Export of a non-existing product

1. 

2. Table of contents
 A small analysis of the coveted market: Germany
 SWOT analysis
 STP Alfred Sloan approach
 The prism effect on the national mix-marketing
 4P
 Conclusion

3. About Germany
 Cultural and social
 Germany in a few words
 Furniture in Germany
 Purchasing criteria for piece of furniture of Germans consumer
Design Materials Technologic

4. About Germany
 Cultural and social
 Most important points to develop to export in Germany
 Technical innovation
 Creation and design
 Marketing
 Commercialization
 Service
 Legal
 The legal part is the same as it is for the Belgian market because
all the laws are European laws.

5. About Germany
 Economic
 Increasing competition in all market segments
 No more a valuable inheritance but rather a decorative object
 Competition from countries with low-cost labour (Asia and Eastern
Europe).
 Degrading financial performances
 Margins are highly subject to fluctuations in the price of raw
materials (wood, metal, etc.)
 Increasing pressure on prices
 Very powerful distributors => bargaining power crumble
 Less expenses expected for Germany and Italy
 Period 2010-2020
 Ageing of the population

6. About Germany
 Economic
 Exports

7. About Germany
 Economic
 Imports

8. SWOT analysis
 Strengths
 Ecological: product can be used again for an another furniture
 “Made in Belgium” because Belgium respects the salary rights of workers
 Multi-purpose furniture
 Material: wood components
 Solidity
 Flexible according to the taste and the imagination of the consumer
 Possibility to buy online
 Weaknesses
 High price compared to competitors
 Our Belgian target: 25 to 35 years >< main consumers of furniture in Germany
are 30 to 64 years
 Cognitive product with high implication

9. SWOT analysis
 Opportunities
 Technological Innovation
 Price-quality ratio is important in Germany
 Price competitiveness doesn’t have importance in Germany
 Furniture is considered like a decorative object and no more like an inheritance.
 Increasing of export to Switzerland
 Germans are large spender for furniture
 Threats
 The brand confidence is important and we are not know on the German market
 Intensification of competitors in all market segments
 Competition from low-wage countries (Asia and Eastern Europe)
 Increase of raw materials price
 Distributors are more and more powerful => bargaining power is going down for
manufacturers

10. STP - Sloan approach
 Segmentation
 Age (-18 ; 18-25 ; 26-35 ; 36-45 ; 46+)
 Size of the accommodation
 Kind of family (singles ; children with only one parent ; couples
without children ; couples with one child ; couples with 2 children
or more ; blended families)
 Targeting
 36-45 years old
 Small accommodation
 Singles, couples with one child, blended families

11. STP - Sloan approach
Population
18-25 years 25-35 years -18years 36-45 years
Big housing Small housing
Singles
Children with
only one
parent
Couples
without
children
Couples with
one child
Couples with
two or more
children
Blended
families
+45 years

12. STP - Sloan approach
 Positioning
 Identification
 Value proposition
 interior design, flexible and multi-purpose
 can adapt to any situation
 Differentiation
 Multi-purpose furniture
 Need of flexibility in any circumstances
 Competitors

13. Prism effect
Prism effect
on national
mix-
marketing
Magnifying:
Price
Opaque:
/
Reducer:
Product
Promotion
Transparent:
Place

14. 4P
 Product
 Product concept
 wood product, no tool for the construction, multi-purpose furniture
 Product characteristics
 Material: multiplex
 Dimensions, 5 types of pieces:
 IM: large squares, dimension 60x60x2
 AG: small squares, dimension 30x30x2
 GI: support, dimension 3x3x15
 MOB: finishing sheet, 3 size available, 3x2x15/30x2x30/60x2x60
 For a more elaborate design, finishing sheets of different colours may
be added.
 There are anchor points of the same size on all surfaces to allow a
maximum of assembly possibility.

15. 4P
 Product
 Packaging
 sturdy cardboard
 Cubic form
 Content description,
pictograms
 Basic kits
 Necessary to build a table, a
chair and a shelf
 Individual kits

16. 4P
 Price
 Average range, good quality
 Only add some transport costs
 Basic kits: little augmentation
 Individual kits: same prices
Table Chair Shelf
Price 364€ 94€ 409€
IM AG GI MOB1 MOB2 MOB3
Price 20€ 25€ 20€ 10€ 15€ 12.5€

17. 4P
 Place
 Where
 Online
 Specialized stores (ROLLER, Hoffner, Segmüller )
 How
 In store buying
 Home delivery
 Post office (Postfach, like Kiala in Belgium)
 Size of distribution channels
 Short for online purchases
 Long for in stores
Production Wholesaler Retailer Customer
Production Delivery service customer

18. 4P
 Promotion
 Message more ecological, durable and reusable
 Written press, magazines
 Polaroid’s, history of a family throughout the years
 Internet
 Social networking
 A few websites
 Written press is working better in Germany
 DDS - das magazine für möbel und ausbau (the magazine for
furniture and interior improving)
 Wohnen Magazin (Housing magazine)
 Schöner Wohnen (beautiful houses) +its website

19. 4P
 Promotion
 The slogan
« Il n’y a pas de limite à votre
intérieur »
« Es gibt keine Grenzen fûr Ihre
Inneneinrichtung »
« There is no limit to your interior »

20. Conclusion
 Two countries, even side by side can be really different
 Not as simple as « just putting a product on a foreign country
and selling it »
 With a few changes, the German market is accessible
 It could even be more interesting than the Belgian one