, and convenient.” It offered Het-bahn with
bulgogi (Korean sesame steak) sauce, as well as
“crunch-oriental” and kimchi-salsa flavors. The
products are now available at Gelson’s and
Mayfair grocery stores, and Het-bahn has great
potential to be a global brand.
Figure 2. CJ Corp.’s Het-bahn single-serving microwave rice product
offered a great improvement over existing versions, and filled a product
opportunity gap that led to a number of product extensions.
Pre-cooked Rice Bowl: Het-Bahn
PO
G
Economic
• Spend the money
for healthy life
Cheaper micro
wave oven
Conventional Rice Cooker
Figure 3. The POG that CJ Corp.’s Het-bahn microwave rice filled.
70 Design Management Review Spring 2006
Hauzen: An Integrated Brand for Samsung’s
Home Appliances
The market situation for Samsung Electronics’
home appliances was difficult. There were as
many as 20 brands of large and small “white”
appliances, all of medium quality and with min-
imal identity. However, the Korean home appli-
ances market was trending toward the larger and
more luxurious, and Samsung’s had lost their
competitive advantages. A new product develop-
ment team was formed. Their foresight was that
the market was experiencing a new paradigm in
living space, and appliances were beginning to
be considered part of interior design, especially
for singles and DINKs (double income, no kids)
couples living in limited space. Advanced tech-
nology and convenience were very important.
Hauzen became Samsung’s new integrated
home appliance brand. A high-style, high-touch,
premium brand, it features advanced technolo-
gy, Zen-style design, and a sophisticated color
remodeling system (Figure 4). It featured the
world’s first nano cleaning technology for silver,
touting 99.9 percent sterilization and a 92 per-
cent reduction in electricity. Hauzen captured a
future trend, as well as a new paradigm, for
home appliances (Figure 5).
Socio-cultural
• Change to instant food
• Well being & LOHAS
• Leisure & travel increase
• Increase of singles and DINKs
Product Opportunity Gap
Change of lifestyle
Technology
• Vacuum package tech for long shelf life
• Gourmet cooking development
 Bringing the Future into Global Brands

Advanced technology

Well-refined design, ZEN style

Color remodeling system

New lifestyle of Hauzen

Figure 4. Samsung’s Hauzen home appliance line traded on the understanding that appliances were beginning to be considered part of the interior
design scheme for homes and apartments where space was limited.

HAUZEN: Integrated Brand for Home Appliances

Socio-cultural
• New paradigm in living space
• Interior design focus
• Singles and DINK
• Fashionable, colorful appliances
PO
G

Economic
• Environment conscious Product Opportunity Gap
• Severe competition Change of living space

Technology
• High tech. development (nano)

Individual Home Appliances

Figure 5. The POG filled by Hauzen’s line of products.

Design Management Review Spring 2006 71

Adding Value Through Design

STC’s EI Solutions based on “energy water”—STC’s patented bio-

In 2000, a Korean life sciences company called
STC acquired a British high-tech cosmetics
brand that offered biotech-based skin care. STC’s
cosmetics development team scanned PESTE
factors and foresaw that there was room for
improvement (Figure 6). Consumers were
annoyed by eye shadow that smeared when wet.
Aging consumers were looking for premier anti-
aging makeup and premium skin care. STC
came up with Energy Water Innovative
Solutions (EI Solutions), a line of products
tech cleansing solution. EI Solutions makeup not
only soothes skin but improves skin tone, as
well. Initially, EI Solutions offered 19 product
lines and a consistent brand identity reflecting
prestige, simple and global. The package image
emphasizes advanced technology and unique
skin-care solutions. Even though its technology
was developed in Korea, the brand was produced
and launched in the US, and most American
consumers think of it as an American high-tech
brand (Figure 7). It has since gone on sale in the
European Union and will be sold in Asia, as well.
EI Solutions was successful because STC grasped
the unmet needs of consumers looking for color
makeup combined with skin care. The company
set a new paradigm in innovative cosmetics and
managed the brand asset effectively.

Figure 6. STC’s EI Solutions Color Makeup was aimed at consumers
looking for premier anti-aging makeup and premium skin care.
Conclusion
World-class corporations focus not only on mar-
ket share but also on opportunity share. World-
class brands are developed by analyzing trends,
done by scanning PESTE factors; interpreting
changes in customer values through value oppor-
tunity analysis; and by designing and developing
innovative products that transform value attrib-
utes into innovative design elements.

Reprint #06172KIM66

Skin Care with Color Make-up (EI Solutions)

• Develop problem-solution treatment products
• Use cutting-edge technology and science to continuously
push the performance of everyday makeup

Social
• Aiding the career woman
• Aiding the smart customer
PO

Lifestyle
value
G

Economic
• Reasonable price

Technology
• High tech
• Waterproof
• Long-lasting make-up

Color Make-up
Figure 7. The POG EI Solutions filled.

72 Design Management Review Spring 2006