MBA Marketing Management: Blu Dot Company Strategies Case Study

This case study delves into the marketing management strategies employed by Blu Dot, a furniture manufacturing and marketing company. It identifies the challenges Blu Dot faces in selling consumer products, particularly in maintaining target margins with its unique pricing strategies, managing variable and fixed costs, and ensuring consistency in price and product variables. The importance of the product life cycle concept in developing and managing Blu Dot products is highlighted, emphasizing how the company uses efficient technologies and supplier relationships to minimize distribution costs and ensure high-quality materials. The case study also describes Blu Dot's product mix, including different product lines catering to various customer segments and price points, and analyzes the company's promotional approach, particularly its innovative campaign for the opening of its New York store, which integrated place and product strategies to create customer engagement and drive sales.

Running head: MARKETING MANAGEMENT IN BLU DOT COMPANY
Marketing Management In Blu Dot Company
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1MARKETING MANAGEMENT IN BLU DOT COMPANY
Response to Question No. 1.
Blu Dot is a furniture manufacturing and marketing company that sells consumer
products like tables, accessories, desks, beds and other furniture items of high quality at an
affordable price. To sell these products, they keep the market prices lower than the
competitors. Thus, the challenge here is meeting the target margins because unique pricing
strategies require appropriate margins. The other challenges are managing variable cost and
fixed cost. To meet this challenge, Blu Dot company has to choose effective materials, good
supplier bonding strategies, and efficient distribution methods (Karadag, 2015). The final
challenge that the conmpany can face is keeping consistency in the price and product
variables.
Response to Question No. 2.
When a product is made, it goes through from creation to progress, then maturity and
at last decline. This is called a product life cycle. This life cycle concept acts as a forecasting
tool to determine what can be expected from a product in the market at its various stages.
Similarly, Blu Dot company has put an importance to the product life cycle by implementing
efficient technologies in making industrial products. The furniture manufactured by the
company, is designed in such a way that reduces distribution cost since they can be shipeed
easily. Besides, the company make contract with the suppliers so that the company can get
high end resources that is materials to make the innovative products. The company also
ensures that the products they deliver should be shipped at a least cost and they should be put
together very easily at the customer end. Thus, the product life cycle concept plays an
important role for Blu Dot company.

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Response to Question No. 3.
Blu Dot understands that it has to offer good designs to mass of the customers at an
affordable price. To make the products useful, budget-friendly, and desirable, the three
elements on which it has to work on, are quality, features and variety of products. Design
aspect plays the keyrole for some customers while some customers focus on the quality and
durability of the products. Again, some customers look for products at cheapr price. Thus, the
company has to design and manufacture products keeping the various demands of cutomers
in the mind. It has to correlate the marketing mix with products’ appearance keeping price
constraint. To meet the requirements of different cutomers, the company has introduced
different brands. It has introduced brand named “too” for a low-budget customers. It has
created another brand for corporate purpose, called “Real Good Chair” with a price range of
$129. For bedroom decoration, it has several product lines named “Ditto”, “Dodu”, giving a
huge collection on beds and many more.
Response to Question No. 4.
Blu Dot company has opened its largest store in New York on Madison Avenue. It is
the second showroom in New York and 10th showroom of Blu Dot. The 12,000 square feet
flagship stote would help the company to showcase their entire assortment. This is a
significant step for the company to grow its business. A good tactics of promotion integrates
with the place and product strategies. Blu Do has always targeted to offer innovative
designed products at a very low price so that customers can afford whatever they like. To
meet this target, the company has used a unique promotional strategy during the celebration
of the inaguartion of its largest store in New York city. It took 25 new units of chairs from its
brand “Real Good Chair” and left it on the various corner of the city. The chairs were armed
with GPS devices. Thus, if anyone tried to rescue and buy any chair, the marketing agency of

3MARKETING MANAGEMENT IN BLU DOT COMPANY
the company could trace it. This strategy resulted in a huge success and the company source
claimed that all th 25 chairs were sold in this way. At the opening ceremony of the new store,
the company tried to engage customers by providing discounts upto 20 to 50 percent on
accessories, textiles, furniture and other product categories. Besides, at the time of promotion
Blu Dot gave a clear preview on their outcoming products and brand-new collections to the
shoppers. Usually, discounts are given on old products or collections. However, Blu Dot
managed to offer discounts on brand new collcetion also. It is no doubt a great success in
marketing and business as discounts will provide more customer engagements ("Modern
Furniture - Contemporary Furniture Design | Blu Dot", 2018).

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References
Karadag, H. (2015). Financial management challenges in small and medium-sized
enterprises: A strategic management approach. Emerging Markets Journal, 5(1), 26.
Modern Furniture - Contemporary Furniture Design | Blu Dot. (2018). Retrieved from
https://www.bludot.com/