Ekornes thesis

Abstract

The launch of the new product line, consisting of the Stressless Jazz and Blues has raised some questions concerning the distribution strategies and target customers for the new product line. The identified research objectives therefore consisted of analyzing the effectiveness of the current distribution system, and considering alternative distribution strategies. A part of this research consisted of identifying the customer segment actually purchasing the new products. A qualitative research approach is used, consisting of in‐depth interviews combined with a small scale customer survey. The data analysis performed is based on elements of Grounded Theory, used to categorize and develop core categories of the research findings. A marketing analysis was performed in order to conclude the dissertation objectives. The key findings in the analysis consisted of factors implying that the target customers of the Jazz consist of a younger segment, which do not necessarily buy furniture in the existing traditional system of Ekornes dealers. Following the marketing analysis, the customer segments and market position of the interviewed dealers were found to correspond more to the traditional Ekornes segments. There were also no apparent differences found between the best selling and the less successful dealers. The differences in the level of sales may therefore be assigned to differences in geographic, demographic and psychographic factors. Although the identified segment is reached to a certain extent, it is argued that the full potential of the segment is not effectively targeted. The current distribution system may therefore not be the best suited for the new product range. Alternative distribution strategies were considered. Based on the marketing analysis, strategic recommendations for the new product line consist of expanding the distribution system and reaching new segments, as a supplement to the existing distribution strategy.