Ege's Marketing Strategy

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Ege’s Business- to- business market
Ege differentiates its customers to “residential” and “contract”. (Strategy 2009). Residential customers are the retailers who buy carpets and resale them to the end customers (actual persons). Ege’s clients consist of the big chains such as Garant, Tæppeland. They have shops in more than 50 cities in Denmark, which covers the biggest part the country (garant.nu, taeppeland.dk). This is why ege’s carpets reach a lot of customers. The resellers have a close feedback to the end consumer so they should give information back up the chain so that Ege could know what the expectations for their products are. Buyer-seller relationships should be strong. However, ege does not find this market highly potential. Contract customers are ‘’hotels, restaurants, stores, offices, schools, institutions, hospitals, ship builders, train manufacturers, etc’’ (Strategy 2009). This market is extremely profitable and successful as this is where Ege can sell tremendous quantity of their products. Ege is selling on a B2B related market. This means that the customers are not buying products or services for their own personal use but an owner or an employee of an organization buys a product or service for the use of the organization. (Kotler) Also it is called an organizational buying where the decision - making process by which formal organizations establish the need for purchased products and services and identify, evaluate and choose among alternatives, brands and suppliers (Webster and Wind). This is relevant to ege because they should have strong-relations that are based on trust and loyalty. As long as in B2B market customers are fewer but buy larger quantity than in B2C market, the trust is said to be one of the most important aspects on which the company needs to focus. Especially in a state of crisis Ege should strive as much as it can, for strengthening exactly these relations. Also the buying center is a part of B2B market that takes a main position. A company like ege should be in no doubt which are the participants in the buying center in order to know who they have to convince for what. It comes even more important in a state of crisis when the building industry for example is trying to narrow its expenses, time and resources as much as possible. In this situation ege not only should know how to sell its products but also to who to refer to when it comes to purchasing – initiators, users, influencers, buyers, deciders, approvers and how to go around the gatekeepers (one person can be related to more than one role). A deep research in the buying center targeting, or namely the potential customer’s role differentiation, is an important tool for establishing a long - run relations. Ege’s carpets can be referred as leverage products in relation to ege’s customers. They have a high value because flooring of a building (room) is an important part of the interior. Furthermore they have a high cost because of the good quality provided. The risk involved is low because the customers have a variety of designs to choose from. Ege’s Competitors:

As we are restrained only at the Danish market the competitors of Ege include all the manufacturing companies which produce and sell carpets in Denmark. The organizations which make different types of flooring are also a part of the competitive force. They are determined as companies providing substitute products (explanation in ‘’Substitute products’’ in the section ‘’Porter’s five forces). One of Ege’s competitors is Danfloor. They are having a close relationship with their suppliers and sub-suppliers. That enabled them to work with the usage of New-Zealand and British wool. They also have vinyl flooring. The advantage of it is that they have a bigger variety of their products and they can satisfy a broader field of customers’ needs. It also differentiated its clients as residential and contract. There are also foreign competitors which sell on the Danish...
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