Maryland International College

School of Graduate Studies

Course: Marketing Management

Course Number: MBA 621

Group Assignment: Evaluation of Marketing Planning of a

Company

Prepared by:

Instructor’s Name:

August, 2022
Addis Ababa, Ethiopia

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 Contents
1. Introduction...........................................................................................................................1
2. Evaluation of the Company Marketing Plan........................................................................2
2.1. The External Environment: Macro environment Analysis.........................................2
2.1.1. Political Factors...............................................................................................................2
2.1.2. Economic Factors............................................................................................................2
2.1.3. Socio Cultural Factors....................................................................................................3
2.1.4. Technological factors......................................................................................................3
2.1.5. Ecological factors............................................................................................................4
2.1.6. Legal factors....................................................................................................................4
2.2. External Environment: Micro environment Analysis...........................................................5
2.2.1. Competitive Pressures..............................................................................................................5
2.2.2. The Customer Environment...........................................................................................6
2.2.3. Supplier and distributors Analysis......................................................................................8
2.3. Internal (Organizational) Environment Analysis............................................................8
2.4. SWOT Analysis Matrix......................................................................................................11
2.4.1. Strengths........................................................................................................................11
2.4.2. Weaknesses....................................................................................................................11
2.4.3. Opportunities.................................................................................................................12
2.4.4. Threats...........................................................................................................................12
2.5. Marketing segmentation, target and Positioning................................................................13
2.5.1. Market Segmentation Strategy....................................................................................13
2.4.2. Primary Target Market.................................................................................................14
2.5.2. Positioning Strategy......................................................................................................15
2.6. Marketing Mix Analysis.....................................................................................................15
2.6.1. Product.....................................................................................................................................16
2.6.2. Price..........................................................................................................................................16
2.6.3. Promotion................................................................................................................................16
2.6.4. Place.........................................................................................................................................17
2.6.5. Service......................................................................................................................................18
3. Conclusion and Recommendation.............................................................................................18
Reference.......................................................................................................................................21

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1. Introduction

A marketing plan is the advertising strategy that a business will implement to sell its product or
service. The marketing plan will help determine who the target market is, how best to reach
them, at what price point the product or service should be sold, and how the company will
measure its efforts. Typically, a marketing plan includes: an overview of the business’s
marketing and advertising goals; description of the business’s current marketing position;
timeline of when tasks within the strategy will be completed; key performance indicators (KPIs)
that will be tracking and description of the business’s target market and customer needs.

The report evaluates the marketing plan for private limited company in Addis Ababa named
Classic Office Furniture. Classic Office Furniture is a private limited company based in Ethiopia,
Addis Ababa. It is specialty manufacturer and importer of high-end office furniture. The
company marketing plan is evaluated mainly based upon the provided term paper guideline.
Accordingly, the evaluation mainly consists the macro environment analysis, micro environment
analysis, internal environment analysis, marketing segmentation, target and positioning and
marketing mix analysis. Specifically, in order to evaluate the case company marketing, plan the
checklists that are provided for this project and the course material are used as guideline.

The main objective of this paper is to evaluate the marketing plan for Classic Office Furniture
which is private limited company in Addis Ababa. The project is written based on the data
collected from both primary and secondary sources of data. The primary data are collected from
the key informant interview with two purposively selected respondent who are working in the
company head office in Addis Ababa. In addition to this, a secondary data is collected from the
company official website and company marketing plans to write this assessment report. The
journal articles and course materials are also used. More so, the checklists that are provided for
this project and the course material are used for the purpose of evaluating the case company
marketing plan

The paper has organized into three sections. The first section is about introduction and
methodology. The second section describes about main body of the project which contain sub

1
section about macro environment analysis, micro environment analysis, internal environment
analysis, marketing segmentation, target and positioning and marketing mix analysis. The third
section conclusion, lesson learn and recommendation.

2. Evaluation of the Company Marketing Plan

2.1. The External Environment: Macro environment Analysis

The External Environment (Macro environment Analysis) is important as it affect the marketing
and business performance of firm. PESTEL analysis is a scan of the external macro-environment
in which an organization exists. It is a useful tool for understanding the political, economic,
socio-cultural technological and legal environment that an organization operates in. The
following key findings represent summarized results of PESTLE analysis of Ethiopia furniture
industry with particular focus on the Classic Furniture Company.

2.1.1. Political Factors

Currently, in Ethiopia there are Ethnic tensions in some area. However, both domestic and
foreign investors have been attracted and willing to invest in different regions of the country.
Presence many international organizations and Embassies in the country and strong government
diplomacy with developed nations attracts more investors that would increase the potential for
furniture business. The manufacturing sector including furniture industry is regarded as strategic
under the Ethiopian government that result in strong government support for the industry.
However, the political instability, the tension in ethnic conflict, limited access to finance,
insufficient supportive institutions and existing ones are weak having limited capacity create
challenges.

2.1.2. Economic Factors

Among expected drivers of cement consumption growth in Ethiopia is the country’s huge public
sector-led economic growth - averaging 10.8% since 2005 - is expected to continue. Growth
could be as much as 6.1% in 2021/22 and 2022/22, according to the African Development Bank.
Currently, Ethiopia is going through the transformation into an open economy and hence
stressing the importance of industrialization in a country.
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Major infrastructure projects are being carried out that will facilitate market opportunity and
demand for the furniture product. It clear that medium-to-long term growth will rest on the
government’s ability to support a diversified private sector. Total general government
expenditure reached 470 billion Birr and was 13 percent higher than a year ago as a result of rose
in current expenditure by 19.1 percent. Over the last ten years, foreign investment has increased
tenfold, driven by government-funded infrastructure projects. Under the next Ethiopian Ten
Years development plan, public investment will also remain strong, particularly in the transport,
telecommunications and energy sectors. All this factors and condition will create a favorable
condition for the demand for furniture business.

2.1.3. Socio Cultural Factors

The population growth of the countries is also high - growing at 2.9% - is expected to create
numerous opportunities for production of furniture. Among expected drivers of furniture product
growth in Ethiopia are the emergence of a fast-growing middle class, rapid urbanization that
requires improved living standards. The expected urbanization growth rate of 4.3% coupled with
the overall population growth will increase housing demand and further push furniture business
development. Few years back, the rural and suburban consumers preferred custom made
furniture and depended on local carpenter for their furniture. But, new a day, aside urban
consumers, rural and suburban consumers also prefer readymade brand furniture. However, the
high-end furniture use culture of the country has been largely limited.

2.1.4. Technological factors

Potential for localizing significant parts of selected furniture technology and opportunities to
benefit from using environmentally friendly technology and related carbon trading scheme create
favorable condition in furniture industry. The government also gives greater concern for to
expand its use of improved and modern technologist. The furniture industry is no exception to
such developments, with possibilities of new methods of production as well as greater
opportunities for reduces operational overheads, and making selling mechanism easier and
quicker. Classic Furniture has sophisticated machine and technology in their factory which will
positively affect their production level and contribute in reducing production cost. However,
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technologies are changing day by day and advent of new technology fetches new challenge for
surviving in competitive market. Full capacity utilization of existing machineries may not be
possible in current power shortage situation of the country.

There is a potential for localizing technologies of the furniture industry as well as the design and
production of selected equipment and spare parts necessary for the furniture industry. However,
frequent power interruption, limited knowledge and technology transfer capacity and shortage of
trend manpower in furniture technology and management might and use old technologies pose
challenge in furniture industry.

2.1.5. Ecological factors

This vast and divers’ ecology of Ethiopia make availability of local timber and wood product for
potential use by furniture industry. The country’s has abundance of raw material such as timber,
various wood specifies, gypsum and pumice which create the favorable condition for the
furniture production. The availability of sustainable and diverse alternative energy source and
availability of local raw material for potential use by furniture industry in the country. There is
huge potential of alternative energy sources in the country.

2.1.6. Legal factors

The business legal environment plays a very important role in determining the success of any
businesses around the globe. Various government legislations and policies have a direct impact
on the performance of furniture industry. For instance, revised tax and vat policy, raising duty of
imported raw materials may affect the industry. To achieve sustainable industrial development
emphasis has been given to technology transfer. For this reason, the Ethiopian Science,
&Technology Policy has been developed to create technology transfer framework that enables
the building of national capabilities in technological learning, adaptation & utilization. In
addition, inadequate product, environment and energy standard and regulatory enforcement
capacity of the country pose another challenge on the furniture industry.

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2.2. External Environment: Micro environment Analysis

External Environment (Micro environment Analysis) like customer, supplier, competitor are also
affect the marketing and business environment.

2.2.1. Competitive Pressures

Competitive pressure is defined as the level of competitive atmosphere in the industries in which the
company’s industry operates (Jan, 2000). The intensity of competition is defined as market factors that
affect the level of competition measured by the number of similar companies in the same industry,
product competition in the market, resulting in changes in market share from the competition, the level
of price manipulation, contractual agreements between customers and competitors, changes in
government regulations and policies, intensity price competition, competition product intensity
(differentiation), product promotion, and channel distribution (Subroto, 2015).

Classic Office Furniture occupies a specific niche within the office furniture market. Classic
Office Furniture gives the discriminating personal computer user, who cares about design,
quality furniture, and quality of working environment, a combination of the highest quality
furniture and an integration of the latest technology, at a relatively high price. Therefore, it is
hard for competitors to provide comparable products, as most of them lack the combination of
technological integration and quality in materials and craftsmanship.

Its nearest competition may include GM Furniture, Dubai Furniture, Delux Frniture, Best Home
& Office Furniture, SNS Furniture and Harot Furniture. These companies distribute their
products through channels such as chain office supply stores or their own retail locations. In
contrast, Classic Office Furniture targets its potential customers based on their search for its type
of product. Within its specific niche however, Classic Office Furniture will have three significant
competitors, GM Furniture, Best Home & Office Furniture, and SNS Furniture. GM Furniture is
a bigger company, operating mainly in the same niche, whose marketing is better than its product
quality. Best Home & Office Furniture is also a major furniture manufacturer, which has recently
targeted the same niche. SNS Furniture is furniture manufacturer which produces some office
furniture products and markets to the high-level consumer.

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In general, however, the major competition is not in its niche. The company competes against
generalized furniture manufacturers, cheaper computer-related furniture, and the mainstream
merchandise in the major furniture channels and office supply stores. It is not that people choose
our competitors instead of our product; it is that they choose lesser quality, mainstream materials
instead of the higher quality furniture we offer. In the mainstream business, channels are critical
to volume. The manufacturers with impact in the national sales are going to win display space in
the store, and most buyers seem content to pick their product off the store floor. Price is critical,
because the channels take significant margins. Buyers are willing to settle for laminated quality
and serviceable design. In direct sales to corporations, price and volume is critical. The corporate
buyer wants trouble-free buying in volume, at a great price. Reliable delivery is as important as
reliable quality.

In the high-end specialty market, particularly in Classic’s niche, features are very important.
Classic furniture’s target customer is not making selections based on price. The ergonomics,
design, accommodation of the computer features within the high-quality feel of good wood, is
much more important than mere price. The company is also seeing that assembly is critical to
shipping and packing, but its customer doesn't accept any assembly problems. Hence, the
company need to make sure that the piece comes together almost like magic, and as it does; it
presents a greater feel of quality than if it hadn't required assembly at all.

2.2.2. The Customer Environment

Classic Office Furniture segmentation is that is not intending to satisfy all users of office
furniture intended for use with personal computers, but, rather, only those who are most
demanding. The company is definitely out to address the needs of the high-end buyer, who is
willing to pay more for quality.

In its particular market, the company also seeks the buyer who appreciates two attributes: the
quality of furniture workmanship and the excellence of design, with an understanding of
technology and ergonomics built in.
 Corporate executives: Informal market research indicates about 20 thousand potential
customers who are managers in corporations more than 100 employees. The target

6
 customer is going to be at a high executive level, in most cases, because the purchase
price is relatively steep compared to standard office furniture.
 Small business owners: Informal customer surveys indicate a strong market among the
owners of businesses with fewer than 100 employees. There are 100 thousand such
businesses in this country, most of them with concentrated ownership that makes the
owners potential customers.

 Government officials: - Informal market research indicates about 10 thousand potential

government officials.

 Other: The Company will also sell to some its products to managers of different Non-
Governmental Origination (NGO), diplomats, embassy that is also estimated more than
10 thousand.

Classic Office Furniture gives the discriminating personal computer user, who cares about
design, quality furniture, and quality of working environment, a combination of the highest
quality furniture and an integration of the latest technology, at a relatively high price. Classic
provides this discriminating customer with more than a piece of furniture. It provides a quality
working environment that includes the integration of technological components that generally
exist as part of the executive setting. The quality of manufacturing, materials, and ergonomics
found in Classic products serves to enhance the appearance of an executive's office atmosphere,
in turn adding to their status and effectiveness as a decision maker, innovator, and leader.

Classic Office Furniture understands that its target market needs more than just office furniture.
This need grew out of the special requirements of personal computing, when combined with
office furniture -- keyboards at correct height, monitors at correct height, proper channels for
cables, and other amenities. The company target customer wants to have all of that, plus fine
furniture. There is a need for quality wood and workmanship throughout. Classic don't just sell
office furniture, it sells design, workmanship, fine materials, and a total-quality office
environment.

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2.2.3. Supplier and distributors Analysis

The supplier and distributors are greatly influencing the business and market environment of
company. The supply chain is defined as the entire process of manufacturing and selling
commercial goods, including the identification and supply of raw materials, manufacturing,
distribution, retail location and customer delivery. One of the important factors of furniture
industry, which can compete at national and international markets, can provide intended
quality and amount raw material. For this reason, it has had importance that evaluation
and selection methods of raw material suppliers. The supply-chain management system has
aimed that it controls material supply, production and distribution stages in supply-chain from
raw material to production and then end user. The Classic Furniture are long years experienced
distributes, which they serve as competitive advantage for the company. However, the company
does not has reliable suppliers which may create challenge on the company marketing strategy.

2.3. Internal (Organizational) Environment Analysis

Classic Office Furniture is a private limited company based in Ethiopia, Addis Ababa. It is
specialty manufacturer and importer of high-end office furniture. The company produces
contemporary high-end office furniture that will add value and grace to your office. Its customers
are in all levels of business that can afford very high-quality office furniture. Product’s quality,
variety of models, special designs, and high level of service offered are the advantages that make
the company brand the most preferred brand.

The company has a vision is to operate as one of the most successful high-end office furniture
companies in Addis Ababa and Ethiopia. Classic Office Furniture helps create pleasant,
productive office environments with well-designed furniture that incorporates new technology
into the classic office model, in which real people can work happily. The company are sensitive
to the look and feel of good wood and fine furniture, as well as to high-powered personal
computing. The company always provide the best possible value to our customers who care
about quality office environments, and we want every dollar spent with us to be well spent.

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The company long term objectives
Long term objectives are prepared from the mission statement of the organization on the basis of
which all other activities depend. Long term objectives highlight the expected consequences that
emerged from application of certain strategies. All the strategies of the Business Organization are
formulated & implemented in the guidance of the long-term objectives. Accordingly, the Harot
Furniture has set its long-term objectives. The company long term objectives and strategies
mainly include the following:
 Product Diversification and value addition
 Increase current market share rate of the company to 10%
 To become cost leader of the industry.
 Improve Quality & profitability
 Increase capacity utilization
 Improve leadership capacity
 Improve Human resources capability
 Minimization of defect of product

Marketing Objective
Classic Office Furniture marketing strategy assumes that it needs to go into specialty channels to
address its target customer's needs. The company prepares and uses high-end quality catalogs
that accommodate to the company’s kind of customers.
 Position as the highest quality, offering status and prestige levels of purchase.
 To Create brand awareness
 Increase current market share rate of the company to 10%
 Strong presence on the World Wide Web. Web presence is a natural objective in reaching
appropriate potential customers.
 Strong presence over the content and recipients of the direct marketing with uses high-
end quality catalogs and specialty distributors.

As one of the leading firms in its industry, Classic Office Furniture Company, has numerous
strengths that help it to thrive in the market place. These strengths not only help it to protect the

9
market share in existing markets but also help in penetrating new markets. Classic Office
Furniture gives the discriminating personal computer user, who cares about design and quality
furniture and quality of working environment, a combination of highest quality furniture and
latest technology, at a relatively high price. Classic Furniture offers very high-quality office
furniture designed to effectively incorporate computer machinery into the executive office or
home office. The key to the line is an ergonomically effective desk that still looks like an
executive desk and looks very good in a high-end office, but is intended to accommodate the
personal computer.

The company strength also emanates from its product line. Classic main line of product is the
Classic computer desk in several versions. This is an elegant piece of office furniture designed to
look good in executive office and at the same time, be ideal for real use of the computer. The two
critical elements of ergonomics -- keyboard height and angle, and monitor height and angle -- are
completely adjustable. Cable runs and shelving add to the utility of the executive desk, without
sacrificing elegance. The company also make complementary pieces to fill out the office suite,
including file cabinets, printer stands, and bookcases. In addition, the company makes custom
designs to fit exact measurements. The company will also be watching for technological
developments, allowing us to be the first to provide custom furniture for wall-mounted flat
screens, liquid crystal displays, and similar technologies.

The company also works to create and nurture a healthy, creative, respectful, and fun office and
workshop environment, in which its employees are fairly compensated and encouraged to respect
the customer and the quality of the product we produce. It also seeks fair and responsible profit,
enough to keep the company financially healthy for the long term and to fairly compensate
owners and investors for their money and risk.

The company has also strong marketing orientation. The company targets these markets through
a variety of media including the Internet, catalog distribution, and word of mouth advertising.
Because Classic offers products at a high-cost level, it does not wish to mass market. Rather
Classic strategy is to make the product information readily available to those seeking quality
office furniture with specific technological needs. Therefore, the company will publish internal
catalog. In addition, because Classic product assumes the use of computer technology, the
10
development of websites will increase the company profile by promoting its product line in the
media most appropriate to its customers.

2.4. SWOT Analysis Matrix

A strengths, weaknesses, opportunities, and threats (SWOT) analysis has become a key tool used
by businesses for strategic and marketing planning. SWOT Analysis is an analysis method used
to evaluate the 'strengths', 'weaknesses', 'opportunities' and 'threats' involved in an organization.
(Benzaghta, et al., 2021). The company has the strength of a combined expertise in high-tech
ergonomics and furniture manufacturing, and the opportunity of a growing market and new
channels of distribution. It has the weakness of a small company without a lot of experience, and
the threat of new competition taking aim at the company niche.

2.4.1. Strengths

 High-End, and exceptional quality furniture

 Price according to the market
 The product is good and easy to install
 Defective products are immediately replaced with new one
 Bonus for customers with a large number of orders
 Own Capital
 Strategic market segmentation and implementation strategies.
 Diversified market segments: Corporate executives, small business owners, home offices.

 Have strong management team and have technical craftsmen.

 Have a combined expertise in high-tech ergonomics and furniture manufacturing

2.4.2. Weaknesses
 High-end, high priced product line limits sales volume.
 Small distribution network.
 Product Finishing is not neat
 Production activities carried out with simple equipment
 People Lack of human resources owned
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  Financial system is still simple
 Company location is less strategic
 Starting at no market share at all.
 No established plant of its own.

2.4.3. Opportunities

 New channels of distribution.

 Internet marketing and sales.
 Presence many international organizations and Embassies in the country increase demand
in furniture
 Availability of a growing furniture market
 The population growth of the countries is high, the emergence of a fast-growing middle
class, rapid urbanization increase demand in furniture
 The development of advanced production technology and using environmentally friendly
technology.
 The vast and divers’ ecology of Ethiopia make availability of sufficient raw materials
 Availability of legal framework create technology transfer framework that enables the
building of national capabilities in technological learning, adaptation & utilization
 Specific niche: High-end appreciation for quality materials, ergonomics, and technology.
 Market is very attractive

 The new generation of corporate executives, small business owners, and home offices has
a far greater appreciation of technology and the needs driven by its implementation, such
as office environment quality and integration.

2.4.4. Threats
 Growth in the high-end office furniture market invites competition. This competition
could emerge from a variety of given sources including:
 Established mass-market companies' development of new lines.

 New marketing strategies for established products and companies.

 Existing competition.
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  Political insecurity and ethnic conflict
 High inflation rate and acute foreign currency shortage
 Negative attitude to local products
 New entrants with new technology
 Unavailability of national waste disposal
 Bureaucratic legal requirement on imported products and low regulatory enforcement
capacity of the country

2.5. Marketing segmentation, target and Positioning

Company marketing strategy is an important and crucial constituent for market. In order to
achieve a satisfactory and adequate marketing strategy which has a positive outcome in overall
firm success, the marketing department within a company should bear in mind all the different
marketing mix strategies that can influence the comprehensive result and the cumulative firm
success (Cespedes & Piercy, 1996). In this section the marketing strategies of Classic Office
Furniture is discussed as follow.

2.5.1. Market Segmentation Strategy

Market segmentation is an organizational strategy used to break down a target market audience
into smaller, more manageable groups (Slater & Eric 2001). Classic Office Furniture
segmentation is that is not intending to satisfy all users of office furniture intended for use with
personal computers, but, rather, only those who are most demanding. The company is definitely
out to address the needs of the high-end buyer, who is willing to pay more for quality.

In its particular market, the company also seeks the buyer who appreciates two attributes: the
quality of furniture workmanship and the excellence of design, with an understanding of
technology and ergonomics built in.
 Corporate executives: Informal market research indicates about 20 thousand potential
customers who are managers in corporations more than 100 employees. The target
customer is going to be at a high executive level, in most cases, because the purchase
price is relatively steep compared to standard office furniture.

13
  Small business owners: Informal customer surveys indicate a strong market among the
owners of businesses with fewer than 100 employees. There are 100 thousands such
businesses in this country, most of them with concentrated ownership that makes the
owners potential customers.

 Government officials: - Informal market research indicates about 10 thousand potential

government officials.

 Other: The Company will also sell to some its products to managers of different Non-
Governmental Origination (NGO), diplomats, embassy that is also estimated more than
10 thousand.

2.4.2. Primary Target Market

The targeting strategy is where the marketing mix comes together to create the right offer and
marketing approach for each target segment (Dilshan, 2021). The target market is a person who
wants to have very fine furniture with the latest in technology, combined with an old-fashioned
sense of fine woods and fine woodworking. This person can be in the corporate towers, small or
medium business, or NGO or Embassy. The common bond is the appreciation of quality, and the
lack of price constraints.

Classic Office Furniture gives the discriminating personal computer user, who cares about
design, quality furniture, and quality of working environment, a combination of the highest
quality furniture and an integration of the latest technology, at a relatively high price. Classic
Office Furniture provides this discriminating customer with more than a piece of furniture. It
provides a quality working environment that includes the integration of technological
components that generally exist as part of the executive setting. The quality of manufacturing,
materials, and ergonomics found in Classic Office Furniture products serves to enhance the
appearance of an executive's office atmosphere, in turn adding to their status and effectiveness as
a decision maker, innovator, and leader.

Classic Office Furniture understands that its target market needs more than just office furniture.
This need grew out of the special requirements of personal computing, when combined with
14
office furniture -- keyboards at correct height, monitors at correct height, proper channels for
cables, and other amenities. The company target customer wants to have all of that, plus fine
furniture. There is a need for quality wood and workmanship throughout. Classic Office
Furniture don't just sell office furniture, it sells design, workmanship, fine materials, and a total-
quality office environment.

2.5.2. Positioning Strategy

A positioning strategy is when a company chooses one or two important key areas to concentrate
on and excels in those areas. A firm's positioning strategy focuses on how it will compete in the
market (Lee, et al., 2006). The competitive edge of Classic Office Furniture is its dominance of
high-technology ergonomics and traditional high-quality furniture workmanship. Classic focus
on a special kind of customer, the person who wants very high-quality office furniture
customized to work beautifully with modern technology including personal computers, scanners,
Internet connections, and other high-tech items. Its customer might be in larger corporations,
small or medium business, embassy, or NGO. What is important to the customer is elegance, fine
workmanship, ease of use, ergonomics, and practicality.

The product strategy is also based on quality, in this case the intersection of technical
understanding with very high-quality woodworking and professional materials, and
workmanship. An important competitive edge is its assembly strategy, which is based on
interlocking wood pieces of such high quality that assembly is not only a pleasure for the
customers; it is actually a feature that enhances the sense of quality.

2.6. Marketing Mix Analysis

The Classic Office Furniture Company develops a marketing plan to achieve its desired results
within the market that it serves. The marketing plan of Classic Office Furniture depends mainly
on the product and product marketing, but it is also leveraging a lot more in its presence in
channels than on its direct national branding. The channels are the key to its growth and its
prospects for additional growth. An analysis of the various elements of the marketing mix and
recommended strategies among each for are as follows:

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2.6.1. Product

Classic Office Furniture product marketing has to emphasize the benefits of its unique
combination of technological expertise, ergonomics, and fine furniture craftsmanship. It needs to
sell pride of ownership and workmanship, and prestige. As such Classic Office Furniture: -
 Sells products that are highly differentiated, with various features offered to customers
those competitors don’t offer. Its products are therefore considered to be unique.
 Its products are perceived to be of higher quality than that of competitors. Therefore,
customers are willing to pay a higher price for these.

 Sells products that are famous for its traditional design that is also practical for customers
to use.

2.6.2. Price

In the high-end specialty market, particularly in Classic’s niche, features are very important.
Classic’s target customer is not making selections based on price. The ergonomics, design,
accommodation of the computer features within the high-quality feel of good wood, is much
more important than mere price. Hence, Classic Office Furniture sells its products at a higher
price than competitors. This is because it offers more features, and the high price makes up for
these.

2.6.3. Promotion

Classic Office Furniture promotion strategy is based mainly on making the right information
available to the right target customer. Classic Office Furniture promotion strategy is based on the
principle that those who have the budget and appreciate the product know that it exists, and
know where to find it. The marketing has to convey the sense of quality in every picture, every
promotion, and every publication. The Classic Office Furniture can't afford to appear in second-
16
rate catalogs with poor illustrations that make the product look less than it is. It also needs to
leverage its presence using high-quality catalogs and specialty distributors.

2.6.4.Place

Classic Office Furniture will apply the marketing strategy that assumes the need to go into
specialty channels to address its target customer's needs. In addition, it will use high-end quality
catalogs, because such catalogs cater to our kind of customers. The company positions its
products as the highest quality, highest price offering in any channel mix. By including its
products in these high-end catalogs, the company could able to successfully target the specific
niche that was its marketing milestone.

In the high-end specialty market, particularly in Classic’s niche, features are very important.
Classic’s target customer is not making selections based on price. The ergonomics, design,
accommodation of the computer features within the high-quality feel of good wood, is much
more important than mere price. The company is also seeing that assembly is critical to shipping
and packing, but its customer doesn't accept any assembly problems. Hence, the company need
to make sure that the piece comes together almost like magic, and as it does; it presents a greater
feel of quality than if it hadn't required assembly at all.

Classic’s distribution strategy focuses first on maintaining the identity with the high-end buyer
who appreciates the best available quality, but is also very demanding regarding computer
systems and technology. The company has been able to find these customers and sells its
products through the following marketing channels.
 The first is where it sells directly to its customer through its online website. The company
will open up its shop on social media as well, where it would sell its products on these
platforms along with social media posts. This will allow the company to generate more
sales. Its online shop and social media pages should be integrated in order to provide easy
navigation to its users.

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  The second is where it sells its products using a combination of direct mail catalogs and
direct sales to distributors. In coming years in the future the company will focus on
growing presence in the high-end direct mail catalog that finds its specialty customer. It
will work with various printing companies, and it will on to gain position in the major
airline catalogs as well.
 Last but not least, the company will also gradually applies specialty retail is a new
channel that could become important in the coming future. The company will plan to
make strong relationship with distributors selling directly to larger corporations, even
though this takes working capital to support receivables.

2.6.5. Service

The service aspect of Classic's marketing mix is limited in traditional terms. That is, due to our
high degree of quality in manufacturing and assembly, its product lines do not require continued
maintenance or service. However, the company considers that its customer service to be key for
the retention of customers. Classic Office Furniture import and manufactures many accessories
in addition to its main, executive desk lines. As a result, it offers a fully integrated office
environment, including peripherals such as lamps, cabinets, tables, and chairs. Therefore, a
Classic Office Furniture customer is not considered to be a one-time buyer. The establishment of
a quality office environment can be an on-going process. Classic Office Furniture will continue
to offer additional pieces to its customers, targeting them based on their previous purchases.

3. Conclusion and Recommendation

The report evaluates the marketing plan for private limited company in Addis Ababa named
Classic Office Furniture. A marketing plan is the advertising strategy that a business will
implement to sell its product or service. The marketing plan will help determine who the target
market is, how best to reach them, at what price point the product or service should be sold, and
how the company will measure its efforts. The company creates high-end contemporary office
furniture that adds value and elegance to the workplace.

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Classic Office Furniture's marketing approach is primarily focused on product marketing, but it
also places a greater emphasis on its presence through channels than on direct national branding.
The benefits of its unique combination of technological competence, ergonomics, and fine
furniture craftsmanship must be emphasized in its product marketing. Classic Office Furniture's
marketing strategy is built on the idea that people with the means and appreciation for the
product are aware of its existence and know where to obtain it. The company will employ a
marketing approach that considers the necessity to enter specialist channels in order to meet the
needs of its target client. The company's marketing plan has three major marketing objectives: (i)
increase the company's current market share rate to 7%; (ii) boost the company's profitability
(net income) by at least 10% per year; and (iii) improve brand recognition and visibility. Each
goal has three precise objectives with measurable outcomes, a time range, and a responsible
unit/person. To attain the aforementioned goals, the organization must put in a lot of effort.

Various lessons are learned from the evaluation of marketing plan of Classic Office Furniture.
From evaluation we take an important lesson that marketing plans are important tools because it
acts as roadmaps for everyone involved in an enterprise. Writing and evaluating a marketing plan
forces company to specify goals and develop strategies to reach them, and encourages business
to research markets and competition. A strong marketing plan will encourage entrepreneurs to
think deeply about their business and profit potential, helping them make better business and
marketing decisions. Additionally, a marketing plan can create greater involvement and
cohesiveness among employees by clarifying goals and expectations.

The furniture marketing strategy matters lots. The furniture market is evolving as demographics
shift and consumers’ buying habits change. No furniture seller can afford to have a poor
marketing strategy. Having great products and stellar service isn’t enough to compete. The
company need to be top of mind at the right time and provide a buying experience that compels
shoppers to complete the sale. Having a comprehensive strategy for the furniture business will
help company determine who the ideal customers are, how to provide the experiences they crave
where they crave them, how to cultivate relationships that lead to long-term customer
engagement, and how to do all of the above while managing the business.

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As recommendation, there are some important tips for building effective marketing plan and
strategy so as to increase sales & revenue for the Classic Office Furniture. It important the
marketing staffs of Classic Office Furniture to consider that building a successful furniture
business demands more than just creating beautiful furniture. Most buyers see furniture as a
long-term relationship, which means the products need to be in front of the right people at the
right time and they need to make a positive, lasting impression. That doesn’t happen by accident.
A furniture marketing strategy is the blueprint to making potential customers think of the brand
when they’re ready to make the commitment.

Classic Office Furniture should create furniture experiences, not just products. It requires to
build a strong brand identity that makes the furniture—and the spaces they create—easy to
remember. To really make a stand-out impression, use augmented reality, and virtual reality tools
to help prospective customers get up close and personal with the products. Today’s consumers
want much more from the brands they choose to do business with aside from good products at
good prices. They also want an engaging experience, and the way many of them achieve this
goal is via social media platforms. Posting high-quality images and shareable videos with short
lead-in times increases engagement and also enables company reach to spread faster and further
throughout the target demographic. Leveraging social media channels as part of the marketing
strategy is also important.

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