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The Disruptables - Interactive Interiors
- 1. Interactive Interiors Pitch TheDisruptables
- 2. Interactive Interiors Simple touse Website Massive On Line Design Database Links With Existing Social Media Sites Photo Recognition/ Search Options One Click Order Software Designers Manufactures Users Design & Search Database Interactive Interiors Mobile Mobile Friendly Site SM Push Feature Online Design Community A Single SM Platform Social Highly Visual Design Concept Sharing Product Procurement & Delivery AR APP Delivery Alert Product Procurement Rare & High Value Service Logistics Delivery Tracking
- 3. The following screenshotsillustrate Google based search functionality. The live site will be presented in a more traditional ecommerce format. Essential Search our site by a photo you took yourself, or by a link to the image online Theme, colour Main Budget Comprehensive Retailer/brand name, one off, antique Product image Social mentions and reviews of your product and search results Items available to buy which match the product Items available to buy to complement the product based on its colour and style
- 4. How it Works:Augmented Reality Augmented reality is an exciting technology which superimposes 3D models onto the world in front of you, and makes interior design more accessible, interactive and easier than ever before. The Reverse Search has found coordinating items and presented them in ecommerce gallery style, with a Try at Home button... ● Clicking the Try at Home button pulls down the 3D model into your smartphone/tablet ● Your current environment is viewed through camera, and shown on screen ● Your 3D Item is then placed anywhere in the room, resized, rotated as needed ● Share buttons integrate social media for friends’ input ● A Buy It Now button would begin the purchase process © Augment 3D used with permission
- 5. Market Opportunity 38.97% DIY 58.44% Furnishings 2.59%New Homes £107,296,000,000 Annual Home Improvement Spend UK Home Owners Britain: A nation obsessed with their homes ● 77% watch television property shows ● £1501.85 average homeowner spends on home Continued growth ● Upward trend: 5% up (£1426.00) on last quarter; 21% up £1,240) on this time last year. Extra spend from people move home ● 28% spend £1000-£3000 during 1st month in new home ● £3001-£5000 for 35- to 44-year-olds Despite the economic climate, people are still spending money on home improvements with 72% doing DIY and 66% of people now going online to purchase items for their homes, the majority of which are aged 18 to 24. (John Kennedy, MD Wayfair UK). Kelley Hoppen T: 58350 FB: 21208 Kevin McCloud T: 59722 FB: 5915 Sarah Beeny T: 103912 FB: 6880 Interior Designers are the New Celebrities with TV Shows & Massive Social Media Followings (Key: T - Twitter; FB - Facebook) Annual expenditure & projected spend ● £107,796,000,000 spent on home improvements ● £65,796,000,000 is spent on furnishings and accessories ● £79,613,160,000 furnishings spend next year Market opportunity ● No one in this sector acting as a broker, matching buyers with an unlimited number of manufacturers and artists ● Limited product availability to the consumer (ie limited to stocked products or products from a company’s preferred manufacturers The rising affluence of families in the UK over the past few decades and time pressures are also changing the face of DIY sales. Homebase stores are shifting its focus from ‘DIY enthusiasts’ to ‘home and garden enhancers’. (Paul Loft, MD Homebase).
- 6. Customer Profile Female 25 -60 Interactive Interiors will attract a wide range of consumers to our website and app. We will achieve this by: • Having a variety of priced items available • Our wide range of furniture and styles • Customer confidence - try before you buy. From exclusive designer furniture to unknown canvas art work by young talent, Interactive Interiors has it all. We will entice a variety of clientele, from those inner city young professionals to retired customers. Our target market would also be workers from the industry (male and female), in the form of designers and decorators who could use our service in a professional capacity. This could include: • Helping customers get a real view of the design of their house • Planning work and being able to tailor pick down to the last detail Once the website gains momentum we are sure to see members of the industry using Interactive Interiors as a sales tool for customers. Professional with a busy lifestyle Interactive Interiors would also attract couples, by having the added benefit of being able to screenshot the item before purchase. This is beneficial because: • The customers can browse pieces that are similar to previous items bought • Couples can check with each other before making big purchases • Text or email the screenshot to friends and family for their opinion. One common factor of our customers is that they will have full time jobs, therefore are too busy to really shop around for exclusive sculptures and furniture. Those who have the money to spend and want something special for their home, but do not necessarily know where to buy it from or what it will look like in their house. We take the uncertainty out of their purchase decision, which will be a huge selling point for our website and app. We are: • On the go • Immediate • None time consuming Which is why we have captured our target audience perfectly.
- 7. FIGURE 47: Shopperprofile of leading stores, both online and offline. June 2013 Base: 2,000 internet users, aged 16+ As you can see from these Mintel studies, the average age for a shopper is actually slightly younger than middle age, most likely a professional with spare money to spend. This is the audience that we will be mainly targeting, those that know what they like and are willing to pay a bit of money. It is also interesting to note the Independent sales figure is quite high, when it comes to furniture customers love unique and quirky pieces, which is something the Interactive Interiors will cater for. Source: GMI/Mintel There is a market for consumers that wish to purchase more than one item, perhaps a matching set or complimentary addition. This is where Interactive Interiors will be expecting to make a huge market gain, as our services will help the customer pick and choose what items they think go best in their home, with our unique 3D system. As our app and website are designed to be used on-the-go, we could expect there to be an increase in impulse buying, and purchasing as a result of browsing. FIGURE 49: Numbers of furniture shops bought from in last three years June 2013 Base: 2,000 internet users, aged 16+
- 8. Situational Analysis ECONOMIC: Majoreconomies are now out of recession. SOCIAL: There are no social hindrances. FINANCE: A cheap business model not requiring massive investment. And no stock holdings, so no funds tied up in stock. BUSINESS MODEL: Offers massive choice of product and information not currently available to consumers which can continuously be increased through new suppliers and content. POLITICAL: No control over import taxes and might encounter difficulties with importing some materials, eg wood, that are banned because of controlling disease. TECHNOLOGY: One of our USPs, we must keep ahead with technology. BUSINESS MODEL: Easy and cheap to copy, we’d need to establish our brand quickly and really well.
- 9. Competitor Analysis Although thereare many established interior design sites and apps they are usually: ● Limited Stock - in-house products or certain brands ● Corporate - no unusual or upcoming designers ● Static- floor planners or digital pin boards Launch Strategy ● Awkward Purchasing - not a complete try and buy experience ● Top Down - no personalisation based on style, budget or even a signature piece of furniture Main Competitor: IKEA do it really well, making excellent use of interactive Augmented Reality so you can ‘try at home’ Weaknesses: Limited to IKEA products, style and quality.
- 10. Launch Strategy AWARENESS INTEREST DESIRE PRE-LAUNCH TEASER:Employ ‘scarcity drives demand’ model Identify hard core influencers and provide them with exclusive use of site, invites to VIP virtual events. Once hard core influencers are on-board, extend invitation to designers / professionals but keep closed network / invite only ACTION LAUNCH: Open to the public - raise awareness and gain critical mass Contextual advertising through banner ads that demonstrate our offer (e.g. matching capability for items that are being searched for) Articles / advertorials in print magazines Guerilla marketing / experiential events outside high street retailers CONSUME TARGETTING / REFINEMENT: Ensuring relevance and encouraging customers to use service and share ideas / designs with others SEO, profiling, infographics for bloggers, young designer programme INFLUENCE ADVOCACY ONGOING ENGAGEMENT: Monthly Competition Giving people a reason to share their ideas / designs with others whoever’s design gets the most votes, wins their ‘scheme / design’ for free
- 11. Create targeted PPC campaignsaround Interior Design, Home Furnishings. Marketing Strategy Drip Campaign for sign ups. Suggest other products based on users preferences, purchase history. PPC Email Marketing Content Strategy Website Display Advertising Targeted display campaigns to reach top interior design sites. Help to increase brand awareness. Publish a Blog – have guest posts from Interior Design influencers. Create useful infographics around the topics of harmony & balance in decorating. Social Media Have a presence on Facebook, Twitter & Pinterest Use Twitter & Facebook to help people find products as well as share our content. Pinterest we can curate products we sell into various relevant boards.
- 12. KPIs Revenue KPIs Paid AdvertisingKPIs 1. 400 Sales first month raising 5% per month for the first 12 months Year End 6500 sales 1. 5% PPC Conversion Rate 2. 2% Display Ad Conversion Rate 2. Average order value £200 3. 35% Email Marketing Open Rate 3. £130,000 in Delivery mark up first 12 months Website/Content KPIs 1. Average Time on Site Above 5 Minutes 2. Social Reach Increase 5% Bi-Weekly for First Year 3. Bounce Rate Under 40%
- 13. Revenue Model Commission's 5% onall sales paid by the Seller Delivery Services (3rd Party) flat fee £5 UK & £15 Int. Advertising Banner ads on website
- 14. 12 Month SalesForecast Commissions Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals 400 £200.00 £4,000 6.28% 420 £200.00 £4,200 6.60% 441 £200.00 £4,410 6.93% 463 £200.00 £4,630 7.27% 486 £200.00 £4,860 7.63% 511 £200.00 £5,110 8.02% 536 £200.00 £5,360 8.42% 563 £200.00 £5,630 8.84% 591 £200.00 £5,910 9.28% 621 £200.00 £6,210 9.75% 652 £200.00 £6,520 10.24% 684 £200.00 £6,840 10.74% 6,367 £63,680 100.00% Jan Feb Mar Apr May Jun Aug Sep Oct Nov Dec Totals Enter Product Name Here Advertising Jul 2 3 4 5 6 7 8 8 8 8 8 8 75 £480.00 £1,440.00 4.22% £480.00 £1,440.00 4.22% £480.00 £1,920.00 5.63% £480.00 £24.00 0.07% £480.00 £2,880.00 8.44% £480.00 £3,360.00 9.85% £480.00 £3,840.00 11.26% £480.00 £3,840.00 11.26% £480.00 £3,840.00 11.26% £480.00 £3,840.00 11.26% £480.00 £3,840.00 11.26% £480.00 £3,840.00 11.26% £34,104 100.00% Aug Sep Oct Nov Dec Totals Delivery Services Jan Feb Mar Apr May Jun Jul 400 420 441 463 486 511 536 563 591 621 652 684 6,367 £20.00 £8,000.00 6.28% £20.00 £8,400.00 6.60% £20.00 £8,820.00 6.93% £20.00 £9,261.00 7.27% £20.00 £9,724.05 7.64% £20.00 £10,210.25 8.02% £20.00 £10,720.77 8.42% £20.00 £11,256.80 8.84% £20.00 £11,819.64 9.28% £20.00 £12,410.63 9.75% £20.00 £13,031.16 10.23% £20.00 £13,682.71 10.75% £127,337 100.00% 12 Month Sales Forecast Start-Up Capitalization October 24, 2013 Amounts 150,000 £10,000 100,000 Start Up Costs Database Development Website Development Staff £60,00 Warehousing Units £8,000 12,000 Running Costs/Marketing TOTAL CAPITALIZATION 10,00 £100,000 Total Sales 50,000 0 Comm Ad Del
Editor's Notes
- #2 Welcome to Interactive Interiors, a new, innovated and uniquely disruptive online business that combines the best online interior design applications and features in one simple to use website and mobile application. Our team are the Disruptables and we are going to make millions.
- #3 The Interactive Interiors offer is designed around four man building blocks. An Interactive Design & Search Database Unlike many of the design websites today that rely on complicated floor planners and CAD style systems to layout and help visualise a room interior, our system is simple. After registration an easy to use interactive web site takes you through some simple steps. Choose your style, colour pallet and budget from our inspiration section and start to build your room from the suggestions from our database. We have thousands of online products from retails, designers and manufacturers from around the world. All carefully colour, style and price tagged to give you the perfect match from any starting point. Our photo recognition software can even tag a photo for you, allowing you to upload a picture of a favourite piece and have our database find perfect matches for it. Our Online Design Community Our help and advice does not stop there. We have developed a network of designers, manufactures and users via our own Social Media Search Platform. You can search via product, style, designer or manufacture. And our site will take you to posts featuring some of the world’s best and designs and inspirations across many of the social media platforms. You can even set up and post your own designs and share them with others, it’s a fantastic source of inspiration and ideas. Interactive Interiors Mobile Our site is optimised for mobile use, and you can set up push alerts from your favourite designers from our Online Community, keeping a constant flow of ideas and inspiration at your fingertips. We even have an AR App that will allow you to download a picture from our database and place it in any room via your mobile phone. Product Procurement & Delivery Once you have all the pieces in place a single click will order everything on your behalf. Our logistics experts are dedicated to sourcing and delivering your orders. We even have a specialist service to find rare and one off pieces through our network of manufactures. You can track your order via your phone at anytime and we’ll send you a deliver alert the day before we deliver. Interactive Interiors is THE ONE STOP ONLINE INTERIOR DESIGN RESORCE
- #4 So you’ve heard our idea, but how does it work??Interactive Interiors is an online design service which makes product recommendations based on user-specific search criteria. We upload all product images to our website which will be tagged accordingly with regards to theme, colour and budget. Each of our products is tagged using an algorithm which ranks product descriptors as essential, main or comprehensive.As our site sources products matching user specified themes and colours these will take priority as ‘essential’ tags. Budget will be ‘main’ and retailer name or brand will act as ‘comprehensive’ tag fields. This will allow the user to refine their results should they only wish to view products by a particular make. Built into our business model is the ability to search for one off designs or antiques. Like budget, ‘one off’ and ‘antique’ will act as ‘comprehensive’ tag fields. Interactive Interiors is unique in its ability to match products based on an image you personally upload to our search engine. Got a wall clock you want to compliment, or seen it elsewhere, a hotel perhaps, that you want to find online? Upload the product image and our search engine can either find the exact item, should it be available to buy online from us orrecommend those that are visually similar. I.e. products available to buy that will fit the item’s theme and colour. The results returned are entirely dependent on your search type. As part of our wider interior design community, the site will also return a list of webpages, directing you to product reviews and social mentions related to your product and search results. Our site stores your individual search history to make product recommendations as soon as they come online. You can sign up to receive notifications direct to your email, or wait to see them displayed in our ‘we recommend’ section on the home page. You can categorise your search history by room type, so in future only products specific to that room will be recommended in line with the colour, theme and budget you originallychose for it. Interactive Interiors also has an app which uses the latest in augmented reality. Chosen a product but want to see how it might fit in your room? Download our app, the details of which are on the next slide, and it will sync to your Interactive interiors account. Save products to your ‘wish list’ and easily access them across all devices, including our app.
- #6 SCRIPT MO SLIDEBritains are a nation obsessed with their homes. 77% watch television property shows, and interior designers have become the new celebrities.Presently there are 17.5 million people living in the UK in their own home and,These homeowners spent an average of £1501.85 in this current quarter on improving their home.And the trend is upward:This £1500 expenditure represents an increase of 5% in the last 3 months alone, up from £1426, and a 21% increase when compared with the same period last year, when the average spend was just £1,240.In addition to these sums of money, extra is spent when people move home:28% of people spend between £1000 and £3000 in the first month in their new home;this amount increases to between £3000 and £5000 for the 35- to 44-year-old group.There were 932,000 completed house sales in 2012 which is the highest number since the height of the property boom in 2007And with the property market now very much improved, house sales are expected to begin to increase, year on year, againBrits currently spend a massive £107,796,000,000 every year on improving their homes:of that £65,796,000,000 is spent on furnishings and accessories(£107,796,000,000 = 107 billion, 796 million pounds£65,796,000,000 = 65 billion, 796 million pounds)This trend is a major shift away from traditional home improvement activities and is causing massive retailers, like Sainsbury’s Homebase, to shift their focus away from DIY to ‘designer’ offerings of furnishings and accessories, for both interiors and gardens.
- #7 11. CONSUMER PROFILE Interactive Interiors fill up a gap in the market that means we offer a unique and innovative service to those who need us, our customers. Our main shopper demographic will most likely be women, middle aged or younger, with money and an interest in decorating and style. They will be professionals, with little spare time on their hands, and that is where we come in. Interactive Interiors aims to help these women find the décor of their dream. With browsing facilities, new and unique artist and classic pieces, on our website there is something for everyone. Whilst keeping our target demographic in mind, there will be something for everyone at Interactive Interior. An estimated, broad age for our female customers would be 25-60. We also would like to entice a variety of clientele, from those inner-city young professionals to retired customers, there does not have to be an age limit for style and we will attract a broad range of people by having access to an array of goods that you can upload into your house. Interactive Interiors increases consumer confidence because you can “try before you buy” with an uploaded picture of your chosen room. This in turn leads on a more professional use for our app, workers in the industry can use it to help people that are redecorating their home make decisions about themes and colours. It is a big decision to renovate and our website can provide users with comfort, knowing exactly what the room will look like once completed. Once the website gains momentum we are sure to see members of the industry using Interactive Interiors as a sales tool for customers. <SLIDE 2> Our research showed that there is a demand for online furniture, and that the average age for the buyers was 36-44, exactly our target market. This means our website has a comfortable place in the industry, whilst offered an innovative service that is not replicated elsewhere. The research also showed that many customers are purchasing furniture, despite there being an economic downturn; nearly 15% had purchased five pieces or more in the past three years. Interactive Interiors intends to tap into that market, with our brand new service.
- #9 Political FactorsImport taxes – not sure how we can control/incorporate these into our pricing. Whilst customers will expect to pay delivery charges, that won’t be used to having to pay extra taxesSome materials cannot be exported, eg wood, for fear of spreading disease. I don’t know how major importers get around thisEconomic FactorsOn the whole, most major countries are coming out of recession so consumer nervousness shouldn’t be a big issueSocial FactorsI can’t see how this would affect us at allTechnological FactorsTo stay in business we would have to stay ahead of the game, otherwise we’d easily be overtakenSWOTStrengthsSmall business investment for setting up site and technology, marketing and launchNo stock holdings, so no large sums tied up in stockWeaknessesEasy to copy, we’d need to build good brand reputation quickly and also stay ahead of the game in turns of service offerings and technologyOpportunitiesMassive consumer choice - no one is offering products from an almost unlimited number of manufacturers so this is a gap in the marketThis model means we can continuously increase the number of manufacturers and this products that we offerOpportunity to offer an all-encompassing amount of information and help to our customers to help them choose, through blogs (covering current trends, celebrity homes, new products, guest interior designer posts) and web content (how to guides, product/manufacturer info) and the interior design service and product suggestions. This is not being done at the momentThreatsEasy and cheap to copy us
- #10 Although there are many established interior design sites and apps they are usually:Limited Stock - only allowing access to in-house products or certain brandsCorporate - available to brands with large budgets, keeping out unusual or upcoming designersStatic - they aren’t very interactive, only acting as floor planners or digital pin boardsAwkward Purchasing - often there isn’t a smooth buying experience, for example, looking at the product on your smartphone but then go online to buy Top Down - the brand is telling us what we can buy, there is no scope for personalisation based on our own sense of style, budget or a favourite piece of furniture, decor or art IKEA are a big competitor, but they are limited to their own products, the IKEA ‘look’, price and quality...which doesn’t appeal to everyone and leaves a lot of opportunity to service those other people looking for something more individual, within their budget and wanting a smooth purchasing experience.
- #11 Our campaign launch would follow the classic communications model shown here but would include a pre-launch stage where we restrict access in order to drive demand. The pre-launch teaser would be offered solely to hard core influencers (interior design bloggers, TV celebrities). This strategy of restricting access in order to drive demand has proved very successful for others e.g. when gmail launch was initially by invitation only, and we feel that we could use this to our advantage not only to engage our hardcore influencers but also so that we can use their feedback to improve the aesthetics and functionality of the site prior to launch. They would have exclusive use of the design service for 1 month prior to launch and over this period we would showcase ‘Interactive Interiors’ and run VIP virtual events.Once these hardcore influencers have become early adopters, we would extend the invitation to a wider circuit of interior design professionals, but keep the network closed for 2 more months whilst we gain positive PR and create more ‘noise’ in the marketplace.3 months after our initial pre-launch teaser the site would go live to the public. The objectives at this point are to build awareness by grabbing people’s attention, interesting them in our service and persuading them to visit our website and get creating / buying! We would recommend contextual advertising using banner ads that demonstrate our offer. So someone searching for a sofa at sofa.sofa.com would see one of our banner ads which would scroll through a number of items that match the item they are searching for e.g. rug, lamp, cushions.We also need to be offline in the spaces where people are getting their inspiration or shopping in person. So, we would have presence in house magazines, both paid for and from our hard core influencers. We would also set up guerilla marketing activity outside high street retailers raising awareness of our online service that they can use to complement purchases they may have made on the high street.We know how important advice from friends and family is when making those big purchases, so once on the site, customers will be able to create designs and ideas that are easily saved and shared.To drive ongoing engagement, we would also create a ‘young designer programme’, finding young talent and providing them with the channel to take their ideas / products to the public. They would create exclusive schemes for us using products from our extensive range of partners and customers could purchase at the click of a mouse.We would also run a competition where our customers designs would be uploaded and the public vote on whose design should be brought to life for free. This would help to raise awareness further as customers encourage their friends and family to vote for their design!
- #12 For our marketing strategy we’re using a mix of Paid & Owned marketing to help increase awareness of Interactive Interiors.For paid we’ll use a mix of Pay Per Click, Display Ads & Email Marketing. With PPC we’re able to target only the traffic we want, those looking for interior design help. If they weren’t ready to make a purchase we’ll use display ads and remarketing to stay top of mind, making sure when they’re ready to start the purchasing process we’re the first choice.Email marketing will help us increase our customers lifetime value by sending them personalized emails with product recommendations based on purchasing history. We’ll also use email marketing for brand awareness, sending out bi-weekly updates on new products, designers and design tips. Our owned marketing will consist of a sound content strategy as well as engaging with our customers through social media.The content strategy will be focused on delivering helpful interior design tips, through articles, videos & images. We’ll work on getting affluent interior design bloggers/celebrities to post on our site and drive traffic as well as aligning ourselves with thought leaders in the industry which will help elevate our brand image.For our social strategy, it will be focused on engaging with customers, helping customers with any issues they may have as well as helping to drive traffic by talking about new products or the designing we’ve partnered with.
- #13 To measure our success we’ve come up with SMART KPIsFor Revenue we have the KPIs – 400 sales in the first month with a growth of 5% a month for the first year which will lead us to 6500 sales in the final month.Second we’re looking to have an average order value of £200Our final revenue KPI is £130,000 in revenue from marking up deliveries. For our website and content KPIs we chose to measure average time on site with our goal to keep it above 5 minutes. Secondly we want to increase our social reach 5% bi-weekly for the first year. And finally keep our bounce rate under 40%, ensuring that users are finding what they’re looking for. Our final set of KPIs are for Paid Advertising. We want our PPC conversion rate no lower than 5%. Our Display Ad conversion rate no lower than 2% and our email marketing open rate no lower than 35%. These will keep our marketing budget in check and make sure we’re not hemorrhaging money on campaign that aren’t working.
- #14 The revenue will be divided into three areas Firstly we will negotiate a 5% discount with all suppliers who are registered with our site. This will mean we will be able to charge retail price to the end user whilst making a profit on every sale. The same discount will be negotiated for non- registered suppliers the first time they use us. The second revenue stream will be a flat rate on all deliveries. We intend to use third part delivery services from the outset to keep costs down. A flat of £5 for UK deliveries and £15 for international will be added to each shipment. After year one an in-house delivery service will be investigated for the UK. Finally we shall sell advertising on our site and through our Social Media Streams. This will be in the form of banners with links to the advertisers site. Our financial plan has been based around reaching four hundred shipments in the first month with a 5% increase month on month. Return business will be minimal at the start with a majority of sales to new customers. We envisage shipments to be split 60% to 40% in favour of UK throughout the first year.Payment will be through PayPal or credit card direct to us so all parties are protected from the uncertainty of shopping on line.
- #15 This slide shows a monthly breakdown of revenues divided into the various components along with a rough start up costing plan.