Business Client Project - Commodum - Research Paper Example

Commodum will be introduced using a skimming pricing strategy and consumers’ will most likely consider the product a high involvement purchase. Direct marketing will highlight important attributes such as service, quality, and warrantee to help reduce cognitive dissonance often associated with high-involvement purchases.The ergonomic furniture giants in the U.S. primary consist of two companies Herman Miller and Steelcase and have the two best ergonomic chairs on the market. The Herman Miller “Aeron” is considered the “gold standard” in ergonomic seating, which everything else is compared to it.

The Steelcase “Leap” is more luxurious than the Aeron and has a slightly higher price. These companies have targeted the business office furniture segment and have been very successful. It would be more difficult for Commodum to penetrate the business office furniture market and would be impossible to compete in terms of price. Also, with the current economic environment businesses will be less likely to make major purchases on a new product that do not have a brand reputation established.

However, home furnishings consumers are less aware of the brand name and are a better market segment for Commodum to target. More specifically, Generation Xers and Baby-boomers are the best target market for the company because they spend more on home furnishings than any other generations. Baby-boomers and Xers are more likely to have discretionary income and home furniture purchases have been found to be discretionary in nature. Throughout history, there has been a correlation between furniture purchases and life stages, including getting married, buying a house, children moving out and retiring.

Baby Boomers and Generation Xers are experiencing life a stage associated with home furnishings consumption and make them a powerful target market for Commodum.