Professional Documents
Culture Documents
(Deemed to be University)
National Academy of Indian Railways Campus,
Lalbagh, Vadodara, Gujarat– 390004
w ww.nrti.edu.in | 0265-2648305
REPORT TEAM -
VINEET JAIN (MBA TM) (214078)
KRIPA RANJAN SARKAR (MBA SCM) (2140)
VAIBHAV KHOBRAGADE (MBA TM) (214076)
VISHAL JAINI (MBA TM) (214079)
VAIBHAV PARMAR (MBA TM) (214077)
INDIAN FURNITURE MARKET.
India is known for its unique and exceptional furniture design. Because of its rich
handcraft and appealing traditional art and style, the Indian furniture business is well-
known both in India and beyond.
Over time, the Indian furniture market has changed. Its market has expanded
beyond chairs and tables to include designed interiors, such as wardrobes and
sofas. For generations, furniture has been an important element of Indian
households. The growing middle-class population, rising disposable income, and the
growing number of urban homes all contribute to the expansion of the Indian
furniture market.
The furniture market in India is dominated by small unorganized local firms.
However, organized players have increased their contribution to the Indian furniture
sector during the previous decade.
Industry estimates show that furniture market has an overall market size of
Rs.120,000 crores and home decor and utilities is at Rs.130,000 crores.
According to a Red seer Consulting report, by 2020, India’s furniture industry is
expected to grow to $35 billion, with the online section being worth about $700
million.
The Indian furniture market has grown at a CAGR of 17.2% for the period
FY’2008-FY’2013 and is projected to grow at a CAGR of around 26% during
2014-19 according to “India Furniture Market Forecast & Opportunities,
2019”.
MAJOR FURNITURE COMPETIONS TO BE
ANALYSED: -
FURNITURE SHOWROOM
CARPENTER SHOP
PEPPERFRY
NILKAMAL LTD.
The furniture showroom is the high-class retail furniture showroom who offers
branded or unbranded retail furniture in tier 1 and tier 2 cities.
The carpenter shops are the local shops of retail as well as the manufacturer
in the towns or cities.
Pepperfry is an Indian online startup of marketplace for furniture and home
décor.
Nilkamal limited is the world’s largest manufacturer of molded furniture and
the Asia’s largest processor of plastic molded products.
Furniture showroom
The furniture showroom is composed of establishments that offer a wide assortment
of furniture products for sale to the local public. They purchase furniture from
wholesalers and the manufacturer or sometime the brand also and sell them to
consumers. Products in showroom are dining room sets, leather upholstery seating,
office furniture, bedroom sets, outdoor furniture, living room sets, and individual
furniture pieces such as mattresses or couches. Furniture showroom offer products
that are sometimes referred to as case goods or upholstered goods. Case goods
imply wooden furniture, while upholstered goods refer to anything covered in textiles.
SEGMENTATION -
Demographic segmentation – The demographic target audience of furniture
showrooms are the women. The woman is the target of the most of the furniture
retailers. The working and the household woman are the one who involved in the
decision making of buying furniture. So, the furniture retailer advertises the
product to them directly by the medium of TV advertisement on local channels,
pamphlets, holdings, etc.
Geographic segmentation – The geographical target audience of the furniture
showroom are the basically the Porsche area of the cities or town. So that they
can easily target the upper middle class and the upper class of the society. There
are variety of furniture showroom in every tier 1 and tier 2 cities of they India.
Psychographic segmentation – The furniture showrooms target the middle
upper and the upper class of the society. They approach the category of people
who are very passionate about the brands and use only premium products just to
follow fashion trends. They target customer who buys readymade furniture.
Simply choose and deliver.
Behavioural segmentation – The behavioural target of the showrooms is
basically the loyalty of their customers. They provide the best possible service to
their customer to gain their loyalty to them. They introduce time to time offers and
events for their customer to stay connected with them.
TARGETING
The furniture showrooms mainly target the people of that cities or the town area.
They mainly focus on the upper middle class and the upper class of the society.
They offer both premium as well as the budget segment of the product. Showroom
also tie-up with the brands to sell their product to the premium customer who are
willing to but offline rather than online. They work as a retailer in the furniture
industry as they mainly sold the ready-made furniture. Only few of the showroom
offer the customisation of the product.
POSITIONING
SEGMENTATION
Demographic segmentation- The Carpenter shops focus on lower- and
middle-class segment. For a lower and lower middle class people plastic
furniture, as it is affordable and nice. It also focuses on small business which
needs good and economical furniture.
TARGETING
The target of carpenter shop is mostly the people near that particular
shop. They only work for that particular area. Provide the quality of
product according to the area of surrounding.
The main focus is lower class and middle-class people. They mainly
focus on the lower and the middle class by providing a fine quality of
product to them according to their needs and requirement.
They only sell on offline mode. As the size of their business is small,
they are only comfortable in selling the product offline.
They also target the small businesses or offices in the locality or in the
town. Who are willing to buy office furniture at reasonable price and as
per there need.
The schools and other educational institute also offer them to make
school utility furniture like Benches, table, desk, etc.
POSITIONING
They position themselves in the narrow market where the customer is
fixed and they are continually buying from them.
They are not increasing their area of market. They are comfortable at
their current position. Most of them are afraid of taking risk.
They positioned themselves in the lower- and middle-class segment of
audience.
They work in the budgetary segment of the target audience.
PEPPERFRY
Pepperfry is an Indian online marketplace for furniture and home décor.
Ambaresh Murthy and Ashish shah started Pepperfry in Mumbai in January 2012.
The company is headquartered in Mumbai, Maharashtra and operates as a
subsidiary of Trendsutra Platform Services Private Limited. The company opened
its first offline store in Mumbai in 2014. Studio launch is the first concept of
Pepperfry in India. Company offers more than 1 million type of furniture and most
common selling product is coffee table. Approx. 50% of online market share in
Indian furniture market is hold by Pepperfry. In 2020 Pepperfry ventured into
home interior partnering with Hettich, Bosch, Siemens, Kajaria, Gyproc, among
others. Also, they introduce their mobile app for customer’s.
SEGMENTATION
Demographic segmentation – The main target of the Pepperfry is the
women because in India all the house related decision are done by the
women. and young people who is very trendy they want designer furniture in
their home or, the nuclear family people are having very aesthetics about their
home.
Geographic segmentation – The company mainly focus on the Major cities
or Metro cities and tier 1,2,3 cities where people are comfortable with
ecommerce, company has 17 hubs and 500 cities covered across India.
Company most of furniture warehouse are in western and southern India, they
also have largest furniture warehouse in Padgha. They have 20 studios
across India which give customer expertise about the furniture before buying
the online.
Psychographic segmentation – The Pepperfry focus on the people know
how their furniture experience before buying the furniture that’s why they
started the studio so that customers can go to the studio and check how is the
product, design and quality this will help them to buy that particular product
online.
Behavioural segmentation – The customer gets good quality product at the
budget price. Also, the Pepperfry is focusing on the advertisement so that
they give their product review and how the furniture made, so that the
customer gets good idea about their product. Also, they give discounts and
some coupons to customer so they can purchase at low price. Also, the
company focus on the customer loyalty by giving them good product with
good life at reasonable price.
TARGETING
A) BUSINESS TO CONSUMER(B2C)
The brand targets the youth audience as their primary customer they focus on
them., Because they are the most frequent user of online market. They are
that audience who influence other as well as buy themselves from online
stores.
Then the brand targets the Newly married couples as they are in the new
phase of their lives and they require more of new décor for their new life. So,
they are audience who use online market and the frequent buyer of goods
through online medium.
The other target audience of the brand is the working professional they are
the person who buys nearly 90% of their requirement through online mode.
They buy online to save their time, and they found it as the most convenient
medium of shopping.
SEGMENTATION
Geographical segmentation - People with high income levels or for that matter
cities with more income level will prefer wood furniture as these are considered
luxury goods when compared to plastic furniture. Rural and semi-rural areas -
plastic furniture would be high in these areas as the income levels are very low
here.
Demographics segmentation - The company focus on middle and upper
middle-class segment. Income: For a lower and lower middle class people plastic
furniture, as it is affordable and nice. Gender- men may look for information on
how the plastic furniture is flexible and sturdier than conventional furniture, and
women look out for designs and patterns.
Psychographic segmentation - These people may prefer the conventional
wood furniture which is considered to be relatively upscale products compared to
plastic furniture.
People of this nature may find plastic furniture as a product which will not emulate
their success.
These are people the marketers of plastic furniture industry could be looking for,
as they are the people who become the future opinion leaders to some level. As
these people try lot of things and choose the best. But a very wide variety in
plastic products in several colours and designs has to be made available.
TARGETING
Undifferentiated marketing was Nilkamal used this strategy in the market. Not
much choice and designs were available to consumers.
Differentiated marketing strategy was Later Nilkamal shifted to this strategy.
They developed several products catering to different International Journal.
Concentrated Marketing - The latest trend for Nilkamal. The @Homes is the
initiate taken in this direction. @Homes is a complete home solution store with
contemporary readymade wooden furniture and home accent. It typically targets
the upper middle class and aspiring segment of society. It has been strategically
located at several malls Nilkamal is importing the furniture which includes beds,
bathroom fittings, kitchens, table set, cupboards, racks etc. Customization as per
requirement of the customer is also facilitated. Thus, the company is reaching out
to the consumer.
POSITIONING
Nilkamal plastics have been successful in positioning its products well in
the market. Nilkamal main points of parity are its quality and its price as
compared to other varieties of furniture. For example, as compared to a
wooden chair, a plastic Monoblock chair of Nilkamal costs 50% less.
Moreover, Nilkamal entered into the furniture industry quite early (1990),
and by this time it was a well-established firm, with well-set business in
other areas (household goods, crates). Hence, it had the funds available
to advertise its product.
Nilkamal was the first in the furniture sector to come up with television
advertising. Hence, with huge advantage over the other plastic furniture
players in the industry, Nilkamal became a preferred brand in India.
It became popular especially in south India, where consumers prefer
simple living and hence had a demand for plastic furniture too. The first-
mover advantage sure has paid off for Nilkamal.
Discussion guide CUM Questionnaire
QUES 1. Name?
Ques 2. Age?
Ques 3. Gender?
Ques 4. Profession?
Ques 5. Location?
Ques 9. What Are the Features You Look in Before Buying Furniture?
Ques 10. Which of These Feature Are More Important or Less Important?
If You Have to Rank These Feature in Order of Importance?
Ques 11. If They Don’t Prefer Brand, Then What They Prefer?
Ques 12. How Did You Learn About This Ad?
A. If Shop -> What Influence. (Salesman, Quality, Etc.)
B. If Brand -> Which Ad. (YouTube, Promotion, Website, Etc.)
Ques 13. Which Segment You Go Premium or Budget?
Ques 14. You Purchase Customized Furniture or Readymade Furniture?
You Prefer Online or Offline Customization Option?
AFTER THEY PURCHASED,
Ques 15. Are You Satisfied with The Product and Brand? Rate It.
A. Anything Wants to Add This in Your Product.
B. Do You Have Any Second Brand Preference Other Than This or Product
Preference?
Ques 16. Do You Think Furniture Can Be Environment Friendly?
A. What Do You Mean by Environment Friendly Furniture?
B. Do You Consider This Factor for Buying Furniture?
C. Any Eco- Friendly Furniture Brand.
D. How Are They Environment Friendly.
E. Are You Willing to Pay A Premium for Environment Friendly Furniture or
Not?
Ques 17. Do You Prefer Exchanging Your Old Furniture with New?
Gap Identified
After Conducting and Analysing the interviews we identified the gap that is –
The customer Mainly buy furniture offline. They don’t feel comfortable purchasing
furniture online. They are not aware about the product quality and material used
in the furniture.
Customer want a good quality product under there price range. Customer willing
to buy premium quality product as the pricing of budget segment.
Customer is unable to customize the product as per there Requirement or Ideas.
Customer wants to customise their product like design of their choice, fabric of
their colours, wood as they willing to use, etc.
Customer wants to use eco-friendly furniture product but he has no option for
that. Customer is very aware for Environment. But they don’t know about the
availability or idea of eco-friendly furniture.
Customer want to exchange their old furniture while buying the new furniture for
their home. Majority of customer wants to exchange their old furniture with new
one so that they get extra price benefit as well as get the space at their home for
new furniture.
Customer wants easy return policy, mainly no questioned ask. Sometime,
customer is not happy with the product they purchased but they have no option to
return the purchased product.
Brand
WOODEN DREAMS
Brand Logo
Tagline of our Brand –
WOODEN DREAMS
Wooden Dreams is a Furniture Brand, for the 20-40yrs of Male and especially female
population of India. It’s an online market brand of furniture who provides offline
facilities and services. Brands caters the youth and the working professionals who
wants the comfort as well as familiar offline touch of market.
*Wooden Dreams furniture products office tables, Drawers, King Beds, Wardrobe,
And many more….
Positioning of Wooden Dreams.
TO the expansion of digital market and providing the experience of physical
market WOODEN DREAMS IS THE BRAND OF Furniture THAT gives Premium
Quality Furniture that offer Customization and exchange policy of furniture
BECAUSE We are unique and respect our customer feelings.
Furniture can complete your house from home to "home sweet home". when we
think about furniture, at first wood strike our mind because mostly furniture is made
from wood, but we are in 21st century where global warming is like dark magic for
earth. For that our company introduce a new type of product which is more eco-
friendly as compared to wood.
Bamboo
It is ideal alternative to wood. Basically, it's not a tree, it is longest grass in the world.
Which is also the fastest growing plant. It's for tensile strength and high compressive
strength makes it ideal furniture material. Bamboo is light weight and it's also pocket
friendly.
Rattan and Wicker
Rattan is also a good alternative to wood. It is similar to bamboo. It is renewable
palm species which grows in rain forest.
Wicker is a woven fibre made from reed and swamp grasses, it is so durable
Rattan and wicker are also pocket friendly.
Lantana
It's a weed plant which has beautiful flower, mainly found in country side. Some tribe
of Malai Mahadeshwara hills in Karnataka who made furniture from Lantana.
Government of India has a moto "Vocal for local" under ‘ATMA NIRBHAR BHARAT’
scheme, our company also promote this.
Lantana is a good substitute to wood, mainly sofa, basket, chairs, books and shoe
case are produced from this.
MARKETING MIX OF WOODEN DREAMS
The Four P’s of Marketing Mix of Wooden Dreams are as Follows-
PRODUCT:
We are introducing our Brand as a Furniture Brand.
The name of the brand is s self-introduction of its feature that is Wooden
Dreams i.e., furniture of your dream.
We come up with a tag line that is ‘if you can THINK IT, we can MAKE IT’.
We are an online Brand of furniture with the experience of offline market.
We at Wooden Dreams, take care of customer choice and our priority is
customer satisfaction. That’s why we are coming with a specialisation of
customized furniture as of the customer needs and style.
We make best quality furniture good under the price segment of the
customer. As per the need of customer and the budget, we provide them
according to that.
If the customer is not comfortable with the online buy or want to
experience the quality and service of Wooden Dreams, for that we are also
introducing our Brand store in the metro cities. So that they can simply visit
and experience the world class customer service and the product quality.
Also, for there assistance we are introducing a specialised team of
designer who are available in online mode i.e., on video call or telephonic
call.
We are also providing specialised team on our brand stores for the
customer who likely to want customise their product in front of them with
the help of specialist.
Customer also have the option to customize their own dream furniture with
the help of our website.
PLACE:
Wooden Dreams is an Online brand of furniture. Who offers their customer
from pan India to buy from a wide variety of the products.
Wooden Dreams also offer their Brand store in the Metro cities like Delhi,
Mumbai, Bangalore, Hyderabad, Chennai, and more to come.
People can easily commute with our specialised team on the brand store
as well as on online medium.
We organise a special campaign and events in the tier 2 and tier 3 cities.
So, that we can also influence them to buy from us.
We are also working for the audience of town and small cities by knowing
customer about our product by print, radio and television media.
Wooden Dreams offer their customer a wide variety of products to be
deliver pan India. With the Specialised team for their needs.
We provide our specialised team services and our customer services pan
India. Through online mode whether on telephonic call or video call.
PRICE:
As we get to know from the Interview we have taken, majority of
responses prioritise their price on first or second rank.
They want a best quality product in a budget segment.
Wooden dreams are working for them, by providing best quality product to
them in their budget segment. We make this possible by removing all the
middlemen from the chain and delivering you the best quality product at
your doorstep.
We also provide the furniture which is made up of Rattan and Witcher
which is a kind of bamboo product. We introduce this product in a premium
product design and quality as this product is very pocket friendly for the
customer.
We are also providing the Exchange of old furniture with new furniture
policy, which tend to be comfortable for the customer to buy new furniture
buy exchanging their old furniture and some extra amount of money.
As the exchange is there, we also come up with the idea of Eco-friendly
wood which is prepared by the waste plastic and the wood. So, the
exchange wood going to be utilised for making eco friendly wood so that
no more tree would be cut and also the waste plastic can also be used
with that to make a pocket friendly furniture wood, which is more reliable.
PROMOTIONS:
In order to promote our new brand in the existing market we have come up with the
following Strategies which help our brand to Compete and position in the market as a
Brand of Quality and Customer Service.
Advertisement
For advertising preferred medium will be there –
Television
On behalf of Interview, we have taken from the sample of population,
we get to know that the woman plays the dominating role in decision
making of purchase of Furniture’s for their home and, mostly of them
are home maker. So, the television is the best and the vast way of
promoting our brand among the Home makers.
We introduce our Brand ambassador to feature in our Advt.
We promote our brand through Television Advertisement specially at
the time of Afternoon. When, the most of the drama’s serials, reality
shows are repeated telecasted, etc.
Radio
The Radio is the Third largest media in India after Social Media and
Television with the number of 51 million users.
We advertise our product on radio as an average of 16 minutes a day a
user of radio listen in a day.
Print media
We promote our brand store in metropolitan cities through print media
like Advertisement Holdings at traffic areas, Pamphlet distribution etc.
We also promote our online Social media handle through print media
by following idea -
Digital Marketing
In the Modern Era we going to promote our Brand with the following ways -
Company Website
We have come up with our Company Website. Which is a one click
Destination for all of the customer Furniture needs. We are providing
them all the solution for their furniture needs.
We provide on website, on call as well as on video call service for the
customization of their furniture.
Our website speaks all about our brand as you can see in the following
Screenshot. It promotes our brand, Environment friendly, Customer
services, our offers, and many more…
Social Media
We Promote our new presence and reach out the target Audience i.e.,
youth of India, through Our official social media handle on Facebook,
Instagram, Twitter, etc.
We promote our Brand through Facebook and Instagram Digital
marketing so that the non-user of our handle can also see our offer
posts and advertisement, etc.
Our brand Ambassador also promote our brand on their official handle
on different Social media.
Digital Events –
Organising various events like quizzes, games on our product and
brand will create brand image and position our brand in their minds.
And giving out special discount coupons and rewards for their first
purchases, etc.
Public Relations
Planting a sapling.
Nowadays, every person aware about the environment and want to
work for it, but couldn’t. Due to their busy schedule.
But we Plant 5 sapling of ASHOKA TREE on every single purchase of
product. Will influence the customer.
They are Directly or indirectly contributing to the environment while
purchasing from us.
This will lead to create a brand image in their mind that brand is
working for a good cause.
Personal Selling
As we introduce our brand store in the Metro cities, this will help us to
promote our brand to the customer directly. A specialised team of
Designer will be there to help them with the product and the brand
requirements to them.
Various campaign and events to be organised in order to create
awareness about the environment friendly furniture in the Tier 2 and Tier 3
cities, where we are not able to introduce our brand.
Both of the above will help us in the way of personal selling to the
customer. And get their views and feedback to us.
APPENDIX
The result of the interview is attached in the
following link. Please go through it.
REFERENCES
https://www.marketresearch.com/
https://www.mordorintelligence.com/
https://brandalyzer.blog/
https://www.wikipedia.org/
https://www.google.com/imgres
https://ii2.pepperfry.com
https://www.techsciresearch.com
https://www.statista.com/statistics
https://www.microdinc.com/blog/improve-furniture-marketing-strategy/
https://brandyuva.in/2019/07/marketing-strategies-of-nilkamal.html
https://www.mbaskool.com/marketing-mix/services/17237-pepperfry.html
THANK YOU