Marketing strategy of a furniture store

Marketing strategy of a piece of article of furniture storeCustomers are core for any line of growths. Companies manufacture products to execute their needs. Every caller-out would like to increase their grocery store share through sales by beating their competitors. In order to achieve this, whizz should have in effect(p) and telling marketing plan. The most vital element of a successful marketing plan knows your customers likes, dislikes and expectations. Basing on these factors a marketing strategy could be developed which allows you to fulfill customers needs by under defending your competitors and identify changes in market place. The every purpose of marketing plan is to outline a strategy to attract and belongings customers. This could be done by defining your market, identifying your customers and competitors.The two main marketing principles areEntire efforts of a company should be directed towards satisfying customers. sales volume which is profitable is more i mportant than maximum sales volume.Marketing strategyMarketing strategy is identifying customer groups and serves them better than its competitors by offering convey out do products, prices, distribution and promotional methods to that segment. The strategy should address unmet customer needs that earn potential profitability.Target marketingIdentifying separate customers who makes up large groups which helps to aim their needs more specifically. This smaller segment of the general market is convenient for market research and teaching helps to serve this segment better. This segmentation flock be done in two waysGeographical segmentation serving customers needs in a particular geographical area.Customer segmentation identifying those spate who buy products and services and targeting those groups.Products and serviceTo satisfy the target markets product is very important. This is how organizations earn revenue. These products may be in the form of goods, services or ideas.pr omotional strategyPromotion is communication process with the customers about the products through advertisements and direct customer interactions. This helps companies to distinguish their product from competitors.Pricing strategyThe right price is the life-and-death for maximizing total revenue. In general high gearer prices means lower volume and vice versa.Micro AuditConsumersIndustry and market related instruction regarding consumer buying patterns plays very critical in expecting future levels of demand. Having sales volume cultivation of past helps to foresee the market trend and buying pattern. Key information like current market volume, demand, etc helps to identify the profit potential market. This information helps to build relationship with customers by identifying their needs, wants, preferences and buying habits.Key PointsThe market for kitchens (includingfurniture, worktops, sinks and taps, appliances sold as part of a kitchen and installation) was estimated to be worth 3.25 billion in 2008, but it is estimated that it go away decline to 3.12 billion in 2009.Product innovation, fashion in the square-toedty and the desire for case-by-caseity are all strong drivers to growth in the market.Added to this, the growing emphasis on the kitchen and its central place at the hub of the home is withal stimulating interest in the kitchens appearance, functionality and furnishings.Mintel believes the consumer market will return to growth by late 2010 or early 2011, accelerating to 2014. All the previous positive factors keep on in place for a recovery.Kitchens UK August 2009 MintelCompetitorsSustaining competition in market is important for any business success. Identifying the direct competitors and analyzing their market information like where they stand in market, their strengths and weakness, sales performance, pricing strategy, turn overing their product endure and promotional methods helps us to prepare strategies to penetrate into their m arket for greater market share.Distributors and suppliersBuilding proper distribution channel to reach target listening is important. Distributors are one of the key elements in supply chain of a company as he helps to move product from hands of the company to the hands of customers. Reaching target market is unlikely without proper distribution channel. A distributor saves both property and time for companies by their expertise in what they do.Macro auditMacro environment considers challenges in the world at large. These elements are politics, Economy, technology, laws and environment which impact the market. Having lucubrate information about these elements helps an organization to serve market better.PoliticsPolitical system like taxation policies, foreign trade policies, how supportive the government is for cloak-and-dagger sector helps an organization to plan their marketing strategies more efficiently.EconomyInformation like inflation, disposable income levels decides the income of the market place which is vital for planning pricing strategy. engineering scienceIn todays world technology is growing in very fast phase. Technology enables business to communicate more efficiently and saves time which helps to take efficient decisions.EnvironmentEnvironmental policies have a major role on the manufacturing process. Availability of raw material, energy costs and pollution are the major influencing factors of tone of voice of product.Research RequirementsRetailers Opinion Retailers knows and understands the behavior pattern of customers. They will have the first hand information on market and what exactly customers are looking for in a product they want. Retailers even have key information on taste of customers who belongs to a particular geographical region.Research methodology one to one interview is the best research method for this objective. One to one interviews help to get most of the information possible from a retailer which may misfire through questionnaire or online survey. Through this method we could able to know the retailers personal views on our product as well as his experiences with customers while selling our product. This information regarding our product and service helps us to understand our lagging points and allow us to work on them. As retailers interact with different kinds of customers during their day to day business they know the customers preference and choice better. So, retailers are the best source of information regarding the pattern of customers buying behavior and the factors which influence their buying decision. As retailer macrocosm the possible large data base of information regarding customers, one to one interview research method is the best to require the information in its totality. style and Trend In the matter of fashion and trend only change is constant. Peoples taste vary from person to person, place to place etc. people constantly get influenced by latest trend and fashion.Resear ch methodology conducting surveys through online as well as placing questionnaires at shops to answer are the best methods to collect information. Young working people who are single and newly married couples are best sample for this kind of survey. These sample can be questioned online by preparing questionnaire with pictures of product with different kinds of inventions and asking them which kind of furniture they like and why. Through this method cover epoch will be more as most of the youngsters intake net. At shops customers can see, feel and know more about the product. So, getting answers for what they like or dislike in a product example color, comfort, style, and design etc through questionnaires placing at shops helps to analyze the thought process while shopping.Target Customer segment profile Before venturing into new market it is important to study the characteristics of that target group as customers thoughts and opinions are different depending on factors like place , income etcResearch methodology Focus group is the best research method which can be adapted here for this research. The targeted group can be working professionals, business men above age 25 who belongs to both mid and high income markets. This information could be gathered at offices, social gathering places like hotels, restaurants, organized events etc. Feedback from a group has more diversified opinions on a product. This provides most invaluable information about brand, quality, pricing, design etc which helps company to provide best possible quality furniture with appealing design at low-priced prices (Saunders M. et al., 2006).SW/OT AnalysisStateroom Furnitures StrengthsIt is very popular brand known for its quality hand crafted furniture which is do of wide mannikin of wood.Have wide product range of kitchen furniture which covers from high end dining set to china display cabinets.Capital reserves are available for development and even purposeless funds can be raised i n strong business cases.It has a facility with new machinery which could be used to manufacture a variety range of furniture.Stateroom Furnitures WeaknessSR furniture could not utilize its potential in market completely. Many people back off from buying the furniture for its price even though they like it.Its market is limited only to certain section because of its old fashioned design.The material used to make furniture is limited to wood which leads to lack of variety in product range.Though the brand is popular its distribution is limited only to up-market stores in cities and counties.Only 55% of the factories potentiality is being utilized.Market OpportunitiesA huge section of market with young audience is open to target the products.Furniture with modern stylish designs and made of different materials are in huge demand. This space in market in not yet bet ond by SRThere is demand for brand quality furniture around the world not only for domestic purpose but also business pu rpose.Large section of market with audience who belongs to middle income group is still open.Market ThreatsChange of peoples perception towards kitchen as cooking, eating and hanging out area is a threat to kitchen furniture sales. fictile and Self assembly furniture is becoming popular which are cheap and comfortable to use.As young audience dont like old fashioned furniture there is threat of losing this market completely in future.Reduction in room sizes may lead to not using the dining set which will affect SR sales figures because 50% of sales are of dining sets.Resultant StrategiesDifferent strategies can be developed by using TOWS establish workS-O Strengths Opportunities StrategiesCapital reserves, Product range and brand personality could be utilized (S1/2) to promote present sales.Utilize brand reputation to export and weightlift sales (S1) could be increased as there is demand for quality brands all over the world. (O3)Brand reputation and Capital reserves and factory capacity (S1/3/4) could be utilized to manufacture and market modern style furniture for young audience.(O2)W-O Weakness Opportunities strategiesA Product range at commonsensible price (W1/4) could be manufactured and marketed through more outlets even in small towns for middle income group which is a large market segment. (O4)Making furniture with different variety of materials (W2/3) like steel, tractile etc covers more market and could attract young audience. (O1/4)S-T Strength Threats StrategiesBrand kitchen range (S1) can be utilized to venture into other furniture segments like office, bedroom, etc. (T4)For the future Utilize capital reserves (S3) to venture into plastic and self assembly segment (T 2/3/4).Utilize capital reserves (S3) to change perception of people over dining set and other furniture by running campaigns. (T1)W-T Weakness Threats StrategiesShould make furniture with low cost materials like plastic and others (T2) for jam market which can be sold at rea sonable prices (W1).Factory capacity could be utilized to manufacture adjustable furniture with innovative designs (W2/5) to answer space problems which can capture the market of young and other segment who dont like tralatitious furniture (T3/4).Marketing StrategiesUnique selling propositionThe USP aims at making new range of durable kitchen furniture made with different materials like wood, steel, Plastic etc. and knowing appealingly jibe to the taste of all age groups.PositioningTo be successful SR furniture should use its brand reputation to capture market neglected before which became advantage to competitors.Thus it is targeted at both sophisticated clientele and mass market by berth itself as quality furniture maker for all age groups.The marketing strut should be planned in such a way that the product range has both quality and appealing designs to cover all age groups and mid income market. This can be achieved with two lines of products where one is positioned at mass market with affordable furniture range and the other for sophisticated and higher income group. This product mix could be achieved with both traditional and modern designer furniture range made of different materials like steel, veneer, plastic etc. This is illustrated in brand positioning map belowPrice vs. Quality DesignGood Quality challenge DesignAffordable PriceSRGaliform PLCHigh PriceKohler MiraJaccuzi UK Group PLCBristan GroupPoor Quality DesignThe above illustration shows that the market positioning is to capture both high end and mid market by offering good quality furniture.Competitive StrategySR Furniture desire to venture into new market with affordable price range for mid income group rather down market as the product range is in the first place concerned about the brand image it carries for its quality and design. With current product range its strategy is to capture both high end and mass market of all age groups. Mid market prices could be achieved as the mat erial usage will vary for different designs without affecting the quality and durability of the product. This mass market is going to sustain as getting good brand like SR Furniture at affordable price is great care for for money.Growth StrategyUtilizing the brand reputation to venture into new market with new product range is very good move as it makes market penetration easy. The strategy of making a product range of modern designer furniture for sophisticated market could carve its share easily as there is lot of room in market with young audience and others who dont like traditional designs but still appreciate SR brand for its quality. In long term this strategy gives a great scope to enter into the other furniture segments like bedroom, living room etc.Marketing mix differences Consumer vs. BusinessMarketing mix differs from business market and consumer market.ProductConsumer market Product range should consist furniture with appealing design to all age groups. Consumer prefe rs good looking furniture which is comfortably fits in their rooms and easy to mobilize during house deliver.Business market Business market includes buyers like hotels, restaurants etc who dont shift often. They prefer durable furniture which lasts long and design of furniture is very important in setting up a good ambiance and image in market place.PricePricing strategy varies between consumer and business markets as the buying pattern differs. Business clients place bulk orders and consumers buy individual pieces of furniture. Furniture manufactured for business purpose could be costlier as it is manufactured according to the specifications of business client.PlaceFurniture is sold through retail stores at different locations for convenience of individual consumers to shop and transport. There would be no specific location to sell furniture for business purpose. Manufactured furniture according to the clients order would be transported directly from factory.PromotionTelevision a dvertisements, ads in news papers and magazines, hoardings, exhibitions and other promotional methods are adapted to reach consumer market. Catalogues would be designed with products picture and key information which are distributed to clients personally by marketing team.