- IO Furniture is currently positioned in the luxury and project segments of the furniture market in Nigeria targeting high-income individuals and companies. However, there is an opportunity to tap into the middle-income category of over 350k-500k, which estimates over 1 trillion naira in untapped income. - IO Furniture proposes introducing a new affordable brand called "IO Budget" using the same facilities to target the middle-income market, source materials locally to reduce foreign exchange issues, and potentially generate an additional 5 billion naira in income by capturing just 0.05% of the middle-income market. - A SWOT analysis finds strengths in production capacity and expertise, while opportunities exist in the large

1. 2016
FRIDAY USEN
BRAND SHIFT
STRATEGIC PRESENTATION

2. THE STRATEGIC TRIANGLE
Customer
(350K -500K)
MIDDLE CLASS
INCOME ESTIMATES
(MORE THAN N1 TRILLION )
IO BUDGET estimates to generate
5 billion annually
IO BUDGET
Generate average of 25
billion annually
NEW
BRAND
IO BUDGET?
Competitors:
BEDMATE
VAVA
LIFEMATE
ETC

3. IO FURNITURE
IO FURNITURE
RETAIL BUDGET
FURNITURE ?
HOSPITALITY
PROJECTSLIFESTYLE
LUXURY
Market
Segmentation
Positioning
CURRENT MARKET
UPPER DIVISION/BLUECHIP
COMPANIES
N800,000 AND ABOVE FOR
INDIVIDUAL
N500MILLION AND ABOVE
FOR CORPORATE.
LIMITED AUDIENCE
CORPORATE/
COMMERCIAL

4. Opportunity
Performance
• IO Furniture is currently positioned in the luxury and project segments of the furniture market in Nigeria.
• ,IO Furniture assume leading posture in high quality furniture solutions for lifestyle targeted exclusively at
high network individual and bluechip companies.
• However, IO Furniture should position itself to tap into the middle income category with over 1 trillion
estimated income opportunities available to be annexed.
1 Trillion
Estimated
income
untapped
=
ImprovedRevenue
IOLocalcapacity
+

5. OBJECTIVES BEHIND PROPOSED IO FURNITURE BUDGET
• TO EXPAND THE REVENUE BASE OF THE COMPANY
• TO RE-ESTABLISH ITS VISION AS A HOME GROWN BRAND USING LOCAL MATERIALS SOLUTIONS
• TO ENSURE THAT ONE OUT OF EVERY TENTH FAMILY IN NIGERIA AND AFRICA HAS A PIERCE OF IO FURNITURE
• TO CREATE AND MAKE GOOD AND AFFORDABLE FURNITURE SOLUTIONS TARGETED AT MIDDLE INCOME CLASS
CONCEPTUALISATION AND ACTUALISATION
• CREATE A BRAND TO COMPETE AT THE MIDDLE INCOME LEVELS DIFFERENT FROM IO BRAND BUT AFFILIATED TO IO
FURNITURE LIMITED.
• NEW BRAND WOULD FOCUS ON SELECTED ITEMS ON LIFESTYLE E.G BUDGET BEDS,SOFA,ENTERTAINMENT UNIT,
DINING AND COFFEE TABLE
• TO BE RUN AS AN INDEPENDENT UNIT USING THE SAME FACILITY TO ACHIEVE THE OBJECTIVES
ONE FACTORY
Local capacity
Customer
UPPER CLASS
(N800K AND ABOVE)
INCOME ESTIMATES
( N500 BILION )
Customer
MIDDLE CLASS
(350K -500K)
INCOME ESTIMATES
( N1TRILLION )

6. Strength
• State of the art factory advantage
• Material can be sourced locally
• Expertise (Long years of experience)
• Local and foreign capacity
• Consistency in Quality
SWOT ANALYSIS FOR IO FURNITURE
Opportunity
• About 1 trillion untapped opportunity in
income waiting to be annexed
• Local content capacity
• Materials can be sourced locally
• Large market audience.
Weakness
• price
• Lack of brand visibility
• Limited target market less than 10%
Threat
• Exchange rate
• Economy
SWOT

7. IF IO CAN FOCUS ON 0.5% OF THIS MIDDLE
INCOME MARKET
A CONSIDERATION FOR BRAND SHIFT COULD GENERATE ADDITIONAL
5 BILLION INCOME FOR THE COMPANY
0.05% of 1 TRILLION
MIDDLE INCOME MARKET
=
5 BILLION
AVAILABLE OPPORTUINITY

8. CONCLUSION
• Introduction of IO Budget as an independent brand would eliminate foreign exchange issues associated with IO LIFEST
YLE as most of the material would be sourced locally.
• This local content can be achieved without compromising on quality
• Expand the revenue base of the company as larger market can be attracted
• Guarantee brand visibility and penetration
• Help IO Furniture to be closer to its vision of remaining the leading manufacturing company by cutting across the two
major income division
Note that these analysis are based on market assumptions

9. Thank you
THANK YOU