STRATEGIC MARKETING MANAGEMENT

Strategic Marketing Management

Strategic Marketing Management

Company Description:

KMFS is now a fast-growing furniture and furnishings company brand in Hong Kong. They describe them as "More Than Just a Furniture Store". KMFS is the phonetic sound of the Cantonese slang "to live better" which a basic human desire all around the world. The founder of KMFS - Douglas Young and Benjamin Lau opened the first KMFS store at Ap Lei Chau in 1996. Within 2 years, two more shops opened in Central and Tsim Sha Tsui respectively. In 2001, KMFS has opened a 20,000 sq.ft. flagship store in Causeway Bay.

The mission of KMFS has always been "to define a new Hong Kong identity" - by exploring age-old oriental traditions and updating them with modern consumers in mind, their demonstrations of the techniques and wisdom of past generations in the east still has a place in the future world.

Most of the furniture of KMFS is made in China to their stringent standards of quality and workmanship. Their products range from furniture, bathware, kitchenware to even lighting and carpets. Among these various products, furniture occupies the highest proportion of sales revenues.

What makes KMFS different from other convectional furniture and furnishing company is that all of their furniture is designed by local designers. The company is strongly against today's mass produced and soulless products. The main theme of their furniture is creative, comfortable, and multifunctional. In order to surprise their customers, KMFS constantly turns out new items on a weekly basis. Because the marketing strategy in KMFS is so clear that make the company become one of the few furniture companies that can still make a profit, and even expand their business, in the time of economy downturn in HK these years.

Situation Analysis:

1. SWOT Analysis:

Internally, KMFS has a management team with designing knowledge which could perfectly apply to the daily management in the company. Small size of management team also benefits the company with the efficient division of labor. Despite the fact of having numerous competitors with lower price, G.O.D. is still taking the leading role in the industry 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 share by connecting to other different industries, so as to attract more customers from different aspects. The diversification of production and also the "custom made" strategy contribute to the company as it prevent excess inventory. Moreover, its own R&D team takes a big responsibility in fulfilling the demand of the customers in having a better quality.

Other than all those favorable circumstances, G.OD is still encountering certain weaknesses. Due to the short history of establishment, G.O.D. is lack of experience and specialization. Its relatively high price and narrow choice of products has also prevented the visit and purchase of customers. Also, due to the limited capital inflow in the company, KMFS is still not able to develop a large R&D team; it also regards advertisement as a big burden ...