SYNOPSYS

“ASSESS THE MARKET PROJECTIONS AND CURATE FINANCIAL

STRATEGIES FOR MARKET EXPANSION FOR A RETAIL BUSINESS”
 CONTENTS FOR SYNOPSIS

1. Introduction for the Study –

2. The Problem, The Concepts The Theory
3. Need for the Study
4. Objectives of the Study
5. Scope of the Study
6. Period of the Study
7. Research Methodology
8. Limitations of the Study
9. Chapter Plan
10. .References (Bibliography – Tentative)
 INTRODUCTION FOR THE STUDY

In 21st century, developments all around the world spread very fast thanks to the
globalization movements and information technologies. These changes and developments force
businesses to grow and overtop their competitors. Growth is, in fact, a part of natural process of
businesses, yet it has become a necessity in today’s conditions of competition. Businesses need
to develop new products and services, find new market places and consequently grow. National
and international businesses which are currently carrying on their activities need to perform
internal and external environmental analysis and determine their growth strategies according to
the analyzed data. In this study, alternative growth strategies were examined and objectives and
types of these strategies were tried to be explained.

1. Growth in Businesses

A business strategy helps businesses to improve their competitive status and determines the
performance of businesses in industry (Wheelen, T. L., & Hunger, J. D., 2012, p. 183). Thus,
growth is a must for businesses to survive in developing industries. Businesses need to be in a
continuous change and development process in order to make progress.

Growth means both quantitative and qualitative development in businesses. Quantitative growth
means an increase in current output, sales revenue, product range, extent of resources (number of
employees, capital sum etc.) and investments. Qualitative growth is about developing the quality
of business elements. Therefore it is difficult to explain qualitative growth with quantitative
terms.

However, since a business with qualitative growth also shows signs of quantitative growth, we
can say that quantitative growth can be the result of qualitative one. Growth is a way to tell what
a business want to do in accordance with its goals and objectives (Kotler, P., 1984, p. 292).
Growth covers technical and administrative developments in order to reach the goals. In other
words, it explains an increase in size and amount of business elements, such as; make, property,
technology, human etc (Öncer, A. Z., 2012, pp. 406-407).

There are several reasons which force businesses to grow. The first and the most important
purpose of the growth in businesses is that it provides businesses with advantages against their
rivals and help them to become resilient against difficulties. Targeting growth, help businesses to
know their environment closely. Therefore, managers are forced to adapt themselves to the
development and changes in the future (Eren, 1987). Growth is also related to productivity
(Buzzel, Bradley, & Ralph, 1975). Businesses need to grow not only to reach targeted goals but
also to maintain their current status.

2. Growth Strategies

Growth strategies of businesses is a vey wide area to study and apply. Businesses try to reach
sale and profit rate they aimed thanks to growth strategies (Yükselen, 2013, p. 57). Businesses
can grow by merging with other businesses or by buying them.

We can examine growth strategies in two basic categories, which are organic and inorganic
growth strategies. (Demirci, 2007, p. 35). Intensive growth strategy, diversification and
modernization strategies constitutes organic strategies. Strategic partnership and merger are in
the scope of inorganic strategies.

2.1 Organic Growth

Also being called as internal growth, organic growth expresses economical, physical, social and
organizational growth which takes place in a company without external interaction. (Öncer,
2012, p. 408). It occurs when current activities in a business are developed by either increasing
the amount of sales or adding new products. In other words, businesses usually depend on their
resources in the process of organic growth. Internal finance, borrowing and finding new capital
stocks are equities in organic growth process (Şimşek, 2008, p. 43). Augmentation of assets in
companies, successful customer relationship management, making use of the technology,
innovation management and focusing on the processes related to products are included in the
organic growth (Bruner, 2004, pp. 44-50). Since it is slow and requires little amount of change,
organic growth can be planned and managed easily (Çolpan ve Hikino, 2008, p. 38).

Organic growth usually happens when companies increase their capacity of products and make
an alliance with international businesses. As a result of organic growth, increase in the amount of
capital stock, equity, feedstock and energy input and the number of employees and growth in the
business structure can be observed. In addition to this, increase in the reputation and value of a
business in public opinion is also considered as organic growth. (Öncer, 2012, p. 408). Extending
the work scale of a business and increasing its sells, endorsements and equities are performed by
organic growth diversification strategies. Using diversification strategies, businesses can enter
different business districts and perform an organic growth with market, product, service and
production scales. (Karaevli, 2008) In this way, companies aim to minimize the risk by operating
in different areas.

Organic growth strategies are divided into three groups. These are; intensive growth,
diversification and modernization strategies (Yükselen, 2013, p. 57), (Engin, 2005, p. 22),
(Erkoç, 2006, pp. 38-39), (Kotler, 1984,Intensive Growth Strategy Ansoff has explained
intensive growth strategies in four categories based on product and market criteria. These are;
market penetration, market development, product development and

RETAIL EXPANSION STRATEGY

Small and medium-sized retail businesses have an average monthly revenue of

around $22,341. Shoppers spend about 69% of their discretionary income in a retail store each
month.

If your business has beaten the odds to be a part of the 80% of small businesses to survive past
the first year, congratulations! All of your hard work has turned into a profitable business.

Now’s the time to start thinking about how you’ll capitalize on your growing success. If you
don’t make a move now, the growth will stagnate and you’ll lose momentum.

So, what do you do? You need a retail expansion strategy.

Growing your retail business may seem daunting, but don’t let it scare you into inaction. With a
little careful planning, you can create a winning retail strategy that’ll help you achieve and
exceed all your goals!

Every business, no matter how small or big it is, needs a plan. Strategy in retail is vital to the
expansion of the business.

With the right market expansion strategy, you can:

Increase sales

Add store locations

Expand your business into other markets

Grow the size of your business

Afford more labor

You can build up your company by developing a strategy and following it. Some steps might
give you an immediate ROI (return on investment), while others may require long-term
commitment before you start to notice any gains.

How to Grow Your Retail Business

Owning and running a business is the dream of many a person. If you’ve already taken the first
steps toward that dream and want to ensure it thrives, you need to invest in a retail expansion
strategy.

This guide will provide several tips on how to develop a marketing strategy that works for your
business.

1. Promote Your Current Products

If you want to sell more of your existing products, you need to help give customers excuses to
spend their money. Promotions and loyalty programs are a great way to convince a person to
make a purchase before they miss out. Repeat customers who are loyal to your brand are worth
ten new customers who buy only once.

2. Focus On Atmosphere

Customers enjoy shopping in brick-and-mortar buildings for the experience. The more full of
unique personality a store is, the more likely customers will drop in out of curiosity.

Determine an event or theme that fits your business niche. For example, if you’re a retail store
that sells infant and children’s clothing, hold a special children’s event like a picture book
reading. Or maybe install a play area in the corner of your store for children to play with while
busy moms shop.

3. Expand Your Audience

If you’re wanting to increase your revenue growth, then one tactic is to branch your business out
into other products. If you’re an infant and children’s clothing store, maybe add toys, infant food,
or infant bath supplies. Busy moms will appreciate having a one-stop-shop for their child.

This type of expansion move can be costly. Purchasing new products that expand your market
requires capital. If you need help with funding, look into various options like a term loan.

4. Open an Online Store

If you haven’t yet started an eCommerce site for your business, do so at once. About 51% of
Americans prefer to do their shopping online. Not only that, but 82% of smartphone users
research a product online before making an in-store purchase.

If your business doesn’t have an online presence, much less an eCommerce section for customers
to purchase from, you’re losing out on a huge percentage of your potential customer base. Where
you’re losing, your competitors are benefiting.

5. Online Security

This tip ties into the previous one. If you open up an eCommerce site, it had better promise a safe
online transaction. The last thing any customer wants to worry about is whether their credit card
information will get phished from your site.

Your eCommerce site will need to meet the data security standards set forth by PCI Compliance.
A part of this means you’ll want to get your site SSL certified. Customers will feel safer seeing
the padlock symbol in the web address bar so that they know their credit information is secure
when entered.

6. Dive Into New Sales Channels

If you aren’t yet on social media or investing in any type of content marketing, now’s the time.
Content marketing is cheaper than traditional marketing and will generate 3 times as many leads.
A percentage of those new leads will then convert into paying customers if your sales funnel is
optimized.

If you haven’t been working on building your brand image, explore using Instagram, Facebook,
or Twitter. It’s a free way to market your products, build up your brand, and grow a loyal
customer base.

People don’t respond to hard pitches like they used to. Now, customers are motivated by
personalized ads that they can relate to. If people connect with a story or find your content
useful, the next step they’ll take is to look for ways to support your business.

7. Attend or Hold Events

Take part in your local community and attend local events. See if you can set up a pop-up
vending stand at the event to sell your products. On International Small Business Day, many
cities and towns hold sidewalk events for the downtown area. Show up to all of these organized
events to help spread awareness of your store.

If there’s nothing going on nearby, hold your own event. Offer special discounts or promotions
during your event to encourage sales. Decorate your store with a unique theme to help improve
the customer’s experience and enjoyment of browsing your wares.

Change Grows a Business

Whatever strategy you decide to choose will depend upon your unique business. Every small
business is unique and requires a different approach to grow its influence.

With the right retail expansion strategy, you’ll soon see your profits climbing and your goals met
and surpassed. We hope this guide helped give you a few ideas on how to go about expanding
your business.

Founded in 2014 in Kansas City, Strategic Capital helps provide capital to the small business
community. We help fund the dreams of entrepreneurs looking to grow their business into an
empire. Strategic Capital aims to provide the best funding options that match the needs of your
business.
 THE PROBLEM, THE CONCEPTS THE THEORY

Retail is defined as “Any business that directs its marketing efforts towards satisfying the final
consumer based upon, the organisation of selling goods and services as a means of distribution.”

The word retail has been derived from the French word ‘re-tailler’ which means ‘to cut, trim or
divide’. Thus retailing means, to sell goods in small quantities. Retailing not only covers the sale
of goods which are tangible but also includes the sale of services to individual customers.

The term retailing has a much wider scope than it seems. Retailing not only covers the sale of
goods which are tangible but also includes the sale of services to individual customers.

Jaworski (2018) The study addresses following issues: (1) the 'promising' resources
that the train has in play; (2) the slide towards scholarly unimportance and, in this manner, the
'issue';

(3) Chase's perceptions on how the slide may be turned around; and (4) my perspective on what
should be possible to invert the slide.

Voorveld et al. (2018) The study examined how shoppers' commitment with social media stages
drives commitment with publicizing installed in these stages. The discoveries demonstrate that
commitment is exceedingly setting particular; it includes different kinds of encounters on every
social media stage with the end goal that each is knowledgeable about a special way. It is
additionally demonstrated that commitment with social media promoting itself is entered in
clarifying how social media commitment is identified with publicizing assessments. It concluded
that there is no such thing as "social media."

Olson et al. (2018) Attributes of the marketing association and their association with technique
usage have been the focal point of significant research in the course of recent decades. These
qualities incorporate the marketing association's structure, culture, procedures, impact and
initiative, among others. In any case, little consideration has been paid to human asset
administration arrangements for marketing work force. These approaches, when legitimately
actualized, are among the most grounded sparks for suitable individual and authoritative conduct.
Firms whose business and marketing methodologies adjust (Fit) exhibited fundamentally more
grounded general firm execution scores than those whose business and marketing procedures
don't adjust (Misfit).
Dawes (2018) The Ansoff Matrix has been broadly instructed as a component of business
training for more than 50 years. It depicts development alternatives as a 2 x 2 matrix of choices,
with one pivot speaking to items (existing/new) and the speaking to business sectors
(existing/new). Two sensible issues emerge from the matrix. The two issues identify with
suspicions or translations relating to newness. On the off chance that one accepts a new item
truly is new to the firm, much of the time a new item will at the same time bring the firm into a
new, new market. All things considered, one of the Ansoff quadrants, specifically broadening, is
excess. On the other hand, if a new item does not really bring the firm into a new market, at that
point the mix of new items into new markets does not generally liken to broadening, in the
feeling of wandering into a totally obscure business - which the model, and numerous ensuing
elucidations of the model in course readings, expects.
 Competitive Comparison

Our competition is primarily from other interior designers.  Looking at a broader picture,
there is also competition from the "do-it-yourself" resource providers that have retail stores
and websites that include the following:

 We have done agreement with Hatil, Otobi for providing furniture but we don’t take the
regular designed furniture of hatil or otobi. First we talk with our clint try to understand
about their demand then we make design by our designer and that design furniture make
otobi and hatil.
 Bed sheet, pillow and other fabric related accessories we collect from otobi and home
textile but we try to change color, print and some design of fabric according to our
customer choice.
 Other accessories also made in different way according to our customer choice.

Sales Literature

A simple and professional looking catalog will be available to provide to transfer sources,
leave at seminars and on a select basis, use for direct mail purposes.

Market Analysis Summary

Nest Interior Decor has a defined target market client that will be the basis of building this
business.  This client is identical for both the residence and office spaces, but the
target market is identical based on her different roles for each of those spaces. 

Effective marketing combined with an optimal product offering is critical to the Nest Interior
Decor success and future profitability. The owner possesses solid information about
the market and knows a great deal about the common attributes of those that are expected to
be prized and loyal clients. This information will be leveraged to better understand who Nest
Interior Decor will serve, their specific needs, and how to better communicate with them.

Market Segmentation
 The profile of the Nest Decor Interior client consists of the following geographic,
demographic, psychographic, and behavior factors:

Geographic’s

 The geographic market is the well-off sector within the Dhaka area with a population of
15 million.
 The total target market population is estimated at 2 million based on the following
demographics.

Demographics

 Female, married and have attended university.

 Have children, but they are not necessarily at home.
 A combined household annual income greater than tk100000.
 Age range of 35 to 55 years, with a median age of 42.
 They and/or their spouse work in a professional setting and may have interior design
requirements for their office space as well as their homes. 

The following is known regarding the profile of the typical resident of Dhaka:

 67%  have lived in the area for seven years or more.

 23%  are between the ages of 35 and 44.
 40%  have completed their education.
 24%  are managers, professionals and/or owners of a business.
 53%  are married.
 65%  have no children living at home.

Psychographics

 The appearance of her home is a priority.

 Entertaining and showing her home is important.
 She perceives herself as creative, tasteful and able, but seeks validation and support
regarding her decorating ideas and choices.
 She reads one or more of the following magazines:

 Mirror.
 Canvas.
 Anannya
 Nishorga

Behaviors

 She takes pride in having an active role in decorating their home.

 Her home is a form of communicating "who she is" to others.
 Comparison positioning and stature within social groups are made on an ongoing basis,
but rarely discussed.

Nest Interior Decor is providing its clients the opportunity to create a home environment to
express who they are. They seek design assistance and have the resources to accomplish their
goals.  They desire their home to be personal, unique, and tasteful as it communicates a
message about what is important to them. Nest Decor Interiors will seek to fulfill the
following benefits that are important to our clients.

Target Market Segment Strategy

Our marketing strategy will create awareness, interest, and appeal from our target market for
what Nest Interior Decor offers its clients. Our main target is middle class woman and small
& medium enterprises of Dhaka city. The target markets are separated into four segments;
"stylish woman having less time”, “last age woman," "Professional Youngsters," and
"uprising business enterprises." The primary marketing opportunity is selling to these well
defined and accessible target market segments that focus on investing discretionary income in
these areas:
 Country Club Women - The most dominant segment of the four is comprised of women in the
age range of 35 to 50. They are married, have a household income greater than tk100, 000,
own at least one home or condominium, and are socially active at and away from home.

Last age woman - This group, typically ranging in age from 50 to 65, is going through a
positive and planned life transition.  They are changing homes (either building or moving) or
remodeling due to empty nest syndrome, retirement plans or general downsizing desires. 
Their surprisingly high level of unrestricted income is first spent on travel, with decorating
their home a close second.  This is what makes this segment so attractive.  The woman of the
couple is the decision maker, and often does not always include the husband in the selection
or purchase process.

Professional Youngsters - Couples between the ages of 25 and 35 establishing their first
"adult" household fall into this group.  They work, earn in excess of tk960000 annually, and
now want to invest in their home.  They seek to enjoy their home and communicate a
"successful" image and message to their contemporaries.  They buy big when they have
received a promotion, a bonus.

Uprising business enterprises- small & medium enterprises that are starting their business or
getting success continuously and want establish their office permanently we focus on them.

Market Growth

Now days In Bangladesh flat buying trends are more popular. Because making building is
very costly & difficult job. Middle class people whose earning tk100000 or more then that
they buy flat. And they want to decorate their flat tastefully & attractively. So growth of
interior designing market increasing day by day.

Market Needs

Nest Interior Decor will provide its clients the opportunity to create a home environment to
express who they are. They have the choice to actively participate in the design, look, and feel
of their home. They desire their home to be personal, unique, and tasteful as well as
 communicate a message about what is important to them. Nest Interior Decor seeks to fulfill
the following benefits that we know are important to our clients.

Service Business Analysis

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

 Potential Competitors: There are many other interior designers in the Dhaka area and
these competitors range from those that provide simple-focused services, such as draperies
only, to a more full-service interior design approach similar to Nest Interior Decor
 Power of Suppliers: Moderately high in most anyone that has a business license can
have access to wholesale purchase of furniture, fabrics and accessories.
 Power of Buyers: Very low as buyers work within the financial terms and product
availability offered through the suppliers that specify the terms and conditions.
 Competition: Moderately low with the "territorial" structure that the industry
experiences and moderately low exit barriers.  The easy entry is accompanied with an easy
exit and people get out when it is not working.

With the slow, but steady, growth of the past few years, the industry is now experiencing a
"cautious optimism" regarding the future. Growth and expansion activities for most areas of
the interior design industry appear to be carefully considered.  Many in the industry continues
to decide what to do and buy as the economy has experienced a slowdown and increased
uncertainty from the more economically confident 2000's.

Distributing a Service

We offer three different package for home designing and two for office designing. The
packages mention below:

For home design:

1. Plywood charm: under this package all furniture will made by plywood. This package
price is tk40, 000.included fabrics & other accessories.
 2. Ironic splendor: under this package all furniture will made by iron. This package price
is tk70, 000.included only fabrics.
3. Wooden grace: under this package all furniture will made by wood. This package
price is tk1, 00,000.here we only provide furniture.

For office design:

 Office xatras: here we will use plywood & metal made furniture.
 Office royalty: here we will use all wood made furniture.

Main Competitors

Current local competition includes the following:

 Interior Designers: There are 18 interior designers listed in the Bangladesh Yellow
Pages that offer fabric as a part of their services. Interior designers make profit off mark-
up of fabric in addition to their hourly services charges. Their costs per yard are typically
higher since they do not benefit from retail or volume discounts. Therefore, their costs to
their client are often two to four times higher than the price per yard from Nest interior
decor.
 House of Fabrics: Nationwide recognition and buying power of numerous types of
dated fabric with strong product availability. This store has experienced financial difficulty
in recent years and has closed several locations throughout the country.
 Warehouse Fabrics: Locally owned, offering low-cost products with a wide selection
of discontinued fabrics and only a limited number of "current" fabrics. This warehouse
concept offers marginal client service with what many "upper end" clients consider to be
an "undesirable" shopping environment.
 Website Providers: Fabric sales over the Web are limited at this time, and this will be
a source of competition for the future to watch. Currently, there is no measurable impact
on our market through competitive websites.

Strategy and Implementation Summary

 The primary sales and marketing strategy for Nest Interior Decor includes these factors:

 A premier interior design consulting experience that provides impressive client service
throughout.
 The sale of other complementary products that adds value for the client's total
experience
 Providing an experience that will result in repeat business for home and/or office
needs and client referrals.
 This strategy will be implemented through the tactics and programs described in this
section.

SWOT Analysis

The following SWOT analysis captures the key strengths and weaknesses relating to the
market analysis summary and describes the opportunities and threats facing Nest Interior
Decor.

Strengths

 The proven ability to establish excellent personalized client service.

 Strong relationships with suppliers that offer flexibility and respond to special
product requirements.
 Good referral relationships with architects and local 0rganizations.
 Client loyalty developed through a solid reputation among repeat, a little bit higher
purchase clients.

Weaknesses

 The subscriber is still not aware of interior decoration.

 Not well established in a market where a variety of interior design options exist.
 Challenges of the seasonality of the business.

Opportunities
  A significant portion of our target market is desperately looking for the services
Nest Interior Décor will offer.
 Strategic alliances offering sources for referrals and joint marketing activities to
extend our reach.
 Promising activity from new home and real estate construction firm.
 Changes in design trends can initiate home updating and, therefore, generate sales.

Threats

 Continued price pressure due to competition or the weakening market reducing

contribution margins.
 Dramatic changes in design, including fabric colors and styles can present challenges to
keep pace with what is desired by what is expected to be a leading-edge client base. 
 Expansion of products and services offered by other firms and stores into the local
market.
 Catalog resources and foreign based decoration in multinational organization.
 This analysis indicates solid potential success, but the weaknesses and threats must be
recognized throughout the life of the venture.
 MARKET PENETRATION STRATEGY

One growth strategy in business is market penetration. A small company

uses a market penetration strategy when it decides to market existing products within the
same market it has been using. The only way to grow using existing products and markets
is to increase market share, according to small business experts. Market share is the
percent of unit and dollar sales a company holds within a certain market vs. all other
competitors.

One way to increase market share is by lowering prices. For example, in markets where
there is little differentiation among products, a lower price may help a company increase
its share of the market.

Market Expansion or Development

A market expansion growth strategy, often called market development, entails selling
current products in a new market. There several reasons why a company may consider a
market expansion strategy. First, the competition may be such that there is no room for
growth within the current market. If a business does not find new markets for its
products, it cannot increase sales or profits.

A small company may also use a market expansion strategy if it finds new uses for its
product. For example, a small soap distributor that sells to retail stores may discover that
factory workers also use its product.

Product Expansion Strategy

A small company may also expand its product line or add new features to increase its
sales and profits. When small companies employ a product expansion strategy, also
known as product development, they continue selling within the existing market. A
product expansion growth strategy often works well when technology starts to change. A
small company may also be forced to add new products as older ones become outmoded.

Growth Through Diversification

 Growth strategies in business also include diversification, where a small company will
sell new products to new markets. This type of strategy can be very risky. A small
company will need to plan carefully when using a diversification growth strategy.
Marketing research is essential because a company will need to determine if consumers
in the new market will potentially like the new products.

. Marketing Strategy

The marketing strategy is based on establishing Nest Interior Decor as the resource of choice
for people in need of interior design ideas and products.  The more involved "do-it-yourself"
and the "buy-it-yourself" clients will find the consulting and guidance helpful. All clients will
find Nest Interior Decor to be a resource to decorate their homes and offices in a way that
is inspiring, inviting, motivating and good looking.

Our marketing strategy is based on superior performance in the following areas:

 Unique consulting services.

 Product choices specifically chosen for each individual client project.
 Overall quality of the experience and the result.
 Excellent client service and support regardless.

This marketing strategy will create awareness, interest, and appeal from our target market for
what Nest Interior Decor offers our clients.  This will be executed in a manner that will
welcome them to come back for repeat purchases and encourage them to refer friends and
professional contacts.

Pricing Strategy

Product pricing is based on offering competitive value to our clients compared to others in the
market. Value is determined based on the best design services, providing a "picture" of what
 the space will look like before the work begins convenience, and timeliness in accomplishing
the goal.

Promotion Strategy

The promotion strategy will focus on generating referrals.  Other potential sources of
promotion include:

 Newspaper Advertisements: Select advertisements in the National Daily Bengali and

English newspaper.
 Television Advertisements: Introduce a documentary program on "Interior
Decoration" and attractive advertisements in local television channels.
 Quarterly Postcard: A greetings card to be distributed to the client mailing list on
different occasions.
 Website: Traffic from www.nestinteriordecor.com.

Distribution Strategy

The primary source of distribution is through the tradition retail distribution channel.  On a
secondary basis, it will be through the website via e-mail inquiries and phone sales, or directly
from the site itself.

Marketing Programs

The single objective is to position Nest Interior Decor as the premier source for home
decorator service in the urban and semi urban area, commanding a majority of the market
share within three years. The marketing strategy will seek to first create client awareness
regarding the products and services offered, develop that client base, establish connections
with targeted markets and work toward building client loyalty and referrals.

Nest Interior Decor’s four main marketing strategies are:

1. Increased awareness and image.

2. Leveraging existing client base.
 3. Cross selling.
4. New home construction promotion.

The strategies will be implements through the following marketing tactics and programs.

Strategy #1 INCREASED AWARENESS and IMAGE - Informing those not yet aware of
what Nest Interior Deco offers.

 Advertising
 Daily News Paper
 Television channels.
 Referral Generation
 "Open house" promotions.
 Complementary customer referrals.
 Organization Relationships
 Co-sponsorship of fund raising activities.
 Participating in social and service events.

Strategy #2 LEVERAGING CLIENT BASE - Our best sales in the future will come from
our client base.

 Client Service and Relationships

 Exceptional client service in the store.
 Follow up contact.
 Personal shopper support.
 Additional Experiences
 Classes.
 Demonstrations.

Strategy #3 CROSS SELLING - Increasing the average amount per transaction.

 Internal
 Additional sales of furniture, art pieces, and fabric and home accessories. 
 Look for office/commercial assignments.
 Prospecting
 Ongoing work including more involvement in the implementation phase.
 Future assignments based on additional work initiated by family changes and
transitions.

Strategy #4 NEW HOME CONSTRUCTION PROMOTION - Connecting with people

involved in the building process.

 Connecting with "Suppliers"

 Gift certificate program.
 Builders design support services.
 Loan Officers gift certificate program.
 Connecting with "Clients"
 Subscription and use of "newcomers" report.
 Chamber of Commerce new members update.

Positioning Statement

For the person that seeks to create a personalized and unique impression of home, Nest
interior décor is the source for client-oriented design services. Clients will be impressed with,
and return for, the services they receive and the outcome they have enjoyed.  Unlike other
interior designers or stores, Nest Interior Decor is a pleasant and tasteful resource that
encourages everyone in the process of decorating their home. Unlike using the services
of other interior decorators, Nest Interior Decor allows the individual to participate in their
design choices to the extent they choose, and realize greater value which they invest.

Sales strategy

The key to our sales strategy is referrals from pleased clients that are proud of the result Nest
Interior Décor provided them and pleased to tell their friends-people much like them. 
Keeping in contact with past clients to acquire repeat business and to remind them of this
referral opportunity will be key.  Sales activities will depend on creating awareness about the
 services Nest Interior Décor offers and then build on each and every client as they make the
decision to refer to others.

Sales Forecast

The sales forecast is broken down into three main revenue streams; residential consulting
revenue, commercial consulting revenue, and product sales.  The goal is to have these two
revenue streams be equal by the second year, with product sales slower to secure during year
one.  The revenue forecast for the upcoming year is based on a modest 50% growth rate.  The
economic unpredictability adds to the difficulty of making these projections. Table of Sales
Forecast is given below:

Sales Forecast Amount tk. Amount tk. Amount tk.

Year 1 Year 2 Year 3
Sales
Residential Consulting 50,000.00 80,000.00 170,000.00
Commercial Consulting 20,000.00 50,000.00 150,000.00
Product Sales 30,000.00 50,000.00 120,000.00
Other 0.00 20,000.00 60,000.00
Total Sales 100,000.00 200,000.00 500,000.00
Direct Cost of Sales
Residential Consulting 45,000.00 70,000.00 150,000.00
Commercial Consulting 20,000.00 45,000.00 130,000.00
Product Sales 20,000.00 45,000.00 100,000.00
Other 15,000.00 20,000.00 30,000.00
Subtotal Direct Cost of Sales 100,000.00 180,000.00 410,000.00
 Table: Sales by Year

Chart: Sales by Year

Sales Programs

In brief, our marketing mix is comprised of these approaches to pricing, distribution,

advertising and promotion, and client service.

Pricing - Residential consulting will bill at an average of Tk.75.00 per hour and commercial
consulting at Tk.100.00per hour.

Distribution - All services and products will be distributed directly through the personal
contact.

Advertising and Promotion –We promote our service by giving wide and effective
advertisement.

Client Service – Excellent and personalized client service is essential. This is perhaps the
only attribute that cannot be duplicated by any competitor.

The first goal is to recognize individualized needs of each client.  If they are a repeat client,
they benefit from the knowledge regarding their lifestyle and taste that was gained from the
previous experience.
 Strategic Alliances

Nest Interior Decor does have some dynamic alliances.  Based on initial research and
contacts, several architect firms are willing to refer clients to Nest Interior Decor, Other
alliances include a retail store which focuses on gallery-type pieces for the home and office
and is expected to refer clients.  There is also a positive relationship with "Interior
Fabricators" and this business is expected to be a referral resource. Strategic online alliances
do not exist at this time.  This will be an area of concentrated development for the future and
is reflected in our milestone chart.

Milestones

The milestone chart below accompanied by the graphic outlines key activities that will be
critical to Nest Interior Decor’s success in the coming year.

Milestones
Milestone Start Date End Date Budget Manager Department
Year Buying 1/1/2012 28/2/2012 20,000 Antora Products
Program
Advertising 1/3/2012 30/4/2012 50,000 Antroa Promotion
Seminar Schedule 1/5/2012 15/5/2002 7,000 Antroa Marketing
& Prep.
Seminars 16/5/2012 30/5/2012 15,000 Antora Marketing

Client 1/6/2012 30/8/2012 18,000 Antora Marketing

Review/Analysis

Year End 20/12/2012 31/12/2012 17,500 Antora Management

Evaluation
Totals 1,27,500
 Break-even Analysis
The break-even analysis below is expressed as a per-month. This is based on average monthly
billing; service earned, and costs per client. Break even point is monthly client basis. Given in
next page:

Units (# of client) Fixed Costs Total Costs Total Revenue Profit

0 Tk. 50,000 Tk. 50,000 Tk. 0 (Tk. 50,000)

1 Tk. 50,000 Tk. 51,000 Tk. 50,000 (Tk. 1,000)

2 Tk. 50,000 Tk. 52,000 Tk. 100,000 Tk. 48,000

3 Tk. 50,000 Tk. 53,000 Tk. 150,000 Tk. 97,000

4 Tk. 50,000 Tk. 54,000 Tk. 200,000 Tk. 146,000

5 Tk. 50,000 Tk. 55,000 Tk. 250,000 Tk. 195,000

6 Tk. 50,000 Tk. 56,000 Tk. 300,000 Tk. 244,000

7 Tk. 50,000 Tk. 57,000 Tk. 350,000 Tk. 293,000

8 Tk. 50,000 Tk. 58,000 Tk. 400,000 Tk. 342,000

9 Tk. 50,000 Tk. 59,000 Tk. 450,000 Tk. 391,000

10 Tk. 50,000 Tk. 60,000 Tk. 500,000 Tk. 440,000

Table: Break-even
Analysis

Fixed Costs
Total Costs
Total Revenue

Chart: Break-
even Analysis
At unit 2 our break even will occur. It means. Only two clients will per month will break even occur.

Important Assumptions

The following are critical assumptions will determine the potential for future success.

 A healthy economy that supports a moderate level of growth in the market.

 The ability to support a gross margin percentage in excess of 65%.
 Keeping operating costs low, particularly in the areas of product purchases ongoing
monthly expenses.
 Receiving an initial payment for each project of 50% of estimated time and product
purchases and collecting the balance of these revenues within 45 days of completing each
project.

General Assumptions
Year 1 Year 2 Year 3
Current Interest Rate 16% 16% 16%
Long-term Interest Rate 15% 15% 15%
Tax Rate 28.17% 28.00% 28.17%
Other 0 0 0

Table: General Assumptions

 Key Financial Indicators

The key financial indicators focus on cash flow.  There is nearly no inventory but late
payments for completed jobs will be a concern.  Timely billing and collection will be
critical.  All expenses are tracked on a monthly basis, recorded in the accounting software,
and will be compared to our business plan budget.

Start-up Summary

The following details the initial start-up expenses for Nest Interior decor.  Most equipment
costs are office related.  Sample and display costs include books, samples and resources
necessary to promote furniture, fabric and other home accessory products.

• Predominance of low esteem included items in modern yield and fares.

• Absence of mature market.

• Absence of advanced technologies in this sector. Opportunities

• Subcontracting and venture openings:

o Foreign organizations can enhance aggressiveness of their items, using key favorable
circumstances of Indian market: involvement, low expenses and very much created foundation.

o Development of supply/creation chain from cost focused areas (Eg: China) (long haul
point of view).

• Supply of shopper and modern products:

o Developing economy builds the interest for semi-prepared modern products. As of now,
potential outcomes of nearby industry to fulfill such needs are somewhat constrained.

Threats

• Emerging industry bunches and gatherings.

• Increasing rivalry from neighboring nations.

• Limited potential outcomes for expansive organizations to contend on an equivalent
premise with vast number of nearby players.

6. SWOT/Situational Analysis of DANUBE HOME Group of Companies

DANUBE HOME Ltd. is considered to be the key player in this field. DANUBE HOME
GROUP OF COMPANIES, with a turnover of over Rs. 500 crores/ USD 125 million is the
world leader in the field of plastic moulded furniture and India's number one in the Material
Handling plastic crates industry.

It was in 1990 that DANUBE HOME started the manufacture of moulded furniture.

Following is the SWOT analysis of DANUBE HOME so as to ascertain where exactly

DANUBE HOME stands and what loop holes might exist.
It is a financially strong group and is diversified in various Plastics divisions. The major
strengths of the company are:

• National Leader; DANUBE HOME is the national leader and dominates the market.

• Pro-Active approach; market Saver Company and reacts to market needs immediately.

• Strong distribution in the country.

• Best product range – uniform presence in all segments i.e. economy, regular and
premium range.

• Financially strong.

• Vision for future; the company has a future vision and works on a global mind set.

• Strong in Below the Line (BTL) activities.

• Strong brand equity.

• 17 manufacturing plants in India.

• Strong Research and Development (R&D) department. The major weaknesses of

DANUBE HOME are:

• High prices; DANUBE HOME is 5-10% higher priced than its competitors like Supreme.

• Low Above the Line (ATL) advertising; for the last 3-4 years the company has reduced
its spending on ATL activities.

• Low presence in Retail

The opportunities for DANUBE HOME are:

• Company should look for new avenues in distribution channels in line with up-coming
opportunities.
• There are certain gaps in eastern India market and have lots of potential due for
exploitation. Thereby the company should re-look at sales & marketing operation in this part of
the country.

Major threat for DANUBE HOME is Supreme; it is a financially strong company and can take
DANUBE HOME head on.

7. Recommendations for Future Marketing Strategy

In order to be a dominant player in furniture industry, DANUBE HOME is suggested the

following marketing strategies:

1. Target Kid’s furniture kit

With the revolution of media, even the kid’s today are becoming brand conscious. There has
been a substantial increase in the number of brands like weekender kids etc. which are targeted at
the kid’s. All the major brands are launching a range of products which are mainly targeted at the
kid’s. Special kid’s products and a retail store for the same would be needed in this case.
a) Kid’s furniture set to include:
• Chair’s

• Dining table

• Racks

• Bed’s

• Bunker bed’s

• Rocking Chair’s

• Stools

b) Advertise the products as being designed with respect to safety by avoiding sharp edges.
This can become a trend or a fad, as kids tend to follow suit of other kids. If this is advertised
and promoted well, this can be one of the better selling products of DANUBE HOME.

c) The furniture set can be customized to suit the kid’s tastes. For eg: With cartoon shaped
designs or stickers, paints etc. This would appeal to the kids.
 NEED FOR THE STUDY

The value of the firm depends upon its expected Financial Forecasting. The rate used to
discount earnings stream it’s the firm’s required rate of return or the cost of capital. Thus, the
capital structure and Financial Forecasting decision can affect the value of the firm either by
changing the expected earnings of the firm, but it can affect the reside earnings of the
shareholders. The effect of leverage on the cost of capital is not very clear. Conflicting opinions
have been expressed on this issue. In fact, this issue is one of the most continuous areas in the
theory of finance, and perhaps more theoretical and empirical work has been done on this subject
than any other.

If leverage affects the cost of capital and the value of the firm, an optimum capital
structure would be obtained at that combination of debt and equity that maximizes the total value
of the firm or minimizes the weighted average cost of capital. The question of the existence of
optimum use of leverage has been put very succinctly by Ezra Solomon in the following words.

Given that a firm has certain structure of assets, which offers net operating earnings of
given size and quality, and given a certain structure of rates in the capital markets, is there some
specific degree of financial leverage at which the market value of the firm’s securities will be
higher than at other degrees of leverage?

The existence of an optimum Financial Forecasting is not accepted by all. These exist
two extreme views and middle position. David Durand identified the two extreme views the net
income and net operating approaches.
 OBJECTIVES OF THE STUDY

 To assess the long term requirements of funds and plan for application of internal
resources and debt servicing.
 To assess the effectiveness of long term investment decisions of DANUBE HOME.
 To offer conclusion derived from the study and give suitable suggestions for the efficient
utilization of capital expenditure decisions.
 Study effectiveness of financing decision on EPS and EBIT of the firm.
 Examining leverage analysis of DANUBE HOME .
 Examining the financing trends in the DANUBE HOME . For the period of 2016-2020.
 SCOPE OF THE STUDY

The problem needs to be limited in order to stay focused. This study restriction adjusted to
the capabilities of researchers. Limitation in this study is:

 Business strategies which collaborated with digital marketing strategies of DANUBE

HOME
 Plan the use of social media as an educational introduction to the brand and interior
design of DANUBE HOME
Therefore, the technical side of the interior design and architecture will not be addressed
in this research.

PERIOD OF THE STUDY

For the above mentioned PROJECT study period of 45 DAYS.
 RESEARCH METHODOLOGY

Data relating to DANUBE HOME Has been collected through

SECONDARY SOURCES:
 Published annual reports of the company for the year 2016-2020.
PRIMARY SOURCES: Websites
 http:moneycontrole.com
 Http;yahoofinance.com
 http;economicstimes.com
 Bloomberg financial reports
 Detailed discussions with Vice-President.
 Discussions with the Finance manager and other members of the Finance department.
DATA ANALYSIS
At each point of time a business firm has a number of proposals regarding various projects in
which, it can invest funds. But the funds available with the firm are always limited and are not
possible to invest trend in the entire proposal at a time. Hence it is very essential to select from
amongst the various competing proposals, those that gives the highest benefits. The crux of
capital budgeting is the allocation of available resources to various proposals. There are many
considerations, economic as well as non-economic, which influence the capital budgeting
decision in the profitability of the prospective investment.
Yet the right involved in the proposals cannot be ignored, profitability and risk are directly
related, i.e. higher profitability the greater the risk and vice versa there are several methods for
evaluating and ranking the capital investment proposals.
These tools access in the interpretation and understanding of the Existing scenario of the Capital
Structure.
 LIMITATION OF STUDY

1. The study is limited to DANUBE HOME Limited only.

2. The study is limited to certain projects of DANUBE HOME Limited.
3. Limited span of time is a major limitation for this project.
4. The act and figures of the study is limited to the period of FIVE years i.e. 2016-2020
5. The data used in reports are taken from the annual reports, published at the end of the
years.
6. The result does not reflect the day-to-day transactions.
7. It is also impossible to the study of day-to-day transactions in cash management.
8. The analysis of the capital is taken FIVE years.
 CHAPTALIZATION
Chapter- I : Introduction

Chapter- II: Theoretical Background

Chapter_ III : Industry Profile, company profile

Chapter- IV : Data Presentation and Analysis

Chapter- V : Findings, Conclusions and Suggestions Bibliography Appendix

 BIBLOGRAPHY

1) Financial Management : Khan & Jain

2) Financial Management : I.M. Pandey

3) Financial Management : Prasanna Chandra

4) News Papers : Financial Express

Economic Times

5) Websites :

www.google.com

https://danubehome.in/

www.capiatalindia.com