Problem Statement

 How and where to develop corporate marketing efforts among the various laminate
flooring markets served by the company in the Austria and Hungary
Industry Overview

 Industry sales in the Europe

2017 72 billion Boosted by new residential construction and
2025 76 billion home renovation projects

 Laminate Flooring Segment

① sales
West Europe -4.7% in 2017
East Europe +6.8% over the previous year but -2% in total

 Resilient continues to out pace other categories.

 Laminate flooring is a maturing market. Manufacturers reduce price in recent years,
which results in low margins.
② competition
Main producers: Haro, Hori, Tarkett, Bembe, Parador and Kaindl
Ways: under their own brand / private, controlled or store brand names
Industry Overview

 Laminate Flooring Segment

③ channel
spe
cial
ho ty
me sto
im res
pro 36
ve %
me
nt
cen
ter har
dw
s
50 are * Specialty stores and hardware stores in the
sto
%
res Hungarian market have outdistanced home
14
% improvement centers.

④ purchasing behavior
gov
ern
do-
me
it-
pro
nt,
you
fess
exp
rsel
ion
ort
fer
al
and
50
flo
con
% Retail outlet → style and color → brand
orer
trac
25
tor
%
sale
s
25
%
Egger Service Area

 Competition landscape
 Retail level: Obi and Hornbach outlets
 Manufacturing level: companies cut price aggressively to capture a higher percentage of
home construction market

 Austrian and Hungarian market overview

Non-contractor-related sales  Do-it-yourself household buyers account for 70% of

non-contractor-related volume in Austrian market and
H 90% in the Hungarian market.
un A
ga us
ria tri
n an
40 60
% %
 Exhibit 1
Consider both volume and growth
Egger

 Price: highest-priced laminate floorings

 Distribution: 200 independent stores and hardware stores (40% outlets in Austria)
Exhibit 2

70% of sales through Austrian dealers went to the professional

70% of sales through Hungarian outlets went to the DIY

 Promotional efforts
 Sales representatives
 Advertising and sales promotion efforts
 ……
Alternatives and Issues

Alternatives
Bolster Austrian do-it-yourself market
- An increase of 350000 in brand ads. with
emphasize on TV
Be competitive in diy market
- Cut prices by 20% on all products
Pursue current approach
- Guard our margins and control costs
Place more efforts on sales
- Employ one additional sales person who
focuses exclusively on developing new
accounts
Issues
- Austrian market is too narrow
- Increase in cost
- 75% of the audience is not buying laminate flooring
- Demand will not increase next year
- Costs are unlikely to decline
- Retail / professional
- Increase in cost

My thoughts
 Pay attention to the growth of Hungarian market and DIY customers. Maybe more retail accounts and
promotion there.
 DIY is important in Austria but also focus on more on professional customers according to the trend.
 Make adjustments on channel. Specialty stores and hardware stores are becoming more important.
 It is not a good idea to reduce price. Our positioning can keep premium, high quality, etc.