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    The furniture market in South Asia is growing due to economic development and an expanding urban middle class in India. However, Damro, a furniture manufacturer that competes primarily on cost, is at a disadvantage when entering the high-value, branded furniture market which is dominated by customized furniture makers. The Damro brand is still not able to reach the upper middle class market and is seen as a cheaper, lower quality option. Once larger furniture brands like IKEA enter the Asian markets, it will pose a major challenge to Damro's considerable market share achieved through price leadership.

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    The furniture market in South Asia is growing due to economic development and an expanding urban middle class in India. However, Damro, a furniture manufacturer that competes primarily on cost, is at a disadvantage when entering the high-value, branded furniture market which is dominated by customized furniture makers. The Damro brand is still not able to reach the upper middle class market and is seen as a cheaper, lower quality option. Once larger furniture brands like IKEA enter the Asian markets, it will pose a major challenge to Damro's considerable market share achieved through price leadership.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    22 views1 page

    Challenges: Page 3 of 5 ©slim

    Uploaded by

    expressway14
    The furniture market in South Asia is growing due to economic development and an expanding urban middle class in India. However, Damro, a furniture manufacturer that competes primarily on cost, is at a disadvantage when entering the high-value, branded furniture market which is dominated by customized furniture makers. The Damro brand is still not able to reach the upper middle class market and is seen as a cheaper, lower quality option. Once larger furniture brands like IKEA enter the Asian markets, it will pose a major challenge to Damro's considerable market share achieved through price leadership.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Challenges

    The Furniture market in South Asia is enjoying growth. With the immense economic
    development and expansion of urban middle class in India and the sub continent
    demand for furniture seems to be increasing. But furniture manufacturers like Damro
    which basically compete on a cost driven strategy have a disadvantage when
    entering into the high value branded furniture market which is dominated by
    customized furniture manufacturers. The Damro brand is still not able to reach this
    upper middle class market and most of the upper middle class consider Damro as a
    cheaper and low quality option of furniture. This image does not sufficiently fit with
    the new rich and middle class demands of Asia.

    Also at the international level, a larger furniture manufacturer like IKEA (worlds
    largest furniture brand) is yet to enter into many Asian markets. Once they penetrate
    the market it will be an immense challenge for companies like Damro who have been
    enjoying considerable market share due to their price leadership.

    I. Conduct a Brand Audit for Damro and make an audit report covering following
    areas:
    a. Brand features and benefits
    b. Brand personality
    c. Brand value and vision
    d. Brand positioning
    (20 marks)

    II. Explain how brand extension and brand stretching is using by Damro and
    suggest future directions for them on the same.

    (20 marks)

    (Total 40 Marks)

    Page 3 of 5
    SLIM

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