Progressive Office Furniture Marketing Plan: MKTG6002 Analysis

This report details a marketing plan for Progressive Office Furniture, encompassing a business plan, market analysis, and strategic recommendations. It begins with a company background and outlines SMART marketing objectives focused on market share, sales turnover, and contribution margin improvements. The plan addresses key issues like changing buying habits, increased competition, and declining sales through marketing and advertising investments. The marketing logic section explores customer value creation through segmentation (corporate executives, small business owners, home offices), targeting, and positioning. A SWOT analysis identifies strengths, weaknesses, opportunities, and threats. The marketing strategies section outlines the 4Ps (product, price, place, and promotion), including product diversification, competitive-based pricing, and distribution strategies to create a comprehensive marketing mix for Progressive Office Furniture. The assignment also includes an internal and external analysis of the company, offering insights and recommendations.

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Progressive Office Furniture
Name
(Affiliation Institution)

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Introduction
A business plan is defined as a written document which provides a deep analysis of how
an organization is planning to achieve its plans (Blackwell, 2011). Through a business plan, an
organization outlines its short-term goals, long-term goals as well as various marketing strategies
it will use in the market to create awareness and improve sales. Therefore, the paper seeks to
develop a business plan for Progressive Office Furniture. The business plan will be divided into
various sections including a brief background of Progressive Office Furniture, objectives,
segmentation, positioning, targeting, value proposition, and evaluation of business situations as
well as marketing strategies.
A brief background of Progressive Office Furniture
Progressive Office Furniture is a company which has been designing, manufacturing as
well as installing furniture for over 25 years in Australia (Progressive Office Furniture, 2020).
The company is divided into two division; Dealership solutions and Corporate. The Corporate
division covers various services such as full layouts and design services, project management,
customization of manufactured designs, installation, floor covering, and plumbing internal wall
or construction services. The dealer solution offers various services like manufacturing,
designing, storing, delivering, direct-end user interface, installing total loose furniture as well as
inventory management.
SMART Objectives for Progressive Office Furniture marketing
 To increase the Progressive Office Furniture market share by 5% before December 2020.
 To boost sales turnover by 50% within a stipulated period of 12 months.
 To increase contribution margin by 30% before December 2012 as well as decreasing sales
and marketing expenses by 20% for the company to remain profitable and competitive in the
rapidly changing market.

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Issues
 Changing buying habits - COVID 19 and growth of the internet has seen customers adjust
their habits from spending to saving a move that has facilitated to Progressive Office
Furniture experiencing a declining in the market share over the last decades. The decline in
market share is an indication that the company is losing popularity and thorough marketing is
need to be conducted to maintain market presence
 Increased in the levels of competition: The market has rapidly changed with increased in
levels of competition from both direct and indirect competitors. The high competition levels
have led to a downsizing of prices hence marginalizing the profitability of Progressive Office
Furniture.
 Fall in sales: Progressive Office Furniture has experienced a slight decline in the sales
turnover as compared to previous years due to various factors like change in
macroeconomics as well as the macro environment. Furthermore, other factors such as lack
of awareness in the market due to low marketing strategies or poor marketing strategies have
also contributed to the fall in sales.
To address the major issues surrounding the company for the Progressive Office Furniture to
achieve its objectives, the company will heavily invest in marketing and advertisement to create
a distinctive and memorable brand projecting value, quality as well as innovation. Besides,
Progressive Office Furniture will also measure the rate of awareness in the market and adjust the
market efforts in potential markets.
Marketing logic to create customer value
Market logic involves a way by which a business intends to create customer value and
achieve a profitable relationship of customers (Lusch & Vargo, 2014). The customer-driven
factors of Progressive Office Furniture involve segmentation and targeting (which customers to

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serve in the Market) as well as differentiation and positioning (How to serve those customers on
the market).
Segmentation
According to Goyat (2011) Market segmentation involves a business dividing its market
into units of distinct groups of buyers with diverse behaviours, characteristics as well as needs
and those who demand separate marketing programs or products. The market segmentation of
Progressive Office Furniture will be divided into three district groups of corporate executives,
small business owners as well as home offices. By March 2020, Australia had a total of
2,755,641 registered businesses as compared to 2,655,141 in 2018 including both Corporate
Executive as well as Small Business Enterprises (Australian Security and Investment
Commission, 2020). The number is expected to rise in the near future hence increasing demands
for the Furniture products and services.
 Corporate executive- The Corporate segment involves big companies in Australia and also
schools. Corporate involves a business category with a workforce of more than 100
employees (International Labour Office Report, 2020). Market research from the company as
well as statistics from various scholars shows that corporates, as well as schools including
high learning institution, have a high consumption of furniture products. Therefore, the target
market of Corporate Executives will be high as the previous sales reports of the company
have revealed that this segment has low bargaining power in the market and purchase
furniture’s products and services in bulky which is our main target.
 Small Business Owners: - Market research from previous company sales as well as
scholarly journals shows that there is a strong market for furniture in Small and Medium
Enterprises. According to the International Labour Office Report (2020), Small and Medium
Enterprises consist of organizations with a workforce of less than 100 employees. In

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Australia, there are over 2 million of the Small and Medium Enterprises (making up to 77%
of all employing businesses) with most of them with concentrated owners and therefore
targeting this market will capture a high number of potential customers (Australian
Government, 2020).
 Home offices: - With the growth of the internet that the world has experienced for the last
few decades, companies have significantly shifted their focus to virtual and self-managed
employees. Most of the virtual teams’ works from their home on various regions hence
demanding furniture especially desks and executive chairs. Besides, the virtual and self-
managed teams have also needed their office set-up as well as periodic maintenance and
upgrades which has, in turn, increased the demand for our products. Currently, in Australia,
there are over 6 million home offices and the number is projected to increase in the near
future (Australian Security and Investment Commission, 2020). With the eruption of COVID
19, the Australian government of Australia is encouraging “working from home” as one of
the measures and advice from World Health Organization (WHO) and therefore the demand
for furniture has increased significantly as Australians are setting workstation in their homes.

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Sales
corporate executive Small and Medium Enterprise Home Office
Targeting
In a marketing context, Targeting involves a business selecting one or more market
segment to focus after a thorough evaluation of each market segmentation (Perna, Clifton,
Jongjin, Varma, Piro, Mapen & Davis, (2018). The target market of Progressive Office Furniture
is any person who has an interest in having a piece of high-end furniture incorporated with latest
technologies. The person may be small and medium business owners (SMEs) corporates as well
as home offices. With consideration of past customer trends, Progressive Office Furniture will
put more focus on new corporates or businesses penetrating in the market as they are likely to be
in high demand for the company’s products and services.
In terms of geographically, Progressive Office Furniture will target urban centres more
than rural areas. There had been a high consumption of furniture products in the urban areas as
compared to rural areas over the past decades. Besides, the company will also target medium and
high incomes personnel as they are more likely to set home offices.
Positioning

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In a marketing context, positioning involves an ability of a business to arrange its
products so that they can occupy a distinctive, clear as well as desirable place as compared to
competitors’ products in the minds of target consumers (Amin, Uthamaputhran & Ali 2015).
Progressive Office Furniture will position itself in the market as a dominant of high-technology
ergonomics as well as traditional high-quality workmanship offering furniture products and
home solutions at low prices and with intention of meeting customer needs. We believe that what
is important to customers is products with ease of use, fine workmanship, elegance. Practically
as well as ergonomics. The products are made from high-end raw materials with the intersection
of undertaking woodworking. The assembly strategy is the competitive advantage of Progressive
Office Furniture as the interlocking of high-quality wood piece it’s a feature for enhancing a
sense of quality as well as pleasures of customers.
The value proposition of Progressive Office Furniture
A value proposition is defined as a value that companies’ promises to deliver to their
consumers if they accept to purchase their products and services (Frow & Payne (2011).
Progressive Office Furniture gives a discriminating furniture user who cares about the working
environment quality as well as furniture quality. The company will also position itself as an
established business offering a combination of high-quality products and services and slightly
low prices to suit the need of customers as well as after-sale services.
Evaluate the business's situation
SWOT Analysis
Strengths weaknesses
 A strong global brand image
 Top home decor and supplies
dealer
 Sustainable meals provide an
 The size and scale of global
business
 Difficult to understand different
countries attitudes and tastes

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international community of
their own
 Targeting a single market
 Not enough distribution channel
Opportunities Threats
 Focus on distinguished large
consumer goods
 Online orders or web marketing
 Growing demand for friendly-
environment products
 Continuing demand for low prices
 Opportunity to enter the market in
the development
 Market forces- as more competitors
offer similar products
 To sustain in the long run
 Economic factors- with people
having less disposable income due
to recession
 Threat a new entrants
 Environmental issues across the
globe
Marketing strategies
Market strategies are defined as a comprehensive plan which businesses formulate for the
achievement of their marketing objective (Yu & Huang, 2010). For a business to plan
effectively, it must outline and describe its marketing mix components that include product,
price, place as well as promotion (4Ps)). The 4ps of a marketing plan are commonly used to
derive a marketing strategy of an organization. According to Gordon, Tapp & Spotswood (2013),
the 4ps forms “marketing mix” which defines a way in which a business takes its products to the
market to meet specific needs for customers.

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Image source (Gordon, Tapp & Spotswood, 2013)
Product- In the context of the marketing mix, Products are tangible or intangible
elements that are produced by an organization to meet customers’ needs in a particular market
(Albayrak, Caber & Aksoy, 2010). The Progressive Office Furniture focuses on diversification
strategy and therefore the company will offer various products as well as services in the target
markets. According to (Nath, Nachiappan & Ramanathan (2010) diversification is a strategy that
involves an organization offering a variety of products and services in the targeted market. The
Progressive Office Furniture will offer a variety of products and services such as full layouts
services, design services, project management, customization of manufactured designs,
installation, floor covering, plumbing internal wall or construction services, manufacturing,
designing, storing, delivering, installing total loose furniture as well as inventory management.

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Besides, for effective marketing, Progressive Office Furniture will focus on the differentiation
strategies of three features of fine furniture craftsmanship, ergonomics as well as technological
expertise. The company has to sell the pride of prestige, workmanship as well as ownership
which comes with packaging, finishing, shipping as well as collaterals. All the products will
come up with a variety of colours and designs to fulfil the diverse needs of customers. The
products will also meet all the minimum requirement as per Australia Burial for Standards for
Quality Assurance. This will assist in the development of confidence among the potential
customers in the market. The product sizes will be different with each size having a different
price.
Price- In the marketing strategy context, Price includes the total amount that customers are
willing to pay for a product or a service and the seller is willing to offer (Huang & Sarigöllü,
2014). The Progressive Office Furniture will use Competitive based pricing to capture the
attention of potential customers in the market. According to Füreder, Maier & Yaramova,
(2014), competition-based pricing is a strategy that makes use of competitors’ prices for an
organization to set its prices. The competition-based pricing strategy will involve The
Progressive Office Furniture focusing on market analysis and information rather than the
product’s perceived value (PPV) and production costs (Cost-plus pricing) (Füreder, Maier &
Yaramova, 2014). Through the Competition-based pricing, The Progressive Office Furniture will
benchmark products to those of direct and indirect competitors in the Australian Market. Upon
benchmarking, the company will set its products slightly below the benchmark as this strategy
will enable the company to sell more units in the market as compared to the competitors although
the profitability will be slightly declined. With consideration the main aim of the company is to
increase the product awareness in the market and to maintain its presence as The Progressive

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Office Furniture is already established brand in Australia, the reduction of profits will have
minimal impact on the company’s sustainability. The market which The Progressive Office
Furniture operates is price sensitive meaning a slight decline in price can assist an organization
gain additional market share. Therefore, with consideration of insensitivity aspect, The
Progressive Office Furniture will also consider psychological pricing strategy especially when
putting the prices tags of products and service in its online marketplace platforms. According to
Goldsmith, Flynn & Kim (2010), psychological pricing Strategy involves an organization
placing its prices in a certain way that they will affect customers psychologically in different
ways. For example, The Progressive Office Furniture will place its price at $597 instead of $600.
The price will not have an impact on the profitability of the brand although it will influence the
potential customers to purchase. The company will also consider rewarding discounts to
customers who purchase the products in bulky or have a repetitive purchase with The
Progressive Office Furniture.
Place- Distribution also called Place is a specific location where a business is established
(How customers find and purchases what the company is selling) (Singh, 2012). Progressive
Office Furniture Company will have both online marketplaces as well as brick and mortar stores
in various regions across Australia. The brick and mortar stores will be used by the company for
logistic administration, showroom as well as inventory services. Through the online marketplace,
the customers will make orders over the websites and let the company deliver their products and
services within the stipulated time. The distribution channel of the Progressive Office Furniture
Company will include the use of both retailers and wholesalers. The company will send samples
to Catalogue organizations and further attend trade fairs to market its products and service
effectively.

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Promotion- In the marketing strategy context, Promotion involves a manner in which an
organization advertises its products to the potential markets (Smyrnov, 2014). The Progressive
Office Furniture will be promoted through marketing representatives. The marketing
representatives will be deployed in various regions around Australia to make sure the company
reaches all parts of Australia as well as enhancement of convenient deliveries. Once Customers
makes an order on the website, the nearby representative and store will be contracted to deliver
the products. This will cost-cut inventory income and further assist the business to be promoted
locally in each region across Australia.
The Progressive Office Furniture will also be promoted through Online. The Progressive
Office Furniture website which has a strong reputation for delivering as well as trust among
customers will direct customers to the Platform. Furthermore, the Progressive Office Furniture
will also have a prominent and renowned social media platform including Twitter, LinkedIn,
Instagram as well as Google and YouTube. Currently, 72% (approximately 18 million out of 24
million) of the Australian population have active social media accounts and the population is
further expected to grow in the near future. Therefore, advertising over social media is an added
advantage for The Progressive Office Furniture to market its products in pursuit to reach a wide
audience in its target market.
The Progressive Office Furniture will also consider influencer marketing for the company
to promote its product effective in the Australian Market. Influencer marketing will
Involve the Progressive Office Furniture using renowned public personas such as famous
comedians, musicians and other artists to endorse and direct potential customers to the
company’s website. The company will also consider using content marketing. Content marketing
is a type of marketing that involves storytelling. The Progressive Office Furniture will