NM FURNITURES

Strategic Marketing
Management

Submitted to

Sir Imran Qurashi

MBA 1.5

2014
Submitted by:
Zaighum Abbas
Munib Azam
Zahid Khan Afridi

I N T E R N ATI O N A L I S L A M I C U N I V E R S I T Y I S L A M A B A D

History of N.M Furnishers

The company began with the humble roots of furniture and wood in 1977 and has been a
successful name in the domestic market ever since. N.M. is the largest single floor showroom of
Pakistan.
Company has a well managed production line comprising dedicated staff, skilled labor, the most
modern machinery and a stock of quality seasoned wood.
N.M Furnitures started themselves in 1977 by late Sufi Nazar Muhammad as a small furniture
manufacturing company with a small factory and only one display center at Sargodha road
Gujrat.
In 1992 Mr. Abid Farooq the present CEO of N.M Furnitures took control of the business.
N.M Furnitures opened its first modern display center with their new factory where they
introduced latest machinery, techniques and modern seasoning plant. This display center was
opened on G.T Road Gujrat.
In 1999 N.M Furnitures started exports to UK, USA and Middle East.
In 2007 a new factory for Plywood and Veneer Board was opened.
In 2011 N.M Furnitures have launched the European Spring Mattresses under the name of Euro
Mattresses.
N.M. Furnitures have built the new display in Dubai, early of 2013, under the title of
N.M. International Furnishers Dubai.
In 2014-02-22 N.M Furnitures Celebrating 37 years of excellence.
They buy material for their products from gujrat because it incurred low transportation cost.

Mission
Just trust our services. We surely Make your home special

Products and Services

N.M furnisher is one of the most prominent names in the furniture industry of Pakistan. The
products and services N.M Furnitures Provide are as follows

CAD design drawings, specifications

and finishing schedules.

Professional advice on the latest

design trends.
Special layouts
Color selection: interior wall
painting and color schemes regarding
curtains and upholstery of furniture

by interior designers.
Furniture packages: Contemporary

Soft furnishings, textures and

upholstery
Furniture home delivery
Flooring
Wall treatments
Doors
Kitchens
Ceilings
Rugs
Lamps

Mirpur
Sialkot
Dubai International

and traditional customer design

furniture

Branches

Islamabad
Lahore
Gujrat
Karachi

Competitors
There are many competitors as all the companies which are into furniture manufacturing
business are creating competition but some of the most competitive companies are:

National Furnishers
Chaudhary Sons
Wood Hive
Wood World
Ideas Furniture

Departments

Production Department
Human Resource Department
Sales Department
Architecture Department
Interior Designing Department
Upholstery Department

QUALITY
NM Furnitures excel in quality because of their modern purpose built factory which uses
industry standard procedures and processes. Their manufacturing processes are according to
relevant international standards and their sources of materials are from quality approved
suppliers. Some of these are key factors which make N.M Furnitures produce an excellent
quality product are as follows
Purchasing of wood

N.M Furnitures purchase is Sheesham wood which is also known as Taali. It is a common
concept that as old as the wood is the better it is so at the time of purchasing this is kept in mind.
Cutting
After acquiring of wood is done it is cut into large and wide planks than these wide planks are
kept in open air under sunlight to dry the moisture. This is done through specialized machines to
make sure that less wastage is done and quality is maintained.
Seasoning
After doing the above these planks go through the process of oiling and after doing that they are
again kept in sunlight. The only reason do this is to make wood lighter, stronger, and free of
termite to retain the best quality.
Molding
To preserve the quality there are specialized machines and specialized workers (architects and
designers) hired in this department. In this department the wood is molded as per the required
shape.
Assembling
In assembling department quality is maintained through the advance machinery which N.M
Furnitures have and because of the specialized workers which perform these duty. In assembling
department work is done according to the standardized measures so there is a less chance of error
and fault. All the parts are closely monitored to make sure that they are according to the design
and after that assembled products go through sanding to make the surface smoother.

Cushioning
There is a separate department for cushioning at N.M Furnitures and at this department quality
is specifically maintained as eminence quality cloths are purchased to preserve the superior
quality of the furniture.
Paint/Polish
High quality paints and lubricants are used to maintain the excellence of furniture. Factors like
thinner, drying and dust free location are kept in mind. After the product is delivered to the
customer N.M Furnitures send a carpenter with them to do the polish again at the actual location
so quality is maintained and customer get an excellent product.

Inventory Management

Inventory management is not very efficient over here as manufacturing is not only done on
customers demand. Their inventory system is managed as follows:
Raw Materials:
Raw material of N.M furnishers include majorly wood, paints, polishes, lubricant, nails, foams
and fabricated material. Raw materials are handled not very efficiently as wood remains almost
untapped for 1 and half years and then it comes into use but this is need of the business to
maintain excellent quality.
Work in Process:
Work in process depends upon the order placed by customer but minimum time they give to any
customer is two and half months. Work in process is a crucial stage firm has to preserve the
quality and also has to make sure that process is going to according to the design.
Finished Goods:
As soon as Finished Goods are completed they are kept in display centers and store. The
company bears heavy prices in storing the finished goods as it needs a lot of care to handle and
preserve it so customer can get the right quality.

Layout Strategy

Cutti

Seasoni

Molding for
Sofas

Cushioning

Molding for
Beds

Leafing Carving
and

Molding for
chairs

Polish &

Molding for other

things

Pest analysis of NM Furniture

Political:
Administration faces lots of problem because of electricity issues in Pakistan.
N.M. Furniture is witnessing a continuous change in systems, management cultures and
philosophy due to the global alignment.
Corruption, political interference, lack of accountability, and patronclient forms of behavior
provides significant explanation of the poor state of governance in Pakistan.
Autocratic regimes have always been a threat to the industry.
Poor law and order situation is a serious threat for Pakistan industry.

Changing tax rates are also affecting business sector.

An import and export restriction is barrier for the development of business sectors.
Due to the rapid change in government every government sets its own trade policies.

Economical:
Inflation rate of Pakistan is 7.93 in 2014.
GDP per capita is $4,056 ranking 140th in the world.
Devaluation of rupee against dollar create problem in selling their products.
Decrease in the prices of products due to fluctuating currency rate which decreased the
profitability.
Any organization has a huge impact on every country economy.
Due to the terrorism problems investment opportunity also decreases due to this you cannot sell
your product in some areas like KPK.
Due to inflation in Pakistan buying power is going down, as N.M furniture caters high and
middle income people so they face little problem in this issue.
Due to lower purchasing every business sales goes down.
Due to the energy crisis Pakistan economy suffered a loss of 2 percent each year.
Sales for last 12 months
January2013
February 2013
March 2013
April 2013
May 2013
June 2013
July 2013
August 2013
September 2013
October 2013
November 2013
December 2013

Figures in rupees
12,212,315
10,313,204
9,253,145
13,145,873
12,243,852
10,249,879
11,542,789
8,589,999
11,458,369
10,781,432
11,987,412
9,987,546

The Company`s actual production on daily basis is 1 set of dowry approximately. The set of
dowry includes the following:

A bed with two side tables and a dressing table price is Rs 150,000
A dining table with six chairs price is Rs 140,000
A Sofa Set price is Rs 110,000
A 2 small tables price is Rs 34,600

Selling Price = 434,600

GST 17% = 73,100
Withholding tax = 17,500
Profit margin = 100,000
Total Cost = 244,000 which is actual cost.

Social:
Increase competition from other countries.
Higher prices are causing buyer extremely cautious in placing order.
Organization cultivate their own private trees instead of cutting private trees, this will save us
from social issues.
There is a trend of wood as well as rod iron furniture but for long time use people prefer to buy
wooden furniture.

Technological:
Latest and modern machinery technique can reduce the working hours and production cost.
N.M Furnitures purchases Sheesham wood which is also known as Taali form their local
market to reduce the cost of transportation and to provide better products to their customer.
Due to the innovation in technology businesses face problem sometime because their competitors
have latest technology which produce high quality products with low cost.

N.M. Furniture imports their machinery from Italy.

Latest machinery installed to increase the production capacity and reduces the production cost.
Due to globalization customers are much aware of products so to overcome this problem they
introduce online purchasing system.

BCG Matrix

Data collection:
Internet
Website
Friends

Sales:

Years

2011

2012

2013

N.M Furniture

40

55.3

65.7

Chaudhary Sons

30

27.3

35

National Furniture

29

32

37

Ideas Furniture

55

71

Growth for year 2011 to 2012:

N.M Furniture
Chaudhary Sons

38.25 %
-9 %

National Furniture

10.34 %

Ideas Furniture

29.09 %

Average market growth:

185.6 -154 * 100 = 20.52 %
154
Relative market share for year 2011 to 2012:
N.M Furniture

0.78

Chaudhary Sons

0.38

National Furniture

0.45

Ideas Furniture

1.28

Average relative market share:

0.78+0.38+0.45+1.28 = 0.72
4
Growth for year 2011 to 2013:
N.M Furniture

18.80 %

Chaudhary Sons

28.20 %

81.8

National Furniture

15.6 %

Ideas Furniture

15.21 %

Average market growth:

219.5 -185.6
185.6

* 100 = 18.26 %

Relative market share for year 2012 to 2013:

N.M Furniture

0.80

Chaudhary Sons

0.42

National Furniture

0.45

Ideas Furniture

1.24

Average relative market share:

0.80+0.42+0.45+1.24 = 0.73
4

Graph: 2011-2012

38.25%

29.09%

N.M

Ideas

20.52%

10.34%

National
Relative Market share

Market Growth

0
1.28

0.78

0.72

0.45

0.38

-9%

Ch Sons

N.M Furniture and Ideas furniture stand in stars has highest market growth and highest market
share as compare to others.
National furniture stand in Dogs because they have low sales as compare to others and low
market share.
Ch Sons Furniture stands in Dodos because they have no latest style of furniture as per customer
requirement.

Graph: 2012-2013

28.20%

Ch Sons

18.80%

N.M

18.26%
15.6%
15.21%

National
Ideas
Relative Market Share

Market Growth

0
1.24

0.80

0.73

0.45

0.42

In this graph only N.M Furniture stand in stars has highest market growth and highest market
share as compare to others.
Ch Sons stand in question mark (?) there market growth increases because they start dealing in
rod iron furniture to expand their product line.
Ideas furniture stand in Cash cows and generating more cash but have low market growth as
compare to N.M Furniture.
National furniture stands in Dogs because their sales goes down as compare to others, they need
to increase their product line or introduce new innovative design.

Swot Analysis

Strength

ISO 9001-2000:
N.M Furniture certified under ISO 9001-2000 and so it meets the requirement of international
standard and has a value in the mind of concerned people.
High quality product
N.M Furniture using advance technology like they have modern machinery by which the quality
of product produced is very high.
Qualified and skilled staff
The management of N.M Furniture is skilled they have hired professional CAD designers for
providing innovative design to their target customers.
Strong distribution network

They have their own cargo vehicle through which they can deliver their finished products at
customers door step.
Online order
They have a website in which you can easily order product which you want to purchase and after
1 to 2 month you can receive it at your door step.

Weaknesses

High cost of production

Production cost is high and resources are not properly utilized.
Less promotional activities
The advertising and promotional activities are low due to this small number of employee aware
about their products.
Lack of benefits and rewards for the employees
N.M Furniture doesn't provide medical, transportation allowance and other benefits to its
employees which results in lack of productivity of employees.

Opportunity

Entering into rod iron furniture

Currently N.M Furniture is not dealing in rod iron furniture so they have opportunity to
producing it.
Expanding internationally
They have opportunity to start their businesses in Asian market as they have also 1 franchise in
Dubai International.

Threats

Change in life style

Change in life style can change the taste of customers so N.M Furniture needs to produce
products according to market trend and customer need.
Switching of customers
Switching of customers from wood to fiber or road iron furniture can affect them.
Increase in petrol price
Increase in petrol price effect their transportation cost because they have their own transportation
van for delivering products.
Political instability
Political instability affects businesses which creates vulnerability.

SWOT Base Strategies

SO

ST

Strategies

Strategies

WO

WT

Strategies

Strategies

ST Strategies
N.M Furniture produces high quality products for their customers because their targeted
customers are high and middle income class. As our company has lots of investment so to avoid
threads our company needs to produce fiber and rod iron furniture because changes in life style
change the taste of customers.

Scorpio Technique

Customers
Our targeted customers are high and middle income class. Due to this strategy our customer
increases because we come up with a new product which is fiber and rod iron furniture it is less
expensive so everyone afford it easily.
Segmentation and Targeting
Yes our targeted customer also changes because of this strategy we target those customers who
prefer to buy fiber and rod iron furniture as compare to wood furniture.
Positioning
There is a strong image in our customer mind because our company produces high quality and
unique products for their customers.
Offering
N.M Furniture already offer cargo service at customer door step and free installation service for
their customers so I think there is no need of any new offer.
Industry and Market orientation
N.M Furniture is Market oriented because they produce unique products according to their
customer need and market trend.
Retention
N.M Furniture need to deal with their customer in good way to retain their new targeted
customers and give them free after sale services so they become loyal with them.
Organization process and culture

N.M Furniture should have and open culture for their management so that they can share their
ideas and they need to treat their employees as an asset so that their productivity increases.