Family Furniture was established in 1953 by Sy Sokol and Patrick O’Reilly to pent up housing Demands after World War 2. The firm was renowned for an inviting store appearance, good service, extensive collection and moderate prices. The firm occupies a large warehouse and shipping facility along with an 80,000 square foot store. It dealt with the business of Exclusive Furniture Material. COMPETITORS
Local Departmental Stores
Pottery Bern and Crate & Barrel
Mass marketers Like Wal-Mart
Internet Buying by most of the customers to whom the products were shipped in directly to their homes. CHANGING MARKET SCENARIO
Majority of the companies customers are in the Age bar of 45+
There is low unemployment in the market
Lack of young consumers, which can then become the potential business for the company by offering the products and services for the youth TARGET AUDIENCE
Middle to higher income families above 45 age
Specially targeted to the married women who make the maximum purchase related decisions CHALLENGES
According to a survey conducted 50% of the people are single
There was a problem in targeting to the female customers and hence was calling for Brand Repositioning No- No- No Ad campaigns that were promoted by the competitors in order to attract the consumers towards their products by giving very flexible discount schemes The changing habits of the consumers wherein most of the decisions were then impulsive in nature
There was a lot of influence of the SALE Promotions on the behaviour of the consumers and big retail giants like Walmart were taking the benefits from this. RESEARCH STUDY AND FINDINGS
Three components were considered in the research survey- 1)
Secondary Research 2)
Focus Groups 3)
Questionnaire from 100 consumers The main aim was to know the needs of the untargeted consumers. The parameters on which the research was conducted are: 1.
Need Recognition 2.
Search processes 3.
Alternative Evaluation 5.
Post-Purchase Evaluation 8.
Maximum customers brought the Furniture because they were either Moving to different locations or needed more furniture to fit in their house
Sales promotions in forms of discounts was the major driver for choosing a particular store for the purchase
Maximum people didn’t want to go for The financing options because of the hidden costs associated with it or because of the heavy interest charges imposed by the companies on the consumers.
Q1. BASED ON YOUR OWN SECONDARY RESEARCH, HOW IMPORTANT AS A TARGET MARKET SHOULD GEN Y & YOUNG PROFESSIONAL BE FOR FAMILY FURNITURE? Gen Y, consists of those people who were born between1979 to 1996. This was a big population; most probably the biggest after the baby boomers. This population was different from its previous generations in many ways. One reason for this was the options available to this generation, due to expansion of internet and increased efforts and creativity of marketers. This resulted in, the Gen Y becoming rebellious and defying the rules and discarding the products and services made for the older generations. In case of Family Furniture, the problem was its target consumers. These were older people, which were less in number, and the numbers were continuously decreasing. In addition, as more and more people from baby boomers and Gen X were taking retirements their purchasing power was decreasing. Furniture was purchased only when something good happened such as a marriage, setting up a new home or increase in salary. All this factors were less likely to occur to the older generation. Hence, their volume of purchase was also low. Since, the people who were getting jobs, entering into the age where a person gets married or takes a new home were the people from Gen Y, hence they were the most profitable potential customers for...
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