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Free Style Marketing Plan
Executive Summary
Free Style Company is a proposed interior design business that will provide interior design services for offices and homes in Ontario, Canada. The company will provide access to services that include interior design consulting services and referrals to products, such as decorator fabrics, furniture, and office and home accessories. The business will provide personalized products and services to the target market to make office and home interiors are appealing and welcoming.
Recent market research reveals that the interior design market is growing fast as people desire a comfortable and welcoming environment for their homes and offices. The company aims at providing products and services at an affordable price to attract more people to the target market. Besides, the target market has relatively wealthy households, conscious about how their offices and homes appear and feel.
Free Style Company will promote the business by creating positive relationships with customers for referrals. Word-of-mouth will be the main advertising strategy for the firm, although it will use other print and electronic media channels. The company will focus on creating solid and strong customer relationships to achieve brand loyalty. They will deliver products and services based on customer’s budgets, tastes, preferences, and goals. A strong market presence, design services, sustainable products and services, and value-based pricing will differentiate the product from competitors.
During the first year of operation, total revenue is expected to exceed $46,000, but it will be yet to break even. However, the company will break even during the second year and continue operating at a profit for the next two years, with sales revenue expected to reach about $80,000. The chart below shows the performance of the company for the first three years.
Company Overview
Free Style is a start-up company that is owned and operated by two graduates in interior design. The two have a passion for interior design and intends to provide their customers with excellent services to earn referrals. The business is intended to support people with the need for advice and guidance regarding interior design. It will target people who need someone to hold their hands and take them through the whole process of creating appealing and welcoming interior spaces. The company will direct customers to the source of products and materials for interior design including new and antique furniture, decorator fabric, art work, and accessories. The company’s website, www.freestyleinteriors.com, will include critical information about the firm’s products and services and a portfolio of finished work.
Company Ownership
Free Style will be owned and operated by two partners, who are graduates and have passion for interior design. The company will be registered as a limited liability partnership to protect the partners from liabilities.
Company Locations and Facilities
The company will have an office in Ontario, Canada. It will have a reception and an office where the partners will meet customers and another room dedicated as a work area. Another room will be used to display samples of design concepts, completed works and products that customers can check when they visit the firm.
Objectives
- To achieve an average of $3,870 in sales revenue every month for the whole of the first year of operation, $5,720 and $6,600 for the second and third years.
- To get a minimum of 55% of the revenue from interior design products for the first three years of operation and the rest from consultation and interior design services.
- To increase the customer base by 20% for the first three years to improve its financial performance and profitability.
Mission Statement
We inspire to create a comfortable and welcoming working and living space with sustainable, beautiful and stylish interior designs
Vision Statement
We intend to be a leading company in the interior design market delivering quality interior design products and services to a wide range of clients in Canada.
Competitive Comparison
The main competition for the company will be other companies that provide interior design products and services. However, there is also increasing competition from the “do-it-yourself” resource providers that operate websites and retail shops. Some of the leading interior design companies in Ontario include Albany Based Creative Agency – Vibrant Brands, Gabriele Pizzale Design Inc., and Katherine Joy Interiors.
Opportunities to Expand
The company has numerous opportunities to expand from the city to others in Canada. First, the firm will target Canadian young families and newlyweds. The owners will conduct surveys and solicit customer feedback to gain a deeper understanding of its customer base and the potential for growth within and outside the city. The study will also be an opportunity to study the characteristics of typical brand buyers and understand how to position them and what aspects of the quality of goods and services need improvement. Ongoing market research will also play a key role in learning about the current and other markets for future expansion possibilities. Besides, the owners will provide quality services for more referrals that will expand to other markets.
Keys to Success
The main keys to success for Free Style Company will depend on the following factors:
- Providing the highest quality interior design consultancy and product experience to have satisfied customers.
- Selling specially selected products to the customers to meet their interior design needs and expectations.
- Communicating with the client in a personalized manner through the website and other communication methods, such as social media tools.
Products and Services
Free Style Company will provide interior design products (art pieces, furniture, decorator fabric, and accessories for office and home interior spaces) and consulting services to clients around Ontario Canada. The business will begin by marketing and selling interior design products and establish consulting services. Specifically, the company will use the expertise of the partners in interior design to advice clients about the best products in terms of furniture, designs of decorator fabrics, lines of drapery, and other accessories.
The primary points of differentiation that the company will offer include:
- Unique customer experience from professional interior designers (the two partners) to meet the needs and expectations of the clients.
- Have access to a wide range of new and antique furniture, special-order decorator fabrics, and accessories.
- Provide personalized assistance from a complementary product offerings, such as hardware, accessories, and hard-covering window treatment.
Strategy and Implementation Summary
The following factors highlight the company’s primary sales and marketing strategy:
- A premier interior design consulting experience, providing clients with memorable services to earn referrals.
- To add value to the client by providing interior design products and services that add value to customers.
- Providing excellent services to customers for repeat business in the home and office space needs.
The section includes a situational analysis and the tactics and strategies to implement the Free Style Company’s strategy.
SWOT Analysis
The SWOT analysis reveals the internal and external factors that determine the success of a company in the target market. The analysis includes the key strengths and weaknesses (internal factors) and opportunities and threats (external factors) affecting the operations and success of the business.
| Strengths
1. Ability to create personalized client services 2. Strong relationships with suppliers and customers to respond to specific customer specifications 3. Continued business through referrals from satisfied customers 4. Client loyalty created through a string reputation from repeat customers. |
Weaknesses
1. The owners are still on the “retail experience learning curve.” 2. The company is not yet established in the interior design market 3. The seasonality of the business can cause dry periods. |
| Opportunities
1. A large part of the target market is seeking services from established interior design companies 2. Strategic alliances and strong relationships with suppliers of furniture, décor, and accessories 3. Continued business through referrals from repeat customers. 4. Join marketing activities with suppliers to achieve the intended goals 5. Potential for expansion outside the city and even country later. |
Threats
1. High competition from interior design companies and DIY providers. 2. Continued price pressures due to the competition or weaker markets that can cause lower contribution margins. 3. Rapid changes in interiors designs 4.
|
The analysis reveals a strong market for the company, but owners should address the weaknesses and threats to achieve the intended objectives.
Strategy Pyramid
The strategies listed below provides a summary of the company’s implementation plan for the next year. The strategies include expansion to non-fabric sources of revenue, in-store retail revenue, and Web-based sales actions.
STRATEGY #1 – Generating Referrals
The first strategy will be critical during the first year of operations to create a strong customer base. The main tactic is to create a strong client base by providing excellent services from the beginning of operations. The second tactic is to create a referral network using professional contacts. The tactic will be achieved by providing specialized and customized services to individual and corporate clients.
STRATEGY #2 – Product Sales
The first tactic to implement the strategy is promoting products through the company’s website. The firm will also hold seminars and demonstration promotions, and cross-selling activities with other partners. The firm will also use online and notebook portfolios and social media actions to promote the services and products.
STRATEGY #3 – Generate Awareness through the Website
The main tactic to implement this strategy is facilitating and communicating the company’s services and products through the website and online platforms. The design of the website is appealing to the audience to increase the chances of viewership. The programs under the strategy include integration of completed client work, regular assessments of performance and online inquiries, establishing goals of the program, and evaluating the client work initiated via the website.
Value Proposition
Free Style Company will offer the highest interior design experience for the customers. The key sources of value for the customer will be convenience, sustainability, and affordability. Clients seek services and products that are conveniently available to their homes or offices for work. They are also looking for environmentally friendly products for their interior design. Besides, they seek value for their money, offered through affordable products. The company will provide customized and specialized goods through the selection of home accessories, antiques, and complementary products to support a great customer experience.
Market Analysis
The section includes information from market research regarding the target for Free Style services and products. The analysis covers detailed information regarding target customers and their demographics.
Market Trends
The interior design market has grown considerably in the past few years with new “household formations.” The changes are expected to continue through the next decade because of the solid growth in new households. Besides, homeowners have increased in the recent past, increasing the demand for interior design. The “do-it-yourself” (DIY) market also has grown and almost gets to the same level as the professional home-improvement sector. Customers acquire products and seek advice from interior décor service providers to make their interior décor.
Target Customers
The company has a defined target market that will be the foundation for a successful business venture. The firm will target customers intending to make their interior design for home and office spaces. The owners have conducted adequate market research and have adequate information regarding its attributes.
Market Segmentation
The business creates a market profile based on geographic, demographic, psychographic, and behavioral factors:
Geographical Factors
The geographical region that the company will serve is Ontario, Canada, which is where it is located. It will serve the affluent and new homeowners in the region, intending to contract interior design services. The province has 14.1 persons per square kilometer, which is a suitable target market for the firm (Focus on Geography Series, 2019 Census, 2020). The company will operate locally before moving to other provinces and even countries.
Demographics
- Young and older homeowners (age range of 35 to 55 years)
- Families with children
- Families with a combined household annual income of more than $100,000.
- People with townhouses and/or condominiums valued at more than $425,000.
- Professionals and corporate clients
- Business people
Psychographics
- People who prioritize appearance of their homes.
- People who desire to entertain guests
- Clients who perceive themselves as being creative, tasteful and able.
- Trendy customers interested in interior design market trends.
Behaviors
- Customers who take pride and have an active role in decorating their homes
- People who love their homes and communicate the same to others
- Clients who like having a high status in society
The company aims at providing its customers a home environment that expresses their self. They have the resources and the designs targeted at the diverse clients. They will creates home and office spaces that are personal, unique, and tasteful, while communicating the message about what is important to the client. They will benefit the following categories of customers:
Marketing Strategy
Marketing strategy is an essential part of the marketing plan since the message about the company and its services or products should reach the target audience. Thus, the firm will include an effective marketing approach to reach as many people as possible with the message about its existence and what it offers (Morgan et al., 2019). An integrated marketing approach will enable the owners to communicate effectively with the target customers. The company will engage in marketing in a way that is inspiring, inviting, and motivating.
The marketing strategy will be founded on superior performance in a number of areas:
- Unique interior design products and services
- Unique consulting services.
- Customized and specialized services and products
- Overall quality of the experience.
- Excellent services to customers to exceptional experience.
The marketing strategy will ensure better awareness of the products and services to generate interest and appeal to the target customers. The strategy will be implemented in a way that entices them to return for more services and refer the services to others (word-of-mouth marketing).
The following marketing mix will play a key role in achieving success for Free Style Company
Product
The company’s products are discussed earlier in the marketing plan. To revisit, Free Style will market interior design products (art pieces, furniture, decorator fabric, and accessories for office and home interior spaces) and consulting services to clients around Ontario, Canada. The company will provide customers with consultancy regarding their interior design (for homes and offices) products available in the market.
Pricing Strategy
The company has conducted market research to understand competitors’ pricing strategies to sell their products and services. To add value to customers, the company will use a high-value pricing approach. The company will determine value based on the best design services. For convenience and timeliness, the purchase will be worth the price.
Promotion Strategy
The promotion approach used by the company will be aimed at obtaining referrals. It will use other potential sources of promotion such as
- Print media advertisements: the company will use newspaper Advertisements using local dailies.
- Electronic media advertisement using TV and radio. Local channels will be used to reach the target consumers
- Quarterly Postcard, a direct mail postcard that will be sent to customers
- Online advertisement through social media and the company’s website.
Place
The marketing mix will be the local area where the company will market its products and services. The company will market its products and services in Ontario, Canada. The distribution channel will be a traditional retail distribution channel, along with online or e-market operations.
Distribution Strategy
The main distribution channel for the company is conventional retail distribution. The firm will have a retail outlet to purchase their products or contract the company for services. However, it will use secondary channels, like the website and other online applications. They will have an online interface through which to contact customers and provide their services or sell products.
Differentiating and Positioning Statement
The brand for the company targets people seeking to make a personalized and unique impression of the interior space. The company seeks to provide client-oriented designs to meet their needs and expectations. Thus, the company will position itself as a source of quality and affordable services and products in interior design. The company will also be willing to listen to customers to match their desires and expectations to the designs available in the local and international markets. Besides, the company will position itself as a sustainable option to available interior designers in Canada. Evidently, customers have become highly aware of how their actions affect the environment and seek green options. Free Style Company will provide such options to its customers to improve their satisfaction. The firm will have a sustainable development strategy and be accountable for its activities and influences to be successful (Spiliakos, 2018). With the strategy, the company will attract customers and achieve the referral goal.
Sales Strategy
The primary sales strategy for Free Style Company will be referrals from satisfied customers through word-of-mouth and online reviews. Satisfied and loyal customers are expected to give positive work about the company to relatives and friends. For example, after working for a customer at the office, he could give a positive word to a brother who will contact the company for home interior décor. Contact with past customers will lead to repeat business by reminding them about the company. The company will also create awareness regarding its services and products to attract sales.
Budget and Sales Forecast
The company will generate sales from three main sources: residential interior design consulting, commercial interior design consulting, and product sales. The primary sources of revenue are consulting services, though also product sales will add value to the company.
The revenue forecasted for the following year of operations will be a modest 12% growth rate. However, economic unpredictability in the recent years should be considered since they will affect the sales.
| Sales Forecast | |||
| Sales | |||
| Residential Consulting | $23,820 | $32,800 | $47,100 |
| Commercial Consulting | $3,980 | $6,630 | $7,590 |
| Product Sales | $20,700 | $32,100 | $46,000 |
| Other | $0 | $0 | $0 |
| Total Sales | $60,500 | $71,530 | $100,690 |
| Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
| Residential Consulting | $3,650 | $4,730 | $6,990 |
| Commercial Consulting | $630 | $990 | $1,120 |
| Product Sales | $10,980 | $17,360 | $25,480 |
| Other | $0 | $0 | $0 |
| Subtotal Direct Cost of Sales | $15,260 | $23,080 | $33,590 |
Evidence from the sales forecasts indicates that the company will be profitable over the first three years of operation.
Implementation Plan
The company will engage in targeted actions following the approval of the plan to begin operations. After approval of the plan, the partners will begin to set up the office and market the products and services during the month after approval. One of the initiatives to engage in the first month is to design the office and retail outlet for the company. The second initiative is to create the website and other social media presence. The third initiative is to plan for marketing purposes.
Management Summary
The company was founded by two partners, interior design graduates, who will oversee the day-to-day operations. The founders studied at the College of Architecture and Interior Design, providing them with the necessary expertise to begin and run the business. They will perform the design process and business operations in the company, including marketing and customer relationships. For the first three years, they will run the business without external support. However, they can consider hiring additional help with the expansion of their company. Free Style managers will commit to customer engagement to improve business strategies because the business is still far from becoming an industry leader.
Control/Monitor
The owners of the company will be responsible for evaluating its performance over the first three years. They will ensure that the business is operating profitably by recording data, such as sales revenue, daily, weekly, monthly, and yearly. Hence, they should ensure that the business has all relevant financial documents and records. The two have learned basic accounting and book-keeping tips that they will use in their business. The feedback mechanism they will use to monitor progress will include the records they keep for revenue and profitability. Data collection plays a critical role in the eventual analysis of whether their business operates at a profit or loss. The management will also analyze data related to customer feedback to determine the ability to meet their needs and expectations.
References
Focus on Geography Series, 2019 Census (2020). Retrieved from https://dashboard.goldenwritingcenter.com/order/15525
Morgan, N. A., Whitler, K. A., Feng, H., & Chari, S. (2019). Research in marketing strategy. Journal of the Academy of Marketing Science, 47(1), 4-29.
Spiliakos, A. (2018, October 10). What Is Sustainability in Business?: HBS Online. Retrieved July 25, 2021, from https://online.hbs.edu/blog/post/what-is-sustainability-in-business
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