furniture showroom

7/27/2019 Furniture Showroom

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MARKETING ANALYSIS FOR

ESTABLISHING AND PROMOTING ABUSINESS

ESTABLISHING A FURNITURESHOWROOM

PRESENTED BY


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PRESENTED TO: Mr. FAROOQ JAMAL


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ACKNOWLEDGEMENT

We wish to express our sincere appreciation to those persons who

have

contributed either directly or indirectly to this project. Most of all,

we

want to thank Mr. Farooq Jamal. He guided, motivated and assisted

us in

developing this project.

Finally, we want to pay our compliments, to our friends, who

encouraged

us in completing this project. All the members of the group

worked hard

in getting information from the concerned departments.


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DEDICATION

TO OUR BELOVED PARENTS..


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PROJECT PROFILE

PROJECT BRIEFThe proposed project is for setting up FURNITURE SHOWROOM. Thisproject is only concerned with Furniture Showroom and does notinclude manufacturing facility. The furniture manufacturing isassumed to be outsourced to various manufacturers however theproject shall have its own designer for the purpose of collectinginformation about furniture market trends, latest styles, designs,

fashions and creating new ones. The Project will cater to the needsof domestic market out of the imports and locally manufacturedfurniture through out-sourcing. The products covered are domesticor household furniture in finished form. It specifically excludes thecontract sector, which includes furniture for civil aviation, hospitals,schools, and other similar purposes. Antique, second-hand furnitureand garden furniture has been excluded as well.

OPPORTUNITY RATIONALEThe demand for wooden furniture is increasing in the domesticmarket as well as in the international market due to its traditional

appeal and durability despite the introduction of new materials infurniture manufacturing. Furniture Showroom is a viable profitablebusiness if done properly on Commercial basis. Demand forhousehold and office furniture is growing considerably as socio-economic development is taking place. With the rapid increase inthe development of new housing schemes, the increased demandof wooden furniture is also anticipated. According to the NationalHousing Policy 2001, the house construction was to be raised by500,000 houses per annum. Furthermore, introduction of newschemes by different banks for house and consumer financing havealso raised the purchasing power of general public.Furniture, which is given as dowry, forms the major portion of salesof furniture inPakistan. As a result, the demand for household furniture increasessubstantially in winter and spring season due to weddings.Domestic/office requirements and trend of dowry in the form offurniture considerably increase the need for quality furniture. Majortrading partner of wooden furniture manufactured in Pakistan areUSA, UK, Japan, UAE and earning substantial foreign exchange forthe country and contributing towards the strengthening ofeconomy.

CRITICAL SUCCESS FACTORS IN DECISION MAKING FOR


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INVESTMENT

SWOT ANALYSISWood is the main raw material and the entire finished productdepends on quality of wood. The information and technical know

how about the quality of wood and use of seasoned (dry) plays avital role in the manufacturing of good quality furniture and theultimate establishment of Furniture Show Room. Strong competitionexists in the international and domestic market. Manufacturing andsale of high quality trendy designs and aggressive marketing isessential to get a permanent place in the market. Before makingthe decision, whether to invest in setting up the Furniture ShowRoom or not, one should carefully analyze the associated riskfactors. A SWOT analysis can help in analyzing these factors, whichcan play important role in making the decision.

Strengths

Availability of Cheaper Labour & Raw Material.

Growing Local Market both in organized and un-organizedsectors of theFurniture Industry.

High quality Furniture using high quality Raw Material.

The life style of the people is improving and they are gettingmore qualityconscious and are willing to spend more on their houserenovation/decoration.

Market penetration through high quality and heavypromotional activities.

Own designer who could help to create better furnituredesigns.

Weaknesses

High employment turnover rate.

Seasonal sector (especially household furniture in thewedding season November to March).

Heavy investment in the working capital.

Very strict quality control required.

Opportunities

Increasing preference for the high quality products.

Construction/Renovation of houses and Offices create newopportunities.

Market share can be acquired from un-organized sectorthrough high quality and promotional activity.

Threats

Narrow market, as target market is high class.


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Quality & design of the Furniture needs to be considered veryclosely as the lifestyle of people is improving.

Established competitors.

CRITICAL SUCCESS FACTORS

Quality of raw materialThe furniture industry in Pakistan is dependent on the quality of theraw material available. Although high quality wood is abundant inPakistan but many times customer complaints arise due to the useof cheaper and low quality wood by the manufacturers. It has to beensured that furniture displayed in Showroom is made of highquality wood.

Attractive Design and Quality Finishing

The life style of the people is improving and they are getting morequality conscious. New tastes and designs are being adopted by thepeople. Special attention should be given to present latest designsaccording to local market demands & requirements. New designsand styles can build brand equity for the business. As there is high

competition in market, creation of new designs and styles, andsetting new trends is vital. As this proposed showroom business isexpected to target high class, it is likely to attract people living inposh areas of Gulberg, Defence and Model Town etc. and thefurniture should be able to fulfill their special needs. It is thereforemore important that furniture should be of latest design, accordingto new fashion and beauty standards than mere durability andhardness. We dont undermine the importance of durable furniturebut it is of utmost importance that furniture should reflect lateststyle and fashion so as to attract the relevant class of the society.

Sales promotion

Another critical success factor of this proposed pre-feasibility is theMarketing and promotion of the Furniture in the market. Salespromotion activity is necessary for market penetration.This involves the dedication and hard work from the marketingpersonal and detailed advertising through electronic Media alongwith the use of other automated marketing techniques.

Other Success Factors


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Advance Orders for sale can ensure the success of theBusiness.

Assurance to customers that furniture is made of seasoned(Dry) wood. Properly seasoned (Dry) wood ensures highquality furniture as it minimizes deforming due to dampnessin wood.

New designs and styles can build brand equity for business.

As there is high competition in market, to make the projectcommercially viable, creation of new designs ands styles andsetting new trends is vital

The location of Showroom is very important for success. TheShowroom should be located in heavily populated ordeveloping cities and its location within the city should inaccordance with the target market of the business.

Responsiveness to Customers' demands and requirements is

very important to stay in market and retain market share. Better customer service and after sale service to promote

business goodwill.

Competitive prices should be offered.

TARGET CUSTOMERS

Although, currently the Pakistans export of the wooden furniture isnot significant as compared to total International market but itsexports are increasing rapidly. Pakistans exports of woodenfurniture have increased by 34.33 percent in year 2008-2009.Internationally, Pakistans major trading partners are Gulf region,Australia, and USA, which are still negligible as compared to thevolume of international market. There is large scope of woodenfurniture in other countries like Spain, Germany, Italy, South Africa,etc.This proposed project is concerned with the domestic market of

Pakistan. The target market for this proposed project would be highclass living in posh areas of developed cities. The demand in theseareas is influenced by the number of new houses/offices built andold houses/offices renovated/reconstructed. The renovation andredecoration of households is a routine process in these areas.

MARKET ENTRY TIME

Though the demand for wooden furniture in domestic market existsthroughout the year (especially for office furniture & renovation

requirements), but it significantly increases during the period ofOctober to March because of the wedding season and hence the


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demand for the furniture almost gets doubled during this period.Hence, the prime time to enter into market is June so that theShowroom gets into commercial operations before the start of thewedding season.

PROPOSED BUSINESS LEGAL STATUS

The said project can be a sole proprietorship or a partnership andeven it can be registered under the Companies Ordinance, 1984with the Securities & Exchange Commission of Pakistan. Theselection totally depends upon the choice of the entrepreneur. Thisassumes the legal status of a sole proprietorship/partnership as thisdoes not involve heavy investment. Moreover less legalrequirements and costs are involved in forming, administration andrunning the sole proprietorship or partnership business. Lower tax

rates for this type of business legal status would be an addedadvantage.

PROJECT CAPACITY AND RATIONALE

The proposed project is capable of selling the complete range ofwooden furniture and other allied products to meet the demands ofthe domestic market out of imports and locally manufacturedfurniture through out-sourcing. The Show room will work 11 hoursday for 300 days.

PROPOSED LOCATION

The socio-economic conditions of the country and population havea direct influence on the local furniture demand. The Income levelof community and improved life style of people also effect the goodquality furniture requirements. Considering this fact the said projectcan be started in any posh area of developed cities like Lahore,Karachi, Islamabad, Sialkot or Faisalabad etc. It is howeverrecommended to establish the Project at Lahore - Gulberg. Thegeneral living trend of the people in the region considerablyincreases the scope for establishment of the proposed project.

MARKET INFORMATION ABOUT FURNITURE

According to Pakistan Economic Census 2005, out of the total 583thousand

manufacturing industries covered in the census, 10.8% were inWood & Wood Products including furniture. According to the


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census, in the urban areas the share of house hold establishmentsin wood products including furniture manufacturing was about 8%of the total household manufacturing industries. Area wise analysisalso depicts the similar trends. Details may be seen in the followingtable.

Province wise details are given below;Table 3: No. of Manufacturing Establishments by Status &Area

ManufacturingIndustryDivision

Status of Establishments

All Areas Rural Areas Urban Areas

Total HouseholdEstab.

OtherthanhouseholdEstab.





Manufacturingof WoodandWoodProductsincludingfurniture

63,087

9,549 53,538

30,799

8,963 21,836

32,288 586 31,702

REQUIREMENT OF WOODEN FURNITURE

In local market, the requirement for wooden furniture can becategorized into four types namely:

For newly built house;

For dowry; For renovation;

For Institutional buyer.The majority of customers in the domestic market belong to firstand second category. These customers require furniture for theirnewly built houses and usually buy range of products like bed sets,dining sets and sofa sets with other required furniture for theirentire house. In Pakistani society, Furniture is given as dowry.Therefore, its demand increases in the spring and winter seasondue to weddings. Basic requirement of these customers is bed setof new designs and styles. These types of customers also buy sofaset or dining set along with bed set. Initially entrepreneur should


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target these customers to establish the business and to increasethe customer base. These potential customers can play adominating role in the successful break through of the business.With the flourishing of tourism and hotel industry, considerablescope emerges for wooden

furniture in this sector. Large orders can be secured to supplywooden furniture to these hotels and resort.

IMPORTED FURNITURE

Furniture imported in Pakistan is normally of Italy, China & Spain.As this proposed showroom business is targeted towards high class,it is necessary to offer imported furniture. Due to its high attractionamong targeted market, it can generate significant revenue for thebusiness. Made in China - which had already hurt the local plastic

industry and has made inroads in toys, electronic items and otherproducts is all set to dominate the local furniture market. It is nowfeared that most of the people who had small businesses ofproducing furniture have now become importers of Chinesefurniture. Those in the furniture business revealed that some 200out of 500 factories in different localities of Karachi includingLiaqatabad, Landhi, Shershah and Gharibabad that were busy inmanufacturing small items of furniture like office chairs, TV trolleysand other items have been completely shut down and that theowners of these factories have become the importers of Chineseproducts.

The raw material used in making office chairs, TV trolleys and othersmall items are available at a higher price in the local market andChinese readymade products are comparatively less expensive somost of the manufacturers have decided to shut down theirbusiness and started to import the same item from China. Theforeign sources of furniture in Pakistan are China, Germany andItaly, however, they have not yet succeeded in grabbing localmarkets share of the heavy furniture. The quality of local heavyfurniture is higher and lesser in price, which includes complete bedset which is much better than the Chinese one because in thecustoms, freight charges are being charged according to the weightand volume of the item, and a Chinese bedroom set costs aroundRs 800,000/- when it reaches Karachi. However for the items whichfall in the light furniture category China has dominated the marketand has hurt the local industry to around 80 per cent. An attempton deco furniture and by using MDF chip board and fiber glassapproach, the domestic suppliers have been able to attract theconsumers again to the local markets as by using this approach themanufacturers have created decent designs and carvings on thebedroom sets and an excellent indigenous bedroom set is nowavailable in Rs175,000.

The Alliance of Market Associations Karachi has assured thegovernment if it caps the increasing prices of raw material and


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announces incentives to the manufacturers, the local smallfurniture industry would be reactivated and hundreds of sidelinedpersons could be re-employed.

Table 4: Furniture Import

Product Code (HS)anddescription

Importfrom

Value(000 US$)

Quantity(Nos.)

2003

2004 2003 2004

940310 Officefurniture, metal,

World 394 387 22966 23341

China 143 199 7131 8372

UAE 87 16 1823 690

940320 Furniture,metal,

World 534 741 33800 41155

China 279 328 14971 19622

UAE 103 111 3504 3185

Thailand 23 67 2338 6353

SouthAfrica

0 79 0 1230

940330 Officefurniture,wooden,

World 506 552 16651 20052

China 130 198 5981 8471

Malaysia 77 139 2499 5321

USA 100 73 2524 2117

Thailand 47 59 1105 1332

Germany 01 0 1934 0

940340 Kitchenfurniture,wooden

World 27 317 4211 11864

China 70 203 3019 8725

Italy 44 81 721 2227

940350 Bedroom World 400 791 16 19


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furniture, wooden

Philippines 0 309 0 4

China 125 151 10 9

Malaysia 54 100 1 2

UAE 91 53 2 1

Italy 51 14 1 0

940360 Furniture,wooden

World 698 1259 21960 43698

China 331 616 12091 27305

UAE 117 117 3451 4153

Germany 8 193 252 3691

SaudiArabia

99 98 553 570

940370 Furniture,plastic

World 115 175 23018 33931

China 47 130 6904 26837

940380 Furniture

of othermaterials, incl.cane, osier,bamboo/similarmaterial

World 372 530 17337 43345

USA 194 285 6062 21965

China 61 100 4046 7728

PROJECT MARKETING STRATEGY

MARKETING STRATEGYWhen marketing furniture for the first time, make use of electronicmedia (cablenetworks, television, etc.), websites, publicity and advertising intrade, Fashion and Interior Decoration magazines etc.In addition, sales promotion can be done at a reasonable cost inorder to develop new customers and keep in touch with yourcurrent customers. For example by a newsletter (by e-mail) one can

assure the customers that we are actively following latest interiordecoration trends in the Pakistan and are well-aware of the latest


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developments in quality standards and newer styles & fashion etc.In the correspondence, a constant, prompt and reliablecommunication is vital to build and maintain a long-term businessrelationship with your customers.

Brand Name

In our case the name of Furniture Showroom can be promoted.Thus after a while people believe in quality of furniture withreference to the Showroom name. We have For this purpose highquality standards must be maintained along with better customerservice.

Advertising

Advertising is another tool aimed at increasing the sale of furniture.Advertising in Print Media along with Electronic Media is vital forsuccess.In order to get the best out of investment, following should beclarified:

A clearly defined target group - Potential Buyers

A well-formulated message - What do I want to tell thecustomer.

TRENDS IN FURNITURE STYLE

In all furniture styles some significant trends are: Individual items of furniture can be used for different functions:flexible seating for sitting, reclining or sleeping; modular wallsystems and living room systems.Although newer homes are being built for smaller-sized households,there is ademand for larger sized furniture, particularly loungers or largesofas. People like to stretch out on sofas now rather than sitting inthe more traditional way.

Furniture for older people with a focus on comfort (e.g. higherseats). Part of the trend of making more use of the home space is toextend the home into the garden or onto a patio or veranda. Many households are full of furniture, so rather than overloadingtheir homes,consumers are looking for something with a simple elegance toachieve less ismore. Combined with this simple functionality, consumers want someemotional attachment with the item. For example, LED illumination

to enhance simple cabinet, invisible loudspeakers in internal doors,


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new coverings on handles that feel good to touch, flat screen TVswhich almost disappear into surroundings when not being used. Small visible legs, made of metal or wood, are an importantfeature at the moment for living room chairs, couches, armchairsand cupboards and small tables.

TRENDS IN MATERIALS, COLOURS AND SHAPES

Home furniture and furnishings are becoming more colorful. Thecolors used inupholstery furniture fabrics, and cupboard and cabinet fronts areloud and bold. The design and form concept in upholsteredfurniture remains voluminous. As far as materials are concerned,there is a decrease in the use of cherry in new lines. However,cherry, along with oak and walnut, are key materials for products at

the high end of the market. The shift towards furniture that is afusion of wood with materials such as steel, glass and other fabricsis now even more pronounced. The vogue is still very much for thedark, exotic look with oak and other wood species presented in anumber of guises, striped effect to emulate zebrano, heavilylacquered and most popular of all, stained dark, almost black.Modern technology is enhancing pieces with improved finishes andhigh-tech options.

Materials

Woods: Interior parts and primary and secondary frames of mostitems are made from lower quality wood like birch, ply andlaminates, while for exposed surfaces fine timbers are used. Lighterhard woods such as oak, beech, maple, alder, birch, cherry andhickory have proved more popular than pine. Rattan: fine wickerwork, bamboo, hemp, abaca and sea grasscontinue to beimportant materials, which are increasingly used in naturalinteriors. Metals: the metallic, hi-tech or industrial look is popular infurniture, being an eye catching element. Metals in simple formsare often combined with wood or glass. Stainless steel, chrome,wrought iron, aluminum and copper have become popular in thepast few years. Glass: smoked glass and other opaque finishes, rather than clear(cold) glass ispopular. Natural and acrylic glass is increasingly used incombination with othermaterials in tables, cabinets etc. New materials: Experiments are done with new materials:polycarbonates in matt finish, high gloss, transparent and in many

colors. Also, recycled polyester is increasingly being used inmodern items.


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Fabrics: these are softer in texture and appearance, with singlelight natural colors used as a basis. Small motifs, textured look,geometric or large colorful designs are possible. Floral designs,micro-fibers are still common and (soft) hi-tech fibers are gainingimportance.

Finishes: There is a trend towards high gloss finish in many colorsfor tables and Chests. There is also much use of polished,laminates, satin-finish, acid-etched, painted glass with neutral orbright colors; opaque lacquers; painted and enameled steel;anodized, polished and mat aluminum.

LAND & BUILDING REQUIREMENT

LandLand for the proposed business can be acquired on rent or it can be

purchased based on the judgment of the entrepreneur. It ishowever recommended to acquire the Land on Rent. Acquisition ofland by way of purchase is not viable for the project since theproject Is recommended to set up the project in posh area likeGulberg where the land price ranges between 20,000,000/- to30,000,000/-. The Land Rent is taken to be about Rs. 225,000/- per2000-3000 sq foot. Advance for rental showroom is 10,00,000.

SEGMENTATIONGEOGRAPHIC SEGMENTATION

It means dividing the total market on the basis of region, size,

rural and urban climate, market density. From geographic point ofview we are considering Lahore as our targeted market.City: LahoreClimate:

November February (winter)

March April (spring)

May August (summer)

September October (autumn)

DEMOGRAPHIC SEGMENTATIONDemographic segmentation includes factors like age, gender,

income, education, ethnic back ground and family life cycle.Income:

The people of Lahore are very wealthy. They had a lotof money to spend. We are giving them chance to put their moneyin a positive way.Our target markets income mostly ranges from150, 000-200,000per month.


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Social Classes:

Elite class

Ethnic background:

Asians

Pakistanis

Punjabis

Lahories

CUSTOMER SATISFACTION

Customer Satisfaction Determinants:

These are the factors for customer satisfaction and loyalty. Wewould strongly make these factors our policy.

Experienced staff

Knowledge of service provided

Communication

Reputation

Type of role/function contact


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Who they compare us with

Past and present experience

Marketing Mix: (4 Ps)

Product

Placement

Promotion

Price

PRODUCT

Our Products:Our product is different type of furniture goods

which include home and office furniture.

Home furniture

Office furniture

Home furniture:

Beds

Bedroom chairs and table

Wall mirror frame

Dinning set

Dinning cabinets

Dinning side-boards

Side table

Wall hanging frame

Office furniture


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Fully carved sofa with center table set

Fully upholsted sofa set

Console with mirror

Lounge sofa

Wall hanging frames

Wall mirror frames

Product Classification:

Consumer Product:

Our products are to satisfy our customer. We aim to give ourcustomers the best they want and deserve, but at their affordableprices. The satisfaction of our customer is our goal. We want to givethem a modern and spacious look.

Types of our Consumer Product:

Convenience Product:

Some products are relativelyinexpensive like side tables which have little shopping merits and

fewer prices.

Shopping Product:

As we deal with beauty and style so

customer is conscious and careful in choosing us among our

big competitors like:

Interwood

Furniture spot, etc.

o Homogeneous products:


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Our some services are almost

same like our competitors e.g. side tables and console with

mirrors. But our customer will chose us for all this stuff just

because of affordable price range and the best quality they

want in it.

o Heterogeneous products:

Our few products are different from others like;

Fully upholsted sofa

Fully carved sofa set

Dinning cabinets, etc.

These are the products which our customer will seek to

try and inspect for quality, style and uniqueness.

Specialty Product:

Our products are our specialty and

customers search it extensively and are reluctant to accept any

other substitute. Some heterogeneous products (mentioned above)

are our specialty for which our customer will say, NO SUBSTITUTE

PLEASE!

Adjustment to Product Mix:

Product Modification:

Style Modification :

With the changing international

styles of furniture we will have to change accordingly.


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Product Repositioning:

Changes in mindset :

As the mindset changes all furniture trends change with it. Also

any types of social event or occurrence can raise the need for therepositioning.

Declining Sales:

The decline in sales due to any reason can

compel us to renew our previous image.

Changing Demographics :

With the change in demographics of

our society like any kind of social or financial crises can change ourincome levels, our needs and wants and hence our demands. So

repositioning will be done in this case.

BRANDING:

o Brand Name:

Our brand name is COMFORT

SOLUTIONS

o Brand Mark:

o Brand Slogan :

THE ULTIMATE LUXURY

o Effectiveness of our Brand Name :


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A meaningful name is the soul of advertisement.

As our brand name is COMFORT SOLUTIONS

Is easy to pronounce

Is easy to recognize and remember

Is short, distinctive, and unique

Describes the product, use, and benefits

Has a positive connotation

Reinforces the product image

Is legally protect able

Type of Brand:

Private Brand:

Our brand is

private brand as we do not produce the furniture ourselves.

Advantages of Private Brands:

It will earn higher profits for us.

There will be less pressure to mark down prices.

PRICING

In the broadest sense, price allocates resources in a free-market

economy


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To the seller...

Price is revenue and profit source.

To the consumer...

Price is the cost of something.

In our business we have decided the prices to be such extent that itfulfils our cost easily and also attract the customers. For thispurpose we have deeply studied the market and carefully decidedour products and services prices.

Revenue

The marketing and promotion strategy of our product is such that

we shall gain our total cost in 15 months period in the form ofrevenue.

ProfitAfter 15 months as we have calculated we shall get all our

cost and then will start earning profit from our business.

We know very well the important of pricing so we have setthem according to a proper planning, that prices are not too high ornot too low, a price that equals the perceived value to targetconsumers.

PRICING OBJECTIVES

There are three different types of pricing objectives. They arebriefly explained in following.

Profit-Oriented PricingProfit Maximization is mainly focused in this type of strategy.

Satisfactory Profits are gained with this type of pricing. TargetReturn on Investment is very important.

Sales-Oriented Pricing

In this type of pricing the share of the product in the marketis increased and sale is maximized.

Status Quo Pricing


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In this type the prices are maintained on same level andsteps are taken to meet the competition prices.

Now, as our products and services are new to market andpeople, so we are applying the sales oriented pricing in our

business. According to this strategy, we shall try to maximize oursales through proper marketing of our products and services andhence capture the more and more market share for our business

THE COST DETERMINANT OF PRICE

Cost is basically of two types as listed below;

1) Fixed cost does not deviate as level of output changes.2) Variable cost deviates with changes in level of output.

Methods Used to Set Prices

Following methods are used to set prices

Markup pricingThe cost of buying the product from the producer plusamounts forprofit and for expenses not otherwise accounted for.

Key stoningThe practice of marking up prices by 100%, or doubling thecost.

Profit Maximization PricingA method of setting prices that occurs when marginalrevenueequals marginal cost.

Break-Even PricingBreak-Even Quantity= Total Fixed Costs

Fixed cost Contribution

Target-Return PricingFixed cost Contribution = Price - Avg. Variable Cost

Now in our business all of the above points are taken underconsideration and the pricing of products is done. We have adoptedall possible ways in deciding the prices of all products and services.

REGAINING PRICE CONTROL

Methods Used to Regain Price ControlFollowing methods we are using to regain our price control;

Avoid business with price-cutting discountersOur strategy is not to deal with price cutting discounters.


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Package marked with selling priceOur products are marked with selling prices and services arealso provided on a fixed price only.

Develop brand loyaltyWe shall try to develop brand loyalty in our customers by ourgood services and beautiful environment and soft dealing.

Pricing strategyWe have adopted such framework that our products and

services get more and more popularity in less time due to attractiveprices. At start prices are set lower than our competitors, but assoon as our products start to capture a strong position in customersmind, the prices may be altered according to business conditions.The direction of price movements is towards capturing more and

more customers at the start of business.Setting of pricesFor the setting of prices, we are applying the following steps;

Establish pricing goals

First of all pricing goals are set. Our main goals are to

earn revenue 10-15% more to our cost in first 6 months. So we

are setting our prices in such a way that we achieve our goals.

Then after 6 months we can change our pricing plan.

Estimate demand, costs, and profits

Estimation of cost, demand and profits are made before

setting the prices, because all these depend on pricing.

Choose a price strategy to help determine a base price

At the start of business, the prices set are called base

prices. So base prices are set to be such extent that they mayserve as good attraction to customers.

Fine-tune the base price with pricing tactics

Tactics are adopted in determining the base prices, such

as low prices than other same standard brands, attractive

packages for regular customers, better quality in same price

Prices (depending on the design)

Beds (Rs 100,000-200,000)Bedroom table plus chairs (25000-35000)


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wall mirror frame (20000-30000)dinning set (80,000-140,000)dinning cabinets(50,000-70,000)Dinning sideboard (30,000-40,000)Carved sofa with center table set (130,000-200,000)

Fully upholsted sofa set (85,000-150,000)Side tables (7,000-15,000)Console with mirrors (20,000-50,000)Wall hanging frame (10,000-30,000)Lounge sofa and cabinets (40,000-70,000)

PLACEMENT

o Location/Site:

We have opened our furniture

showroom in GULBERG Lahore.

o Building Structure:

We have got a showroom at rent,

which is a single story spacious building with a basement.floor area is 2500 sq ft.

o Reason to choose this Site:

We have selected

Gulberg for our business because there is no strong

competition in this area. As there is only one well known

showroom in this particular area so it is advantageous to us

to open furniture showroom here.

o Integration into Sections:

We have chosen basement as our inventory. The

basement will serve as a Godown for us. Immediately afterentrance we have got our reception.


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PROMOTION

Essence of a starting business is its promotion & marketing

strategies; we are well aware of this fact and have chosen following

marketing strategies.

First of all we will have an inaugural show for which

proper invitation cards will be issued to guests.

The chief guest of our Inauguration Ceremony will be

WASIM AKRAM.

In inaugural show especially prepared CD in which all

positive aspects of our showroom are narrated will be shown to

guests.

After Inauguration Ceremony a grand dinner, catered

by DHABAS will be served.

At the start of our business we will offer our

CELEBRATION PACKAGE for 30 days which include following

offers.

1. Get a bed and have two side tables free

2. Get a dinning set have a console free.

Coverage of inauguration show along with details of

celebration packages will be advertised through local cable

channels and local newspapers.

Pamphlets regarding celebration package details will be

distributed in near by public areas and housing colonies.

Proper advertisement will be done through billboards,

local newspapers and local cable T.V channels.

PROMOTION PLAN

COMFORT SOLUTIONSmade a very strong promotionalplan for its furniture showroom in Lahore.

The main mediums used for promoting it are as under:Promotional Budget:

Total budget for promotion 55lac

Budget for electronic media 15 lacBudget for print media 15lac


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Budget for bill boards 25lac

ELECTRONIC MEDIA:We have selected following channels for our promotional campaignin the local cable of Faisalabad.

CableChannels 5Cost per day 10000 RsNo of days 150Total cost 15 lac

PRINT MEDIA:

NewspaperThe News (Sunday) back page(colored)Rate 40,000 per day4 days a month 40,000 x 4= 1.6 lac3 months 1.6x3=4.8 lacNawa-e-waqt (Sunday) center page (colored)Rate 20,000 per day4 days a month 20,000 x 4 = 0.8 lac3 months 0.8x3=2.4 lac

PostersAmount 50,000Size of poster (1.5 X 1) ftCost per poster 4.20 RsTotal cost 50,000 X 4.2= 2.1 lac

BrouchersAmount 100,000Size of poster (11 X 8.5) inchesCost per broacher 3.25 RsTotal cost 100,000 X 3.25 = 3.25 lacBILL BOARDSSize 10 Bill boards (10 X 20)ftMonthly rate 50,000No of months 3Cost 3 x 50,000 x 10=15 lacSize 5 Bill boards (15 X 45)ftMonthly rate 60,000No of months 3Cost 3 x 5 x 60,000= 9 lacTotal cost of bill boards 24 lac


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Some of our unique designs


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furniture showroom

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