Marketing digital business case

BUSINESS CASE
TEACHER: MONTSE PEÑARROYA
COMPANY: FURNITURE DESIGN S.A.
HISTORY:
* SPANISH FURNITURE MANUFACTURING COMPANY FOUNDED IN 1972.
* THE COMPANY HAS BEEN AWARDED WITH “PREMIO NACIONAL DE DISEÑO” IN 1989 AND THE “EUROPEAN COMMUNITY DESIGN PRIZE” IN 1990.
* THEY HAVE THE EXCLUSIVE RIGHTS OF MANUFACTURING AND DISTRIBUTING FAMOUS SPANISH DESIGNERS AND ARCHITECTS’ FURNITURE(ANTONI GAUDI OR SALVADOR DALI’S DESIGNS).
CURRENT SITUATION:
* AS A RESULT OF THE ECONOMICAL CRISIS AND THE END OF THE REAL STATE BOOM THE COMPANY HAS DECREASED ITS INCOMES BECAUSE MANY OF THE FINAL CUSTOMERS ARE NOT INVESTING THEIR MONEY IN THIS KIND OF GOODS.
* SOME OF THE STORES ARE NOT BUYING LUXURIUOS FURNITURE BECAUSE THEY RATHER TO HAVE THE STUFF AS A DEPOSIT. IT MEANS THAT THECOMPANY HAS TO INCUR IN TRANSPORTATION EXPENSES AND INVENTORY STOCKING COSTS.
* BOTH SITUATIONS HAVE CAUSED LIQUIDITY ISSUES TO THE COMPANY AND LOWER GROW RATES TO THE BUSINESS.
FUTURE PLAN:
* THE COMPANY PLANS TO INTERNATIONALIZE ITS BUSINESS AND SELLING THEIR PRODUCTS ABROAD.
* THEY HAVE IDENTIFIED SOME NEW MARKETS, LIKE JAPAN, THAT ARE NOT SO VULNERABLES TO THE WORLD ECONOMICALCRISIS AND THEY HAVE REALIZED ABOUT THE IMPORTANCE OF DEVELOPING AN EFECTIVE INTERNATIONAL STRATEGY TO GAIN A BIGGER MARKET SHARE THAT ALLOWS THEM TO REACH THEIR SALES’ FORECASTS AND BRINGING PROFIT TO THEIR SHAREHOLDERS.
* THEY KNOW THAT E-BUSINESS IS BECOMING MORE IMPORTANT IF YOU WANT TO REDUCE SOME COSTS OF THE DISTRIBUTION CHANNEL AND KEEPING PROFITABLE MARGINS THAT GUARANTEE THE BUSINESSCONTINUITY.
COMPANY NAME | FURNITURE DESIGN S.A |
TYPE OF BUSINESS | EXCLUSIVE FURNITURE DESIGN & MANUFACTURING |
CURRENT MARKET | * SPANISH HIGH INCOME PEOPLE * MORE THAN 1 HOUSE OWNERS * SPANISH ART COLLECTORS * LOCAL EXPENSIVE FURNITURE STORES * REAL STATE COMPANIES (SHOW ROOMS, EXHIBITION FLATS) |
STRENGTHS | * MORE THAN 30 YEARS EXPERIENCE * INTERNATIONAL FURNITUREDESIGN AWARDED * FAMOUS SPANISH ARCHITECTS AND ARTISTS EXCLUSIVE RIGHTS OF MANUFACTURING AND DISTRIBUTION. |
WEAKNESSES | * LOCAL SALES HAVE DECRESSED BECAUSE THE END OF THE REAL STATE BOOM * NEW COMMERCIAL CONDITIONS WITH RETAILERS * ART BUYERS’ PURCHASING BEHAVIOR HAS CHANGE. |
OPPORTUNITIES | * NEW MARKETS HAVE APPEARED IN INTERNATIONAL COMMERCE. * GROWING DEMAND OF THIS KINDOF GOODS IN ASIAN MARKET. (JAPAN) * EXPERIENCE IN BUSINESS AND WELL RECOGNICED ARTISTS ARE ELEMENTS TAKEN INTO ACCOUNT BY NEW BUYERS. |
THREATS | * THE NECCESITY OF GETTING USED TO DEAL WITH CLIENTS ABROAD AND DEVELOPING NEGOCIATION TECHNICS WITH ASIAN MARKET. * EXPORTATION SKILLS AND LOGISTIC PROCEDURES ARE THE CLUE OF SUCCESS IN INTERNATIONAL BUSINESS. * PRODUCTION CAPACITY MAY BEACCORDING TO THE NEW CUSTOMERS REQUIREMENTS. |
STEP 1 :
WE HAVE CHOSSEN 3 MAIN TARGET MARKETS THAT WE BELIEVE COULD BE RELEVANT TO FURNITURE DESIGN S.A. TO ACHIEVE A JAPANESSE MARKET SHARE WITH ITS PRODUCTS. THOSE NEW SEGMENTS ARE:
No. | SEGMENT | TARGET MARKET CHARACTERISTICS |
1 | LUXURY ART HOTELS IN JAPAN | * MAIN MARKET IS INTERNATIONAL TURISM ALL OVER THE WORLD. * ELEGANT SPACESAND FIRST CLASS LEISURE SERVICES * 5 STARS HOTELS GUEST RECOMMENDED * INTERNATIONAL TURISM AWARD WINNERS |
2 | HIGH INCOME – MARRIED COUPLE WITHOUT DEPENDENT CHILDREN | * ADULTS COUPLE WITH NO CHILDREN RESPONSABILITIES * HIGH INCOME COUPLE RETIRED OR BUSINESS OWNERS * PEOPLE INTERESTED IN HOME DECORATING, FURNISHING AND INTERIOR DESIGN * FRECUENT INTERNATIONAL TRAVELERS |
3 | ARTSCOLLECTORS IN JAPAN | * FURNITURE GALLERIES STORES * PEOPLE SUSCRIBED TO ART COLLECTORS MAGAZINES OR ART SOCIAL NETWORKS * ART COLLECTORS ASSOCIATIONS ABROAD * PEOPLE ASSOCIATED TO JAPANESSE MUSEUMS OR SPANISH ARTISTS FAN CLUBS. * GROUPS OF PEOPLE IN JAPAN INTERESTED IN ART (JAPANESSE TEA PROGRAMS) |
REASONS WHY WE CONSIDER OUR PRODUCT MIGHT BE IDEAL TO EACH OF THOSE SEGMENTS:...