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THE TRANFORMATION OF SPACE - Newspace -
CONTENTS 1 Executive Summary
1
2 Organization Background
6 Market Strategy Demographics / Psychographics
26
Vision Statement
4
Target Audience Personality Profile
Mission Statement
4
(TAPP)
Values Statement
4
Marketing Strategy
Working Culture
5
Product Strategy (Differentiation)
28
Management Team
5
Place Strategy
28
3 Business Model
7
Price Strategy
28
Promotion Strategy
28
7. Consumer Management Strategy
30
4 Products and Services
27 28
Business Concept
9
Products and Services
10
8. Brand Strategy
Unique Value Proposition
10
Company Logo
34
5 Market Research and Analysis Market Research
Slogan
34
12
Brand Vision
34
Primary Research
12
Brand Mission
34
Secondary Research
12
Brand DNA
34
Market Analysis
13
Survey Results
13
Marketing Positioning Statement
36
9. Marketing Positioning
P.E.S.T. Analysis
17
Products Profiling
37
Competitors Analysis
19
Product Price - Quality Profiling
38
S.W.O.T. Analysis
21
10. Marketing Communications Plan Print Media
40
Social Media
41
Publicity Events
42
IMC Timeline
43
IMC Budget
45
11. Operations Plan Organization Structure
48
Operation Role
49
Operating Hours
51
Location
51
Floor Plan
52
Human Resource Policies
53
12. Finance Plan Capital Investment
56
Profit and Loss Statement
57
Return on Investment
58
13. Business Roadmap
60
1.
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
NewSpace Furniture Pte Ltd is a furniture wholesaler that provides innovative furniture design solutions to the Singapore market. Our business concept is to infuse the elements of space-conservation and the flexibility of customizable furniture functionality. We specialize in providing Living room and Bedroom furniture products, combining various functionalities that help transform personal space. With the company slogan “Transform your place”, NewSpace aims to initiate change in the nature of Singapore’s furniture design industry, where in the Singapore context the issue of space conservation is given priority. In its first year of operation, NewSpace will incur a net loss of S$178,068.20. We plan on achieving an ROI of 14.6% by the end of our third year of operation. Initial start up expenses for NewSpace is estimated to be S$51,850.00, with a capital expenditure of S$704,058.20 and Operating Costs of S$652,208.20. NewSpace applies a range of conventional marketing techniques for furniture companies, mainly print media which constitutes of 92% of the estimated Integrated Marketing Media Budget. Other media applied in our marketing strategy is internet media, an annual exhibitions and seminars.
Newspace Furniture. Pte Ltd l 02
2.
ORGANIZATION BACKGROUND
VISION To be the leading designers of innovative space-saving furniture products in Singapore.
MISSION Our mission is to provide innovative solutions to ensure quality customer experience in their homes whilst working with our friendly and dedicated staff, meeting unique needs with unique demands.
VALUES
Creativity and Innovation We believe that every customer is unique, so we always keep an open mind on the lookout for new ideas and latest trends to satisfy our customers’ needs. We also believe that there is always room for improvement, that we can strive to produce better products and services as our company matures.
Teamwork As a company, it’s essential that we work as a dedicated team reaching towards a common goal, and establish good relationships with our clients by giving the best of our efforts.
Professionalism We assure our clients quality experience with our qualified trained staff and well-coordinated work process.
Accountability and Responsiveness To establish a good reputation with our clients, it’s crucial that we uphold responsibility and safety of our clients with the products and services we provide, and that we are prepared to deal with the problems our clients face. Newspace Furniture. Pte Ltd l 04
WORKING CULTURE We practice open-mindedness in our working environment to keep our team creative, inspired and motivated in their work, where we can keep fresh ideas flowing in. In our company, we encourage our staff to learn from others, their peers and clients, so they can mature in their work production, and build a strong bond of trust and respect between coworkers to work towards our goals. To keep to our values, it’s crucial that everyone is treated equally fair according to their contributions, and to minimize conflicts happening within our company.
MANAGEMENT TEAM NewSpace is founded by a team of dedicated individuals of distinct personalities and backgrounds, passionate about doing things and knowledgeable in their field, and committed to bring a whole new perspective of an innovative lifestyle into homes.
Managing Director & Finance Manager Jonathan Law
Sales & Managing Director Marketing Manager Lisa Teoh
Operation Manager Candice Wong
Human Resource Manager Dimitrije Curcic
Newspace Furniture. Pte Ltd l 06
3.
BUSINESS MODEL
Key Resources
Key Operation
Partnership
$ Cost
Customer Relationship
Distribution Channel
Target Audience
Revenue Newspace Furniture. Pte Ltd l 08
4.
PRODUCTS & SERVICES BUSINESS CONCEPT NewSpace differs from our competitors such as IKEA and Courts, where we focus mainly on functional quality of furniture products. Our business concept is to infuse the elements of space-conservation and the flexibility of customizable furniture functionality. We specialize in providing Living room and Bedroom furniture products, combining various functionalities that help transform personal space.
PRODUCTS & SERVICES Our company focuses on the importance of maximizing space usage, we mainly follow a “form follows function” direction, where our products come available with various customizable functions.
Green Furniture
Customization and Consultation
Our products are made from environmentally friendly materials, mainly reclaimed lumber, as a part to create greenawareness among our customers.
We believe that every customer has their own unique needs, thus we provide customization service of a wide range of furniture functions to cater to our customers. Customers can also consult with our staff about the product’s features and final outlook in their house before proceeding with their purchase.
Membership
We provide membership to our customers so they can enjoy benefits such as membership discounts, updates on new additions and other services.
UNIQUE VALUE POSITIONING NewSpace is a quality furniture design company that offers up creative space-saving solutions that frees up previously unnecessary occupied space in the house. Other than that, we give our customers the option to customize the functions of their furniture to their desired preferences. We employ staff with design background and/or experienced in furniture/interior design to give our customers the assurance that our employees are trained in their field of work before providing services.
Newspace Furniture. Pte Ltd l 10
5.
MARKET RESEARCH & ANALYSIS
MARKET RESEARCH l PRIMARY & SECONDARY
Primary Research We have conducted a quantitative research method through public polls and questionnaires to tabulate market data and plan our marketing strategy. This survey also serves the purpose to help us understand our target market’s behaviours. Our survey was conducted through the use of social networking media, as well as hard copy questionnaires related to our business to help gather more information on our target market.
Secondary Research During our course of research, we’ve obtained data from our competitor’s websites on information about the products and services they provide. This phase of research is also essential for us to source out our potential partners and investors. Government statistics form a significant part of our research, as the demographics of Singapore and business related information is key data needed to start our business analysis.
Newspace Furniture. Pte Ltd l 12
MARKET ANALYSIS l SURVEY RESULTS Our main primary research comes from our survey, which had a total of 96 responses consisting of individuals from different age and income groups, along with their perspective on the furniture market.
AGE GROUP
10.4% 50 & above 2.1%
41 - 50 21 - 30
32.3%
55.2%
31 - 40
A large portion of our survey results indicate that the respondents compromises of people aged between 21 to 30 years of age, followed by people aged 31 to 40 years of age. The purpose of this question is so that we can tabulate our data from pre-defining our target audience, and meeting our expectations.
INCOME GROUP
Less than $1500 $3000 & above
27.1%
$2000 - $3000
17.7%
44.8% The largest portion of our questionnaire response on income levels comprises of those earning less than S$1,500 a month, followed by the group earning between S$1,500 to S$2,000 per month.
$1500 - $2000
10.4%
This correlates with the mass of our respondents whose age falls between 21 to 30 years of age, and the expected monthly wage of S$2000 and below.
HOUSING CATERGORIES
Bungalow
This question was asked in direct relation with the congregated existing problem statement to our offered products and services. Evidently, 78% of our respondents currently live in HDB flats, which correlates to the following question:
2.1%
Condominium 12.5%
78.1% HDB Private Apartment 7.3%
SPACE ISSUES
We pointed out the question: whether the respondents face space issues in their household. This relates with the main objective of our offered products and services. Apparently, majority stated that they have “just enough� space to live by, but expressed hesitation and doubt before answering the question, though a portion mentioned that they face issues creating extra space when their furniture are inflexible in terms of functionality and size.
No
32.3% 40.6%
Yes
Just Enough
30.2%
Newspace Furniture. Pte Ltd l 14
FURNITURE CHANGE FREQUENCY
Once every 5 years 15.6%
Once a year
This question was asked to interpret whether our respondents are subjected to change due to market trends or practicality.
5.2%
Once every 6 months
77.1%
2.1%
Once it break
The results compiled shows that our respondents are practical, where they buy products just to replace a certain functionality when the previous one is spoilt or broken.
EXPECTED FURNITURE PRICE
$5000 & above
Less than $3000
5.2%
33.3% Less than $1000
Less than $150
54.2%
Our respondents were asked roughly how much they expect their desired furniture to be priced at. According to their response, they expect that it does not exceed S$1000 a piece of furniture.
7.3%
PRICE-QUALITY CONSIDERATION
Quality
54.2%
45.8%
Price
Since Singapore is known for its price-sensitive market, we decided to tabulate data on whether or not our respondents prioritize a product or service’s price over its quality. Results show that our respondents seek value-for-money deals, as long as the product’s quality is of certain standard, they are willing to spend on it.
TYPES OF FURNITURE
We gave our audience a range of aspects that they desire in their furniture, from just simplistic and cheap, made from environmentally friendly materials, multiple functionalities or luxurious aesthetic appearance. Based on analysis, majority of our respondents chose furniture with multiple functions, along with the note that its functions are customizable.
25.0%
Multi-functional
6.3%
Cheap
58.3%
Environmental Friendly
10.4%
Luxurious
RECOGNIZED FURNITURE COMPANY
Others
Lastly we asked them from which local furniture distributor do they normally seek to purchase furniture products. IKEA is known among the majority due to IKEA’s product prices, where although they do not get their desired aspects, the products are able to serve as a temporary stand in.
V.hive
11.5%
14.6%
Courts
54.1%
IKEA
19.8%
Newspace Furniture. Pte Ltd l 16
MARKET ANALYSIS l P.E.S.T ANALYSIS
P
OLITICAL
> Stable politics > Pro-business environment > Green awareness
As NewSpace focuses on entering the Singapore market, political analysis will be based on Singapore context. Singapore is known for its stable political climate. Despite having a socialist-democratic system, the political culture is pragmatic, rational and based on the rule of law. The government believes in being pro-active and thinking for the future, thus practice having a pro-business environment, whereby a business-friendly structure that encompasses both large multinational corporations and small start-up firms is created by the Maritime and Port Authority of Singapore (MPA) and serves as a firm foundation. Although many Singaporeans refer to the current ruling party PAP (People’s Action Party) as ‘Pay and Pay’, it is the PAP’s governance and intellectual policy decisions that has contributed to Singapore’s political stability, social harmony and economic prosperity.
E
CONOMICAL
> Stable economy > Increased corporate cost
Singapore boasts of a competitive, corruption-free, open business environment. However, over the years, Singapore has diversified its economy and today it has become a research & development hub, bio-medical hub, banking and finance center and in recent times the health-care destination of Asia. Despite that, land and labour costs in Singapore have risen sharply and employers have to pay a sizable portion of their employees’ salary to their Central Provident Fund. Singapore is ranked second most competitive economy in the world, and is also known for its low tax regime. Corporate tax rate stands at 18% and will be further reduced to 17% effective YA 2010, while Personal tax at 20% and Goods and Services Tax is 7%.
MARKET ANALYSIS l P.E.S.T ANALYSIS
S
OCIAL
> Locals-Expats ratio > Housing cost
Singapore’s social and ethnic fabric is a unique blend of cultures and people – Malays, Chinese, Indians and now the expats. Singapore’s lifestyle is multi-cultural with each of these ethnic communities maintaining their unique way of life and at the same time living harmoniously. Singapore’s society is cosmopolitan due to the influx of foreigners in recent times. Along with it comes an openness towards people and respect for all. People are amiable and courteous to each other. High emphasis is placed on communal and racial harmony. Due to the recent influx of foreign talent in Singapore, housing is no longer as cheap as it used to be. The year 2007 saw unprecedented growth in the property market and expats felt the pinch as well. Housing falls under two main categories – public HDB flats (built by the Housing Development Board) and private condos/bungalows. The choice of housing purely depends on budget, location, facilities/amenities, transportation and personal preferences.
T
ECHOLOGICAL
> Internet usage > Consumer accessibility
Singapore is a country blessed with extremely high internet saturation rates. In 2006, the government started the National Broadband Network as part of the iN2015 (Intelligent Nation 2015 Master plan) , with the aim of linking up businesses, schools, hospitals and homes and to provide competitive prices for faster internet services. By the end of 2012, a projected 68% of Singapore would be linked in this network. Singapore is also a hi-tech society and most people are gadget savvy. For example, 8 in 10 people in Singapore own cell phones.
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MARKET ANALYSIS l COMPETITORS ANALYSIS LOW END Location : Alexandra Road in Queentown and Tampines Year of Business : 1948 Promotional Tools : Catalogue, Website, Phone Media, Publicity Advertising and Facebook Price Range Value : 0.5k - 2k Delivery Service : No, free delivery services Membership : Yes Target Audiences : Any Unique Value Proposition : Wide Variety of style, Comfortable, Low price, Easy to build, Self-service delivery and provide a 2-in-1 function for furniture.
Location : Central, North, NorthEast, East and West Year of Business : 1990 Promotional Tools : Website, Facebook, Television and Newspaper. Price Range Value : 0.7k - 3k Delivery Service : Yes Membership : Yes Target Audiences : Any Unique Value Proposition : Stylish, comfortable and quality
MARKET ANALYSIS l COMPETITORS ANALYSIS
Location : Paragon and Katong Year of Business : 1993 Promotional Tools : Website, Facebook, Catalogue Price Range Value : 2 - 6k Delivery Service : Yes Membership : No Target Audiences : High-End Unique Value Proposition : Customizable, provide an interior consultant and slight percentage of multi-functional facilities involve.
Location : 2 Boon Leat Terrace #01-03 Harbourside Building 2 Singapore 119844 Year of Business : 2010 Promotional Tools : Website, Facebook and Magazine Price Range Value : 3k - 8k Delivery Service : Yes Membership : No
High End
Target Audiences : High-end Unique Value Proposition : Space-saving furniture, innovative and stylish, with high quality and most of their products are manufactured by 4 well-known company such as CLEI, Hermida, Sellex and SICEA. Newspace Furniture. Pte Ltd l 20
MARKET ANALYSIS l SWOT ANALYSIS
S
W
O
T
MARKET ANALYSIS l SWOT ANALYSIS
S
> Space-conserving, multi-functional & eco-friendly > Flexible products customization > Committed management team > Staff with design background
Many existing furniture retailers and distributors in Singapore (i.e. IKEA, Courts, V.Hive) do not focus on the importance of conserving space, especially in Singapore where most of the population live in HDB flats, space is an important factor. There aren’t many companies that offer customization services in Singapore. Our team is fully committed to assure our customers everything is handled with precision to ensure a pleasant experience with us. Our team will understand the client’s needs and wants, then provide a creative solution to meet the client’s expectations, in terms of physical appearance of our products and it’s functionality.
> New entrant to furniture market > Small Business scale, small capital investment > Expensive price compared to competitors
W
As a new entrant to the furniture market, we have yet to establish recognition and reputation in the local market, while being compared to other well-known brands like IKEA and Courts. Our company won’t be able to participate in large-scaled projects and/or comprehend NewSpace products are relatively expensive in terms of price when compared to our competitors that are able to mass-produce
Newspace Furniture. Pte Ltd l 22
MARKET ANALYSIS l SWOT ANALYSIS
O
> Collaborate with designers and Co-Branding > Singapore’s diverse culture >Business expansion plan
As our business revolves around customization and innovative design, we are able to collaborate with design institutes majoring in interior and furniture design, providing internships and job opportunities to potential designers and allow new design ideas and trends to be implemented into our products. Singapore has a diversity of culture and race, thus we are given the advantage to expand our reach from locals to expatriates residing in Singapore. As our business grows and stabilizes, we intend to expand our business scale, from offering a wide range of innovative space-saving furniture products of all kinds to interior design services. We plan to expand our holdings to include a factory the produce our products locally, and accept orders from overseas clients.
> New entrant to furniture market > Small Business scale, small capital investment > Expensive price compared to competitors
T
The Singapore market is very sensitive to price factors of products and services by both competitors and consumers. As a new entrant to the market, we are unable to price our products and services competitively to our main competitors that mass-produce. NewSpace faces the threat of competing with existing companies (IKEA) in terms of range of products and price competency. IKEA, although an indirect competitor, has a reputation in the market as a major furniture retailer. Currently, through our market survey, we’ve analyzed that our target market turns to either IKEA or Courts as their main source of household products. As a new entrant to the market, we face the difficulty of having our target market to adapt to our products and services.
Newspace Furniture. Pte Ltd l 24
6.
MARKET STRATEGY
MARKET STRATEGY l TARGET CONSUMERS
Gender: Male & Female Age: 25 – 36 years (Primary) Occupation: Working class Income: S$1,200/month and above
PRIMARY
QUALITY Personal Touch
Practical
PRICE Internet Accessibility
Gender: Male & Female Age: 37 - 45 years (Secondary) Occupation: Working class Income: S$1,500/month and above Foreign residents in Singapore who stay in smaller apartments.
SECONDARY
Newspace Furniture. Pte Ltd l 26
MARKET STRATEGY l TARGET AUDIENCE PERSONALITY PROFILE (TAPP)
Name: Shirley Tang Age: 25 Income: S$3,000/month Occupation: Teacher Shirley works as a teacher in a secondary school in Singapore. She has to bring home students’ work back to mark and soon her house is full of them. Having insufficient space to even sleep on a clean bed. She said “multi-functional furniture in Singapore are too expensive and size and color are does not match my house’s wall or the surrounding.”
Name: Mike Leo Age: 23 Income: S$2,000++/month Occupation: Photographer/Designer Mike Leo a graphic designer/Photographer and he uses his house as a studio. He mentioned: “ Photography studio takes up one part, Graphic design work place takes up another and now there’s barely enough space in my house to add even a bookshelf. Best designer Multifunctional furniture are just way out of my budget.”
MARKET STRATEGY l MARKETING MIX (4Ps STRATEGY)
Products Strategy (Differentiation) > Space-saving
Price > Mid - price range
> Flexiblity of customization
> Packages range from 1.7k - 4k
> Stylish & innovative design > Transform personal space
Promotion
Place
> Print Media
> IMM Mall
> Internet Media
> TheFurnitureMall
> Publicity Events
Living Room Package
Single Bedroom Package
Double Bedroom Package
> Sofa ( 3 seater ) x1
> Dressing Table
> Dressing Table
> Bookshelf x1
> Single Bed
> Queen Bed
> TV stand x1
> Wardrobe
> Wardrobe
SGD 1, 700 +
SGD 2, 500 +
> Coffee Table x1
SGD 2,500 + Newspace Furniture. Pte Ltd l 28
7.
CONSUMER MANAGEMENT STRATEGY
CONSUMER MANAGEMENT STRATEGYl SERVICE STRATEGY
Instore Service Our staff are obligated to provide our customers quality service from engaging with the customers, describing our product features, fulfilling their requests to ensure guaranteed satisfaction before the customer makes a purchase on our products.
Recycling Service The store will provide a recycling service only to our brand furniture purchased by our consumers. Each product recycled will either provide discount for another purchase of our products or paid a certain amount back to our consumer.
Newspace Furniture. Pte Ltd l 30
CONSUMER MANAGEMENT STRATEGY l LOYALTY PROGRAM
Membership card We will provide a membership card to our customers with a minimum purchase of S$2,000 of our products. The membership card grants the respective customer a 10% discount upon the next purchase.
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Voucher
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IF TV G IO FT VOU CHER UC HE R
20%
Redeemable vouchers worth S$50 or S$100 will be given to our customers in exchange that we dispose of their spoilt or broken furniture for them to encourage our customers to practice “going green”.
CONSUMER MANAGEMENT STRATEGY l CUSTOMER EXPERIENCE
Stages of how our customer would want to experience in a home furniture store from “Expected”, “Unexpected” and “WOW” experience towards Newspace Furniture Store.
WOW
> Customizable of colors and size of the furniture
Unexpected
> Friendly & professional Service
Expected
> Functionality of the furniture > Innovative designs
> Variety design of home furniture
>Different usage of functionality to implant into the furniture under a request > All materials are used under eco-friendly > Providing a recycling service only for Newspace furniture
> Service > Comfortable Environment
Newspace Furniture. Pte Ltd l 32
8.
BRAND STRATEGY
Brand Value Integrity & Quality
Brand Essence
Innovative Lifestyle at home
Brand Promise
BRAND DNA
Brand Attribute Provide with promise
Unique Innovative Space
Brand Experience Comfort & Satisfaction
Brand Personality Creative & Reliable
BRAND LOGO & SLOGAN
San Serif
Criticized
NewSpace is a furniture design company targeted towards the young working class adults in Singapore. New represents something that's distince, fresh and innovative. So our aim is also "to create new space, in your place." thus tranforming our customers' homes. NewSpace's Logo design takes on a timeless design approach by using a sans serif typeface while utilizing the use of white space. The company slogan "transform your place" sums up our company business in a nutshell. Where NewSpace provides our customers space-conserving solutions and introduce an innovative lifestyle that ultimately transforms their place, their homes. Newspace Furniture. Pte Ltd l 34
9.
MARKETING POSITIONING
MARKETING POSITIONING l POSITIONING STATEMENT
For young adults who want to have customizable multifunctional furniture within their homes, NewSpace is the leading company to provide furniture customization service, with a one stop space saving solution for every distinct household. NewSpace is positioned to aim towards a targeted group in the market who seek quality furniture products, along with a dash of personalization and customizationof their desired furniture. The following positioning charts will show where NewSpace positions itself in the market, while compared to 6 other potential competitors already established in Singapore, in terms of products profiling, and price-quality profile.
Newspace Furniture. Pte Ltd l 36
MARKETING POSITIONING l PRODUCTS PROFILING
DESIGNED t r a n s f o r m � y o u r � p l a c e
NON-CUSTOMIZABLE CUSTOMIZABLE
NOT DESIGNED
MARKETING POSITIONING l PRODUCT PRICE - QUALITY PROFILING
PRICE
QUALITY
Newspace Furniture. Pte Ltd l 38
10.
MARKETING COMMUNICATION PLAN
E IN M
AG AZ
CA TA LO
N PA EW PE SR
G U
E
MARKETING COMMUNICATION PLAN l ADVERTISING
M ail e ct ire D
Fl ye rs
r
PRINT MEDIA
Print Media is known as one of the oldest and basic forms of mass communication to advertise to the public. It mostly includes newspaper, weeklies, magazines, monthlies, catalogue and other forms of printed journals. Print Media contribute in providing information and transfer of knowledge to the readers and advantage of making a longer impact on the reader minds, with more in-depth reporting and analysis. Our selected printed media will includes posters, direct mailer and catalogues to share information of our company’s purposes and services with images of our products we are producing to the market. Advertorials and advertisement will be printed in home magazine to promote our brand to the higher level.
Newspace Furniture. Pte Ltd l 40
MARKETING COMMUNICATION PLAN l ADVERTISING
INTERNET MEDIA
f
You Tube
t B
Internet media nowadays had increased the popularity of advertising to the social markets as it’s a cheapest and easier way of promoting brand to gain attention and encourages readers to share it with their social networks. Spreading of message from user to user and presumably resonates because it appears to come from trusted, third-party source to opposed to the brand or company itself and it’s driven by work-of mouth by providing results which earned media rather than paid media. Multiple-forms of internet media we had consider to advertise in Facebook, Internet Blogs or websites, electronic mail and Youtube to showcase our overall function of our company products usage , informations and updates. Social media will helped to increased communication for organizations fosters brand awareness and often, improved on the customer service and serves as a inexpensive platform for organizations to implement marketing campaigns. Creating Facebook page, newsletter for electronic mail, Youtube page and Websites will be planned well and organize to archive the overall results by consistent checking the returning response from the viewer.
MARKETING COMMUNICATION PLAN l ADVERTISING
PUBLICITY EVENTS
Publicity events will be one of our integrated marketing communication as it’s a face to face way to raise awareness to the public. Managing a public events we had to be well-planned, well-managed publicity campaign will be enormous benefit to the company as it’s a form of an overall event strategy. Our company will be publishing events on industry-professional conducted seminars, and home furniture exhibition such as “EXPO” or “Suntec City” to gain more attention, experience, and increased the publicity awareness of our company’s product function.
Newspace Furniture. Pte Ltd l 42
MARKETING COMMUNICATION PLAN l TIMELINE
Through the years of operation, we will fully utilize internet media due to its wider coverage of consumers and efficiency. Of the proposed internet media, we will focus on maintaining our official website since our target market has the ease of access to the internet and are now vastly interconnected. Social media networks allow us to engage a wider span of audience. We will be using such platforms to share and update about our latest products and offers, as well as customer testimonies and furniture-related articles. The ultimate aim of this is to reach out to a bigger pool of young adults.
Year 1
Internet Media
Jan - Dec
Magazine Ads
Jan - Dec
Flyer Distribution
Feb & Oct
Newspaper
Events
Dec
Mar & Nov
MARKETING COMMUNICATION PLAN l TIMELINE
Year 2 - 3
Internet Media
Jan - Dec
Magazine Ads
Jan - Dec
Flyer Distribution
Feb, Jun & Nov
e-newsletters
Jan
Events
Mar & Nov
Seminar/ Workshop
Jul
Advertising Campaign
Jul
Newspaper Ads
Jun & Nov
Newspace Furniture. Pte Ltd l 44
MARKETING COMMUNICATION PLAN l BUDGETING
Unit Price Social Networks
-
-
Offcial Website
$11.97/ month + $ 16.50/year domain registration fee
$165.00
E-newsletter
-
-
INTERNET MEDIA
Style: Living MAGAZINE ADVERTISING SPH Home and Decor
NEWSPAPER ADVERTISING
FLYER DISTRIBUTION
Total Cost
TODAY NEWS
Full page color advertisment @ $3800 per insertion INTERNET MEDIA
$7,600.00 Quantity : 2
Full page color advertisment @$3000 per insertion
$36,000.00 Quantity: 12
Monday to Wednesday Circulation, half page horizontal, spot colour print @ $4760 per insertion 2 spot colour loading charge + 25% ($1190) Newspaper right page loading charge +25% ($1190) 7% GST @ $449.80
$ 76,400.00 Quantity: 10
60K full color single side print A5 flyer @$2,100 per distribution
$8,400.00 Quantity : 4
MARKETING COMMUNICATION PLAN l BUDGETING
Unit Price
SEMINAR
EXHIBITION
Facilities Rental at National Library Board : $735 (4hr session)
Total Cost
$735.00 Quantity: 1
Facilities Rental at IFFS and sales promoter +7% GST
$10,309.00 Quantity: 1
Total IMC Budget
$139,609.00
Newspace Furniture. Pte Ltd l 46
11.
OPERATION PLAN
ORGANIZATION STRUCTURE l Current Structure
Managing Director & Finance Manager
Human Resource Manager
Operation Manager
Receptionist
Logistics
Sales & Marketing Manager
Creative Team
Newspace Furniture. Pte Ltd l 48
OPERATIONAL ROLES Managing Director
Operations Manager
Guide the organization to ensure the future objectives, aims and targets are met and strive towards the company goal.
Ensuring all functions and events are managed to make sure that budgeted targets are met on a monthly basis.
Determine the Company Policies in Quality, Health and Safety and the Environment and ensure things are well-communicated and understood by all staff.
To proactively work with the Managing Director to improve quality and profitability, implement and monitor these changes once executed.
Be responsible and understand the staff’s health, safety, and welfare.
Ensure all cash and stock on site within your area of responsibility are kept safe at all times.
Payment of staff salary and supplier debts are paid on time. Company’s vision and mission are in operation and future developments are being guided.
Finance Manager Develops and implement financial and administrative procedures of the business plan. Daily financial records and reports are prepared and maintained, and manages the budget of company’s expenses, operation and pricing. Oversees company’s cash management, investment and debt management activities.
Prepare Staff Authorization Form and Job Descriptions for recruitment and obtain authorization from the Managing Director. Handle all disciplinary issues and discussed with the Managing Director and the HR Department before progressing with disciplinary procedures with staff. Develop and train all members of staff with highest levels of quality and efficiency with the operation and customer service are employed at all times. Ensure the internal Health and Safety policies systems are maintained at all time throughout the year within the area of responsibility. Develop a proactive and professional work attitude at all times.
Sales and Marketing Manager Direct and coordinate the company sales and marketing functions, and develop sales selling cycle and methodology. Oversee the company marketing function to identify and develop new customers for products and services Manages the company sales and marketing budgets and oversee the development and management of internal operating budgets. Analyze and evaluate the effectiveness of sales, methods, costs and results. Plan on the public affairs and communications efforts by including public relation and community outreach. Managing the major and critical developing client accounts and coordinate the management of all other accounts. Plan and develop of company marketing and communication materials and prepare issuance and delivery of the sales materials, exhibits and promotion programs. Manage and promote a positive relations with the partners, vendors and distributors, and corporate with department managers and staff to develop a five year and ten year business plans for the company.
OPERATIONAL ROLES Human Resource Manager
Creative Team
Receptionist
Responsible on the welfare of the organization’s staff and making sure to employed the right people with right kills and qualifications for the job
Ensure the creative team of NewSpace will do creative function and operates in an efficient, profitable manner and create a creative product remain leading edge and ahead of our competitors.
Present and deliver an excellent customer service at all times.
Understand of how your organization operates, it’s business requirements and commercial objectives. Provide information resource to both employees and senior management. Developing, advising, implementing and communicating the management policies that depends on the type of organization role in area such as employment legislation, training, or graduate recruitment. Handle the employment law of working condition, disciplinary and grievance procedures, redundancies, paternity pay and maternity rights. Manage on recruiting staff, producing job description, placing adverts, working with recruitment consultancies, organizing interviews. Provide training and development programmes and identifying suitable courses. Salary reviews to research salaries and ensure they are in line with legal requirements and industry standards.
Ensure that the quality of creative and production is upheld, maintaining consistently standards for the teams and him or herself. Ensure on delivering strategic communication solution which help the company to attain the marketing and communications objectives. Present cohesive and persuasive rational for the company and campaign approaches and message of the design itself. Lead the unified process of marketing/concept/ design and post-production execution and interactive web and video graphics for advertising. Be able to work collaboratively with partners, participate in company strategizing and make recommendations for changes to the creative function to make market changes, competitive threats or to support strategic plans .
Serve and promote the company’s products in a quick and efficient by meeting the company standards. Assist in keeping the front -of-house and shophouse clean and tide at all times. Keep up to date of current promotions and new products knowledge. Make customers aware of offers or promotions of the company’s products and the function of the furniture. Speak to customers and ensure that they understand every single words mentioned . Maintain personal knowledge by completing in-house training and workbooks. Be able to adhere to all company policies and procedures and licensing laws Ensure of carrying out instructions given by the management team or head office.
Meet the expectations and standards for creative team attitude behavior, teamwork and professional development.
Newspace Furniture. Pte Ltd l 50
OPERATION PLAN l OPERATING HOURS
Operation Hours Monday to Friday: 10am – 8pm Saturday, Sunday and Public Holidays: 10am – 2pm
Staff working time Every floor staff are required to work for 6 days per week for 8 hours with 2 hours break inbetween.
12 10
OPEN
CLOSED
Lunch Break
12
8
OPERATION PLAN l LOCATION & FLOOR PLAN The company office is located in the Paya Lebar area, with easy accessibility via public transport. At the same time, its surroundings are to be comparatively quiet, away from primary commercial and residential areas. The company premises has a floor span of 1,389 sqft, complete with loading bay access.
Exit
Toilet Door
Sliding Door
Office Pantry
Mirror Wall
Staff Door
Sliding Door
Cashier
Chair
Products (Furniture)
Door Path Way
Mirror Placement of Furniture
Main Entrance
Newspace Furniture. Pte Ltd l 52
OPERATIONAL PLAN l HUMAN RESOURCE POLICIES
Salary Employees will be paid double salary(for that day) for working on public holidays. Employees will receive their salary on the 10th of every month, which will be credited into their bank account. Salary is subjected to CPF deductions at the applicable prevailing rates by the government.
A.L S.L
Annual Leave All employees are entitled to 7 days leave after 3 months probation period. Employer may grant employee unpaid leave if they are not eligible for applying for annual leave, or the employee had used up his/her granted annual leave.
Sick Leave Employees are granted 14 days of medical leave for each year of service, and hospitalization leave of 46 days per year, less any medical leave taken.
Compassionate Leave
C.L
Employees are entitled to 3 consecutive days of compassionate leave upon the following reasons: death of spouse, children, parents or siblings, or emergency hospital admittance of employee’s family/relatives.
OPERATIONAL PLAN l HUMAN RESOURCE POLICIES
Employees are allowed to make claims for transportation with a approval of the respective managing department.
Transportation Claims Employees are allowed to make claims for transportation with a approval of the respective managing department.
Retrenchment Notice Based on the table provided by the Ministry of Manpower, all employees are to adhere to the notice period as stated:
Length of Service > Less than 26 weeks > 26 weeks to less than 2 years > 2 years to less than 5 years > 5 years and above
R.N
Notice Period > 1 day > 1 week > 2 weeks > 4 weeks
Newspace Furniture. Pte Ltd l 54
12.
FINANCIAL BUDGETING
FINANCIAL BUDGETING l Capital Expenditure START UP CAPITAL Price per unit Quantity
Total (S$)
Renovation and Remodelling Fixtures Tables $100.00 7 $700.00 Chairs $50.00 9 $450.00 Computers $1,200.00 7 $8,400.00 Projector $500.00 1 $500.00 Projector Screen $150.00 1 $150.00 Cash Register $2,400.00 1 $2,400.00 Telephone $50.00 3 $150.00 Counter $2,500.00 1 $2,500.00 Surveillance Camera $400.00 2 $800.00 Shelf $400.00 1 $400.00 Whiteboard $400.00 1 $400.00 Office Supplies N/A N/A $1,000.00 TOTAL FIXTURE COST Opening Inventory Living Room Package $2,500.00 1 $2,500.00 Bedroom Package $2,500.00 1 $2,500.00 TOTAL INVENTORY COST Location & Administration Expenses Pre-incorporation cost - - $1,000.00 License & Permits - - $400.00 Security Deposit (3 months rental) $5,200.00 3 $15,600.00 TOTAL LOCATION & ADMIN EXPENSES TOTAL ESTIMATED START UP CAPITAL
Total (S$)
$12,000.00
$17,850.00
$5,000.00
$17,000.00 $51,850.00
OPERATION COST Monthly Quantity Annually Rental $5,200.00 12 $62,400.00 Utility Bills $1,500.00 12 $18,000.00 Advertising & Promotion Expenses - - $139,609.00 Retenant Fees $5,000.00 12 $60,000.00 Repairs & Maintenance $200.00 12 $2,400.00 Staff Cost (Salary & CPF) $27,941.6 0 12 $335,299.20 Workers’ Compensation - - $30,000.00 Audit Fees - - $2,000.00 Tax Agent - - $1,500.00 Supplies (Office & Operations) $1,000.00 TOTAL ESTIMATED OPERATION COST TOTAL ESTIMATED CAPITAL EXPENDITURE
$652,208.20 $704,058.20
Newspace Furniture. Pte Ltd l 56
Finance Budgeting l Profit & Loss Statement
per unit/ Revenue yearly cost Quantity Year 1 Quantity Year 2 Quantity Year 3 Customer Sales Living Room Package $3,500.00 55 $192,500.00 60 $210,000.00 70 $245,000.00 Bedroom Package (S) $2,380.00 43 $102,340.00 50 $119,000.00 60 $142,800.00 Bedroom Package (D) $3,500.00 43 $150,500.00 50 $175,000.00 60 $210,000.00 Design Service $1,800.00 98 $176,400.00 100 $180,000.00 120 $216,000.00 Corporate Sales Projects $442,000.00 2 $884,000.00 4 $1,768,000.00 6 $2,652,000.00 Total Revenue $1,505,740.00 $2,452,000.00 $3,465,800.00 Cost of Sales Living Room Package $2,500.00 55 $137,500.00 60 $150,000.00 70 $175,000.00 Bedroom Package (S) $1,700.00 43 $73,100.00 50 $85,000.00 60 $102,000.00 Bedroom Package (D) $2,500.00 43 $107,500.00 50 $125,000.00 60 $150,000.00 Projects $306,000.00 2 $612,000.00 4 $1,224,000.00 6 $1,836,000.00 Delivery Cost $150.00 331 $49,650.00 551 $82,650.00 771 $115,650.00 Total Cost of Sales $979,750.00 $1,666,650.00 $2,378,650.00 Gross Profit $525,990.00 $785,350.00 $1,087,150.00 Less: Start Up Expenses $51,850.00 - Less: Operation Expenses Rental $62,400.00 $62,400.00 $62,400.00 Utilities $18,000.00 $18,000.00 $18,000.00 Staff Cost Staff Salary $289,200.00 Staff CPF $46,099.20 Workers’ Compensation $30,000.00 Sub Total $365,299.20 $365,299.20 $365,299.20 Advertising & Promotion Expenses Official Website $165.00 Magazine Advertising $43,600.00 Newspaper Advertising $76,400.00 Flyer Distribution $8,400.00 Seminar
$735.00
Exhibition
$10,309.00
Sub Total Retenant Fees License & Permits Supplies (Office & Operations) Repairs & Maintenance Audit Fees Tax Agent
$139,609.00 $60,000.00 - $1,000.00 $2,400.00 $2,000.00 $1,500.00
$139,609.00 $60,000.00 $400.00 $1,000.00 $2,400.00 $2,000.00 $1,500.00
$139,609.00 $60,000.00 $400.00 $1,000.00 $2,400.00 $2,000.00 $1,500.00
Taxable Income -$178,068.20 $132,741.80 $434,541.80 Less: Income Tax Expense - $22,056.11 $73,362.11 Net Profit/Loss
-$178,068.20
$110,685.69
$361,179.69
Finance Budgeting l Return on Investment
Our ROI is estimated to be at
14.6%, based on our 3 year profit and loss statement.
Capital Expenditure S$704,058.20 Start up Expenses S$51,850.00 1st Year Operation Cost S$652,208.20
Revenue S$2,474,513.33
Gross Profit S$799,496.67
Net Profit S$97932.39
*Tabulated based on average of 3 years projection
Newspace Furniture. Pte Ltd l 58
13.
BUSINESS ROADMAP
> Source of suppliers > IMC planning and implementing > Staff Recruitment and training of staff
1
ar
> License from Governing bodies
Ye
> Organization Planning and Structuring
1.
> Setup & renovate the shop > Commencement of operations (within 3 months of setup)
o Events / Exhibition Competitions > Co-branding with other companies > Partnership with other institute
2
ar
o Advertising and creating awareness in the competitive market
Ye
> IMC implementation
> Pre-planning membership of 100
o Events / Exhibition Competitons > Co-branding with other companies > Partnership with other institute
ar
o Advertising and creating awareness in the competitive market
Ye
> IMC implementation
3
> Pre-planning membership of 200 > Increase of working staffs
Newspace Furniture. Pte Ltd l 60
FUTURE PLAN > Expand business outlets to overseas markets > Invest in Research & Development Department > Increase product range from household furniture to office furniture products > Set up self production factory
Newspace Furniture. Pte Ltd l 62
Newspace Furniture Pte . Ltd