Marketing Report: Furniture Village - UK Market Strategies

This report provides a comprehensive analysis of the marketing strategies employed by Furniture Village, a UK-based furniture retailer. It begins with an introduction to marketing principles and the company's operations, followed by an examination of the external factors impacting its marketing efforts, including political, legal, economic, technological, environmental, and socio-cultural influences. The report then delves into market segmentation strategies used by Furniture Village, such as geographic, demographic, behavioral, and lifestyle segmentation. Furthermore, it explores the application of perceptual mapping to understand customer perceptions and the company's market positioning. The report also analyzes Furniture Village's growth strategies using Ansoff's matrix, including market penetration, market development, product development, and diversification. Finally, it examines the marketing mix (4Ps) – product, price, place, and promotion – and their significance in Furniture Village's marketing approach.

PRINCIPALS OF
MARKETING

INTRODUCTION
Marketing is defined as transfer of goods and services from manufacturer or seller to
their customer. It includes promotion, advertising, selling, production and storing. Marketing
include all activities which is conducting for purpose of sales. It refers to transfer of goods
and services to people for providing full satisfaction them and earning huge amount of money
as well. The present report is based on Furniture Village of UK. It is an furniture retailer
which transfer their products in a worldwide. It has around 45 stores in United Kingdom and
provide of variety of wooden products in international market. The organization may use
internet for marketing of their product and people can purchase their product from online
store. It consist product, price, place and promotion which help company to improve their
performance and build market image as well (Armstrong, Denize and Kotler, 2014).
TASK 1
Marketing stands for deliver of products and services to local people. Internal and
external factors of entities are affected their existence. External factors of Furniture Village
are having a impact of their marketing programme (Lilien, Rangaswamy and De Bruyn,
2013). These factors are as defined below:
Political factors- These factors defined as stability in political environment which
having a impact on marketing of organization through various types rates and taxes.
Government framed some rules and regulations related with tax policies and trading
agreements which affect marketing of Furniture village. Usually, company delivers its
products and services in various locations and use different types of marketing process which
help company to increase its sale and level of earning as well. Attitudes of political
movements are need to stable otherwise they affect entities.
Legal factors- These factors are also having impact on marketing of Furniture village.
It include employment laws and consumer protection laws which may affect existence.
Further, marketing is a key element in every company which assist them to increase their
level of earning (Donovan and Henley, 2010).
Economical factor- As Furniture village use marketing process in various countries
which is different from one country to another. These factor include monetary policy,
inflation rates, economic growth rate and level of employment and unemployment. High rate
of economic factor may affect directly or indirectly to marketing programme. If country

having high rate which purchasing power of people is also high and they buy large number of
goods of furniture village. But situation is different in the case on law economic rate.
Technological factor- Most of the companies use advance technology in marketing
programme which help them to build market image. Furniture village use internet, E-
commerce and latest technological equipment for the purpose of marketing. The company
engaged in the business of transfer wooden products in international market which is a largest
wood retailer. Also these factors provides new methods and innovations with the help of new
technologies (Peltier and et.al, 2010). Internet play a vital role in this process, which help
company to promote its goods and services in different countries and perform marketing
function for attract more customer towards their wooden goods. Customer also purchase their
product through online store which can they order online and get product at home without
any physical effort.
Environmental factor- These factors affect marketing process of company. It
involves affect of natural resources which recycle procedure which having impact on
existence of organization.
Socio-cultural factor- These factors include costume, tradition, cultural and beliefs.
Every company have to use marketing of that product which are according to the cultural and
tradition of people. Cultural having a more impact on marketing programme because
Furniture village deliver its goods and services in many countries which all have different
tradition. It include age distributions, demographics, distribution of health etc.
TASK 2
Managers and leaders of Furniture village have to perform task in order to manage
marketing and segmentation programme. Through strategies are effective and produce able to
increase earning efficiency and level of profit as well. Marketing department of Furniture
village prefer different segmentation strategies which are effective in nature and help
company to attain their desired long term goals and objectives. Segmentation strategies
consist variable elements such as, age, lifestyle and gender (Hair and et.al, 2012). Some
various ways to segmenting market are as follows:
Geographic segmentation- Furniture village use this type of strategies for enhance
their market present and attract more customer. Managers use this strategy in which divide
market according to climate, market size and states. Most of the organization use climate if

their goods and services are related with climate of that place. Furniture village deliver its
wooden products in different country according to their taste, nature and preferences. Staff
members of company make plans and strategies in order to promote their product in various
places and deliver those goods which have ultimate demand in that country (Brown, 2015).
Demographic segmentation- This factor is play a extremely vital role in every
organization of marketing department through which members can easily get information and
affect purchasing pattern of their customer. This segmentation includes ethnic back ground,
family life cycle and income through which organization may deliver product accordingly.
Further, furniture village is interested in family life cycle. It produce wooden products in
order to provide proper comfort to each family. They produce bed, table etc. with good
comfort material stuff. Usually, luxurious items attract more people which provide full
comfort to their customer and give opportunity to company to increase their number of
consumers. So that, in order to attract more families they use internet and e-commerce for
marketing their goods and services in various places (McCabe and Meuter, 2011). Marketing
include advertising and promotion function. Advertisement can be done by companies vie
social media, television and road shows. Road show is a attractive way of marketing all
people can know about company either use internet or not. Families can also purchase its
wooden material with the help of online store or can order online and get product at home.
Behavioural segmentation- It is key factor of marketing, which divide public on the
basis of their behaviour, response and product knowledge. Customer behaviour is the method
which every organization needs to understand deeply. This change because people have
various options in market and they have to choose few and of-course they take decision
instantly without any previous planning. Managers needs to provide goods after doing
research on people behaviour. Further, Furniture village transport its product which can easily
attract customer and they select instantly (Challagalla, Murtha and Jaworski, 2014). They
have to use marketing programme which is according to the behaviour of public.
Lifestyle segmentation- Firstly, every organization needs to divide their customer into
subgroups then identify their demands and wants then deliver goods accordingly. Every
person have some expectation from particular brand and want to get that same product which
companies have to introduce in market. Further, Furniture village needs to produce wooden
stuff according choice of people.

TASK 3
Perceptual mapping is a grammatical technique for identify perceptions of customer
and determine position of company in market (Grönroos and Gummerus, 2014). In this map
differentiate product, price, brand and quality between two or more different companies. It is
a advantage for organizations to better understand their customer and provide goods and
services to them according to their demands and need. Continuous use of maps provide
advantage to Furniture village for identify customer demand for other brands and determine
changes. Through this companies can also evaluate the potential of their customer and easily
compare between two or more entities. Perceptual maps help companies to show their
positing in international market and help them to evaluate business presence in market
(Abdullah and Ismail Ahmad, 2010). It is prepared by placing various types of products of
same nature and differentiated products as well. It is the biggest advantage for companies to
improve their performance and analyse their weaknesses to work on them and try to improve
them.

Illustration 1: Perceptual map
According to above mentioned diagram of perceptual map it is clear that Furniture
village is more effective then other organizations like dfs, Argos, John Lewis and IKEA.
As a more effective in nature Furniture village attract more customer and can able to
improve their ;performance in international market (Nicholson and Oliphant, 2014).
John Lewis is more gentle in nature but dfs is less gentle then this

High price
Law quality High quality
Law price
According to above mentioned diagram of perceptual map it is clear that Furniture village is
provide high quality of goods and service and maintain less price of their product. Law prices
of product attract more number of customer and high quality fulfil their demand and maintain
market share as well. High quality of wooden stuff provide better level of comfort to their
customer which increase their earnings.

TASK 4
Ansoff's matrix plan refers to strategic planning tool which assist company to make
plans regarding future growth. Managers and leaders of Furniture village are able to build
market image and improve growth as well. Ansoff matrix define strategies which are the set
of directions for organizations. Here, some strategies are defined below:
Market penetration- It is growth strategy which support company to sale existing
goods and services in existing market. The main advantage of this factor is, it can build
market share in international or domestic market which increase their level of earning as well.
Some basic objective of market penetration are as aligned below:
 It can help companies to maintain market share of their present goods and
services by making proper planning of pricing, advertising, promotion,
production, selling and storing.
 By introducing loyalty in product, Furniture village can increase their number
of customer and put it in a profitable position.
 By making pricing strategies companies can sale their current products and
secure market growth of these goods and services.
Market development- It provides an opportunity to sale present products and services
in new market in order to increase number of customer. In market development companies
have to change selling process like Furniture village can retail their products and services via
online order or mailing system. They have to use new distribution channel for promoting
them in new market. Use various pricing policies which for attract more people and increase
their number of customer as well.
Product development- In this market strategies companies have to introduce new
product in existing market. Make some innovations in their goods and services which may be
demand of existing market and improve selling or attract more customer towards it. Product
development strategies require modify their existing products and improve market growth
with this.
Diversification- In this type of strategy, Furniture village may introduce new
products in new market which can build market share and improve their performance in
international market. It may become risky for companies because they don't have experience
in that market. But it provides greater rang of growth.

Marketing mix define as companies need to put right product, at a place, at a perfect
price in order to meet needs and demand of their customer. Here, 4Ps which are define the
marketing situation are as follows:
 Product- It refers to an item which produce and deliver in market to meet
customer demand and fulfil their goals and objective. Furniture village
offering various types of wooden product which are introduce in international
market with providing proper comfort to them. By selling product to people
and in consideration organization can take money which becomes profit for
them. Marketing is important for every entities to introduced it between people
and increase sale as well.
 Price- It is an amount which is paid by customer in order to enjoy product.
The price must be reasonable so that customer can easily attracted towards it
and able to purchase them. If price of goods and services are set at a affordable
rate people can purchase it more for satisfy their needs and organization earn
more profit.
 Place- It is a location where companies can promote their goods and services
in order to introduce them in market. Distribution is play a vital role in
marketing mix. Organizations have to provide and distribute its goods and
services where customer demand are high (Varey, 2010).
 Promotion- It can assist Furniture village to boost their market share and sale
of their goods and services. It refers to introduce product in international
market through which customers are able to know about their products.
TASK 5
4Ps are having impact on consumer behavioural model. Various stages of fulfil the
needs of their customer and to meet customer demand or requirement. Different stages which
Furniture village needs to work on that which are as aligned below:
Problem identification- This step identifies the customer need and every organization
try to meet them in order to earn profit. It is an process of recognizing requirement of buying
behaviour and try to fulfil them in timely and efficient manner. Higher authority can
gathering information and data from people and identify their basic demand for wooden
elements of Furniture village.

Information research- It define that, interested customer can collect information from
various places and then purchase product. They gather data through reading information,
watch television, read something on internet etc (Clinton, Marco and Chu, 2010). Social
media play a important role in providing information to people and give knowledge about
products and they can take decision regarding buying of goods.
Evaluation of alternatives- Consumers have various options to purchase things from
market. They may select one item from different types of goods and services. Most of the
competitors of Furniture village which produce homogeneous product can increase
competition in market. Customer can buy goods after collecting entire information and make
comparison between them (Young, 2014). They select one which provides higher level of
satisfaction to them.
Purchase decision- At this stage consumer select one brand from various brands
which offering better level of satisfaction to them and fulfil their needs as well. Further, most
attractive brands and products attract number of customer which help company to increase
their revenues.
Post purchase decision- Customers buys the goods and services with certain
expectation which provide higher level of satisfaction to them.
4Ps having impact on customer demand which define as follows-
Product- Every organization needs to produce product and services according to needs
and requirement of their customer (Varadarajan, 2010).
Price- Furniture village needs to set reasonable price of their wooden stuff because
affordable prices are easily purchase by customer and provide higher level of satisfaction to
them. Higher prices can decrease number of consumer it cause loss to organization.
Place- Effective place may attract number of customer and increase them as well.
Promotion- Companies have to use social media and internet for promoting their
product and services across the boundaries or in domestic country. Advance technologies are
also help organization to promote their goods and international market and introduce new
product between them.
CONCLUSION
On the basis of above report, it has been concluded that marketing management of
Furniture village are affected through external factor which affect their existence. Product,

price, place and promotion are having impact on customer demand and consumer behaviour.
Perceptual mapping is a grammatical method which help companies to identify perception of
customer and determine position of company in international market (Allred and Addams,
2013).
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ONLINE
Principles of marketing.2017.[online]. Available
through:<https://en.wikiversity.org/wiki/Principles_of_marketing>.[Accessed on
11th march 2017].