This unit state that organization is making plan to enter into international market, determine factors that influence entry mode of firm into global market along with barriers
- Give brief background of company in relation to marketing management.
- Determine 7ps of marketing mix for product promotion.
- Design PESTLE framework for analyzing micro & macro factors
Eldiar Furniture is one of the largest international furniture manufacturing companies which provides quality and stylish furniture with a reasonable cost so that anyone can afford it. It is a leading online furniture company which was found in the year 1989 iThe main mission of a company is to improve people's everyday lives. The report deals with different marketing processes and STP. It also presents marketing mix that is 7 P's which help to increase the performance of Eldiar Furniture. Company is also affected by internal and external environment and that is why it uses Pestle analysis for macro environment and Ansoff matrix for micro environment to check the performance of a company. The mission of Eldiar Furniture is to create better life of every individual at their home but using their best furniture. The best dealing countries are Qatar, Saudi, Oman and Bahrain (Nuwidrat). It specializes in carpentry work and join anything from the doors and wardrobe. The main work of a company is to furnish hotel rooms, with using latest machinery in wood works under the supervision. It also operates its new office having 25,000sq. m. land and located in Abu Dhabi's international Area.
Eldiar Furniture has built its success from last 10 years by offering furniture at very affordable price as compared to others; it not only focuses on sale but its focus is to provide goods with high quality and with affordable rates. It takes care of customer's budget and follow the concept of self-assembly furniture that helps to achieve cost efficiency and money value by reducing transportation, warehousing and inventory costs. The company is known for its modern design of various types of appliances and furniture as well as its interior design is work with eco-friendly nature. It is become the first choice of its clients because of using new technology with new machinery system. It also receive many awards for provide its best product with good quality (Eldiar furniturs. 2018.).
From last many decades, the demand of Eldiar furniture increases from its clietns and it also adopted many new and latest technologies in order to speed up the working performances. The inventory control system of a company is also effective and noe Elsiar expanded its business with include of solid surface Fabrication using its new machinery.Company is consuming the highest wood consumption which makes it one of the largest users of wood in retail store (Alnaser, F. M. I. And et.al. 2017). Most of the Eldiar Furniture's stores and industry were owned by INGKA previously; it is a company which is controlled by Stitching foundation.
2.1 Marketing process and STP
Marketing process is a process to identify the opportunity in market, selection of target market and development of marketing mix with the best efforts. To develop a new market, company must know segmentation, target and its positions. Eldiar Furniture mainly focus on product and price element of marketing mix, it offers product with such a low and affordable price.
- Segmentation : it means to divide the people into group on the basis of their characteristic. Again it has four type:
Geographic : where the segmentation criteria is based on region, density and Eldiar Furniture target the customer of Europe, America, Australia and Russia.
Demographic : segmentation criteria is divided according to age, gender and lifestyle with occupations of people and Eldiar Furniture target people above the age of 22 and older than this. It targets mainly bachelor stage young person, people who not living at home and newly married couples having no children, students, employees and professionals.
Behavioral : segmentation criteria is divided into degree of loyalty, benefits sought, personality and user status and Eldiar Furniture main target peoples are hard and soft core people and those who switch business with cost effectiveness, easy going and determined.
Psycho graphic : the people who live in lower, working and middle class are target of Eldiar Furniture and lifestyle is also affected by redesigned, struggle, main streamer and explorer .
Consumers are highly educated and younger populations that have strong cultural values and beliefs and on the other hand the younger peoples are liberal in their cultural views and they did not focus on symbols but more concerned with sustainability. Eldiar Furniture's employs market segmentation strategy where products are towards to achieve the target of market. It means that product in Eldiar Furniture are mainly produced to attract particular market segment then mass segment. It also concerns about environment. The electricity products are energy efficient and the consumption is quite lower than general electricity products. Beside this, it also designs products to save water consumption and reduce space during transportation (Ascarza, E. and et.al. 2018). There are foldable sofas which also reduce the space and easy to carry and use. Eldiar Furniture's all product are build to meet the need of people and caring for the environment and for future generation.
- Targeting : based on market segmentation strategy, the target market of Eldiar Furniture is towards the younger generation because they focus more on life style and environment. Eldiar Furniture identify three type of target people which may help in their profit maximization. The targeting market for Eldiar Furniture may be urban areas, according to united nations, 54 per cent of world's population lives in urban areas which may be increases in 2050 up to 66 percent that is why Eldiar Furniture target the people who live in urban areas and the population of this area will help in increases sales, growth and expansion nationally and internationally (Eldiar Furniture Segmentation, Targeting and Positioning: Targeting Cost-Conscious Customers. 2015). According to survey, the people who live in urban areas have salary ranges from $15,000 to $50,000 and they usually want comfort and easy going life with low budget, so targeting this type of people will helpful in income and growth for Eldiar Furniture.
First type of customers are those younger customers who are just starting their new life and they move to a new place or home and these have low budget and concept of save environment, so Eldiar Furniture offer them their product with low and reasonable rate as they are live in modern style with updated technology. Second type of customers, are the students who looking for a product according to their convenience and provide comfort. This type of market needs low budget product because they are not in workforce yet and have simple approach towards usability and practicality. These students want something which may complete their need without any obstacles. And offering some discounts to them will encourage buying more product as Eldiar Furniture sale their product in very low rates as compared to other company (Glaister, A. J. and et.al 2018).
Third target customers are the older customers. This type of people wants something that is light and bulky and easy to carry with them. If they are planning to move into new apartment and selling out their old residence for more comfort and security. Therefore, these type of customers are looking for simple products which provide comfort zone. Beside this they are eco- friendly for the future generation, so targeting these type of people is also helpful to starting new business.
- Positioning : based on target segmentation, ideas are needed to position the product to meet the need and Eldiar Furniture is positioned as world's top home furnishing retail chain. The strongest sale department of Eldiar Furniture is coming from catalog shoppers and warehouse locations. Most Eldiar Furniture locations are in urban areas as discuss in target segmentation and Eldiar Furniture is positioned with direct investment, franchises etc. The positioning of Eldiar Furniture add its strength and also promotes equality and diversity throughout the whole company which give tough competition to its rivals. Eldiar Furniture does not aim to provide the high quality product which made up of solid material which run long life, rather it provides simple quality product which have their own durability. It is also observed that Eldiar Furniture aims to educate consumers that the product may be cheaper than other company but it does not mean they are not durable (He, X., Brouthers, K.D. and Filatotchev, I., 2018).
It uses different style of technology and uses advanced programs to attract people and let them know about Eldiar Furniture's products and these programs help the customers by providing a complete picture of how the final result will be when those different Eldiar Furniture's product combined with advanced technology and this appeal to target market. In U.S. And other European countries Eldiar Furniture position itself as a brand which sales furniture at lower price than other. But in China, this positioning confused buyers because local manufacturers were manufacture products at lower price and they also copy the design at cheaper cost. So in such countries store like Eldiar Furniture are run because of people's thinking. It keeps the price low to sick with their mission and this same strategy is followed in India too. Current macro – economic conditions have created strong environment for local investors and government also permits Eldiar Furniture to open a cafe in its store, with the ease of FDI laws, current condition is much favorable for Eldiar Furniture to enter in Indian market (Jardat, R., 2017).