Marketing Analysis of GOD Essay Example for Free

Marketing Analysis of theology EssayCompany Description matinee idol is now a fast-growing piece of article of furniture and furnishings club snitch in Hong Kong. They describe them as More Than Just a Furniture Store. beau ideal is the phonetic sound of the Cantonese slang to live better which a basic forgiving desire all around the world. The founder of god Douglas Young and Benjamin Lau opened the first GOD introduce at Ap Lei Chau in 1996. Within 2 years, two more shops opened in Central and Tsim Sha Tsui respectively. In 2001, GOD has opened a 20,000 sq. ft. flagship store in Causeway Bay.The mission of GOD has always been to define a new Hong Kong identity by exploring age-old eastern traditions and updating them with modern font consumers in mind, their demonstrations of the techniques and wisdom of past generations in the east still has a place in the futurity world.Most of the furniture of GOD is made in China to their stringent take overards of quality and workmanship. Their products range from furniture, bathw be, kitchenw ar to correct lighting and carpets. Among these various products, furniture occupies the highest proportion of sales revenues.What makes GOD different from different convectional furniture and furnishing phoner is that all of their furniture is designed by topical anaesthetic anesthetic designers. The association is plasteredly against todays mass buzz offd and soulless products. The principal(prenominal) theme of their furniture is creative, comfort equal, and multifunctional. In dedicate to surprise their customers, GOD constantly turns out new items on a weekly basis. Because the securities industrying strategy in GOD is so clear that make the company become one of the few furniture companies that can still make a profit, and even overstate their business, in the time of economy d proclaimturn in HK these years.Situation Analysis 1. SWOT AnalysisInternally, GOD has a management team with designing k nowledge which could perfectly apply to the daily management in the company. Small size of management team also benefits the company with the efficient division oflabor. Despite the point of having numerous competitors with lower-rankinger price, G.O.D. is still taking the leading role in the diligence with its unique offerings of the oriental tradition Asian design in products, as well as the extraordinary decoration in each branch . G.OD is expanding its market sh atomic lean 18 by connecting to other different industries, so as to sop up more customers from different aspects. The diversification of production and also the custom made strategy contri stille to the company as it prevent excess inventory. Moreover, its own RD team takes a big responsibility in fulfilling the request of the customers in having a better quality.Other than all those favorable circumstances, G.OD is still encountering certain weaknesses. Due to the mindless story of establishment, G.O.D. is lack of experience and specialization. Its relatively high price and narrow choice of products has also prevented the berate and purchase of customers. Also, due to the limited capital inflow in the company, GOD is still not able to develop a large RD team it also regards advertisement as a big hinderance for the company. Regardless of the success of the manufacturing approach, it, on the other hand, has lead to the high cost of production as it could not achieve the economy of scale.Favorable immaterial factors include the increasing upscale market which citizenry are more concerned roughly quality of life, there are only few and not well-established local anesthetic competitors, and as the economic is recovering, there are more opportunities. Ergonomics is one of the most popular topics in furniture industry because the customers perceived value can be raised by introducing it.Unfavorable external factors include the taste of customers which people like international culture more , like Japan. In addition, the favorable investment funds condition attracts competitor from foreign countries.2. Industry analysisThe furniture and furnishing industry has a long history in Hong Kong. It includes the production of household, office and furniture, as well asbedding and parts of furniture. There are 249 furniture manufacturers in Hong Kong, employing more than 704 people as at Sep 2002. Around 90% of them are small companies engaging less than 10 people .Although it is not the major industry in the local market, the competition is very keen. In terms of market segmentation, the current furniture industry in Hong Kong is largely divided into three principal(prenominal) categories high-end, middle-end and lower-end market.However, in the past, the craft-based, labor-intensive furniture industry was one of the oldest industries in Hong Kong. It was authentic to meet local demands. At that time, the furniture industry was dominated by a large number of small firms and could be divided into three major sectors, namely, wooden furniture, rattan furniture and metal furniture .After the economic crisis in 1998, many small companies went bankrupt and customers incentive on buying furniture was lower. To maintain their competitive power, many large companies strive to reduce their costs and increase their efficiency. Some relocate their manufacturing operations to other areas with lower operation costs like Mainland China. Foreign manufacturers are taking locomote to strengthen their domestic production through production specialization. Hong Kongs furniture makers also start to establish their own brands and some concept stores in order to develop their unique product lines to differentiate their firms from the others. Companies like GOD and Franc Franc are the most apparent examples which produce products with Hong Kong local characteristics and Japanese culture respectively.Recently, due to the economic convalescence and the change of customer tr end, people are going to be responsive to the new trends and design of furniture. Thus, the industry is going to produce products to cater the needs of Hong Kong people. Also, many furniture manufacturers become more careful about the choice of raw materials to meet international standards, such as compliance with legal or other environmental requirements in their target markets.Because of the limited living space in Hong Kong, the industry produces the furniture which is highly practical and multi- functional. Moreover, most of them embrace innovative designs and combinations of furnishings which allow them to save home spaces and add a scent out of tendency and modernism.To cater the growing trend and design of furniture which correspond to their taste and lifestyle, the industry produces DIY furniture which can let consumers to make their unique furniture with their own styles. Moreover, most of them are made of the environmental friendly materials for production.3. Competitor AnalysisCompetitors in relevant marketThere are three main competitors of GOD in Hong Kong, accordingly Franc Franc, IKEA and PRICERITE. Their target market segments do not necessarily the same but do have some overlapping as they both target on the market segments of middle-income aim families. Further, the mission of their competitors also stress on developing a new concept of life style to Hong Kong people.Franc Francs company would invest over 30 million dollars in Hong Kong and expect there will be 36 million HK dollars gross profit in the first year. There will also be 2 or 3 new branches opened in the next few years. They will be in the main located in some big shopping malls.IKEA have 4 branches in Hong Kong mainly located near big housing town. IKEA is the most well known furniture company in Hong Kong due to the massive advertising programs. The concepts of their design are simple, multi-functional and sustainable. They also have a successful and well- essential custome r service system which helps them to develop the loyalty of their customers.PRICERITEs target group mainly focuses on lower income families. Theyprovide a relatively low price to their customers, thus helping them to develop a low cost, soft and multifunctional living environment. They have over 45 branches in Hong Kong so as consumers can easily examine a PRICERITE nearby.Comparative advantages1. GODUniqueness of local cultureIn these years, many industries especially those expose frequently to modern people like filmdom and musical industry, advocate local original design and innovation. This atmosphere makes young people create a good feeling to Hong Kong local products. Today, GOD is the unique furniture store with strong Hong Kong concept. What Hong Kong concept here means is Hong Kongs own culture and social atmosphere. GOD is a local brand and all of their exclusive designers are local. GOD claims their products have soul because their products can turn out local peoples o pinion and attitude to lives. It can attract a group of Hong Kong new generation who like to base off their characters and tastes by their home furniture .2. Franc FrancAdhere to Japanese-styled goodsThe trend in Japan always is a bench mark for the young people in Hong Kong. It is because the young people in Hong Kong think Japanese always stand on the tips of the trend. Thus, most of them are adherent to Japanese-styled goods. Many Japanese brands like Fancl and Sanrio have successfully developed their business in Hong Kong. Their successes are also based on this reason. Franc Franc is the sole furniture concept store with Japanese style in Hong Kong. This make it exclusively enjoys the adherent from Hong Kong young people in this market .3. IKEACost LeadershipTo provide goods with high quality at relatively low prices, IKEA drives tough bargains with its suppliers in order to employ lowest cost suppliersof raw and semi-finished goods from all over the world. IKEA Also, their pro ducts developers seek out manufacturers who can produce in the most cost-effective way and designers always work with solutions that result in a low price. This cost-focused supply chain model results in getting the goods with cheapest price and good quality.