U & I INTERIORS

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Marketing plan andresearch analysis

Abhishek mazumdar

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Executive summary .................................................................................................................................................... 3

Objective .................................................................................................................................................................... 4

Mission....................................................................................................................................................................... 4

Keys to Success .......................................................................................................................................................... 4

Customer bifurcation ................................................................................................................................................. 5

Types of customer...................................................................................................................................................... 5

Types of segmentation............................................................................................................................................... 6

Industry bifurcation ................................................................................................................................................... 7

Occasions ................................................................................................................................................................... 7

Industrial needs...................................................................................................................................................... 8

Design industry analysis............................................................................................................................................. 9

Designers in various design disciplines .................................................................................................................. 9

Design Industry by Turnover................................................................................................................................11

Geographical distribution of design industry ...................................................................................................... 12

City Wise Design Services..................................................................................................................................... 13

Design industry distribution................................................................................................................................. 14

Swot analysis............................................................................................................................................................15

Design Users.............................................................................................................................................................16

Sector wise allocation ..............................................................................................................................................19

Customer segmentation according to trends .......................................................................................................... 19

Intrinsic progressive.............................................................................................................................................20

Social chameleon .................................................................................................................................................20

Pleasure seeker....................................................................................................................................................20

Traditional............................................................................................................................................................21

Area current rates................................................................................................................................................21

Action plan for the year 2014-2015.........................................................................................................................22

2014-2015 monthly sales target ..........................................................................................................................22

Promotional ideas ................................................................................................................................................22

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Executive summaryInterior design industry is one of the key segments in real estate business. Designing and building projects bothgo hand in hand. With the rise of infrastructure in India, the scope of development for interior design has alsoincreased. People have moved on to interior designers to design their home, office etc. the following reportshowcases fully on the in depth analysis of interior design industry and ways of marketing this industry.

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Objective

1. Realize an average of 50 lacs of sales each business month for the year 2014-2015. A total sales of 6crore in a year.

2. Sales from all the three sectors, residential, commercial and educational.

3. Establish a commercial revenue client base accounting for 10% of total revenues.

4. 28.75% of total sales in 1st quarter, 28.09% of total sales in 2nd quarter, 33.25% of total sales in 3rd

quarter and 9.91% of total sales in 4th quarter.

5. Increase the horizon of u&I by getting more clients from different segments.

MissionU&I interiors is an interior design service for discerning, quality-conscious clients that seek assistance in theirdesign choices for their primary residences, vacation homes, and businesses. This experience offers personalattention through the design process and also provides design resources and products to its clients throughspecial purchases of furniture, fabric, and accessories. The total experience is provided in a way to inform,inspire, and assist people through the process of transforming their home or business environment to become aunique and personalized expression of themselves and add to their enjoyment of that interior space.

Keys to Success

The primary keys to success for U&I Interiors will be based on the following factors:

Provide the highest quality interior design consulting experience possible.

Sell specially selected products to these clients to further meet their interior design needs.

Communicate with our client base through the website and personalized communication techniques.

Retain clients to generate repeat purchases and initiate referrals

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Customer bifurcation

Ethnic Income level Occupation Family status Society status

ethnic Income level Occupation Family status Society status

Types of customer

Loyal customer: These types of customers are less in numbers but promote more sales and profit as comparedto other customers as these are the ones which are completely satisfied. These customers revisit theorganization over times hence it is crucial to interact and keep in touch with them on a regular basis and investmuch time and effort with them. Loyal customers want individual attention and that demands polite andrespectful responses from supplier.

Discount customer: Discount customers are also frequent visitors but they are only a part of business whenoffered with discounts on regular products and brands or they buy only low cost products. More is the discountthe more they tend towards buying. These customers are mostly related to small industries or the industriesthat focus on low or marginal investments on products. Focus on these types of customers is also important asthey also promote distinguished part of profit into business.

Impulsive customer: These customers are difficult to convince as they want to do the business in urge orcaprice. They dont have any specific item into their product list but urge to buy what they find good andproductive at that point of time. Handling these customers is a challenge as they are not particularly looking fora product and want the supplier to display all the useful products they have in their tally in front of them so thatthey can buy what they like from that display. If impulsive customers are treated accordingly then there is highprobability that these customers could be a responsible for high percentage of selling.

Need based customer: These customers are product specific and only tend to buy items only to which they arehabitual or have a specific need for them. These are frequent customers but do not become a part of buying

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most of the times so it is difficult to satisfy them. These customers should be handled positively by showingthem ways and reasons to switch to other similar products and brands and initiating them to buy these. Thesecustomers could possibly be lost if not tackled efficiently with positive interaction.

Wandering customer: These are the least profitable customers as sometimes they themselves are not sure whatto buy. These customers are normally new in industry and most of the times visit suppliers only for confirmingtheir needs on products. They investigate features of most prominent products in the market but do not buy anyof those or show least interest in buying. To grab such customers they should be properly informed about thevarious positive features of the products so that they develop a sense of interest.

Types of segmentation

Need based segmentation: Needs-based segmentation groups customers based on similar needsand wants, or benefits sought, with regards to a particular product or consumption context. Needs-based segmentation is perhaps the segmentation truest to the marketing concept, that is, satisfyingcustomers needs and wants. For companies to increase their sales, segmentation requiresunderstanding customer needs, including those that are underserved or even unmet.

Behavioral segmentation: Behavioral segmentation is based on product consumption-relatedbehaviors and can include frequency, volume and type of product usage. This type of segmentation canbe very powerful for firms that have a membership-type relationship with customers, for example, via acontract such as banks and telecommunications providers, or via loyalty programmers. Here, firms canexactly observe consumption behavior. A drawback is that firms typically can only observe the behaviorwith regard to their own products, but not those of their competitors.

Demographic segmentation: Demographic segmentation, such as age, gender, income, hasbeen widely used. That works well, when demographics are highly associated with needs and wants.However, such an association may often not be the case, as two people with the exact same

demographic characteristics may have very different needs and therefore exhibit different buyingbehaviors.

Psychographic segmentation has become more popular as it reflects peoples lifestyles,attitudes and aspirations. Psychographic segmentation can be very useful in strengthening brandidentity and creating an emotional connection with the brand, but may not necessarily result in sales.

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Industry bifurcation

retail visual corporate healthcare hospitality institutionalMalls andshopping center

branding Office designEg:bank,it,fmcg

Design ofhospitals

hotels schools

Departmentstores

Btl activities clinic motels universities

Specialty stores events laboratories resorts Religiousfacilities

Visualmerchandising

Psychiatricfacilities

cafes Financialuniversities

showrooms spashealth club

Occasions

retail Low footfalls, off season

residential Summer vacation,festivals,marraige

corporate Renovation,diwali

business off season

Educational institutes Summer vacation

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Industrial needs

Carry out utilization study Staff survey Technology brief Green office feasibility Proper budgeting Accommodation standard Legal requirements Furnishing requirements Morale & productivity Health and safety

According to the survey, individuals who earn more than 12 lakhs per annum should opt for buying a propertyover renting in Ahmedabad. However, due to higher rental rates, it is the fifth place on the scale of affordabilityto rent. A middle income individual needs to save for at least five years to afford the down payment for thehouse. The city also offer good value for buyer's money who can get around 20.18 sq.ft for every 1 lakh spent.

The average price of a 1,000 sq.ft. Property in Ahmedabad can cost a buyer Rs.49.55 Lakh. On the other side, theaverage price of Rs.17,286 makes it less favorable to look for rent option. The NHB Residex (residential index)increased by 86 points since 2007 and recorded a 6 basis points increase over the last year. This is in sync withthe increasing demand for residential properties in the city.

Service Business Analysis

The industry continues to be competitive with a "commodity" concern with "designers" of all skill andbackground levels available throughout the market.

Potential Competitors: There are many other interior designers in particular area and these competitorsrange from those that provide simple-focused services, such as draperies only, to a more full-serviceinterior design approach similar to u&i Interiors.

Power of Suppliers: Moderately high in most anyone that has a business licence can have access towholesale purchase of furniture, fabrics and accessories.

Power of Buyers: Very low as buyers work within the financial terms and product availability offeredthrough the suppliers that specify the terms and conditions.

Substitute Products: High as many people refer to themselves as interior designers regardless ofbackground, training, or certification. Substitute products are also high in the area of window treatment

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as hardcovering solutions have become available and increasingly affordable. This includes blinds,shutters, and other "manufactured" treatments. Substitute products are not as prevalent in the area ofantiques and art pieces.

Rivalry: Moderately low with the "territorial" structure that the industry experiences and moderatelylow exit barriers. The easy entry is accompanied with an easy exit and people get out when it is notworking.

Design industry analysis

Designers in various design disciplines

Design Disciplines Designers (in %)Architectural Design 89.83Interior Design + Landscape Architecture + Furniture Design 10.17

Architectural design=89.83%Interior design+ landscape architecture + furniture design=10.17

Design Disciplines Designers(in %)Fashion + Textile + Jewellery + Leather Design3 9.75

Graphic Design 18.09Animation + New Media Design 9.64

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Industrial + Automotive + Retail Design 22.63Allied (Toy + Set & Exhibition + Design Research) 10.94Human Computer Interaction (HCI)4 29

(1,2,3,4 based on secondary data collected on 36337 designers in India) (Remaining figures based on asample size of 170 studios surveyed)

Fashion+ textile + jewellery + leather + design= 9.75%

Graphic design= 18.09%

Animation & new media=9.64%

Industrial + automotive + retail design=22.63%

Allied (toy + set & exhibition + design research) =10.94%

Hci=29%

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Design Industry by Turnover

Design area number of companies in %

less thanRs. 2,50,00,000

Rs. 2,50,00,000- 4,99,50,000

Rs. 5,00,00,000- 25,00,00,000

Rs. 25,00,00,000+

Architectural Design 50 17 17 16

Interior Design + LandscapeArchitecture+ Furniture Design 47 10 26 17

Fashion + Textile + Jewellery+ Leather Design 73 9 9 9

Graphic Design 64 12 15 9

Animation + New Media Design 53 0 20 27

Industrial + Automotive+ Retail Design 55 5 24 16

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Allied (Toy + Set & Exhibition+ Design Research) 22 11 44 23

HCI 43 0 29 28

Geographical distribution of design industrycity Design studioBangalore 24.12Mumbai 22.35Delhi 22.94Pune 14.71Ahmedabad 4.12Chennai 2.35Hyderabad 1.76Coimbatore 1.18Rajkot 1.18Goa 1.18Cochin 0.59Nagpur 0.59Pondicherry 0.59Jamshedpur 0.59Lucknow 0.59Surat 0.59Vijayawada 0.59

(*Based on a sample size of 170 studios surveyed)

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City Wise Design Servicescity Architectural Interior Fashion + Graphic Animation Industrial + Allied (Toy HCI Total

Design Design + Textile + Design + new Automotive + + Set & No. ofLandscape Jewellery + media Retail Exhibition + Studios*Architecture+ Leather design Design DesignFurniture Research)Design

Ahmedabad 14 57 29 43 29 71 43 14 7

Bangalore 7 20 15 41 15 49 20 12 41

Chennai 0 0 0 25 0 75 0 1 4

Cochin 100 100 0 0 0 0 0 0 1

Coimbatore 50 0 0 50 0 50 0 0 2

Delhi 7 32 25 64 29 54 32 4 28

Goa 0 50 50 50 0 50 50 50 2

Gurgaon 10 10 0 10 20 50 20 20 10

Hyderabad 0 0 0 0 0 67 33 33 3

Mumbai 16 21 29 42 24 45 16 11 38

Nagpur 100 0 0 0 0 0 0 0 1

Pondicherry 0 0 100 0 0 0 0 0 1

Pune 20 48 16 52 28 76 36 28 25

Jamshedpur 0 0 0 0 0 100 0 0 1

Lucknow 0 0 0 0 0 100 0 0 1

Rajkot 0 50 0 50 50 0 0 0 2

Surat 100 100 0 100 0 0 0 0 1

Vijayawada 100 100 0 0 0 0 0 0 1

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Noida 0 0 0 0 0 100 0 0 1

Total 170

Design industry distribution

Design Areas Number of Design Companies*

(In %)

Architectural Design 6

Interior Design, Landscape Architecture & Furniture Design 13

Fashion Design, Textile Design, Jewellery Design & Leather Design 9

Graphic Design 20

Animation & New media design 10

Industrial Design, Automotive Design & Retail Design 25

Allied (Toy Design, Set & Exhibition design & Design Research) 11

Human Computer Interaction (HCI) 6

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Architectural design 6%

Industrial design +Landscape architecture+ Furniture design 13 %Fashion + textile +Jewellery + leatherDesign 9 %Graphic design 20 %Animation and newMedia design 10%Industrial + automotive +Retail design = 25%Allied (toy+ set &Exhibition + designResearch) =11%

Hci =6%

Swot analysis

Strenghts

the ability to provide excellent service.

Client loyalty developed through solid reputation.

Good referral relationships with architect.

Word of mouth recommendations.

Access to products,raw materials.

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Weakness

Expensive to produce

Need more frequent financial analysis

Future competition

Competitive market

Opportunity

Growing economy

New acquisitions

Increase in spending power

Promising activity from new home activity

Changes in design trends

Threats

Rising cost of raw materials

Continuous price pressure from competitors

Dramatic changes in design

Expansion of product and services by retail giants.

Design Users

The use of design (i.e either in-house design activities or the purchase of specialized design services) by Indianfirms is spread across many sectors. FMCG companies, automobile, retail, IT/communication, fashion industrieshave a particularly large use of design. The typical buyers of design services include appliance manufacturers,

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machine tool manufacturers, automotive industry, furniture manufacturers, retail industry, hospitality industry,Telecom and IT industry, FMCG companies, banking and insurance companies, publishing companies, appareland footwear companies, pharmaceutical industry etc. Domains such as education, NGOs, institutions, realestate, government, etc. sporadically use design services.

Overall design utility is viewed in a very limited perspective by Indian industry. Design is an underused activity inmost Indian businesses.

Design is often seen as an expense item reserved for large companies thus keeping small and medium sizedcompanies out of the design users list.

Nonetheless design is evolving to become more strategic in nature. It means that businesses use design acrossthe length of their development process as also they use design to find new areas of business. Companies usedesign in different ways. Some use it as strategic tool and some relegate it to be used at the end of thedevelopment process for styling purposes. A handful of Indian companies use design strategically.

Architectural Design

Market

Architecture is a highly competitive and multi-disciplinary profession,

involving a variety of tasks.

As a field, it covers myriad disciplines, including spatial design,

aesthetics, project management and material management.

From our survey, out of the total number of designers working in the

country, this discipline accounts for the most with 81.25%.

Mumbai leads in terms of having maximum number of architects

followed by Pune and Delhi.

Current Activities

In terms of outsourcing, architectural services are gaining traction with scope including design development,detailed architectural plans, construction documentation, as-built drawings, shop drawings, and visualization(3D views & walk-through).

Architectural outsourcing service in India has the potential to grow to

$12 billion in the next four to six years, from its current level of $3.5 billion.

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Annual requirement projections of architects stands over 10,000 which are expected to rise further but thetraining facilities available are still short.

Future

One key aspect of architecture, which is coming up and expected to play an increasing role in architecturaldesign is environmental friendly buildings and structures. Green buildings will soon be a feature and a part ofpeople lives.

It is expected that India can garner 25 per cent-30 per cent of the world

wide green homes market, which is expected to see about USD$15 billion investments by 2012.

Interior Design

Interior design is a multi-faceted profession wherein creative and technical solutions are applied within astructure to achieve a built interior environment.

Interior decoration and designing in India are getting popular with a lot of people opting for the services oftrained interior designers for their houses / offices, etc.

Reason can also be attributed to the changing definitions of homes and modern residential houses, whichnow symbolize more with the personalities of their owners.

Interior design is also gaining popularity among workplaces and is being considered as a science helping toreduce stress and fatigue thereby increasing productivity.

The services provided by interior decorators and designer cover a wide range of areas and include Interiordecoration services, furniture and furnishings, facilities design, mechanical designing, residential interiorarchitecture, etc.

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Sector wise allocation

Customer segmentation according to trends

20%

15%

15%

40%

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Sector wise allocation

Customer segmentation according to trends

30%

20%

new residence

renovations-residence

office

hospitality

education & other

7%17%

36%

intrinsic progressive

social chameleon

traditional

pleasure seeker

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Sector wise allocation

Customer segmentation according to trends

renovations-residence

intrinsic progressive

social chameleon

pleasure seeker

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Intrinsic progressive7% male young population

Needs value service personal styleQuality Futuristic adequate competent Sustainable designValue for money Tech savvy Little involvement reliable futuristicEmbrace newpossibilities

Executive class success

intelligent

Social chameleon17% (30-40 years)

Needs Value Service Personal styleStandard Hypocrite Fast sophisticated Current trendLess qualityconscious

Tech savvy Cheap Upper class

More value,lessmoney

Individual Little adequate charming

Pleasure seeker40% young

Needs Value Service Personal styleHigh end Self oriented Fast Up to date experimentalbranded Risk taker Clean spiritedEye catching Young,married adequate charming

Less involvement

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Traditional36% all age groupNeeds Value Service Personal styleQuality conservative Security Down to earth simplereliable Value driven reliability honest traditional

Family person More involvement

Area current rates

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Action plan for the year 2014-2015 (approx figure)

The approach to promote U&I Interiors with be through establishing relationships with key people in thecommunity and then through referral activities once a significant client base is established. U&I Interiors willfocus on developing solid and loyal client relationships offering design solutions based on the client's taste,budget, use, and goals for the space. The additional selection, accessibility of product, design services, andvalue-based pricing will differentiate Barton Interiors from the other options in the area.

Three segments that u&I need to target are

Residential, commercial and educational are the sectors u&I needs to focus

Leads generated in ayear

interested Actively interested Potentiallyinterested

conversion

125000 12500 1250 125 25

2014-2015 monthly sales target

Month Monthly sales Quarterly sales Yearly salesApr-14 102.42 172.50 600May-14 12.48Jun-14 57.60Jul-14 16.44 168.54Aug-14 84.78Sep-14 67.32Oct-14 68.04 199.50Nov-14 57.66Dec-14 73.80Jan-15 40.20 59.46Feb-15 19.26Mar-15 0.00total 600.00 600 600

Promotional ideas1. Search Marketing Get your prospect at the time of their decision-making.

Search engine optimisation (Higher rankings)

Paid Search

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Paid for inclusion / feeds

2. Online PR Create Awareness of your brand by getting it mentioned.

Industry Portal Representation (eg Thehousedirectory.com)

Social Media (blogs, feeds, communities)

Media Alerting Services

Brand Protection

3. Online Partnerships Link your brand WITH OTHERS IN YOUR INDUSTRY

Affiliate Marketing

Sponsorship

Co-branding

Link building good relevant links only.

Widget marketing

4. Offline Communications You should know these.

Advertising

Personal selling

Sales promotion

PR

Sponsorship

Direct Mail

Exhibitions

Merchandising

Packaging

Word-of-mouth (your old clients are your best and cheapest salespeople)

5. Interactive Ads

Site-specific Media Buys (only if you target businesses)

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Ad networks

Sponsorship

Behavioral targeting

6. Opt-in Email

House list emails (your clients and prospects)

Cold (rented lists) not normally a good idea

Co-branded (share the marketing load wisely and boost your brand image)

Ads in 3rd party newsletters

7. Viral Marketing Electronic variants of traditional word of mouth

Pass along emails

Word-of-mouth (eg using the share & enjoy functionality below)

Buzz marketing

Generating media mentions

Lead generation

Online enquiries Referrals Contacting builders and brokers Standee at upcoming projects Home loan applications Email marketing Social media