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7DIRECTIONS FOR IMPROVING THE MARKETING STRATEGY IN THE FURNITURE INDUSTRY
Musayeva Shoira Azimovna
Professor of Samarkand Institute of Economic and Service, Samarkand, Uzbekistan https://doi.org/10.5281/zenodo.8020709
Abstract. This article analyzes the modern concept of strategic marketing and clarifies its content, determines the characteristics of the furniture market of the Republic of Uzbekistan, and analyzes the implementation of strategic marketing principles.
Keywords: enterprise, market, furniture, strategy, analysis, principle, experiences
INTRODUCTIONStrategic marketing can be understood not as a separate direction of marketing, but as the introduction of a new philosophy in market relations, because it allows the emergence of new solutions with its methods and mechanisms in the management of production, personnel, material resources, and communications. The global recognition of strategic marketing can be seen from the fact that every company has strategic plans, but no one can guarantee that they will meet the requirements in terms of content.
Strategic marketing is of great importance for the enterprises of the Republic of Uzbekistan in fulfilling the tasks of sharply increasing production, bringing labor productivity to the world level and increasing competitiveness. Therefore, it is a very important problem to carry out scientific research on strategy analysis and its improvement in specific enterprises and organizations.
Research methodology.Systematic approach, abstract-logical thinking, grouping, comparison, factor analysis, selective observation methods were used in the research process.
Analysis and results.To achieve this goal, the following goals and tasks are set:
- analyze the concept of modern strategic marketing and clarify its content;
- to study the contents of the scientific and methodological mechanisms used in strategic marketing and to determine their characteristics for the furniture market of the Republic of Uzbekistan;
- analyzing the implementation of strategic marketing principles in the organization;
- evaluation and development of the company's strategy based on the current situation;
- development of methodological suggestions for improvement of strategy development and implementation for enterprises and organizations.
- the main elements of strategic marketing are critically analyzed and their content is clarified;
Based on the foreign experience of modern furniture manufacturing enterprises, the following main marketing ideas of the furniture business developed by the companies can be cited:
1. Each furniture model should have its own name and distinct individual characteristics. This brings the furniture product closer to the customer and makes shopping easier and more fun;
2. Release of sites and blogs that enable the potential buyer to get acquainted with the product range in advance without leaving home and to order through mobile applications. This allows you to increase the audience of buyers almost infinitely;
3. The product is presented in the form of interiors, that is, the organization of exhibition halls, exhibition spaces in different regions of the city. It is also important to buy furniture
immediately and limit the time it takes to restore it at home. Such a marketing trick encourages the buyer not to buy only one piece of furniture, but to furnish the houses completely. In addition, discounts and bonuses are provided for first-time buyers;
4. In trading houses and company stores, the idea of feeding customers is widely used so that the feeling of hunger does not force the customer to leave the exhibition. During this time, it will be easy for buyers to consult with the right people by phone, to make a purchase decision by uploading pictures to the channel;
5. To develop a folding furniture design that is maximally compatible with the idea of reducing production costs and reducing product costs. Especially when cooperating with legal entities, this direction is promising in the complex equipment of offices or necessary rooms;
6. The idea of taking into account fashion and seasonality in furniture trade. Foreign experiences show that there is a great need for modern furniture in room interiors to meet the requirements of fashion for that time. The furniture has a service life of several decades, so the percentage of furniture changes is expected to be reduced as much as possible along with interior renovation. Designing and offering flexible furniture sets has a positive impact on increasing demand and customer loyalty.
The following four steps are used to develop and revise a marketing strategy:
Step 1. Analysis of the macro environment. Natural, demographic, political, economic and many other external factors greatly influence the development strategy of a furniture company. It depends on how the company will generate net income and which areas will be most profitable in the short and long term.
It is recommended to focus on the following:
The political situation in the world. Taking into account the globalization of the world furniture market, the enterprises of our country should carefully monitor the international situation. In recent years, it has become less and less stable, and in fact it depends on the flow of investments from foreign countries and the opening of markets for furniture of national manufacturers.
Legislative changes that may affect furniture production. For example, in 2020, due to COVID-19, the government introduced additional measures to support businesses: a moratorium on scheduled inspections of individual entrepreneurs and SMEs, compensation for the use of subsidies to business entities, preferential lending, etc. Even today, the legal climate of entrepreneurship creates favorable conditions for furniture companies. For example,of the President of the Republic of Uzbekistan dated 21.06.2021 "On measures aimed at the development of the furniture industry in the regions of the republic"PQ-5155 and 10.02.2023 "On additional measures to promote the production and export of furniture products"The decisions of PQ-51 give a great impetus to the development of the sector.
Rapid pace of new construction in Uzbekistan. The higher the sales of new apartments, schools, higher education institutions, kindergartens, medical organizations, the higher the furniture.
Launching of social sector facilities in the Republic of Uzbekistan in January-December 2022, a total of4,307.4 km ofwater networks, 37.5 km of gas networks, 6,145 polyclinics, 14,189,0 thousand square meters of residential buildings, 3,492 Hospitals with 42,716 seats, preschools
with 42,716 seats, schools with 166,571 student seats, and higher education institutions with 4,700 student seats were completed and commissioned. This shows the high demand for furniture.
Dynamics of real incomes of the population.According to preliminary data, as of January-December 2022, the total income of the population is 634.8 trillion. amounted to soum. As of January-December 2022, the total income per capita is 17.8 million. soums, the nominal growth rate of total income per capita was 119.8%. The average monthly nominal salary in the Republic of Uzbekistan was 3892.4 thousand soums.
All this together leads to the following conclusion: people need to furnish apartments with furniture, but they have low income, so furniture factories should focus on the production of economy-class furniture, reducing costs and increasing labor productivity. To expand production, you can borrow on preferential terms - no more than 14% per year.
Step 2. Competitors study.
Now the competition is intensifying not only in the furniture market, but also in the labor market and the market of material resources. Therefore, it is important to observe how competing furniture factories implement their strategies. It helps to create a competitive assortment, provide employees with the best conditions, develop an optimal price policy and optimize advertising.
The following main sources are used for the analysis:
• Official data of the statistical agency under the President of the Republic of Uzbekistan. You will see how much and what kind of furniture is produced in the market, how much the industry is growing or decreasing year by year, how many products are being exported and imported.
• Information about other furniture manufacturers. See what new collections they introduce, how they adjust prices, what spaces they occupy, what promotions they run.
Step 3. Internal strategic audit as a method of determining the strategy of a furniture company. The audit helps to identify the strengths and weaknesses of the production. According to our experience, every furniture factory has hidden stocks that are not used in any way. In some cases, we are talking about tens of millions. If you identify challenges, you can include problemsolving tasks in your strategy.
Furniture factories often lose money due to the following reasons: overproduction, overstocking, scrap and defects in furniture production, excess non-production (unnecessary) costs, excess transportation costs, unreasonable expectations of market trends, over-processing of the product, underutilization of employees.
Conducting a full assessment of the management system in the enterprise. It happens that rescheduling constantly leads to uneven loading of production, or staffing does not ensure efficient work of employees.
Step 4. Strategy redevelopment.
According to Ansoffs matrix, there are four strategies for enterprise development:
1. With old goods in the old market. In this case, the furniture factory should work on increasing the volume of sales - for example, now it sells for 10 million rubles a year and plans to sell for 15 million rubles a year.
2. With old goods in the new market. This strategy includes expansion of sales geography. Suppose the factory had dealers only in the Central and North-Western federal districts. And now he is adding work with dealers in the Southern and Volga regions to his strategy: he thinks about logistics, looks for contractors and studies the needs of buyers in these regions.
3. With new goods in the old market. The strategy includes the development of new collections and product improvement. For example, a factory that produces ordinary wardrobe furniture starts to produce "smart" furniture with a transformation function, built-in chargers and many adjustments.
4. With a new product in a new market. This approach implies diversification of production, which is not usual in the furniture market. Diversification is of two types. First, the factory uses the resources it has, for example, in addition to custom-made furniture, it begins to produce serial models. The second is that the company is changing its range, for example, after producing kitchens and evaluating the market, it decided to change its profile to a manufacturer of children's furniture.
Considering the SWOT analysis information, consider which domestic or foreign furniture company's development strategy will be most effective. Set specific goals, for example: increase furniture production by 50 percent in three years; expand the dealer network by 20% in the next two years; develop a new facade collection by next spring; Five companies will open stores in the region by next year, etc.
These ideas and foreign experiences create new opportunities for choosing a marketing strategy for the space, its goals, methods and tools.
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