The document provides a marketing plan for venetian blinds in the Udupi-Manipal region of India. It analyzes the current market situation, identifies opportunities for growth, and outlines marketing goals and strategies. Specifically, it sees opportunities in the growing construction industry in the region and targeting educational institutions. The plan sets goals to focus on these segments, increase promotions, innovate products, expand the distributor network, and provide customization. Financial projections estimate costs for new distribution centers and staffing.
Marketplace and Quality Assurance Presentation - Vincent Chirchir
Market Venetian Blinds
1. MARKETING PLAN FOR
VENETIAN BLINDS
- By Group V2
Dhananjay Dixit
Jyothsna Ch
Kshitij Agarwal
Priyance Agarwalla
Vaibhav D Chavan
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2. Executive Summary:
With the advent of the contemporary new age offices and classrooms, the aesthetic appeal has
taken a key priority. The concept of venetian blinds has taken a step in the said direction. They
have become quintessential in defining the aesthetics from an office boardroom to a new age
classroom.
We have compared five major players in the venetian blind business in the Udupi - Manipal
region. Both markets have huge untapped potential in terms of upcoming educational institutes
and construction of high end apartments. As already discussed, venetian blinds serve as a key
requirement in any office or classroom as it protects us from the scorching sunlight and gives a
sophisticated finish at the same time.
There is undoubtedly immense scope in the market but there co exists an intense segment
rivalry. In this scenario it is mandated for a company to do develop a marketing strategy and do
a thorough market research. It should keep itself aware of the market demand and develop
strategies to leverage this to its advantage. Among the various points covered, the inline
strategy focuses on market forecast, revenue model for setting up new venetian blind
distribution centers and month to month market budget.
Companies in this kind of scenario should make efficient marketing it prowess and use the
strategy and the marketing tools effectively to gain the position of a market leader.
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3. Table of Contents:
1. Executive Summary……………………………………………………………………..2
2. Table of Contents………………………………………………………………………..3
3. Summary of the Current Situation……………………………………………….4
4. Focused Assessment of the Marketing Opportunity…………………..11
5. Financial and Marketing Goals…………………………………………………..13
6. Summary of Company’s Marketing Strategy………………………………16
7. Month to Month Marketing Budget…………………………………………..17
8. Forecast of Month to Month Unit Sales and Revenue………………..18
9. Monitoring and Evaluation of Action Plans………………………………..20
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4. Summary of Current Situation
Venetian blinds are usually seen in rarefied corporate houses with most homes sporting
curtains. However, in households internationally, blinds have been ruling the roost for long with
their ratio to curtains being 70:30. While a few companies operating in this space, the attention
has been mostly on corporate interiors. The $1.7-billion world leader in window covering
products Hunter Douglas has been supplying to Indian business houses since 1995.The present
focus of this market is to attract as many household customers as possible. According to a
research, the market potential for this segment is 5 million blinds per annum in India but a
mindset change is necessary. The low-maintenance feature of blinds is their biggest plus. There
are many retail outlets and showrooms all over India including the one in Udupi where a market
research of venetian blinds was conducted.
Customer Analysis:
Need:
The need for venetian blinds is a functional need as well as an aesthetic need. Initially Venetian
blinds were seen as an advantageous substitute for curtains because:
1) The amount of sunlight entering a room could be controlled.
2) It helped to regulate the brightness in the room, thus controlling the ambience.
3) It provided a way of seeing what was happening outside along with giving privacy.
With time venetian blinds became more of a lifestyle product that matched the present taste
and convenience of consumers.
Present and Potential Customers:
Venetian Blinds is both a B2B and B2C product. Its present customers are organisations,
schools, colleges, offices where the requirement is in mass. However of late attempts have
been made to expand the market and get more and more households under its benefits. In the
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5. beginning it might have been suited for corporate offices only but its demand in the domestic
household market is increasing.
Reasons for Purchase:
Venetian Blinds provide a huge value to its customers. A reasonably priced product of high
quality provides both value for money and also utilitarian value. Customers have the choice to
select their type and the opportunity to actively participate in the design, look, and feel of the
product. It seeks to fulfill the following benefits that are important to customers:
Selection - A wide choice of current and tasteful colors, patterns, types of high quality
fabrics
Accessibility - The buyer can walk out of the store with the fabric they need to begin
their project.
Customer Design Services- Employees have a design background to make them a
resource for the customer. This enables customers to benefit from suggestions
regarding the selection of their fabric and related products in a manner to complement
their design choice.
Competitive Pricing - All products will be competitively priced in comparison to other
channels of distribution, such as catalogue sales. It is the cheapest as compared to other
types of blinds and hence most demanded product.
After Sales Services- From helping in selection of fabric, type, pattern to installation of
the blinds and its cleaning at regular intervals, skilled employees are adept at their task.
Important Features:
o Durability
o Easy Maintenance
o High moisture and Dirt Absorption Capacity
o Sound Absorption Capacity
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6. External Analysis:
Changes in Technological factors can serve as a great challenge for the venetian blind industry:
Innovations such as ROTO enabling electronically operated automatic rotation of blinds have
helped boost the sales of the product. Such technological innovations is making the industry
more competitive.
Innovations and Advantages:
- Different positions of venetians, such as diagonal mounting and/or lowering down, become
possible.
- Manner of rotating the venetians in between the window-panes is completely innovative
compared to other models existing in the market.
- Durability of blinds increases considerably due to the airtight space between the insulating
window-panes.
- Sound and heat insulation qualities of windows are improved.
- This type of blinds is technically, financially and ecologically more favourable.
- Aesthetic aspect of venetians improves (no need for strings and sticks to operate the blinds).
- Final user has no need to mount the venetians.
- No need to clean the venetians.
Marketing Mix
Product:
A Venetian blind has horizontal slats, one above another. Venetian blinds are basic slatted
blinds made of metal or plastic; they are suspended by strips of cloth called tapes, or by cords,
by which all slats in unison can be rotated through nearly 180 degrees. The slats can be rotated
such that they overlap with one side facing inward and then in the opposite direction such that
they overlap with the other side facing inward. The product faces stiff competition from variety
of substitutes such as sunscreen roller, honeycomb blinds, curtains, panel grid blinds to name a
few. The product is in the “Growth Phase” in the Product Life Cycle.
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7. Price:
Compared to all the types of blinds venetian blinds happen to be the cheapest. However
depending on the choice of fabric and pattern the price varies in India .Venetian blind prices
range from Rs 650 to Rs 1500 per meter square.
Promotion:
Product promotion is an act of advertising a good or service with the short/long term goal of
increasing sales. There are no shortcuts to success in marketing a venetian blinds business. In
this industry, the application of fundamental marketing tactics is more valuable than
promotional fads and gimmicks. An effective way of marketing venetian blinds is viral
marketing. Although there is little control over whether or not the products go viral, there are
things that can be done to nurture the brand's viral capacity. Product giveaways, community-
building, online discussion channels, and other techniques may not guarantee that the products
will go viral -- but they definitely improve the odds.
Place:
Venetian Blinds are easily available and are characterised by their quality, assortment, features
and guarantees. They are available at retail stores, showrooms or through a strong network of
dealer distribution. These blinds can also be purchased online.
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8. SWOT Analysis:
The following SWOT analysis captures the key strengths and weaknesses within the company,
and describes the opportunities and threats.
Strengths
Strong relationships with suppliers that offer credit arrangements, flexibility, and
response to special product requirements.
Excellent and stable staff, offering personalized customer service.
Great retail space that offers flexibility with a positive and attractive atmosphere.
Strong merchandising and product presentation.
Good referral relationships with complementary vendors, local realtors, and some
designers.
High customer loyalty among repeat and high-dollar purchase customers.
Weaknesses
Access to capital.
Cash flow continues to be unpredictable.
Owners are still climbing the "retail experience curve."
Location is not in a heavily travelled, traditional retail area.
Challenges of the seasonality of the business.
Opportunities
Growing market with a significant percentage of our target market still not knowing we
exist.
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9. Continuing opportunity through strategic alliances for referrals and marketing activities.
Benefiting from high levels of new home construction.
Changes in design trends can initiate updating and therefore sales.
Internet potential for selling products to other markets.
Threats
Competition from a national store; or a store with greater financing or product
resources could enter the market.
Continued price pressure, reducing contribution margins.
Dramatic changes in design, including fabric colors and styles, creates obsolete or less
profitable inventory.
Competition:
Competition in the area of decorator fabric comes from three general categories, traditional
fabric retail stores, catalogue sales, and discounters.
Competition
Catalogue
Retail Stores Discounters
Competitors
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10. Retail Stores
Current local competition includes the following:
House of Fabrics
Warehouse Fabrics
Interior Designers
Website Providers
Catalogue Competitors
An increasing level of competition is anticipated from catalogue sales. Recent trends indicates
increased interest in offering fabric, window designs, and blinds and related products through
this increasingly popular channel of distribution. Catalogue sources do not offer customers the
option to see, touch, and have the fabric in their homes. Price is the most significant
competitive factor this product source presents.
Discounters
Channels of distribution continue to shift in favor of discounters, who account for a significant
portion of the growth in the industry. As consumers experience lower levels of disposable
income, discounters leverage frequent store promotions to entice frugal, value-oriented
consumers. One of the biggest criticisms of discounters is their failure to offer a quality service
experience and their failure to present inviting displays to promote sales. These discounters,
along with specialty store chains, present one of the most severe competitive threats for
individually-owned specialty stores. This is partially due to extensive promotional efforts, price
advantages, and established relationships with their vendors.
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11. Focused Assessment of the Market Opportunity:
Udupi and Manipal called as twin towns still exhibit some characteristic differences. While
Udupi is characterized by local residents and floating population of devotees visiting the
temples, Manipal is known for its student population and people associated with them.
Manipal University, with over 20 constituent institutions and others, together has more than
20,000 students on campus. The development of the region as an education hub and the
gradual industrialization process taking place in the district are making an impact on the real-
estate scenario. The real-estate sector in Udupi-Manipal region has been witnessing a rapid
growth over the years. There is a marked development of the landscape of these towns over a
decade. The increasing demand of both residential and commercial space has boosted new
construction activity in these towns.
Recent Developments in Infrastructure Projects
Recent Developments In Infrastructure Around
Manipal
Proposal of opening a shopping mall near
syndicate circle.
Building new establishments near End Point to
shift the headquarters of government offices.
Received consent from NAA to establish a new
airport 20 Kms away from Manipal.
Large scale construction of premium flats
around End Point road.
Also there is a witnessed growth of middle class and upper middle class population in the town
and their disposable incomes. This growing middle class has caused an increased demand for
custom-designed decor and furnishings. This extends from residential design to other sectors,
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12. such as public and private offices and retail centers. Such demographics make this region as an
ideal market for fashionable and utilitarian Venetian Blinds.
The market opportunities in the region can be assessed in terms of commercial usage and
domestic usage and also in terms of blind types that is wooden, aluminum and PVC.
Venetian Blinds New Construction Refurnishing
Commercial Usage Wooden, Aluminum, PVC Wooden, Aluminum, PVC
Private Usage Wooden, Aluminum, PVC Wooden, Aluminum, PVC
Market Opportunities Type-wise
Wooden Venetian Blinds:
The slats of wooden Venetian blinds are made from wood. They are generally preferred in
homes to give an exotic and elegant look to the interior. Wooden Venetian blinds are one of
the most expensive types of Venetian blinds. They are also available in a range of different
colors and can be customized according to the needs of an upper middle class premium
customer.
Aluminum Venetian Blinds:
Made up of aluminum these blinds are light in weight and durable in nature. A potential target
market for these can be commercial spaces like offices, institutions retail outlets etc. Aluminum
blinds are known for its utilitarian value, a point of difference (POD) with respect to competitive
products.
PVC Venetian Blinds:
Generally, PVC Venetian blinds are used in bathrooms. This is because these blinds are able to
deal with a steamy atmosphere. These blinds are long lasting and are also rather inexpensive.
These can majorly be targeted to newly constructed flats and houses and also offices in the
region.
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13. Financial and Marketing Goals:
The below table lists some of the major venetian blind manufacturers in India, most of the
manufacturers listed below are reputed names in the venetian blind business and operate on a
pan India basis. Also listed below is the Venetian blind type manufactured by each firm.
Name of the Company Venetian Blind Material
PVC Aluminum Wood
Pramay Enterprises ✓ ✓
Soft Line Impex Pvt. Ltd ✓ ✓
Sourabh Engineering ✓ ✓ ✓
works
New Mangalore ✓ ✓
Enterprises
Corporate Solutions Inc. ✓ ✓
The following marketing goals are suggested:
1. Focus on the upcoming real estate growth in Manipal and Udupi: With its proximity to
Mangalore, Udupi has witnessed a phenomenal growth in the recent years. This growth
provided the Venetian blind dealers to tap the growing potential. High end apartments
can be the primary target segments for B2C customers.
2. Educational institutes in Manipal: Venetian blinds have primarily been a B2B product. It
finds for itself huge applications in classrooms, faculty rooms etc. Manipal has
traditionally been a student’s town. With new universities and educational institutes
coming out in and around Manipal, B2B selling can reach new heights.
3. More visibility in Trade fairs and increase in promotions: Trade fairs give a company
the chance to promote its range of products to a variety of customers in one single
place. If a company dealing in venetian blinds promotes itself in a trade fair, then it can
reach out to the target segment and a much lesser cost.
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14. 4. Innovation in the product line: Innovation is the key for survival in today’s market. Even
the firm with the highest market share cannot afford to relax till it strives for innovation.
5. Effective distributor network: An effective distributor network will ensure quicker
delivery to the customer and will lessen the turnaround time.
Cost of setting up a new distributor outlet:
Cost of setting up the outlet Udupi Manipal
Rent 5000*12 4000*12
Staff 100000*12 60000*12
Total 1260000 768000
Cost of setting up service centre
Tools/Equipment 50000 50000
Staff 2*5000 2*5000
Overheads 10000 10000
Total 1330000 838000
The estimated cost of implementation of setting up a new Sales Personnel is:
Udupi Manipal
No. of personnel 2 2
Fixed pay per resource 7500 7500
Commission on sales 10% on the Selling Price 10% on the Selling Price
Total 15000 + Variable 15000 + Variable
6. Efficient installation personnel: Company can leverage this factor during their
promotional activities. Efficient personnel can be synonymous to quality and after sale
service.
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15. 7. Customization for each customer: Every customer is unique and every customer has
unique requirements. The company should emphasize on educating the customer about
the degree of customization offered by the company which will suit their requirements.
8. Product development:
As understood from the market research, there are primarily 3 types of venetian blinds
available in the market. Depending upon the material type, each kind of venetian blind
finds a different application. Moreover there is a trend to use a Venetian blind made of
particular material in a given setup. There are three types of Venetian blinds available in
the market.
PVC
Aluminum
Wood
Material Features Typically Price (Per
used in Sq. Mt.)
PVC A recent development in Offices, 650/-
venetian blinds Classrooms
Has a typical glazed finish
and high durability
Aluminum One of the oldest forms of Factory shop 1000/-
venetian blinds floors,
High durability and places
strength where rough
usage is
expected
Wood Wooden venetian blinds Luxury 1500/-
have a high aesthetic appeal apartments,
Moderate strength and High end
moderate durability offices
More research into the above venetian blind types is required to increase the range of product
offering. Innovations in the above products will lead to increase sales which will fuel the growth
of the companies in the long run.
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16. Summary of Company’s Marketing Strategy:
1. Growth Strategy: The companies should look to diversify its customer base by trying to
locate its distribution outlets near areas where potential offices/ educational institutes
may come up. This will help it to anticipate its potential customers and will give them an
edge over competition. Moreover having trained service personnel near the area of
construction will reduce the turnaround time.
2. Sales Strategy: Since the main sales of the companies will be through the B2B channels.
It is essential for the companies to understand the difference in requirement for each
customer. The companies should be in a position to understand a range of customer
requirements and promote its products by showcasing its range of products.
3. Pricing Strategy: If a company improves its efficiency by more efficient production
methods and minimize the overhead costs in its distribution centers, then it will
certainly have a price advantage as compared to its peers. It can reduce the price of its
products and thereby increase its sales volume.
4. New Product Design Strategy: Innovation is the key for better sales. Coming up with
concepts which will attract the buyer is a way to increase your sales. The new product
design strategy should take into factor the new trends coming in the business and the
forecasted sales in the market.
5. Competitor Strategy: Since there are already a number of companies and their
distributor network in this area, the amount of competition is bound to be intense.
However there has to be a market leader in every segment and a company which keeps
in regular touch with its past and potential customers will have an advantage. Regular
promotion through trade fairs and incentives to the distributor personnel by linking it to
the volume of sales are some of the factors which might prove to be useful.
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17. Month-Month Marketing Budget:
The month-month marketing budget for the first year of implementing this strategy is as
follows:
January February March April May June
Salaries of Marketing Personnel 20000 20000 20000 20000 20000 20000
Direct Sales Force 30000 30000 30000 30000 30000 30000
TA/DA 2500 2500 2500 2500 2500 2500
Promotional Fairs 2000 2000 2000
Miscellaneous 1000 1000 1000 1000 1000 1000
Total 55500 53500 55500 53500 55500 53500
July August September October November December
Salaries of Marketing Personnel 20000 20000 20000 20000 20000 20000
Direct Sales Force 30000 30000 30000 30000 30000 30000
TA/DA 2500 2500 2500 2500 2500 2500
Promotional Fairs 2000 2000
Miscellaneous 1000 1000 1000 1000 1000 1000
Total 53500 53500 53500 55500 53500 55500
The direct Sales Force includes salary and commission on the number of units sold (4 Direct
Sales Personnel receiving 7500 each per month). This is to incentivize them to push sales.
Venetian Blinds have a derived demand; its demand depends on the demand for new houses,
offices i.e. Real Estate. The Real Estate has a season during October – April/May. So
Promotional Fairs are organized during these months every alternate month.
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18. Forecast of Month-Month Unit Sales and Revenue:
The total increase in the residential houses is 3224(25824 from 22600) in last 10 years. Out of
these approximately 33% are middle- middle class houses. Approximately 15% houses are
higher and upper middle class houses. Remaining are the lower- lower class houses and private
own properties. Here our target customer is higher middle class residential houses. We are
opting for direct marketing to builders and developers through direct sales force, our target is
to achieve 40% market share in this fiscal. Growth perspective for the construction sector is
very high as we can see many high end property budgets coming in near future.
Also increase in offices around the city is 265(no.) in last 7 years. Out of these almost 60% are
small offices and 40% are large offices. As most of the offices are our target customers and our
business model is B2B, we will cater to this segment through our direct sales force. Our target is
to achieve 40% market share in this fiscal.
Keeping these figures in mind, the following unit sales maybe forecasted:
Month Residential(No.) Offices(No.)
January 9 2
February 2 1
March 2 1
April 2 1
May 7 1
June 2 1
July 2 1
August 4 2
September 4 1
October 8 2
November 4 1
December 4 2
Total 50 16
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19. Rationale for the above forecast
Average Rate per Sq. Mt.:
PVC = 650/-
Aluminum = 1000/-
Wooden = 1500/-
Residential
Growth in past ten years = 3224
Yearly growth = 325
Upper class housing = .15* 325 = 48.75 = 49 (app.)
Target Market share = 49*.4 = 20 Houses + 20 Luxury duplex + 10 Bungalows
Total Estimate of demand = 50 Nos.
% of PVC = 60% => PVC = 30
% of Aluminum = 20% => Aluminum = 10
% of Wooden = 20% => Wooden = 10
Average size of window = 8 ft. * 6 ft. = 48 Sq. Ft. = 14.5 Sq. Mt.
No. of window that will be covered with blinds = 3 (1 hall + 2 Bedroom)
Total potential Revenue = 650*14.5*3 *30 + 1000*14.5*3*10 + 1500*14.5*3*10 = Rs. 1935750/-
Offices
Growth in number for past Seven years = 265
Yearly growth = 38 (App.)
Target market share = 40%
Target market = 0.4*38 = 16 nos.
Average usage in the offices = 100 Sq Mt.
Total Potential Revenue = 100 * 16* 650 = Rs. 1040000/-
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20. Monitoring and Evaluation of Action Plans
Environmental Audit
With the growing pace of technological innovation the Venetian blinds market has become
highly volatile and competitive. In order to analyze the changing environmental conditions,
periodic audits can be conducted. Such audits conducted periodically will provide a thorough
understanding of market size, growth, competitors, dealers etc.
Evaluation Analysis
Sales analysis will be conducted every 6 months and suitable adjustments will be made to the
promotion budget accordingly. Furthermore, key performance indicators will be undertaken by
all the employees in order to maintain a high standard of achievement within the organization.
In relation to the company’s promotional schedule, it will be reviewed every 3months in order
for the company to meet deadlines.
Variance Analysis
Variance analysis will be conducted every quarter in order to determine the variability in the
targeted figures. If there are any gaps in the targeted and actual figures, suitable changes will
be made to the strategies.
Marketing Objectives Audit
Audits will be conducted to ensure that the goals and objectives are being met. The percolation
of the goals and objectives to the key stakeholders such as sales force, marketing team and
channel partners will also be studied to ensure that everyone shares the common goals.
Marketing Strategy Audit
The effectiveness of the strategy in achieving the stated goals and objectives will be studied. If
need be, the strategy will be modified to steer the team towards the objectives. An audit of the
allocated resources and their effectiveness will also be conducted to improve efficiency.
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