Market research & analysis expanding kay bojesen's wood decoration brand market research and strategies for entering the vietnamese market

This Research aims to discover the factors that most influence the decision to buy products and the most effective ways to reach customers in the Hai Phong market to help develop this ne

VIETNAM MARITIME UNIVERSITY INTERNATIONAL SCHOOL OF EDUCATION

INTERNATIONA!

MARKET RESEARCH & ANALYSIS

Expanding Kay Bojesen's Wood Decoration Brand: Market Research and

Strategies for Entering the Vietnamese Market

Name: Vũ Dũng Nghĩa - ID: 94625

CHAPTER 3: THEORY AND HYPOTHESIS

3.1.1 Brief overview of the literature

4.6 Fieldwork - Data Collection

CHAPTER 5: ANALYSIS AND RECOMMENDATIONS

as a building material and is famous for its natural beauty, durability, and versatility

The industry is highly competitive, with many companies producing and selling wood products worldwide There is a growing trend towards sustainable and eco-friendly practices in the industry, with many companies investing in renewable energy sources, using recycled materials, and implementing environmentally responsible manufacturing processes

minimalism, natural textures, and a focus on sustainability being trendy in recent years However, traditional styles and craftsmanship remain highly valued in the industry, with a wide range of styles and aesthetics

In addition to traditional wood products like furniture and flooring, there is a growing market for decorative wood items, such as sculptures, carvings, and wall art This trend has been partly driven by the popularity of minimalist and Scandinavian design styles, which often incorporate natural materials and simple, understated forms

Doing that, our team will research and find a way to approach the Vietnamese market with Kay Bojesen products based on hypothesizing, analyzing, and evaluating the results From there, it is possible to develop suitable solutions for the company to approach the Vietnamese market in Hai Phong city

We collect the data through surveys of customers who want to buy wooden furniture

Goals: the company shall market and sell Kay Bojesen's brand in Vietnam (Hai Phong city)

Formulation

We will determine the consumer perception of Kay Bojesen wood decoration products & brands Throughout the Research, we discover the clients’ perceptions of outstanding characteristics among other brands Throughout the analyze consumer behavior in buying decorations, we want

to know that:

products because of the quality of the product or other elements

(2) Consumer behavior: how customers approach the products

Identification and interpretation

Kay Bojesen is a new decoration brand in the Vietnamese market that many Vietnamese still

need to learn about This Research aims to discover the factors that most influence the decision

to buy products and the most effective ways to reach customers in the Hai Phong market to help develop this new market

2.1.2 Market potential

According to statistics from the Vietnam Chamber of Commerce and Industry (VCCI), the average annual consumption of high-end furniture in the country reaches more than 2.5 billion USD Of these, 80% are products imported from European countries, and 20% are products from

of Denmark with strengths such as wood, renewable energy, interior decoration, etc

Vietnamese people, especially Hai Phong people, use various interior decoration products from wood The industry of manufacturing and importing all kinds of interior decoration from the wood of Hai Phong holds a great advantage Kien An District is one of the famous places to produce and sell wooden products in Hai Phong

Wood and furniture have become Vietnam's sixth largest commodity, accounting for 6% of the world market share According to the Import and Export Department of the Ministry of Industry and Trade of Vietnam, the value of the wood industry since July and early 2020 has increased to about $6.1 billion Thereby providing an opportunity for furniture manufacturers and other wooden products to improve their competitiveness and boost sales

2.1.3 Competitors

Kay bojesen's business will have to compete with three types of competitors (1) Competitors with the same product but cheaper than Blesiya, (2) domestic enterprises that have a good name and have higher prices maintain good quality and can choose materials for making wood, for example, The Crafthouse Vn (3) an international business that competes directly with Kay Bojesen as JYSK

Overview

One of the most significant and exciting aspects of marketing is marketing research To improve decision-making concerning the identification and resolution of issues and opportunities in marketing, it is the systematic and objective identification, gathering, analysis, dissemination,

and use of information

This procedure’s several stages are all crucial Marketing research aims to give management information that is current, pertinent, accurate, and reliable Because Kay Bojesen established it

as a thriving sector that would expand with the B2B and B2C economies, marketing research has changed

To analyze the data, we used the SPSS system A commonly used statistical application in social

science is called SPSS

Summary

This study aims to see if Kay Bojesen's products can reach Vietnamese people, especially Hai Phong people, and whether they are suitable for the cultural tastes of Vietnamese people We use primary analysis Primary data provides essential information about consumer behavior, purchasing power/buying behavior, habits, income, demand in the market, segmentation, competing products - market positions, and how to apply the marketing mix through surveys When additional information is added to the analysis, they complement the primary data to be

The study aims to analyze the habits and influencing factors surrounding wooden furniture buyers in Hai Phong through exploratory Research We used Quantitative Research through the Postal Survey and Qualitative Research through Focus Group Interviews Through SPSS software, we analyzed and tested the hypotheses Research on factors related to buying decisions

of Hai Phong people, with scarcity, age, income, materials, feng shui, price, and reliability identified as influencing factors To purchase frequency and future purchase decisions of

customers

4.1.3 Conclusive research

This article discusses a research study conducted using SPSS to identify the factors influencing people's purchasing decisions The study aimed to determine which factors have the most significant impact on purchasing decisions and identify the most popular place and method for buying decorations The article concludes that businesses should focus on the most important factors to customers and use the most popular ways to reach new customers to save money and avoid wasting resources on less critical factors in Hai Phong

4.2 Research techniques

Mixed Methods research involves utilizing a combination of survey and focus group methods to obtain a comprehensive understanding of a target audience’s behaviors and preferences Surveys allow researchers to collect data on cultural backgrounds, purchasing habits, preferences, and market segmentation Alternatively, focus groups allow for a more detailed exploration of participants’ opinions on specific topics, generating new ideas Integrating these techniques enables researchers to develop precise and successful marketing strategies, targeting specific demographics and expanding into new markets Finally, this approach facilitates the identification of new channels to connect with prospective customers and innovative ideas to enhance marketing strategies

4.3 Measure

Most questions in the postal survey are categorized into three scales: Nominal, Ordinal, and Interval These scales provide clear and precise measurements Nominal scales are used to determine the frequency of responses by assigning numbers to answer options (such as gender) Ordinal scales code answers and allow for rating levels (such as age and income) Interval scales measure customer interest in specific factors and prioritize the most important factors when purchasing wooden decorations (using a scale from 1 to 5 to indicate the level of interest) 4.4 Questionnaire

The postal survey offers a simple way to gather data on the number of respondents and their

survey consists of 20 closed-choice questions that prompt customers to select from various options

After collecting survey results and conducting focus group interviews, more in-depth questions will be asked to understand better customers’ habits and preferences, as well as their needs and wants regarding interior decoration products Audio recorders will be used during focus group interviews to gather new ideas to record data for analysis purposes The questions in the survey are arranged in a logical sequence to elicit participants’ opinions and serve the research objectives They are placed from easy to difficult, with initial questions focused on customers’ decoration buying behavior The central questions will explore participants’ opinions on factors influencing decorative buying behavior and how customers buy decorations The last three questions will collect demographic information such as gender, age, and income of the participants.*Appendix 3

Judgmental Sampling: researchers evaluate the responses of the 100 participants and select six people based on specific criteria such as having an interest in wooden decorations, the potential demand for such items in the future, an income of at least 10 million VND, and willingness to buy high-end decorations Designer Kay Bojesen's products are priced higher in Vietnam than

similar items

4.6 Fieldwork - Data Collection

A questionnaire was administered to 100 people at the Baya-AEON store, and six individuals interested in purchasing furniture were interviewed in more detail The information gathered will

be digitized and analyzed using SPSS Of the 100 responses, 62 were female and male, and the

million VND per month made up 48% of the total respondents Customers aged 41-50 (36%) were also identified as a potential customer group Customers under 20 comprised only 4% of the respondents, and those earning an income were only 20%*Appendix1

CHAPTER 5: ANALYSIS AND RECOMMENDATIONS

5.1 Analysis

5.1.1 Demographic factors impact the purchase decision of customers

The data presented in the table depicts the age, gender, and personal income of customers

when purchasing furniture The data reveals that the most significant factor influencing

customers' purchasing decisions is their income, with a strong correlation of up to 632 Age also plays a role in customers’ purchasing decisions, with a correlation of up to 493 On the other hand, gender does not significantly impact customers' purchasing decisions, as the

significance level of gender is more significant than 0.05 and, therefore, not eligible for

Correlation

5.1.2 Product factors

SPSS indicates the product factors that impact customers’ purchasing decisions for decorative furniture in Hai Phong The study results show that marketing methods and brand image are not significant factors affecting customers’ decisions to purchase furniture products Instead,

scarcity, feng shui, materials, and reliability influence customers! purchasing decisions The

material factor has the most significant impact (Pearson Correlation = 0.334**), while the price factor has the most negligible impact (Pearson Correlation = 0.237*).5.1.3 Place factor

In terms of the "Place Factor,” the majority of people in Hai Phong have a tendency to rely on and opt for trustworthy furniture stores when buying wooden decorations, with a percentage of 68% (Table 7)

To further elaborate, when asked whether they would consider purchasing a decorative item from a reputable furniture store they typically frequent, most customers responded with the

highest level on the Likert scale, with a percentage of 52% The second highest choice was

level 4, with a percentage of 24% (Table 8) This data suggests that physical stores have a

significant impact on customers' purchasing choices

5.1.4 In-depth answers about wooden decorations

Vietnamese customers commonly purchase wooden decorations for special occasions, such as new home constructions, grand openings, or simply for aesthetic or inspirational purposes They tend to favor designs that highlight feng shui principles The Vietnamese appreciate wooden ornaments' timeless and opulent aesthetic and durability Quality and style are important

considerations when selecting decorations However, due to the humid climate of Vietnam,

customers also prioritize the preservation of wooden furniture, which may affect their decision to purchase Kay Bojesen furniture in the future On the other hand, some customers find the

Danish brand's unique design exciting and are willing to spend money on it.*Appendix2

5.2 Recommendations

Kay Bojesen company should prioritize enhancing the quality of their products instead of

allocating significant resources towards marketing and branding expenses to cater to

in Hai Phong It would be advantageous for the company to establish a prominent and well- regarded furniture store, which would serve as the most effective channel for reaching customers due to its prestige and familiarity Furthermore, individuals who are interested in decorative furniture typically belong to the high-income bracket and are between 30-50 years of age, so the company can collaborate with established wooden furniture stores in Hai Phong, such as Baya Aeon Mall, to focus on distribution and even consider setting up an e-commerce platform in Vietnam with a minimal investment to reduce costs To address concerns about furniture maintenance, Kay Bojesen should consider providing a care instruction manual or including a pamphlet with the product that explains how to care for it properly

Conclusion

We have proven that hypotheses Hla and H1b are correct Kay Bojesen, a Danish company specializing in wooden decorations, possesses promising potential in the Vietnamese market The brand's reputation and prestige as a Danish entity are likely to be well-received by Vietnamese consumers, strongly inclined toward wooden decorations However, Kay Bojesen should focus on continually developing new designs to add to its product line to broaden its appeal It would be beneficial for the company to prioritize enhancing the quality of its wooden products and to establish partnerships with reputable wooden furniture stores as a primary sales channel This approach would enable Kay Bojesen to expand its reach and attract more attention from prospective customers By adopting these strategies, the company has the potential to successfully establish a strong foothold in the Vietnamese market and capture the attention of discerning consumers who value handcrafted wooden decorations of high quality

REFERENCES Kaybojesen https://kaybojesen.com/about-kay-bojesen/ —

Kaybojesen Shop https://kaybojesen.com/kay-bojesen-shop/

Thefaceholic Blesiya https://thefaceholic.com/thuong-hieu/blesiya-110004230/ Thefaceholic https://thecrafthouse.vn/

Jysk https://jysk.vn/default.aspx

1.Table 1: Descriptives - Income of customers who go to buy wooden decorations

N lean Std Error Lower Bound Upper Bound = Minimum Maximum

Double-click to

Under 10m VND 2Ä“ acta | 1.235 276 2.92 4.08 1 5 11- 15M VND 3.00 756 267 2.37 3.63 2 4 16- 20M VND 6 4.00 894 365 3.06 4.94 3 5 21- 25M VND 18 4.78 428 101 4.57 4.99 4 5 above 26M VND 48 4.83 476 069 4.70 4.97 3 5 Total 100 4.36 980 098 4.17 4.55 1 5

2 Table 2: Anova - Income with Buying Decision

** Correlation is significant at the 0.01 level (2-tailed)

4 Table 4: Correlation - The factors of the product that affect the decision of the wooden

decoration

BuyingDecisi

on

Price Scarcity Brandlmages FengShui Material Reliability

BuyingDecision Pearson Correlation 1 237° 300”” 172.278” 334” 262”

*, Correlation is significant at the 0.05 level (2-tailed)

**, Correlation is significant at the 0.01 level (2-tailed)

5 Table 5: Correlations - how individual customer factors affect purchasing decisions

BuyingDecision Pearson Correlation 1 -.036 493” 632”

FavorMaterial

Cumulative Frequency Percent Valid Percent Percent

=™ Valid Wood 84 84.0 84.0 © 84.0

Glass 14 14.0 14.0 98.0 Bronze 2 2.0 2.0 100.0 Total 100 100.0 100.0

7 Table 7: Where to buy

Where to buy

Cumulative Frequency Percent Valid Percent Percent

= Valid Physical Store 68 68.0 68.0 68.0

Bookstore 4 4.0 4.0 72.0 Other 28 28.0 28.0 100.0