Marketing Plan: Interior Charms, Inc.

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    EXECUTIVE SUMMARY

    Interior Charms Inc. is a unique interior designing business that aims to provide excellent servicesto the clients in designing and decorating their homes, at competitive prices. Our primary clients

    would be customers with a need to design and enhance their existing/primary homes, as well aspeople with vacation homes. A significant point of differentiation that our firm practices is thatbesides interior designing and consultation services, we also provide our clients with qualitypaintings and art work free of charge that can be utilized to enhance goodwill and loyalty withour esteemed customer.

    Our targeted customers constitute mainly of the upper class of Karachi city. As the nature ofInterior Charms start up business is not entirely revolutionary, therefore we already have wellestablished competitors within the market. As for our company, it is a start-up business betweenfive equal partners.

    Our marketing strategy is based on becoming the resource of choice for people looking todecorate their homes and make a statement in society. Our main marketing strategies include:Increased awareness and image, leveraging existing client base, cross selling and new homeconstruction promotion. Our promotion strategy will create awareness, interest, and appeal toour target market for what Interior Charms offers our customers.

    The marketing objective is to actively support continued growth and profitability througheffective implementation of the marketing strategy.

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    BUSINESS OVERVIEW

    General Description of Business

    Interior Charms, Inc is a proposed start-up venture that will offer comprehensive interior designservices for primary residences and vacation homes for people living in the Karachi area. InteriorCharms, Inc is an interior design service for discerning, quality-conscious clients who seekassistance in their design choices for their primary residences and vacation homes. Thisexperience offers personal attention through the design process and also providesdesign resources and products to its clients through special purchases of new and antiquefurniture, decorator fabric, and artwork and home accessories. The total experience is providedin a way to inform, inspire, and assist people through the process of transforming their homeenvironment to become a unique and personalized expression of them and add to their

    enjoyment of that comfortable as well as luxurious interior space.

    Mission

    Interior Charms mission is to assure superior customer service and exceed the customer'sexpectations for their project. Our mission is to compete profitably in the high-end residentialmarket for interior decorating within the city of Karachi. We will emphasize on design work of thehighest quality, and specialize in the most demanding needs of new and remodelled designerhomes for the elite class.

    Goals

    The primary objectives of our firm are to:1. To create a service- based company whos #1 value is exceeding customer's

    expectations.2. Become one of the top 10 of the 100 top performing interior design companies as

    listed by the Pakistan Institute of Interior Designers (PIID).3. To increase our number of served clients by 20% per year through superior service.4. Develop a sustainable start-up business that is profitable.

    Value Proposition

    Interior Charms offers the highest interior design experience for the homes of those inthe Karachi area. The concept is unique through the selection of antiques, home accessories, andcomplementary products along with the illuminating interior design consulting experience.

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    Competitive Edge

    The one factor that distinguishes from other interior designers is that we not only provide theprimary services of designing interiors, but we also provide our own unique touch in the form ofunique and one-of-a- kind designer paintings and art work, which can be incorporated withinyour beautifully designed home to enhance its aura. Our unique paintings are highly regarded asthe perfect addition to any home, and as we strive to provide our clients with the best ofeverything that we have. Therefore our art pieces and paintings are offered exclusively to ourvalued customers. As our customer matters the most, therefore, we choose to offer these piecesof art absolutely free of charge, as a token of our appreciation for the client, and how theyentrusted us in designing the thing that mattered to them the most: their homes.

    Marketing Goal

    The marketing goal is to actively support continued growth and profitability through effectiveimplementation of the strategy, and achieve an image of the most-preferred interior designservice in the minds of the customers by delivering superior value through quality, service andreliability.

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    SITUATION ANALYSIS

    The 4C Framework:

    Customers

    Interior Charms is entering its first year of operations. Our target customers are based in theupper class of Karachi. They include people for whom the appearance of her/his home is apriority, and entertaining and showing her/his home is important, who are conscious of socialstatus and seek to elevate their standing in society. We will provide services to anyone whoapproaches, but our main target is newlywed couples setting up a new home, retirees who seekto relocate or refurbish, designing rooms for children, working women who do not get much timeto decorate their houses, and if they work out of the home, it's by choice in aprofessional/business setting.

    Competitors

    There are more than 30 other interior designers in the Karachi area and these competitors rangefrom those that provide simple-focused services, such as draperies only, to a more full-serviceinterior design approach similar to Interior Charms .

    Our competition primarily is from other interior designers, such as the following :

    Baroque Inc.Baroque is about creating distinguished lifestyles. Baroque has developed into the premierresource for luxury goods to architects, interior designers and customers. It has been establishedsince 1998, and has showrooms in Toronto, Canada as well as Karachi. It has established a loyalclientele and is considered as one of the leaders in the industry.

    Design 19, Furniture Studio Boutique:Design 19 specializes in interior designing and collaboration of all types of design projects, apartfrom that, it is majorly a furniture boutique.

    House of Zunn:It was founded in 1998 by Uzma Mirza and Seema Sherazee, and has an established client base,

    with showrooms in UAE and Pakistan.

    Landscape:Landscape is a multifaceted corporation comprised of three major divisions; Realtor Services,Architecture & Interior Design and Building Materials.

    Talent and Taste:

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    Talent and Taste, established in 1982, is one of Karachis most prestigious home furnishingshowrooms and interior design firms.

    Looking at a broader picture, there is also competition from the "do-it-yourself" resourceproviders that have retail stores and websites that include the following:

    Furniture stores such as Design and Depth, Bed and Bath, Le Mosaque lan, ZubaidasHomestore, IKEA and others.

    Online sales of furniture, fabric and other interior design-oriented products haveexpanded dramatically and in many cases are easily available.

    Catalog Competitors: An increasing level of competition is anticipated from catalog sales.Recent trends indicate increased interest in offering decorator fabric, window designs,and other home decorating products through this increasingly popular channel ofdistribution. Catalog sources do not offer clients the option to see, touch, and have thefabric in their homes. Price is the most significant competitive factor this product sourcepresents.

    Discounters: Channels of distribution continue to shift in favor of discounters, whoaccount for a significant portion of the growth in the industry. As consumers experiencelower levels of disposable income, discounters leverage frequent store promotions toentice frugal, value-oriented consumers.

    Company

    Interior Charms is a start-up business that will offer comprehensive interior design services to clients inKarachi. This business will assist those that want to have guidance and council in developing abasic design concept of their project, to the person that desires someone to take it from concept tocomplete implementation. will offer the ability for clients to purchase new and antique furniture, artwork, decorator fabric, and home accessories. The website www.interiorcharms.com will be used asanother way to communicate the services available and provide a portfolio of the work accomplished. Thebusiness will begin as a partnership business with a rented office building and is expected to remain in thisstructure through at least the first three years.

    Company OwnershipInterior Charms is registered in the Karachi as a partnership between five people. These fiveare

    Siraj-am-MuniraRamsha JavaidSehrish PervezSidra Najam

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    Syeda Kanwal Naeem

    Company Location and Facilities

    Interior Charms is operated from a rented office located in DHA, Karachi.Company name:Address: 3 rd street off Khyaban-e-Sehar, Phase-VI, DHA, Karachi.Phone: +92 333 1234567Email: [email protected]

    The facility is an open office space, with a client contact work centre, display samples of designconcepts, products, and past work.

    Cost

    The initial investment will be Rs. 24 lacs. Our pricing strategy is based on offering higher value toour clients compared to others in the market. Value is determined based on the best designservices.

    Our policy is to receive an initial payment of 60% for each project after the initial designconsultation phase is complete, and collecting the balance of these revenues before 45 days ofcompleting each project.

    Interior Charms is well-equipped with the knowledge about everlasting designs of home interiorsas well as the changing trends that take place throughout the years. We strive to integrate thisknowledge to the best of its potential in order to provide a home to the customer that stands thetest of time, fashion and status considerations. Our customers value this concept, and are willingto pay the high prices in exchange for superior service and a one-of-a-kind experience.

    SWOT Analysis

    The following SWOT analysis captures the key strengths and weaknesses relating to the market

    analysis summary and describes the opportunities and threats facing Interior Charms.

    Strengths The proven ability to establish excellent personalized client service. Strong relationships with suppliers that offer flexibility and respond to special product

    requirements.

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    Good referral relationships with architects, complementary vendors, and localrealtors.

    High client loyalty developed through a solid reputation among repeat, high-rupeepurchase clients.

    Member of local business networks and member of the Pakistan Institute of InteriorDesigners (PIID).

    Weaknesses A more frequent financial analysis is required. Access to capital is somewhat difficult. The owner is still climbing the retail experience learning curve. Not yet perfectly established in a market where a variety of already established

    interior design options exist.

    Challenges of the seasonality of the business.

    Opportunities A significant portion of our target market is looking for the services Interior Charms

    will offer. Growing market with a significant percentage of our target market still not knowing

    we exist. Strategic alliances offering sources for referrals and joint marketing activities to

    extend our reach.

    Benefiting from high levels of new home construction. Changes in design trends can initiate home updating and, therefore, generate our

    sales. Internet potential for selling products to other markets. Expanding into offering design services for commercial projects like offices,

    restaurants, and hotels. Expanding into a wider geographic area than the present target.

    Threats

    Continued price pressure, which is due to competition or the weakening market, mayreduce contribution margins.

    Competition from a national store; or a store with greater financing or productresources could enter the market.

    Dramatic changes in design, including fabric colours and styles can present challengeswhen we consider what is desired and what is expected, which can lead to obsoletedesign ideas.

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    Expansion of products and services offered by other sources including national storesinto the local market including Makro Cash and Carry, Asaish Furnitures, Home Depot,Bed and Bath.

    Catalogue resources, with aggressively priced trend-setting fabric products including

    drapery, bedding and slipcovers. Economic decline reduces disposable income, and T.V shows encourage do-it-yourselfdesigns, which may lead to decreased business activity.

    This analysis indicates solid potential success, but the weaknesses and threats must berecognized and overcome throughout the life of the venture.

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    MARKET RESEARCH ANALYSIS

    Interior Charms has a defined target market client that will be the basis of building thisbusiness. Effective marketing combined with an optimal product offering is critical to the Interior

    Charms success and future profitability. The owner possesses solid information about the marketand knows a great deal about the common attributes of those that are expected to be prized andloyal clients. This information will be leveraged to better understand who our Interiors will serve,their specific needs, and how to better communicate with them.

    Market Segmentation

    The profile of the Interior Charms client consists of the following geographic, demographic,psychographic, and behavior factors:

    Geographics The geographic market is the affluent sector within the Karachi, 3512 Sq km area. (Based

    on the 2000 Census data.) The total population of Karachi is around 12 million (2008). The target market population

    is the upper class, based on the following characteristics:

    Demographics

    People who are interested in good crafted furniture with unique designing. People who are interested in wood-based furniture, embellished beddings, wooden

    flooring. Working women who do not get much time to decorate their houses. If they work out of the home, it's by choice in a professional/business setting. Have attended college. Furniture for children. Newlywed couples setting up a new home. Retirees who seek to relocate or refurbish. Own their home, townhouse and/or condominium valued at over Rs 80 lacs.

    Psychographics

    It is basically made for following people:

    For whom the appearance of her/his home is a priority. For who entertaining and showing her/his home is important. Who perceives himself/herself as creative, tasteful and able, but seeks validation and

    support regarding his/her decorating ideas and choices.

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    Regardless of this data, the following trends and issues impact the success and challenges of .

    National economic health: The industry performs better when the country experiences"good times" regardless of its direct impact on the local economy. Sales decrease whenthe stock market falls and when there is some military action. An upbeat address by the

    President correlates with an increase in sales.

    New home construction activity: More closely related to what is taking place in our localeconomy, new home construction has a significant impact on sales.

    Shifts in design trends: Major changes in design trends increase sales. The Karachi marketstays up to date metropolitan design trends. This offers a buying advantage for the store,offering a preview of what is coming and how we should adjust our in-stock inventory.

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    MARKETING STRATEGY

    Marketing Goals and Objectives1. A growth rate in of 10% in sales for the first 3 years, each year from 2013 to 2015.2. An average amount of sales per year that increases each year, averaging Rs. 20 lacs in the

    first year, Rs. 30 lacs in the second year, and Rs.40 lacs in the third year.3. Achieve an image of the most-preferred interior design service in the minds of the customers

    by delivering superior value through quality, service and reliability.

    Positioning

    For the person creating a personalized and unique impression of her home, Interior Charms is thebest source for selection and price points of the customer-oriented design services and a varietyof other home accessory and furniture products. Customers will be impressed with, and returnfor, the great design theme concepts, value-oriented pricing, and excellent customer service.Interior Charms is a pleasant, elegant and tasteful resource that encourages everyone in theprocess of decorating their home. Unlike employing an interior decorator, Interior Charms allowsthe individual to participate in their design choices to the extent they choose, and realize greatervalue for the money they invest.

    Strategies

    The single objective is to position Interior Charms, Inc. as the premier source for homedecorators. The marketing strategy will seek to first create client awareness regarding theproducts and services offered, develop that client base, establish connections with targetedmarkets and work toward building client loyalty and referrals.

    Interior Charms four main marketing strategies are:

    1.

    Increased awareness and image.2. Leveraging existing client base.3. Cross selling.4. New home construction promotion.

    Strategy #1 INCREASED AWARENESS and IMAGE -Informing those not yet aware of what Interior Charms, Incoffers.

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    Advertising Referral Generation

    o Realtor "open house" promotions.o Complementary vendor referrals.

    Casa Bella.

    Upholstery resources. Elegance.

    Organization Relationshipso Co-sponsorship of fund raising activities.o Participating in social and service events, luncheons, evening events.

    Strategy #2 LEVERAGING EXISTING CLIENT BASE -Our best sales in the future will come from our current clientbase.

    Client Service and Relationships

    o Exceptional client service in the store.o Follow up contact.

    Additional Experienceso Classes.o Demonstrations.o Events

    Strategy #3 CROSS SELLING -Increasing the average rupee amount per transaction.

    Internalo Additional sales of furniture, art pieces, and fabric and home accessories.o Look for office/commercial assignments.

    Prospectingo Ongoing work including more involvement in the implementation phase.o Future assignments based on additional work initiated by family changes and

    transitions.

    Strategy #4 NEW HOME CONSTRUCTION PROMOTION -Connecting with people involved in the building

    process.

    Connecting with "Suppliers"o Builders design support services.

    Connecting with "Clients"o Subscription and use of "newcomers" report.o PIID new members update.

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    MARKETING MIX

    Product (Services)

    General Services offered by Interior Charms:Interior Charms, Inc. is a proposed start-up venture that will offer comprehensive interior designservices for primary residences and vacation homes for people living in the Karachi area. InteriorCharms, Inc. is an interior design service for discerning, quality-conscious clients who seekassistance in their design choices for their primary residences and vacation homes. Thisexperience offers personal attention through the design process and also provides design

    resources and products to its clients through special purchases of new and antique furniture,decorator fabric, and artwork and home accessories. The total experience is provided in a way toinform, inspire, and assist people through the process of transforming their home environment tobecome a unique and personalized expression of them and add to their enjoyment of thatcomfortable as well as luxurious interior space.

    The first four people beginning the business each have considerable experience of designingcreative interiors for residential homes. Our interior design projects will combine structuralalteration and re-planning, with the coordinated use of light, color, sound, materials and textures,

    in order to create an overall effect that is functional yet uniquely elegant and suited to theow ner. Our responsibility as interior designers is to take the clients design goals and utilize ourskills and resources to exceed the clients expectations for service, value, functionality, andbeauty.

    Specific Services:Areas of service in our interior design projects will include the following:

    On-site consultations:

    Convenient consultations for busy homeowners and professionals are offered at the home oroffice. The consultation will include all necessary product samples for clients for review, thuseliminating the hassle of having to visit numerous stores for different products.

    Project survey & analysis:

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    Each site is inspected for its layout and function. In-depth client interviews are conducted todetermine all necessary requirements for the project. This information is then analyzed for designconcepts and space planning.

    Space Planning / Square Footage Optimization:

    The space is measured, evaluated in order to determine the necessary requirements and theneeds of the client, and create the design desired.

    Budget development

    The budget is developed before the creation of the design, keeping in mind the requirements ofthe customer, their tastes and preferences, and their time limitations.

    Custom design concept and theme development:

    The design concept can begin with a treasured piece of fabric or furniture, or simply a blank page.The goal is to attain the look and feel a client wants, from light and airy to rich andelegant to comfortable and cozy. Each project develops its own flavour from the uniqueselection of colors, fabrics, furniture, and finishes. Detailed drawings are prepared to help clientsvisualize the finished piece.

    Custom furnishings and finishing:

    There are many factors to consider when selecting furniture and finishes. Interior Charms, Incexpertise and guidance helps clients make the best selections for their needs. Creativity is alsoapplied in the selection process to create the desired look. Custom furniture, built-ins, andwindow treatments are also available through the talents of Interior Charms, Inc.

    Purchasing, delivery, & installation

    Once final selections are made, Interior Charms, Inc assumes all responsibility for coordinatingthe purchasing, delivery and installation of the entire project.

    Project coordination and management:

    Some projects require a certain sequence of installation for maximizing results. Interior Charmscoordinate all aspects of these projects to ensure smooth transitions from each phase untilproject completion.

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    Interior Design ProcessInterior Charms, Inc. normally develops creative interiors through a three-phased approach asfollows:

    Phase 1 Design planning and budget costing

    This first phase of the interior design scheme allows a dialogue with clients to develop. The bestcreative interiors stem from gaining a good understanding of the clients requirements for theproperty. This phase includes:

    Interior design briefing Interior space planning Concept design Initial costs

    Phase 2 Interior design specification

    This second phase of the interior design scheme involves Interior Charms, Inc in producingdetailed drawings and specifications for the agreed interior design scheme. The elements in thisphase include:

    Design detailing Materials and product specification Appointment of suppliers

    Phase 3 Project management and implementation

    This final phase of the interior design scheme involves Interior Charms, Inc. handling theimplementation. Interior Charms, Inc. undertakes the project management of the design andcreates the design using its own team of highly talented and experienced personnel. Clients oftenprefer Interior Charms, Inc. to run the interior design project, on their behalf, right up tocompletion. This phase typically includes:

    Project and design management Quantity surveying

    Purchasing Delivery and installation After-sales service

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    Placement

    The Interior Charms head office is located in DHA, Karachi. The firm has rented an office buildingin its initial phase of operations and the owners might consider buying property later on in thefuture, as time proceeds and the business grows and develops and establishes its market share.

    Details via which customers can reach out and contact this respectable institute are as follows:

    Address: 3rd street off Khyaban-e-Sehar, Phase-VI, DHA, Karachi.

    Phone: +92 333 1234567

    Email: [email protected]

    Website: www.interiorcharms.com

    (The facility is an open office space, with a client contact work centre, display samples of designconcepts, products, and past work.)

    The prospective clients can reach our head office via any of the above options at normal officetimings, that are 9 AM to 5 PM.

    Interior Charms Inc. will utilize a level zero channel design of distribution in which we have nointermediaries between the office and the clients.

    Besides the physical existence, the firm will also establish itself on the online market, focusing on

    availability of easy access for clients, to the official website www.interiorcharms.com, LinkedIn,Twitter account, FaceBook page and also establish contact with the customer via text messages.

    Pricing

    Preferred Pricing Method (Commonly utilized by the firm):

    Owners of Interior Charms Inc. thought that in our market it would be suitable to go with a costplus fee structure of p ricing. This means that we will buy whatever items are necessary for the

    project and include the cost of those items in our service charges.In other words:

    Interior Charms Fee = Actual Labour or Service charge + Cost of items bought

    We have chosen this format due to the fact that it is simplest method for the client to understandand therefore, he will feel that he hasnt overpaid for our services, and that there has been

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    complete transparency in the transactions. Ultimately this will lead to a more satisfied clientelewhich will result in loyal customers and customer references, all of which will boost InteriorCharms business and produce profits, goodwill and an increasing and firm share in the market.

    Our service charges in general are Rs. 20,000 for a standard remodel of an average sized room.

    However this depends to an extent on the duration of services. The before mentioned feeconsiders a 15 Day Project. If more rooms are added to the package then the duration of days isalso extended, and therefore the service charges.

    Standard Duration for a house consisting of 3 Bedrooms, 1 Living Room, 1 Drawing Room, 1Dining Room and a Kitchen usually last anywhere from 40-60 Days. The service charge for such aproject would be around the figure of Rs. 90,000 to Rs. 100,000. This is excludes the costs ofproducts purchased.

    It is important to note here that each interior designing project varies greatly, and the firm mayincrease or decrease the service charge as per the requirement of the situation. Interior CharmsInc. is always looking for more effective and efficient ways of pricing its services in order to havebetter satisfied clients and less excess/avoidable expense, both of which will lead to higherrevenue generation.

    Other possible methods of pricing:

    The above discussed format (Interior Charms Fee = Actual Labour or Service charge + Cost ofitems bought) would be our preferred method of charging the customer. However each situation

    varies greatly in terms of labour hours and spacing, therefore we may use any of the followingmentioned methods of pricing for a client, if need be there:

    Other Fee Structure Designs:

    By the hour A flat fee Cost plus fee Percentage based fee Fee based on square footage etc.

    However, in utilizing other means of pricing, we will ensure that the customer is fully satisfiedwith our charging methods.

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    Promotion

    Our promotion strategy is based on becoming the resource of choice for people looking fordecorator fabrics, do-it-yourself, and buy-it-yourself resources to create a look in their home. Ourpromotion strategy is based on superior performance in the following areas:

    Product selection. Product quality. Customer service.

    Our promotion strategy will create awareness, interest, and appeal from our target market forwhat Interior Charms offers our customers.

    Promotional Tools:

    The basic promotion strategy will focus on generating referrals. Other potential sources ofpromotion include:

    1. An open house. Our idea of having an open house in the showroom is a good one. Wewould invite local businesses who also are in the business, such as a paint company, acarpet company, an appliance company. These are great businesses to get involved whocan also offer perhaps a few gallons of paint, free carpet padding or a discount on anappliance in order to entice people to come to your open house. Open houses are alwaysgood.

    2. Design presentations tool that give the clients the freedom to comment on our designs,leave image markups and video markups. It is web based available 24/7. Basically it is atool for online review of all kind of creative presentations - not only architectural.

    3. Seminars: In order to connect with other players related to the interior designing industryand to establish relationships with them, we will conduct some starting-up seminars forthis purpose.

    4. Advertising through internet:

    Google

    We have put advertisements of our business on Google. We pay only if people click our ads.When people search on Google using one of our keywords, our ad may appear next to thesearch results. Now we're advertising to an audience that's already interested in us. Peoplecan simply click on our ad to make an appointment or learn more about us.

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    Twitter

    Twitter is an online social networking service and micro blogging service that enables its usersto send and read text-based messages. We often use Twitter to post advertisements of ourservices, and bring people up-to-date on new developments and ideas.

    LinkedIn

    LinkedIn is a business-oriented social networking site for people in professional occupations.It strengthens and extends your existing network of trusted contacts.

    Facebook

    Everything on Facebook starts with our Facebook page. Its a simple, free way tocommunicate with customers. We get people to like our Page. We have created several ads,

    based on location, demographics and interests. We post frequent updates about designprocesses and developments, and promote our posts with ads to engage our customers andtheir friends.

    Interior Design businesses can take advantage of the search engine optimization to pull up theirsites rankings within Google, Yahoo, and Bing. Using the search trends found in previous sitestatistics, it finds keywords and phrases with the highest conversion rate.

    5. Advertising through bill boards: Typically showing large, ostensibly witty slogans, anddistinctive visuals, billboards are highly visible in the top designated market areas. Bulletins are the largest, most impactful standard-size billboards. We have located ourbillboards primarily on major highways, expressways or principal arterials, they commandhigh-density consumer exposure (mostly to vehicular traffic) to attract large number ofpeople. Bulletins afford greatest visibility due not only to their size, but because theyallow creative "customizing" through extensions and embellishments.

    6. Marketing postcards : Our Company offers dozens of full color postcard samples toimplement direct mail interior design marketing plans to generate increased lead data.Each marketing postcard design can be used as-is or serve as a template.

    7. Newspaper Advertisements: Putting up ads in the newspaper is another tool that we use

    for advertising. Newspaper advertisements are effective in the sense that mostprofessional adults read a newspaper as part of their daily routines and by doing so offerconsistent exposure to business advertisements.

    Jang newspaper:

    Its a newspaper published absolutely in Urdu which is the national language of Pakistan.It has a classified section in which we publish all our ads.

    http://en.wikipedia.org/wiki/Sloganshttp://en.wikipedia.org/wiki/Designated_market_areahttp://en.wikipedia.org/wiki/Designated_market_areahttp://en.wikipedia.org/wiki/Slogans
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    Dawn News:

    This set of paper is published solely in English language. This is to cater to audiencesworldwide. We publish our reputed ads in its classified section.

    Express Tribune:

    We publish our ads only on the first weekend of the month in this paper.

    The News:

    We put up our ads in this paper to cater to all international audiences as well.

    Herald:

    We advertise in this magazine every other month, with new design concepts and themes.

    8. Television Advertisements: We have selected local television shows, like Lifestyle 360 andThe decorators.

    9. Quarterly Postcard: A direct mail postcard is distributed to the client mailing list.

    10. Website: Traffic from www.interiorcharms.com.

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    FINANCIAL PROJECTIONS

    Financial Objectives

    The initial funding of Rs. 24,00,000 will be invested by all partners. The goal is to fund the growthof the business from its earnings. The marketing plan contains these essential objectives:

    1. A growth rate in of 10% in sales for the first 3 years, each year from 2013 to 2015.2. An average amount of sales per year that increases each year, averaging Rs. 20,00,000 in

    the first year, Rs. 30 lacs in the second year, and Rs.40 lacs in the third year.3. Continue to fund the growth of the business from the revenues it generates. 4. Achieve break-even sales after the first three years. 5. Achieve an image of the most-preferred interior design service in the minds of the

    customers by delivering superior value through quality, service and reliability.

    Sales Forecast:

    We expect an average sales per year that increases each year, averaging Rs. 20,00,000 in the firstyear, Rs. 30 lacs in the second year, and Rs.40 lacs in the third year.

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    Sales yearly

    Sales yearly

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    Start-up Expenses

    The following details the initial start-up expenses for Interior Charms, Inc. Most equipment costsare office related. Sample and display costs include books, samples and resources necessary topromote furniture, fabric and other home accessory products.

    Start-up Requirements

    Start-up Expenses

    Legal Rs. 90,000

    Stationery/supplies etc 80,000

    Brochures 90,000

    Insurance 2,50,000

    Samples and Reference Books 1,50,000

    Research and development 1,00,000

    Office setup 1,00,000

    Rent (one month+ deposit) 1,90,000

    Marketing expenses 3,00,000

    Total Start-up Expenses Rs.14,00,000

    Start-up Assets

    Cash Required 9,00,000

    Other Current Assets 1,00,000

    Total Start-up Assets 10,00,000

    Total Requirements Rs. 24,00,000

    Start-up Funding

    Start-up Expenses to Fund 14,00,000

    Start-up Assets to Fund 10,00,000Total Funding Required Rs. 24,00,000

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    Breakeven Analysis

    Revenue Break-even (over 3 years) Rs. 24,00,000

    Assumptions :

    Average Percent Variable Cost 40%

    Estimated Fixed Cost Rs. 15,00,000

    Initial Investment (outflow) Rs.24,00,000

    EBIT Year 1 (inflow) Rs. 4,00,000

    EBIT Year 2 (inflow) Rs. 8,00,000

    EBIT Year 3 (inflow) Rs.12,00,000

    Total EBIT for 3 years Rs.24,00,000

    Our initial investment will be recovered after earning the revenue at the end of the third year ofbusiness.

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    Important Assumptions:

    The following captured critical assumptions will determine the potential for future success. A healthy economy that supports a moderate level of growth in the market.

    The ability to support a gross margin percentage in excess of 65%. Keeping operating costs low, particularly in the areas of product purchases and ongoing

    monthly expenses. Receiving an initial payment for each project of 60% of estimated time and product

    purchases and collecting the balance of these revenues before 45 days of completing eachproject.

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    Marketing Budget

    Once the business has started its operations, marketing expenses are to be budgeted atapproximately 5% of total sales. Expenses are tracked in the major marketing categories oftelevision advertisements, newspaper advertisements, billboards, the postcard mailings, Webmarketing support, printed promotional materials, and other.

    Budget

    Item Start Date End Date Budget

    Establish Website, Register with PIID Jan 20 2013 Jan 30 2013 Rs. 5,000

    Open House Jan 25 2013 Jan 27 2013 20,000

    Seminars Feb 1 2013 March 1 2013 20,000

    Search Engine advertisements Feb 1 2013 Mar 30 2013 80,000

    Television advertisements Mar 15 2013 Apr 30 2013 1,25,000

    Newspaper advertisements Apr 20 2013 May 31 2013 15,000

    Billboards Apr 25 2013 May 15 2013 30,000

    Postcards May 1 2013 June 5 2013 5,000

    Total Marketing Expenses Rs. 3,00,000

    Linking Expenses to Strategy and Tactics

    Our marketing expenses are allocated based on this prioritized approach:

    1. Invest in our current customer base - 50%.2. Invest in prospective customers that match our known profile - 35%.3. Invest in creating greater awareness in the community - 15%.

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    ENVIRONMENTAL ANALYSIS

    Micro environment

    1. Competitors:

    There are more than 30 other interior designers in the Karachi area and these competitors rangefrom those that provide simple-focused services, such as draperies only, to a more full-serviceinterior design approach similar to Interior Charms, Inc. These have been detailed previously inthis plan.

    2. Suppliers:

    The power of suppliers is moderately high as almost anyone that has a business license can haveaccess to wholesale purchases of furniture, fabrics and accessories. Our main suppliers at thisinitial stage are:

    Furniture Suppliers:*Casa Bella*Ainee Shehzad*Elegance

    Paint Suppliers:*Dewan*Delux color studio

    Lighting Suppliers:*Crystal*Bombay Light House

    Artwork Suppliers:*Canvas Art Gallery*Avtasle Gallery*Dream Art Gallery

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    3. Buyers: Our buyers constitute the target market detailed earlier. The power of buyers is relatively low asbuyers work within the financial terms, and product availability is offered through the supplierswho specify their own terms and conditions.

    4. Substitute Products: High as many people refer to themselves as interior designers regardless of background, training,or certification. Substitute products are also high in the area of lighting and window treatment asother solutions have become available and increasingly affordable. Substitute products are not soprevalent in the area of antiques and art pieces.

    5. Company:

    The business is a partnership, with only these five partners managing all of the required fields ofwork, but as of yet there are no formal departments. The management section is headed jointlyby Sehrish and Kanwal, who coordinate this department with the other three partners who aremore focused on the creative side of the business. All five work together to try to keep customerssatisfied and coming back for more.

    Macro environment

    Interior Charms carried out PEST analysis in order to evaluate its environment and determinemeasures for coping with it. PEST analysis includes following forces:

    Political forces Economic forces Social & cultural forces Technological forces

    Political forces

    Factors like rules, taxes and political situation (including law and order situation) will beconsidered in this.

    Rules

    All rules of Government regarding doing business is taken into consideration by Interior Charms.We follow all laws and we believe in working and flourishing under the constraints defined bygovernment. As the government also guides to be ethically responsible towards stakeholders so

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    we respect all stake holders and never involve our-self in such activity which can harm the feelingof any one. We consider our self ethically responsible.

    Taxes

    We pay all taxes on time. For example income tax is applied honestly on income of each partnerand we all pay it on regular basis because without paying it we violate government law & ourbusiness may get into danger so its important to consider it.

    Political unrest

    Sometimes the city situation is not satisfactory due to political instability, law and order situationwhich affects our business as well. It results in delay of tasks and schedules, so as this situation isnot under control therefore at first we mentioned to our client that we will stay on schedule butif the city situation is uncertain, then delays might take place.

    Economic forces

    It includes factors like inflation & change in income of people in economic market, this can affectconsumer spending pattern and thus cause variation in target market of Interior Charms.Therefore these factors are analyzed on a time-to-time basis.

    Social & cultural forces

    All social and cultural forces are considered here like societal rules, customs, norms, beliefs of

    people. For example if we are working in religious society then they forbade painting andshowpiece installation & prefer religious stuff instead or if we are dealing with modern class theyprefer art work around. So Interior Charms focuses on social & cultural trends. Again all societal,ethical values come under it without following those we cannot prosper so we respect all valuesof society.

    Technological forces

    As it is 21 st century so to stay in market it is important to remain up to date & flexible enough toacquire new technology. We acquire different and new software on time to time basis for data

    warehousing, displaying our designing to clients etc and keep updating them.

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    CONTINGENCY PLANS

    Planning is an important element in bringing success to any manufacturing or service orientedbusiness, but as what the quotat ion says expect the unexpected there are instances where

    even the best planned strategies and techniques do not work as expected. Because of theunexpected occurrence all of a sudden, the plan goes another way. So anticipating unexpectedoccurrences and having some backup plan is of high concern to our business.

    Following are the measures that we would like to keep as our back up plan in order to meet anyunexpected situations.

    As the political conditions of the city are never satisfactory keeping this in mind wewould like to set preliminary guidelines with the customer about what to do insuch situations and adjust the schedule accordingly.

    Political and economic instability may cause shifts in the spending pattern ofcustomers, for such cases we would like to design economical packages anddiscount offers.

    In order to meet threats by new entrants and existing competitors we will keep onworking on innovative and unique ideas in order to stay at par with the markettrends.

    Slow sales may result in low cash flows, for which we will put more efforts in themarketing and promotion section.

    In case customer is not able to make down payments on time we will facilitatethem by allowing lease payments up to the date of completion of the project.

    In case of loss of customers for some unknown reason we shall conductresearch to find out the reason, and then make a plan of action.

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    FUTURE PLANS

    Expand into commercial projects like offices, industrial spaces, hospitals. Establish contractual relationships with architects, so as to be involved from the most

    initial phase of the project. Add new business partners. Set up additional offices. Expand the target market into a wider geographic area, like Lahore and Islamabad. Expand target market to middle class projects. Search for more suppliers, more choices. Keep up-to-date with new fashions and new demands. If above plans succeed, go abroad: open offices in UAE and Saudi Arab.