FURNITURE COMPANY "PINOKOLINO"

The furniture company "Pinokolino" has been operating on the Polish market for over twenty years.
During its activity, the company has managed to build a strong competitive position, based primarily
on a wide range of products of reliable quality, which gives it a relatively high market share. The
company's customer base includes not only individual customers, but also other companies that
often commission comprehensive furnishings for their own office spaces.

Sales offer
The current offer of "Pinokolino" company includes serially produced furniture and furniture made to
measure for individual orders. The company intends to focus most of its production capacity on the
production of standard furniture because it sees this as an opportunity for further development and
strengthening of its position among Polish furniture manufacturers. In addition, individual orders are
not very profitable, as they require the delegation of some employees who usually work on
production lines. This reduces the production rate, and the margin that "Pinokolino" can impose on
such services is relatively small. The best-selling products are:
 "Aneta" chest of drawers with dimensions of 150 x 50 x 80 cm,
 "Paweł and Gaweł" bunk bed with dimensions of 250 x 120 x 160 cm,
 "Adam and Eve" double bed with dimensions of 270 x 200 x 30 cm.
Until recently, the "Maria" desk was also a frequently purchased item, but the dynamics of sales
growth of this piece of furniture began to gradually decrease, but still maintaining a high level.
Considering further development opportunities, the company's management has decided to modify
its product portfolio. Table 1 shows numerical data on the size of profits and sales of individual
products over the past two years.

Table 1. Sales volume and profit of Pinokolino products (thousand PLN)

Q2 Year Q3 Q4 Q1 Q2 Q3
Products
1 Year 1 Year 1 Year 2 Year 2 Year 2
Aneta 9,8 10,1 10,9 11,5 12,2 12,9
Paweł &
Sales - - - 2,5 4,7 8,9
Gaweł
Adam & Ewa 30,8 35,4 28,7 32,3 35,1 42,4
Maria 97 102 96 94 93 89
Aneta 2,9 3,0 3,2 3,4 3,6 3,9
Paweł &
- - - 0,7 1,4 2,7
Profit Gaweł
Adam & Ewa 9,2 10,6 8,6 9,7 10,5 12,7
Maria 29,1 30,6 28,8 28,2 27,9 26,7
In addition, the company offers numerous models of wooden and metal chairs, as well as stools with
plastic seats in various colors in its product range.

Mary desk
The company has decided to introduce a new type of desk called Mary into its product line, following
consumer trends in furniture purchasing and the success of its previous Maria desk. Modifications
were made to the original design to better meet the needs of potential buyers, including an
automatic system for adjusting the height and angle of the top and an extra cabinet for increased
storage and use as a computer workstation. The new model is available in five colors, including pine,
beech, oak, mahogany, and maple, and features a unique design that avoids right angles.
The Mary desk comes with a two-year door-to-door warranty, and customers can purchase furniture
installation and delivery services for added convenience.
Packaging and delivery methods
Pinoccolino also offers after-sales services, including the choice to purchase furniture installation and
delivery services to customers' homes. This ensures that customers do not have to worry about
transporting their purchased products or lack of assembly skills. An additional advantage is the
innovative method of packing the company's products in cardboard boxes of uniform size (50 x 70 x
50 cm) and a constant weight of no more than 10 kg. This makes transportation easy and fast, and
the packaging material allows for later recycling. Furthermore, the boxes are printed with some
useful information for customers, such as details about Pinoccolino's sales points, including
addresses, phone numbers, and current opening hours of individual stores, as well as information
about current sales offers and promotions in effect during a particular period. Numerous customer
satisfaction surveys and studies have expressed positive opinions about this packaging method.

Future plans
Actions aimed at introducing a new product to the Polish furniture market have been supported by
marketing research, which has shown a clear increase in demand for desks that serve both as tables
and workspaces. Pinokolino hopes that the Mary desk will be well-received by consumers, which
could lead to the creation of a whole new line of products in the future. The company is also
considering the possibility of entering a new area of business, which would involve the production
and sale of lighting. Some Pinokolino products already have built-in spot lighting, such as wardrobes,
which facilitates the use of this type of furniture and also distinguishes them from competitors'
products.