O&O Company is a large Egyptian furniture manufacturer and retailer with over 50 years of experience. The new Marketing Director's goals are to achieve strategic objectives, adhere to the mission statement, and achieve the vision statement. The company plans to target the high-end furniture market and position itself as providing high quality, elegant alternatives to mainstream office furniture. It will focus on using quality materials, superior designs, and integrating emerging technologies.
Luxury Home Furniture Leader: O&O Provides Comfort Through Superior Design
1. 1
Executive summary:
O&O Company is one of the largest furnituremanufacturer and retailer in
Egypt. O&O has been working in the furniturefield for about 50 years, wehave
an excellent reputation in the marketand we are famous of delivering superior
quality.
On the last year, the company faced several problems and due to the
fluctuations of the economy, unstablepolitical situation, and the intense
completion.
I have been hired recently as a the new Marketing director for this company ,
my main aim is to achieve the company’s strategic objectives , adhere to the
mission statement ,and aspiring to achieve the vision statement
We believe that by targeting the high-end market, wecan successfully occupy
an emerging niche that other channels of distribution have not been able to
target. With the implementation of the new marketing focus outlined in this
plan, we will position our productline as the high quality, elegant alternative
to mainstream office furniturefound in office supply stores. Our ability to
integrate emerging technologies in our design, provide complimentary pieces
for a complete set, and customdesign ergonomic executive-level office
furniturewill providestrengths and establish a reputation of unmatched
quality.
2. 2
Market target and objectives:
External environmental Scanning andIndustry analysis:
External Environment
1. The Political situation is stable now, and the legislations encourages the investment.
2. The legislations encourages the new entrants to the market, which forms a low entry
barrier.
3. There is a liquidity issue in the market, due to the tough economic position.
4. As there is a liquidity issue in the economy, the competitors started to accept
installments payment to encourage the customers to buy from them.
5. The Government and the environmental pressure groups are promoting for green
industries, recycling, and for the sustainability of the natural resources.
6. There are many leading technology provider, who can provide business solutions
technological packages.
7. The Banks are increasing the loans conditions , due to the liquidity problems
8. There is an availability to use new recycled materials rather than wood, like using
Metal, plastic bamboo, MDF.
9. Most of the newly hired work force are the 90s Porn generation “Generation Y” , our
HR department need to setup new training and development plan for them ,and for
the older generation .
10. The work force now is much diversified genders, generations, and ethnicities.
11. The Government is undertaking the development on the infrastructure to depend on
the fiber optics rather than the copper wires, the new infra structure will speed up
the connection and the communications between sites and team members.
12. Most of the clients abroad requires ISO, or any other quality certificate to ensure the
superiority of our products.
13. Increasing cost of energy.
14. The rapid increase in new cities specially uptowns
15. New resorts on the Coastal areas
16. Egypt has experienced a drastic increase in the number of shopping malls,
hypermarkets and megastores — in 2005, the number of shopping malls in Greater
Cairo alone had reached 24.
17. youth in Egypt have been greatly influenced by Western culture
18. Egypt’s consumer protection agency “CPA” is very Active ,and accessible
3. 3
19. There 24 articles on law No 67 of 2006 for the consumer protection
20. The family is the most significant unit of Egyptian society.
21. Social class is very apparent in Egypt since it determines your access to power and
position.
22. There are three social classes: upper, middle, and lower.
23. Age distribution: Age structure: 0-14 years: 32.1% (male 14,272,494/female
13,639,550)
15-24 years: 17.8% (male 7,913,351/female 7,536,925)
25-54 years: 38.4% (male 16,942,145/female 16,398,524)
55-64 years: 6.7% (male 2,888,193/female 2,973,531)
65 years and over: 5% (male 1,949,145/female 2,381,241) (2014 est.)
4. 4
Five Force Model
1. There is an Open Market
2. Any One with the Right
amount of capital can
invest in this industry
3. The industry is Fragmented
1. There isNo substitute for
furniture sothe threatis
relativelyweak.
2. Howeverwe are weakinthe
productdiversity,we depend
mainlyonwoodfurniture .
3. Othercompetitorstarted
provide Plastic,Processed
Plywoord,andMetal
furniture
1. The Buyer has a very strong
bargaining power
2. The Buyer is very sensitive
to price
3. Low switching Cost ,and
large number of
Competitors
1. The barginingpowerof
supplierislow.
2. We have a verystrongbrand
name , and we purchase in
large quantities
3. Many supplierswouldloveto
workwithus.
1. Very Intense Competition
in the furniture market
2. Fragmented industry
3. Low switching Cost
Threat of New Entrant
Threat of substitute products
Rivalry Forces
Bargaining Power of Buyer Bargaining Power of Supplier
5. 5
Segmentation
Segmentation is a marketing tool that involves dividing the market into smaller segments
with distinct needs, characteristics, or behavior
Household – Office furniture
1. There are e a large number of households that we can target, we already have a
several product line that provide a high tier products for that segment
2. The are many business activities that we can target with a wide range of products
“Hotels , Resorts , Factories , Retail Chains , restaurants , schools ,universities
,airports , etc “ we didn’t target that segment before , this segment has a great
potentials it requires both high tier ,and low tier products .
Geographical segmentation
1. Big Cities like Great Cairo , Alexandria ,
2. Coastal resorts like The North Coast , The Red Sea resorts requires a certain type of
furniture , and a good match for the seasonality on these locations , we can target
the chalet ,Villas owners ,and Hotels
3. New cities New cities like 6th of October ,the 10th of Ramadan , AlShikh Zaid , Borg AL
Arab , New Damiat
4. New Districts/Compounds most of the new compounds are expensive ,and they are
located in uptowns
5. Large Malls eg Mall of Egypt , Mall of Arabia ,City center , San Stefano Mall , Cairo
Festival
6. Sinai Region
7. Upper Egypt Region
8. The Delta there are the heavily populated area most of the population is
concentrated there and it requires great attention
Furniture Style
1. Traditional
2. Contemporary
3. Oriental
4. Office furniture Basic office furniture suitable for business use
5. Furniture material “Wood , Steel , Bamboo ,MDF “
6. 6
6. Space Saving Furniture there are many houses with a small space eg studios that
requires certain type of furniture “one piece that has several uses eg. Sofa turns
to bed
Mass production Customization
Some People prefer the customized furniture, other like the readymade
7. 7
Positioning statements:
The perceptual map is very useful tool as it shown us wheredo we stand
among our competitors, and new marketentrant.
previously wepositioned ourselves “O&O” as High Cost/Quality ,and Highly
Mass Production ,butthe market in this segment became very saturated and
the completion is very intense , Therefore we will needed to reposition our
company to less populated segment by moving from Mass Production to mid
Mass customization , it will be very useful specially with the Business sector
targeting
Positioning Statement
“O&O Provides Luxury withComfort than Any Other furniture manufacturer,
we do this providing using the best materials, andsuperior comfortable
Design“
O&O
American furniture
In & Out
Home CenterIstekbal
Ashley
IKEA
Smart Furniture
Furniture Market
Low
Cost/Quality
Mass
Produced
Low
Cost/Quality
Mass
Produced
Mass
Customized
High
Cost/Quality
8. 8
Brand
Itis very important to defend our strong brand name, as it is vital for the
sustainability of our organization.
We follow the family branding strategy all of our products , Factories ,and
retail chains have the Same Brand Name “O&O” , even with our new Business
Furnitureproducts wedecided to keep the same name rather than creating a
brand extension , the reason is it will be muncher cheaper to promote for the
new productline ,and as moreof the Business sector users starts to use these
products it l send them a messageabout the superiority of our products ,and
they will buy our Household furnitureto havethe same experience, it’s much
more profitable to make a good retention plan for our customers as by this
way they will turn to Brand advocates .
We will undertakesome steps to maintain a strong brand name
• Providea superior quality product to the customer
• Providegood servicealong with the product“we can make installments
service, free Shipping service, and warranty on our products,
• Get the customers feedback, wewill develop our customer service
department and use the NPS scores to monitor the customer satisfaction and
loyalty “
• Build a consistent brand image , by choosing an elegant spokesperson,
deliver strong messages within the advertisements ,Sponsoring prestigious
events “add the ads part here “
• Monitoring the competitors, and the market, it's very importantto keep a
close eye on the Macro , and micro environment, as a failure to spotand adapt
to serious changes will lead into business disaster
Packaging
Furniturethe is one of the products that needs to be displayed without
packaging on the showrooms, in order that the customer can experience all
the products attributes , however the packaging is very important for us
special in the shipping stage as some products will be vulnerable to scratches ,
any shaky motion , mostof our competitors justwrap the furniture in cartoon
,and bubbles wrap in a very ugly way , this traditional way might help to
protect some items however it's not that comfortablefor the eye and it
9. 9
doesn't haveany logo ,or name this types of wrapping doesn'tgrasp any
attention
So we haveprovided different ideas for packaging that suits the one piece
furnituree.g. “Sofa” and the other suits that can be assembled e.g.
“Wardrobes”
Basically or packaging systemhas several layers
1. Corner protectors
2. Pallets
3. Foam and Bubble wraps
4. The cartoon boxes, which has the logo and the name imprinted on it
We have a special team in a uniform that handles the delivery, and the
assembly of our products
10. 10
Market mix strategy for each market target:
After identifying the several parts of the market we will selected the
targeted segments that we serve, our strategy will be differentiated
marketing wewill develop different marketing mix for each segment.
Household – Office furniture
1. HouseholdB2C
We will continue serving the household, as this is our base market, and
will develop it by spreading our stores in new locations, providenew
products, and services (place)
2. Business ,Office,Hotels B2B
For many year we have ignored that segments someof our already
existing products matches the needs of Business sector , we will need
more marketing research justto know the needs for each of the
business sectors thatwe will target “Qualitative research will be good
enough for this sector as their number will be relatively small compared
to the Household sector. (promotion)
Geographical segmentation ( place and price)
1. Cairo “Downtown” ,and only the 2 Big malls on the Uptown “The
Uptown will servethe new Compounds ,and New Cities
2. Alexandria “2 Big Malls”
3. Delta “we will choose”Al Mansura City “ to Servethe Delta Area
4. Upper Egyptwe will Choose“AsyutCity “ To ServeUpper Egypt Areas
Furniture Style
All the styles needs to be provided as customers has different tastes
however the change will be on the material while keeping our good
quality high we wil startto depend less on Wood as we wantto promote
for the green life wewill startproviding other types of Materials like
processed wood , Steel , Bamboo , MDF , Plywood , Beanbags . The most
important thing is to keep the quality high
1. Traditional
11. 11
2. Contemporary
3. Oriental
4. Officefurniture Basic office furniture suitable for business use
5. Furniturematerial “Wood , Steel , Bamboo ,MDF , plastic “
12. 12
Product strategy:
The Furniture is a durable product as it survives for long time .
The Furniture is considered as a shopping goods as it takes a lot of
research by the customer to determine the type, and style of the
furniture,which needs a special communication to deliver the how
excellent our products are a highly trained sales persons arerequired for
these types of products ,which means a that we need to select sales
persons with high quality, and to providethem with a proper regular
training to ensurethat they are updated with the latest trends in the
furniture,and decoration.
Our organization also provide attached services with our products such
as
a- Shipping
b- Warranty
To avoid any variability within our services we need to provide our
employees with proper training, and to set service standards, each
employee have to adhere to it
It’s an obligation for any organization that needs to grow ,and to ensure
its sustainability to search for the unsoughtcustomer needs , our last
marketing research campaign reviled the customers tend to search for
suitable matching decorative pieces ,and wall papers ,the results showed
also that lots of elders ,and people with spine problems look for a
comfortable seats ,and they also go to physicaltherapy centers to get
massage,microwave,or infrared therapy .
So we havedecided to providethese products:
a- We will providedecorative products that match the furniturestyles like
Vases, Wallpapers, and curtains.
b- After Screening different new products ideas we have decided to
introduce new product “Comfy Lazy boy Chair “
13. 13
Comfy Lazy Boy “New Product “
Our R&D has developed a Lazy Boy Seat which has a massaging pads ,and
infrared head that can be controlled with a remote control , this productis
considered as a Partially new productas the Lazy Boy Chair already exists in
the market,but we have add new options to it .We have decided to introduce
that product as our marketing research indicated that there are a substantial
number of users will be interested in this product,
In addition, the production of this new Chair is combatable with our
production and marketing ability as we already producestandard Lazy boy
chairs within our product Mix.
To test this new productwe will send a small number of these Chairs to some
Old People’s Nursing Homes, and get their feedback about it
14. 14
Product Mix
Product Mix
Office Funiture
Chairs
4 items
16 Variant
Economic
3 Sizes
Stools
5 colors
Office Chairs
5 Shapes
FoldingChairs
3 Colors
Tables
3 Items
10 Variants
Sofa
5 Items
20 Variants
Traditional contemporary Orintal
Width We have 4 product lines “Office ,
Traditional , contemporary , and Oriental “
The Length for the Office Furniture line is
12 items “4 chairs , 3 Tables , 5 Sofas “
The Depth of the Office furniture line is 46
Variant
The Product lines are very consistent , as
they are closely related to each other
15. 15
Price strategy:
Breakevenanalysis andEquilibriumprice
To calculate it we need to calculate our fixed and variable Cost
Fixed + variable = to determine how many units we need to sell to cover the
cost monthly
We will maintain our pricing position as a premier provider. We are the best
productavailable, for the most discriminating consumer. We intend to
maintain our separation fromthe price competition at the lower end of the
business. Our plan calls for no significant changes in pricing.
The overall pricing strategy is premium priced; we will useproductline
promotion strategy with B2B and develop a promotion for B2C to increase the
overall sales.
16. 16
PEOD
The furniture its self has no substitute, you arestill in need to the furniture,
however the customer can still change between styles ,materials depending on
the price of the furniture, the furniturestyles/materials are substitutes .
17. 17
Distribution strategy:
Evaluate the end-user:
Since we have 4 different categories of productlines, our users'needs and
demands varies which requires to modify our strategy to suit the needs.
Channel design:
Previously therewas a repeating complaint that the furniturenot well stored
which made many of the customers mad. the causeof this issuehappened by
the wholesales which affected our image so we had to cancel our contracts for
the next year temporary, and add another condition to the penalty clause that
their storage's techniques "must" match our standards.
There will be strict rules in our contracts in the indirect distribution channel to
make sureto deliver the customers the best experience.
There will not be any direct contact with wholesalers and we will focus more
on VARs (Value Added Resellers) and agents by introducing new packages, we
will focus on social media providing more information about products,
programs and how we ensurethe excellence to our customers to encourage
more agents, VARs and distributors to contact us.
18. 18
We will maintain the selective distribution strategy with morechannel control
to improve the quality of distribution and keep our customers delighted.
Managing channels:
A new focused programwill be introduced to our members to train the staff
and motivate them to improvetheir performancewhile selling the products
and monitor the functions to find out how to keep the excellence of the
functions and take actions to improvethe faults.
To motivate intermediaries, wewill usepositive actions, such as offering
higher margins to the intermediary, special deals, premiums and allowances
for advertising or display. On the other hand, negative actions may be
necessary, such as threatening to cut back on margin, or hold back delivery of
product.
19. 19
Promotion strategy:
"refers to raising customer awareness of a productor brand, generating sales,
and creating brand loyalty. It is one of the four basic elements of the market
mix, which includes the four P's: price, product, promotion, and place."
After the company decided to enter a new market (Business activities) and
producing new products ( Furniturematerial - DecorativeProducts ), and also
after getting a positive feedback about the new product( Comfy Lazy Boy )
fromthe old peoples’ Nursing homes. So We must creating a new "Promotion
mix" or " promotion strategy" to could compete in the new market and provide
the new products.
Communicationstrategy :
There are a three communication ( promotion ) strategies: Push strategy – Pull strategy –
Mix strategy. We will work through the ( Mix strategy ) because :
1- we have new products and must advertising these products to all the community to know
what its features or benefits, so we need pull strategy activities such as ( advertising and
sales promotion )
2- we enter a new markets and we need to push our products in these markets and find new
retailers and wholesalers, so we need push strategy activities such as ( personal selling and
trade promotion )
Our promotional objectives :
There are a many objective of promotion, but we select objectives, which related with our
strategy such as:
o Support sales increases to maintain our profit although the competition
o Encourage trial of our new products
o Create awareness about our new products and services and inform about its feature
and benefit.
A – Public Relation:
The planned and sustained effort to establish and maintain goodwill and mutual
understanding between an organization and its publics.
We will focus on some activities of public relationship :
1- Website and social media:
on the website and the social media will be some information and services for the visitor
such as:
20. 20
On the website will be information about the history of the organization and the
type of business activities which the organization providing.
Information about the nearest branches, agents, retailers and wholesaler to your
home
On Facebook page and YouTube channel will be coverage about the organization’s
efforts in implementing recycling policy and the events which the organization is a
sponsorship to .
On the website will be the newest offers and the team of Facebook page will
continue to cover and show this.
Submission of complaints and suggestions through the website or the Facebook
page.
2- Sponsorship:
It is an agreement between a company and an event organizer where the company gives
money in exchange for rights to associate the company name with the events.
Sponsorship objective :
We want to show our role and responsibility in protecting our environment by adopting the
policy of (Recycling) by increase using the material, which could recycle and decrease using
of woods. In addition, all this through:
Being the sponsorship of A.P.E (Association for the Protection of the Environment) in
Cairo which their mission is
" A.P.E.'s mission is to promote environmentally safe solid waste management in
Egypt through empowering garbage collectors, particularly women, youth, and
children, to become technologically able to manage a viable system of household
waste, including recycling. Through comprehensive development, including health,
education, social, economic and cultural programs, garbage collectors become
agents of change for a better environment. "
and one of their major activity is improving the practice of solid waste management
across Egypt
Being the sponsorship of (EGY - Waste & Recycling Expo) which will be held in 27
April 2017 in Cairo. And this is not just an Expo to increase the awareness of the
benefits of recycling by also will be place to strengthen cooperation between the
workers in this field through deals and agreements
Being the sponsorship of the activities, seminars and forums which The Egyptian
ministry of Environment overseeing.
B - Sales Promotion:
21. 21
We will use the "sales promotion" technique in our plan because of some reasons according
to the "Five Force Model" :
1. The company will face more competition because there is an open market and
anyone now can invest in the industry. And there is low switching cost.
2. We will start the production of new products ( furniture material and comfy lazy boy
) and there a new market for us and has old competitors which have a huge power in
it. So we must compete them.
3. We must keep on our market share for the old products and build a market share for
the new products
4. Need of advertising the new products for retailers.
So we must to pull the consumer by "consumer promotion" and push the retailers and
wholesalers by "trade promotion".
Consumer promotion :
We will use mix of 2 tools of consumer promotion to 2 purpose : increase short –term sales
to the Household furniture ( old products )
and help build long-term market share to (decorative products) such as vases, wallpapers
and curtains. And also the material furniture.
First: premiums:
That is goods offered free or low costs as an incentive to buy a products.
for example we will introduce these offers to the customers :
2 vases the third is free
3 vases 5% discount
4 vases 7% discount
Wallpapers for 2 rooms with discount 7%
Wallpapers for 3 rooms with the fourth free
And examples for the material furniture :
2 bamboo chairs with 1 bamboo table free
4 plastic chairs with 1 plastic table free
Buying material furniture of any kind above 5000 L.E with 10% disount.
Second: prices packs:
That is reduced prices marked on the label or package.
With this tool we will achieves our 2 targets, increasing sales of the household furniture and
build market share of decorative and material products .
22. 22
For example :
Household furniture more than 10000 L.E and 2 vases with one more vase free and
discount 5%
Household furniture more than 15000 L.E and wallpapers for 1 room with discount
7%
Household furniture more than 20000 L.E and wallpapers for 1 room with wallpapers
for other room free and discount 7%
Trade promotion :
refers to marketing activities that are executed in retailbetween these two partners.
Trade Promotion is a marketing technique aimed at increasing demand for products
in retail stores based on special pricing, display fixtures, demonstrations, value-
added bonuses, no-obligation gifts, and more.
Why we use "Trade promotion" :
1- to persuade the retailers and wholesalers to carry the brand.
2- To persuade the retailers and wholesalers to carry more units more than the normal
amount.
3- To induce retailers to promote the brand by featuring, display, and price reduction .
4- To stimulate retailers and their sales clerks to push the product .
Trade promotion tools:
There are tools will use with retailers or wholesalers and others tools will use with big malls
and megastores.
Retailers and wholesalers in Cairo "downtown", Delta area and Upper Egypt areas :
1- Buying allowance:
A reduction, or allowance, in the wholesale price offered by the manufacturer or wholesaler
to a retailer in exchange for purchasing a larger quantity of the item in a set period. Also
called off-invoice allowance.
2- Wholesale price:
The cost of a good sold by a wholesaler. The wholesaler will usually charge a price
somewhat higher than he or she paid to the producer, and the retailer who purchases the
goods from the wholesaler will increase the price again when they sell the good in their
store.
3- Price deals:
Extra discount in addition to regular discount for the quantity of purchases
23. 23
4- Trade allowance:
used to encourage retailers to stock a product such as cash discount or promotional
incentives
Big malls and megastores in Cairo "Uptown" and Alexandria:
1- Trade shows in these malls and megastores to promote our products, services and
sales promotions for the end users.
2- Points of sale display (POS):
it refers to the store display that can influence consumers to purchase product in
shops.
C- Personal selling:
There is face-to-face contact between a company representative and a customer in personal
paid promotional tool
Personal selling is very effective tool for promoting the products and services of the
organization. In addition, in our case is very important because:
1- we enter a new market for us ( Furniture for business activities ) so we need to build a
long-term relationship in this market with the new customers in this field such as banks,
companies, malls,etc.
2- we have new products ( Comfy lazy boy chair ) and we need display features of these
products for the targeted customers such as hotels, hospitals, old people’s nursing
homes,etc.
So we need highly trained sales persons and provide them a proper regular training to
ensure that they could explained the features of the new products and how customers using
it.
Personal selling and sales promotions :
To ensure that personal selling could be effective and successful tool and to achieving
targets, we will using it with sales promotions. That could be a very interested thing for the
customer and we will do this for the furniture of business activities
We will have some offers for this field and especially for the new branches:
o Package more than 40000 L.E with shipping, furnishing and mounting for free
o Package more than 60000 L.E with shipping, furnishing, mounting, a warranty for 3
months free.
o Package more than 75000 L.E with discount 5% and also shipping, furnishing,
mounting, and warranty for 6 months for free
o Package more than 90000 LE with discount 7% and also shipping, furnishing,
mounting and warranty for 6 months for free
24. 24
Sales force strategy :
Because the selling personal is an expensive tool and most business activities are in Cairo
where companies headquarters so:
We will focus on (outside sales force) in Cairo, and another areas we will focus on (Inside
Sales Force) by (Tele-marketing and Internet)
D – Advertising:
We had strong reasons for caring of advertising such as:
1- We have new products need large advertising
2- we have huge market share and we must maintain it
3- Now there is high competition and new competitors
4- we need to show our new offers to all people
Although of it all, we could not invest big budget in advertising now. In addition, we will
much focus on the marketing by website and social media. Therefore, we have a chance to
setting some activities of advertising:
Outdoors:
we could take advantages of it because it is inexpensive could be effective if there is
in important areas which we targeted.
our outdoors will be written on them the new offers, our phone numbers, and our
Facebook page to could anyone contact with us
we will setting outdoors in some important areas which we targeted and we will
focus on :
1- New cities and compounds which is close to Uptown of Cairo to benefit from the
influx of new residents to cities and compounds
2- Delta area and Upper Egypt area specially in summer because the prevalence of
marriage in this period and season.
Radio:
we could benefit from the low cost of Radio advertising and reach large audiences
especially nowadays huge segments of people listen to Radio all over Egypt.
So we will agree with 2 or 3 known radio stations to be our advertising in peak
periods and choosing a famous program in each radio station and sure have a high
rate of listening and audience to be sponsorship of it and repeat our advertising.
Also our Ads in Radio must have information about us especially the website and
Facebook page
25. 25
Evaluating Advertising:
we could evaluate our advertising program by 2 tools:
1- The proportion of entry on the website and Facebook page during the period of
advertising program
2- The level of sales especially in the areas which outdoors are in them. And the requesting
of information about our agents and branches in these areas whether on the phone or on
Facebook page
26. 26
Marketing research:
The marketing research process:
1. Define the problemand research objectives
a. Introduceour new products
b. Develop a plan focused on showing the outstanding features and
why our customers love our products
2. Design the research plan
What information is needed?
a. Who is our targeted customer?
b. The economic and lifestyle of this customer
3. Developing the research plan for collecting information
Focus on quantitative research
a. Use of secondary research (CRMand pervious research)
b. Questionnaire(easy to collect information, specific, reach a lot of
people, cheap)
i. Will consistof two parts, the first personalquestions to
classify the customers, and the second is asking about their
opinions, feedback and roomfor improvements
ii. Get 7% discountfor completing the questionnaire
c. Houzz ( online community about architecture and decorating)
i. One of the most popular furnituresites
ii. More than 15Muser per month and 10Mapp user
iii. Cooperation will learn us about customers'behavior and
the trends in the market
d. Social media
i. A great space to track people's opinions and communicate
with our customers
27. 27
ii. Use the features of popular apps to market our products
and get closer to our customers
4. Collecting data
Time to collect and record all the information we can acquirein a
structureformlike spreadsheet
5. Analyzedata
Use of softwareprograms to segmentthe information to find out what
each group is looking for
6. Report data
Presenting results, insights, answers, recommendations, and visualizing
them will make the report more actionable and meaningful using MKIS
28. 28
Sales forecasts and budgets:
We are expecting to increase sales grow from $350 thousand lastyear to $450
thousand this year. The growth forecastis in line with our last year, and is
relatively high for our industry becausewe are developing new channels. In
2017 and 2018, weexpect growth closer to 60% per year, to a projected total
of more than $1 million in 2002.
For 2017, weplan to develop a company catalog, which will include some
other products for the same target customers. The focus will be an executive
level office catalog, with furniture, lamps, and other accessories.
Our location is a distinct advantage for local wood. We can buy higher quality
oak and cherry than either of our competitors. Since our sales increased over
the last two years, we havebeen able to buy at better prices, becauseof
higher volumes.
We work with three wood suppliers, local. AK supplies most of our oak, and a
bit of cherry and someother specialty woods. AK has been in business for as
long as we have, and has given us good service and good prices. This is a good,
stable supplier. TC Wood Products is a good second source, particularly for
cherry and specialty woods. Wehave used MW supplies as well, frequently, for
filling in when either of our main two suppliers wereshort.
We also work with a number of specialty manufacturers for furniturefittings,
drawer accessories, glass, shelving accessories, and related purchases.
we are one of the biggest buyers of the custom materials we need. Most of our
suppliers are selling through channels to hobbyists and carpenters, so they
treat us as a major account.
We depend on our dominance of the latest in technology of ergonomics,
combined with classic design elements of fine furniture. We must remain on
top of new technologies in display, input and output, and communications. For
example, our latest models are already assuming the desktop digital scanner as
a frequent accessory, and audio for use in creating presentations, email
attachments, etc.
29. 29
Contingency plan:
O&O Furnitureis unique in its discovery and utilization of the high quality,
executive level furnitureniche. Therefore, it is possiblethat with our success
and superior design, other, well-established furnituremanufacturers will
release a competitive productline. However, O&O focuses specifically on the
high-end, technologically integrated aspect of furniture. With this exclusive
concentration, O&O can continue to focus its resources on producing the best
executive level furnitureavailable. Another possiblechallenge would be the
emergence of a new company in our niche. This however, would not be quite
as threatening, as their initial marketsharewould be minuscule, allowing us to
strategize further for continued success. Finally, an established furniture
company may choose to begin marketing to our target market. This would not
be overly threatening becauseour products areinherently the best available
due to the true craftsmanship involved in their design and manufacture.