Business Plan

Leaf Interior & Exterior Pvt. Ltd. “we decorate your lifestyle”

1. EXECUTIVE SUMMARY

Leaf Interior & Exterior Pvt. Ltd. will be formed as an interior and exterior company that

specializes in furnishing interior and exterior solutions. The founders of the Company is

Mr. Rajesh Shrestha, Miss Unnati Shrestha, Miss Aarati Shrestha, Miss Ashma Katwal,

Miss Surakshya k.c with their joint investment.

LEAF focuses on providing customers with a complete solution to all their current and

future need of interior and exterior needs.

The main objective of this Business Plan is to conduct the Marketing Research analysis

and develop plans, policies and strategies for implementing them and sustain in the long

run.

This proposal pictures on various segments:

The product and services that LEAF will offer

The market analysis including existing environmental scanning, market

segmentation and targeting, and business analysis

The strategy and its implementation

The management team and the personnel plan

Finally, the financial plan covering break-even analysis, projected income

statement and the balance sheet.

1.1. MISSION STATEMENT

The mission of LEAF is to provide customers with a complete solution to all their

current and future need of interior and the exterior needs.

LEAF will establish a reputation for quality work and plans to continue to enhance

its image in the industry. The company seeks to become a well-known and respected

provider of advanced solutions of interior and the exterior by:

Increasing service offerings.

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Increasing availability and accessibility to current and future customers.

Creating innovative, unique, and cost-effective solutions to problems currently

faced by customers.

Coming up with several ideas for the perfect home.

More satisfaction in a limited medium price.

1.2. OBJECTIVES

The major objective of the LEAF is to provide customized services to the clients

based on their service needs, maintaining long term relationship.

The specific objectives are:

Capture more than 7 clients on a year.

Establish a proposal acceptance rate at 30%.

Conduct marketing strategy on the basis of extensive marketing research.

1.3. KEY TO SUCCESS

Marketing power. We need to have our products on the shelves with attractive

packaging and enough marketing power to maintain a 30% or more market share.

Products/ Services quality and customer satisfaction. Everything we sell is

guaranteed, so the products/ services have to do what we promise and well.

Long-term customer satisfaction is critical to our survival.

The right management team, with strong foundations in marketing, management,

and finance. Enough working capital to survive in the working-capital-intensive

environment.

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2. COMPANY SUMMARY

2.1. COMPANY INTRODUCTION:

LEAF Interior & Exterior Pvt. Ltd. will be Partnership Company formed under

Nepal Partnership Act 2020 established in May 2011. The founder and C.E.O. of the

Company is Mr. Rajesh Shrestha with the joint investment of the partners. It will be

one of the Leafst interior & exterior decorator companies with location at New

Baneshwor, Kathmandu. The Company will provide solutions for interior and

exterior views.

The basic goal of this plan is to extend the reach of the store to others outside the

area and add to the revenue base. LEAF is a company driven to provide customers

with a complete solution to their entire current and future need of interior & exterior

solutions. The company's customer base includes all consumers and all small- to

medium-sized businesses, including small to big houses.

LEAF benefits from several strategic alliances by receiving very competitive pricing

on most services, allowing the company to offer competitive pricing on its services

to customers. Competitive threats come from other interior & exterior organizations

located in or around Kathmandu, including the following companies: Style Interior,

Interior International, Sweet Home, etc. Most competitors offer solutions for interior

or some part of the house but we at LEAF deal with interior & exterior of the house,

we guarantee perfect customer satisfaction. With the rise of several interior and the

exterior organization, LEAF will focus to give the customer a very new and

innovative way of making home or any organization look comfortable in any

mentioned way.

LEAF will have a world-class management team with direct knowledge of the

interior and the exterior industry, extensive research experience, and unique

administration skills. It will include the most experience employees.

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2.2. LOCATION OF THE COMPANY

The Company will be located at New Baneshwor with office at Baneshwor Complex

#105, allocating 1000 square feet. The office system will be situated at the ground

floor of the Complex. The Company pays Rs. 25,000.00 per month as rental charge.

The Company has already signed the rental agreement of Rs. 75,000.00 for three –

months in advance.

The address of the Company is given as:

LEAF Interior & Exterior Pvt. Ltd.#105 RARA ComplexNew BaneshworKathmanduPhone No. 01-4870403, 4780404Facsimile: 977-1-4780405P.O. Box: 9878E-mail: [email protected]: http://www.Leaf.com.np

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http://www.fine.com.np/

mailto:[email protected]


3. PRODUCTS & SERVICES

LEAF will currently focus on the interior parts of home or any organization, by the end

of this year it will even come up with setting up several home plans that includes map of

the house, the required materials for the house, etc. The company will have access of the

website, the customer can have a easy access over the organization through the medium

of the website.

All services are competitively price and targeted to small earning customers as well. As

by the changing world everyone wants to make their living environment look good. The

main target of LEAF is to cope up with the medium earning families as well. LEAF will

also target businesses and small office/home office (SOHO) customers. LEAF feels that

this market segment has largely been neglected because of the amount of "hand-holding"

required by this segment, and the inability to pay the astronomical fees charged by many

other interior and the exterior organizations. By working to simplify the creation,

management, and support of our services, the company will enable customers to feel

more comfortable and relaxed when they reach home or to their work place. This will

make our customer more reliable towards us. With one customer satisfied with our

service, it will help us attract ten more customers. So we at LEAF will never ignore any

type of work that comes in our hand. We always will be more willing to take any type of

work that comes to us. This will help us to attract more customers to us.

With current facilities, the company can do the following:

Handle many customers.

Make them more attracted towards the organization

Make them understand the importance

Provide service of any kind.

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3.1. SERVICE DESCRIPTION

LEAF is an innovative, full-service of in offering interior and exterior solutions. The

company allows people and companies to access the perfect example of a house or a

work place. The organization will be at a tip toe in order to help the customers at any

mentioned time. LEAF comes up with several guarantees and warrantees of their job

done. The company provides many of the services that customers need to get on

time. The company provides both interior and consulting on topics ranging from

house to the office. The company has ongoing research and development to provide

solutions to current customer issues (placement of tables, bathrooms, etc.) and to

develop new ideas and services which enable the company to enter and compete in

new markets and attract new customers.

LEAF selects products and services which meet the following criterion:

Benefit to customers/company: The product/ services must materially benefit

the customer or the company in some way. This may manifest itself as a side

benefit, an improvement on current services, or additional revenue stream to the

company.

Cost/benefit ratio: The benefits realized must be at least as great as the cost of

implementation, production, and maintenance of the product.

Maintainability: The product and the service must be maintainable by LEAF

Interiors & Exteriors personnel. The company will maintain and look over the

complaints for the first six to eight month, according to the type of work done.

LEAF makes a concerted effort to keep customers informed and to remedy problems

in the shortest possible times. The company will continue to make high quality

support one of its primary goals. LEAF offers telephone support during extended

business hours (10 a.m. to 8 p.m.). The customers can also contact us through the

website and e-mail address. This will be a very easy means to get to us in a short

possible time.

3.2. FULFILLMENT

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Currently, all products and services are implementation-dependent, i.e., the customer

can buy and place according to their requirements. LEAF will extend the

functionality of product, and release those changes back to the development

community. The company's usage policy states that it will refund a portion of the

customers' fee if there is the same problem repeated continuously. The company will

make sure, and do a proper research for the problem. The company gives technical

advice to customers and technical support in case of small errors. The way to make

things clean, etc. And other important services which are offered by LEAF at no cost

to our clients.

3.3. FUTURE SERVICES

LEAF in the future will plan to extend its branch outside the valley. The need of the

interior and exterior has been a very common concept outside the valley. Many

people today are getting used to these changes. They can fulfill these changes

through the medium of LEAF as we extend our branch outside the valley. LEAF will

plan the proper house plan, make several outline design map for the perfect house or

big complex as well.

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4. MARKET ANALYSIS SUMMARY

Our marketing strategy is based on becoming the resource of choice for people looking

for decorator solutions for creating look in their home and offices. Our marketing strategy

is based on superior performance in the following areas:

Product selection

Product Quality

Customer service and responsiveness.

Our marketing strategy will create interests, awareness, and appeal from target market for

what LEAF offers our customers.

4.1. ENVIRONMENTAL SCANNING

In the first phase of the Marketing Plan, the environmental scanning is conducted.

The situational analysis is conducted for existing and new situation. The

environmental scanning provides the internal and external environment affecting the

organization. This phase includes following activities:

1. Analysis of Internal environment

2. Analysis of External environment

The descriptions of above activities are provided as under:

4.1.1 ANALYSIS OF INTERNAL ENVIRONMENT

The Internal or Micro environment consists of conditions and forces within the

organization that affect the performance and outcomes of marketing. It is

within the organization. It provides strength and weakness of the organization.

The components of the micro environment consist of:

i. Goals, policies and strategies : The organizations will have the primary

goal of achieving profit and have profitable relationship with other

members in the long run. Beside the secondary goals consists of:

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Increasing its market share

Employee welfare, and

Fulfilling social responsibility

The Company has policies and guidelines which are need for marketing

decision making. These policies are the channel effort towards goal

achievement and guidelines for future courses of action. The major policies are

outlined as:

Increase the market share every year by 15%

Maintain long term relationship with the customers

Working in TEAMS is crucial for the job done

Provide various benefits to the employees based on their

performance

The Company will fulfill its societal obligations by

providing funding to the necessary association and participates in societal

programmes.

The Company will develop and follows its strategies for achieving goals.

Action plans are developed by the personnel. The company follows its

operations according to the action plan. Various planning approaches are

followed to develop the action plans (such as the Gantt chart, Need and

Trend Analysis, Log Frame approach, etc.) Strategy formulation is done to

recognize customers and for profitable interactions that helps to have a

competitive advantage over the competitors.

It targets to turn visitors into buyers and buyers into repeated

buyers, and also to focus on the best customers.

Formulating referral were programs to collect customer data, and

share services.

In nutshell, the Marketing operate within the framework of goals, policies

and the strategies.

ii. Organizational culture : The culture of the Company encompasses

shared values, norms, beliefs, customs, symbols and artifacts that guide

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member’s behavior in the organizations. The culture is reflected by

following characteristics:

The Company will maintain the mutuality of interests

among owners, managers and the employees

The Company will maintain collaboration and team spirit

among employees.

The Company will take risks and is innovative

The Company will avoid conflicts through open

communication

The Company will provide autonomy in work

The Company will be human-focused and have faith in

employees

The Company will provide performance-based reward

system

In nutshell, the Marketing operate within the framework of organizational

culture.

iii. Organizational resources : The resources of LEAF are/ will be:

Physical and Tangible such as equipments, assets and

furniture

Financial resources of monetary and non-monetary values

Human resources such as top level executives, middle level

personnel and lower level staffs

Informational resources regarding information of

governmental and non-governmental bodies, their strength, weakness and

the competitive advantage factors.

In nutshell, the Marketing operate within the constraints of resources.

iv. Organizational structure : Structure is the design of jobs and

relationships. The Company will maintain its structure by formally

dividing the jobs, grouping them and coordinating them. The Company is

concerned with:

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Differentiation: Division of activities to the employees

based on their skills and performance. Job match and Job design issues are

considered.

Integration: It includes coordination of the efforts of the

employees.

The Company maintains its structure through,

o Specialization in jobs

o Decentralization to various departments viz. Finance, Marketing

and Technical departments (i.e. focused on departmentalization).

o Chain of command and Span of control

In nutshell, the marketing activities of LEAF are greatly influenced by

structure. Therefore, it is carried out within the boundary of the

organizational structure.

4.1.2 ANALYSIS OF EXTERNAL ENVIRONMENT:

The External environment needs to be analyzed because it cannot be

controlled by marketing, and it greatly influences the marketing. As such, the

research outlined the opportunities, threats and the environmental forces.

The environmental forces that would affect LEAF are sub-divided into:

i. Task environment : It comprises of forces that are immediately relevant

for achievement of the goals of marketing. The Task environment is made

up of stakeholders, who have stake in the performance of marketing.

The component includes:

Customers: The customers of LEAF will include:

o Individual consumers who wants interior solutions with

accessories decorator. They are individuals and households

users.

o Business consumers, who wants comprehensive solutions for

office environment. They are SME and SOHO.

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o Institutions who wants comprehensive setup of the whole

organization. They are the banks, NGOs and INGO.

Suppliers: The suppliers of LEAF includes:

o Kantipur Homes

o Inland Views and

o BIRA Furniture

Competitors: Competition is everywhere. LEAF suffer from Market

Competition, where many Companies are engaged in providing

interior and exterior services. Such Companies are the major

competitors for the Company :

o Sarosh and Associates

o Interior International

o Sweet Home

o Style Interior

o Mind Spring

Financial Institutions: LEAF depends upon financial institutions for

supply of funds and insurance of risks. Such institutions are:

o Nepal Investment Bank Ltd, and

o Kumari Bank

The policies and actions of these institutions directly influence the

marketing. As such, the Company will maintain cordial working

relationships with them.

Media: The marketing of LEAF will handle different media

organization through a variety of public relations programmes to

protect image and its services. These Medias will be newspapers,

magazines, FM, radios and website marketing such as Quality

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Printing, Digital e-media, Hits F.M., Kantipur F.M., Boss Magazine,

Wave Magazine, and the like

ii. General environment : It is the set of broad forces in marketing’s

surroundings. It is located outside the marketing and cannot be controlled.

It influences the marketing activities by providing opportunities and

threats. It consists of:

Political – legal: The Company is/ will be affected by the political and

legal forces.

i. The political institutions like Legislature (Parliament),

Executive (Govt.) and Judiciary (Courts of law) have the

important role in implementing laws, policies, rules and

regulations.

ii. The Legal force in Nepal consists of an array of laws, rules,

regulations, institutions and processes. what the Company and

marketing can do and cannot do. The legal framework that

influences the Company are:

a. Company Act, 2053 – 5060

b. Industrial Enterprise Act,2049

c. Foreign Investment & Technology Transfer Act,

2049

d. Value Added Tax Act, 2052

e. Export and Import (Control) Act, 2013

f. Contract Act, 2056 and others

Economic: The economic forces consist of all the economic

surroundings that influence the company.

i. The Economic system of the Nepal is mixed: both public and

private sectors. Both play strategic role in the nation. Nepal has

implemented nine long term development plans.

ii. The Economic Policies comprises of Fiscal, Monetary, Trade,

Industrial and Privatization policies. Due to the high inflation

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rate, VAT problem, trade deficit the economic conditions is

getting weaker.

Socio – cultural: Social forces refer to all the social surroundings that

influence Nepalese marketing. The Company operates within the

Nepalese society. They exist to satisfy societal needs. Social forces

influence the policies, practices and activities of the Company.

Important social forces influencing the Company are:

i. Demographics forces like human population and its distribution

affects the company for men and women employment.

ii. Social institutions consisting of family, reference groups and

social class influence the Company.

iii. Social changes in terms of buying behavior of the customer,

their lifestyles influence the Company’s practices.

iv. Cultural forces like knowledge, customs, traditions, attitudes,

values, beliefs, religion, language, symbols, and work of arts

and architecture affects the Company.

Technological: The introduction of the Information Technology had

made revolution and evolution in every discipline. Technological

forces refer to all technological surroundings that influence Nepalese

marketing. They consists of;

i. Labor-based and Capital-intensive technology affects the level

of technology of the Company

ii. The pace of technological change is accelerating. The Company

will be able to adopt the technological change and continuously

upgrade the skills of human resources to handle technology.

iii. The transfer of technology from technologically advanced

foreign countries like Japan, Hong Kong and China are the

major sources for the Company for trading and for its

operations.

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4.2. MARKET SEGMENTATION

The market segment of LEAF is basically focused on the niche segment wherein,

the segment is divided into the sub–segments. The market of the Company is

segmented on following basis:

4.2.1. DEMOGRAPHIC SEGMENTATION

The demographic segment of LEAF is divided into following basis:

Size of the Customers : Every industry contains various sizes of customers

in terms of orders The basis for size of customers are:

o Small size units contains SOHO,

o Medium size units includes Small & Medium Enterprises (SME)

and

o Large size units contains Corporations and Big Business

enterprises

Type of Industry : Industrial markets consist of a range of industries, which

require different market mixes. They will be segmented on the basis of:

o SOHO

o SME, &

o Corporations, NGOs and INGO.

On the basis of Packages : Platinum Package for Corporation, Golden

Package for SME, and Silver Package for SOHO and personal household.

4.2.2. GEOGRAPHIC SEGMENTATION

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The geographic segment of LEAF is concerned with providing services to

area wise geographical units. For a year, the Company is focused on providing

products and services to following district-wise segments viz.,

Kathmandu Valley,

Bhaktapur and

Lalitpur

4.2.3. OPERATING VARIABLES

The Company has focused on segmenting the market on the basis of the

operating variables, which includes:

Technology : The current technology they fall under and the new, they

want to migrate. Such as, manual or automated.

Benefits & Service Needs : The customers seeks for benefits & services

like

o After sales service

o Before sales service

o Warranty and Guarantee

4.3. TARGET MARKET SEGMENT STRATEGY

The company's customer base includes all consumers and all small- to medium-sized

businesses, including start-ups. The company plans to concentrate on SOHO clients,

as these are perfect targets for our new high-speed offerings, and hold the greatest

growth potential for the company. LEAF feels that these market segments have

special pricing and service needs, and make more dedicated, reliable customers. The

company’s major targets are the house wife’s who intended to make there house look

catchier and go with the changes of the 21st century.

The Company will focus on two factors for evaluating the segments:

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The segment’s overall attractiveness including size, growth, profitability and low

risk

The Company’s objectives and resources

The Company will follow the following patterns for selecting target market:

Single segment coverage strategy : The Company will concentrate on single

segment namely, SOHO and personal household groups. The Company will

develop marketing mixes for single segment.

Concentrated Market coverage strategy : In this strategy, the Company will look

for a few submarkets. Related marketing mixes are served.

Market Needs : The Company will look after the market needs and wants. The

customer base is selected based on the needs. Their needs and wants are to have

reliable providers of expertise.

Market Trends: One important trend is to have greater sales in nation wide. But,

it will take a long term time frame and includes extensive marketing research.

Another important trend is the one toward greater use of specialized and focused

consultants, instead of in-house resources. Companies are looking for more out-

sourcing and, in general, a preference for variable costs instead of fixed costs.

Market Growth: The market for interior and exterior decoration has been

growing at approximately 15% – 20 % during the past three years. This level of

growth applies presumably to our related products/ services. In our market

analysis, we suggest growth in the number of potential customers between six

and seven percent per year.

4.4. SERVICE BUSINESS ANALYSIS

The following sub-topics look at the size and concentration of businesses in this

group, the way services are bought and sold, and specific competitors.

4.4.1. BUSINESS PARTICIPANTS

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The company is competing in the low-cost interior and exterior hosting niche

of the industry. The industry is moving in the direction of a fusion of being

more and more customers oriented. The company will come up with several

new plans of there as well in order to help the customers. The alternative is to

be a content service provider. This is a less desirable position as it leaves the

company too much at the whim of the public and forces the company to renew

its efforts continuously to provide usable content.

The business participants of LEAF will be profiled on the basis of their

product/ services and revenue base:

Kantipur Homes : They provide interior services and the annual revenue

comprises of Rs. 85 lakhs with annual turnover of Rs. 5.7 crore.

BIRA Furniture : The Company is market leader in providing office

furniture and parquets solutions. This Company is vertically integrated

with LEAF. Our Company basically obtains and procures office furniture

and parquets from them. The annual turnover of the Company comprises

of approximately Rs. 25 crore.

Inland Views : The Company basically provides interior cum exterior

solutions. They also provide accessories for decorating interior views

which includes designer glasses, paints, aluminum jackets, plasters and the

like. The annual turnover of the Company is more than Rs. 9.5 crore.

4.4.2. COMPETITION AND BUYING PATTERNS

LEAF believes that its customers choose its products and services based on

the following criteria:

Price : The customers prefer for low priced products and services. But,

the price in not only thing that can differentiate the product/ services.

Many organizations provide such products/ services in lower price. Other

factors like quality and response time is most. As such, the customers

should be aware of the price, quality and the response time.

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Experience : The customers should select products/ services based on the

experienced expertise that the Company is providing.

Reputation : The customers should select products/ services from the

reputed organizations. Some organizations are rewarded for their quality

standards they maintain, described by the ISO standard.

Service : The services provided by the existing decorator companies

should be carefully considered. The benefits that the customer sought for

should not be overlooked. They demand for:

o After sales service

o Before sales service

o Warranty and Guarantee

Accessibility : The organization should be accessible for the customers in

terms of transportation, communication and facilities.

4.4.3. MAIN COMPETITORS

Competitive threats come from other interior and exterior organizations. It

includes the following companies:

Sarosh and Associates : This Company is one of the market leader in

South Asia Region for providing interior and exterior solutions. The

Company had provided its solutions to many Nationals and Multi-

Nationals Companies. The Company has largest market share with

optimum resources and capabilities. The Company follows market

leader strategies.

Style Interior : This is one of the emerging interior solutions providers

that focus on providing at cut-throat rate and falls in the category of

the industry competitor. The Company has very low market share. The

Company follows market niche and follower strategies.

Interior International : This is the host organization operating in

Kathmandu valley. The head office is situated at Singapore. This

organization has its operations in large scale. The Company provides

its solutions to abroad countries, therefore, creating competition for

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home organizations. The Company has more than 45% of the market

share. This Company follows market challenger strategies.

Sweet Home : This organization has its branch offices in five major

districts of the Nepal. The Company imports its inputs from our

neighboring country India and China, as such, incurring high costs.

The Company is recognized in providing innovative solutions. The

Company utilizes its optimum resources and covers a substantial

percent of market share. The Company follows market follower and

challenger strategies.

Mind spring : This is one of the newly established interior solutions

provider company. The Company is affected by the threat of intense

segment rivalry. As such, the Company is focused only on niche

segment and is merely a form and stochastic competitor. The

Company has nominal amount of the clients. The Company follows

market niche strategies.

Based on the above analysis (Company’s market share, resources, capabilities,

strengths and weaknesses), these competitors can be categorized on the basis

of:

Category Competitor’s Name

Dominant Sarosh and Associates

Strong Interior International,

Favorable Sweet Home

Tenable Style Interior

Weak Mind Spring

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Non-viable N/A

4.4.4. OVERCOME MEASURES OF RISK

The company recognizes that it is subject to both market and industry risks.

Possible problems caused by a sudden increase in regulation by local, State, or

Federal authorities. One way the company can reduce this risk is to diversify

into several different, but related, business areas. Aggressive or monopolistic

pricing by large or heavily-funded providers will be monitored and respective

strategies will be implemented.

By holding prices down, it becomes difficult for competitors to "low-

ball" the company.

By diversifying, we can protect business in one area by bundling it

with offerings from another area, meeting the needs of the customers

and strengthening their ties to the company.

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5. STRATEGY AND IMPLEMENTATION SUMMARY

Our strategy is based on serving niche and district markets well. The valley is full of

small and medium-sized businesses that can't get good products or services from the

major vendors who focus on high-volume orders only.

Focus:

What begins as a customized version of a standard product, tailored to the needs

of a local business, can eventually become a niche product that will fit the needs

of similar businesses across the country.

We are building our marketing infrastructure so that we can eventually reach

specific kinds of businesses across broad geographic lines.

We focus on satisfying the needs of small and medium business.

We focus on follow-on technology that we can take to the masses, not leading-

edge technology that aims at the experts and volume leaders.

5.1. STRATEGY PYRAMIDS

Our main strategy at sample is to position ourselves at the top of the quality scale,

featuring our combination of superb technology and Leaf innovative way of doing

things, for the customers who wants the best quality regardless of price. Tactics

underneath that strategy include research and development related to new designs

and new technology, and communicating our quality and service position to the

market. The major focuses are mainly those listed in the milestones table, including

research methodology, new design, new equipment to keep up with design, and new

and innovative way of doing things.

5.2. VALUE PROPOSITION

LEAF gives the discriminating customers, who cares about design and quality and

needs perfect quality of work at a fair price.

5.3. COMPETITIVE EDGE

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Our competitive edge is our innovative way of doing things, our knowledge of the

work, and our long-term commitment to customer satisfaction.

5.4. MARKETING AND SALES STRATEGY

LEAF’s strategy is to achieve name recognition and attract customers by

aggressively pricing its services. Once customers have been acquired, the company

will seek to offer them additional services which will increase margins and provide

them with useful solutions they would not otherwise find. The company will also

implement a low-cost strategy. This will be achieved by working to establish and

develop agreements with local media companies to exchange services for discounted

advertising and other exposures.

LEAF market strategy is to build on its core portfolio of products and services

using the company's expertise in the interior and exterior industry. The company will

leverage its discounted services to help provide secondary income streams. For

instance, the company plans to launch free seminar about the importance of the

interior and exterior services, and other similar services which will attract current

and potential customers to our organization. The people coming for the seminar will

be used to generate advertising revenue, as well as increase exposure of our own

products and services. LEAF will be able to excel in the market because the

company is small, highly focused, and motivated. The company can respond quickly

to changing opportunities and take advantage of the latest technologies.

The company plans to expand its marketing efforts, service offerings, and

production. It is anticipated that additional services will be offered and more

personnel will be hired for the perfection in the work.

Following marketing and sales strategies will be followed:

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5.4.1. POSITIONING STRATEGY

Our Company has the Unique Selling Proposition (USP) as “We decorate

your lifestyle”. Our Company will face many differentiation opportunities

with high pay off, i.e., specializing in the industry segment. Our Company can

differentiate its market offering along four dimensions that are product,

services, personnel, and image.

Product differentiation : The Company will differentiate its products from

its competitor in terms of:

Form

Feature

Conformance quality

Performance quality

Durability

Reliability

Style and

Design

Service Differentiation : For differentiating the services, the Company

provides value addition to the services and improving the quality.

Ordering ease

Delivery

Installation

Post/ Pre sales service

Warranty and Guarantee

Personnel Differentiation : The Company aims to gain a strong competitive

advantage through having better-trained people, consisting distinctive

characteristics:

Competence

Courtesy

Credibility

Reliability

Responsiveness and

Communication

Image Differentiation : The Company will establish an effective image

through creating the product’s character and value proposition; and

conveying this character in a distinctive way so as not to confuse it with

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competitors´; and delivers emotional power beyond mental image. The

basis are:

Symbols

Media

Atmosphere and

events

5.4.2. PRICING STRATEGY

Our pricing is determined by our focus on the way customers provide us the

work. We aim at the consumer market with prices intended to generate the

most suitable price for the customer. We provide services and the product on

the most affordable price. This may sound good for the customers, and may be

satisfactory to us and the customers. We do not expect to change prices on any

existing products. Moreover, the pricing strategy is focused on the objective

of increasing the market share and product-quality leadership. The pricing

strategies will be:

Promotional pricing

Price discounts and allowances

Product mix pricing

Optional feature pricing and

Product line pricing

5.4.3. PROMOTION STRATEGY

Promotion in any organization plays a great role. The promotion in context to

LEAF will be conducted through several medium. The organization will use

print and the television media in the promotion of the organization. Moreover,

following strategies will be implemented:

Direct Marketing Strategy

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Online Marketing Strategy

Print and T.V. Advertising Strategy

Sales Promotion Strategy

Public Relations Strategy and

Business and sales force promotion strategy

5.4.4. MARKETING PLAN

The concentrated marketing activities of LEAF focus on the business mission

and are comprehensive in nature. The following activities will be carried out

for building comprehensive marketing plan:

1. Existing situation analysis and environmental scanning

2. Marketing Research (through conducting survey)

3. Competitor Analysis

4. Buyers Analysis

5. Market Segmentation and Profiling

6. Market Targeting and Positioning

7. Marketing Mixes Analysis

8. Developing 4Ps strategies

9. Developing process strategies

10. Updating the Information System

11. Implementing Monitoring and Controlling activities

12. Reviving marketing plan and strategies annually

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5.4.5. SALES STRATEGY

To generate sales, the company uses sales and customer oriented approach.

Direct and online marketing are used. In online marketing, the website is used

for making it prominent. The company focuses on housewife. So the company

can publish its major advertisement in a well known woman’s magazine or

promote it through several soap operas.

The sales activities will be concentrated in the following categories:

Contact Campaigns. This initiative will encompass various methods of

reaching potential customers to generate interest, followed by direct

contact to potential customers.

Print Advertising. Ads will be developed and placed in several industry

publications. Magazine and brochures will be provided.

Trade Shows. The company will participate in selected local and

national shows that will provide an opportunity to develop exposure.

This is a very effective tool in creating awareness and stimulating lead

activity.

Industry Organizations and Associates. The recommendation is to join

a number of organizations that are relevant to the company as a whole.

This initiative will create awareness of the company within the industry,

and provide networking with the customers.

Telemarketing Campaign. Telemarketing activities geared to identify

qualified leads, follow-up on sales progress to the qualified leads, and

assurance that new potential contact lists of the new customers.

Promotional Giveaways. This is a traditional way of advertising a

company's name by giving something away. This will be used in

conjunction with community service organization fund-raising efforts

and traditional advertising.

5.5. STRATEGIC RELATIONSHIPS

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LEAF will have benefits from several relationships by receiving very competitive

pricing on most of the services, allowing the company to offer competitive pricing on

its services to customers. The company will be pursuing an agreement with a local

organization to provide services which will eventually include extended medium to

attract the customers and get an easy access to the several customers coming to the

organization. LEAF will also make several agreements with several potential

customers about there services by giving them several discounts in the first round.

This will provide a simple, useful tool for organizations, businesses, and individuals

to organize, plan, announce, and track projects and events

6. MANAGEMENT SUMMARY

The Company comprises of more six personnel. The Company consists of two Leafst

interior designers and one exterior designer. Moreover, the Company recruits temporary

workers on project basis.

Management style reflects the participation of the owners. The company respects its

community of co-workers and treats all workers well. We attempt to develop and nurture

the company as community. We are not very hierarchical.

6.1. ORGANIZATIONAL STRUCTURE

The Organizational Structure consists of the mainly six directors. The following

graph shows the hierarchical relationships:

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Chief Executive OfficerChief Executive Officer

FinanceFinance

MarketingMarketing

InteriorInterior

Assistant DirectorAssistant Director

ExteriorExterior

Fig. Organizational Structure


6.2. MANAGEMENT TEAM

The Management team comprises of all together seven personnel. They are:

Mr. Rajesh Shrestha : Founder and C.E.O. of LEAF. Mr. Rajesh Shrestha is

currently studying his BBIS, final year in Little Angels’ College of Management.

Miss. Aarati Shrestha : Director of Finance. She is a Chartered Accountant, under

ACCA. She had a two years work experience in handling financial activities. She

looks after all the financial activities in the Company. She has completed MBA

in Finance major with Summa de Lunde.

Miss. Unnati Shrestha : Director of Marketing. She is an MBA with Marketing

major from APEX College affiliated to Pokhara University. She had a two years

experience in Promotion and advertising interior design. She looks after all the

marketing activities in the Company.

Miss. Ashma Katwal : Director in Interior Designing. She had completed her

Master degree in Interior designing from Delhi University. She had an

experience for 3 years.

Miss. Surakshya K.C. : Assistant Director in Interior Designing. She had

completed her Bachelor degree in Interior designing course from Namuna

College of interior design affiliated to Purbanchal University. She had sound

knowledge regarding the subject matter with 1 year working experience. She had

worked as an Intern student in Sarosh and Associates for two months.

Mr. Pratik Manandhar : Director in Exterior Designing. He is currently studying

his BBA degree, final year Lalitpur College. He had a good contacts and public

relationship with many people and companies. He had undertaken many exterior

based projects.

Miss Monika Shrestha : Receptionist. She is currently studying +2 level

(management) from Don Bosco College. She has sound English and handles the

office documents.

6.3. MANAGEMENT TEAM GAPS

The present team is on the learning curve and is weak on professional sales.

The present team, though strong on how to market at a high level, is short on

practical front-line marketing experience.

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Product development requires a stable of entrepreneurial inventors willing to

work for royalties.

6.4. PERSONAL PLAN

The Company will provide a very conducive and sound environment for the

personnel. The Company plans to provide compensation, incentives, amenities and

bonus for its personnel. The atmosphere at work is enhanced by teambuilding

activities like parties, vacations, picnics, and the like. Moreover, the Company plans

to provide care on occupation, health and safety measures.

The Company expects to increase personnel significantly as sales increase.

7.FINANCIAL PLAN

Ideally, we would want to bring approximately Rs. 1 Crore, of equity investment from

investors compatible with our growth plan, management style, and vision, in return for

some equity ownership. But, the current investment is only of Rs. 40 Lakhs including

nominal investment from directors. We are not going to talk about specifics of a deal

until we have met the right partners. This plan does not call for equity from outside

investors.

If and when the time for outside investors comes, we want compatible investors or no

investors at all. Compatibility means:

A fundamental respect for giving our customers value, and for maintaining a healthy

and happy workplace.

Respect for realistic forecasts, and conservative cash flow and financial management.

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Cash flow as first priority, growth second, profits third.

Located in New Baneshwor, Araniko Highway.

Willingness to follow the company carefully and contribute valuable input to strategy

and implementation decisions.

Of these, only the last two are flexible.

We want to establish a mechanism for employees to acquire fair stock options that can

become valuable as the company grows.

7.1PROJECTED PROFIT AND LOSS

The following table shows that we expect to maintain gross margin but increase net profit

margin during the next five years. The single most important factor in the improving profit

margin is the economies of scale in our general and administrative expenses.

We don't expect to decrease sales and marketing expenses as a percent of sales. The interior

packages require heavy marketing expenses.

We also intend to maintain and increase the percent of revenue spent on development. By

mid 2012 we'll be spending almost 7% of sales on product development. This is the key to

our future.

The following table shows just the annual numbers. The detailed projections for mid 2012

and 2013 are provided below:

Pro Forma Profit and Loss

mid 2012 2013

Sales 535000.00 795000.00

Direct Costs of Goods 25000.00 21000.00

Cost of Goods Sold 25000.00 21000.00

Gross Margin 75000.00 125000.00

Operating Expenses:

Sales and Marketing Expenses:

Sales and Marketing Payroll 37000.00 48000.00

Advertising 45000.00 95000.00

Graphics 35000.00 28000.00

Printing 18000.00 12000.00

Public relations 2500.00 4500.00

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Research 33000.00 2000.00

Telephone and Facsimile 15000.00 18000.00

Trade Shows and Events 0.00 10000.00

Meals 4500.00 8500.00

Travel 12000.00 25000.00

Miscellaneous 5000.00 21000.00

Total Sales and Marketing Expenses 207000.00 272000.00

General and Administrative Expenses:

General and Administrative Payroll 40000.00 75000.00

Online services 5000.00 1500.00

Insurance 15000.00 9500.00

Office supplies 1200.00 1500.00

Professional fees 12000.00 15000.00

Rent 25000.00 25000.00

Other 3500.00 4000.00

Other General and Administrative Expenses 0.00 0.00

Total General and Administrative Expenses 101700.00 131500.00

Other Expenses:

Product Development 45000.00 25000.00

Total Other Expenses 45000.00 25000.00

Total Operating Expenses 353700.00 428500.00

Profit Before Interest and Taxes 81550.00 105000.00

Interest Expense 1875.00 1500.00

Taxes Incurred 35490.00 29780.00

Net Profit 44185.00 73720.00

Net Profit/Sales 8.25% 9.25%

7.2PROJECTED CASH FLOW

The following chart is most important for illustrating our cash projections for the next 6

months. Because of our dependence on sales through direct sales, and its tendency to pay

slowly, there are wide variations that must be supported with working capital acquired

through short-term credit on receivables and inventory.

The table shows just the annual results, which are less significant. The key to our

business plan is the cash flow table, which also shows up as the key numbers

of the following chart.

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Pro Forma Cash Flow Mid 2012

Cash Received

Cash from Operations:

Cash Sales 275000.00

Sales Tax, VAT, Received 0.00

New Current Borrowing 20000.00

New Other Liabilities (interest-free) 35000.00

New Long-term Liabilities 0.00

Sales of Other Current Assets 0.00

Sales of Long-term Assets 215000.00

New Investment Received 0.00

Total Cash Received 545000.00

Expenditures

Expenditures from Operations:

Cash Spending 75500.00

Payment of Accounts Payable 41500.00

Sales Tax, VAT Paid Out 18000.00

Principal Repayment of Current Borrowing 45000.00

Other Liabilities Principal Repayment 2500.00

Long-term Liabilities Principal Repayment 105000.00

Purchase Other Current Assets 95000.00

Purchase Long-term Assets 275000.00

Dividends 0.00

Total Cash Spent 657500.00

Net Cash Flow (112500.00)

Cash Balance (110000.00)

7.3.PROJECTED BALANCE SHEET

The table below shows the annual balance sheet results:

Pro Forma Balance Sheet Mid 2012

Assets

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Current Assets

Cash (110000.00)

Accounts Receivable 0.00

Inventory 232000.00

Other Current Assets 15000.00

Total Current Assets 137000

Long-term Assets

Long-term Assets 675000.00

Accumulated Depreciation 0.00

Total Long-term Assets 675000.00

Total Assets 812000.00

Liabilities and Capital

Current Liabilities

Accounts Payable 41500.00

Current Borrowing 45000.00

Total Current Liabilities 86500.00

Long-term Liabilities

Long term Bank Loan Payment 598000.00

Total Liabilities 684500.00

Paid-in Capital 75000.00

Retained Earnings 2800.00

Earnings 49700.00

Total Capital 812000.00

7.4.LOGISTICS AND OFFICE ACCESSORIES

The Company has the following logistics and office accessories:

Particulars Quantity Rate PriceTelephone set 7 500 3500.00Tel. Line 2 10000 20000.00Computers 4 32800 131200.00Samsung Laser Printer (4 in 1) 1 35000 35000.00Air Conditioner 1 90000 90000.00Network Switch 1 1800 1800Network Cable 50 m 18 900.00Network Accessories 15 3 45.00Carpet (sq. mt.) 580 450 261000.00Decorating Items 350000.00

Total Cost: 893445.00

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8.FINDING AND CONCLUSION

Formulating business plan is very time consuming and logical process. It includes various

phases that should be followed within the time frame and within the boundary of the

organizational operations. This business plan helps me to know how marketing research

are conducted and its pros and cons. Moreover, it helps me to know the types of industry,

their objectives and strategies for achieving the marketing goals. Benchmarking the

procedures and methodology of the organization is crucial. Their competitive strength

determines the market success, characterized by the demand and supply. The market

entry strategies, mobility strategies, the process of segmentation, targeting and

positioning were understood. Finally, the research helps me to understand the market

place and identify strengths, weakness, opportunities and threats; and builds my decision

making skills.

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