Page 2: Internal growth
a) Developing and selling new products
MFI's strategy is to 'provide furniture for every room in the home'. It looks to ensure that every year at least 20-25% of its products are new ranges. To support this goal the company invests significantly each year in product design and introduMFI, customers, bathrooms, refits, bedroom, design, stores, market, kitchens, appealing, floor, Refitting, prices, delivery, importancection. New product introduction is vitally important for the continued appeal of MFI's products and MFI is continually trying to cater for customers' ever increasing expectations and address the customers' needs and concerns. Storage, for example, is becoming an increasing issue for a lot of homes. Think of your own bedroom and the importance of storing your clothes, music centre and associated CD collection, your television, computer and the many other items you own. A typical MFI designed bedroom is shown below:
b) Entering new product categories
MFI has developed a strong presence in bathrooms as well as in its more established areas such as kitchens and bedrooms. In bathrooms in particular, this was a product category that up until two years ago was not provided by MFI. This was despite 60% of customers thinking MFI did sell bathrooms. Bathrooms are a perfect fit with kitchens and bedrooms, where MFI recognises that customers require support with design, delivery and fitting. So MFI provide, at mass market prices, high quality, full room solutions including:
- the product(s)
- planning and advice
- finance arrangement
- installation service.
Because MFI is the market leader it can provide a fully tailored service at competitive prices. MFI sees bathrooms and kitchens, for example, as more than just functional spaces. Its designs treat these areas as showpieces: clean, hygienic areas that appeal to customers' senses and enable them to make best use of space and time. Detailed market research has enabled MFI to provide what customers say they want.
c) Refitting retail outlets
A store's trading format is vital. It needs to be convenient and attractive to consumers and to address their needs and concerns. MFI has invested extensively in store refits. The new look stores are visually appealing and elegant, with a focus on providing style and service. Fewer product ranges are offered but those selected are targeted at relevant customer groups. The purpose of the refit has been to increase sales per square foot of floor space and to ensure maximum efficiency in the supply chain.
Some MFI stores have been completely refitted while others have had a partial refit. Important features of complete refits have been architect-designed layouts, an open ceiling in the middle of the floor, large external windows, new heating, ventilation and lighting as well as a complete stripping out and reshaping of product displays.