Ottis & Pearl Expansion Initiative

  • In March of 2024, our team partnered with Galen Murphy, the founder, to identify an ideal storefront location for Ottis & Pearl’s expansion that would align with the company’s short and long term goals. Through diligent research and strategic insights, we sought to help Ottis & Pearl make informed decisions and enhance their market presence.

    To address these issues, our team adopted a macro-to-micro approach. This involved an external analysis of the overall interior design industry, a competitive analysis of direct and indirect competitors, an internal analysis using a SWOT framework, a market analysis, and a financial analysis. Each team member focused on their strengths to contribute to these sections, culminating in a series of strategic recommendations designed to address the identified challenges and propel Ottis & Pearl toward success. These findings were delivered to Galen in a comprehensive, 77-page report.

    Team Members:

    Anna Meese, Diana Degroot, Collin Buzzelli, Zach Anderson, Michael Aguinaldo

    Copy taken from final report.

  • Part of our team’s external analysis included drafting a SWOT analysis. Below is our final SWOT analysis as included in our final report given to Ottis & Pearl.

    Strengths

    • Personalized approach leading to higher customer satisfaction. 

    • Extensive network for sourcing unique and affordable vintage items.

    • Versatility in project scope and size. 

    • A strong network of local artisans and suppliers allows for unique and high-quality design materials at competitive prices.

    • Unique and hard-to-replicate design style. 

    • The focus on sustainability and local artistry helps differentiate Ottis & Pearl from larger, more generic competitors.

    Weaknesses

    • Limited capacity to handle multiple projects simultaneously due to being a small company. 

    • Localized business model which may limit growth potential. 

    • Lower brand recognition compared to established competitors. 

    • Dependence on vintage goods is a significant portion of revenue.

    Opportunities

    • Establishing a Physical Storefront: Increasing community presence and attracting local customers by setting up a physical location. 

    • Sustainability Trends: Emphasizing sustainable practices and repurposing vintage goods aligns with increasing consumer preference for eco-friendly design.

    • Technological Advancements: Utilization of advanced 3D modeling, VR, AR tools, and cloud-based project management enhances service delivery and competitiveness. 

    • Generation X Market: Targeting Generation X, which holds the highest disposable income, provides substantial growth opportunities.

    Threats

    • DIY Culture: The rise of DIY interior design platforms such as Pinterest and Instagram reduces demand for professional services.

    • Post-COVID Behavioral Shifts: As society reopens and people spend more time away from home, demand for home renovations may decline. 

    • Economic Uncertainty: Economic downturns can lead to increased costs and reduced consumer spending on interior design services.

      Copy taken from final report.

  • As part of our market analysis we performed primary and secondary research. Here is a piece of the summary of research that we completed:

    Summary of Primary and Secondary Research

    Overall, secondary research found that growth in the interior design industry is driven by economic performance and construction activity—particularly in the residential sector—which benefits independent designers. The industry is sensitive to economic conditions, interest rates, and construction trends, but maintains stability through a balance of residential and commercial clients. A few of Ottis & Pearl’s direct competitors engage in both residential and commercial projects, while Galen currently has only residential clients, making items like disposable income key market indicators for him. Overall, secondary research indicates a cautious yet promising growth in the industry, while adapting to changing consumer preferences and eventually growing the business will be key.

    The primary research conducted by Team Ottis consisted of a 12-question survey, distributed to a wide variety of individuals across the Pacific Northwest (see Figure 23 in Appendix A for full survey PDF and Figure 24 in Appendix A for full results PDF). The questions themselves consisted of three sections: demographic information, specific interior design showroom questions, and general interior design questions. The demographic questions (i.e. what is your age range, income level, etc.), allowed for segmentation and targeting analyses. Meanwhile, the interior design showroom questions dug at our specific project focus: forecasting for a storefront. These questions allowed for specific location analysis based on where individuals shop and product offering analysis. Finally, the general interior design questions looked at pricing initiatives (see the section below on pricing strategy), and where people go for sources of inspiration (is a showroom effective?).

    Copy taken from final report.