Market research & analysis expanding kay bojesen's wood decoration brand market research and strategies for entering the vietnamese market 1

VIETNAM MARITIME UNIVERSITY INTERNATIONAL SCHOOL OF EDUCATION INTERNATIONA] SCHOOL OF EDUCATION + 1 L + MARKET RESEARCH & ANALYSIS Expanding Kay Bojesen's Wood Decoration Brand: Mark

VIETNAM MARITIME UNIVERSITY INTERNATIONAL SCHOOL OF EDUCATION

INTERNATIONA]

SCHOOL OF EDUCATION + 1 L +

MARKET RESEARCH & ANALYSIS Expanding Kay Bojesen's Wood Decoration Brand: Market Research and

Strategies for Entering the Vietnamese Market

Name: Tram Binh Myy Ph wong - ID: 88813

Class: BMM1101

Group 3 members:

Tram Binh Myy Phuong — 88813

Nguyé¥n Thi Phuong Tha 0 — 89535

Vu Ding Nghia — 94625

Lecturer: Jeannette Bonnén

Hai Phong, 03/2023

TABLE OF CONTENTS

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LIST OF TABLE

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

Table 2: Anova - Income with Buying Decision

Table 3: Correlations - Promoting wooden decorations with buyng decision

Table 4: Correlation - The factors of the product that affect the decision of the wooden decoration Table 5: Correlations - how individual customer factors affect purchasing decisions

Table 7: Where to buy

Table 8 : Questionnaire Q17 - If you saw a decoration for sale at a reputable furniture store that you used to buy often, would you want to buy it?

Table 9: Number of participants

Table 10: Participants's age

Table 11: Participants's Gender

Table 12: Participants's Income

LIST OF FIGURES

Figure 1: Means Plots - The influence of income on future purchase decisions

ACKNOWLEDGEMENT

First and foremost, we would like to thank our research supervisor, Teacher Jeannette Bonnén

Without her assistance and dedicated involvement in every step throughout the process, this paper could have never been accomplished We are extremel¥ grateful to the teacher for supporting and understanding us during the past time

CHAPTER 1: EXECUTIVE SUMMARY

Kay Bojesen is a Danish design company, owned and run by the Youngest granddaughter of Kay Bojesen, Sus Bojesen Rosenqvist Based on a national design treasure, their purpose is to create a modern Danish design house Kay Bojesen's Wood decoration focuses on wooden furniture products The monkey, a well-known design symbol, debuted in 1951 Ka¥ Bojesen's target customer is the person who loves high-class wooden decorations for enthusiasts and loves wooden designs In the following report, we will study the target segmentation, competitors in Vietnam, factors affecting purchasing behavior, and ways to approach new customers, finding an effective marketing strategy

CHAPTER 2: INTRODUCTION

2.1 Problem definition

2.1.1 Major problem

This study is Kay Bojesen's study of information related to wood ornaments, including documents and analytical data

Research problem: We need information about the interest in wood decoration products to find out

if there is a market for our company in Hai Phong and how to attract consumers

Objective: We need information about target segmentation, Hai Phong people's decoration habits, Vietnamese Culture, Hai Phong weather, market situation, competing products, average income, purchasing decision factors, and consumer behavior in Hai Phong, an effective way to approach Kay Bojesen's wood decoration

Goal: The aim is to identify the key factors that influence customers when buying wooden furniture

to select the right product for launch and develop an effective marketing strategy Identify the most efficient way of reaching customers in this market, avoiding wasted time and effort on ineffective methods The research aims to determine the factors that influence buying decisions and find the best ways to reach Hai Phong customers for maximum impact when Kay Bojesen is a lesser-known

Danish decoration brand in Vietnam

2.1.2 Market potential

The Vietnam Chamber of Commerce and Industry reported that high-end furniture consumption in Vietnam is over $2.5 billion annuall¥, with 80% of products imported from European countries and 20% domestically produced European businesses are investing in Vietnam due to its potential market for interior design The Danish market has risen to the third position as one of the largest

investors in Vietnam, with interests in wood, renewable energy, interior decoration, and more Hai

Phong is well-known for producing a variety of interior decoration products using wood, with the industry holding a great advantage Kien An District in Hai Phong is one of the famous places to

world market share, and its value has increased to around $6.1 billion since July 2020, providing an opportunity for manufacturers to improve their competitiveness and boost sales

2.1.3 Competitors

There are 3 types of competitors that Kay bojesen's business will have to compete with (1) Blesi¥a - Competitors with the same product but cheaper, (2) The Crafthouse Vn - Domestic enterprises that have a good name and have higher prices, maintain good quality, and can choose materials for making wood (3) JYSK - is an international business that competes directl¥ with KaY Bojesen

CHAPTER 3: THEORY AND HYPOTHESIS

3.1 Theory and hypothesis

3.1.1 A brief overview of the literature

The article discusses the importance of marketing research in making informed decisions regarding marketing opportunities and issues It specifically focuses on Kay Bojesen's brand in Vietnam and examines the possibility of making Kay Bojesen's merchandise available to the citizens of Vietnam The research focuses on B2B and B2C economies and is conducted using the statistical application, SPSS The aim is to identif¥ customer preferences when purchasing wooden decorations and attract them by creating marketing strategies The research also aims to collect primary data about consumers’ purchasing habits, behavior, financial capability, market demands, product competition, and positioning, in addition to identifying their compatibility with local cultural norms Ultimately, the goal of the research is to provide management with current, accurate, and reliable information to make informed decisions regarding marketing opportunities in Vietnam

3.1.2 Hypothesis

Hypothesis 1: The quality of wood is the most important factor when deciding to buy wooden decorations from Hai Phong people (H1a)

Hypothesis 2: Prestigious furniture store is the place to approach customers who have a hobby of buying wooden decorations in Hai Phong (H1b)

CHAPTER 4: METHODOLOGY

4.1 Research Design

We focus on research on the market in Vietnam The research includes 2 parts: Exploratory Research and Conclusive Research

4.1.1 Exploratory Research

The study aims to understand the motivations and behaviors of wooden furniture buyers in Hai Phong cit¥ using exploratory research Quantitative research through Postal Surveys and Qualitative research via Focus Group Interviews are recommended Mathematical techniques involving SPSS are used to find relationships within variables and test hypotheses The study identifies factors related to the purchasing decision of Hai Phong people, with rarity, material, feng shui, price, and reliability being identified as influential factors

4.1.2 Conclusive Research

Descriptive & Causal:

The article discusses the findings of exploratory research conducted through SPSS to analỹze the factors that influence purchase decisions The study aims to determine the order of influence and the impact of each factor on the purchasing decision The research also determines the most preferred and trusted place to buy decorations and the popular purchasing method The article concludes that an effective marketing strategy should be based on the factors customers are most interested in and the popular approach to customers in Hai Phong, to reach new customers faster, save costs, and avoid wasting resources on unimportant factors

4.2 Research techniques

Mixed Methods research involves using both survey and focus group methods to gain a better understanding of a target audience's preferences and habits BY using Surveys, researchers can gather information on factors such as culture, buying habits, preferences, and segmentation Focus groups, on the other hand, provide an opportunity to explore participants’ personal views on specific topics in greater detail, allowing for the discovery of new ideas BY combining these methods, researchers can develop a more accurate and effective marketing strategy that targets specific audiences and reaches new markets In addition, we can find the right way to reach new markets and add new ideas for marketing strategies

4.3 Measure

Most of the questions in the postal survey are Nominal scales, Ordinal Scales, and Interval Scales, the measurement of which is clear and precise

For questions of this type, Nominal scales are used to calculate frequency and count the number of respondents' answers correctly based on naming the answers with numbers (gender of the participant)

With the Ordinal Scale question, the answers are coded, and it is possible to determine the high or low level of rating for each person for the data (questions about the age and income )

With the Interval scale question, we want to find out about the level of customer interest in each of

buying wooden decorations ( "The factors You care about when buying decorations (1 = not at all, 5

= very much)")

4.4 Questionnaire

Use the postal survey to expand the number of participants answering the question quickly Moreover, the survey helps to find out target segmentation, preferences, habits, culture, buying habits, and popular approaches of Hai Phong people in general and people who love to buy decorations in particular With 20 multiple-choice questions with 1 answer choice for each question, customers will have to choose the most suitable option for each question, making the analysis process easier and more accurate is for participants to choose multiple answers (Appendix 3) After collecting the results of the surve¥ and focus group interviews, in-depth questions are asked to get a better understanding of customers' habits and preferences, as well as to learn more about future customers' desires and demands To gather new ideas, a video camera is used during the focus group interview to produce a document for later use (Appendix 4)

The questions are organized in order of ease, with the aim of exploiting participants' opinions and better serving the research objective We arrange the questions in order of easy to difficult to answer Firstl¥, (easy) question is about the Customer's decoration buying behavior The main questions are in the middle (Medium) about Factors affecting the behavior of buying decorations and Ways to buy decorations from customers, these questions will exploit participants’ opinions, directly serving the purpose of the research rescue The last three questions address individual participants' demographic information, including gender, age, and income

4.5 Sampling

We use two sampling methods, namel¥ Convenience sampling and Judgmental sampling

Convenience Sampling we use to form Postal Surve¥ responses by doing the following:

Step 1 - Prepare With the goal of gathering as many responses as possible from a wide variet¥ of participants, we prepared the questionnaire and printed it out in preparation for the survey

Step 2: Execute The second step of the survey involved standing in front of the Baya store at AEON Mall for two weekends in March 2023 The store was chosen because it sells home decorations at a high price, similar to Kay Bojesen's products, and attracts people with a hobby or need for decorations Survey sheets were given to guests who visited the store to gather responses

Step 3: Collect information After collecting 100 respondents, we sat down together to compile the answers

Judgmental Sampling: After receiving the answers of 100 survey participants through the postal survey, we evaluated and selected 6 people with the same criteria for research purposes: preferring wooden decorations, having demand for wood decorations in the future, having income over 10

million a month, and those who are willing to buy high-priced decorations (because Kay Bojese's products have a high price compared to similar products in Vietnam)

4.6 Fieldwork - Data Collection

A survey was conducted on 100 people at the Baya-AEON store, and six people who love buying wooden decorations were interviewed SPSS was used to anal¥ze the survey data, and focused- interviews were conducted to collect the interests and views of candidates The survey received 100 valid response sheets, with 62 females and 38 males The age group with the largest proportion of respondents was 21-30 Years old (40%), followed b¥ 41-50 Years old (36%) People under 20 Years old accounted for onl¥ 4% of store visitors In terms of income, 48% earned more than 26 million/month, while 20% earned less than 10 million/month The study provides insights into customer demographics and preferences (Table 9,10,11,12 Appendix 1)

CHAPTER 5: ANALYSIS AND RECOMMENDATIONS

5.1 Analysis

5.1.1 Personal factors affecting customers! purchasing decisions

The table shows the Income of customers who go to buy wooden decorations With a mean of 4.83 (mean value), N is the number of participants who chose the answer Conclusion Most people who want to bu¥ wooden decorations in Hai Phong have a high income of over 26 million/per month (Table 1,2 Appendix 1)

The graph shows the influence of income on future purchase decisions (Figure 1, Appendix 1) The line shows the decision to buy wooden decorations in the future gradually increasing, proportional to the income of the participants family The higher the income, the more decision to buy in the future The highest value of the chart is Income 26M VND which is equivalent to the average of the highest purchase decision

The table shows how individual customer factors affect purchasing decisions Buying decision is affected b¥ age and income (both have a Sig.=000 < 0.01) whereas gender not affects (Sig = 0.726 > 0.01) The result shows that the purchase is decided by the owner prefer wooden furniture according to age and income, the older people and the higher their income, the more demand they have to bu¥ decorative wooden products (Table 5, Appendix 1)

The majority of survey respondents preferred wooden decorations over other materials (84/100 participants) (Table 6, Appendix 1)

5.1.2 Product factors that influence customers' purchasing decisions

After collecting surve¥ responses, we found that promoting wooden decorations through price,

The table shows the factors of the product that affect the decision of the wooden decoration season

of Hai Phong customers The value elements have a sig <0.05 things that have an impact on purchasing decisions are price, scarcity, feng shui, material, and reliability In which, the Material factor has the greatest impact (Sig = 0.001; Pearson Correlation = 0.334**) and Price has the least impact (Sig = 0.017; Pearson Correlation = 0.237*) In addition, Brand image is an excluded factor, which does not affect the decision to bu¥ wooden furniture of Hai Phong people (Table 4 , Appendix

1)

5.1.3 Ways to buy wooden decorations from customers

Hai Phong people tend to trust and often choose reputable wooden furniture stores to buy wooden decorations (68%) (Table 7, Appendix 1)

With the question "If You saw a decoration for sale at a reputable furniture store that You used to buy often, would You want to buy it?" No one chose the answer of level 1 on the Likert Scale Level 5 (surel¥ Yes) was chosen by the most people with 52%, and level 4 (Yes) was the second most chosen

by 24% (Table 8 Appendix 1) Concluding that customers are very confident when choosing to buy decorative wooden furniture at the store

5.1.4 In-depth answer about wood decorations

Customers in Vietnam often buy wooden decorations for special occasions such as new house construction or grand opening, as well as for hobby or inspiration They prefer minimalist, cute, and animal-shaped designs Vietnamese people appreciate the classic and luxurious feel of wooden decorations, and their durabilit¥ Qualit¥ of wood and design are important factors when choosing decorations Customers worry about preserving wood qualit¥ to prevent moisture, mold, fading, and ensure durability When it comes to Danish brands, most of the participants feel that it is a prestigious brand, durable, luxurious and high-priced products Some participants thought that Kay Bojesen's products were unique and had never been seen on the Vietnamese market Besides, because of the above characteristics, feel that the product is not familiar enough and does not fit their st¥le (Appendix 2)

5.2 Recommendations

Wood quality is the most important factor and influences the purchase decision of customers, so Kay Bojesen wood decoration should focus on promoting product quality, stating the benefits of wood, durability , meaning, and showing that this wood is suitable for the weather of Vietnam (Hai Phong) Prestigious furniture store is the most effective place to reach customers because of its prestige and familiarity In addition, people with a passion for wood decorations are often over 40 Years old, so we recommend the company to focus on distribution and sales at these locations Example: Linking with reputable wooden furniture stores (BaYa Aeon Mall), mainl¥ focusing on distribution, can open an e- commerce floor in Vietnam but invest less to minimize costs

The criteria that customers love decorations are all elements that Kay Bojesen has in her products

simple) when launching in the Vietnamese market on the Vietnamese market and possibly create similar designs in the future to increase the number of products for customers to choose from because design is also one of the important factors to pay attention and decide to buy or not Based on the concem about the care of wooden furniture, we have a recommendation to Kay Bojesen wood decoration that there should be a paper or clip attached to the product, which instructs the customer how to properly care for that product

CONCLUSION

Both h¥pothesis Hla and H1b have been confirmed to be correct

Overall, it can be concluded that Ka¥ Bojesen, the Danish wood decoration company, has immense potential in the Vietnamese market Due to its good reputation and prestige as a Danish brand, it is likely to be well-received by Vietnamese customers Their products are largely suitable for Vietnamese preferences in terms of wood decorations However, the company should continue to develop and add new designs to its product line to broaden its appeal In terms of marketing and promotion, Kay Bojesen should focus on highlighting its high-quality wood products and target reputable wooden furniture stores as its main sales channels This will help to ensure that the products reach a wider customer base and attract more attention With these strategies, the company can successfully establish a strong presence in the Vietnamese market and capture the interest of discerning consumers who appreciate high-quality, handmade wooden decorations

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