Marketing Plan Executive Summary: Business Expansion of Furniture

This marketing plan executive summary analyzes Progressive Office Furniture's strategy for expanding its business outside Australia. It includes a comprehensive market analysis, considering geographical, demographic, behavioral, and psychographic segments, along with a review of competitors like Herman Miller and Steelcase. The plan outlines the company's product offerings, marketing mix, and segmentation, targeting, and positioning (STP) strategies. It addresses potential threats and opportunities, sets SMART objectives (e.g., increasing sales by 20% by 2021 and entering more than two countries within 15 months), and discusses issues like resource availability and fluctuating consumer demand. The report details action programs, a budget, and control measures, including the Return on Investment (ROI) technique, to achieve the expansion goals.

Marketing Plan
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Executive Summary
In this report, there is discussion about “Progressive Office Furniture” which is thinking to
expand their business outside Australia under market development. In order to expand the
business, market policies, competitor’s strategies, marketing campaigns, etc. are evaluated
through which it is easy to enter in the market. There is an in-depth study of the current
market situation to determine growth prospects in a new market. The issues are discussed
which might arise hurdle in achieving SMART objectives, hence strategies are formulated to
deal with it. The objective of “Progressive Office Furniture” behind entering the new market
is an increment in sales by 20% by 2021 and entering in more than 2 countries within 15
months. The marketing analysis is conducted through the marketing mix and STP. Lastly, the
budget is determined for different activities in order to achieve goals and budgetary control
and return on Investment technique (ROI) is used for controlling operations.
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Table of Contents
Executive Summary...................................................................................................................2
Current Marketing Situation......................................................................................................4
Market Description.................................................................................................................4
Product/ Service Review........................................................................................................5
Competitive review................................................................................................................6
Channel and logistics review..................................................................................................6
Threats and Opportunities Analysis...........................................................................................8
Objectives and issues...............................................................................................................10
Objectives.............................................................................................................................10
Issues....................................................................................................................................10
Marketing strategy...................................................................................................................11
Marketing mix......................................................................................................................11
Segmentation, Targeting, Positioning (STP)........................................................................12
Action programs.......................................................................................................................14
Budget......................................................................................................................................15
Control......................................................................................................................................17
References................................................................................................................................18
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Current Marketing Situation
Marketing refers to the actions which are performed to communicate and interact with
consumers about product and services. In the current era, marketing is one of the most
important and crucial components because it bridges the gap between current position of
organisation and future approach to achieve it (Berestova, 2015). The different modes of
marketing are television advertisements, radio, press media, hoardings, social media
platforms, etc. these modes are selected as per the motto of marketing, target consumers,
competition, etc. As the role of marketing is effective, similarly the time and cost required for
it are also high.
Progressive Office Furniture is dealing in the furniture sector with two segments i.e.
dealership and corporate solutions. These segments are working fitting, installing, supplying
furniture to their clients. The managers of Progressive Office Furniture are thinking to
expand their business outside Australia; hence they have to market their idea among
consumers. There must be innovative marketing strategies by the management of Progressive
Office Furniture; hence they can create their goodwill in the market as well. With a motto to
operate outside the Australian market, the top-level managers of Progressive Office Furniture
have to determine competitors as well.
Market Description
Market refers to the place where buyers and sellers arrive with a view to exchange. This is
the place where a number of consumers and sellers are present with their demands and
products respectively (Bingham, 2015). There are different market segments due to which
furniture demand might get changed Geographical, Demographic, Behavioral and
Psychographic basis.
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Figure 1: Market Segmentation
(Source: Bly, 2015)
Geographical segmentation arises because of the difference in geographical backgrounds,
such as the demand for Australian consumers is different from Asian
consumers. Demographics include age, sex, caste, occupation, income, status, location,
company size, etc. which also changes the demand for furniture. For instance: a 50-year-old
man wants a comfortable chair for sitting while corporate people want attractive as well as
comfortable furniture. Behavioural segment divides the demand of the consumers on the
basis of their mindset, purchasing habit, brand awareness, etc. Lastly, the psychographic
basis talks about lifestyle, interest, attitude, priorities, etc. of the individual (Bly, 2015).
The market outside Australia is dynamic hence the demand of consumers will change
because of all the segments. So it is important for managers of Progressive Office Furniture
to determine it and understand the changes properly. It is not easy to operate outside Australia
because consumers have a different mindset, so it is essential to understand it and then
provide services.
The priorities of the consumers also get affected by the change in external market
components. Furniture is required by consumers as per their preferences and availability of
resources, but some external components also affect their purchasing decision. Such as –
 Marketing campaigns- As Progressive Office Furniture is expanding its business
outside Australia; hence they must market new and latest designs. This changes the
mindset of corporate people to install new and latest designs.
 Competition- There are many competitors of Progressive Office Furniture, hence
people can avail the facility of furniture installation and set- up services from them as
well. The design, price, offers and discounts, complimentary services, after-sales
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services, etc. change the mindset of consumers to avail services (Byrd-Bredbenner, et.
al., 2017).
Product/ Service Review
In this marketing plan, there is a discussion about the expansion of business by Progressive
Office Furniture outside Australia under market development. With the help of expansion, the
scope of working for the company increases. The increment in sales and profits of the
association will assist Progressive Office Furniture to diversify its business in new segments
also. The offerings of Progressive Office Furniture are- office furniture from small home
offices to big corporate offices (Chaffey, & Jones, 2015). They provide expert services for
designing, planning and fitting of furniture. This association is divided into two major
segments i.e. corporate division and dealership solution.
 Under the corporate segment, the Progressive Office Furniture provides full furnish
services from planning, designing of furniture to proper fitting. This keeps satisfied
services with understanding the demand, preference, budget of the client, hence this
service costs more while they deliver it to consumers outside Australia.
 While the other service dealership chain of Progressive Office Furniture provides
designing and installing furniture services to consumers. This service will available
for large corporate houses or franchises business (Chernev, 2018).
Competitive review
While expanding business in other parts of the country, the most prime factor might give a
negative return is competition. Furniture is demanded y different organisations as per their
preferences, hence while planning for operating in other countries, managers of “Progressive
Office Furniture” must determine their presence and influence of them. Some competitors
are- Urban office, Herman Miller, Steelcase, Humanscale, Knoll, etc. (Spence, 2017)
Herman Miller- It is an American based furniture organisation providing office furniture,
types of equipment, home furnishing, etc. This association was founded 115 years back
providing services all over the world. Product quality offered by this organisation is high
because the targeted consumers are corporate people who have a high budget for installing
furniture. The marketing operation conducted by Herman Miller is relationship
marketing to target corporate and organisations for their furniture set- up (da Silva & Las
Casas, 2017).
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Steelcase- this association was founded in 1912 in Michigan providing office furniture,
architecture and technological products for offices, educational institutes, health care sectors.
This association is the largest furniture manufacturing unit in the world; hence “Progressive
Office Furniture” has to understand the strategies followed by them. The marketing strategy
used by Steelcase is email marketing because this makes personalise relation with
consumers and it is easy to identify the mindset and perception of the individual.
Knoll- This association was established in 1938 in New York, US and has head-quartered in
east Greenville, US providing various types of furniture to consumers (Da Silva & Mazzon,
2016). They are serving good seating arrangement, office system set-up, desks, tables, etc. to
an educational institute, offices. The marketing strategy used by this association is social
media platform to target a larger number of people.
Channel and logistics review
While dealing with consumers, there is no intermediary between the client and organisation.
“Progressive Office Furniture” has outlets and stores where people can communicate with
executives regarding their furniture demand or sales team of the company will send catalogue
with quotations to showcase the client. This does not create any communication gap and the
best product can be provided. But this is possible after understanding the demand of the
consumers and gets to know about the availability of space. There is direct communication
among consumers and personnel of the company through which offers, discounts can be
communicated effectively and there will not be any commission or charges of middlemen
(De Pelsmacker, et. al., 2018).
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Threats and Opportunities Analysis
Threat refers to the components which might affect the expansion of business negatively
because it is related to industry not organisation. While opportunities are scope where
“Progressive Office Furniture” can prove them and grab the client’s satisfaction. The study of
threat and opportunity reduce the possibility of a negative outcome and increases the scope of
working (de Vicuña Ancín, 2018).
Threats Opportunities
One major threat is competition. There are
many organisations which are working in this
sector for many years and they have strong
client relationship policies. When
“Progressive Office Furniture” will expand in
other geographical regions, then local shops
and vendors at that place also affects them to
sustain in the industry.
With the expansion of business, organisation
can diversify their products with other
equipment and home furniture. As in the
current ear, there is a requirement of different
furniture such as side table, wall almirah,
sofa-cum-bed, folding bed, etc. hence scope
of working can be improvised (Gagnon,
2016).
Government rules and regulations are
another threat because as per the change in
the political party working policies get
changed. This requires managers of a new
organisation to fulfil their demand and it
affects the core operations of the newly
established organisation. For instance: if
managers of “Progressive Office Furniture”
establish a business in China, then they have
to understand policies and fulfil them which
might be complex and time-consuming.
There is the scope of innovation in office
furniture regarding colour combination,
design, pattern, etc. through which
consumers can get multi-purpose furniture as
per their demand.
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With the study of these threats and opportunities, it is easy for association to plan activities in
case of negative results. For instance: if “Progressive Office Furniture” is not able to make a
good image, then they have some backup plans through which they can sustain and make
improvements in their services (Haider, et. al., 2017).
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Objectives and issues
“Progressive Office Furniture” has some motto and targets which they want to achieve with
the expansion of business (Izvercian, et. al., 2016). Objectives can be understood through the
“SMART” strategy because they are specific to determine achieved or not.
Objectives
 To enhance the sales by 20% till the end of 2021.
 To make existence in more than 2 countries within 15 months.
Issues
 Availability of resources is the threat to “Progressive Office Furniture” when they
are operating outside Australia. There is a requirement of labour, raw material, etc.
which might not available in a new country. So continuation in operations gets
hampered. There is a requirement of wood for furniture business, if this core resource
is not available then, it will be tough for the company to operate in the industry.
 There is an issue in availability of finance at a new destination because of fluctuating
business performance (Jay & Sealey, 2016). If innovation in products and services
offered by “Progressive Office Furniture” requires more research and development
activities, hence expert knowledge is compulsory. Frequent change in demand of
consumers might also cause hurdle in exploring business.
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Marketing strategy
In order to expand in other countries, there is requirement of marketing products and services,
so it is easy to create some perception in the mind of new consumers. The best and innovative
marketing strategies will, the more consumers are eager to avail services. Marketing activities
can be performed through offers, discounts, after-sales services. In order to evaluate and
understand marketing activities, market mix analysis will be performed (Juska, 2017).
Marketing mix
This model consists of all the factors reacted with the marketing of product and services
among targeted consumers. With the help of this model, marketing objectives will achieve
because operations are conducted in a systematic and reliable manner. Marketing mix for
“Progressive Office Furniture” for expansion outside Australia is as under-
Figure 2: Marketing Mix
(Source: Kotler, et. al., 2017 )
Product- The offering of “Progressive Office Furniture” is office furniture and they provide
services related to planning, designing and fitting of furniture. The sector of working of this
company is office furniture including chairs, desk, system-setup, tables, storage, material
selection index, etc. through corporate services and dealership solutions (Kotler, et. al.,
2017).
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Price- Price is the charge which is taken from consumers in lieu of services and products they
accepted. The best pricing strategy for “Progressive Office Furniture” is competitive pricing
strategy because under this organisation will charge as per competitors. While entering in
new market, the core objective is to set business which is possible when they offer the lowest
price of furniture in the market.
Place- place refers to the point of sales. It means the place where products and services are
available for consumers. As per the case of “Progressive Office Furniture”, furniture,
designing and other consulting services are available outlets or stores of the brand. The
store will be opened at easily reachable places for the consumers (Langston, & Loreto, 2017).
Hence there will ease to consumers to check designs, communicate with experts, etc.
Promotion- promotion is important because it creates an image in the mind of targeted
consumers. There are different ways through which promotion can be done such
as hoardings, e-mail marketing, paid promotion strategies, etc. through which people get
to know that new brand arrives especially for office furniture.
Process- Process refers to the planning done to make products or services available to
consumers. There are two segments of “Progressive Office Furniture” i.e. Dealership and
corporate solutions through which consumers can be served with best designing,
manufacturing, installing and fitting of furniture. There is a specific flow of operations for
timely services to clients.
People- People includes workers who are the key to the success of business and achieving
targets. Workers of “Progressive Office Furniture” are trained and skilled who will give their
best services while operating in a new market. Organisation has existence in the market
because of workers, hence proper training must be provided to smooth running of operations
(Macarthy, 2018).
Physical evidence- This refers to the symbol or services through consumer can determine the
brand name. Physical evidence is important in marketing mix because this shows brand
awareness among the consumers. It is important and specific for “Progressive Office
Furniture” to have some impressive strategy that must remain in the mind of consumers.
The logo of “Progressive Office Furniture” with white brand name "PROGRESSIVE",
red underline in blue base will work as physical evidence and maintains the brand image in
the new market.
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