Social Media Impact on Furniture Industry

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This assignment examines the role of social media in the furniture industry. It explores how social media platforms impact customer satisfaction and investigates the effectiveness of social media marketing strategies for business growth. The analysis includes surveying consumer perceptions of social media tools, evaluating the influence of factors like accessibility and workforce availability, and assessing the potential of social media for expanding businesses within the furniture sector.
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Running Head: Global Business 1
Marketing and Sales plan for Blue Grog Design
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Global Business 2
Contents
List of figures...................................................................................................................................3
1. Introduction..............................................................................................................................4
1.1 Company brief and background.............................................................................................4
1.2 Research question..................................................................................................................5
1.3 Statement of aim....................................................................................................................6
1.4 Research approach and methodology....................................................................................6
2. Literature review: E-commerce and E-business.......................................................................7
2.1 Developing E-Commerce Services........................................................................................7
3. Market value.............................................................................................................................9
4. Market potential.....................................................................................................................11
4.1 Customer base......................................................................................................................11
4.2 Competitors..........................................................................................................................12
4.3 Current environment conditions...........................................................................................13
5. Theoretical framework...........................................................................................................14
5.2 Strategy................................................................................................................................16
5.3 Tactics..................................................................................................................................17
5.4 Actions.................................................................................................................................18
5.6 Controls................................................................................................................................19
6. Current market conditions......................................................................................................20
6.1 Furniture industry composition............................................................................................20
6.2 Trends...................................................................................................................................21
7. Market Opportunities.............................................................................................................22
8. Situational Brief.....................................................................................................................23
8.1 SWOT analysis....................................................................................................................23
8.3 Porter Five forces.................................................................................................................25
9. USP’s......................................................................................................................................27
10. Marketing and advertising channels...................................................................................28
11. Online and offline channels................................................................................................29
11.1 Offline channels.................................................................................................................30
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11.2 Online channels..................................................................................................................31
12. Personal reflection..............................................................................................................33
References......................................................................................................................................34
Appendix 1.....................................................................................................................................37
Appendix 2.....................................................................................................................................37
Appendix 3.....................................................................................................................................38
List of figures
Figure 1: SOSTAC Model.............................................................................................................14
Figure 2: Research Objectives.......................................................................................................16
Figure 3: Marketing Strategy.........................................................................................................17
Figure 4: Marketing Mix...............................................................................................................18
Figure 5: Market Analysis.............................................................................................................37
Figure 6: Growing Economy.........................................................................................................38
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1. Introduction
This study is basically focused on the Blue Frog Design which is a product design and
development consultancy for new projects. The key aim of this project is to enhance the sales of
the products by improving the operational efficiencies and meeting the demands of the clients by
the marketing efforts. Business and sales plan is now becoming an important part for the success
of any business. There are dynamic market conditions and demands of the customers are
changing day by day. For the better business operations, it is crucial for the companies to focus
shorter delivery time, quality products and affordable prices. Business must be capable enough to
deal with the market trends and changing habits of the clients. Before preparing specific business
model, it is crucial to understand the current market situations in which the company is operating
(Peck et al, 2013). The business plan sets effective business goals and objectives which play an
important role in the growth of the company. Business model include tactics and strategies which
can be used to identify, develop and maintain the strong relationships with the potential
customers and enhance the value for the customer as well as marketers. This report is basically
the sales plan for the company Blue Frog Design to enhance the sales of the products by the
various sales channels. The report analyzes the market trends and situations along with various
opportunities in the market.
1.1 Company brief and background
This study is basically conducted on the company Blue Frog Design which is a product
design and development consultancy to the design services of large and small companies at the
local and global level. The company is operating for last 25 years in this industry. Blue Frog
Design is the product innovation consultancy company operating in UK. Employees of the
company are focused on providing the values and innovations to new products. The company is
always focused on people including manufacturers, clients, buyers and potential customers who
are willing to take professional consultancy services for the projects. Company Blue Frog Design
started its operations in 1990 as the multi-disciplinary consultancy. The company is basically
providing engineering design, product design and graphic design to the respective industry and
supporting to the product development process in terms of mass production. In 1993, the
company developed NT50 Power Shower Pump for Newteam which was an award winning
product. The company is continuously helping the clients in all over UK to provide breakthrough
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Global Business 5
product designs and providing substantial return on investment. Further in 90s, company has
made important investment in 3D CAD technology and continues to enhance the systems and
facilities for the clients. From 2010, company is highly involved in developing the products
along with the high value of manufacturing for the industrial and transport market. Blue Frog
Design is serving the customers across industrial, transport and medical, innovation challenges
and meeting new technologies to deliver successful products for the 21st century.
Vision
The vision statement of Blue Frog Design is to provide innovative product design and
development for the customers. With the ideas and expertise, company is seeking to provide
innovative products.
Mission
Being professional design company, mission objective of Blue Frog Design is to be the
ideal partner of other companies in their product development process. Company has aim to
provide each and every product idea including the evolution of existing products and the
development of totally new concept.
1.2 Research question
In this research, the study is focusing on the concepts of e-marketing which are useful for
the companies Like Blue Frog Design top stay competitive in the market. The purpose of this
research is to find out best ways for the company to make its new product popular in the market.
Along with this, research also focuses on the strategies which must be adopted by the company
to stay competitive in the market. This survey will be done to identify the answers of some
questions i.e.
How can company use e-marketing strategies in the business to stay competitive in the
market?
What types of customers can be targeted for shelves by e-commerce and digital media
platforms?
How much customers are using digital media and social media networks in the operating
market?
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1.3 Statement of aim
Till now, the company Blue Frog Design is working as the consultant for other
companies with the clear strategies, plans and goals. Now, the company is focused on designing
a range of shelves made out from steel and aluminum for the customers. Company is seeking to
target consumer home market by B2C e-commerce sales channels. But, the company does not
have proper skills which are required to do market research and investigate the existing
opportunities in the market. Purpose of this business and sales plan is to study the market
concepts and tools which will be effective to attract the potential customers in the market. along
with this, the aim of the study is to perform systematic analysis of the activities and
achievements of the company. Moreover, the study will be helpful in understanding following
points:
To study the better features by doing business online,
To better understand the market situations, trends and determine the target audience,
Understanding how to attract the customers for the products or services,
Understanding, improving and formulating own unique selling proposition,
Finding effective and low cost ways of promotions online and offline,
Understanding types of customers and working with them,
Learning various ways to enhance profit,
Learning about competitors, their strengths and weaknesses,
Achieving an effective position in the market, and
Setting future goals and objectives and providing effective directions for the future
marketing activities (Fifield, 2012)
1.4 Research approach and methodology
For this research, both qualitative as well as quantitative methods will be used.
Qualitative research can be described as the common research including experimental methods
and statements given by various authors. Along with this, the research will focus on various
studies done by different authors on the use of digital media in the business activities. Further, in
the quantitative research, study will be done based on sample size. The study will be done by the
sample collection and questionnaire will be distributed in those sample people. There will be
some questions related to the subject of the research. This questionnaire will be helpful to find
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out the way by which company can expand its business by the digital media platforms. The
questionnaire will have open ended questions. The questionnaire will be distributed to some set
of the customers to get views and ideas towards the use of e-commerce in the business. by this
method, company will be able to understand the needs of the customers as it is very convenient
method (Appendix).
2. Literature review: E-commerce and E-business
For understanding e-business and the business plan of a company, it is important to have
closure look at the background of the e-commerce and developing the process of e-commerce.
There are some definitions of e-commerce which must be considered in the study. E-Commerce
can be described as doing business electronically in the operating market. E-commerce includes
any form of business or exchange of information by the communication technology. Further, E-
Commerce includes all the aspects of information technology are the business. It is not only
focus on buying or selling the products, but also servicing the customers and cooperating with
the business partners. E-commerce also includes integration with overall business process and
communication with the company.
2.1 Developing E-Commerce Services
There are four different stages to develop e-commerce in the business. To start the
practices of e-commerce in the business, there are various steps required for proper functional
business in the field of e-commerce. For the online marketing, there are some steps which are
needed for the company. In simple words, company Blue Frog Design must be able to handle
these steps to be successful in the competitive environment of market (Armstrong &
Cunningham, 2012).
Stage Characteristics Website Functionality
1. Contact Promoting brand image,
Providing corporate
information,
Providing contact information
Content
2. Interact Service of information
exchange,
Communication
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Targeting the market
3. execute Product order and fulfillment,
Online transaction,
Communicating with trading
partners
Exchange
4. Relate Two-way communication with
customers,
Internet capability into
business,
Service interface included
with delivery and other
business activities
Community
The first stage of e-commerce development is the basic level and it is focused on making
the company appear on the internet and online media platforms along with the physical
distribution. It also provides some information to the customers related to the company and the
product and provides an opportunity to the company to promote itself on the online platform.
Contact information such as opening hours can be displayed on the website.
Further, second stage of the e-commerce is more developed. It provides opportunity to
the customers to interact with the company by the website and other online media platforms. The
target marketing can be done by the news section in the website. It also includes updates and
organizations the communication strategies by the company.
Next, third stage is different from first two stages as this stage focuses on the movements
of the money. This stage offers the customers an opportunity to order the desired product. The
transactional opportunities are very effective for making the company appear on the online
platforms.
The fourth stage provides a complete integration of internet capability in the business. It
establishes two-way relationships between company and customers so both the parties share
some relevant information with each other. This can be related to the product details, price
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Global Business 9
details, brand values, messages and business process details. Customers can share the details
regarding order details, customer details, billing and shipping address and confirmation of order
placement. This is the stage where Bluefrog Design can make its presence on the online media
channels (Pavlou & Stewart, 2015).
3. Market value
It is well known that market is highly competitive. Brands are now facing continuous
pressure to maintain its effective image among the customers. It is important for the companies
to know where, when and how to provide compelling experience to the customers so that values
can be added for the customers. Identifying market value for the innovation opportunities means
getting right balance between the market influencers and competitive trends based on the needs
of the customers. To become successful, company needs to understand how related the products
and services with the demands of the customers. Company Blue Frog Design develops new and
innovative experiences to its clients by anticipating with their future needs.
Blue Frog Design has its presence in all over UK and members of the company are
focused on establishing strong client relationship and larger stakeholder commitments by the
sustained focus and investment in the quality. The commitment is related to providing effective
product design solutions for other companies. Along with this, company is profitably engaged
with its stakeholders in all over the world to enhance the market value and quality, enhancing
corporate governance and increasing the confidence of the clients in the innovation and
development process of product. Blue Frog Design is the famous platform which is providing
customized approach and solution to the clients for the new product development along with
technical and regulatory matters. Apart from this, company is focused on the quality and risk
framework to support the employees and to serve the public interest and deliver the services that
meet high quality standards.
Market value of Blue Frog Design can be analyzed by understanding the ability of the
company to fulfill the requirements of clients, sustain own growth and execute the strategies to
deal with the competitive environment to meet the present and future needs of the clients in all
over the world. The Blue Frog Design’s network is taking advantage of existing market
opportunities by the strategic choices.
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Market leadership-
Blue Frog Design is focused on creating or developing an effective leadership position in
every market where it is operating. Along with this, company is also focused on rapidly
responding to the changing market realities and deal with the competition in the market (Gilligan
& Hird, 2012).
Market investment-
Blue Frog Design is focused on the market investment for growing and expanding the
business in the high-growth strategic markets.
Operating globally-
Apart from UK market, company is also seeking for the expansion for its business in the
global market. Along with the intrinsic strengths of the structure and employees, it is focusing to
operate globally along with consistent and high quality services.
As one-
Company Blue Frog Design has strengthened the professional services by working in all
over geographic, business and functional borders.
Each and every year, the average customers in UK spend £800 on the new and innovative
products. The consultant product development service companies are customers oriented. From
the study, it is observed that there no such companies with the dominant market share in the
industry. The total revenue is £52 billion and the annual growth of the market in 2013 to 2018 is
4.3%. For the company Blue Frog Design, it is good sign that the revenue in this market is to be
expected to grow with the compound annual rate of 4.3% over the five years by 2017-18 to reach
£52.1 billion. It means, the profit of the company will increase in upcoming years. Various types
of product consultancy services such as electricity, medical, and telecommunication have
increased demands over the past few years. In the consultation industry, the level of investment
is required by using wages and depreciation cost to compare capital and human equipment
factors of the business.
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4. Market potential
Market potential can be described as the analyzing the entire size of the market for a
particular product. It basically shows the upper limits of the market for the specific products.
Analyzing the market potential for the product is the part of the successful marketing tactics and
strategies. In the market potential analysis, company examines at least three factors which will
determine whether the market potential for the product is worth the investment. In case of
company Blue Frog Design, report analyzes the potential customer base, competition and the
current environment conditions that may affect the market potential (Baker, 2003).
4.1 Customer base
The target customers for company Blue Frog Design will be high-end customers and
early technology adopters who are willing to spend enough amount of money for the shelves.
The company has already large database of the customers who have shown a keen interest in the
products and services of Blue Frog Design. Initially, this will be an ‘early adopter market’ and
the company believes that it will expand to wider market customers who will bring forward their
shelves replacement to trade up the unique advantages of Blue Frog Design. For the product
Shelves, the target customers will be as follows:
Corporate executives-
The market research indicates that there are around 250,000 potential customers who are
managers in various companies. The target customers for Blue Frog Design product will be at
high executive level in most cases as the buying prices is relatively unreasonable for this product.
Small business owners-
The research done on the customers indicates that there is the strong market of owners of
various businesses. There are three million businesses in all over the country and most of them
are focused on the ownership that makes them potential customers for the Blue Frog Design’s
product.
Home offices-
The business of home office has flourished during 1990’s in the country and there are
home offices for people employed outside the home. This is the big market of country including
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Global Business 12
3 million home offices and this market is growing faster as compared to other market. It is not
important that home offices imply a home business. It is a homeowner who has designated a
room their home as an office (Appendix 1).
4.2 Competitors
Company Blue Frog Design is currently operating as the product design consultancy in
UK market. In this way, there are some direct and indirect competitors for the company. Those
competitors are as follows:
Consultants-
Unfortunately, Blue Frog Design has to face competition from its target customer group
i.e. consultants. Consultants have the options to give up the services and products provided by
Blue Frog Design and target themselves to the potential clients. Consultants are located in all
over UK and due to this they are limited in serving those businesses in their nearby area or incur
the expenses of traveling to the customers. Along with this, independent consultants are
providing personalized services and starting to build the relationship with the customers from the
phone calls. In terms of building shelves, there are various consultants who will try to provide
their design solutions to the potential clients. They have options to set their fees based on the
project along with the desired compensation. As compared to Blue Frog Design, consultants
sometimes provide some basic service to the business like professional consulting and product
innovation services. However, company Blue Frog Design provides effective consulting services
to make the products effective and innovative. Blue Frog Design provides the services to the
customers including guarantees quality, superior consulting services to the businesses and
provides key source for businesses to find professional services (Bickhoff, Hollensen &
Opresnik, 2014).
Small business development centers-
The small business development centers are operating in all over the country and
providing free consulting services to the start-up businesses. Clearly, small business
development centers are experiencing competitive advantage in terms of price factors as they are
servicing for free of cost. The SBDC can be referred as the selection of consultants for providing
additional consulting services. Although, Blue Frog Design is providing the services of
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Global Business 13
consultants, personalized, on-going customer services and specialization of consulting services
but development centers in the country are also giving tough competition to the country.
Temporary agencies-
The threats of temporary agencies are directly competing with the company Blue Frog
Design and the competition is growing strong in terms of consulting services. In case of
consulting services, these agencies are able to provide important source of information,
personalized services and wide range of selection of consultants (Wedel & Kamakura, 2000).
There some strong competitors in the market for the company Blue Frog Design. In UK
market, the strong competitors are Strackk, TEEbooks, Bolia and Vitsœ that are gaining high
market share in the furniture industry. These companies are also operating in the industry for last
many years. All these companies are using online media platforms so that the customers can buy
the furniture online and eating the market share of traditional retailers. These companies always
focus on quality and services as the key strategic priorities. The quality products are perceived to
be important for them in terms of competition. Along with this, in terms or prices Vitsœ provides
unique designs and quality shelves as per the customers’ requirements at the affordable rates. By
the strong presence of social media, these companies are giving tough competition to Blue Frog
Design in the furniture industry.
4.3 Current environment conditions
Consulting services are customer driven in the industry and customers’ need are changing
g continuously. So, the consulting companies need to adapt quickly in terms of structure, service
and operations. In past years, some significant transition can be seen in terms legislation, and
technology and the companies have had to respond accordingly to maintain competitive
advantage and ensure the long-term growth in the market (Lovelock, 2011).
In the UK market, things are looking good for the consultancy companies like Blue Frog
Design. According to the figures published by Source Global Research, the provider of market
intelligence, the consulting industry in UK is growing four times faster than the economy i.e. up
from 8.2% from £6.02 billion to £6.79 billion. Along with this, the report also reveals that there
are big four outperformed i.e. Deloitte, EY, KPMG and PwC in the market.
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Further, there are some challenges which cannot be ignored in the growing division of
market i.e. consulting part. According to Edward Haigh, director of Source Global Research, the
consulting companies have to think about addressing the market as it is important while they are
going to capture the large market share of digital transformation market. The transformation in
digital technologies creates some business challenges for the companies and to deal with these
challenges, consulting companies must create effective digital strategy and operating model to
fulfill the requirements of the customers. There is the need for cross-channel connectivity and
continuous engagement with the stakeholders. There is one more challenge which has to face by
consulting industry is that the companies are involved with multi-sourcing as they are working
with other firms. Sometimes, it is good for the consultancy companies as they form partnership
with people outside the industry i.e. digital agencies, technology and academics companies
(Ghuman, 2010).
5. Theoretical framework
The business enlargement plan model is very important concept for the companies and
marketers when starting any new activity in the market. The model provides logical and
objective ways to understand the current position of the company along with the target market.
This report basically chooses the SOSTAC plan model for the empirical study of the company.
Figure 1: SOSTAC Model
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Global Business 15
(Source: Jung, 2014)
SOSTAC model is a generic model and framework for the e-commerce marketing
planning. This framework can be easily adapted and provides a critical review of the market to
the company. In this study, the SOSTAC is selected as it is very simple, logical and perfectly
includes the important factors of e-commerce.
In SOSTAC, S stands for situational analysis, O stands for objectives, T stands for
Tactics, A stands for actions and C stands for controls. The researchers divided the SOSTAC
model into two parts i.e. SO as analytical process and STAC as tactical planning. In this thesis,
various analysis methods are selected for the situational analysis and setting objectives for the
company Blue Frog Design. The SOSTAC model is differentiated into various parts so that the
clear view for the readers can be presented to understand the process of marketing segments. For
the proper study, the marketers should understand the current situation of the market and future
objectives while using marketing strategies by the company so that proper strategy and action
plan can be implemented effectively (Jung, 2014).
The effective business expansion and sales plans are based on clearly defined objectives
which are effective in setting strategies and tactics and helpful in communicating the strategic
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Global Business 16
aim to the employees and stakeholders. The objectives should be formed in terms of specific,
measurable, attainable, realistic and timely analysis which is basically known as SMART
objectives. For the company Blue Frog Design, the current objectives are as follows:
Create brand awareness in UK online communities,
Attract large customer base for the web-store of the company,
Research local distribution channels
Figure 2: Research Objectives
This part of the theoretical framework focuses on the enlargement of the business in UK
market. The SOSTAC is applied to the analysis of the current situation of Blue Frog Design. The
objective is to provide logical and actual business enlargement plan for the company.
5.2 Strategy
The strategy factor in SOSTAC model focuses on achieving the e-marketing objectives
effectively. The definition of strategy must be integrated in the market enlargement planning
process of the company. For the company Blue Frog Design, social strategy is selected in the
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report. Social strategy is selected because company has seen the importance of social strategy
and has experienced the advantage of using social media as the promotional tool in UK market.
Further, e-commerce needs creativity, time and specialist. Along with this, it is very easy to entry
as everyone can participate effectively and successfully and committing to it. Although
technology barriers are involved with the social media strategy but company should not only
present on the social media but also be an active participant on it. There is detailed social
strategy for Blue Frog Design in UK (Reed, 2014).
Figure 3: Marketing Strategy
In order to create social strategy for Blue Frog Design, three-step strategy development
method will be applied. The strategy development method includes positioning which will
impact the perception of the customer for the product within target market, differential advantage
including product offerings which are not offered by the competitors and defining online content
which is the result of positioning and differential advantage. This factor focuses on the offerings
of the company in terms of services, products and buying experiences to the customers that the
competitors are not able to provide (Baroto, Abdullah & Wan, 2012).
5.3 Tactics
Tactics for the company Blue Frog Design includes marketing mix used by the company
to provide the products to the customers. Marketing mix includes product, price, place and
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promotion and it is used as the foundation of marketing tactics. The marketing mix will be
applied in the company while developing marketing strategies as it provides clear view of the
important elements that impact on the demands of the customers for the products. Marketing
mix generally covers the current business operations of the company and it will be applied on the
current situation for the Blue Frog Design (Pavlou & Stewart, 2015).
E-commerce is now providing new opportunities to the companies to vary the marketing
mix. The 4Ps in marketing mix are the important elements of e-commerce marketing and they
can be used by the company to reach the business objectives. For instance, in order to enhance
the sale, company can keep the prices low or can change the method of promotion or can adopt
the combination of these factors (Sigala, 2014).
Figure 4: Marketing Mix
5.4 Actions
In the part, a detailed action plan will be developed to help the company Blue Frog
Design for entering the UK online marketplace. The action plan will include selection of the
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media platforms, defining the structure and responsibility of Blue Frog Design, content
development and utilizing internal resources and skills.
Platform selection-
Among all types of social media, company needs to select the websites and platforms
which are best suited to the company to promote the product. In case of Blue Frog Design,
company brings creative and innovative product designs along with the attractive features. In
such manner, company will focus on the use of internet by the customers.
Social media tools-
In terms of social media tools, company will basically focus on the own website. After
that, company can select Twitter as this tool quickly became the biggest micro blogging website
in all over the world. There are 96.7% of customers having Twitter account and 100% of them
check the account daily.
Content development-
Social media is the best part of overall marketing strategy which can use various
marketing tools. In this, online PR and marketing are two most effective tools that incorporate
very well with the social media. Although it is true that social media is the conversation instead
of one-way broadcast but it is possible for the company to announce upcoming events, news, and
important activities within the framework. The objective of good social media content is to move
toward social media with the promotional push (Boone & Kurtz, 2013).
5.6 Controls
The process o0f control in the e-commerce plan can be done by the traditional techniques
such as research of market to understand the opinions and views of the customers. in the e-
commerce process, company use novel techniques along with the use of technology to achieve
the business objectives.
In case of Blue Frog Design, the objectives of the company are creating brand awareness
and attracting the customers on website, and increasing the demands of the customers and reach
local distribution channel in UK. The result of enhancing brand awareness can be analyzed by
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the online marketing effectiveness which will be monitored. Reaching to the local distributors
can be seen by the business operations contribution and can be evaluated by the channel
profitability such as revenue, return on investment and cost. Another important part in the control
element is to track the online media contents along with the user interactions. This is highly
important for the reputation of the company at the online platform. Since online tools allow
every person to participate in the online debates so company cannot control all the information
related to the products (Mai, 2014).
6. Current market conditions
Company Blue Frog Design provides innovative product design solution to the clients
who care about designs, quality of product along with the integration of the latest technology at
the affordable prices. The quality of manufacturing, materials and ergonomics are founded in the
product of the company. The composition and trend of furniture industry in UK market is
described below:
6.1 Furniture industry composition
In the global market, home furniture is the largest segment in the UK furniture market i.e.
65% of the furniture sales. The Shelves provided by Blue Frog Design can be used in various
sectors and customers home and office people. Home furniture in UK is available in the wide
range to cater to different customer’s needs. The rich and upper middle class people are typically
very much focused on the design and quality of the products so; price is rarely a determining
factor for them. The European style furniture can be founded in the homes of urban upper class
people. Along with this, it is also estimated that wealthier people do not change the products like
shelves on daily basis so they need quality products that can be used till many years. The average
life of the piece of the furniture is about 20 years so demand of the products can be relatively low
for these kinds of products. Along with this, furniture segments can be also used by Blue Frog
Design as this segment has rapid growth n recent years with the growth of UK economy and
subsequent demand for the office spaces. The thrust on the office construction and real states is
expected to sustain in the upcoming years along with the continued growth in the furniture
industry. To sum up, it is analyzed that the furniture industry in UK is growing with the strong
fundamentals and based on the demand drivers likely to sustain over the medium terms. Along
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with this, supply side is also enhancing as in UK, there are the availability of main raw materials
which are used as the inputs for the furniture manufacturing (Martínez, 2012).
6.2 Trends
Furniture manufacturing is basically driven by the unique quality design chosen and the
inputs which come from the customers and market feedbacks. Manufacturers focus on various
factors related to the customers like demography, lifestyle, aspiration and perception and their
needs and preferences. Along with this, they also have to focus on the raw material like type,
availability and quantity and internal capability such as availability of labor, expertise, quantity,
production process complexity and delivery time to develop and create various designs. These
factors and trends matter while providing the products related to manufacture so that the products
can provide value to the customers. The furniture market of UK is based two broad catagories
i.e. depending on the end users and furniture for the use of home and commercial furniture for
the use of home and commercial segment. The main factor of success depends upon each and
every category. Manufacturers in this sector try to differentiate on the basis of design variety and
price along with the, strong and reliable brand is important (Kursunluoglu, 2014).
Consumers are also the key factors which affect the furniture industry with their buying
behavior and pattern. The decision making process in buying home furniture is largely affected
by various perception of the customers. Along with this, for the commercial establishments,
architects and interior designers are consulted. Generally, customers in UK are increasingly
focused on buying various styled foreign furniture and frequently employ interior designers to
select the right shelves and furniture. A major fact affecting the growth of the furniture market is
that increased exposure of the customers to global trends and lifestyles (Martínez, 2012). The
income level of the customers is growing rapidly over the past decades and this trend is expected
to continue in the future. This has led to enhance in the number of middle class and affluent
households. It is observed that the numbers of household of consuming and rich segment are
continuously increasing. With the increased propensity to spend on the lifestyle and consumer
products, there is various trends i.e. increased number of double income families, increased ease
of financing for consumers’ durables and increased exposure to global products. all these
products have had a positive impact on the furniture industry of UK and it is expected to drive
demand for furniture in the future.
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Global Business 22
7. Market Opportunities
The vision of the Blue Frog Design is to provide the products having good design and
good functioned products with the low prices to the customers. The aim of the company is to
provide quality products by using new ideas which are the driver of the change in the company
for the internationalization. The company experiences ownership advantages including not only
technology and creative concepts but also leadership, insight and approach to develop the
business in the foreign market. The drivers of the change in the company impacts decision of
expansion the business in terms of location, strategy and entry method of Blue Frog Design.
There are many supporting environments such as political, economic and social conditions in
UK which allow Blue Frog Design to experience advantage in the UK market. There are some
push and pull factors such as fast financial growth, enormous requirement in local market,
scarcity of raw material and labors for furniture manufacturing, laws and regulations attracting
foreign investment. These factors lead Blue Frog Design to enter and take competitive
advantage in the UK market. Along with this, the location advantage also attracts Blue Frog
Design to do business in the UK market. The company has basically asset-based advantage
which is the key drive in the company to expand in the international market (Harapiak, 2013).
In other words, Blue Frog Design has brand name and innovative future design which can be
developed in the international market. Further, in the UK market, Blue Frog Design gets
business lead to produce its products locally. So, Blue Frog Design can provide the products at
the lower prices and can compete with the competitors in the China market. By focusing on the
UK market, Blue Frog Design gains higher sales growth with the advantage by creation of
supply centers and warehouses in UK (Chakravarthy & Coughlan, 2011).
There are various marketing opportunities for the company Blue Frog Design while
providing the product ‘shelves’ to the customers. Blue Frog Design is considered as the
environmental friendly manufacturing company which is a contribution to its brand image. Blue
Frog Design is working on the recycling the strategies which will allow the company to use same
material again and again. From the analysis of the situation of the operating market, it is
observed that there are various opportunities for the company in the market and those are as
follows:
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The company has immense opportunities to raise the demand of the shelves made from
the aluminum and steel among the products,
The interest of the customers is continuously growing towards the quality and cheap
products which correlates with the corporate culture and manufacturing style of Blue
Frog Design. The current economical situation can motivate the customers to pay more
attention to the pricing policies.
It is important to attract the younger generation so that they can become loyal customers
for the company in future. Blue Frog Design can try to attract the customers by the low
price, modern and stylish shelves products.
Along with this, company can also reduce the wastage of resources such as reducing the
use of water and lowering the usage of carbon footprints in the environment. Chang in the
packaging material can also be effective for Blue Frog Design in attracting the customers
who are concerned for the environment. By the environment friendly transport, the aim of
the company is to reduce the negative impact on the environment (Turnbull & Valla,
2013).
It is important for Blue Frog Design to communicate with all the suppliers and
stakeholders. This can be done by developing confident by god communication with the
customers, employees and the media. Sustainability is the key element for Blue Frog
Design.
To achieve the market value, Blue Frog Design can follow the basic marketing strategies
in terms of penetrating and scheming for the competitive industry in order to operate at
the global level,
Blue Frog Design can also focus on the corporate social responsibility while developing
the strategies in the business. The strategy focuses on the charity activities for the welfare
of the children in the society (Smith, 2013).
8. Situational Brief
8.1 SWOT analysis
SWOT analysis can be used for analyzing the internal and external analysis of the
company. This analysis includes strengths, weakness, opportunities and threats. The first part of
the analysis focuses on the internal factors of the company including strengths and weaknesses.
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Global Business 24
Second part of the analysis focuses on the external factors including opportunities and threats
affecting the company. Basically, SWOT analysis is used by the companies to formulate the
business strategy for the future business practices. SWOT analysis for Blue Frog Design is
described below:
Strengths-
The key strengths of the company Blue Frog Design is its brand image. The brand name
of the company is famous and well-known in all over UK. The company is focusing on
providing wide range of shelves made from aluminum and steel for the wide range of customers.
The employees of Blue Frog Design are skilled and experienced and always willing and ready to
help the customers. This is the biggest strength of the company. Along with this, Blue Frog
Design has a competitive pricing strategy for the customers and a stable position in the UK
market. Blue Frog Design already has a sustainable position in the UK market because of the
affordable prices and strong relationship with the suppliers and distributors. Further, logistics is
also a strong factor of the company as the company has effective supply chain management fir
the successful business operations (Lim,Machado and Iglesias, 2015).
Weakness-
In case of weaknesses, there are some weaknesses in Blue Frog Design which need to be
improved before providing new range of the products like shelves. First of all, main and key
issue is the lack of language skills. The company is seeking to expand the business in the global
market but due to lack of proper language skills, company will not be able to interact with the
customers. When the company is planning with the strategy to enter in the new market, the
weakness of language skills needs to be addressed effectively. This can be done by hiring the
employees with knowledge of two and more languages. Along with this, ano0ther way to deal
with issue is to provide trainings and languages courses for the employees. Next, another
weakness is that the brand name of Blue Frog Design is only famous in UK and for other
markets, it still unknown. This is the major weakness for Blue Frog Design. To deal with this
weakness, company needs to develop a good marketing strategy along with the wide promotion.
Another important issue for Blue Frog Design is to find out local business partners and
distributors to distribute the products among the customers. Company has to do proper research
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Global Business 25
about the potential business partners and third party logistics. Blue Frog Design is an
experienced company and in case of regulations, restrictions and customs, company needs to
research on this subject deeply.
Opportunities-
In terms of opportunities, Blue Frog Design has opportunities to expand the business in
various markets. There are various developed countries like USA, Australia and China where
company can export its products. The products manufactured by the company are known for the
superior quality and based on the quality products; company can have various benefits in the
global market. Blue Frog Design can use quality and fashionable design products as one of the
core competitive advantage.
Threats-
The threat for Blue Frog Design can be related to the possible changes in the custom
code, rules and regulations. One more threat for the company is the high level of custom duty on
the products. Further, another threat for Blue Frog Design will be to find experienced employees
with various languages skills. Another threat for Blue Frog Design is to communicate with the
employers and for administrative part of the business. Recruitment of highly skilled employees
will be quite difficult for the company. It is crucial Blue Frog Design to understand the cultural
differences among the customers. This must be taken in implementing the marketing strategy,
satisfying customers, and hiring the personnel. Blue Frog Design needs to be prepared for
competition and get strong competitive advantage in the market (Walker Curren and Kiesler,
2013).
8.3 Porter Five forces
Porter’s five forces analysis is an analytical tool which is helpful in analyzing the
industrial structure in which a company is operating. This model is basically used to analyze the
drawing power of the specific industry where the capabilities of the company can be analyzed in
terms of profit making in the operating industry. Porter’s five forces analysis of the company
Blue Frog Design is as follows:
Competitive rivalry-
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Blue Frog Design is operating in highly competitive industry in which many others low
priced and good quality furniture manufacturers are available. The level of competitive rivalry is
high in this industry. By manufacturing shelves, Blue Frog Design is trying to compete and grow
in the UK market. Furniture industry is generally one of the hardest industries as compared to
other sectors. As the result, premium priced furniture manufacturing industry in UK is now
expected to increase its market share so the competition in the market will be increased
continuously. However, considering that the furniture is now low spending priority based on the
consumer behavior is affected by the recession (Brumfitt, 2001).
Threats of new entrants-
This force in the industry is considered as weak because of the market saturation. In order
to enter in the market, new companies need to invest high amount of capital and skilled labor to
operate in the furniture market. Along with this, there are some other factors that the shelves and
other household items are considered as the low spending priority for the customers. So, the
threat of new entrants is low in this industry.
Bargaining power of buyers-
This force in the industry is relatively strong as there is the intense competition in the
industry so there is the availability of the substitute products for the customers. but, sometimes
the threats of the substitute products are weak as Blue Frog Design has unbeatable experience in
terms of low-cost manufacturing, and good quality products and services. On the other hand,
customers are also in the control by Blue Frog Design’s growth strategy of the quality products
and services in the market (Phillips & Hallman, 2013).
Bargaining power of suppliers-
The bargaining power of suppliers is relatively weak in this industry. The reason is that
Blue Frog Design is continuously competing to establish and maintain the relationship with the
suppliers in its business operations by which it can easily access the resources and capabilities in
terms of potential suppliers. Along with this, Blue Frog Design has values in order to develop
strategic relationship with the suppliers and motivate them to grow excluding their bargaining
power. So, this is the weak industrial force in case of Blue Frog Design which is helpful in
optimizing the resources and maximizing the profits.
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Global Business 27
Threats of substitutes-
As described above, the threats of substitute in this industry is weak. Blue Frog Design is
specialized in the innovative ideas, manufacturing functional, low-cost, and good quality
furniture. Although the retention rate of the customers remains best with Blue Frog Design but
the combination of the characteristics of Blue Frog Design remains un-matched by the
competitors. The brand perception of Blue Frog Design is trendy along with the affordability and
quality because of the unmatched products and services in the market.
9. USP’s
UPS stands for Unique selling proposition which includes the advertisement campaign
conducted by the company for the success and growth in the market. Each and every company
has some unique features by which the company is able to maintain the brand name in the
market. Along with this, it also includes the description of the product which is similar to the
product of competitors. The unique selling proposition of Blue Frog Design is that it has been
operating in the market for past number of years. Along with this, it is also recognized as the
innovative consulting company which can be used to develop more innovative products by the
other companies (Karimi, 2014).
In the unique selling proposition, Blue Frog Design is focused on providing various
advantages and benefits as compared to the competitors. The customers in the market have
various options for the particular shelves products. Various advantages refers to the observation
by the target customers on the product of the company as compared to the products provided by
the competitors. By this unique strategy of providing advantage, Blue Frog Design is able to
establish leadership in the operating market. One of the main factors of unique selling
proposition is that the company is operating in the market and is considered as the best company
for the product consulting. Blue Frog Design is able to establish itself in the minds of the
customers that no other company is able to provide best solution regarding product development.
Responsibilities like corporate social responsibilities have also important role in enhancing
competitive advantage for Blue Frog Design in the market. In case of Blue Frog Design, shelves
are made of aluminum and steel which are durable and useful for the household people and
corporate executives also.
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Global Business 28
10. Marketing and advertising channels
As discussed above, the objective of this study is to develop various marketing channels
for the company Blue Frog Design. So, in order to ensure deeper insight of the marketing
channels phenomena, the qualitative methods will be used in thus study. The information will be
provided by understanding various definitions and methods. Marketing channels are the way of
bringing the products and services among the customers so that they can purchase them easily. It
is basically assumed that the business to business and business to customers marketing is the
same process but actually, there are various differences in the process of selling the products in
business and selling the product to the customers. The key difference between B2B and B2C
markets is the nature and complexity of the products along with the industrial demand, amount of
potential customers, volumes of product per customers and type of relationship between the
suppliers and the customers (Filipovic, 2013).
Marketing channels are basically defined as the set of external channels used by the
company to transfer the ownership of the products to move the products from the production to
consumption. A marketing channel is also called distribution channel including distributors,
wholesalers, retailers and internet also. Basically, marketing channel shows the way the product
after production to purchasing and then consumption by the customers. In current time, it has
become more difficult for the companies to achieve sustainable competitive advantage which
cannot be quickly copied by the competitors (Terpstra, Foley & Sarathy, 2011). Now, pricing
and promotional strategies for the products are also become complicated because of the global
competition advertising and technology development in the industry. The marketing channel
strategy basically provides the high level of potential to the company to achieve competitive
advantage as it is critical copy. It is difficult for the companies to choose right channels to stay
competitive in the market. For the company Blue Frog Design, marketing channels will perform
various functions i.e.
Analyzing the marketing environment i.e. collecting information about potential
competitors, market trends, forces, and potential and current customers,
Negotiate and make agreements on the prices and various conditions which are important
to transfer for the ownership of items,
Developing the customer communication process to enhance the sales,
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Placing orders to manufacturers,
Getting funds to keep the inventories at various levels of the marketing channels,
Managing the risks related to marketing channel work,
Providing the storage for the transportation and inventory of items,
Execute payment processes for customers by the banks and other financial institutions
Supervise actual ownership transfer from one company to another (Ramaseshan, Ishak,
Rabbanee, 2013)
Promotion is the important part of the marketing mix. In the promotional mix of the
company, there can be the combination of marketing, sales advertising, personal selling, public
relations, and direct-marketing tools. The company basically exercises the combination of the
tools to converse the customers to maintain the effective client relationship in the market. In case
of Blue Frog Design, the company is famous for nit focusing on the personal selling of the
products. The company wants to customers that they should be free to make their own choices. If
the customers want any kind of information then they can refer the label attached on the product
of Blue Frog Design (Banerjee and Soberman, 2013). Along with this, they can also go and ask
the staff of the company. Further, for the promotion, cultural consideration is the essential part
for the company. To attract more and more customers, advertising is very efficient way for the
company. In UK, Blue Frog Design does advertising in the local newspaper and on TV for its
future deals and for other actions. Along with this, internet is the main resource of the
promotional activities to attract the customers. The company also does the advertising
occasionally such as New Year. The company gives importance to the culture of UK in the
promotion of the product. The culture relevance in the promotion makes sure those promotional
messages are sent to the target market effectively. Hence, all the promotional activities done by
Blue Frog Design shows that company is suitable for the China market (Muturia & Oeba, 2012).
11. Online and offline channels
Blue Frog Design needs to promote its product by various media channels to attract more
customers. Online and offline media channels are effective as Blue Frog Design is able to attract
new customers and create balance between keeping existing customers. This can be one of the
strengths of Blue Frog Design. Although the company has introduced various offers to the
customers but there are various channels which must be used to promote the product among the
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Global Business 30
customers. For this manner, print media can be effective for Blue Frog Design. Although print
media is simple but it is able to send a strong message among the customers. The advertisements
exceed the expectations of everyone with the shelves and they are able to demonstrate on the rise
for the consumers (Taleghani et al, 2011).
In terms of media channels, Blue Frog Design will sue commercials and billboards to
make the potential customers about its offer. But, Blue Frog Design needs various ways to
promote the products among the customers. In the marketing implications, Blue Frog Design can
use strategy for online ecosystem. Along with this, Blue Frog Design will also focus on the
television and print advertising with the social media marketing. Some online and offline media
channels for Blue Frog Design are as follows:
11.1 Offline channels
Print media-
Due to various newspapers and magazines organization will be able to show the design of
the products along with its features so that more and more customers can be attracted towards the
products. Organization can show the products by pictures and images.
Television-
Although, this is the traditional method but it is considered as the most effective
communication method. This method is expensive but still it will be used to show the
characteristics of the products and attract the customers in the effective manner. This
communication tool will be helpful for the organization to reach the people and make them
aware about the services of the company.
Personal selling-
For the communication strategy, Blue Frog Design will open the stores for the personal
selling. The stores will provide the help to the customers to learn about more products of the
company and to purchase them. In some cases, sales staffs will be helpful for the customers to
find the right products to promote the company by the personalized services.
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Global Business 31
The experience of the customers will be developed by the employees who are trained to
help them. Customer will feel good about buying the product of Blue Frog Design. In stores, the
products will be sold which customer feel as having better decisions. So, the combination of
Blue Frog Design’s distribution channel will enhance the customer experience in terms of
shopping. Blue Frog Design will also use personal selling to enhance relationship with the
customers (Terho, Eggert, Haas & Ulaga, 2015).
11.2 Online channels
Public relations-
Blue Frog Design will use public relations as the marketing communications mix or
strategy. The company will focus on the social issues like use of workshops and green
technology and use them as the public relations to cope. Along with this, Blue Frog Design may
also use some charity events and public relations activities as a sponsor. This is the
communication strategy for the existing and potential customers so that they have a better
perception of the brand (Pagla & Brennan, 2014).
Social media-
Blue Frog Design is the famous company in the UK market and the use of social media is
very important for the success of the company. There are some social media channels which are
useful for Blue Frog Design in order to stay competitive in the market (Basil, 2011).
FaceBook-
FaceBook is the most attractive and powerful networking platforms to achieve high level
of customer bas for the specific products and services. In order to develop effective messages
among the customers, Blue Frog Design will use digital media techniques. it will also be helpful
for the company to attract more customers as compared to the competitors. On FaceBook, Blue
Frog Design can post the messages related to the shelves with the has tag like #safetywithshelves
etc (Yavuz & Toker, 2014).
Online PR-
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Public relations are important for Blue Frog Design to manage the communication with
the potential customers. Public relations will also be an effective tool to develop and maintain the
brand image of the company in the market. In case of company Blue Frog Design, online PR will
be used to maintain the communication functions with the help of internet. In this manner, the
company will use some online platforms in terms of online PR i.e. social networking and blogs
to interact with the public about the new shelves products. So, it would be considered as very
close to the social media marketing
Online partnership-
To promote the social activities and site, the company will collaborate with other
companies to enhance the awareness about the new products. In this manner, online partnership
will be done by the company. Basically, online partnership will include link-building, affiliate
marketing, sponsorship, co-branding and more (Moiseieva, 2013).
Interactive advertisements-
The social media platforms can also be used for the effective advertisements by the
company Blue Frog Design. Banners are media advertisements in the website would be effective
for the interactive marketing. The online tools would be used to attract the target audience so the
awareness can be developed among the people in the market (Luttrell, 2016).
Email marketing-
In the e-mail marketing the company will adopt opt-in list method. By this method, the
company will identify and make the list of email addresses of those customers who are agreed to
subscribe their mailing list. By the e-mail marketing, the marketing managers will be able to
send the every part of the marketing campaign such as brochures, newsletter, and promotions in
the opt-in list. Email marketing would be helpful for the company to make the people aware
about the product range for the customers. Posters and print advertisements can be sending to the
target audiences so that they understand the characteristics of the products (Li, 2013).
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Global Business 33
12. Personal reflection
This report is focused on improving the sales of the products of Blue Frog Design by the
online media. Based on the analysis, it is observed that Blue Frog Design is the product
innovation consultancy company operating in UK. The company is operating for last 25 years in
this industry. Further, The Company is always focused on people including manufacturers,
clients, buyers and potential customers who are willing to take professional consultancy services
for the projects. Now, it is focusing on the production of shelves made from aluminum and steel.
Along with this, the study reveals that the main aim of Blue Frog Design is to attract the
consumers in the UK market based on their taste and preferences. For instance, the range of the
products offered by the company in the UK market must meet the preferences of the customers.
The media channels should be selected according to the customers’ convenience which attracts
them effectively. The policy of the company is to pay much consideration to the UK styles and
add the set of products attributives effectively. Employees in the Blue Frog Design can be
effective for attracting the customers in terms of personal selling of the products. There are front
line employees who are directly connected with the customers. In front stage, Blue Frog Design
has sales people who are helpful for the customers in selecting the furniture products. They
provide relevant information about the products. Back stage staff is not connected with the
customers but they produce the products.
In the conclusion, it can be said that from the above discussion, it has been observed that
the Blue Frog Design is the leading company in the consulting industry which provides the
innovative ideas and solutions for the product development. The company wants to increase the
business in the other countries so it is important to develop the marketing and communication
plan. The communication plan will be helpful to increase the brand image of the company in the
market. The communication plan will include the channel broadcasting, events, hoardings and
online marketing. These marketing tools will help the people to increase the awareness of the
services provided by the Blue Frog Design among the customers. So, this communication
campaign will help the in gaining the set objectives. This report discusses about the market
strategy of Blue Frog Design in the UK market. Form the above discussions; it is observed that
the achievements of Blue Frog Design in UK market are well designed. The company has
customer centered marketing strategy. The market strategy of the company is the perfect
combination of media channels and tactics. Focusing on UK culture, the company Blue Frog
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Global Business 34
Design is able to gain success in the China market. Blue Frog Design in the UK market gives
significant message to many other companies and organizations in the other country that the key
of victorious international marketing is to have proper knowledge of culture in the various
markets.
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Appendix 1
Figure 5: Market Analysis
Appendix 2
Figure 6: Growing Economy
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Appendix 3
Survey Questions:
Q1. Where is your current place of work?
Q2. What is your gender?
Male
Female
Q3. What is your age?
Q4. For how long you use the social media sites?
Q5. How much social media services are helpful for you?
Q6. How would you rate various social media tools based on services?
a) Highly satisfied
b) Satisfied
c) Neutral
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Global Business 39
d) Dissatisfied
e) Highly dissatisfied
Q7.How much you are satisfied with the services various social media tools?
a) Highly satisfied
b) Satisfied
c) Neutral
d) Dissatisfied
e) Highly dissatisfied
Q8. Do you agree that social media platforms are available anywhere?
a) Highly agreed
b) Agreed
c) Neutral
d) Disagreed
e) Highly disagreed
Q9. Do you feel that there are sufficient workers for the service?
a) Highly agreed
b) Agreed
c) Neutral
d) Disagreed
e) Highly disagreed
Q10. Would you recommend social media sites to various businesses?
a) Yes
b) No
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Global Business 40
Q11. What are the suggestions according to you that furniture industry should adopt social
media sites for the business expansions?
Q12. Does the company Blue Frog Design provides service on social media sites?
a) Highly agreed
b) Agreed
c) Neutral
d) Disagreed
e) Highly disagreed
Q13. Do you have any suggestion for improvement while using social media sites?
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