Nowadays, customers are more and more demanding and seek the best product that fits their needs and likes. Marketers also have been forced to face up to fast changes and trends. Besides, a company cannot answer to all consumers' needs so it has to choose whom its product or service will address. The aim of the report is to highlight segments of importance in marketing through theory and examples. We have chosen two big companies involved in the same industry: home furnishing products. These companies are in competition in the same market because both provide home furnishing, decoration and home equipment at a lower price. However, both the companies have two different ways of segmentation and their strategies are different. The first is the Swedish company IKEA and the second is the French company CONFORAMA from PPR multinational. In this report, we will first define the main concepts about marketing segmentation in order to see the importance of segmentation. Then, we will show how big companies such as IKEA and the French competitor CONFORAMA answer to consumers and what are their own segments.
[...] Place: - Idem to segment 2 Part CONFORAMA marketing analysis CONFORAMA's presentation CONFORAMA is a French company which belongs to PPR (Printemps Pinault - Redoute) a French multinational holding company specialized in retail shops and luxury brands. It was founded in 1967 in Lyon and bought by PPR group in 1991. It is the French number 1 of home furnishing and the number 2 of home equipment in the world. The company owns 246 stores in France and the company is also in 7 countries (Spain, Italy, Luxemburg, Poland, Croatia, Portugal and Switzerland). [...]
[...] (2002) The marketing plan, a step-by-step guide Unless your objective is always to sell your product at the lowest price, you need to find groups of customers who will buy your product for other reasons, such as quality, service or additional product benefits. Market segmentation allows you to consider the market you are actually in and the market that your company should be Positioning: There are two different ways of seeing the positioning. The first is from the company's point of view, it refers to how organisations want their consumers to see their product. [...]
[...] Segmentation and Positioning In order to show CONFORAMA marketing segmentation, we have made a table summarizing main points. Segmentation Segment 1 : Families Geographic Suburban areas Demographic - 30-75 years old Women and men -Family (married) -Worker and retired -small and medium budget Psychographic -people who are looking for cheap furniture following their likes -family life Behavioral -heavy user -for all occasion in life good price value and discount perception of the brand Positioning As we have seen in the table above, CONFORAMA has developed an undifferentiated marketing that is to say they sell products to one entire market. [...]
[...] - CONFORAMA has developed direct marketing sending short messages system to its best customer offering discounts and special offers. Place: - A lot of specialized salesmen are in stores in order to advice potential customers. - It is possible to book furniture from CONFORAMA's website since 2001 and to pay online. - Since 2002, they have developed the famous way road” in their store permitting to consumers to see all different items and universes. - They have a large stock capacity and they propose a delivery service. [...]
[...] (2006) Marketing Management mentions five criteria for an effective segmentation: - Measurable - Relevant - Feasible - Accessible Part IKEA marketing analysis IKEA's presentation IKEA is a privately-held, international home products retailer that sells flat pack furniture, accessories, bathrooms and kitchens at retail stores around the world. The company was founded in 1943 by Ingvar Kamprad in Sweden. IKEA is an acronym comprising the initials of the founder's name (Ingvar Kamprad), the farm where he grew up (Elmtaryd), and his home county (Agunnaryd, in Småland, South Sweden). [...]
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