Adaptable Home Products Company (AHP) Background
AHP utilizes advanced technologies in order to provide comfort in ordinary home products. Such an approach might be characterized as modern and significant as it meets the requirement of the contemporary market.
The founders have a good reputation among investors, which serves as a foundation for the financing of various projects.
It should be noted that regional mechanical engineers install a product if necessary after it is delivered.
The company provides quality products, which allows it to aspire to expand its business to foreign markets.
Product line 1 includes the following: Furniture (push-button adjustable height
- armchairs,
- sofas,
- entertainment centers,
- kitchen tables that with a push of a button adjust height along with optional adjustable chairs.
Product Line 1 Overview
Product line 1 does not require complicated installation or delivery, which implies the minimization of issues in this regard. The company provides reasonable prices for Line 1. Line 1 has the fewest number of complaints.
- Armchairs are an essential element of convenience at home – given reasonable pricing and quality; it is not surprising that this product is relatively popular among consumers.
- Sofas seem to demonstrate a lack of interest in the market – the reason might be the absence of necessity to implement technology into this product.
- Entertainment centers are the most unpopular product in the line. A possible reason for this is that competitors possess a stronger brand and diversification within this product segment.
- Kitchen tables that with a push of a button adjust height have become popular due to the spread of smart-house technologies; their presence at kitchens notably accompanies such a trend.
- Product 1 – second popular product in the line.
- Product 2 – unpopular.
- Product 3 – unpopular.
- Product 4 – the most popular product in the line.
Product Line 1 Marketing Opportunities
Products 1 and 4 do not demonstrate any issues – their sales should be increased.
It is important to understand the core problems of Products 2 and 3 from the customers’ perspective.
Given the insignificant sale rates, it is critical to advance Products 2 and 3.
Unsaturated markets may be found even abroad – loyal investors will support such an idea.
Before launching an advertising campaign, it will be crucial to conduct market analysis and identify the main consumer needs and interests.
Armchairs and sofas may be easily provided as a set because usually, both of them are a part of an interior.
Product 3 may need some tricks to survive in a severe competition – season discounts might be among the best ones.
Available software that will make Product line 1 interact as a unified item will increase interest in all the included products.
Strategic cooperation – for instance, in the framework of Product 3 sales – will contribute to obtaining a partner’s experience and penetration into new market segments.
Customer Experience Evaluation
Almost half of the responders claimed that they either unsure or do not aim to buy other adaptable furniture or appliances from AHP. Such numbers indicate that some actions should be taken to retain consumers in the long run.
The survey showed that the customers would be interested most in the following products: adjustable side tables, a mixer that disappears into the adjustable height countertop, and triple monitors that plugin using one port. The inclusion of the mentioned items may improve the situation with a client’s interest in the firm’s products in the long term.
Social media have become a significant marketing power nowadays, and only four responders claimed that they get information regarding most companies’ new products from these social media – hence, the online presence is to be advanced.
The responders pick up mostly adaptability and quality regarding what they like most about AHP. These two aspects seem to be crucial objectives of the company, according to the executives.
Only three responders claimed that they do not consider the price-quality ratio reasonable.
The responders claimed that they had to call customer service to get clarification. Moreover, in optional comments, some of them directly stated that the catalog’s content needs to provide more information.
Significant satisfaction rates are founded on the company’s core objectives of quality and adaptability.
The retainment of actual customers and the catalog improvements will contribute to better performance as these are the critical issues now.
Marketing Opportunities for Improving Brand Loyalty
Professionals might be hired to develop Instagram, Facebook, and Twitter accounts, as well as to launch the related targeting campaign.
It is essential to make regular customers feel that they are being cared for and that cooperation with AHP in the long term bring nothing but benefits – loyalty programs are a key to this.
Provision of specific merch – like T-shirts with the brand printed – may improve the company’s recognizability; social media presence is a clue to this as well.
Reasonable price-reducing is a foundation for continuous demand.
Brand Personality of AHP According to Aaker
The company offers products that are to be applied at home to ensure maximum comfort, which justifies the family-orientated trait within the scope of the sincerity factor. AHP aspires to achieve its objectives of quality and comfort-provision at all levels, which makes it honest to consumers.
AHP makes an apparent emphasis on the technical elements of the products, and the significant technical background of the founders, executives, and staff at all makes the brand reliable.
Technical advancement of the regular products that do not usually possess such features makes the brand up-to-dated, and given the global shift to smart-house technologies, this brand is trendy as well.
AHP targets to satisfy an upper-class consumer because its products have relatively high – but still reasonable – prices. It should be admitted that the technological advancement of the regular surrounding is not the purpose of consumers who cannot afford abundance at the moment. Then, a good view is an integrated aspect of technologically advanced regular home products.
In the framework of ruggedness, it might be claimed that AHP firmly follows the Western trend of providing comfort in all spheres of life. Advancing regular home products seem to be the tendency of most developed Western countries.
Generally, AHP has developed a good brand identity, which is grounded on a particular combination of unique traits.
Influence on the Consumer Buying Decision
- Crucial socio-cultural factors are as follows: reference groups, families, roles, and statuses.
- Personal factors are a consumer’s age, occupation, lifestyle, and personality.
- Psychological factors are motivation, perceptions, attitude, and beliefs.
It should be noted that “by studying previous buying behavior, marketers can estimate how consumers might behave in the future when making purchasing decisions” (Kotler & Armstrong, 2010, p. 160; as cited in Lautiainen, 2015, p. 6). Hence, if applied appropriately, marketing may improve the company’s performance by exploring consumer buying behavior. In particular, AHP’s marketers might suggest that entertainment centers should be excluded from the firm’s offers, and adjustable side tables could be provided instead. Such a proposal is founded on the analysis of sales that are the materialization of consumer buying decisions.
Global Marketing Opportunities
The EU is characterized by significant purchasing power at all market segments, and AHP has the necessary resources to expand.
The expected annual growth of the furniture market in Europe is 3.7% (Statista, 2020a), which is substantially higher than within household appliances – 1.5% (Statista, 2020b). Thus, Product line 1 seems to be of increasing interest.
Europeans aspire to diversify their comfort zone, and advanced regular home products contribute to this, which is a notable competitive advantage.
AHP offers products of the highest quality, which is essential for the EU.
Competition in the market is severe, but there is no monopoly (Mordor Intelligence, 2020); hence, cooperation with some local small and medium-sized enterprises is another opportunity – important experience will be gained.
Global Marketing Opportunities (Strategic Aspect)
AHP aims to remain a small company but to enter the global market. To that end, in Europe, it is important to be represented not in megalopolises but in wealthy small and medium towns.
Given the lack of experience in the EU market and limited resources, intense competition is to be avoided at the initial stages of entry.
It will be important to promote AHP products without considerable expenses – a social-media presence might be a good option.
In order to lure new European customers, prices may be reduced initially so that their interest could be increased. In the future, they may be retained by loyalty programs.
References
- Lautiainen, T. (2015). Factors affecting consumers’ buying decision in the selection of a coffee brand (Publication No. 38124382) [Bachelor’s thesis; Saimaa University of Applied Sciences]. CORE.
- Mordor Intelligence. (2020). Europe furniture market – growth, trends and forecasts (2020–2025). Web.
- Statista. (2020a). Furniture – Europe. Web.
- Statista. (2020b). Household appliances – Europe. Web.