However, the challenges Blu Dot encounters have not diminished with its success. Blu Dot still struggles with keeping affordability at the lower end of the spectrum and craftsmanship at the high end. When pricing products, the designers add up their fixed and variable costs plus the markup needed to allow the business to function. Creative pricing strategies are often employed to make the appropriate margins. For example, when selling a set of coffee tables, one table may have a higher markup while another one has a slightly lower markup in order to appeal to the price conscious consumer and create profit.

Blu Dot recognizes that it has to think of the total product offering as having a combination of three interdependent elements: the core product itself, its supplemental features, and its symbolic or experiential value. While some customers focus on the artistic aspects of the product, other consumers are more concerned with value. Therefore, Blu Dot must synchronize its marketing mix to make product and price consistent.

The designers have also found ways to keep costs lower through innovative and efficient uses of materials, processes, and distribution methods. For instance, Blu Dot contracts with suppliers that make industrial products due to the more efficient technologies and processes used. Blu Dot furniture is designed to be able to ship easily, cutting down on distribution costs. Additionally, the designers use simple manufacturing processes and straightforward materials to create what they term "a by-product of the process." Blu Dot also ensures that its products can ship efficiently and are easy for its customers to put together. Add aesthetics into the equation, and the designers have significant challenges indeed.

Despite these difficulties, the designers thrive on their ability to blend manufacturing and art to create high-end furniture at more affordable prices than their competitors. For those with a flair for modern, affordable furnishings, Blu Dot offers a range of products to suit your artistic palate.

Questions for Discussion

1. What are the different challenges for Blu Dot in selling consumer products versus business products?

2. Do you think that the product life cycle would be an important marketing concept in developing and managing Blu Dot products?

3. Describe the product mix and the importance of different product lines in Blu Dot's marketing strategy.