0:00:02 > 0:00:05Lord Digby Jones is a champion of British business.
0:00:05 > 0:00:08British manufacturing's got so much to be proud of.
0:00:08 > 0:00:11We make furniture. We make shoes.
0:00:11 > 0:00:13We make high-performance motorcars.
0:00:13 > 0:00:16We make volume motorcars. We sell them around the world.
0:00:18 > 0:00:22But it's a constant battle to keep one step ahead of our global rivals.
0:00:24 > 0:00:26Manufacturing at the right product,
0:00:26 > 0:00:30in the right market, at the right time - it matters enormously.
0:00:30 > 0:00:34To survive, British firms will have to be at the top of their game.
0:00:34 > 0:00:37You're not trying to say, "I'm the cheapest."
0:00:37 > 0:00:40You're trying to say, "I'm the best."
0:00:40 > 0:00:44Now, that is what manufacturing in the UK in the 21st century is about.
0:00:45 > 0:00:49And Digby's determined to play his part.
0:00:49 > 0:00:52In a career that's taken him from his parents' corner shop
0:00:52 > 0:00:54to the House of Lords,
0:00:54 > 0:00:57he's helped transform some iconic British companies.
0:01:00 > 0:01:05Now, in a new challenge, can he help three ambitious companies
0:01:05 > 0:01:10from the worlds of furniture, fashion and electronics to succeed?
0:01:10 > 0:01:13We don't do cheap any more. We can't!
0:01:13 > 0:01:16We actually do quality, brand and innovation.
0:01:16 > 0:01:19That's what's going to make the profit that pays the tax
0:01:19 > 0:01:22that builds the schools and hospitals.
0:01:22 > 0:01:25He's demanded access all areas...
0:01:25 > 0:01:27- Wow! This is pretty big!- Yes.
0:01:28 > 0:01:32..and he's not afraid to ask the tough questions.
0:01:32 > 0:01:34What part of this do you not understand?
0:01:34 > 0:01:37Ding-dong! Alarm!
0:01:37 > 0:01:41Tonight, Digby Jones tries to help one company
0:01:41 > 0:01:44take a radical change in direction.
0:01:45 > 0:01:48They're doing this on gut instinct.
0:01:48 > 0:01:51It's going to call for nerves of steel...
0:01:51 > 0:01:54- Scary!- It's exciting!
0:01:54 > 0:01:56..and everyone's agreement on priorities.
0:01:56 > 0:02:01- I don't think that's necessarily important to us.- Prove it to me.
0:02:01 > 0:02:02SHE CLEARS HER THROAT
0:02:02 > 0:02:07Can the company's ambitious plans be kept on course by Digby Jones...
0:02:09 > 0:02:11..the new trouble-shooter?
0:02:24 > 0:02:30Someday, some way, I'm going to have a Servis fully automatic.
0:02:32 > 0:02:35British electrical brands were once portrayed in adverts
0:02:35 > 0:02:37as the ultimate in domestic chic.
0:02:39 > 0:02:42Today, it's rival imported brands that sell us
0:02:42 > 0:02:44short cuts to sophistication.
0:02:46 > 0:02:50Now, one company is taking the biggest gamble in its history
0:02:50 > 0:02:55with a plan to get British-made white goods back into British homes.
0:02:58 > 0:03:01This is Ebac in County Durham, northeast England.
0:03:05 > 0:03:09They make water coolers and dehumidifiers...
0:03:09 > 0:03:12and they're very good at it.
0:03:15 > 0:03:19This is the managing director, Pamela Petty.
0:03:19 > 0:03:22The buzz I get is in this factory, seeing that line there,
0:03:22 > 0:03:25filled with product and people working.
0:03:25 > 0:03:27I think it's brilliant.
0:03:29 > 0:03:31Her dad, John, is the founder and chairman
0:03:31 > 0:03:35and sister Amanda is manufacturing director,
0:03:35 > 0:03:38but there's more to this family than making water coolers.
0:03:41 > 0:03:46'This is John Elliot, signing away his personal fortune.'
0:03:46 > 0:03:51In 2012, chairman John turned the company into a foundation,
0:03:51 > 0:03:55meaning all profits had to be put back into the business
0:03:55 > 0:03:57or go to local community projects.
0:04:01 > 0:04:04The change also deprived Pam of a possible
0:04:04 > 0:04:06multimillion pound inheritance.
0:04:08 > 0:04:12I've given up my inheritance, but I'm a big girl.
0:04:12 > 0:04:14I can earn my living.
0:04:14 > 0:04:19So I was more than happy, actually, to go ahead with it,
0:04:19 > 0:04:20for what it means to everybody.
0:04:24 > 0:04:27In fact, Pam's pushing it even further.
0:04:29 > 0:04:35She's taking an extraordinary gamble that could help create 200 jobs,
0:04:35 > 0:04:38increase turnover from 15 to 50 million,
0:04:38 > 0:04:41or plunge the company into the red.
0:04:43 > 0:04:48Almost on impulse, and with only a basic business plan,
0:04:48 > 0:04:50Pam's spent £1 million on this...
0:04:54 > 0:04:58..a business that's gone into administration twice in ten years.
0:05:00 > 0:05:03Pam's bought the Norfrost chest freezer brand
0:05:03 > 0:05:06and a factory-load of equipment
0:05:06 > 0:05:08after company that owned it went bust.
0:05:10 > 0:05:14She plans to move the entire set-up from its base near John o'Groats
0:05:14 > 0:05:18over 400 miles south, to County Durham.
0:05:18 > 0:05:21This lovely chest freezer's going to create lots of jobs.
0:05:24 > 0:05:28Pam's ambitious plan to lead Ebac to unprecedented growth
0:05:28 > 0:05:31rests on resurrecting this frozen freezer brand.
0:05:36 > 0:05:38So, she's asked for Digby's help
0:05:38 > 0:05:41to overcome the many obstacles in her path.
0:05:44 > 0:05:47This is the first time I've ever been involved
0:05:47 > 0:05:49in something of this scale.
0:05:52 > 0:05:54The company must absorb the shock
0:05:54 > 0:05:58of only operating in a niche market it dominates,
0:05:58 > 0:06:02to also fighting in the huge domestic electrical goods sector.
0:06:05 > 0:06:08The old production line must be modernised
0:06:08 > 0:06:10to make freezers more efficiently.
0:06:13 > 0:06:17And she has to persuade the public to abandon the foreign brands
0:06:17 > 0:06:19they already trust and buy her freezers.
0:06:21 > 0:06:25Pam's hoping to be stocked in shops by Christmas
0:06:25 > 0:06:27in just six weeks' time.
0:06:32 > 0:06:35Diversifying into new products is one way
0:06:35 > 0:06:39for British manufacturers to compete in the global market.
0:06:40 > 0:06:43In an attempt to ensure Ebac's expansion succeeds,
0:06:43 > 0:06:45Pam's called on Digby's help.
0:06:48 > 0:06:49'Hello.'
0:06:49 > 0:06:53- Hello, Pamela. It's Digby Jones. - 'Good morning. How are you?'
0:06:53 > 0:06:57Good morning. I'm very well and I'm very excited, actually...
0:06:57 > 0:07:00Digby is a passionate supporter of British manufacturing.
0:07:03 > 0:07:05In the 1970s,
0:07:05 > 0:07:09manufacturing contributed to 30% of the country's wealth.
0:07:09 > 0:07:11Now, it's around 10%.
0:07:13 > 0:07:16He believes helping Pam pull off her plan
0:07:16 > 0:07:18could benefit the entire region.
0:07:20 > 0:07:23We're on the way to Ebac. It's in Newton Aycliffe,
0:07:23 > 0:07:28right in the northeast of England, almost into Scotland, not quite,
0:07:28 > 0:07:33and a region that's had its enormous challenges over the past few years.
0:07:33 > 0:07:37The demise of ship building, coal, steel, all the commodity stuff,
0:07:37 > 0:07:39where you had lots and lots of unskilled labour
0:07:39 > 0:07:41but guaranteed a job.
0:07:41 > 0:07:44And, of course, now that's all gone and how do you get a region
0:07:44 > 0:07:49to create wealth, employ people and succeed and have the morale up?
0:07:49 > 0:07:53It'll be interesting to see how they deal with that.
0:07:54 > 0:07:57Pam's diversification from a core business
0:07:57 > 0:08:01into a new sector, white goods, is risky.
0:08:01 > 0:08:03Some companies, like Virgin,
0:08:03 > 0:08:07who diversified from music to an airline, make millions,
0:08:07 > 0:08:11but bad diversification decisions can ruin companies too.
0:08:13 > 0:08:17So, Pam can be sure of one thing - Digby won't be pulling his punches.
0:08:17 > 0:08:19Coming in to work this morning,
0:08:19 > 0:08:21I think I actually took a conscious decision.
0:08:21 > 0:08:23Just, you know it, girl,
0:08:23 > 0:08:26when he comes in, he's going to ask you some questions
0:08:26 > 0:08:27and just answer them.
0:08:30 > 0:08:34Will he start gently or go straight for the jugular?
0:08:36 > 0:08:38- Hello!- Hello.- I'm Digby.
0:08:38 > 0:08:40- Good morning to you.- And to you.
0:08:40 > 0:08:42- I've just been sampling one of yours.- And?
0:08:42 > 0:08:44I thought... Oh, it's fine. The water's great.
0:08:44 > 0:08:47No, no, no. It all worked really well.
0:08:47 > 0:08:50Digby wants to know if Pam can make freezers
0:08:50 > 0:08:53and if she can sell freezers.
0:08:55 > 0:08:59But first, he wants a feel for how she runs her existing business.
0:08:59 > 0:09:02- Oh, you can smell the manufacturing. - Yes, I love it.
0:09:02 > 0:09:05- It's making things.- Yeah, making things, seeing things happen.
0:09:08 > 0:09:11The spine of any factory is its production line.
0:09:14 > 0:09:17It's crucial Digby thinks this is in good order.
0:09:25 > 0:09:28So, the products that we currently make, we make them all here.
0:09:28 > 0:09:30All of the dehumidifiers
0:09:30 > 0:09:34and all of the water coolers all come down this production track.
0:09:34 > 0:09:38Pretty much, in my view, everybody that works in this factory
0:09:38 > 0:09:41is here to serve this production line.
0:09:41 > 0:09:45So, they're here to make sure the materials are here on time,
0:09:45 > 0:09:47and their responsibility is to make sure
0:09:47 > 0:09:51that one comes off the end - the line doesn't stop.
0:09:55 > 0:09:59The factory makes 100,000 units a year,
0:09:59 > 0:10:02selling in 43 overseas markets,
0:10:02 > 0:10:07but does that expertise translate to making chest freezers?
0:10:13 > 0:10:16- Right. So, this is the... - Engineering workshop.
0:10:16 > 0:10:20This is where we'll test things out, try different products.
0:10:20 > 0:10:23- Right.- These are the products that we already make
0:10:23 > 0:10:28and probably the key thing with these is that they work in the same way.
0:10:28 > 0:10:32There's the compressor. We've got the same set-up in here.
0:10:32 > 0:10:34Slightly different type of compressor.
0:10:34 > 0:10:36And so this is dehumidifier?
0:10:36 > 0:10:40These are dehumidifiers, with their outers taken off.
0:10:40 > 0:10:42- This is a water cooler... - This is a water cooler.
0:10:42 > 0:10:46..with a compressor again. We move on to the chest freezers.
0:10:46 > 0:10:48So, we've got one here. That's exactly the same.
0:10:48 > 0:10:51One of the key things with a chest freezer,
0:10:51 > 0:10:53that most people probably won't realise,
0:10:53 > 0:10:58- is we don't put cold into a chest freezer. We take heat out...- Yeah.
0:10:58 > 0:11:01..until it gets really, really cold and freezes things.
0:11:01 > 0:11:03So, you just keep taking the temperature out.
0:11:03 > 0:11:06So, the concept is much the same as what we've been doing down there.
0:11:06 > 0:11:10Exactly the same as those. So, that technology is right up our street.
0:11:10 > 0:11:15But in business, understanding the technology is just the start.
0:11:15 > 0:11:20If Pam's new freezer factory is to compete with powerful, established
0:11:20 > 0:11:25overseas operations, it's important her plant is as good as it can be.
0:11:25 > 0:11:27Here we go. We're off to the...
0:11:27 > 0:11:30- Yes, let's go look at...- The new factory.- ..what we've started.
0:11:38 > 0:11:41Ebac has invested nearly £3 million
0:11:41 > 0:11:44just to get the site operational, which is money going out
0:11:44 > 0:11:47of the business before any coming in.
0:11:49 > 0:11:55- So, this is it?- Yes, this is it. - Looks like a set off The Sweeney.
0:11:55 > 0:11:56SHE LAUGHS
0:11:59 > 0:12:02- Wow! This is pretty big!- Yes.
0:12:02 > 0:12:05Hello, hello, hello...
0:12:05 > 0:12:08- So, you've taken a lease of the whole lot.- Yeah.
0:12:08 > 0:12:13So, your vision is that this will eventually become freezer kingdom.
0:12:13 > 0:12:16Yes. Yeah. Fridges and freezers.
0:12:17 > 0:12:21Until there's money being earned from freezers,
0:12:21 > 0:12:25the company has to find £3,000 a day to cover running costs
0:12:25 > 0:12:28including rent and wages.
0:12:28 > 0:12:35What is your time frame for having your first freezer out of that door?
0:12:35 > 0:12:39First freezer out of that door, that could be in four weeks' time,
0:12:39 > 0:12:43four to six weeks' time, we're able to hit the button
0:12:43 > 0:12:45and start making chest freezers.
0:12:47 > 0:12:50A poor factory layout will affect future profits.
0:12:50 > 0:12:53And with the clock ticking to launch,
0:12:53 > 0:12:56Digby wants to meet the staff in charge of setting up.
0:12:59 > 0:13:03- John.- How are you?- Thanks for giving me some time. Digby Jones.
0:13:03 > 0:13:06- And Jeff's here.- There you are, Jeff.
0:13:06 > 0:13:09So, you're the guy who's been pushing all this,
0:13:09 > 0:13:11- making sure it all is in the right layout.- Yeah.
0:13:11 > 0:13:14And you're the one who's going to get the freezers out the door.
0:13:14 > 0:13:16Hopefully, yes.
0:13:16 > 0:13:20What's the big, big challenge that you're having a problem with?
0:13:20 > 0:13:25The biggest one is probably to get it up and running.
0:13:25 > 0:13:30With a six-week deadline looming, Digby's already sensing problems.
0:13:31 > 0:13:35How you lay it out at the start is one of the key movers
0:13:35 > 0:13:38to getting productivity out of your facility.
0:13:38 > 0:13:40You get more efficiency.
0:13:40 > 0:13:44You two right now are making an investment of your talent
0:13:44 > 0:13:47and your time, the rewards of which will be reaped
0:13:47 > 0:13:49in five, ten years' time.
0:13:51 > 0:13:56Digby's worry about the production line ties into his next concern -
0:13:56 > 0:13:58selling the freezers.
0:13:59 > 0:14:02Considering Britain imports nearly £2 billion-worth
0:14:02 > 0:14:07of white goods a year, how does Pam plan to get a share in a market
0:14:07 > 0:14:09dominated by powerful foreign companies?
0:14:14 > 0:14:15- Jo, yeah?- Yes, it is.
0:14:15 > 0:14:20Product manager Joanne Vipond needs to have some answers.
0:14:21 > 0:14:25- You're moving into freezers.- Mm-hm. - Everybody makes freezers.
0:14:25 > 0:14:27They do indeed.
0:14:27 > 0:14:31Big, big companies, multinational businesses make freezers.
0:14:31 > 0:14:36How is, with respect, little Ebac going to take those people on
0:14:36 > 0:14:39in getting their product to market?
0:14:41 > 0:14:44One of the biggest things we're spending most of our time on
0:14:44 > 0:14:47is creating a brand website for Norfrost
0:14:47 > 0:14:49and really getting out there the brand name,
0:14:49 > 0:14:52telling them all about Norfrost,
0:14:52 > 0:14:55who they are, how we're going to now take this and move it forward.
0:14:55 > 0:14:58And presumably at some point, you're going to have to work out
0:14:58 > 0:15:00who's your normal customer.
0:15:00 > 0:15:03- Yeah.- Male, female, what age.
0:15:03 > 0:15:07Market research for that. Get some surveys out there as well.
0:15:07 > 0:15:11- What economic bracket and all of that.- Yeah.- Will you be doing that?
0:15:11 > 0:15:12- Yeah, we'll have to.- When?
0:15:12 > 0:15:16I would say it's going to be within the year.
0:15:16 > 0:15:19- Um...- But how do you know that you're pitching that website
0:15:19 > 0:15:23at the ideal customer if you don't know who your ideal customer is?
0:15:26 > 0:15:28- We don't.- Right.
0:15:28 > 0:15:32- So, what are you going to do about it?- Do the research.
0:15:36 > 0:15:37Some challenges.
0:15:37 > 0:15:41I don't think they're on the marketing piece enough.
0:15:41 > 0:15:43I really want them to major on that.
0:15:43 > 0:15:44I am concerned about the fact that
0:15:44 > 0:15:47they don't know what sort of person's
0:15:47 > 0:15:48going to buy a chest freezer.
0:15:48 > 0:15:51A lot of work to be done there and quickly.
0:15:51 > 0:15:56They've set themselves a very, very tight time schedule
0:15:56 > 0:15:58to get all the stuff down from Scotland,
0:15:58 > 0:16:01get it well installed, get the first one out.
0:16:01 > 0:16:06Tough call, but on the other hand, they are a class act.
0:16:09 > 0:16:11Digby's revolution starts here.
0:16:11 > 0:16:14But he has to work quickly.
0:16:14 > 0:16:18With just six weeks to get freezers in shops for Christmas,
0:16:18 > 0:16:22the marketing strategy needs sharpening
0:16:22 > 0:16:26and Pam's team needs a masterclass in production-line efficiency.
0:16:43 > 0:16:46We've come to one of the great places
0:16:46 > 0:16:49of modern championing British manufacturing.
0:16:54 > 0:16:58This is the most productive car plant in Europe
0:16:58 > 0:17:01and one of the top two or three in the world.
0:17:04 > 0:17:10525,000 cars come out of here every year -
0:17:10 > 0:17:12one every 37 seconds.
0:17:12 > 0:17:1680% of them are exported away from our shores.
0:17:17 > 0:17:20You think of the overseas currency that's earning for our nation.
0:17:22 > 0:17:26That's what is so special about Britain
0:17:26 > 0:17:30as a home for inward investment and a home for generating wealth.
0:17:30 > 0:17:34British manufacturing needs firms like Ebac to adopt the most
0:17:34 > 0:17:37competitive production methods.
0:17:37 > 0:17:41Today, Pam's got a chance to learn from a world leader.
0:17:41 > 0:17:43Absolutely massive plant...
0:17:43 > 0:17:45but one day,
0:17:45 > 0:17:48perhaps, we'll have something this size - an appliance city,
0:17:48 > 0:17:51just like we've got a car city here.
0:17:55 > 0:17:57Well, good morning.
0:17:57 > 0:18:02Digby wants Pam to learn new production methods for her factory.
0:18:10 > 0:18:14Every robot and every worker in this factory is constantly
0:18:14 > 0:18:18monitored to ensure they work to maximum efficiency.
0:18:20 > 0:18:24The key is, it's the staff themselves who do it.
0:18:26 > 0:18:30It's a little-known Japanese technique called kaizen.
0:18:35 > 0:18:39One of the secrets to the way in which these cars
0:18:39 > 0:18:42are so productively made has been kaizen,
0:18:42 > 0:18:47the Japanese philosophy of constant, continuous improvement
0:18:47 > 0:18:52in what you do, and I'm particularly impressed with this seat.
0:18:52 > 0:18:55Because they had this idea, didn't they?
0:18:55 > 0:18:58We came up with the idea to improve things for the operator,
0:18:58 > 0:18:59because we're getting injuries,
0:18:59 > 0:19:03discomfort through the way that they did the job previously.
0:19:03 > 0:19:05So, by putting these seat shuttles in,
0:19:05 > 0:19:08the operator can now get inside the car,
0:19:08 > 0:19:11his parts, his tools and everything goes in with him,
0:19:11 > 0:19:13so it increases efficiency, as well as...
0:19:13 > 0:19:16- DRILLING DROWNS SPEECH - It kills two birds with one stone.
0:19:16 > 0:19:19And are the guys themselves involved in...?
0:19:19 > 0:19:22Very much, yeah. They're building 500 cars a day.
0:19:22 > 0:19:24They know best where things should be,
0:19:24 > 0:19:26what's the best way for them to have it.
0:19:29 > 0:19:32Kaizen empowers workers to instigate improvements
0:19:32 > 0:19:35to their production line.
0:19:35 > 0:19:38It seems everybody here gets involved and I keep asking,
0:19:38 > 0:19:41"Do they do this? Do they do that?"
0:19:41 > 0:19:43You're not forcing people to be involved
0:19:43 > 0:19:45but, actually, they want to be involved.
0:19:45 > 0:19:48It's improving their lot.
0:19:49 > 0:19:53But if we look at it at a higher level, this is a business making
0:19:53 > 0:19:56cars to sell in a competitive environment,
0:19:56 > 0:19:59and we maintain our job security by being competitive.
0:20:03 > 0:20:05So, what can small British businesses
0:20:05 > 0:20:08learn from multinational corporations?
0:20:09 > 0:20:13The great destroyers of productivity is a human being having to walk
0:20:13 > 0:20:16around, and if he's walking over there with something in his hand,
0:20:16 > 0:20:18he's going to walk back empty-handed,
0:20:18 > 0:20:21so that's waste - wasted time, wasted effort.
0:20:23 > 0:20:26So, what you do is you cut a second, just work on cutting a second
0:20:26 > 0:20:29out of how long it takes somebody to do something, because you ask them
0:20:29 > 0:20:32to do it in a different way or go a different route, or don't go
0:20:32 > 0:20:34at all, because something else is going to happen.
0:20:34 > 0:20:38You multiply that second by a business as big as this,
0:20:38 > 0:20:42we are talking millions of pounds a year of saved money.
0:20:42 > 0:20:45Thank you, Richard. I'm sure I'll be in touch.
0:20:45 > 0:20:47Thank you, Pamela. All the best.
0:20:47 > 0:20:48- Bye-bye.- Bye-bye.- Well done.
0:20:48 > 0:20:51'Amazing, actually, seeing something like that.'
0:20:51 > 0:20:54What I keep linking is...
0:20:54 > 0:20:59Half a million cars - in three years' time, we could be making
0:20:59 > 0:21:01half a million appliances.
0:21:01 > 0:21:05- And that is kind of like a bit, "whoa".- Scary. Scary.
0:21:05 > 0:21:09- It's exciting. It's not scary. - Exciting.- It's exciting.
0:21:09 > 0:21:15I want two or three killer conclusions from today
0:21:15 > 0:21:18that what gets measured gets done, so what have you learnt,
0:21:18 > 0:21:21and what are you going to do differently?
0:21:31 > 0:21:36Before Pam's project can even try to apply the principles of kaizen,
0:21:36 > 0:21:40her team have to ship 1,000 tonnes of production kit
0:21:40 > 0:21:44and 6,000 existing freezers over 400 miles
0:21:44 > 0:21:49from the site near John o'Groats to County Durham.
0:21:50 > 0:21:52Do you know what he's dropping off, Darren?
0:21:55 > 0:21:58As Pam's team prepare the factory floor...
0:22:00 > 0:22:04- All right?- ..back in Scotland, former Norfrost workers
0:22:04 > 0:22:07are stripping their old factory to its bare bones.
0:22:16 > 0:22:19It's... It's sad to see it sitting in the state it is,
0:22:19 > 0:22:23because everything just seems to have gone downhill really fast.
0:22:30 > 0:22:33Buried inside the story of Norfrost's rise and fall
0:22:33 > 0:22:37is a cautionary tale for British companies hoping to compete
0:22:37 > 0:22:39in today's white goods sector.
0:22:40 > 0:22:42In its '80s heyday,
0:22:42 > 0:22:47Norfrost epitomised white goods manufacturing in Britain.
0:22:47 > 0:22:50Its success was based on a simple formula -
0:22:50 > 0:22:54quality goods at affordable prices.
0:22:54 > 0:22:58At its peak, it made 12,000 units a week
0:22:58 > 0:23:01and had Coca-Cola and Mars as customers.
0:23:01 > 0:23:04You have the advertisement for the Coca-Cola freezers that they used to
0:23:04 > 0:23:07make for the Olympics.
0:23:07 > 0:23:10It was a big contract to have - an Olympic freezer,
0:23:10 > 0:23:14to go out and to bring Norfrost into the limelight.
0:23:15 > 0:23:18But across the white goods sector, foreign brands,
0:23:18 > 0:23:22either made here or imported, came to dominate the market,
0:23:22 > 0:23:27with names including Beko from Turkey and Indesit from Italy
0:23:27 > 0:23:28leading the way.
0:23:30 > 0:23:35When white goods retailer Comet went into administration in 2012,
0:23:35 > 0:23:37Norfrost soon followed.
0:23:39 > 0:23:43Like many British companies, Pam runs a business that can't
0:23:43 > 0:23:45compete on price with cheaper imports.
0:23:45 > 0:23:50So, she has to think of a new unique selling point, or USP,
0:23:50 > 0:23:54to create consumer demand. This will encourage
0:23:54 > 0:23:57her customers - the retailers - to stock her product.
0:23:57 > 0:24:02Digby believes the answer lies in knowing what consumers want.
0:24:02 > 0:24:05The problem is, Pam doesn't agree.
0:24:05 > 0:24:08Fundamentally, because we've always said
0:24:08 > 0:24:10that we're going to take what Norfrost did
0:24:10 > 0:24:16and pick that up and replicate it, we haven't paid much attention
0:24:16 > 0:24:22to the market research, the quite specific, detailed market research
0:24:22 > 0:24:24of what consumers want.
0:24:25 > 0:24:30Rightly or wrongly, we've taken that what Norfrost were doing was right,
0:24:30 > 0:24:33because they were selling tens of thousands of chest freezers.
0:24:36 > 0:24:40But Pam's marketing strategy is based on Norfrost's,
0:24:40 > 0:24:45and Digby's insisting Pam and Jo need new consumer research
0:24:45 > 0:24:48to create fresh demand for the freezers.
0:24:50 > 0:24:52With just five weeks to the launch,
0:24:52 > 0:24:55he's returning to see if they've done it.
0:25:02 > 0:25:06- Now, last time, I gave you a challenge, didn't I?- You did.
0:25:06 > 0:25:10- All right.- We've looked down the avenue of market research, consumer
0:25:10 > 0:25:13market research, and I think, you know, we hadn't done that
0:25:13 > 0:25:15for a particular reason, and we hadn't done it.
0:25:15 > 0:25:20And we may do it in the future, but we already know,
0:25:20 > 0:25:22at this present time, who we're going to sell to.
0:25:22 > 0:25:23How do you know that?
0:25:23 > 0:25:25Because it's a current Norfrost brand customer.
0:25:25 > 0:25:27There is already a market out there,
0:25:27 > 0:25:30and we just literally want to take that market back.
0:25:35 > 0:25:38Jo and Pam are confident consumers already exist
0:25:38 > 0:25:42and will return to the brand when the freezers launch.
0:25:42 > 0:25:46But if Pam doesn't don't know what consumers want,
0:25:46 > 0:25:48how can she be sure they'll buy her freezers?
0:25:48 > 0:25:50The whole issue of this was...
0:25:50 > 0:25:52You say they're a Norfrost customer -
0:25:52 > 0:25:53fine, but what do they look like?
0:25:53 > 0:25:55And I think right now...
0:25:55 > 0:25:57I don't think that's necessarily important to us.
0:25:57 > 0:26:00So, how do you go to market if you don't know that?
0:26:00 > 0:26:02Because we know what they value.
0:26:02 > 0:26:06Things... People love to shout about what they like about the product,
0:26:06 > 0:26:09and if you read a review, people tend to say, "It does exactly
0:26:09 > 0:26:12"what you need it to do - it's a freezer, and that's what we wanted."
0:26:12 > 0:26:18We're reasonably satisfied that there are Norfrost people
0:26:18 > 0:26:20out there, people who want to buy Norfrost chest freezers.
0:26:20 > 0:26:23What I'm asking you is, prove it to me.
0:26:24 > 0:26:25Prove it to me.
0:26:27 > 0:26:31Will Pam come clean and tell Digby she thinks he's wrong?
0:26:31 > 0:26:36The one thing that really was clear to me when you were here last time
0:26:36 > 0:26:39was that we've kind of taken our focus off how we are going to sell,
0:26:39 > 0:26:42and we talked about different ways to achieve that,
0:26:42 > 0:26:45and then we said, "Right, what will we do differently
0:26:45 > 0:26:46"once we've got that information?"
0:26:46 > 0:26:49And in terms of taking this product to market, we said,
0:26:49 > 0:26:50"Actually, probably nothing."
0:26:52 > 0:26:57Economic reality is staring Pam in the face.
0:26:58 > 0:27:01There's five weeks to launch.
0:27:01 > 0:27:04Established brands dominate the market.
0:27:05 > 0:27:09And she doesn't have a retail stockist yet.
0:27:09 > 0:27:13Is her current plan fast-tracking her to failure?
0:27:16 > 0:27:19Earlier, Digby sent the team to learn about kaizen -
0:27:19 > 0:27:24a Japanese system that empowers workers to initiate improvements
0:27:24 > 0:27:26to their production line.
0:27:26 > 0:27:31Well, good morning, good morning. This is a little bit different...
0:27:31 > 0:27:34Now he wants to see if they've decided to implement
0:27:34 > 0:27:36what they learnt.
0:27:36 > 0:27:41This is a couple of press tools that actually form the lids.
0:27:41 > 0:27:44Jeff's showing Digby a press that will make freezer lids.
0:27:44 > 0:27:47This is what we call the hinge plate.
0:27:47 > 0:27:50It goes into here and is made on this press here.
0:27:50 > 0:27:52These two presses were in a press shop
0:27:52 > 0:27:55which was 100 yards away from the main lines,
0:27:55 > 0:27:57and then they transported the parts...
0:27:57 > 0:28:01So, you've brought this from Scotland, and this action -
0:28:01 > 0:28:06- dum, dum, to there - was 100 yards in Scotland.- 100 yards, yeah.
0:28:06 > 0:28:09In Nissan, it would have been 3ft, wouldn't it?
0:28:09 > 0:28:13- And because this is brand-new for us...- Brand-new layout, yeah.
0:28:13 > 0:28:17- ..you can design it to take cost out of the business.- Exactly.- Exactly.
0:28:19 > 0:28:22Digby's involvement in the production line set-up
0:28:22 > 0:28:24is paying dividends.
0:28:26 > 0:28:29But with just three weeks to the launch,
0:28:29 > 0:28:32up at the old factory near John o'Groats,
0:28:32 > 0:28:33there's an unexpected problem.
0:28:33 > 0:28:35METALLIC CLATTERING
0:28:38 > 0:28:42While dismantling a crucial piece of kit, asbestos has been found,
0:28:42 > 0:28:47and until it's safely removed, the kit can't leave the site.
0:28:53 > 0:28:57The kit Pam needs is called foaming equipment.
0:28:57 > 0:29:00It's made up of three parts -
0:29:00 > 0:29:05huge tunnels that hold freezers in place,
0:29:05 > 0:29:11these industrial guns that fire insulating foam into the freezers,
0:29:11 > 0:29:15and tanks that store the chemicals mixed to make the foam.
0:29:17 > 0:29:21It's the foaming process that keeps freezers cold,
0:29:21 > 0:29:25and without this kit, Pam can't make freezers.
0:29:29 > 0:29:32The freezer launch is now hanging by a thread.
0:29:32 > 0:29:34Jeff, so where are we at with the foaming tunnels?
0:29:34 > 0:29:39- Up in Scotland?- The asbestos will be removed on the 7th of December...
0:29:39 > 0:29:42Pam's sister, manufacturing director Amanda,
0:29:42 > 0:29:45is heading a meeting to plan the next move.
0:29:45 > 0:29:47And that's going to us a week to take that out?
0:29:47 > 0:29:50Two weeks. Two weeks to take it down, and maybe a week to get
0:29:50 > 0:29:52down here, so probably no longer than three weeks.
0:29:52 > 0:29:55Not only are the foamers quarantined,
0:29:55 > 0:29:59the team don't know if the foam-mixing tanks actually work.
0:29:59 > 0:30:02If we get these down, Amanda, and it fails,
0:30:02 > 0:30:05then we're looking for a new one as backup, aren't we?
0:30:05 > 0:30:09Well, that's another problem that we've got, isn't it?
0:30:09 > 0:30:13The team has to choose between buying new kit
0:30:13 > 0:30:16or gambling on the old kit working when it arrives.
0:30:18 > 0:30:20Either way, there's a three-month wait.
0:30:21 > 0:30:24The Christmas launch is off.
0:30:25 > 0:30:28So, who's going to tell Pam?
0:30:28 > 0:30:29I'll get her drunk first.
0:30:35 > 0:30:38So, what date is it now?
0:30:40 > 0:30:42- It's...- Production start?
0:30:42 > 0:30:45Well, we've said 18 weeks from now.
0:30:45 > 0:30:47- Right.- It's disappointing,
0:30:47 > 0:30:51but I think it does give us a better control, but we are where we are.
0:30:53 > 0:30:55Right.
0:30:55 > 0:30:58Good stuff. I need a date. I want to put it up on the board.
0:31:04 > 0:31:08The mission to create 200 jobs in the region by reviving a dormant
0:31:08 > 0:31:12brand is on hold until the new kit arrives.
0:31:12 > 0:31:15The sisters are taking stock before Digby's next visit.
0:31:19 > 0:31:21I think that our whole project planning was naive
0:31:21 > 0:31:24right from the beginning. On hindsight, there was no way
0:31:24 > 0:31:26we were going to be able to move, physically,
0:31:26 > 0:31:29all of the manufacturing plant in the time that we had.
0:31:29 > 0:31:32Probably didn't give too much thought at that stage on,
0:31:32 > 0:31:34how are we going to pull this whole thing off?
0:31:34 > 0:31:40For one thing, we hadn't actually seen the equipment.
0:31:40 > 0:31:43We'd seen some photographs of it and we'd seen some specifications.
0:31:47 > 0:31:51Digby's driving north to advise Pam on the next move.
0:31:55 > 0:31:57I hope he doesn't ask me too many challenging questions.
0:32:04 > 0:32:09A couple of weeks ago, Pam said to me that in eight weeks' time,
0:32:09 > 0:32:12she would have this all ready to rock'n'roll.
0:32:12 > 0:32:16I've now heard that they've got big issues with their foam-mixing plant.
0:32:16 > 0:32:20So, there's a few things I want to know. Firstly, how did this happen?
0:32:20 > 0:32:24I mean, did they get up to Scotland and did they look at this plant,
0:32:24 > 0:32:28properly inspect it, have it surveyed, see if it's fit for purpose?
0:32:28 > 0:32:32Every day this is delayed, that's more money lost for ever.
0:32:32 > 0:32:34We can't have that. I'm going to find out why.
0:32:37 > 0:32:41It's taken Pam's team nine months after agreeing the deal
0:32:41 > 0:32:44to check if the kit they bought works.
0:32:44 > 0:32:47Why has this basic error occurred?
0:32:47 > 0:32:49How much did you pay for this business?
0:32:49 > 0:32:51All in all, just over a million.
0:32:51 > 0:32:53So, you're going to part with a million quid...
0:32:53 > 0:32:55Including the stock. There's a...
0:32:55 > 0:32:59Right. So, how much would you apportion for these machines?
0:32:59 > 0:33:00- About a quarter of it.- Right.
0:33:00 > 0:33:04So, you're going to pay a quarter of a million pounds for some gear
0:33:04 > 0:33:07that you're not certain is going to survive the journey
0:33:07 > 0:33:08- in an operational way?- Yeah.
0:33:08 > 0:33:12And you didn't bother to go and find out if someone could tell you
0:33:12 > 0:33:14whether it would or not?
0:33:14 > 0:33:16No.
0:33:18 > 0:33:19Hand.
0:33:21 > 0:33:22Dear me!
0:33:22 > 0:33:24DIGBY STUTTERS
0:33:24 > 0:33:27Digby's blaming production, but is that right?
0:33:27 > 0:33:29Was it a resource issue?
0:33:29 > 0:33:32Were you so busy that you didn't think of it?
0:33:32 > 0:33:36- Well, I did think about it, but... - Did you scream it from the rooftops?
0:33:36 > 0:33:39No, I didn't. Probably should have.
0:33:39 > 0:33:43I probably should have made my thoughts more sort of louder...
0:33:43 > 0:33:46Does Jeff's admission point to communication issues
0:33:46 > 0:33:49caused by the company's family structure?
0:33:49 > 0:33:50Do you think there's anybody here
0:33:50 > 0:33:53who thinks, "I'm just going to leave it to her?"
0:33:53 > 0:33:56Erm..
0:33:56 > 0:33:57- No.- Sure?
0:33:59 > 0:34:04- No, I...- Cos the one issue, especially with family owners...
0:34:04 > 0:34:09How do you enable an environment in which they know
0:34:09 > 0:34:11they can't leave it to you?
0:34:11 > 0:34:14I'd like to think that we do have that kind of environment.
0:34:14 > 0:34:17Whether this could have come out sooner if we had had
0:34:17 > 0:34:19more of an environment, but I think it's...
0:34:19 > 0:34:21- I think that's where I'm taking you. - Yeah.
0:34:21 > 0:34:25- Could this issue have been, ding-dong, alarm...- Yeah.
0:34:25 > 0:34:29Weeks earlier, if you had an environment where people
0:34:29 > 0:34:30felt more empowered to do so?
0:34:30 > 0:34:33I think people are empowered and do it with a passion
0:34:33 > 0:34:37- and do it with a drive. - Challenge you?- Erm...yes.
0:34:37 > 0:34:40- Yeah, definitely challenge me. - Tell you you're wrong?
0:34:40 > 0:34:41Yeah.
0:34:41 > 0:34:45- Which obviously isn't very often. - Oh, quite!
0:34:46 > 0:34:50Is Pam willing to reform Ebac's family structure to help expansion?
0:34:50 > 0:34:54One of the challenges of family businesses is,
0:34:54 > 0:34:57how do you accommodate growth?
0:34:57 > 0:35:00Because it can't all be managed by the family,
0:35:00 > 0:35:02and at some point, you have to have
0:35:02 > 0:35:04very senior positions brought in from outside.
0:35:07 > 0:35:12Big answer today was they fessed up, they faced up,
0:35:12 > 0:35:15they analysed it, and they're dealing with it.
0:35:15 > 0:35:18I think they need to get some more people and quite quickly,
0:35:18 > 0:35:21but good people, and they've now got to really deliver.
0:35:21 > 0:35:25Big stuff in there for the next few weeks.
0:35:26 > 0:35:31Digby's first appraisal of Pam's project was that she had to focus
0:35:31 > 0:35:32on marketing the freezers
0:35:32 > 0:35:35and building an efficient production line.
0:35:36 > 0:35:40Now he's discovered a deeper issue the company must address
0:35:40 > 0:35:41as it expands.
0:35:45 > 0:35:48It's a problem many family companies face -
0:35:48 > 0:35:51how to nurture a professional team
0:35:51 > 0:35:54within a pre-existing family hierarchy.
0:35:59 > 0:36:02He's sent Pam and sister Amanda to Bolton, Lancashire,
0:36:02 > 0:36:05the home town of family bakers Warburtons,
0:36:05 > 0:36:11to get ideas on giving non-family members real power in the company.
0:36:11 > 0:36:15We can smell the bread already, so my tummy's rumbling anyway.
0:36:19 > 0:36:23One family has run this company for five generations.
0:36:26 > 0:36:28- Hello, Dad. - Why don't you just say...?
0:36:28 > 0:36:32Since current boss Jonathan took over from his father in 1991,
0:36:32 > 0:36:36it's been his signature on every loaf.
0:36:42 > 0:36:43Like Pam and Amanda,
0:36:43 > 0:36:47he grew up living in his family's business.
0:36:52 > 0:36:55I've been coming in here for 50 years.
0:36:55 > 0:36:58My sister and I used to have judo lessons in the flour room.
0:36:58 > 0:37:01I don't think health and safety would let us do that now.
0:37:02 > 0:37:04Like Pam and Amanda,
0:37:04 > 0:37:08his passion for his product pushes him to innovate.
0:37:08 > 0:37:10You'll see it has four different pieces,
0:37:10 > 0:37:13and then it goes through a series of cutters,
0:37:13 > 0:37:18which turns, basically, one and three, and two and four...
0:37:18 > 0:37:22around against each other, and that affects the mouth feel and the eat.
0:37:26 > 0:37:30Unlike Pam and Amanda, he knows a business secret
0:37:30 > 0:37:33that has helped his company grow into a household name.
0:37:35 > 0:37:37- Yes, thanks, Jonathan.- Very welcome.
0:37:37 > 0:37:39That was really interesting to see that.
0:37:39 > 0:37:43It's now up to the sisters to listen to his frank advice.
0:37:43 > 0:37:46One of the things you have to remember is that this business,
0:37:46 > 0:37:48on a day-to-day basis, is run by professionals.
0:37:48 > 0:37:52It's too big a business for us to do it and, quite frankly,
0:37:52 > 0:37:53we've had 30 years at it,
0:37:53 > 0:37:56and we've got an excellent of team senior managers.
0:37:56 > 0:37:58And how was that process?
0:37:58 > 0:38:01Because as you grow, your structure has to change.
0:38:01 > 0:38:03We know that we have to make some changes
0:38:03 > 0:38:06to that middle management and senior management structure,
0:38:06 > 0:38:08and it's kind of hard to let go.
0:38:08 > 0:38:12It is, but if I could give you one little piece of advice,
0:38:12 > 0:38:15is surround yourself with people who are better than you.
0:38:15 > 0:38:18- Just don't tell them.- Yeah!
0:38:18 > 0:38:22My dad was never a great advice-giver,
0:38:22 > 0:38:23but that's one of the things he said -
0:38:23 > 0:38:27make sure you surround yourself with people who are better.
0:38:27 > 0:38:31Now, to run an organisation like this, that's a big ship to steer,
0:38:31 > 0:38:36and so there's got to be a captain, there's got to be somebody in charge.
0:38:36 > 0:38:40Yeah, I mean, I think that you have to have...
0:38:40 > 0:38:43Inevitably, a business our size, you have to at some stage realise
0:38:43 > 0:38:45that you are just a small cog in it.
0:38:45 > 0:38:50- Yes.- And you have to let the quality people run the business
0:38:50 > 0:38:53on a day-to-day basis, and it's a bit back to my point,
0:38:53 > 0:38:55you know - they know who owns the business.
0:38:55 > 0:38:58You can afford to employ people who are better than you,
0:38:58 > 0:39:00because they're not going to do you out of a job,
0:39:00 > 0:39:02and in which case, common sense says,
0:39:02 > 0:39:04well, why wouldn't I seek the very best?
0:39:09 > 0:39:14The biggest tip for me from Jonathan was when he said about
0:39:14 > 0:39:17recruiting people who are better than you. You kind of think,
0:39:17 > 0:39:19"That can't be right," but actually, it makes complete sense.
0:39:19 > 0:39:22We can't do it with the structure that we have, so we've got to
0:39:22 > 0:39:25bring in new talent and make sure that we get the best from them,
0:39:25 > 0:39:27and bring in the best of the best.
0:39:31 > 0:39:34Will Pam and Amanda take the advice and hire,
0:39:34 > 0:39:36and then give non-family members
0:39:36 > 0:39:40the power to make meaningful decisions in the company?
0:39:44 > 0:39:48With the freezer launch on hold until the new kit arrives,
0:39:48 > 0:39:50Digby's trying to turn the delay to Pam's advantage.
0:39:51 > 0:39:54So far, Pam's remained steadfast.
0:39:54 > 0:39:58She doesn't need new consumer research to sell freezers.
0:39:58 > 0:40:02Digby's making a final attempt to change her mind.
0:40:13 > 0:40:15We're in trendy Clerkenwell.
0:40:15 > 0:40:18This is where creative types come to work.
0:40:18 > 0:40:23In there is one of Britain's greatest brand experts,
0:40:23 > 0:40:24a woman called Rita Clifton.
0:40:26 > 0:40:30Rita has worked on brand campaigns for Yorkie,
0:40:30 > 0:40:32British Airways and Andrex.
0:40:32 > 0:40:35Digby's hoping her expertise will show Pam
0:40:35 > 0:40:38it's not advisable to market a product
0:40:38 > 0:40:40without knowing your consumer.
0:40:40 > 0:40:42This is quite a clash of cultures, really,
0:40:42 > 0:40:45because we've got London, the Southeast,
0:40:45 > 0:40:49we've got this new trendiness, if you like,
0:40:49 > 0:40:51and then we've got hard-nosed,
0:40:51 > 0:40:54quality, common sense Northeast grit.
0:40:56 > 0:40:59- Well, good morning, good morning. - Good morning.
0:40:59 > 0:41:01To make them think about what consumers want,
0:41:01 > 0:41:03they've been asked to pitch
0:41:03 > 0:41:06why they'd buy Norfrost freezers over the competition.
0:41:06 > 0:41:08- Rita. Meet Pam.- Hello.
0:41:08 > 0:41:11- Hello, Rita.- Meet Jo. - Nice to meet you.
0:41:13 > 0:41:16Digby's putting Pam's DIY marketing strategy
0:41:16 > 0:41:19under the microscope of an industry pro.
0:41:21 > 0:41:26And Rita's already done her homework on the company.
0:41:26 > 0:41:28Their marketing maybe isn't as sophisticated
0:41:28 > 0:41:31as many other competitors.
0:41:31 > 0:41:33That hasn't necessarily been a problem
0:41:33 > 0:41:35in the markets they've been in so far,
0:41:35 > 0:41:37but obviously they're entering markets
0:41:37 > 0:41:40that are much more sophisticated, much more competitive.
0:41:41 > 0:41:46So, this is going to be a challenge for them in how they up their game.
0:41:46 > 0:41:48So, ladies, the floor is yours.
0:41:49 > 0:41:51So, Norfrost brand values.
0:41:51 > 0:41:54We've got a small, little mood board here
0:41:54 > 0:41:57just to go through these values slightly with you.
0:41:57 > 0:41:59Good value. It's good quality,
0:41:59 > 0:42:03it's a product that is made well and is made to last.
0:42:03 > 0:42:06It's essentially British manufacturing at its best.
0:42:06 > 0:42:11Reliability. You've got to have a product you can depend on.
0:42:14 > 0:42:17Pam and Jo have pitched quality and reliability
0:42:17 > 0:42:20as values consumers want in a freezer.
0:42:22 > 0:42:24What's the professional's verdict?
0:42:24 > 0:42:27You had a list of brand values there.
0:42:27 > 0:42:29- They are a bit generic. - Yep, they are.
0:42:29 > 0:42:31So, value for money, reliability.
0:42:31 > 0:42:34I don't know whether there's a consumer anxiety out there going,
0:42:34 > 0:42:36"Oh, dear, it's going to break down."
0:42:36 > 0:42:38I don't know if that's ever surfaced,
0:42:38 > 0:42:40so I think doing your consumer research
0:42:40 > 0:42:43will be really, really important there.
0:42:44 > 0:42:49In one observation, Rita's exposed how poor consumer research
0:42:49 > 0:42:52could lead Pam to incorrectly position her product
0:42:52 > 0:42:55in one of the most competitive markets in the UK.
0:42:57 > 0:42:59What solutions can Rita offer?
0:42:59 > 0:43:03If we think about the important characteristics of any strong brand,
0:43:03 > 0:43:06number one is clarity, clarity of what you stand for,
0:43:06 > 0:43:09and how you're different from your competitors.
0:43:09 > 0:43:12If you can capture something about this brand
0:43:12 > 0:43:13in a few words or phrases...
0:43:13 > 0:43:16How do you make a chest freezer distinct?
0:43:16 > 0:43:18Well, I'm not sure what the answer is yet,
0:43:18 > 0:43:21but I'm damn sure you've got to really try to do that,
0:43:21 > 0:43:23because you need a clear message about
0:43:23 > 0:43:26how your brand is somehow different and better.
0:43:26 > 0:43:27Secondly, in this new digital age,
0:43:27 > 0:43:30even if don't have a big marketing budget,
0:43:30 > 0:43:32if you've got really powerful, passionate fans...
0:43:32 > 0:43:35- You can do a lot with it. - ..you can do an awful lot with it.
0:43:35 > 0:43:38- Social media is made for you. - It could well be.
0:43:41 > 0:43:45'I was half hoping for a magic wand and a secret answer
0:43:45 > 0:43:48'that gets you where you want to be with the brand.'
0:43:48 > 0:43:51I do pick up the point that perhaps we're a little generic
0:43:51 > 0:43:55- and we've got to be a little bit more specific. - Same as everybody, aren't they?
0:43:55 > 0:43:58I would take away from this that we need to go away
0:43:58 > 0:44:01and do a huge brainstorming session, of the ways we can make...
0:44:01 > 0:44:05It's a boring product, and Rita touched on that quite a lot,
0:44:05 > 0:44:09but go away and think of the quirky things
0:44:09 > 0:44:11that we could possibly do with this.
0:44:12 > 0:44:14They're doing this on gut instinct.
0:44:14 > 0:44:16Because they've been so good with dehumidifiers
0:44:16 > 0:44:20and water coolers, they actually think they can do it again.
0:44:20 > 0:44:23Now, maybe I'm going to be proved wrong,
0:44:23 > 0:44:26but I think they should be going to market with more hard data,
0:44:26 > 0:44:31so that Rita's advice on brand can link in
0:44:31 > 0:44:34to some hard consumer data, more than gut instinct.
0:44:40 > 0:44:42Pam isn't doing the research
0:44:42 > 0:44:45because she thinks her brand already has loyal consumers.
0:44:45 > 0:44:49Even if she's right, if there are no freezers in shops,
0:44:49 > 0:44:52those consumers will look elsewhere.
0:44:54 > 0:44:57So, they must start making freezers as soon as possible.
0:44:59 > 0:45:01Now there's renewed hope.
0:45:01 > 0:45:03The asbestos has been safely dealt with
0:45:03 > 0:45:06and the foaming kit has finally arrived.
0:45:07 > 0:45:10- These are foamers? - These are the foamers, yeah.
0:45:10 > 0:45:12- The infamous! - The infamous foamers, yeah.
0:45:12 > 0:45:16Today, Digby's back to push for a new launch date.
0:45:16 > 0:45:20At some point, given that these have been a bit of a source of delay,
0:45:20 > 0:45:23I'm going to come back here
0:45:23 > 0:45:27and see a freezer coming down the old track, am I?
0:45:27 > 0:45:29- Hopefully.- Hello?!
0:45:29 > 0:45:32Can I hear words like "yes"?!
0:45:32 > 0:45:36Well, the plan tells us that we should be ready
0:45:36 > 0:45:39to do some hundred-litre by March.
0:45:39 > 0:45:43- Back end of March. - That is six weeks from now.
0:45:43 > 0:45:46I am going to come back on the March of 31st, on the day,
0:45:46 > 0:45:49to see a freezer coming down the line,
0:45:49 > 0:45:54- and you two guys are saying, yeah, that's on. Are you?- Yeah. Yeah.
0:45:54 > 0:45:56Well, good luck, chaps.
0:45:56 > 0:45:58We're going to need it! THEY LAUGH
0:46:02 > 0:46:05Now the freezer launch is imminent,
0:46:05 > 0:46:07there's renewed pressure on Pam and Jo
0:46:07 > 0:46:09to come up with that USP
0:46:09 > 0:46:12that will create demand for Norfrost freezers.
0:46:12 > 0:46:15It's our family giving to your family.
0:46:15 > 0:46:17How can we help your family?
0:46:17 > 0:46:21Inspired by Rita Clifton's advice to develop a stronger selling point
0:46:21 > 0:46:26than reliability, Pam and Jo are planning cooking videos
0:46:26 > 0:46:29that position their freezers as a family friend.
0:46:29 > 0:46:33And Jo has clear ideas on getting this message out.
0:46:33 > 0:46:36We've got to get social media working for us.
0:46:36 > 0:46:39We've got to get blogs going, we've got to get PR working with us.
0:46:39 > 0:46:41Because I think we could really use it,
0:46:41 > 0:46:45and if we miss something, we could miss the whole boat with it.
0:46:45 > 0:46:48All she has to do now is persuade Pam.
0:46:48 > 0:46:50Getting videos on social media is...
0:46:50 > 0:46:54- They get the biggest clickthroughs. - Yeah.
0:46:54 > 0:46:57You can have the recipe linked to the YouTube video.
0:46:57 > 0:46:59You can have the recipe on the Norfrost website...
0:46:59 > 0:47:02Do people just look through YouTube for things to look at?
0:47:02 > 0:47:04I mean, my kids do.
0:47:04 > 0:47:07Yeah, I think there's a lot of people that tend to.
0:47:07 > 0:47:09But what do they look for?
0:47:09 > 0:47:11Having been advised to let others take the initiative,
0:47:11 > 0:47:14will Pam trust Jo's internet expertise?
0:47:14 > 0:47:19Is it maybe a good idea to just get the recipes onto the website,
0:47:19 > 0:47:22you then start using social media to get those recipes out as well,
0:47:22 > 0:47:25that then lifts our ranking anyway, because we're using social media
0:47:25 > 0:47:29to get those out as well, and all that in turn
0:47:29 > 0:47:30should generate us traffic,
0:47:30 > 0:47:33- which should then generate us enquiries and sales.- OK.
0:47:33 > 0:47:35Sounds like a plan. Smashing.
0:47:37 > 0:47:40It's a significant shift.
0:47:40 > 0:47:42At last, Pam is letting the expertise of others
0:47:42 > 0:47:44benefit the company.
0:47:49 > 0:47:51When the foamers arrived,
0:47:51 > 0:47:55John and Jeff told Digby freezers would be ready in six weeks.
0:47:55 > 0:48:00The problem is, they don't yet know how the foaming guns work.
0:48:02 > 0:48:06Another missed deadline will lose Ebac more consumers and more money.
0:48:06 > 0:48:11So, Pam's sister Amanda has persuaded commercial fridge makers
0:48:11 > 0:48:15Carter International to share freezer foaming secrets.
0:48:15 > 0:48:18We've never used them before, we're learning as we go,
0:48:18 > 0:48:21and it'll be nice to get some insights
0:48:21 > 0:48:22from people who actually use it.
0:48:31 > 0:48:33It may not be a household name,
0:48:33 > 0:48:36but nearly all of us will have used a Carter product.
0:48:38 > 0:48:41And we'll probably do so again very soon.
0:48:45 > 0:48:48When you pull food from a supermarket fridge or freezer,
0:48:48 > 0:48:52the chances are it's been made by Carter.
0:48:53 > 0:48:56Today, the team are hoping to have their questions
0:48:56 > 0:48:58about foaming kits answered.
0:48:58 > 0:49:01This is the brains of the operation.
0:49:02 > 0:49:06You can't have an inexperienced operator on here,
0:49:06 > 0:49:09purely because of the health and safety issues.
0:49:09 > 0:49:11Not only are the chemicals hazardous,
0:49:11 > 0:49:14they must be mixed at the point of injection,
0:49:14 > 0:49:17and at an exact ratio.
0:49:19 > 0:49:21The chemical reaction is only when it's fired.
0:49:21 > 0:49:22That's the only time it mixes.
0:49:22 > 0:49:25The only time it can touch is right at the end of the nozzle.
0:49:28 > 0:49:30If the mixture is wrong,
0:49:30 > 0:49:34the foam won't do its job and freezers won't stay cold.
0:49:36 > 0:49:38You want it clean, you want it sharp,
0:49:38 > 0:49:40you don't want an overspill.
0:49:40 > 0:49:44Cos every time you overshot or you overspill, it's costing you money.
0:49:46 > 0:49:48This is a huge step forward for the team.
0:49:48 > 0:49:51They've found the missing piece to the jigsaw.
0:49:53 > 0:49:56It's so critical that these are well-maintained. It's so obvious,
0:49:56 > 0:49:58I know, but it's things that tend to be missed,
0:49:58 > 0:50:00because it's out of the way.
0:50:00 > 0:50:02- If this goes down, you stop production, don't you?- Exactly.
0:50:04 > 0:50:06It's up to the kit to arrive and for these two to make sure
0:50:06 > 0:50:08they do their jobs properly
0:50:08 > 0:50:10putting the procedures and the controls in place.
0:50:15 > 0:50:17So, with everything in order,
0:50:17 > 0:50:20it's up to Pam and her team to be ready for the deadline.
0:50:27 > 0:50:30Over six months, Digby has shown Ebac how it must evolve
0:50:30 > 0:50:34when attempting its risky diversification into white goods.
0:50:34 > 0:50:38There are lessons for all British manufacturers.
0:50:41 > 0:50:43In the run-up to his final visit,
0:50:43 > 0:50:47they've been trying to apply the difficult changes he's suggested.
0:50:49 > 0:50:54They've tried overhauling the brand to stand out in a crowded market.
0:50:54 > 0:50:55..cold water.
0:50:58 > 0:51:01And they've tried setting up a production line
0:51:01 > 0:51:04based on cutting-edge efficiency principles.
0:51:09 > 0:51:11Now it's results day.
0:51:13 > 0:51:17So, are Ebac making freezers?
0:51:23 > 0:51:26Well, where are my chest freezers, then?
0:51:26 > 0:51:31- Where? Where? You promised me, did you not?- I did.
0:51:31 > 0:51:33So, where are they?
0:51:33 > 0:51:36OK, Digby, I could have had a chest freezer here,
0:51:36 > 0:51:39but it wouldn't have been one that we've made the whole thing for.
0:51:39 > 0:51:41I respect you for that, I respect you for that.
0:51:41 > 0:51:42It's not good enough, though.
0:51:42 > 0:51:46Listen, I'm... I'm with you on that one.
0:51:46 > 0:51:50So, who in that process, since I was last here...?
0:51:50 > 0:51:52Where is the blockage?
0:51:52 > 0:51:56- There was a bad decision on how long it would take.- Yep.
0:51:56 > 0:51:58And that's where?
0:51:58 > 0:52:01See, I would always say that that falls to here.
0:52:01 > 0:52:04- Yeah.- That that's where the blame lies.- So would I.
0:52:04 > 0:52:07You know, so... And not getting into the detail enough.
0:52:07 > 0:52:11Yeah. You're the boss, and that's where it lies, really.
0:52:14 > 0:52:16Pam's admitted her big mistake.
0:52:18 > 0:52:19There are no freezers yet
0:52:19 > 0:52:23because she underestimated the timescale of setting up.
0:52:23 > 0:52:25But she wasn't in this alone.
0:52:25 > 0:52:28- Hello!- Hello. All right? - Good to see you.
0:52:28 > 0:52:30What have John and Jeff learnt?
0:52:30 > 0:52:32You guys said to me
0:52:32 > 0:52:36there'll be a chest freezer coming down there on the March of 31st.
0:52:36 > 0:52:37- Yes, we did.- Yes, exactly.
0:52:37 > 0:52:40But it ain't good enough, gentlemen.
0:52:40 > 0:52:43So, what one thing could you have done that you haven't?
0:52:43 > 0:52:47It would have been that we started planning the project
0:52:47 > 0:52:50a little bit earlier, instead of halfway through.
0:52:50 > 0:52:52I also think it's the order
0:52:52 > 0:52:54that we brought the equipment down from Scotland.
0:52:54 > 0:52:56I think if we'd started with the foamers first,
0:52:56 > 0:53:00we'd have realised we were probably going to have some problems.
0:53:02 > 0:53:04Despite the lack of finished freezers,
0:53:04 > 0:53:06the team have made huge progress.
0:53:13 > 0:53:17They've installed presses to turn metal into freezer cabinets,
0:53:17 > 0:53:22and robots to do the intricate work of assembly,
0:53:22 > 0:53:26all using the principles of efficiency they saw earlier.
0:53:32 > 0:53:33This is the final assembly here.
0:53:33 > 0:53:38So, when, last time, I saw those bits of kit that were...
0:53:38 > 0:53:41- creating the cabinet.- Yes.- And then they were coming this way.
0:53:41 > 0:53:43- Yes.- And then they go into the foamer.
0:53:43 > 0:53:45- Yeah.- Then they were going to come down here for final assembly.
0:53:45 > 0:53:48- That's exactly right. - And what you're telling me,
0:53:48 > 0:53:50good thing, is you've planned this
0:53:50 > 0:53:53so you're going to be doing all of that movement of it
0:53:53 > 0:53:56- in a more compact space than was happening in John o'Groats.- Yes.
0:53:56 > 0:53:59Oh, totally more. We've got loads of this track left over.
0:53:59 > 0:54:02- And fewer people. - And fewer people, yeah.- Yeah.
0:54:02 > 0:54:03- Keep your overheads down.- Yeah.
0:54:03 > 0:54:06- Get more efficient, more productive.- Yeah.
0:54:06 > 0:54:09Now, if that takes a bit longer to get that planned well,
0:54:09 > 0:54:11that's time well spent, I'm happy with that.
0:54:16 > 0:54:20But there's one more issue to resolve.
0:54:20 > 0:54:24Has Pam been convinced by Digby's views on consumer research?
0:54:26 > 0:54:29So, almost the first time I met you,
0:54:29 > 0:54:32I was talking to you about what does your consumer look like
0:54:32 > 0:54:36and I asked you, you know, are you going to do any research?
0:54:36 > 0:54:39And you did seem a bit reluctant towards that.
0:54:39 > 0:54:43It's probably fair to say that we thought we knew everything.
0:54:43 > 0:54:47We thought we knew how we would take this to market and we thought
0:54:47 > 0:54:49that our biggest mistake was that
0:54:49 > 0:54:52probably the retailers would welcome us with open arms
0:54:52 > 0:54:55and almost be... "We've been waiting for you."
0:54:55 > 0:54:58- That kind of... - And that's not happened?- No.
0:54:58 > 0:55:03So, we've done some market research, we carried out some market research,
0:55:03 > 0:55:06which led us to finding out
0:55:06 > 0:55:09that a significant amount of people actually own a chest freezer,
0:55:09 > 0:55:12which was great news for us.
0:55:12 > 0:55:14It did solidify that we know people want these,
0:55:14 > 0:55:16because people have already got them,
0:55:16 > 0:55:19and it brought to us a little insight into the fact
0:55:19 > 0:55:21that we'd missed a group of people. The allotment growers.
0:55:21 > 0:55:24People who own allotments love chest freezers.
0:55:26 > 0:55:28Armed with consumer research,
0:55:28 > 0:55:31they've applied Rita's branding advice to their product,
0:55:31 > 0:55:33and put recipes online.
0:55:33 > 0:55:37'So, I am the proud owner of a chest freezer business
0:55:37 > 0:55:40'and a proud owner of a chest freezer.'
0:55:40 > 0:55:43It's not really about selling the product,
0:55:43 > 0:55:46it's about building that brand and giving it depth
0:55:46 > 0:55:50and creating a chest freezing community.
0:55:50 > 0:55:54Because it actually understands how, as families,
0:55:54 > 0:55:57we'll get benefits from our chest freezers.
0:55:59 > 0:56:03To get traffic to your website, you've got to get interest.
0:56:03 > 0:56:05Not everybody searches for chest freezers every day.
0:56:05 > 0:56:08- Is that right(?)- Believe it or not!
0:56:08 > 0:56:10- There's a surprise(!) - Believe it or not, it's a fact.
0:56:10 > 0:56:13But people do search for recipes every single day.
0:56:13 > 0:56:16If this means we can funnel traffic to the website
0:56:16 > 0:56:20that may then come back one day and want a freezer,
0:56:20 > 0:56:23- they'll remember us because they've been to our site.- Sure.
0:56:23 > 0:56:26Because of these. It's a great way of just simple interaction.
0:56:26 > 0:56:28But, actually, you stay in someone's memory.
0:56:28 > 0:56:29That'll be a marvellous tool.
0:56:29 > 0:56:32MAN: 'And there we have the meat done. And now for the veg.'
0:56:35 > 0:56:38Six months ago, Pam assumed her track record of achievement
0:56:38 > 0:56:41in a niche industry would bring success
0:56:41 > 0:56:43in the white goods market.
0:56:45 > 0:56:47How does she feel now?
0:56:47 > 0:56:49We're moving into the whole diversification,
0:56:49 > 0:56:50the whole growth thing.
0:56:50 > 0:56:52- We're moving out of our comfort zone...- Yeah.
0:56:52 > 0:56:56..of making something that we've made for years, we understand the market,
0:56:56 > 0:56:59we understand how to make them, and we've had to learn
0:56:59 > 0:57:00some very quick things here.
0:57:00 > 0:57:05And, yes, about this particular project, but more than that,
0:57:05 > 0:57:08about how as a business we need to develop and grow
0:57:08 > 0:57:11and make sure that we're ready to do the next project
0:57:11 > 0:57:14- and the next project.- Spot on!
0:57:20 > 0:57:23I felt really disappointed when I pitched up here this afternoon,
0:57:23 > 0:57:25and frankly...
0:57:25 > 0:57:28well, I did tell them off, and they deserved it.
0:57:28 > 0:57:31I always knew this was going to be a tough conversation with Digby
0:57:31 > 0:57:34so, you know, that's kind of over and done with.
0:57:34 > 0:57:39But mostly, I'm ready for the challenge.
0:57:39 > 0:57:42The best way of getting people to change isn't to tell them,
0:57:42 > 0:57:44and it isn't to force them.
0:57:44 > 0:57:47It's to get them to buy into it because they understand it,
0:57:47 > 0:57:49because they've come to their own decision.
0:57:49 > 0:57:51That's exactly what's happened here.
0:57:52 > 0:57:57He's given me something that I think will have real longevity for me,
0:57:57 > 0:57:59and to be honest, I think sometimes
0:57:59 > 0:58:01I won't even realise that's where I got it from,
0:58:01 > 0:58:02because I've just changed now
0:58:02 > 0:58:05and I'm different and I look at things differently.
0:58:05 > 0:58:08So, I won't think, "Oh, Digby would have done this or said this,"
0:58:08 > 0:58:10I'll just do it differently.
0:58:10 > 0:58:14I think the change will be sustainable and beneficial
0:58:14 > 0:58:16because they have come to terms with it
0:58:16 > 0:58:19and they have made the decision what to do.
0:58:19 > 0:58:22I take my hat off to them. It's been a privilege to come here
0:58:22 > 0:58:25and learn and understand. I hope I've helped them
0:58:25 > 0:58:27and I wish them all the best in the world
0:58:27 > 0:58:29and I thank them from the bottom of my heart.