U & I INTERIORS

Marketing plan and

research analysis
Abhishek mazumdar

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Executive summary .................................................................................................................................................... 3

Objective .................................................................................................................................................................... 4
Mission....................................................................................................................................................................... 4
Keys to Success .......................................................................................................................................................... 4
Customer bifurcation ................................................................................................................................................. 5
Types of customer...................................................................................................................................................... 5
Types of segmentation............................................................................................................................................... 6
Industry bifurcation ................................................................................................................................................... 7
Occasions ................................................................................................................................................................... 7
Industrial needs...................................................................................................................................................... 8
Design industry analysis............................................................................................................................................. 9
Designers in various design disciplines .................................................................................................................. 9
Design Industry by Turnover................................................................................................................................ 11
Geographical distribution of design industry ...................................................................................................... 12
City Wise Design Services..................................................................................................................................... 13
Design industry distribution................................................................................................................................. 14
Swot analysis............................................................................................................................................................ 15
Design Users............................................................................................................................................................. 16
Sector wise allocation .............................................................................................................................................. 19
Customer segmentation according to trends .......................................................................................................... 19
Intrinsic progressive............................................................................................................................................. 20
Social chameleon ................................................................................................................................................. 20
Pleasure seeker.................................................................................................................................................... 20
Traditional............................................................................................................................................................ 21
Area current rates................................................................................................................................................ 21
Action plan for the year 2014-2015......................................................................................................................... 22
2014-2015 monthly sales target .......................................................................................................................... 22
Promotional ideas ................................................................................................................................................ 22

Executive summary
Interior design industry is one of the key segments in real estate business. Designing and building projects both
go hand in hand. With the rise of infrastructure in India, the scope of development for interior design has also
increased. People have moved on to interior designers to design their home, office etc. the following report
showcases fully on the in depth analysis of interior design industry and ways of marketing this industry.

Objective
1. Realize an average of 50 lacs of sales each business month for the year 2014-2015. A total sales of 6
crore in a year.
2. Sales from all the three sectors, residential, commercial and educational.
3. Establish a commercial revenue client base accounting for 10% of total revenues.
4. 28.75% of total sales in 1st quarter, 28.09% of total sales in 2nd quarter, 33.25% of total sales in 3rd
quarter and 9.91% of total sales in 4th quarter.
5. Increase the horizon of u&I by getting more clients from different segments.

Mission
U&I interiors is an interior design service for discerning, quality-conscious clients that seek assistance in their
design choices for their primary residences, vacation homes, and businesses. This experience offers personal
attention through the design process and also provides design resources and products to its clients through
special purchases of furniture, fabric, and accessories. The total experience is provided in a way to inform,
inspire, and assist people through the process of transforming their home or business environment to become a
unique and personalized expression of themselves and add to their enjoyment of that interior space.

Keys to Success
The primary keys to success for U&I Interiors will be based on the following factors:

Provide the highest quality interior design consulting experience possible.

Sell specially selected products to these clients to further meet their interior design needs.

Communicate with our client base through the website and personalized communication techniques.

Retain clients to generate repeat purchases and initiate referrals

Customer bifurcation

ethnic

Ethnic
Income level
Occupation
Family status
Society status

Income level

Occupation

Family status

Society status

Types of customer
Loyal customer: These types of customers are less in numbers but promote more sales and profit as compared
to other customers as these are the ones which are completely satisfied. These customers revisit the
organization over times hence it is crucial to interact and keep in touch with them on a regular basis and invest
much time and effort with them. Loyal customers want individual attention and that demands polite and
respectful responses from supplier.
Discount customer: Discount customers are also frequent visitors but they are only a part of business when
offered with discounts on regular products and brands or they buy only low cost products. More is the discount
the more they tend towards buying. These customers are mostly related to small industries or the industries
that focus on low or marginal investments on products. Focus on these types of customers is also important as
they also promote distinguished part of profit into business.
Impulsive customer: These customers are difficult to convince as they want to do the business in urge or
caprice. They dont have any specific item into their product list but urge to buy what they find good and
productive at that point of time. Handling these customers is a challenge as they are not particularly looking for
a product and want the supplier to display all the useful products they have in their tally in front of them so that
they can buy what they like from that display. If impulsive customers are treated accordingly then there is high
probability that these customers could be a responsible for high percentage of selling.
Need based customer: These customers are product specific and only tend to buy items only to which they are
habitual or have a specific need for them. These are frequent customers but do not become a part of buying
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most of the times so it is difficult to satisfy them. These customers should be handled positively by showing
them ways and reasons to switch to other similar products and brands and initiating them to buy these. These
customers could possibly be lost if not tackled efficiently with positive interaction.
Wandering customer: These are the least profitable customers as sometimes they themselves are not sure what
to buy. These customers are normally new in industry and most of the times visit suppliers only for confirming
their needs on products. They investigate features of most prominent products in the market but do not buy any
of those or show least interest in buying. To grab such customers they should be properly informed about the
various positive features of the products so that they develop a sense of interest.

Types of segmentation

Need based segmentation: Needs-based segmentation groups customers based on similar needs
and wants, or benefits sought, with regards to a particular product or consumption context. Needsbased segmentation is perhaps the segmentation truest to the marketing concept, that is, satisfying
customers needs and wants. For companies to increase their sales, segmentation requires
understanding customer needs, including those that are underserved or even unmet.

Behavioral segmentation: Behavioral segmentation is based on product consumption-related

behaviors and can include frequency, volume and type of product usage. This type of segmentation can
be very powerful for firms that have a membership-type relationship with customers, for example, via a
contract such as banks and telecommunications providers, or via loyalty programmers. Here, firms can
exactly observe consumption behavior. A drawback is that firms typically can only observe the behavior
with regard to their own products, but not those of their competitors.

Demographic segmentation: Demographic segmentation, such as age, gender, income, has

been widely used. That works well, when demographics are highly associated with needs and wants.
However, such an association may often not be the case, as two people with the exact same
demographic characteristics may have very different needs and therefore exhibit different buying
behaviors.

Psychographic segmentation has become more popular as it reflects peoples lifestyles,

attitudes and aspirations. Psychographic segmentation can be very useful in strengthening brand
identity and creating an emotional connection with the brand, but may not necessarily result in sales.

Industry bifurcation
retail
visual
Malls and
branding
shopping center
Department
stores
Specialty stores

Btl activities
events

Visual
merchandising
showrooms

corporate
Office design
Eg:
bank,it,fmcg

healthcare
Design of
hospitals

hospitality
hotels

institutional
schools

clinic

motels

universities

laboratories

resorts

Psychiatric
facilities

cafes

Religious
facilities
Financial
universities

spas
health club

Occasions

retail

Low footfalls, off season

residential

Summer vacation,festivals,marraige

corporate

Renovation,diwali

business

off season

Educational institutes

Summer vacation

Industrial needs

Carry out utilization study

Staff survey
Technology brief
Green office feasibility
Proper budgeting
Accommodation standard
Legal requirements
Furnishing requirements
Morale & productivity
Health and safety

According to the survey, individuals who earn more than 12 lakhs per annum should opt for buying a property
over renting in Ahmedabad. However, due to higher rental rates, it is the fifth place on the scale of affordability
to rent. A middle income individual needs to save for at least five years to afford the down payment for the
house. The city also offer good value for buyer's money who can get around 20.18 sq.ft for every 1 lakh spent.
The average price of a 1,000 sq.ft. Property in Ahmedabad can cost a buyer Rs.49.55 Lakh. On the other side, the
average price of Rs.17,286 makes it less favorable to look for rent option. The NHB Residex (residential index)
increased by 86 points since 2007 and recorded a 6 basis points increase over the last year. This is in sync with
the increasing demand for residential properties in the city.
Service Business Analysis
The industry continues to be competitive with a "commodity" concern with "designers" of all skill and
background levels available throughout the market.

Potential Competitors: There are many other interior designers in particular area and these competitors
range from those that provide simple-focused services, such as draperies only, to a more full-service
interior design approach similar to u&i Interiors.

Power of Suppliers: Moderately high in most anyone that has a business licence can have access to
wholesale purchase of furniture, fabrics and accessories.

Power of Buyers: Very low as buyers work within the financial terms and product availability offered
through the suppliers that specify the terms and conditions.

Substitute Products: High as many people refer to themselves as interior designers regardless of
background, training, or certification. Substitute products are also high in the area of window treatment
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as hardcovering solutions have become available and increasingly affordable. This includes blinds,
shutters, and other "manufactured" treatments. Substitute products are not as prevalent in the area of
antiques and art pieces.

Rivalry: Moderately low with the "territorial" structure that the industry experiences and moderately
low exit barriers. The easy entry is accompanied with an easy exit and people get out when it is not
working.

Design industry analysis

Designers in various design disciplines
Design Disciplines
Architectural Design
Interior Design + Landscape Architecture + Furniture Design

Designers (in %)
89.83
10.17

Architectural design=89.83%
Interior design+ landscape architecture + furniture design=10.17

Design Disciplines
Fashion + Textile + Jewellery + Leather Design3
Graphic Design
Animation + New Media Design

Designers
(in %)
9.75
18.09
9.64
9

Industrial + Automotive + Retail Design

Allied (Toy + Set & Exhibition + Design Research)
Human Computer Interaction (HCI)4

22.63
10.94
29

(1,2,3,4 based on secondary data collected on 36337 designers in India) (Remaining figures based on a
sample size of 170 studios surveyed)

Fashion+ textile + jewellery + leather + design= 9.75%

Graphic design= 18.09%
Animation & new media=9.64%
Industrial + automotive + retail design=22.63%
Allied (toy + set & exhibition + design research) =10.94%
Hci=29%

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Design Industry by Turnover

Design area

number of companies in %
less than
Rs. 2,50,00,000

Rs. 2,50,00,000
- 4,99,50,000

Rs. 5,00,00,000
- 25,00,00,000

Rs. 25,00,00,000
+

Architectural Design

50

17

17

16

Interior Design + Landscape

Architecture+ Furniture Design

47

10

26

17

Fashion + Textile + Jewellery

+ Leather Design

73

Graphic Design

64

12

15

Animation + New Media Design 53

20

27

Industrial + Automotive
+ Retail Design

24

16

55

11

Allied (Toy + Set & Exhibition

+ Design Research)

22

11

44

23

HCI

43

29

28

Geographical distribution of design industry

city

Design studio

Bangalore

24.12

Mumbai

22.35

Delhi

22.94

Pune

14.71

Ahmedabad

4.12

Chennai

2.35

Hyderabad

1.76

Coimbatore

1.18

Rajkot

1.18

Goa

1.18

Cochin

0.59

Nagpur

0.59

Pondicherry

0.59

Jamshedpur

0.59

Lucknow

0.59

Surat

0.59

Vijayawada

0.59

(*Based on a sample size of 170 studios surveyed)

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City Wise Design Services

city

Architectural
Design

Interior
Design +
Landscape
Architecture+
Furniture
Design

Fashion +
Textile +
Jewellery +
Leather

Graphic
Design

Animation
+ new
media
design

Industrial +
Allied (Toy
Automotive + + Set &
Retail
Exhibition +
Design
Design
Research)

HCI

Total
No. of
Studios*

Ahmedabad

14

57

29

43

29

71

43

14

Bangalore

20

15

41

15

49

20

12

41

Chennai

25

75

Cochin

100

100

Coimbatore

50

50

50

Delhi

32

25

64

29

54

32

28

Goa

50

50

50

50

50

50

Gurgaon

10

10

10

20

50

20

20

10

Hyderabad

67

33

33

Mumbai

16

21

29

42

24

45

16

11

38

Nagpur

100

Pondicherry

100

Pune

20

48

16

52

28

76

36

28

25

Jamshedpur

100

Lucknow

100

Rajkot

50

50

50

Surat

100

100

100

Vijayawada

100

100

13

Noida

100

Total

170

Design industry distribution

Design Areas

Number of Design Companies*

(In %)

Architectural Design

Interior Design, Landscape Architecture & Furniture Design

13

Fashion Design, Textile Design, Jewellery Design & Leather Design

Graphic Design

20

Animation & New media design

10

Industrial Design, Automotive Design & Retail Design

25

Allied (Toy Design, Set & Exhibition design & Design Research)

11

Human Computer Interaction (HCI)

14

Architectural design 6%
Industrial design +
Landscape architecture
+ Furniture design 13 %
Fashion + textile +
Jewellery + leather
Design 9 %
Graphic design 20 %
Animation and new
Media design 10%
Industrial + automotive +
Retail design = 25%
Allied (toy+ set &
Exhibition + design
Research) =11%
Hci =6%

Swot analysis
Strenghts
the ability to provide excellent service.
Client loyalty developed through solid reputation.
Good referral relationships with architect.
Word of mouth recommendations.
Access to products,raw materials.

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Weakness
Expensive to produce
Need more frequent financial analysis
Future competition
Competitive market

Opportunity
Growing economy
New acquisitions
Increase in spending power
Promising activity from new home activity
Changes in design trends

Threats
Rising cost of raw materials
Continuous price pressure from competitors
Dramatic changes in design
Expansion of product and services by retail giants.

Design Users
The use of design (i.e either in-house design activities or the purchase of specialized design services) by Indian
firms is spread across many sectors. FMCG companies, automobile, retail, IT/communication, fashion industries
have a particularly large use of design. The typical buyers of design services include appliance manufacturers,
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machine tool manufacturers, automotive industry, furniture manufacturers, retail industry, hospitality industry,
Telecom and IT industry, FMCG companies, banking and insurance companies, publishing companies, apparel
and footwear companies, pharmaceutical industry etc. Domains such as education, NGOs, institutions, real
estate, government, etc. sporadically use design services.
Overall design utility is viewed in a very limited perspective by Indian industry. Design is an underused activity in
most Indian businesses.
Design is often seen as an expense item reserved for large companies thus keeping small and medium sized
companies out of the design users list.
Nonetheless design is evolving to become more strategic in nature. It means that businesses use design across
the length of their development process as also they use design to find new areas of business. Companies use
design in different ways. Some use it as strategic tool and some relegate it to be used at the end of the
development process for styling purposes. A handful of Indian companies use design strategically.

Architectural Design
Market
Architecture is a highly competitive and multi-disciplinary profession,
involving a variety of tasks.
As a field, it covers myriad disciplines, including spatial design,
aesthetics, project management and material management.
From our survey, out of the total number of designers working in the
country, this discipline accounts for the most with 81.25%.
Mumbai leads in terms of having maximum number of architects
followed by Pune and Delhi.
Current Activities
In terms of outsourcing, architectural services are gaining traction with scope including design development,
detailed architectural plans, construction documentation, as-built drawings, shop drawings, and visualization
(3D views & walk-through).
Architectural outsourcing service in India has the potential to grow to
$12 billion in the next four to six years, from its current level of $3.5 billion.
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 Annual requirement projections of architects stands over 10,000 which are expected to rise further but the
training facilities available are still short.

Future
One key aspect of architecture, which is coming up and expected to play an increasing role in architectural
design is environmental friendly buildings and structures. Green buildings will soon be a feature and a part of
people lives.
It is expected that India can garner 25 per cent-30 per cent of the world
wide green homes market, which is expected to see about USD$15 billion investments by 2012.

Interior Design

Interior design is a multi-faceted profession wherein creative and technical solutions are applied within a
structure to achieve a built interior environment.
Interior decoration and designing in India are getting popular with a lot of people opting for the services of
trained interior designers for their houses / offices, etc.
Reason can also be attributed to the changing definitions of homes and modern residential houses, which
now symbolize more with the personalities of their owners.
Interior design is also gaining popularity among workplaces and is being considered as a science helping to
reduce stress and fatigue thereby increasing productivity.
The services provided by interior decorators and designer cover a wide range of areas and include Interior
decoration services, furniture and furnishings, facilities design, mechanical designing, residential interior
architecture, etc.

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Sector wise allocation

15%

30%

new residence

15%

renovations-residence
office
20%

20%

hospitality
education & other

Customer segmentation according to trends

7%
40%

17%
intrinsic progressive
social chameleon
36%

traditional
pleasure seeker

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Intrinsic progressive
7% male young population
Needs
Quality
Value for money
Embrace new
possibilities

value
Futuristic
Tech savvy
Executive class

service
adequate
Little involvement

personal
competent
reliable
success

style
Sustainable design
futuristic

intelligent

Social chameleon
17% (30-40 years)
Needs
Standard
Less quality
conscious
More value,less
money

Value
Hypocrite
Tech savvy

Service
Fast
Cheap

Personal
sophisticated
Upper class

Individual

Little adequate

charming

Value
Self oriented
Risk taker
Young,married

Service
Fast
Clean
adequate
Less involvement

Personal
Up to date
spirited
charming

style
Current trend

Pleasure seeker
40% young
Needs
High end
branded
Eye catching

style
experimental

20

Traditional
36% all age group
Needs
Quality
reliable

Value
conservative
Value driven
Family person

Service
Security
reliability
More involvement

Personal
Down to earth
honest

style
simple
traditional

Area current rates

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Action plan for the year 2014-2015 (approx figure)

The approach to promote U&I Interiors with be through establishing relationships with key people in the
community and then through referral activities once a significant client base is established. U&I Interiors will
focus on developing solid and loyal client relationships offering design solutions based on the client's taste,
budget, use, and goals for the space. The additional selection, accessibility of product, design services, and
value-based pricing will differentiate Barton Interiors from the other options in the area.

Three segments that u&I need to target are

Residential, commercial and educational are the sectors u&I needs to focus

Leads generated in a
year
125000

interested

Actively interested

12500

1250

Potentially
interested
125

conversion
25

2014-2015 monthly sales target

Month
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15
total

Monthly sales
102.42
12.48
57.60
16.44
84.78
67.32
68.04
57.66
73.80
40.20
19.26
0.00
600.00

Quarterly sales
172.50

Yearly sales
600

168.54

199.50

59.46

600

600

Promotional ideas
1. Search Marketing Get your prospect at the time of their decision-making.

Search engine optimisation (Higher rankings)

Paid Search
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Paid for inclusion / feeds

2. Online PR Create Awareness of your brand by getting it mentioned.

Industry Portal Representation (eg Thehousedirectory.com)

Social Media (blogs, feeds, communities)

Media Alerting Services

Brand Protection

3. Online Partnerships Link your brand WITH OTHERS IN YOUR INDUSTRY

Affiliate Marketing

Sponsorship

Co-branding

Link building good relevant links only.

Widget marketing

4. Offline Communications You should know these.

Advertising

Personal selling

Sales promotion

PR

Sponsorship

Direct Mail

Exhibitions

Merchandising

Packaging

Word-of-mouth (your old clients are your best and cheapest salespeople)

5. Interactive Ads

Site-specific Media Buys (only if you target businesses)

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Ad networks

Sponsorship

Behavioral targeting

6. Opt-in Email

House list emails (your clients and prospects)

Cold (rented lists) not normally a good idea

Co-branded (share the marketing load wisely and boost your brand image)

Ads in 3rd party newsletters

7. Viral Marketing Electronic variants of traditional word of mouth

Pass along emails

Word-of-mouth (eg using the share & enjoy functionality below)

Buzz marketing

Generating media mentions

Lead generation

Online enquiries
Referrals
Contacting builders and brokers
Standee at upcoming projects
Home loan applications
Email marketing
Social media

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