This document provides an overview of a proposed Do-It-Yourself (DIY) furniture shop business. It discusses the nature and scope of DIY, why DIY furniture is beneficial to customers, the market structure and competitors as monopolistic competition. Key factors that affect pricing include quality, government import duties, and level of customization. Raw material costs, labor costs, and marketing are the major cost structure variables. The business aims to differentiate products through customization and interior design services, and establish a pricing strategy at market rates with the goal of increasing profit margins over time.

1. Do it Yourself
Furniture Shop

2. Members of Group 5
• GSEP13CMM031 Prajakta Talathi
• GSEP13CMM034 Shantanu Kulkarni
• GSEP13CMM037 Vihaan Chaudhary
• GSEP13GLSCM047 Manoj Megotia
• GSEP13GLSCM048 Neeraj Gupta

3. Nature and Scope of DIY
• As the lifestyle is varied and costs of labour &
service increasingly become unaffordable in
developed markets, the scope of Do-it-Yourself
shops is tremendous and have a promising future
• Scope: Instead of restricting the scope of our
business to retail outlets, we plan to create an
online portal for quick expansion of business and
delivery of services.

4. Why DIY Furniture
• The furniture market includes providers who
either offer ready to use products or offer
expertise solutions such as Interior Designing.
• Our business model gives customers a chance to
use their imaginations in creating a new piece of
furniture or refurbishing their old ones.
• Our entry will propel variety, quality, opportunity
and fashion edge to customers at competitive
prices.

5. Market Structure and Competitive
Environment
• As there are many sellers and buyers and the
products can be differentiated, the market is
essentially monopolistic competition
• The competitive environment for DIY are the
ready made furniture shops and interior
designers providing customized furniture
options

6. Variables affecting Pricing
• 3 important variables affecting the pricing of DIY
are:
1. Quality – Quality is the major influencing driver of
the business. We seek to provide the customers the
best-in-class material and services. The better the
quality, the higher the price
2. Government duty on raw material – As raw materials
and good will be largely imported, the pricing is
susceptible to fluctuations in import duties
3. Design and level of customization – As we plan to
give customers the highest level of satisfaction we
provide customers with a variety of choices

7. Variables Affecting Cost Structure
• Raw Materials and Tools Up-gradation
Cost of Raw Materials such as Wood, steel, Polish, Paint etc will
be an important factor affecting cost as these are all Variable
cost . The high demand will nullify the effect in longer run.
•Labor Cost ( craftsmen and interior Designing)
As there is scarcity of labor in Singapore , the availability of
craftsmen and other will low and there per day labor will be
changing as per market demand .
•Marketing
The cost of advertising is important as it will help us to increase
demand by creating our brand image and product information.

8. Defined ways of creating
preference
• Product differentiation
– Customization of the products by overall look and
feel to suit the color & designs of the homes or
office
• Interior design
– Free consultation to suit the drapery, as per room
décor, feelings etc. Free 1 year annual
maintenance contract will be provided with this.

9. Pricing Strategy
• As this is a monopolistic competitive market we intend to keep the
prices at par with the market price .
•As our aim is to provide Quality we will increase our profit margins.
by reducing costs and increasing prices once we tap the market and
create a Brand Image .

10. Thank you