International Marketing Management Report for Eldiar Furniture

This report provides a comprehensive analysis of Eldiar Furniture's international marketing strategies. It begins with an introduction to the company, its mission, and its target markets, including Qatar, Saudi Arabia, Oman, and Bahrain. The report delves into the marketing process, exploring segmentation, targeting, and positioning (STP) strategies, focusing on geographic, demographic, behavioral, and psychographic segmentation. The report also examines the marketing mix, specifically the 7 P's (Product, Price, Place, Promotion, People, Process, and Physical Evidence), and how Eldiar Furniture utilizes these elements to satisfy customer needs. Furthermore, the report analyzes the company's use of marketing models, tools, and techniques, including PESTLE analysis for macro-environmental factors and the Ansoff Matrix for strategic growth. The report highlights Eldiar Furniture's focus on cost-effectiveness, eco-friendly design, and its positioning as a leading home furnishing retailer, while also addressing challenges and opportunities in different markets, such as the U.S., Europe, and China. The report concludes by summarizing the key findings and strategies discussed throughout the analysis.

INTERNATIONAL
MARKETING MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................4
2.1 Marketing process and STP..............................................................................................5
2.2 Marketing Process and Marketing Mix............................................................................8
2.3 Role of marketing models, tools and techniques using PESTLE analysis and Ansoff
Matrix...................................................................................................................................14
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................20

Illustration Index
Illustration 1: 7 P's of Marketing Mix............................................................................................13
Illustration 2: PESTLE Analysis....................................................................................................14

INTRODUCTION
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).
2.2 Marketing Process and Marketing Mix
Marketing plays an important role in any organization. It is done to keep their customers
satisfy and fulfill their requirements. Marketing process is a method which is used to understand
the market opportunities, its strength and weakness and can help the organization to improve
their goods and services. Marketing strategy is a process which is designed by the organization to
build a suitable plan which can help them to increase their sales production and their customer
rate. It also helps to evaluate the overall success rate of the organization in the market. It helps to

provide a clear vision on Eldiar Furniture's goals and objectives and prepare them to compete
with their competitors existing in the market (Lamas Leite, J. G.and et.al 2017). There are
several steps which are involved in the marketing process, such as,
 Mission,
 Situational Analysis,
 Marketing Planning,
 Marketing Mix, and
 Implementation and Control.
Marketing Mix and 7 P's :
Marketing mix is a tool which is used to analyze their products or brand offering in the
market on the basis of 7 P's of the marketing mix process. These 7 P's are a set of marketing
strategy which can be used by the Eldiar Furniture company to satisfy their customers needs and
requirements in the target market. These 7 P's are highly affected by the internal and external
marketing environmental factors which can impact on the functioning of the organization. The 7
P's of the marketing mix process are, product, place, price, promotion, processes, people and
physical evidence, which is explained below,
1. Product : Product refers to the items which the company is selling in the market, which
includes all the advantages and benefits that a customer can have from buying their
products. Eldiar Furniture company has a wide range of products. They have variety of
styles in their product range from which their customers can choose according to their
likes and preferences. Eldiar Furniture introduce or launch their products in the local
market after a detailed market research of the local cultures and people’s lifestyles
pattern. This helps them to bring new and improved changes in their products. Eldiar
Furniture makes their furniture according to their customers liking so there is huge
variety in their products in different countries (Lidstone, J. and MacLennan, J., 2017).
Eldiar Furniture stores focuses on the quality of their products which can make their
happy by using it. They sell their products at a very affordable price range compared to other
stores in the market which is a great thing for the customers. Eldiar Furniture company works on
the design innovation of the products to bring the great quality and beautiful designs to the
market and to its stores as well. Variety of products which Eldiar Furniture delivers to their
customers includes,

 Furniture (Both outdoor and indoor)
 Beds and Mattresses,
 Tables and Chairs,
 Kitchen cabinets & appliances,
 Textiles & rugs,
 Desks,
 Food items,
 Baby and children’s products,
 Wardrobe Cabinets,
 TV furniture
 Decoration items,
 Tools & hardware,
 Bathroom storage, and many more.
These are the variety of range in their products which makes them to stay in the market in good
position. The designs of their products has always been fresh and innovative and this is the only
reason of why they are different from other companies in the target market. Due to all these
factors, the overall revenue of the Eldiar Furniture stores is also increasing every year which
helps to generate a good profitability rate. The key objective of Eldiar Furniture company is to
bring there a wide range of new products every year and to satisfy their particular aspirations in
the market.
2. Price : It implies the pricing strategies applied by the Eldiar Furniture company to
compete with their competitors in the market. It helps to set the prices of their products
and to understand their customers whether they are able to pay that amount for the
product. Eldiar Furniture is a global retail chain of supermarkets in different countries, so
they have planned a perfect strategy for their pricing process. Eldiar Furniture's
customers are satisfied with their prices of the existing products because of the quality of
work they are offering to them. They generally focus on the cost control and their
operational management process.
Currently, Eldiar Furniture is using a pricing method which is of not reducing the costs to
strip the brand or products not over pricing any product in order to increase their business
strength. The prices of Eldiar Furniture's products are set at very reasonable cost. They adopt

innovative manufacturing techniques. Consumers' choosing ability, assembling and transporting
products by themselves can also help to reduce the price of their products and services. They
have consistent in terms of price for a long time. Even after being at the top position in the target
market, Eldiar Furniture still offers fantastic products at a very low prices, which is the reason
their customers have always been retained to Eldiar Furniture. From this process it helps them to
offer new discounts on their product range to attract the attention of their customers in the market
(Luthans, F. and Doh, J.P., 2018).
3. Place : Place is very important factor in marketing mix. It's where the company's
products and services are being made, sold or distributed. Availability of the products to
their customers is the key tool for any company. This is to ensure that they are getting of
finding their products in the market easily. Distributing right product at right place is the
main aim of the Eldiar Furniture company. Eldiar Furniture is currently available in 48
countries, for example, Europe, Australia, US, Singapore, France, UK, Canada, etc with
375 stores located in different places where they providing their services to the
customers. Eldiar Furniture stores are generally located outsides of the city to provide a
calm environment to shop there. But they have adopted a new method to increase their
customers by establishing two new store in different location of the city. For example,
one store will be located in the busy areas of the city which will be smaller and have only
limited range of products while the other will be located at the city centers which will be
a huge store consisting of all the products available in Eldiar Furniture (Moutinho, L. and
Phillips, P., 2018).
Many of the stores of Eldiar Furniture even have restaurants, food shops and a Swedish
market as well. This makes them more popular among the customers. There some stores have
play areas also for children. The design of all the Eldiar Furniture stores is so innovative and is
sub divided into approximately 20 different stores which include products, such as, different type
of home furniture or accessories to make their customer feel comfortable and in control of their
shopping experience. Model homes inside the Eldiar Furniture stores are a good source of
interior decoration ideas for the customers. Eldiar Furniture stores has recently introduced their
online order services and delivering their products on time to their customers. Their online sales
have been increasing every year. Eldiar Furniture also gives franchisee in the market to increase
their sales production more and more.

4. Promotion : These are the activities or functional events used for the promotion of their
goods and services in the target market. To make people aware of their products available
to them. These are usually termed as marketing tactics applied by the company. Eldiar
Furniture company gives so much of attention on its marketing promotional activities.
The main tool used by the company for their product promotion is the annual catalogs
distributed widely to reach the mass of consumer audience in the market. In this catalog,
they provide all the details including size, product material, quality and prices. Eldiar
Furniture stores have different catalog in different market. Promotions ca be done by
various ways' whichever is suitable in that condition. For example, They can use print
media like newspaper, magazines, templates, including different offers they are
providing, They can use social media as well, which is now days so much popular among
people. There are many option on internet like Facebook, Twitter which can be so much
beneficial for Eldiar Furniture company to promote their services and products in the
market.
Eldiar Furniture company uses promotion tools like TV, print, online ads, billboards etc
in its marketing mix. They use public campaigning also to make them aware of all the newly
launched and existing products in the market. They can also promote their products by giving
them special offers like discounts on selected pieces, giving them free product, etc. In 2016,
there were around 2.1 billion visits to the Eldiar Furniture website and approx 110 million visits
to the catalog and store apps which has gained them so much of popularity and helped them earn
a good revenue and profits from it (Paul, P. and et.al 2018). Sales promotions and trade
promotions are the most effective way for them. Eldiar Furniture stores uses such smart
promotional tools or methods to support their products by making them look presentable,
desirable and unique in their design which makes them different from their competitors in the
target market.
5. People : It refers to the staff members and all the sales person working for the Eldiar
Furniture company. It helps the company to build a strong relationship among each other.
If the company delivers good services to their customers it will help them to create a
positive experience in their mind and increases the brand value in the market. Eldiar
Furniture gives full respect and importance to their employees and customers as well. It
helps them to grow in the market. The work environment in Eldiar Furniture stores is so

much of enthusiasm and fun loving. The staff members of Eldiar Furniture believes in
working together. They are passionate about their work. Eldiar Furniture not only
concentrates on creating a partnership with the customer, but also pays attention to its
employees and business structure as well. There are approx 116000 employees in retail,
18000 in supply 21000 in production in 2015 which has been increasing every year.
Eldiar Furniture company tries to treat every employee on a single scale so that they feel
safe and secure while working there. Maintaining a good relationship with customers as
well as with the employees enhances the chance of increasing the product's sale in the
market which helps them to stay in the market in top position and giving a tough
competition to their competitors (Sahu, S. K. and Pradhan, S. K., 2017). Working in a
healthy environment helps the staff member to increase their working capabilities and can
help them to give their best output in the work station.
6. Process : These refers to the method which are included in the delivery of their products
and services in the market to their customers. A good processing methods helps the
company to deliver the best service and at the same time saves company's money and
time by increasing their work efficiency in the company. Currently Eldiar Furniture has
several business processes which they are applying their system. They have approx 44
production units scattered across 10+ countries worldwide which makes their processing
method the best method to apply. For example, Eldiar Furniture company has their own
sawmills through which they make wood fir the production or manufacturing of the high
quality furniture. They have also made in house production system with highly developed
technologies available to use in their process. Eldiar Furniture works in an environment
friendly manner to save it, which is plus point for them.
Eldiar Furniture helps to create a good shopping experience for their customers to have,
along with the focus on delivering the lowest price of their products possible, and ensures that
they are satisfied with the products and the experience of buying them.
7. Physical Evidence : Physical evidence refers to all the aspects which the customers see
when they interact with the company to buy their products. In physical evidence, factors
like, the overall environment of the store where they are shopping, the interiors of the
shop, the way you deliver the product to them, your promotional techniques, behavior of
the staff members to the customers, etc. all are included in this. The main physical