Marketing Management: A Case Study of Furniture Practice

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Marketing Management: A Case Study of Furniture Practice

























Marketing Management







Introduction

Marketing management is a set of process which helps in easy transfer of ownership of goods from the buyer to the seller. In the context of analysing the steps they have been seen as the same as functions of management (Case, 2020). It helps in developing the concept of the product to meet the customer need in a systematic manner (Olimovich et al., 2020). The assignment will study the process of marketing management at Furniture Practice considering the points of key theories and the competitive environment. It will also take in account the analysis of the organisation with a view of adapting the dynamic future and develop an actionable strategy.

Furniture Practice had been established in London in the year 1997 and has delivered numerous projects since the inception. The company has been providing proactive and dedicated service to the clients. In addition to this, it has been known for the factor of co-ordination with clients (FurniturePractice, 2021). The key persons of the organisation are Kenneth Mathew Kelly and Lee Jackson.





Discussion

Analyse their STP strategy, providing and insight into how segmentation, targeting and positioning are currently applied by your chosen organisation.

Segmentation

Assessing the segmentation strategy, it can be said that the company needs to analyse the types of people using the product. The factor of segmentation forms the base for defining the differentiation of the target audience. With a well-defined segment the company is able to select the market for the product and design an appropriate marketing mix. On the other hand, it has been also recommended that the company keeps a watch for additional opportunities and threats in the market. In the context of Furniture Practice, it has been seen that the company has varied products suitable for every customer (EconomicTimes, 2021). These products have been priced according to the segment which they have been targeted for. The technique of segmentation has benefits such as the clarity of the market, the untapped areas in the market, a focus on the developing market and an analysis of the competition (Rizzi, 2020). The company uses a demographic segmentation as it has been known that the customers may have different perceptions about the products. It helps in recording the responses of the market in a better manner and helps in efficient allocation of the resources with strategic planning. As seen the process of segmentation needs a base such as difference in the customers for division. The evaluation of the target market has to be measured according to the assigned parameters and the desired customer segment must be well-defined for effective pricing.

Targeting

There have been instances at times where the companies have to structure the marketing mix according to the types of customer. These techniques help in boosting the sales and helps in customer retention. In the view of the corporate world, it has been seen that the marketing mix varies on a large scale. There are cases where the customers have been given suggestions for the new arrivals. These techniques help in gathering the feedback from the customer and help the company to work on the suggested improvements (Hanlon, 2021). On the other hand, the company can also suggest the customer to refer the product to their relatives. These referrals can result in word of mouth marketing for the product. The fact cannot be ignored that Furniture Practice introduces new products according to the need of the customers (Feng et al., 2020). In the given scenario the company has been targeting the audience from households and corporate as they have varied products suiting to their needs from these audiences. They have products which cater to the services of household needs, office spaces and hospitality groups. The products in each of the sections have various brands which have been tailor made according to the customer demand. In the context of meeting the demands, the company has tied up with various brands. These collaborations help the organisation in sustaining in the market for a long time. However, the company also has to keep in mind the fact that the pricing of the products has to be competitive according to the customers purchasing the products.

Positioning

Once the above requirements have been met, the company has to study the positioning of the products. The positioning strategy has to be prepared in accordance to the fact that the company has to justify the price of the product in the market. These prices have to be decided keeping in mind the purchaser of the product (Kostelijk and Alsem, 2020). In addition to this, it has to be made sure that the product will sustain in the market providing value for money and the expected level of benefit for the user. The requirements of the product for gaining an advantage in the market are verified features of the product and a limited scope for the other brands to compete. In the context of the customer, the company has to make sure that product is appealing with the fact that it can be trusted with the usage and easy for an application (Melovi? et al. 2020). Considering Furniture Practice, it can be said that the company has established itself in market with a required customer base.

Cost (High)

Furniture Practice









Shape2

Quality (Low)

Quality (High)









Bristows Furniture









Cost (Low)



Figure 2: Positioning Map

(Source: Created by learner)

Considering the fact of Furniture Practice, the company has a record of fulfilling a number of projects for its clients with the required collaboration. The online store of the company helps the customer to have a glance of the products before purchasing. This factor provides a base for easy sales and maintains the required transparency.

Examine their marketing mix, focusing on the 4Ps for products and 7Ps for services, that your chosen organisation is currently applying.

In the context of marketing mix of 4 P's of the products for Furniture Practice:

Product

Considering Furniture Practice, it can be said that the organisation specialises in delivering furniture for every customer (Solan, 2020). The company has also given an importance to tie-up with various suppliers to design the products as per the expectation from the customer. These tie-ups help the company in fulfilling the needs of the customer and maintain the required relation.

As the company has various products for each market segment, it has to make sure that it delivers the product according to the customer expectation. If the said product is unavailable, the same should be updated on the website of the company (Tirto, 2020). The timely updating of the product will help in maintaining the required transparency with the customer. These are the workforce of the organisation who have a role in selling the product, designing, deciding the price and so forth. Although the list does not end here, the people element of the 7 P's involves the workforce involved directly and indirectly in selling. In today's scenario a great product is seen as scrap if it does not have the right employees to sell.

Price

As mentioned earlier, Furniture Practice has to cater to the needs of the customer from every segment, it has to make sure that the prices are competitive. It is seen that the company has various suppliers who help in meeting the demand from every market segment. In some cases, the company also needs to negotiate with the suppliers for the prices as the company needs to sustain in the market. In the view of the after sales service, the company has to make sure that it includes offers for the products. These offers will pave a way for boosting the sales and help in providing value for money of the customer. The company has to decide a price of the product which will match the budget of the customer in every way.

Place

The company has its websites for selling the goods. In this manner, the company can also update the new arrivals in the particular section. These factors help the company in boosting the sales and help in suggesting the customer to facilitate the easy purchase of goods. In the era of e-commerce stores the company has a virtual market place for the products which helps in making easy choices for the customer. As the company has a virtual market place, it can update the availability of the products in an easy manner. On the other hand, the customers can choose from a variety of products and suppliers which the company has displayed. These reasons form the base of capturing the market share for the product. On the other hand, it is suggested that the company studies the strategies of the competitors as well.

Promotion

In today's era, the customers wish to have the maximum level of convenience in every service. It has been seen that the company has the presence on social media platforms as well. These techniques help it to maintain the required relations with the customers by way of updating them with products and offers. In the process of informing the current customers the company makes sure that the process also involves word of mouth marketing. In the evolution of digital marketing, every company has a virtual presence. The presence on the virtual platform helps in promoting the products in an easy manner. As most of the customers browse the internet for various needs, the company can analyse the statistics and display the adverts on the websites the customer views the most. This analysis helps in analysing the traffic of customer and displays products accordingly. In the context of Furniture Practice, the element of process has been seen as a part which involves series of actions to sell the product. The process involves evaluating the sales funnel, the methods of payment, the logistics for delivering the product and managing the relationship with the customer. Once the above process has been completed, it is essential for the customer to know that the brand has the required level of trust. The factor of trust has been seen as of a paramount importance as it helps in maintaining the required level of transparency. On the other hand, it gives an assurance to the customer that the services of the company are trustworthy as the company is present physically.





Assess their relationship marketing strategy with an emphasis on their current tactics.

Relationship marketing is a means to attract the customer and maintaining the required relationship. In the context of long term marketing success, it is essential that the company maintains the existing customers and acquires new customers.

As the company focuses on the fact that the customers should be provided with proper products and services, the process of relationship marketing is as follows:

Consultancy

The company has a record of providing the right solutions for the clients and has an experience of working with various sectors. In a view to provide the customer with a value for money, the company has dedicated experts according to the requirements. The process is initiated by means of studying the need and budget of the customers. In addition to this, the company also studies the environment and the business strategies and advise the furniture on the required parameters. The company handles the stages such as initiating the projects to the final completion, designs the brief of the projects, defining the budgets and so forth. In some cases, they have been also seen as engaging with the stakeholders of the company and co-ordinating with the furniture audits. They also suggest the customers about the requirements of the Information Technology infrastructure and provide trials for the same. In addition to this, they provide a tour of the virtual showroom and suggest alternatives which can make the project better (FurniturePractice, 2021). Keeping in mind the fabrics for the furniture's, they suggest the best alternatives to make the fabric look elegant.

Procurement

As the company has been tied up with various suppliers, they can help the customer in every way possible. They provide the best choice for the customer budget and ensure that the customer has the required flexibility in procuring the furniture. These needs are fulfilled through the required connection of the suppliers which the company has maintained through the years. The company makes the use of the market reach and makes sure that the client is provided with new heights for the brand and it progresses according to expectations (Uvet, 2020). With a view to procure the best solutions for the clients, the company makes sure that it has maintained the required relationship with the suppliers. These relationships form a base for providing the client furniture's with the latest technology and an updated collection. In addition to this, the company makes sure that the furniture matches to budget of the client, the era and the style of the market. These factors are taken care of from the supplier's end and the designs are customised according to the client's needs.

Client Services

Furniture Practice has a dedicated team of Client Services for handling the future needs of the customers. These experts have been equipped with the same level of knowledge as they have handled the same projects in the past. The company handles requirements such as remodelling, assessments for the staff for the required knowledge of the surroundings, repairs for the fabrics and so forth. These experts also have the services for recycling the furniture or storage facility. Once the team has been contacted they will handle the requirements for all the furniture needs saving the client in time and other resources. However, as of now the company has not designed ant programmes for loyal customers but they have kept in mind to inform customers about new arrivals in the preferred category.





Provide recommendations on how your chosen organisation can improve its marketing strategy.

In the context of suggesting the improvements in marketing strategy, the following points can be considered:

Keeping in mind the services of the company, there has been seen that the new business cannot afford the services as they may be expensive. As the company has been specialising in providing the services to offices and limited household services other clients may hesitate to avail the services. These factors arise due to the fact that the company has outlets only at selective places. It thus makes the organisation vulnerable to competition and lose business at times. In these situations, it has been suggested that the company has multiple outlets for the service of the clients. These factors will help in increasing the trust in the organisation and boost it sales. From the view of the organisation, it can be said that it will be able to tap the developing markets and identify the customer needs on time. These factors will help in forming the base for customer interaction and help the company in expanding the business and diversify the line of products if requires. The introduction of the new line of products will help in tapping new markets and capture a large market (Jiang et al., 2020). On the other hand, the company must plan on introducing offers on the products at regular intervals. These offers may in the form of sales or referral programmes.

As the company has partnered with more than 500 suppliers, it becomes easy for the organisation to cater to the client's needs. However, it has been suggested that the company should also tap the local suppliers as well. In most of the cases, it has been seen that, the local manufacturers have a better view of the market. These factors may provide a competitive edge to the company and help in sustaining in the market for a long time. On the other hand, it can also lead the organisation in matching the customer budget and increase the client base.

In the context of project management services, the company must keep in mind that the local services in the given area can help in transporting small size materials to the remote location. It has been seen that at times the local talent can also help the company in gaining an insight to the geographical structure of the location. These suggestions can be of a help to the organisation and the experts can suggest the client accordingly. On the other hand, the client can also save financial resources as the survey for the prospective office space has been done beforehand. These factors form a base for increasing the profits and the goodwill of the organisation which help the prospects to carry the business in the expected manner. On the other hand, in the context of maintaining the required relations with the suppliers gives way for the organisation in procuring the required materials for the projects. In these cases, it has been seen that the factor of co-ordination has a paramount importance as it helps in the smooth flow of the operations.

As the company has a large client base, it is suggested that the company takes into account the requirements of small business as well. These markets can be tapped by the way of referrals from its present clients. In addition to this, Furniture Practice needs to study the statistics of the business and plan the operations accordingly. The tapping of this business will help the organisation to design the products as per the said requirements. In many cases it has been seen that the small business also plans on expansion as per the needs of the customers. These needs have to be tapped by means of social media which can help the company to reach the required audience. As per the said operations of the company the requirements of the said businesses have to be studied and the solutions need to be designed. These solutions need to be accommodated in the budget of the organisation and the other steps have to be planned accordingly.





Conclusion

In the view of the above mentioned points, it can be said that Furniture Practice has a systematic marketing plan which helps it to cater a large client base. On the other hand, as the company has a large base of suppliers it can meet the needs of the client easily. In addition to this, the company can also offer tailor made solutions as per the budget of the client which makes it the first preference in the said industry. However, it has been suggested that the company also taps local suppliers and the business to sustain in the market. These factors will help the company in paving a road for knowing the market in depth and help in increasing the profits as well.



References

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