Marketing plan venetian blinds


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Marketing plan venetian blinds

  1. 1. MARKETING PLAN FOR VENETIAN BLINDS - By Group V2 Dhananjay Dixit Jyothsna Ch Kshitij Agarwal Priyance Agarwalla Vaibhav D Chavan 1
  2. 2. Executive Summary:With the advent of the contemporary new age offices and classrooms, the aesthetic appeal hastaken a key priority. The concept of venetian blinds has taken a step in the said direction. Theyhave become quintessential in defining the aesthetics from an office boardroom to a new ageclassroom.We have compared five major players in the venetian blind business in the Udupi - Manipalregion. Both markets have huge untapped potential in terms of upcoming educational institutesand construction of high end apartments. As already discussed, venetian blinds serve as a keyrequirement in any office or classroom as it protects us from the scorching sunlight and gives asophisticated finish at the same time.There is undoubtedly immense scope in the market but there co exists an intense segmentrivalry. In this scenario it is mandated for a company to do develop a marketing strategy and doa thorough market research. It should keep itself aware of the market demand and developstrategies to leverage this to its advantage. Among the various points covered, the inlinestrategy focuses on market forecast, revenue model for setting up new venetian blinddistribution centers and month to month market budget.Companies in this kind of scenario should make efficient marketing it prowess and use thestrategy and the marketing tools effectively to gain the position of a market leader. 2
  3. 3. Table of Contents: 1. Executive Summary……………………………………………………………………..2 2. Table of Contents………………………………………………………………………..3 3. Summary of the Current Situation……………………………………………….4 4. Focused Assessment of the Marketing Opportunity…………………..11 5. Financial and Marketing Goals…………………………………………………..13 6. Summary of Company’s Marketing Strategy………………………………16 7. Month to Month Marketing Budget…………………………………………..17 8. Forecast of Month to Month Unit Sales and Revenue………………..18 9. Monitoring and Evaluation of Action Plans………………………………..20 3
  4. 4. Summary of Current SituationVenetian blinds are usually seen in rarefied corporate houses with most homes sportingcurtains. However, in households internationally, blinds have been ruling the roost for long withtheir ratio to curtains being 70:30. While a few companies operating in this space, the attentionhas been mostly on corporate interiors. The $1.7-billion world leader in window coveringproducts Hunter Douglas has been supplying to Indian business houses since 1995.The presentfocus of this market is to attract as many household customers as possible. According to aresearch, the market potential for this segment is 5 million blinds per annum in India but amindset change is necessary. The low-maintenance feature of blinds is their biggest plus. Thereare many retail outlets and showrooms all over India including the one in Udupi where a marketresearch of venetian blinds was conducted.Customer Analysis:Need:The need for venetian blinds is a functional need as well as an aesthetic need. Initially Venetianblinds were seen as an advantageous substitute for curtains because:1) The amount of sunlight entering a room could be controlled.2) It helped to regulate the brightness in the room, thus controlling the ambience.3) It provided a way of seeing what was happening outside along with giving privacy.With time venetian blinds became more of a lifestyle product that matched the present tasteand convenience of consumers.Present and Potential Customers:Venetian Blinds is both a B2B and B2C product. Its present customers are organisations,schools, colleges, offices where the requirement is in mass. However of late attempts havebeen made to expand the market and get more and more households under its benefits. In the 4
  5. 5. beginning it might have been suited for corporate offices only but its demand in the domestichousehold market is increasing.Reasons for Purchase:Venetian Blinds provide a huge value to its customers. A reasonably priced product of highquality provides both value for money and also utilitarian value. Customers have the choice toselect their type and the opportunity to actively participate in the design, look, and feel of theproduct. It seeks to fulfill the following benefits that are important to customers: Selection - A wide choice of current and tasteful colors, patterns, types of high quality fabrics Accessibility - The buyer can walk out of the store with the fabric they need to begin their project. Customer Design Services- Employees have a design background to make them a resource for the customer. This enables customers to benefit from suggestions regarding the selection of their fabric and related products in a manner to complement their design choice. Competitive Pricing - All products will be competitively priced in comparison to other channels of distribution, such as catalogue sales. It is the cheapest as compared to other types of blinds and hence most demanded product. After Sales Services- From helping in selection of fabric, type, pattern to installation of the blinds and its cleaning at regular intervals, skilled employees are adept at their task. Important Features: o Durability o Easy Maintenance o High moisture and Dirt Absorption Capacity o Sound Absorption Capacity 5
  6. 6. External Analysis:Changes in Technological factors can serve as a great challenge for the venetian blind industry:Innovations such as ROTO enabling electronically operated automatic rotation of blinds havehelped boost the sales of the product. Such technological innovations is making the industrymore competitive.Innovations and Advantages:- Different positions of venetians, such as diagonal mounting and/or lowering down, becomepossible.- Manner of rotating the venetians in between the window-panes is completely innovativecompared to other models existing in the market.- Durability of blinds increases considerably due to the airtight space between the insulatingwindow-panes.- Sound and heat insulation qualities of windows are improved.- This type of blinds is technically, financially and ecologically more favourable.- Aesthetic aspect of venetians improves (no need for strings and sticks to operate the blinds).- Final user has no need to mount the venetians.- No need to clean the venetians.Marketing MixProduct:A Venetian blind has horizontal slats, one above another. Venetian blinds are basic slattedblinds made of metal or plastic; they are suspended by strips of cloth called tapes, or by cords,by which all slats in unison can be rotated through nearly 180 degrees. The slats can be rotatedsuch that they overlap with one side facing inward and then in the opposite direction such thatthey overlap with the other side facing inward. The product faces stiff competition from varietyof substitutes such as sunscreen roller, honeycomb blinds, curtains, panel grid blinds to name afew. The product is in the “Growth Phase” in the Product Life Cycle. 6
  7. 7. Price:Compared to all the types of blinds venetian blinds happen to be the cheapest. Howeverdepending on the choice of fabric and pattern the price varies in India .Venetian blind pricesrange from Rs 650 to Rs 1500 per meter square.Promotion:Product promotion is an act of advertising a good or service with the short/long term goal ofincreasing sales. There are no shortcuts to success in marketing a venetian blinds business. Inthis industry, the application of fundamental marketing tactics is more valuable thanpromotional fads and gimmicks. An effective way of marketing venetian blinds is viralmarketing. Although there is little control over whether or not the products go viral, there arethings that can be done to nurture the brands viral capacity. Product giveaways, community-building, online discussion channels, and other techniques may not guarantee that the productswill go viral -- but they definitely improve the odds.Place:Venetian Blinds are easily available and are characterised by their quality, assortment, featuresand guarantees. They are available at retail stores, showrooms or through a strong network ofdealer distribution. These blinds can also be purchased online. 7
  8. 8. SWOT Analysis:The following SWOT analysis captures the key strengths and weaknesses within the company,and describes the opportunities and threats.Strengths Strong relationships with suppliers that offer credit arrangements, flexibility, and response to special product requirements. Excellent and stable staff, offering personalized customer service. Great retail space that offers flexibility with a positive and attractive atmosphere. Strong merchandising and product presentation. Good referral relationships with complementary vendors, local realtors, and some designers. High customer loyalty among repeat and high-dollar purchase customers.Weaknesses Access to capital. Cash flow continues to be unpredictable. Owners are still climbing the "retail experience curve." Location is not in a heavily travelled, traditional retail area. Challenges of the seasonality of the business.Opportunities Growing market with a significant percentage of our target market still not knowing we exist. 8
  9. 9. Continuing opportunity through strategic alliances for referrals and marketing activities. Benefiting from high levels of new home construction. Changes in design trends can initiate updating and therefore sales. Internet potential for selling products to other markets.Threats Competition from a national store; or a store with greater financing or product resources could enter the market. Continued price pressure, reducing contribution margins. Dramatic changes in design, including fabric colors and styles, creates obsolete or less profitable inventory.Competition:Competition in the area of decorator fabric comes from three general categories, traditionalfabric retail stores, catalogue sales, and discounters. Competition Catalogue Retail Stores Discounters Competitors 9
  10. 10. Retail StoresCurrent local competition includes the following: House of Fabrics Warehouse Fabrics Interior Designers Website ProvidersCatalogue CompetitorsAn increasing level of competition is anticipated from catalogue sales. Recent trends indicatesincreased interest in offering fabric, window designs, and blinds and related products throughthis increasingly popular channel of distribution. Catalogue sources do not offer customers theoption to see, touch, and have the fabric in their homes. Price is the most significantcompetitive factor this product source presents.DiscountersChannels of distribution continue to shift in favor of discounters, who account for a significantportion of the growth in the industry. As consumers experience lower levels of disposableincome, discounters leverage frequent store promotions to entice frugal, value-orientedconsumers. One of the biggest criticisms of discounters is their failure to offer a quality serviceexperience and their failure to present inviting displays to promote sales. These discounters,along with specialty store chains, present one of the most severe competitive threats forindividually-owned specialty stores. This is partially due to extensive promotional efforts, priceadvantages, and established relationships with their vendors. 10
  11. 11. Focused Assessment of the Market Opportunity:Udupi and Manipal called as twin towns still exhibit some characteristic differences. WhileUdupi is characterized by local residents and floating population of devotees visiting thetemples, Manipal is known for its student population and people associated with them.Manipal University, with over 20 constituent institutions and others, together has more than20,000 students on campus. The development of the region as an education hub and thegradual industrialization process taking place in the district are making an impact on the real-estate scenario. The real-estate sector in Udupi-Manipal region has been witnessing a rapidgrowth over the years. There is a marked development of the landscape of these towns over adecade. The increasing demand of both residential and commercial space has boosted newconstruction activity in these towns.Recent Developments in Infrastructure Projects Recent Developments In Infrastructure Around Manipal Proposal of opening a shopping mall near syndicate circle. Building new establishments near End Point to shift the headquarters of government offices. Received consent from NAA to establish a new airport 20 Kms away from Manipal. Large scale construction of premium flats around End Point road.Also there is a witnessed growth of middle class and upper middle class population in the townand their disposable incomes. This growing middle class has caused an increased demand forcustom-designed decor and furnishings. This extends from residential design to other sectors, 11
  12. 12. such as public and private offices and retail centers. Such demographics make this region as anideal market for fashionable and utilitarian Venetian Blinds.The market opportunities in the region can be assessed in terms of commercial usage anddomestic usage and also in terms of blind types that is wooden, aluminum and PVC.Venetian Blinds New Construction RefurnishingCommercial Usage Wooden, Aluminum, PVC Wooden, Aluminum, PVCPrivate Usage Wooden, Aluminum, PVC Wooden, Aluminum, PVCMarket Opportunities Type-wiseWooden Venetian Blinds:The slats of wooden Venetian blinds are made from wood. They are generally preferred inhomes to give an exotic and elegant look to the interior. Wooden Venetian blinds are one ofthe most expensive types of Venetian blinds. They are also available in a range of differentcolors and can be customized according to the needs of an upper middle class premiumcustomer.Aluminum Venetian Blinds:Made up of aluminum these blinds are light in weight and durable in nature. A potential targetmarket for these can be commercial spaces like offices, institutions retail outlets etc. Aluminumblinds are known for its utilitarian value, a point of difference (POD) with respect to competitiveproducts.PVC Venetian Blinds:Generally, PVC Venetian blinds are used in bathrooms. This is because these blinds are able todeal with a steamy atmosphere. These blinds are long lasting and are also rather inexpensive.These can majorly be targeted to newly constructed flats and houses and also offices in theregion. 12
  13. 13. Financial and Marketing Goals: The below table lists some of the major venetian blind manufacturers in India, most of the manufacturers listed below are reputed names in the venetian blind business and operate on a pan India basis. Also listed below is the Venetian blind type manufactured by each firm.Name of the Company Venetian Blind Material PVC Aluminum Wood Pramay Enterprises ✓ ✓Soft Line Impex Pvt. Ltd ✓ ✓ Sourabh Engineering ✓ ✓ ✓ works New Mangalore ✓ ✓ EnterprisesCorporate Solutions Inc. ✓ ✓ The following marketing goals are suggested: 1. Focus on the upcoming real estate growth in Manipal and Udupi: With its proximity to Mangalore, Udupi has witnessed a phenomenal growth in the recent years. This growth provided the Venetian blind dealers to tap the growing potential. High end apartments can be the primary target segments for B2C customers. 2. Educational institutes in Manipal: Venetian blinds have primarily been a B2B product. It finds for itself huge applications in classrooms, faculty rooms etc. Manipal has traditionally been a student’s town. With new universities and educational institutes coming out in and around Manipal, B2B selling can reach new heights. 3. More visibility in Trade fairs and increase in promotions: Trade fairs give a company the chance to promote its range of products to a variety of customers in one single place. If a company dealing in venetian blinds promotes itself in a trade fair, then it can reach out to the target segment and a much lesser cost. 13
  14. 14. 4. Innovation in the product line: Innovation is the key for survival in today’s market. Even the firm with the highest market share cannot afford to relax till it strives for innovation.5. Effective distributor network: An effective distributor network will ensure quicker delivery to the customer and will lessen the turnaround time. Cost of setting up a new distributor outlet: Cost of setting up the outlet Udupi Manipal Rent 5000*12 4000*12 Staff 100000*12 60000*12 Total 1260000 768000 Cost of setting up service centre Tools/Equipment 50000 50000 Staff 2*5000 2*5000 Overheads 10000 10000 Total 1330000 838000 The estimated cost of implementation of setting up a new Sales Personnel is: Udupi Manipal No. of personnel 2 2 Fixed pay per resource 7500 7500 Commission on sales 10% on the Selling Price 10% on the Selling Price Total 15000 + Variable 15000 + Variable6. Efficient installation personnel: Company can leverage this factor during their promotional activities. Efficient personnel can be synonymous to quality and after sale service. 14
  15. 15. 7. Customization for each customer: Every customer is unique and every customer has unique requirements. The company should emphasize on educating the customer about the degree of customization offered by the company which will suit their requirements. 8. Product development: As understood from the market research, there are primarily 3 types of venetian blinds available in the market. Depending upon the material type, each kind of venetian blind finds a different application. Moreover there is a trend to use a Venetian blind made of particular material in a given setup. There are three types of Venetian blinds available in the market. PVC Aluminum Wood Material Features Typically Price (Per used in Sq. Mt.) PVC A recent development in Offices, 650/- venetian blinds Classrooms Has a typical glazed finish and high durability Aluminum One of the oldest forms of Factory shop 1000/- venetian blinds floors, High durability and places strength where rough usage is expected Wood Wooden venetian blinds Luxury 1500/- have a high aesthetic appeal apartments, Moderate strength and High end moderate durability officesMore research into the above venetian blind types is required to increase the range of productoffering. Innovations in the above products will lead to increase sales which will fuel the growthof the companies in the long run. 15
  16. 16. Summary of Company’s Marketing Strategy: 1. Growth Strategy: The companies should look to diversify its customer base by trying to locate its distribution outlets near areas where potential offices/ educational institutes may come up. This will help it to anticipate its potential customers and will give them an edge over competition. Moreover having trained service personnel near the area of construction will reduce the turnaround time. 2. Sales Strategy: Since the main sales of the companies will be through the B2B channels. It is essential for the companies to understand the difference in requirement for each customer. The companies should be in a position to understand a range of customer requirements and promote its products by showcasing its range of products. 3. Pricing Strategy: If a company improves its efficiency by more efficient production methods and minimize the overhead costs in its distribution centers, then it will certainly have a price advantage as compared to its peers. It can reduce the price of its products and thereby increase its sales volume. 4. New Product Design Strategy: Innovation is the key for better sales. Coming up with concepts which will attract the buyer is a way to increase your sales. The new product design strategy should take into factor the new trends coming in the business and the forecasted sales in the market. 5. Competitor Strategy: Since there are already a number of companies and their distributor network in this area, the amount of competition is bound to be intense. However there has to be a market leader in every segment and a company which keeps in regular touch with its past and potential customers will have an advantage. Regular promotion through trade fairs and incentives to the distributor personnel by linking it to the volume of sales are some of the factors which might prove to be useful. 16
  17. 17. Month-Month Marketing Budget:The month-month marketing budget for the first year of implementing this strategy is asfollows: January February March April May June Salaries of Marketing Personnel 20000 20000 20000 20000 20000 20000 Direct Sales Force 30000 30000 30000 30000 30000 30000 TA/DA 2500 2500 2500 2500 2500 2500 Promotional Fairs 2000 2000 2000 Miscellaneous 1000 1000 1000 1000 1000 1000 Total 55500 53500 55500 53500 55500 53500 July August September October November December Salaries of Marketing Personnel 20000 20000 20000 20000 20000 20000 Direct Sales Force 30000 30000 30000 30000 30000 30000 TA/DA 2500 2500 2500 2500 2500 2500 Promotional Fairs 2000 2000 Miscellaneous 1000 1000 1000 1000 1000 1000 Total 53500 53500 53500 55500 53500 55500The direct Sales Force includes salary and commission on the number of units sold (4 DirectSales Personnel receiving 7500 each per month). This is to incentivize them to push sales.Venetian Blinds have a derived demand; its demand depends on the demand for new houses,offices i.e. Real Estate. The Real Estate has a season during October – April/May. SoPromotional Fairs are organized during these months every alternate month. 17
  18. 18. Forecast of Month-Month Unit Sales and Revenue:The total increase in the residential houses is 3224(25824 from 22600) in last 10 years. Out ofthese approximately 33% are middle- middle class houses. Approximately 15% houses arehigher and upper middle class houses. Remaining are the lower- lower class houses and privateown properties. Here our target customer is higher middle class residential houses. We areopting for direct marketing to builders and developers through direct sales force, our target isto achieve 40% market share in this fiscal. Growth perspective for the construction sector isvery high as we can see many high end property budgets coming in near future.Also increase in offices around the city is 265(no.) in last 7 years. Out of these almost 60% aresmall offices and 40% are large offices. As most of the offices are our target customers and ourbusiness model is B2B, we will cater to this segment through our direct sales force. Our target isto achieve 40% market share in this fiscal.Keeping these figures in mind, the following unit sales maybe forecasted: Month Residential(No.) Offices(No.) January 9 2 February 2 1 March 2 1 April 2 1 May 7 1 June 2 1 July 2 1 August 4 2 September 4 1 October 8 2 November 4 1 December 4 2 Total 50 16 18
  19. 19. Rationale for the above forecastAverage Rate per Sq. Mt.:PVC = 650/-Aluminum = 1000/-Wooden = 1500/-ResidentialGrowth in past ten years = 3224  Yearly growth = 325Upper class housing = .15* 325 = 48.75 = 49 (app.)Target Market share = 49*.4 = 20 Houses + 20 Luxury duplex + 10 BungalowsTotal Estimate of demand = 50 Nos.% of PVC = 60% => PVC = 30% of Aluminum = 20% => Aluminum = 10% of Wooden = 20% => Wooden = 10Average size of window = 8 ft. * 6 ft. = 48 Sq. Ft. = 14.5 Sq. Mt.No. of window that will be covered with blinds = 3 (1 hall + 2 Bedroom)Total potential Revenue = 650*14.5*3 *30 + 1000*14.5*3*10 + 1500*14.5*3*10 = Rs. 1935750/-OfficesGrowth in number for past Seven years = 265Yearly growth = 38 (App.)Target market share = 40%Target market = 0.4*38 = 16 nos.Average usage in the offices = 100 Sq Mt.Total Potential Revenue = 100 * 16* 650 = Rs. 1040000/- 19
  20. 20. Monitoring and Evaluation of Action PlansEnvironmental AuditWith the growing pace of technological innovation the Venetian blinds market has becomehighly volatile and competitive. In order to analyze the changing environmental conditions,periodic audits can be conducted. Such audits conducted periodically will provide a thoroughunderstanding of market size, growth, competitors, dealers etc.Evaluation AnalysisSales analysis will be conducted every 6 months and suitable adjustments will be made to thepromotion budget accordingly. Furthermore, key performance indicators will be undertaken byall the employees in order to maintain a high standard of achievement within the organization.In relation to the company’s promotional schedule, it will be reviewed every 3months in orderfor the company to meet deadlines.Variance AnalysisVariance analysis will be conducted every quarter in order to determine the variability in thetargeted figures. If there are any gaps in the targeted and actual figures, suitable changes willbe made to the strategies.Marketing Objectives AuditAudits will be conducted to ensure that the goals and objectives are being met. The percolationof the goals and objectives to the key stakeholders such as sales force, marketing team andchannel partners will also be studied to ensure that everyone shares the common goals.Marketing Strategy AuditThe effectiveness of the strategy in achieving the stated goals and objectives will be studied. Ifneed be, the strategy will be modified to steer the team towards the objectives. An audit of theallocated resources and their effectiveness will also be conducted to improve efficiency. 20