According to Mintel Oxygen (2012), fitted bedroom furniture contributes in large proportion to the total sales revenue earned by the bedroom furniture industry. Fitted bedroom furniture includes built-in wardrobes, built-in drawers, fitted beds etc, and Mintel Oxygen (2012) has also pointed out that fitted bedroom furniture is designed for large bedrooms. USP of fitted bedroom furniture lies on the ability to provide variety in design, systematic fittings and synchronise with large space in the room. Mintel Oxygen (2012) has reported that non-fitted furniture is generally preferred by bachelors and individuals who do not have large space in the room for using fitted bedroom furniture. Non-fitted furniture includes bedside tables, customized chests of drawers, dressing tables, beds etc. A unique selling proposition of non-fitted bedroom furniture depends on its ability to provide a high degree of customization in terms of assembling bedroom furniture to customers. The next section of the study will discuss the market composition of Germany for the bedroom furniture segment. The German bedroom furniture industry is going through a critical phase in terms of shrinkage in demand due to the slow economic growth rate and dwindling purchasing parity of customers. Lynn (2010) has pointed out that sovereign debt crisis has decreased the retail merchandising growth rate in most of the European countries. Market Line (2012a) has reported that almost half of the German furniture industry is dominated by the bedroom furniture segment. According to Market Line (2012a), the value of the bedroom furniture industry in Germany is more than $25 billion, which is proportionate to more than 50% of the overall industry composition. Industry analysts have forecasted a compound annual growth rate (CAGR) of 3%–4% for the bedroom furniture industry. The bedroom furniture market in the country is fragmented due to presence of both domestic and international players in large proportion. Market Line (2012a) has been able to conclude that only 7% to 13% of buyers in the country prefer to purchase high priced premium luxury bedroom furniture for their home. The majority of buyers prefer to purchase mid-range bedroom furniture for their home. Customer segmentation for the German bedroom furniture industry can be done by using lifestyle criteria of Brassington and Pettitt (2007). According to lifestyle, bedroom furniture customers in Germany can be segmented as ‘singletons’ and ‘best agers’. Young professionals with a high spending capacity can be classified as ‘singletons’; these customers prefer to purchase customized non-fitted furniture, which can fit in their small bedroom. Couples with children and older people complemented with a high spending capacity can be classified as ‘best agers’; these customers prefer to purchase fitted furniture for their large bedrooms. De Mooij (2011) has pointed out that the purchasing behaviour of customer can be directed by personality and cultural orientation, which means that companies planning to expand their business in the bedroom furniture segment of Germany need to design their product in accordance with German culture for generating attraction among customers. The stable political condition of Germany will encourage retailers to invest in the bedroom furniture segment, which will help them to expand their business in the country. Gillespie et al. (2010) have pointed out that antitrust law in European countries such as Germany has
Micro-External Environment Bedroom furniture comprises various sub-products such as non-fitted bedroom furniture and fitted bedroom furniture. As reported by Mintel Oxygen (2012), each of the sub-products in the bedroom furniture segment is targeted for an individual customer group…
The customers that are still targeted may develop diverse demands, tastes, earnings, way of life, and buying behavior. Though marketers can manage the promotional mix, external environment elements are beyond their control. The organization’s management must first understand the external environment in order to plan for the future.
Product Portfolio Features and Benefits Unique Selling Proposition (USP) Fitted bedroom furniture Fitted bedroom furniture includes built-in drawer, wardrobe, fitted bedrooms etc. Customers can place bed as an integrated part of fitted bedroom with the help of this product.
According to the paper the evaluation of the performance of businesses in their industry cannot be successfully completed unless their strategies are identified and carefully checked. In its common form, the term strategy is used for showing a plan appropriate for reaching the desirable ends by using available means. Strategic management has been also described “as the art and science of formulating, implementing and evaluating cross-functional decisions that enable the organization to achieve its objectives”.
New Zealand Breweries became one of New Zealand’s largest corporate companies in 1980s and became an Australasian business when it established itself in Australia in 1990. Its major presence in Australia was pushed by securing management control of Bond
The external environment may also be used to define individuals who affect the business in some way even though they are not a part of it. The contractors who supply a business’s raw materials, for instance, or a country’s
On the sector of cold drinks, the company provides Ice Cream Machines, Slush Granita and juice dispensers. The company also provides vacuum packing machines for the Food Processing and Packaging industry. It also specializes in fully equipped
When formulating strategies, it is essential to consider the external environment within which the organization operates. When conducting strategic analysis, the external environment of an organization is helpful since it assists in comparing the organization with other similar businesses that operate within the same market.
2 pages (500 words)Essay
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