(Donegal South-West): The recent currency crisis once again highlighted the vulnerability of those indigenous firms who depend on price-competitiveness to win market share. The reality of our geographical location on the periphery of Europe and the small size of our domestic market mean that businesses which compete mainly in price will find it very difficult to achieve the necessary economies of scale which will enable them to trade competitively. The solution for such firms must be to seek market segments where they can compete on the basis of differentiated product which can give value to the customer in terms of higher quality or better service or some other non-price factor.
Market-driven product design and development can be a key element in enhancing a company's competitive edge. An Bord Tráchtála operates five specialised programmes in the area of design and product development to help companies exploit the many opportunities created by rapidly changing technology and shifting market trends. The individual company advisory programme provides confidential and impartial advice on the improvement of existing products, packaging or promotional literature. The group development programme facilitates the gathering of design and market information for groups of firms with common marketing objectives and needs. Through this programme consultants prepare product, merchandising and packaging concepts. Costs are shared between the participating firms and the agency. The design intelligence programme gathers design intelligence and forecast information in a number of product areas, notably apparel, knitwear and fabrics. Seasonally or annually, information is communicated to companies through publications, workshops or seminars. The design audit programme provides an expert, impartial assesment of a company's existing design activities, along with an evaluation of current products, packaging, sales literature and promotional print. Costs are shared between An Bord Tráchtála and the participating firms. Finally, under the advanced products programme product concepts are developed for market research and testing.
The programme provides funded design and product development consultancy, typically involving up to 20 man-days of work by qualified specialist consultants. To participate in this scheme, companies undergo assessment to determine their capability to benefit from significant product development work. Consultancy fees are paid by An Bord Tráchtála with a contribution from the participating companies.