Innovation in Topp Tiles Plc Case Study Example | Topics and Well Written Essays - 2000 words

Innovation in Topp Tiles Plc - Case Study Example The innovative strategies adopted by Topp Tiles includes evolving appropriate marketing strategies, establishing excellent ,customer support and enhancing the online business operations. The study undertaken have given the wider perspective on the impact of the innovation that would help the organisations maintain the leadership in the market. The observations made from this study have helped to evolve a framework of practices that organisations could adopt to make them the most acceptable by the clients and also successful in business operations. Top tiles are the most favoured brands in the floor tile segment across UK and other major European countries. Since opening of the first specialist tile centre in Manchester in the year 1963, Topp tiles were offering its customers high quality products. The reasons for its success during all through these years was due to the competitive strategy it had adopted by recruiting, training and retaining highly competitive staff who are knowledgeable, friendly to customers and also highly committed to the profession. The business strategy too is beyond the revenue and enhanced sales volume. They take extra care to see that their customers are able to complete the particular task for which the Topp tiles products were purchased. A DVD which explains "How to do it" clearly shows the commitment to the customer by explaining the process the customers must undergo to get the maximum benefit from the purchased products. Its these policies that have helped the Topp tiles to become the Britain's largest tile and wood flooring specialist with over 250 stores over U.K. and adding atleast 20 stores every year (Topp Tiles, n.d.). 1.2 Financial performance of Topp Tiles :Year 2008 (Topp Tiles,2008) * Total revenue increased by 0.1 % to 208.1 million. * Group gross margin is 61.8 % * Operating profit of 34.6 million and profit before tax reported as27.7million. * Basic earning per share 11.16 p. 1.3 Future Challenges Till the end of the year 2008 the business was going well for the Topp tiles Plc. Having opened 10 new stores across different places in UK and trading from the centres being raised to over 300, the revenues reported have shown a marginal increase than that of the previous year (Topp Tiles, n.d.). Inspite of the prevalence of highly turbulent weather and reduced consumer spending, the company was able to wither the problems and maintain the required business by appropriately strategizing its marketing plan. The additional spending it had made on a national level TV advertisement campaign coupled with the inflationary trends have resulted in the increased gross expenditure of 43 percent of the total revenue,