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- QUESTION
Inscape Furniture Case Assignment:
This assignment will be structured similar to how we conduct case studies in class. I suggest you take the following outline to your approach:
- Intro paragraph summarizing changes to the market and the major problem(s) the company faces (i.e. which segment to target and how to position for each segment
- Conduct the 3C’s – I would address this in sections with as much or little detail as necessary to provide support to your segment and positioning strategy you will propose later. I am not looking for a summary of the case information, but an integration of information that is relevant to choosing a segment. I encourage you to use the information to garner your own insights about the market, the company, and the customer.
- Outline and propose a positioning strategy for each of the two segments being considered. For each segment, discuss the strengths and weaknesses of going after this market with the positioning strategy you chose. For this case analysis, you should develop a complete positioning strategy for each segment with the pros and cons of targeting each segment, as well as address the questions I list below
- Choose which solution the company should take and defend your choice.
In addition to this outline, I will ask several questions below that you will need to answer somewhere in your write up. I will look for concise, detailed answers to these questions in addition to solid arguments backed up with evidence and strong rationales. You are welcome to use outside research such as information related to culture or industry.
Additional questions I would like you to address somewhere in your write up:
Customer portion of the 3C’s:
- What is the trickle-down-effect and how does it affect customer preferences?
- What are the cultural associations of furniture in Indian culture and why is the “drawing hall” or social room of upmost importance? Here don’t just reiterate what the case says, draw some of your inferences. Come up with multiple reasons why the drawing hall is the most important room in the house. Even poor people will sacrifice furniture in other rooms in order to have a lavish drawing hall.
- When analyzing the customer segments suggested and discussing who the customer is (part of the 3C’s), use the exhibits to generate a customer profile for each segment. That is, tell me what you think this segment’s 3 highest values/items of importance in order of rank (I.e. family, status, self-expression, etc) are in society, and what are 3 main concerns they have when buying furniture. You can use the exhibits, information provided in the text of the case, or your own research online. Just justify your answer. You will use these to justify your positioning strategy for these segments.
Competition:
- Who do think the competitors are targeting (unorganized and multi-national retailers)? Do they have a target segment at all and if so, what features are they using to attract their target market?
- What are the challenges Inscape will face in trying to compete with the unorganized furniture market in terms of getting attention? What about the organized furniture competitors (i.e. large multi-national retailers)? Consider the brand name and the store-front appeal shown in the exhibit.
Solutions:
- For each solution, answer these questions:
- Should Inscape continue to sell household furniture for the entire household or should it attempt to become a niche furniture retailer for only the drawing hall? Why or why not? What are the pros and cons of limiting the furniture offerings, especially considering the needs of the segment?
- What attributes of the company could Inscape highlight in advertisements to better attract this target segment? What core competencies (such as quality of furniture, using international manufacturers, etc) should Inscape leverage or develop further to strengthen their hold with this segment?
Recommended Case Analysis Outline:
- Introduction and problem analysis
- Company
- Competitor
- Customer
- Solution #1: Segment 1 with pros and cons
- Solution #2: Segment 2 with pros and cons
- Recommended Strategy to Inscape with justification for choice (alternatively you can discuss the pros and cons of Solutions 1 and 2 here as justification for your choice, but your choice should clearly be defended as the best strategy because of “xyz”).
Because this is a group project, you only need to write the red color part --- Solution #1: Segment 1 with pros and cons. Details of how to write this part is marked in red color.
Must read the article and PPT notes before start it!!!
| Subject | Business | Pages | 4 | Style | APA |
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Answer
Buyer Behaviour: Solution #1: Segment 1 with pros and cons
- Should Inscape continue to sell household furniture for the entire household or should it attempt to become a niche furniture retailer for only the drawing hall? Why or why not? What are the pros and cons of limiting the furniture offerings, especially considering the needs of the segment?
Depending on the case presented about Inscape, it is highly recommended that the company attempts to become a niche furniture retailer for only the drawing hall. Specifically speaking, the nature of the market and consumer behaviour that forms part of the retailing target for Inscape lays a perfect platform for such kind of niche segmentation. For instance, the industry is defined by stiff competition from multinationals that make it hard for Inscape to appear as a royalty to its target consumers. On the other side, there are a plethora of unorganized players that command a strong traditional hold on the market. It is imperative that Inscape sticks to one facet of the market, and makes a brand name out of it. Generally, there are a number of pros associated with niche marketing that Inscape can exploit to make its brand stronger, which are discussed below.
Pros
Niche marketing allows a business to keep a central focus on a particular market segment, thereby enhancing its productivity, output, and profit. Additionally, it is also considerably affordable, especially for start-ups or small business that do not have all the resources to conduct extensive marketing and targeting. Indeed, a marketing manager has the option of dedicating more funds towards those promotional schemes that promise better return on investment (ROI).
In spite of the popularity and the practical advantages that have been linked to niche marketing, it also has a number of pros. If it is implemented, it becomes hard for a company’s brand to be recognized faster to a submarine audience. For companies that would want to make their brands a household name like Inscape, this method would not be befitting, since rising to the top is hard with niche marketing. On a similar note, multinationals that rely on large sales volumes to make profits would find this form of marketing inappropriate.
The bottom line is that for Inscape, disregarding the cons and focussing on the pros of niche marketing would be strategic, owing to its small size and amount of revenue.
- What attributes of the company could Inscape highlight in advertisements to better attract this target segment? What core competencies (such as quality of furniture, using international manufacturers, etc) should Inscape leverage or develop further to strengthen their hold with this segment?
Inscape’s performance and approach to marketing has been commendable, choosing to offer its customers quality products from both local and international manufacturers. One of the attributes that it should make known to its target customers is its ken concern on cultural symbolism and significance of furniture, and its dedication to meet this demand. As has been noted in the case, India ascribes great cultural value to their drawing walls. As a core competency, the company should promote its store as one that promotes local manufacturers, who understand the culture and behaviours embodied in furniture. However, to the middle-class consumers who aspire and like changing tastes and styles, included a segment that is dictated to its international links in its promotional efforts can be a great play. As such, the quality of furniture must form a vital facet of its promotion, as the drawing hall is considered a significant part of the culture’s heritage.
References
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