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Hni Furniture Target Market When Term Paper

net, 2010). For HNI, the objective is to build market share, as much as possible, in ergonomic chairs. The pricing strategy is going to need to reflect that, and should therefore be at the low end of the ergonomic segment. In this situation, we have chosen a skimming strategy. The skimming strategy involves setting high prices based on value. The company wants to build market share on the basis of quality (Meissner, 2010). Ergonomic chairs are a growth market, and this strategy will allow us to gain entry into the market without sacrificing margins. We do not intend to be the biggest player in the market, but to build a solid market share based on a high quality product. We want to make good margins on our products and a skimming strategy will allow us to do this while staking our position in the market overall. Ergonomic chairs are relatively price inelastic, which allows for a skimming strategy rather than a penetration strategy (EconomicExpert.com, no date).

We do not intend to set prices at the highest level. We are focusing our pricing points not on the highest level of the segment but at the highest mass market level (so for example...

Quality will be on the basis of the ergonomic design, not the use of high end fabrics.
Works Cited:

Johansson, C. (2000). Top 10 emerging practice areas to watch in the new millennium. American Occupational Therapy Association. Retrieved April 24, 2010 from http://www.aota.org/nonmembers/area1/links/link61.asp

No author. (2010). Industry overview -- retail office furniture in the United States. ZPryme.com. Retrieved April 24, 2010 from http://zpryme.com/news-room/industry-overview-a-retail-office-furniture-in-the-united-states-including-market-leaders-ashley-lane-haverty-and-global-leader-ikea-zprymehtml.html

No author. (2010). Best ergonomic office chair. Ergonomic-Chairs.net. Retrieved April 24, 2010 from http://ergonomic-chairs.net/

Meissner, J. (2010). Basic pricing strategies and when to use them. Meissner Research Group. Retrieved April 24, 2010 from http://www.meiss.com/blog/tag/skimming-strategy/

EconomicExpert.com. (no date). Price skimming. Economic Expert.com. Retrieved April 24, 2010 from http://www.economicexpert.com/a/Price:skimming.htm

Sources used in this document:
Works Cited:

Johansson, C. (2000). Top 10 emerging practice areas to watch in the new millennium. American Occupational Therapy Association. Retrieved April 24, 2010 from http://www.aota.org/nonmembers/area1/links/link61.asp

No author. (2010). Industry overview -- retail office furniture in the United States. ZPryme.com. Retrieved April 24, 2010 from http://zpryme.com/news-room/industry-overview-a-retail-office-furniture-in-the-united-states-including-market-leaders-ashley-lane-haverty-and-global-leader-ikea-zprymehtml.html

No author. (2010). Best ergonomic office chair. Ergonomic-Chairs.net. Retrieved April 24, 2010 from http://ergonomic-chairs.net/

Meissner, J. (2010). Basic pricing strategies and when to use them. Meissner Research Group. Retrieved April 24, 2010 from http://www.meiss.com/blog/tag/skimming-strategy/
EconomicExpert.com. (no date). Price skimming. Economic Expert.com. Retrieved April 24, 2010 from http://www.economicexpert.com/a/Price:skimming.htm
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