CHIC DECOR
Home décor products and services
Group Members:
ABDULLAH GHAFFARY (FA20-BBA-105)
MUHAMMAD FAIZAN (FA20-BBA-093)
DANIYAL ALI (FA20-BBA-063)
ROHAB AHMAD (FA20-BBA-122)
Submitted To:
Sir Abid Naeem
CHIC DECOR
Home decor products and services
I.
EXECUTIVE SUMMARY
The company aims to provide a wide range of high-quality home decor products and services according to the shift
in trends and to the growing demand in the local market.
A.
MISSION STATEMENT
" To create an attractively designed and personalized living spaces that enhance the lives and
experiences of our clients”
B. KEYS TO SUCCESS
1. Quality of the Product
2. On time Delivery of Product
3. Reasonable Prices
4. Latest and innovative designs
C.
FINANCIAL OVERVIEW
DESCRIPTION
2017
2018
2019
CASH
2 million
2.5 million
3 million
SALES REVENUE
10 million
12 million
15 million
FINANCIAL-YEAR NET PROFIT
1.5 million
1.8 million
2.2 million
OPERATING MARGIN
15 %
15 %
14.6 %
OWNERS’ EQUITY
5 million
6 million
7 million
RETURN ON EQUITY
30 %
30.1 %
31.4 %
D. COMPANY OVERVIEW
Chic Decor Company is a dynamic and innovative company specializing in the sale of premium home decor items
online and providing exceptional event decor services in Islamabad. Established in [Year], the company is the
brainchild of four equal partners who share a passion for creating stylish and captivating environments. Chic Decor
Company's success is driven by the passion, expertise, and creativity of our four equal partners. At Chic Decor
Company, we prioritize customer satisfaction and strive to exceed expectations with our exceptional service. Chic
Decor aims to transform living spaces into unique havens that reflect individual personalities and aspirations.
III.
PRODUCTS / SERVICES
Chic Decor Company offers a comprehensive range of products and services, combining the convenience of online
shopping for home decor items with exceptional event decor services in Islamabad. Our offerings include
Home Décor Items
Lighting: A diverse selection of lamps, chandeliers, pendant lights, and other lighting fixtures to create ambiance.
Wall Art: Captivating paintings, prints, and wall decor to showcase personal style and elevate walls.
Decorative Accessories: From vases and candles to sculptures and mirrors, we offer a wide array of accessories to
enhance any room.
Event Decor Services:
Event Planning: Collaborative event planning services to conceptualize themes, color schemes, and overall design to
create an appealing site and provide good experience
With our online store, customers can conveniently browse and purchase home decor items, while our event decor
services ensure seamless planning and execution of unforgettable events.
IV.
SALES / PRICING
At Chic Decor Company, we offer a flexible and dynamic sales and pricing structure that caters to the unique needs of our
customers. Our pricing varies depending on the type and size of the event, as well as the specific requirements and themes
involved. Here's an overview of our sales and pricing structure:
1. Home Decor Items:
Our home decor items are competitively priced, offering excellent value for the quality and style they deliver. Prices are
clearly displayed on our online store, ensuring transparency and convenience for customers.
2. Event Decor Services:
We provide a complimentary initial consultation to discuss your event's vision, theme, and requirements. During this
consultation, we will understand your preferences, budget, and desired outcomes. Our pricing for event decor services is
dynamic and tailored to each unique event. Factors that may influence pricing include the type and size of the event,
venue location, duration, complexity of the design, and the specific decor elements required. For theme-based events,
such as weddings, corporate galas, or themed parties. Pricing for these events may include additional costs for specialized
props, themed furniture, elaborate lighting, and intricate floral arrangements.
PRODUCTS / SERVICES
2017
2018
2019
Drawing Room Decorations sales
2,000,000
2,500,000
3,000,000
Event Decoration products sales
3,000,000
3,500,000
4,000,000
Kitchen used products sales
1,000,000
1,200,000
1,500,000
Office Decorations sales
1,500,000
1,800,000
2,200,000
other sales
2,500,000
3,000,000
4,300,000
10,000,000
12,000,000
15,000,000
2018
2019
TOTAL
1.
GROSS-MARGIN PERCENTAGE
DESCRIPTION
2017
Variable Expense
13,000,000
3,500,000
4,000,000
Personal Expense
1,500,000
1,700,000
2,000,000
Add- operation Expenses
500,000
600,000
760,000
Fixed-Asset Expenses
200,000
250,000
300,000
Financial Expenses
100,000
120,000
150,000
57.00 %
46.08 %
46.33 %
Gross Margin
C. COST OF SALES
DESCRIPTION
2017
2018
2019
Variable Expense
3,000,000
3,500,000
4,000,000
Personal Expense
1,500,000
1,700,000
2,000,000
Add- operation Expenses
500,000
600,000
700,000
Fixed-Asset Expenses
2,000,000
2,500,000
3,000,000
Financial Expenses
100,000
120,000
150,000
5,300,000
6,170,000
7,150,000
TOTAL
D.
BREAK-EVEN ANALYSIS
DESCRIPTION
2017
2018
2019
10,000,000
12,000,000
15,000,000
5,300,000
6,170,000
7,150,000
3,000,000
3,500,000
4,000,000
Personnel Expenses
1,500,000
1,700,000
2,000,000
Additional Operating Expenses
500,000
600,000
700,000
Fixed-Asset Depreciation
200,000
250,000
300,000
Financial Expenses
100,000
120,000
150,000
SALES REVENUE
Cost of Sales
VARIABLE EXPENSES TOTAL
4,300,000
5,170,000
6,150,000
GROSS-MARGIN PERCENTAGE
57 %
46.08 %
46.33 %
BREAK-EVEN SALES REVENUE
9,473,684
11,251,366
13,285,714
526,316
748,634
1,714,286
FIXED EXPENSES TOTAL
SALES REV ABOVE BREAK-EVEN
MARKETING STRATEGY
Our market strategy will be to do gender based segmentation to target both parties and also Property Developers and
Renters from the market as they are more inclined towards Decoration and home gallery items.
Secondly as we are offering diversified items from the market which helps us to create a unique position in the market
as compared to our competitors.
Thirdly the differentiation strategy of our business is the Pricing strategy as we offer discounts on our various offerings and
our team will decor according to your home and Office.
Fourthly We will leverage social media and make online presence on Instagram, Facebook marketplace and get
shoutouts, and Promotion from the bloggers and influencers.
MARKET SEGMENTATION
Chic Craft specializes in home decor products and event decor services, and their market is strategically segmented into two significant
categories. The first segmentation is based on demographics, taking into account factors such as gender, age, and newlyweds. This enables Chic
Craft to understand the distinct preferences and requirements of different customer groups and develop targeted offerings to cater to their
specific needs. The second segmentation is occasion-based, encompassing a wide range of events including birthdays, anniversaries, weddings,
corporate gatherings, and other special occasions. By aligning their products and services with specific events, Chic Craft can provide
customized and tailored solutions that enhance the overall ambiance and aesthetic appeal of each occasion.
MARKET TARGETING
Females:
Target females of various age groups who are interested in home decor and event planning. Offer a wide range of chic craft
home decor products and event decor services.
Newly Weds:
Focus on couples who have recently gotten married and are in the process of setting up their new homes or planning their
wedding events. Provide specialized home decor products and event decor services tailored for newlyweds.
Age Group of 35 to 50 years:
Target individuals aged 35 to 50 years with established households and higher disposable income. Offer sophisticated home
decor products and event decor services suitable for mature aesthetics.
Occasion-based Segmentation:
Identify specific occasions or events where customers may require home decor products or event decor services. Target
customers planning milestone birthdays, anniversaries, corporate events, and other special occasions. Provide relevant
products and services to meet their specific needs.
VI.
COMPETITIVE ANALYSIS
Competitive analysis of the industry is mostly online such as on search engines and social media platform whereas,
for the décor business we have done our research on both online platforms as well as in market physically. Mostly
competitors shortlisted were on the basis of their reach and also on word of mouth criteria.
1.
PERFECT EVENT DÉCOR
Perfect event décor is an Islamabad based company which is in the business for more than five hears. They have
a decent market share in the business. They are also one of the major players in online segment with a significant
presence online having more than 4star rating.
2.
HELLO EVENTS
located in G11Markaz, hello events are experts in organizing birthday parties and celebrations. They are a major
player with significant market share in birthday theme party setup.
3.
Mass Comm Solutions
Mass Comm Solutions are leaders in the field of corporate event management. Quoted as Pakistan’s largest and
experienced in organizing all kinds of national and international events. They have strong corporate events
market share and are giants in the field.
4.
Lavish Home decor
They are online based company selling home décor items to individual consumers having reasonable price
range and a decent market share. They sell their items mostly on website.
5.
Shopperspk.com
they are leading in online décor items sales business. They have a huge market share and have name in the
market. They have ratings and great reviews online and a wide variety of product in different types to offer.
TEAM
Management Structure:
1. Executive Team: The executive team consists of top-level managers responsible for strategic decision-making,
overseeing operations, and setting the overall direction of the in-home decor products and services company.
2. Department Heads: Each major department, such as design, manufacturing, marketing, sales, and finance, is
headed by experienced professionals who manage day-to-day activities, supervise teams, and ensure efficient
operations within their respective areas.
3. Project Managers: They oversee specific projects, ensuring their timely completion, coordinating resources, and
managing budgets. They act as a bridge between different departments and facilitate smooth project execution.
Staffing Structure:
1. Designers: The design team includes interior designers, graphic designers, and product designers who create
visually appealing and functional decor products and solutions.
2. Manufacturing and Production Team: Skilled craftsmen, artisans, and technicians work in the manufacturing unit
to bring the design concepts to life. They handle the production process, quality control, and ensure timely delivery
of products.
3. Sales and Marketing Team: This team focuses on promoting in-home decor products and services through various
channels, including digital marketing, advertising, and establishing partnerships with retailers and distributors.
4. Customer Service Representatives: They handle customer inquiries, provide product information, process orders,
and address any post-purchase concerns or issues, ensuring a positive customer experience.
5. Finance and Administration Team: This team handles financial matters, such as budgeting, accounting, payroll,
and procurement. They also manage administrative tasks, including inventory management, logistics, and facilities
maintenance.
These efforts collectively contribute to the management and staffing structure required for successfully building out
in-home decor products and services in Pakistan, allowing the company to cater to the demands and preferences
of the local market while achieving sustainable growth and profitability.
1.
HEADCOUNT
DESCRIPTION
2017
2018
2019
SALES REPS
20
25
30
OFFICE STAFF
10
12
15
MANAGEMENT
5
6
8
CONSULTANTS
2
2
3
PARTNERS
3
4
5
HEADCOUNT TOTAL
B.
SALARY & WAGES
DESCRIPTION
2017
2018
2019
SALES REPS
500,000
550,000
600,000
OFFICE STAFF
300,000
350,000
400,000
MANAGEMENT
400,000
450,000
500,000
CONSULTANTS
200,000
250,000
200,000
PARTNERS
150,000
200,000
250,000
1,500,000
1,800,000
1,950,000
SALARY & WAGES TOTAL
C. STAFF EXPENSES
DESCRIPTION
2019
50,000
55,000
60,000
BENEFITS
30,000
35,000
40,000
HOLIDAY PAY
20,000
25,000
30,000
OTHER
10,000
12,000
15,000
OTHER
5,000
6,000
8,000
115,000
133,000
153,000
IMPLEMENTATION EXPENSE
One-Time Expenses, Fixed Assets, Etc.
1.
2018
SOCIAL SECURITY
STAFF EXPENSES TOTAL
VIII.
2017
START-UP EXPENSES
DESCRIPTION
2017
2018
2019
Legal Fee and Office Setup
25,000
20,000
19,000
Equipment
20,000
18,000
16,000
Marketing
12,000
10,000
8,000
Other Expense
5,000
4,000
3,000
62,000
52,000
46,000
START-UP EXPENSES TOTAL
ASSET PURCHASES
DESCRIPTION
2018
2019
Furniture
30,000
20,000
15,000
Equipment
50,000
40,000
35,000
Vehicles
25,000
20,000
15,000
Technology
40,000
30,000
25,000
Other Assets
10,000
8,000
5,000
155,000
118,000
95,000
ASSET PURCHASES TOTAL
IX.
2017
FINANCIAL PROJECTIONS
1.
PERFORMANCE MEASURES
DESCRIPTION
2017
2018
2019
Revenue Growth rate
12 %
8%
15 %
Gross margin percent
57 %
46.08 %
46.33 %
Operating margin
15 %
12 %
14 %
B.
Return on equity
18 %
14 %
17 %
EPS
3.50 %
2.10 %
2.75 %
DPS
1.00 %
1.00 %
1.20 %
INCOME STATEMENTS
DESCRIPTION
2017
2018
2019
Sales Revenue
10,000,000
12,000,000
15,000,000
COGS
5,500,000
6,960,000
8,000,000
Gross profit
4,500,000
5,040,000
7,000,000
Operating expense
2,600,000
2,800,000
3,000,000
Depreciation expense
300,000
350,000
400,000
Interest Expense
150,000
180,000
200,000
Net Income
2,450,000
2,710,000
3,400,000
C. BALANCE SHEETS
DESCRIPTION
2017
2018
2019
Total Assets
10,000,000
8,500,000
7,200,000
Current Assets
5,000,000
4,200,000
3,500,000
Fixed Assets
3,500,000
3,000,000
2,500,000
Total Liabilities
3,000,000
2,700,000
2,500,000
Current Liabilities
1,500,000
1,200,000
1,000,000
Long-term Liabilities
1,500,000
1,500,000
1,500,000
CASH-FLOW STATEMENT
DESCRIPTION
E.
2017
2018
2019
Operating Activities
500,000
600,000
700,000
Investing Activities
(200,000)
(250,000)
(300,000)
Financing Activities
(100,000)
(150,000)
(200,000)
Other Activities
50,000
50,000
50,000
Net cash Flow
250,000
250,000
250,000
Beginning cash Balance
100,000
350,000
600,000
PERFORMANCE MEASURES
DESCRIPTION
2017
2018
2019
Revenue Growth Rate
10 %
12 %
15 %
Net Profit Margin
15 %
14 %
13 %
Return on Asset
12 %
10 %
8%
Return on Equity
20 %
18 %
16 %
Debt to Equity Ratio
0.5
0.6
0.7
Current Ratio
2.5
2.3
2.1