Ekornes Marketing Strategy

Ekornes ASA

Central Marketing Dept. Central Customer Service

Ekornes Scandinavia AS

Ekornes Inc.

USA/Canada

Ekornes Möbelvertriebs GmbH Central Europe

Ekornes S.A.R.L Southern Europe

OY Ekornes AB Finland

Ekornes Ltd. UK / Ireland

Ekornes ASA Export

Ekornes Asia Pte. Ltd. Asia / Oceania

New Markets

Ekornes ASA Contract

Ekornes KK Japan

Stay AS

Ekornes Latin America Ltd. Brazil

Ekornes Pty. Ltd. Australia

Ekornes ® marketing strategy is deeply rooted in the company’s “Objectives and values”.

This ensures an optimal co-ordination between marketing strategy & marketing concept, production strategy, product development and other strategic important areas.

Marketing strategy

Production strategy

PD strategy

Co-ordinated strategy

Differentiation

Ekornes ® wishes to ensure sustained growth and profitability by differentiating from the rest of the trade

which to a large extent offers similar products – and thereby ends up competing on price.

Ekornes’ marketing strategy is based on an extensive ”total product concept” where several elements complement each other. 1.

Core product – chair, sofa or mattress.

2.

The physical product – all differentiating advantages included in the product.

3.

The extended total product – all surrounding elements as perceived by retailer or consumer.

The relationship with retailers is gradually developed into a partnership with mutual commitments and trust. This gives Ekornes priority and advantages in the shops, and increased profitability for the retailer.

Differentiating product advantages, Stressless® Focus on developing differentiating product advantages in order to stand out from an industry focused on price. There will always be customers willing to pay more, as long as they see that there is a good reason for the high price.

Stressless® Gliding system

Adjustable headrest

Stressless® Plus System

Stressless® sofa with possibility for personal combinations

360o swivel base

Stressless® Home Theatre

Additional products, Stressless®

Elevator ring

Stressless® table

Leather & fabric care Hard floor protector

Computer table

Differentiating product advantages, Svane®

Intelligel®

Washable cover

DuoSystem®

PluraSone ®

Consistent brand building, nationally as well as internationally. Ekornes® is the owner of the three best known brands in the Norwegian furniture industry. Stressless® is the best known furniture brand in Europe, and the knowledge is strongly increasing.

Stressless® is among the best known furniture brands worldwide. More than 65 million people know Stressless®.

Brand knowledge in comparison with sales (Sales 1998-2008 / order income 2009)

Germany

Switzerland

Austria

Ekornes® has developed a Communication Concept to ensure focus on brand building, brand knowledge, brand content, differentiating product advantages and uniform profile. Our Communication Concept includes, TV-advertising, catalogues, web, direct mail, press advertising & studio material etc.

The Ekornes ® Design Manual and Stressless® Communication Concept manual defines how communication should be developed in order to ensure a coherent communication and profile world wide.

USA

Our communication is well coordinated in order to give the same message in all markets.

Singapore France Germany Japan

Stressless® Studio

Svane® Studio

Ekornes ® focuses on product presentation and communication in the shops. This ensures that the communication of differentiating product features & benefits is communicated in the correct & best way to the end-user.

Focus on training and motivation of the shop assistants in order to ensure that the consumer gets a correct and thorough presentation of Stressless® when visiting a shop. More than 2500 persons go through the Ekornes School every year.

Measuring retailer’s profitability The Stressless® Studio should be the most profitable area for the retailer. Ekornes records and measures this in order to raise the retailers consciousness and to ensure further prioritising in the shop.

Ekornes has clearly defined consumer target groups in each market. Information about the target groups is used to optimise marketing locally, to develop communication and as input to product development. A: Sophisticated Singles • Young, Single • Living in flats • Well educated • Large cities • Expenditure on experiences rather than equipment

Each market researches information on their target groups to optimize local marketing expenditure, to develop communication and aid input in product development.

Ekornes has chosen a selective distribution strategy. Each retailer focuses on an exclusive sales area. This ensures the small number of quality retailers we supply, are given the incentive to invest & prioritise their local marketing expenditure in promoting Ekornes ®. Advanced computer programmes are used to calculate the geographic area for each retailer, as well as this area’s potential turnover.

Internet is used to guide the consumer through the different phases in the purchasing process, for instance by including the company’s history, illustrating the complete collection as well as visualizing the different colour combinations, and the option to order a catalogue and other services. The consumer is always referred to our retailers for testing and purchasing our products.

Competition The competition is fragmented and different from one market to the other. There is not one main competitor world-wide.

Active protection and follow-up of immaterial rights: • Patent and design rights • Over 300 trademark registrations in more than 40 countries • Over 300 domains