market plan report for the product vintage wood

8/8/2019 MARKET PLAN REPORT FOR THE PRODUCT VINTAGE WOOD

1/30

MARKET PLAN REPORT

FOR THE PRODUCT

VINTAGE WOOD

A STAR IN THE READYMADEFURNITURE INDUSTRY THAT CTARES

BEST OF THE BEST

PREPARED BY MIRZA NASIR ALI AND MOHAMMAD ZAHID


2/30

Executive summary

The growth in economy over the last decade has added to the purchase

power and lifestyle of the population in Pakistan. Home and office furniture is

widely used in Pakistan but normally people do not care for style fashion or

trend majority of population uses furniture for as long as it survives however

after the growth in economy @7% for the last five years a population of 72

million exist as middle class in Pakistan and the per capita income has been

reported as 1000US dollars in 2007 this leaves a vast majority of the

prospective customers to be exploited Vintage Wood is the brand name of

ready made stylish elegant and expensive giving high value quality and

satisfaction to the customers who care for the value and who are ready to

afford the cost of value.A limited number of people being 15% of the

population nearly 28 Million have earned so much that they spend

Rs.1000000/- to 2000000/-average on their life style a year

Vintage is a company having strong financial support from the leading

business company having stakes in banking insurance and export oriented

industries like textile and leathers. Therefore an initial investment is

expected to grow from these stakes holders to establish this limited liability

company at 375 million besides having availability of workshops ware houses

show rooms at The major cities like Karachi,Lahore Rawalpindiand Peshawar

company may get logistic and human resource support from the existing

industrial setup of the directors.

Company intends to hire local and foreign consultants to develop modern

fashionable stylish and trendy readymade furniture for the nova riches class

grown over the last decade and the corporate clients of the business centers

developed like banking oil & Gas Stock brokers Exporters and Real estate.

The company will start manufacturing work in Peshawar so that wood is

easily purchased and cheap labor is utilized. Marketing accounts and


3/30

distribution network will be controlled from Karachi as professionals are

easily available here.

Company intend to get business of 100000000/- in the first year as four new

banks are going to open besides two oil exploration companies have been

awarded liscence from government. Government has itself announced

development work from American aid and world bank finance for which two

European one Chinese and one American company has to start office at

Karachi and Islamabad in six months.

Once established company will regularly get orders from all leading

multinationals. The future of the company is bright as there is no such

concept of modern furniture in Pakistan the furniture industry in Pakistan is

trivial and mainly based on producing customary items or decorative

furniture for export rest of the furniture is mainly imported this is not a

developed trade or industry.Vintage wood will be the leader and winner.


4/30

Current Situation - Market analysisFurniture industry in Pakistan is trivial and mainly based on producing

customary items or decorative furniture for export rest of the furniture ismainly imported this is not a developed trade or industry.


power and lifestyle of the population in Pakistan. Home and office furniture iswidely used in Pakistan but normally people do not care for style fashion or




reported as 1000US dollars in 2007 this leaves a vast majority of the

prospective customers to be exploited A limited number of people being 15%

of the population nearly 28 Million have earned so much that they spend

Rs.1000000/- to 2000000/-average on their life style a year

There is great vacuum as no corporate body with experience skill trained

human resource and capital exists in Pakistan


5/30

Company intend to get business of 100000000/- in the first year as four new

banks are going to open besides two oil exploration companies have been

awarded liscence from government. Government has itself announced

development work from American aid and world bank finance for which two

European one Chinese and one American company has to start office at

Karachi and Islamabad in six months


6/30

Market DefinitionPakistan is a country of 180Million people developing at the growth

rate of 7% for the last five years having a middle class of 72 millioneducation rate at 51% per capita income at US dollars 1000 having

great potential being still an untapped market

Market Size

The market company intends to target has a volume of 28 million

besides the growing multinationals and local companies in the field of

banking oil & Gas construction stock market and real estate

Market SegmentationCompany intends to target niche in the general population that has

made real money over the past decade this recently grown nova riche

class is intending to assume new identity and shed its old trivial

identity this class is suffering from a change phenomenon showing

their wealth in fancy cars high homes banglows foreign trips and

political fueds.

Besides the development expenditure of the government has invited a

number of multinationals in Pakistan therefore a buness niche is also

available

Competition

There is no competition in this field as Pakistan furniture industry is

not developed enough to have many corporate entities in the industry

manufactures either focus on export or prepare small scale products

having limited rage .Good quality furniture is normally imported which

is costly due to heavy government taxation and duties.

Direct Competitor


7/30

There are no direct competitors

Indirect Competitor

In direct competitors are the importers of furniture

Competition and market share

The Market share is open to a sound financial corporate entity having

experience skill and preservance.

Competitors strengths and weaknesses

As there are no direct competitors indirect competitors are importers

who are badly struck by the government duties besides they can provide the

whole range of latest furniture and interior designing

Market trends

The Novaa Riche market and the growing multinationals are looking for a

financially strong technically competent corporate entity which could caterits interior designing and quality furniture demand. The nich being targeted

is waiting to be catered pampered and spoiled.


8/30

PESTEL Analysis

Economy


power and lifestyle of the population in Pakistan. Home and office furniture is

widely used in Pakistan but normally people do not care for style fashion or




reported as 1000US dollars in 2007


9/30

Politico-legal

Politically though Pakistan is going through turbulent times due to war on

terror and its aftermath.But funds have ben flowing from abroad and

economy is growing at the rate of 7%.Politically stage is set for the

investment in pakistan and governmet has lifted nearly all restrictions on

manufacturing industry in pakistan infact government is encouraging the

manufacturing industry by allowing tax rebated and special; treatment in the

export processing zones and tax exempt areas like northwest.

Demographic

Pakistan is a country of 180Million people developing at the growth rate of

7% for the last five years having a middle class of 72 million education rate

at 51% per capita income at US dollars 1000.52% of the population is


10/30

female 54% of the population is under the age of 28 15% population spend

on lifestyle ranging from 1000000/- to 2000000/ a year. There are 39000/-

corporate companies in Pakistan out of same 2174 are public limited

companies

3.4. Technology

In the instant business technology is not so advanced in Pakistan

however expert technicians and labour is available in plenty

.With the import of latest machinery and technical collaboration

of any known world company high scale manufacturing van be

carried out on commercial sacle.


11/30

Ecolo

gical (Natural)

16% of the Pakistan area comprised of the woods any industry

based on wood supply will have effects on environment which is a

matter of concern however cheap smuggled logs from Afghanistan

are easily available in the northwest.


12/30

Sociocultural

Socially and culturally Pakistan is suffering from change in the new

millennium majority of the population although fundamantle but the

economic development in the last decade has brought them near to the free

market economy concepts having openness liberalism and enlightment


13/30

SWOT Analysis

(Internal) Strengths

High technical standerds

Sound financial support

Trained human resource

Logistics and warehousing available

(Internal) Weaknesses

New experience

Heavy initial investment

Developing internal controls

(External) Threats

Volatile law and order situation

Unstable political situation

Variemg intrest rates

Labour unions and political influance

(External) Opportunities

No competition


14/30

Government rebates

Funding for War on terror

Cheap labour

Smuggled cheap wood


15/30

Consumer Analysis

Nature of the buying decisionCorporate client is either a foreign company or companies influenced by the

foreign trends therefore looking for the modern designs quality while

negotiating on the prices and asking for the credit for a reasonable time.

While on the other hand Nova Richie segment of local society is looking for

modern designs as fads they do not argue for price once satisfied by the

design and qyality

Participants

Participants in the purchase decisions of the corporate entities are

gatekeepers technical persons and decision makers therefore it is

imperative to be in contact with the gate keepers and technical persons.

on corporate customer need to be contacted through focused marketing

and direct contact.

Demographics

28 million of the population is the expected client of the new design

furniture which is situated in two major provinces Sindh And Punjab out of

same majority of the population in Sindh is concentrated in Karachi

having a mixture of all etinic identities .Punjab population is concentrated

in cities like Lahore,Faisalabad,Rawalpindi and Multan being ethnic

Punjabis relatively small population is pushtun in northwest.51% of the

population is female 81% of this population is educated and 60% of this

population is below the age of 40.Corporate entities are majority foreign

Psychographics

ff


16/30

The local population being targeted has recently accumulated

wealth over the past decade therefore highly pushed by the money

they have earned easily raedy to spend on luxury show off.

Corporate entities majority being foreign have modern inclinations.


17/30

Mission Statement and Vision Statement

Mission StatementWe seat you with l luxury, quality exquisite style and beauty that youdesired at work place and home

Vision statement

"To provide high quality products that combine performance with value

pricing, while establishing a successful relationship with our customers and

our suppliers.


18/30

Objectives

be clear

be measurable, and have a stated time frame for achievement.

Increase product awareness among the target audience by 30 percentin one year.

Inform target audience about features and benefits of our product andits competitive advantage, leading to a 10 percent increase in sales inone year.

Decrease or remove potential customers' resistance to buying ourproduct,


19/30

Market Segmentation Bases

Company intends to target niche in the general population that has made

real money over the past decade this recently grown nova riche class is

intending to assume new identity and shed its old trivial identity this class is

suffering from a change phenomenon showing their wealth in fancy cars high

homes banglows foreign trips and political fueds.

Besides the development expenditure of the government has invited anumber of multinationals in Pakistan therefore a buness niche is also

available

Market Positioning

Product position will be customer oriented as the product targets rich nichetherefore it will offer quality style and modern designs to affording customers

Positioning Strategy

More for More

Slogan


20/30

We pay you back unmatched quality and luxury, Rest Assure

Marketing Strategy Product

Product Description

Company intends to prepare furniture of high quality style and luxury fordomestic and business use for the elite of the country

The company will produce furniture in wood ,metal and artificial wood wherethe stress will be given to style luxury to suit the target market

Company will provide lifetime warranty of its products for the materialquality and 10 years service warranty. Those clients purchasing furnitureworth 500000/- will be provided free of cost interior designing consultancy .


21/30

The brand name is vintage woodsthat reflects the origin of furnitureit will fascinate those customers who really love costly wood furniture

Vintage Wood is the brand name of readymade stylish elegant andexpensive giving high value quality and satisfaction to the customers whocare for the value and who are ready to afford the cost of value


22/30

BCG Analysis

As the market is hungry for the quality furniture product therefore our new

quality product backed by the sound financial and technical support is likely

to be star of the market


23/30

Marketing Strategy Price

Pricing Objectives

The price will reflect the quality of the furniture and

status of the customer

Pricing Method

Value based,

Pricing strategyNot a single piece will cost less than 10000/- Rupees. Price tag will be for

the theme products all the products will be offered in a theme or package

aimed at the status and desire of the customer company will charge for the

quality and brand equity besides status of the customer


24/30

Marketing Strategy Distribution (Place)

Geographical Coverage

The company will first stress the elite customers located at the businesscenters of Pakistan like Karachi Lahore Faisalabad,peshawar and Islamabadrest of the area will be covered from these centers


25/30

Distribution channels

Company will not hire any distributor or middle man it will market itsproducts on its own a marketing department will run showrooms at all thefour cities these showrooms will not be more than on in any city, howeverawebsite with complete coverage of the company products will be launchedwith the launch of product that will offer a tour of the company productsbesided e-purchase facilities


26/30

Marketing Strategy Promotion

Promotional GoalsTo attract the gentry interested in high quality stylish modern furniture

Sales Promotion

Company will use English newspapers journals media channels to attract thetarget customers besides foreign business papers like financialtimes,economist,Newsweek will also be used for publicity


27/30

Publicity / Public Relations

Company will hire public relation managers from media and show businessto develop public relations at different entertainment and recreation clubssports places where target customers are interested

Direct Marketing

Company will reach the customers through premises visits mail, advertisingand internet


28/30

. Budget

Company has initially a equity of 375 Million sponsored by the consortium

.besides this cash equity company has support of free logistic, warehousing

human resources of the consortium which is equivalent 250 million totaling

to 625Million rupees


29/30

THE END


30/30

market plan report for the product vintage wood

Documents