Asking students to reinvent their business school #DreamingAudencia

dreaming audencia banner

Audencia School of Management, located in Nantes, in Brittany, is one of France’s leading business schools. Today, the school is launching a very original event, inviting its students to co-create the business school of tomorrow. Called Dreaming Audencia (“Design Thinking and Collective Intelligence” it says on the facebook page), the 2-day event is meant to put the school’s students at the driving seat to reinvent their business school. I thought it was an interesting initiative, that’s why I share it in this blog post (I’ll also try to write a follow-up post once it will be over). Continue reading →

How Brazilian bike manufacturer Caloi refined its brand proposition

Caloi is a major Brazilian bike manufacturer based in São Paulo, as well a leading brand for over 110 years. Caloi felt they needed to get closer to consumers and to understand what its brand meant to Brazlinian consumers. Together with Brazilian agency CO.R Inovação, they initiated a research project called “Reinventing the two wheels,” designed to understand the role of the bicycle and the Caloi in Brazilian’s lives. Very similarly to the Shimano Coasting initiative conducted by Shimano and IDEO, this project  consisted in meeting consumers of the target  audience in major cities in order to “discover the meaning and the importance a bike has on a biker life.” Explanations from Mariana Loducca Kok, one of the project’s managers at CO.R Inovação. Continue reading →

The IDEO shopping cart (1998) wasn’t a failure, the concept was just ahead of its time

I remember writing a blog post about another IDEO concept: Shimano Coasting. Their concept was supposed to make cycling attractive for the masses, but it eventually got dropped, what led my to question about the possible reasons for this failure. This post, is about a well-documented IDEO case: a shopping cart developped in 1998, that obviously didn’t make it to the stores… or did it? Actually it did, it just has been picked up more than a decade later, and it’s being rolled out here in France. Not by IDEO. Continue reading →

Carrefour’s Global VP of Design about branding, design and innovation


The slide says : "It's not the consumer who does change with the time, but He changes the time"

Yesterday, the Design & Innovation club of the ESSCA-Alumni invited Philippe Picaud, VP of Design of the world’s second-largest retailer Carrefour, to speak about his experience and the role of design in corporate strategy. The speaker is learned designer, and highlights that “in the 70’s, designers were not meant to stay within corporation“. He did. He took on more and more design responsabilities in companies such as Texas Instruments, Philips or the French sports retailer Decathlon, which he morphed “from a retail-company to a brands-company“. It’s his fault if Decathlon is the only credible and innovative sports vendors in France! 😉 Continue reading →

SAP, avec “Business by Design”, veut retrouver une nouvelle dynamique


C’est un article paru dans Les Echos d’hier qui a attiré mon attention. Dans SAP, le temps de la reconquête, le correspondant du journal à Francfort se penche sur la stratégie sur laquelle SAP parie pour trouver des nouveaux relais de croissance. Après divers problèmes, comme la tentative – rapidement avortée – d’augmenter le prix des licences des logiciels, SAP doit aujourd’hui prouver qu’elle est capable de s’adapter aux besoins de ses clients… et de réveiller le cours de bourse. Continue reading →

What caused Shimano’s Coasting-program to fail ?

A couple of weeks ago, I noticed that the Coasting-website ( was not online anymore and that the landing page was Shimano’s corporate website, Just before writing this, I googled it again and there is again, on the bottom of the page, just behind the link to my blog post (results may vary from country to country) ! Did I make a mistake, in March, when I was looking for the website ? Did I just miss it ?

But more interestingly, what bugs me is : What caused the Coasting program to fail ?


Looks cool, but didn't sell. Why ? (photo from

In a very interesting guest post on, designer Mark Sanders basically talks about the cycling market as bunch of companies which sell high-priced bicycles to enthusiast cyclists (he calls them red oceans of enthusiasts). On the other hand, you have the mass-merchandisers selling very low-priced bikes in chain stores and supermarkets, targeting the mass of shoppers. Since these two approaches make companies compete on very “crowded” markets with low margins, we can indeed talk about red oceans that Kim & Mauborgne’s describe in their theory on business strategy, the Blue Ocean Strategy. In this theory, companies achieve growth by creating innovative ways to satisfy customers’ needs (differentiation), thus avoiding the high costs that incurr in highly competitive markets, and also driving up value for these customers. So is the cycling industry an unattractive industry ? According to Sanders, yes. I also think about an interview (in Institutional Investor of April 2005) of Martin Schwartz, CEO of Dorel Industries that I read when I got interested in Schwinn’s history ; he says that “bikes, it’s true, is not a great industry, but someone has to be the best, and Pacific (bike division of Dorel, ed) is the best by far“. Shimano seemed to having recognized that, and that’s where the industry-giant worked with IDEO, a global design consulting firm, to find a solution : Coasting.


Illustration by Mark Sanders (

The previous paragraph relates to both the Blue Ocean theory (2005) and the Design Thinking theory (2008) to describe Shimano’s initiative. IDEO is even run by the guy who wrote the HBR-article on Design Thinking, Tim Brown. So Shimano was basically advised by one of the leading strategists in the world, but about 3 years after the lauch of the Coasting product-line, the program was abandoned because it didn’t generate the expected commercial success that Shimano hoped for. The program thrilled the design-community (California Design Biennal Award for Giant in 2007, International Design Excellence Award in 2008), was praised by journalists and commentators (L.A. Times or in 2007), but sales didn’t follow. Why ?

Several reasons cross my mind, and I’d like to have your feedback to contribute to the discussion…

  • Design process ?

Shimano’s brief for IDEO was more or less as follows : help it create a $1,000, tech-laden bike that would lure baby boomers and their loose change off the couch ( It is very common in the design process that the consulting firm reformulates this brief, and it indeed proved to be necessary. Aaron Slar, social engineer for IDEO, and David Lawrence, marketing manager for Shimano travelled to different U.S. cities to find out what people think about bikes and biking and discovered all these things about people being intimidated by technology and basically wanting to get the feel-good biking experience they remember from their childhood. The prototype had grinded lugs and cable routers, a coaster brake and, more importantly, an invisible shifting mechanism. When IDEO presented their findings and recommendations to Shimano in Japan, “there was a long pause on the conference call. And it wasn’t just because of the translation“, says Lawrence. But the company rapidly got convinced, and started seeking partners within the industry.


An extract from Tim Brown's HBR-article on Design Thinking. Inspiration, ideation & implementation are represented here by examples

This design process seems to have gone through the traditional steps, from understanding to prototyping and testing. Actually, I found few information about this “testing”-step. Who did Shimano and IDEO work with when they testes their prototype(s) ? Where there improved V2 and/or V3 versions based on customers’ feedback ? This would be interesting to know.

  • Industry involvement ?

According to Daniel Gross, manufacturers associated in the Coasting-project (3 in the first year, 10 the year after) were rapidly found and seemed enthusiatic about the idea. Giant adapted bikes from its Suede product-line, Trek & Raleigh created bikes, the Lime and the Coasting. Today, the Shimano Coasting website shows 7 models from 7 different brands : Schwinn, K2, Phat, Fuji and the 3 brands that started with Shimano. I wonder what caused the number of manufacturers to drop ? They were indeed 10 in 2008, why did Sun, Jamis & Electra quit the program ? One possibility is that Shimano could not handle working closely with these 10 manufacturers and needed to skim off the least motivated ones… While some talk about a synergy between this major supplier and manufacturers, I wonder if the manufacturer’s didn’t think that Shimano would get too powerful if Coasting was a success ? Would have one single bike manufacturer have been more successful with the Coasting-approach ?


The Shimano Coasting automatic transmission-group (photo

Shimano’s goal was to get 1,000 U.S. retailers involved the first year. In 2008, two years after the lanch of the group, industry consultant Jay Townley of Gluskin Townley Group said retailers were still hesitant to adopt the new product. To improve this situation, Shimano sent them an explanatory DVD and did set up a dedicated website, But even this kind of initiatives did not make sales take off. When I talked to a bike dealer here in Pensacola he wasn’t very convinced by the Lime’s (Trek’s Coasting-model) ability to reach a new target of customers. If bike vendors don’t grasp it, the customer probably won’t either…

  • Marketing mix ?

PRODUCT : Did the consumer know what was actually sold by Shimano ? The company only sells the transmission and shifting-system by its Coasting group. This product is then mounted on the bikes by manufacturers, who sell the bicycle through independent bicycle dealers (IBD) in the United States. But Coasting is also a concept, a lifestyle, a new way of designing riding experience. I think it was made too hard for the customer to identify what he was actually buying : did he buy a Trek ? a “Coasting” ? a Shimano ? Who made what on this bicycle ? Why change the shifting-system ? I think it was not Shimano’s role to directly adress the customer, it is still the bike brands’ job to sell their products.

PRICE : The 3 initial Coasting bikes sold between 400$ and 700$. The Trek Lime’s retail price was roughly 500$, which is a fair price for a quality bicycle. It is half the price of what Shimano initially suggested to IDEO in the design brief. The aim of this pricing strategy was obviously to make bikes affordable to a large public who doesn’t ride bikes. I think the price was not a reason for failure, it was more that Shimano and, more importantly, the manufacturers were not able to communicate the benefits of Coasting to retailers and customers.


The K2 Easy Roller is (was?) available at 600$. Quite a bit for a bike with no handlebar-brakes (photo from

PROMOTION : The promotional strategy was intended to convey this feeling of freedom of riding a bicycle and to draw non-cyclists to the stores that sold Coasting. Newspaper advertising and guerilla marketing were used to increase awareness of Coasting, and the website was central to explain the concept and present bikes to consumers. The design of this flash-based website is fun and interactive, storytelling is used to involve the visitor (storytelling is part of the Design Thinking process, according to Tim Brown) and content encourages people to get on their bikes. Ideally Coasting bikes. Beside this, a demo-tour was also organized in several U.S.-cities to bring the bikes to the poeple and encourage PR & publicity.


The Fineline used outdoor stencils (with environmentally friendly spray chalk) to create life sized coasting paths everywhere (photo from

PLACE : Coasting was intended to the U.S.-market only, and it has been launched in cities like Orlando or Phoenix before the whole country was covered in 2008. Shimano and the bike brands chose to sell their products exclusively at IBDs. I think this is one of the reasons that caused Coasting’s failure : while the website is a good way of presenting the concept/product/bikes, poeple are often unfamiliar with the specialized bike stores and bike-enthusiastic vendors. Why not selling through the web ? Was the reliance on a retailing network so important ? It might have avoided some obstacles too… But more than seeing problems on the U.S. market, I think that Shimano should have tried to introduce Coasting (or a similar technology, with a different marketing approach) into less mature markets like China, India and other emerging countries. Or even (very) mature markets like Scandinavian countries and the Netherlands, where product acceptance might have been higher.


The future of Shimano’s Coasting is unclear. On the internet, vanished and has appeared, the content is unchanged. As I said in a previous post, the program has been abandoned by Shimano because sales never attained the expected figures. I think there was a huge potential in this approach, and this post explains some points that could have led to Coasting’s deceiving results.

What do you think ? Do you have more informations ? More ideas ?

Shimano and associated bicycle manufacturers drop the Coasting program


I don’t know if you recently visited, the website dedicated to the innovation program initiated by Shimano with several bicycle brands like Giant, Trek, Fuji, K2 and even Schwinn (2008). Developped with the innovation firm IDEO, this project intended to bring new consumers to cycling, those who didn’t identify themselves with the technology-driven world of copmetitive cycling. Well, the website now directly brings you to Shimano’s corporate website,

After contacting Shimano, I found out the whole program had been abandoned – or at least temporarilly stopped. According the Shimano France‘s Mathieu Arrambourg, who was the first to answer my questions, the marketing efforts didn’t generate the expected sales, revealing that customers (and distributors?) were not interested enough in the products. The program, which was exclusively directed to the Northern American market, started in 2007 with Giant, Trek and Raleigh, seven other manufacturers joined the movement in 2008. Heather Abraham from Trek told me that the Lime, Trek’s Coasting model, “is no longer being produced” and that, at this time “nothing new is happening with the Coasting program“.


Shimano rolled-out the program across North America, this is a photo from one of Shimano's Coasting Tour stages in Portland (retrieved from

The Californian headquarters of Giant and Shimano USA haven’t made any statement yet. I understood that the announcement was made to Coasting’s member companies during Taiwan’s Taipei Cycle trade show, and that product managers and other marketing executives couldn not yet communicate on the issue. What ever the statements will look like, I hope that this promising approach of cycling’s marketing won’t be definitively abandonned, because it had (has!) market potential. Imagine what potential there would be in emerging markets like india and China… Or do they really just want cheap cars ?

Feel free to comment or to react !