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Know your Customers in the Furniture Industry

Know your Customers in the Furniture Industry. Agenda Frost & Sullivan Background data on this research Results

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  • Slide 1
  • Know your Customers in the Furniture Industry
  • Slide 2
  • Agenda Frost & Sullivan Background data on this research Results
  • Slide 3
  • Frost & Sullivan Primary Research Market Reports Bespoke Consultancy Market ForecastsEnd-User Analysis
  • Slide 4
  • The European Wood Coatings Market Total market size: 1.25 billion 400,000 tonnes
  • Slide 5
  • Furniture Coatings: Options for Growth Markets New Existing Products NewExisting Market Penetration Market Development Product Development
  • Slide 6
  • How to Penetrate the Market: Find Out What End-Users Want 140 end-users interviewed Smallest customer uses approx. 1 tpa Largest customers purchased over 200 tpa Total annual consumption (for end-users) estimated at 5,500 ktpa
  • Slide 7
  • Structure of the Analysis The Purchasing Process Customer Needs Supplier Performance Market Positioning of the Leading Suppliers
  • Slide 8
  • Purchasing Process (1) "we currently meet every two months, as we are using new products; then when they are put in action, twice a year With e- mail there is no point in seeing each other all the time." How Often do End-Users See Their Suppliers?
  • Slide 9
  • Purchasing Process (2) Are They Happy with This? Generally satisfiedGenerally not satisfied
  • Slide 10
  • Purchasing Process (3) How Many Suppliers do They Use? "You should not put all your eggs in one basket. We have most of the big suppliers, their products are satisfactory but it's better to have several in case you can't get hold of something at a particular time, then you can contact one of your other suppliers."
  • Slide 11
  • Customer Needs: What are They? Product range is not so important considering the fact that we have more than one supplier and whenever one lacks a certain type of product, there is always one of the others that can usually provide us with it.
  • Slide 12
  • Customer Needs (2): Who Considers Technical Service Important? Generally speaking it's the after sales support that needs working on, for instance Milesi who want to mass produce and supply on a large scale but cannot supply you with a few litres.
  • Slide 13
  • Customer Needs (3): What are the Important Product Attributes?
  • Slide 14
  • Supplier Performance (1): Comparison of Customer Satisfaction
  • Slide 15
  • Supplier Performance (2) Where is Customer Service Lacking?
  • Slide 16
  • Market Positioning of the Leading Suppliers Do their customers have different needs from the overall market? Do their customers feel they are better in these areas than the overall market? Are customer needs and strengths in line with each other?
  • Slide 17
  • Market Positioning of Akzo Nobel In the past, it had occasionally occurred that there have been some technical misunderstandings on the hardness or flexibility of a paint [from Akzo], but any problem has always been solved co-operatively. NeedsPerformance Whole MarketAkzo Nobel Customers
  • Slide 18
  • Market Positioning of Arch Coatings NeedsPerformance Hickson are good because they always let me know what is happening. If Hickson puts the price up, as it fluctuates with oil prices a bit, they would notify me in writing which products are going up. Whole MarketArch Customers
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  • Market Positioning of Becker Acroma NeedsPerformance I use ICN who developed smaller quantity products for us. I have a good contact with them... I just give them a ring and they are able to come rapidly, which is fantastic, really good service. It would be good if Beckers [themselves] could be as proactive. Whole MarketBecker Acroma Customers
  • Slide 20
  • Market Positioning of IVM NeedsPerformance I shook [another supplier] up about it last week, and this morning again, and waved Milesi in their face. I am using the Milesi water-based tints and they are performing. Whole MarketIVM Customers
  • Slide 21
  • Know your Customers in the Furniture Industry None of the four biggest suppliers is the same, either in the needs of their customers or in the areas in which they perform well. In an industry where consolidation has been the over-riding focus of attention in recent times, it is apparent that there is still genuine choice in the market.