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 firm will serve customers seeking interior design products and services, including consultancy and to be referred to interior design products. The business will provide personalized products and services to the target market to make office and home interiors 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 leading 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.
Free Style Marketing Plan
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 intend to provide 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 interior design products and materials, 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
- The firm will attain $3,870 in sales revenue, on average, monthly, for year one and $5,720 and $6,600 for the next two years, respectively.
- 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. To begin with, the company targets newlyweds and young families in Canada seeking interior design services and products. The entrepreneurs will conduct research and use surveys to receive customer feedback and reviews and understand the customer base and available opportunities for expansion. Such studies will also provide insight into the characteristics of a typical brand that customers need and comprehend the mechanism that can be used to improve products and services. 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 primary 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.
- Marketing well-selected products to buyers seeking to meet their needs and expectations in interior design.
- 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 guide clients about the best products in terms of furniture, designs of decorator fabrics, lines of drapery, and other accessories.
The firm will offer the following points of differentiation:
- They will provide an exceptional customer experience with services provided by experts in interior design (the two partners) to ensure that customers meet their needs and expectations.
- Providing diverse new and antique furniture, interior design accessories, and special-order decorating fabrics.
- Providing customers with personalized help and referrals to excellent furniture, hardware, and hard-covering window treatments.
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 SWOT covers the main internal forces (strengths and weaknesses) and external forces (opportunities and threats) that affect the firm’s operations and success.
| 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 is created through a strong 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 the 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
|
The analysis reveals a substantial market for the company, but owners should address the weaknesses and threats to achieve the intended objectives.
Strategy Pyramid
The strategies listed below provide a summary of the company’s implementation plan for the following year. They will comprise expansion to non-fabric revenue streams, in-store revenue streams, and online sales activities.
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 solid 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 strategy will be implemented by facilitating and communicating the firm’s products and services using the site and social media tools. 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 by selecting 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 owners will create a market profile using various factors, such as geographical, demographical, psychographic, and behavioral variables:
Geographical Factors
Geographically, the company will operate and provide its services in Ontario, Canada. 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 the 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 offers personal expression. They have the resources and the designs targeted at diverse clients. While they will design personalized, unique, and tasteful home and office spaces, they will work with the client to meet their needs and expectations in interior design. Hence, 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 a practical 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 firm will focus on inspiring, inviting, and motivating marketing for its services and products.
The marketing strategy will focus on various spheres, including:
- Unique interior design products and services
- Unique consulting services.
- Customized and specialized services and products
- The overall quality of the experience.
- Excellent services to customers to an exceptional experience.
Through marketing, the company will increase product and service awareness to obtain the interest and appeal to consumers. The strategy will be implemented to entice 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
Therefore, the marketing mix will be the local area where the company will market its products and services. For instance, the company will market its products and services in Ontario, Canada. Hence, 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 company forecasts to get a modest 12% growth rate in revenue during the first year. However, economic unpredictability in recent years should be considered since it will affect 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.
