24% sales growth for a furniture manufacturer from Nowy Targ
Through field research, we discovered that customers are looking for a different type of wood finish than the manufacturer offered. Changing the offer took 4 weeks.
A furniture manufacturer from Nowy Targ was losing market share to large chain stores. Our study showed that the problem was not price, but wrong assumptions regarding customer taste.
The challenge
The company recorded a 17% year-on-year drop in inquiries in the first quarter of 2024. The owner, Mr. Andrzej, assumed that customers were escaping to cheaper showrooms in Krakow. The warehouse was bursting at the seams with heavy oiled oak cabinets that no one wanted to buy. The sales team spent an average of 42 minutes on a conversation that didn't end in an order anyway. The margin was melting from month to month.
Our approach
We sent three surveyors into the field around Nowy Targ. We conducted 84 in-depth interviews with people who had bought living room furniture in the last 6 months. We checked invoices from the last 2 years to see exactly when the drop began. We also analyzed traffic in 4 competitor points, counting customers entering and leaving for 5 consecutive days. We verify facts, not hunches.
The solution
It turned out that customers were looking for matte varnish instead of shiny oil, because it's easier to keep clean with children. We prepared a report with 12 specific points for improvement in the offer. We suggested changing the exhibition in the corporate showroom and training 4 salespeople in product argumentation. We focused on the durability of materials rather than on tradition, which for young families was secondary. No sugarcoating, we pointed out which models had to be withdrawn immediately.
Results
Within three months of introducing matte varnish and new communication, sales increased by 24.3%. The number of inquiries for custom furniture jumped from 12 to 29 per week. We see the whole picture and it brings profit.
Timeline
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March 2024Field interviews with customers in Nowy Targ and Zakopane.
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April 2024Competition analysis and sales data from the ERP system.
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May 2024Implementation of new finishing strategy and catalog change.
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June 2024Results monitoring and correction of scripts for salespeople.
"The team from Tatra Business Insight delivered hard data from the Tatras. We thought we knew our people, and we were wrong by light years. Changing the offer saved our season and saved jobs."