Background of the Adaptable Home Products Company (AHP)
AHP employs innovative technologies to promote comfort in common household items. As it satisfies the requirements of the contemporary market, this strategy might be classified as modern and significant.
The reputation of the founders among investors acts as the basis for the financing of various enterprises.
After a product has been delivered, regional mechanical engineers install it, if necessary.
The company's high-quality products enable it to pursue expansion into international markets.
Product line 1 consists of the following items: (push-button adjustable height) furniture
In addition to height-adjustable armchairs, couches, entertainment centers, and kitchen tables, there are optional height-adjustable seats.
Product Line 1 Summary
The absence of complication in product line 1's installation and delivery reduces potential problems in this regard. The company offers competitive pricing for Line 1. Line 1 has received the fewest complaints.
Armchairs are a key element of home comfort, so it's not surprising that this product is so popular, given its low price and high quality. The lack of necessity to include technology into sofas may account for the market's seeming lack of interest in these products. Entertainment centers are the line's least popular item. This could be due to the fact that competitors have a stronger brand and greater product variety in this market category. Due to the proliferation of smart-home technology, height-adjustable kitchen tables that can be adjusted with the push of a button have gained popularity; their presence in kitchens noticeably accompanies this trend.
Product 1 is the second most popular item in the collection. Product 2 – unpopular. Product 3 – unpopular. Product 4 is the best-selling item in the collection.
Possibilities for Marketing Product Line 1
Products 1 and 4 are devoid of defects; their sales should be enhanced.
It is essential to comprehend the fundamental issues with Products 2 and 3 from the customers' perspective.
Given the low sales rates, it is essential to promote Products 2 and 3.
Even internationally, there may be untapped markets; devoted investors will back this concept.
Before commencing a marketing campaign, it will be essential to do a market analysis and determine the primary demands and interests of consumers.
Armchairs and sofas can be conveniently offered as a set because they are typically seen in the same room.
Seasonal discounts could be one of the strongest strategies for Product 3 to survive in the face of intense competition.
Increased interest in the included items will result from the availability of software that enables Product line 1 to function as a single unit.
Strategic partnership, such as in the context of Product 3 sales, will facilitate the acquisition of a partner's expertise and the penetration of new market segments.
Customer Experience Evaluation
Almost half of respondents were either undecided or did not intend to purchase additional adaptable furniture or equipment from AHP. Such figures suggest that measures should be done to maintain consumers over the long term.
Customers were most interested in movable side tables, a mixer that vanishes into an adjustable height countertop, and triple monitors that plug into a single port, according to the poll. The addition of the aforementioned components may increase a client's long-term interest in the company's products.
Only four respondents indicated that they obtain information about the majority of companies' new items through social media; therefore, the online presence must be strengthened.
The majority of respondents cite AHP's versatility and quality as their favorite aspects. According to the CEOs, these two factors appear to be essential firm goals.
Only three respondents stated that the price-to-quality ratio is unreasonable.
Respondents stated they had to contact customer support for clarification. In addition, a number of respondents explicitly noted in their optional remarks that the catalog's content must have more information.
The company's main aims of quality and adaptability underpin its high customer satisfaction rates.
The retention of actual consumers and the enhancements to the catalog will help to a boost in performance, as they are now the most important factors.
Possibilities for Marketing to Increase Brand Loyalty
The creation of Instagram, Facebook, and Twitter profiles, as well as the launch of the corresponding targeted campaign, could be outsourced.
Loyalty programs are vital to ensuring that loyal clients feel cared for and that their long-term cooperation with AHP will result in nothing but rewards.
Provision of branded merchandise, such as T-shirts, may increase the company's recognition; social media presence is also indicative of this.
Reasonable price reductions are essential for sustaining demand.
AHP's Brand Personality, According to Aaker
Within the context of the sincerity element, the fact that the company provides products for use in the house to provide maximum comfort validates the family-oriented quality. AHP strives to meet its goals of quality and comfort provided at all levels, which makes it trustworthy in the eyes of its customers.
AHP has a clear emphasis on the technical aspects of its products, and the extensive technical experience of its founders, executives, and personnel makes the brand trustworthy.
Given the global shift toward smart-house technologies and the brand's incorporation of elements not typically seen in standard items, the brand is contemporary and, given the global shift toward smart-house technologies, stylish as well.
AHP aims to appeal to affluent consumers because its products are priced somewhat high but still competitively. It must be acknowledged that consumers who cannot afford abundance at this time are not interested in the technological improvement of their everyday environment. Then, aesthetically pleasing views are an integral component of technologically advanced, everyday household devices.
In terms of sturdiness, it may be argued that AHP follows the Western tradition of giving comfort in every aspect of life. The majority of industrialized Western nations appear to be advancing standard household goods.
In general, AHP has built a strong brand identity based on a particular blend of distinctive characteristics.
Impact on Consumer Purchasing Decision
Reference groups, families, roles, and statuses are significant socio-cultural elements. Personal aspects include the age, occupation, lifestyle, and personality of a consumer. Motive, perception, attitude, and beliefs are psychological elements.
Notably, "by analyzing past purchasing behavior, marketers can predict how consumers will behave in the future when making purchase decisions" (Kotler & Armstrong, 2010, p. 160; as cited in Lautiainen, 2015, p. 6). Consequently, if implemented effectively, marketing can enhance the success of a firm by investigating consumer purchasing behavior. In particular, AHP's marketers may recommend that entertainment centers be removed from the company's offerings and replace them with adjustable side tables. A suggestion of this nature is based on the analysis of sales, which are the manifestation of customer purchasing decisions.
Global Opportunities for Marketing
The EU possesses substantial purchasing power across all market segments, and AHP possesses the resources necessary for expansion.
The predicted yearly growth rate for the European furniture market is 3.7% (Statista, 2020a), which is significantly greater than the 1.5% growth rate for home appliances (Statista, 2020b). Thus, Product Line 1 appears to be gaining popularity.
Europeans strive to diversify their comfort zone, and technologically advanced normal household goods contribute to this, which is a significant competitive advantage.
The EU requires items of the greatest quality, which AHP provides.
Competition on the market is intense, but there is no monopoly (Mordor Intelligence, 2020); therefore, collaboration with a few local small and medium-sized businesses is an additional possibility – valuable experience will be obtained.
Global Opportunities for Marketing (Strategic Aspect)
AHP intends to remain a small business but to penetrate the international market. In Europe, it is crucial to be represented not in megacities but in prosperous small and medium-sized towns.
Due to limited resources and a lack of experience on the EU market, fierce competition should be avoided during the earliest stages of entry.
It will be vital to promote AHP products without incurring excessive costs; social media could be a viable solution.
In order to attract new European clients, initial price reductions may be implemented to pique their interest. They may be retained in the future via loyalty schemes.
References
Lautiainen, T. (2015). Considerations affecting consumers' coffee brand choosing decisions (Publication No. 38124382) [Bachelor's thesis; University of Applied Sciences Saimaa]. CORE. Mordor Intelligence (2020). Europe's furniture market – expansion, trends, and projections (2020–2025). Web. Statista (2020a). Furniture – Europe. Web. Statista (2020b). Europe household appliances on the web.
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