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Market analysis – mapping of customer needs and buying behaviours within the furniture market segment for care and healthcare

Lunde, Erika (2012) MIO920
Production Management
Abstract
Purpose The purpose of the study has been to estimate the size of the market segment, identify strategically important customers and interesting parts of the segment as well as create an understanding of customer needs when buying furniture for their businesses where care and healthcare is practised.
Method The study has been of an exploratory nature with a case study approach since the purpose of the study has been to obtain a deeper understanding of the customers and their needs in the segment.
The first part of the study is based on secondary resources as well as information from the EFG sales organisation.The second part of the study is mainly based on primary data collected through interviews with three major private care and health... (More)
Purpose The purpose of the study has been to estimate the size of the market segment, identify strategically important customers and interesting parts of the segment as well as create an understanding of customer needs when buying furniture for their businesses where care and healthcare is practised.
Method The study has been of an exploratory nature with a case study approach since the purpose of the study has been to obtain a deeper understanding of the customers and their needs in the segment.
The first part of the study is based on secondary resources as well as information from the EFG sales organisation.The second part of the study is mainly based on primary data collected through interviews with three major private care and health care providers in Sweden; Aleris, Capio and Carema. These companies have been chosen through a selective sample. For each company, several semi-structured interviews have been conducted with persons from different levels and with different roles within the organizations.
Theory The study includes a theory chapter used as a base for the study. The theory has been gathered from literature regarding industrial marketing and industrial buying behavior. The theory covers factors that can be used for segmenting a market and factors that influence the buying process and the buying center.
Conclusions The study has identified private nursing homes for elderly people as an interesting customer segment for EFG to target since the major need for care furniture is within these kinds of facilities. The total market for nursing homes in Sweden has been estimated at present to amount to 160 million Swedish kronor annually. The private market stands for 30 million of the total market or approximately 18 %. Furthermore, the overall market as well as the private market for elderly care is growing and the outsourcing levels are expected to continue rising.
The study has identified that the external factors influencing the customers’ purchases and also the choice of what part of the segment for EFG to target are whether the customer is a care and/or health care provider. Laws, regulations and primary financing source are different for the two customer markets. In general, health care providers have a greater need for furniture to their offices, waiting areas and staff rooms while care providers have a bigger need for care furniture to dayrooms and dining rooms as well as “regular” furniture for offices and staff areas.
Buying behavior and buying situation are also influenced by whether the customers run the business in-house or by a contract agreement with municipalities or counties. Another important factor is that private care and healthcare providers are not forced to make their purchases according to the Law of public procurement (Lagen om Offentlig (Less)
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author
Lunde, Erika
supervisor
organization
course
MIO920
year
type
M1 - University Diploma
subject
keywords
Industrial buying behavior, customer needs, strategic customer
other publication id
12/5413
language
Swedish
id
2857047
date added to LUP
2012-07-02 10:42:10
date last changed
2012-07-02 10:48:39
@misc{2857047,
  abstract     = {Purpose The purpose of the study has been to estimate the size of the market segment, identify strategically important customers and interesting parts of the segment as well as create an understanding of customer needs when buying furniture for their businesses where care and healthcare is practised.
Method The study has been of an exploratory nature with a case study approach since the purpose of the study has been to obtain a deeper understanding of the customers and their needs in the segment.
The first part of the study is based on secondary resources as well as information from the EFG sales organisation.The second part of the study is mainly based on primary data collected through interviews with three major private care and health care providers in Sweden; Aleris, Capio and Carema. These companies have been chosen through a selective sample. For each company, several semi-structured interviews have been conducted with persons from different levels and with different roles within the organizations.
Theory The study includes a theory chapter used as a base for the study. The theory has been gathered from literature regarding industrial marketing and industrial buying behavior. The theory covers factors that can be used for segmenting a market and factors that influence the buying process and the buying center.
Conclusions The study has identified private nursing homes for elderly people as an interesting customer segment for EFG to target since the major need for care furniture is within these kinds of facilities. The total market for nursing homes in Sweden has been estimated at present to amount to 160 million Swedish kronor annually. The private market stands for 30 million of the total market or approximately 18 %. Furthermore, the overall market as well as the private market for elderly care is growing and the outsourcing levels are expected to continue rising.
The study has identified that the external factors influencing the customers’ purchases and also the choice of what part of the segment for EFG to target are whether the customer is a care and/or health care provider. Laws, regulations and primary financing source are different for the two customer markets. In general, health care providers have a greater need for furniture to their offices, waiting areas and staff rooms while care providers have a bigger need for care furniture to dayrooms and dining rooms as well as “regular” furniture for offices and staff areas.
Buying behavior and buying situation are also influenced by whether the customers run the business in-house or by a contract agreement with municipalities or counties. Another important factor is that private care and healthcare providers are not forced to make their purchases according to the Law of public procurement (Lagen om Offentlig},
  author       = {Lunde, Erika},
  keyword      = {Industrial buying behavior,customer needs,strategic customer},
  language     = {swe},
  note         = {Student Paper},
  title        = {Market analysis – mapping of customer needs and buying behaviours within the furniture market segment for care and healthcare},
  year         = {2012},
}