MARKETING OF INTERIOR DECORATOR AND INFRASTRUCTURE DEVELOPMENT IN 91-STUDIO INTERIORS PVT.LTD.

INTERNSHIP REPORT

Submitted by Mr. R.ANAND

Reg. No. 098001135001

in partial fulfillment for the award of the degree of MASTER OF BUSINESS ADMINISTRATION DEPARTMENT OF MANAGEMENT STUDIES KALAIGNAR KARUNANIDHI INSTITUTE OF TECHNOLOGY COIMBATORE 641 402. AUGUST 2010

KALAIGNAR KARUNANIDHI INSTITUTE OF TECHNOLOGY DEPARTMENT OF MANAGEMENT STUDIES

PROJECT WORK AUGUST 2010

This is to certify that the project entitled MARKETING OF INTERIOR DECORATOR AND INFRASTRUCTURE DEVELOPMENT IN 91-STUDIO INTERIORS PVT.LTD. is the bonafide record of project work done by

Mr.R.ANAND
Reg.No. 098001135001 of MASTER OF BUSINESS ADMINISTRATION 2010 - 2011 ___________ Project Guide _______________________ Head of the Department

Submitted for the Project Viva-Voce examination held on _________

----------------------------Internal Examiner 1

-------------------------Internal Examiner 2

DECLARATION

I affirm that the project work titled MARKETING OF INTERIOR DECORATOR AND INFRASTRUCTURE DEVELOPMENT IN 91-STUDIO INTERIORS PVT.LTD. being submitted in partial fulfillment for the award of MASTER OF BUSINESS ADMINISTRATION in MARKETING &HUMAN RESOURCE is the original work carried out by me. It has not formed the part of any other project work submitted for award of any degree or diploma, either in this or any other University.

R.ANAND Reg.No. 098001135001

I certify that the declaration made above by the candidate is true

Signature of the Guide,

ACKNOWLEDGEMENT

The success of any project is the co-operative effort of the people around an individual. For all efforts, behind this successful project, I am highly intended to the following personalities without whom this project would ever be completed. I find no words to express my gratitude towards those who were constantly involved with me throughout development process.

I wish to express my sincere thanks and deep sense of gratitude to Dr.P.ANBALAGAN, DIRECTOR, KALAIGNAR KARUNANIDHI INSTITUTE OF

TECHNOLOGY for providing the necessary facilities to carry out this project work successfully. I wish to express my sincere thanks and deep sense of gratitude to Dr.N.MALMURUGAN, PRINCIPAL, KALAIGNAR KARUNANIDHI INSTITUTE OF TECHNOLOGY for providing the necessary facilities to carry out this project work successfully. I am thankful to Prof.P.KRISHNA RAO, Director, Department of Management Studies, KALAIGNAR KARUNANIDHI INSTITUTE OF TECHNOLOGY and the faculty members in the department for having helped in this report I am appreciative to my project guide P.REVATHI giving me good supervision and support during my training period .

CONTENTS
S.NO PAGE NO.

DESCRIPTION
1. 2. 3.

INTRODUCTION

1 4 6 7 8 10 17 18 28 29 32 34 39

OBJECTIVES OF STUDY OVERVIEW OF THE ORGANIZATION Brief History Nature of the organization Business Volume
Product Line

4.

ORGANIZATIONAL STRUCTURE
Main offices

5. 6.

STRUCTURE OF MARKETING DEPARTMENT FUNCTION OF MARKETING DEPARTMENT Marketing strategy

Pricing strategies

7.

Success and failure of different products of the organization in the market along with reasons Major competitors of the organization
Future prospects of the organization

44

51

58 63 64

8. 9.

CONCLUSION BIBLOGRAPHY

INTERIOR DECORATION

1.INTRODUCTION
Interior decoration is the art of personalizing and transforming interiors to create a beautiful interior. Interior decoration is used in homes, institutions and commercial spaces as well. To study interior decoration is quite extensive, requiring many hours of study and hands-on experience under an expert teacher, there are some basics to help an aspiring professional decide if this is the right career. These basics will also be helpful to the notice to start in the right direction for doing personal home interior decoration.

PURPOSE:

Room Use 1. What will the room be used for? Start with the basics in each room you intend to decorate. Consider what basic furniture will be kept and what will be replaced. Create a room map on graph paper and cut out furniture pieces, moving them around to find their best location. Color 2. The interior decorators best friend is the color wheel. There are three terms to determine how colors affect a room's dcor. First, complementary colors are colors opposite on the color wheel. The colors will deepen and strengthen each other. Second, triad colors uses three colors based on a triangle across the color wheel. The colors play off of each other without matching. Third, analogous colors are three colors next to each other on the color wheel. Monochromatic means hues all within the same color.

Choosing a Style 3. Furniture you decide to keep in a room when decoration may decide the style of the area. If you are choosing a new style, there are basic categories with many subcategories. For example under a country decoration style, there are sub categories of Shaker style, Amish style, cottage style, shabby chic and English country style. Basic styles include modern/contemporary, formal, country, traditional and casual. Line of the Room 4. Choosing the direction of the lines you emphasize in a room sets its mood. Vertical lines are balancing and formal while horizontal lines are more casual and restful, diagonal lines lead a person's eye as they come in the room, while curved lines put softness and femininity into the room. Texture 5. Texture gives added dimension and interest to a room. Rougher textures work better with more casual styles, while smoother textures work with formal or modern looks. However, you should use varying textures within a room without going from one extreme to the other.

History of Interior Decoration

1. Interior design dates back to ancient times, as people have decorated as long as they have had houses. The first signs of purposeful interior design were evidenced in the lavishly decorated. also carefully arranged their rooms based on the function of the room and the time of year. In the summer they used rooms that took advantage and different rooms in the winter that gave extra protection from the cold.

2. During the wealthy people became interested in the arts and began to commission artists to work in their homes. Function, form and decadence were the major themes in the palaces of the wealthy.

Industrial Revolution 3. The dawn of industry made interior decoration available to the multitudes. Cheaper home goods and decoration items such as wallpaper, household paint and fabrics caused middleincome families to be more interested in interior design. Modern Times 4. Interior decoration today is available to people of every income rate and level of skill. Decoration shows on television teach people how do decorate on their own and interior decorators cater to middle income and the rich. Modern decoration styles encompass parts of all of the previous decoration periods.

2. OBJECTIVES OF STUDY
Communication, transparency and cultural alignment are some of the key attributes that need to be well laid out while designing the organization structure. Other areas like talent retention, and clearly defined goals and vision are also dealt with. Based on varied interactions with important stakeholders, we map challenges and constraints across the set-up and analyze its intensity across the system, to be able to come up with best solutions. We provide suggestion and recommendations for top level restructuring, improving specific business processes and organizational change. Our organization design services include:

Understanding objectives of change and the environment in which it will take place Understanding activities like business processes, interface between the company and vendors, volume of activities and levels of resources Advising development of This service helps customers tackle key challenges faced and perceived by organizations at various levels. The results, post our analysis and study are presented in a matrix form thereby focusing on the impact on organization. In totality, a top-down approach is adopted by taking into consideration all challenges that could be faced and thereby putting forth strategies beforehand to tackle and create a fail proof design. This robust methodology comprises of the following steps:

Detailed discussion with stakeholders thereby identifying the goals and vision for the project Identifying key challenges faced and opportunities to be explored Recognizing key parameters for designing the organization structure Benchmarking the structure with industry best practices The concept of interior design is seen all throughout history, and its influence can be appreciated in many cultures of the world. The idea of interior design allows for creativity to be expressed in the interior spaces; however, when the idea originated is subject to speculation. We are told ancient Egyptians unknowingly fostered the birth of this concept by building elaborate
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columns, intricate tombs, and exotic furniture. Perhaps this was the eve of a new day when one could openly display their ideologies through the concept of interior decoration. In these times, decoration was only seen in the palaces of the wealthy and royal, as many of the artistic elements used were not cost effective for the working middle class.

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3. OVERVIEW OF THE ORGANIZATION

Company Summary 91-studio Interiors is a start-up business that will offer comprehensive interior design services for home and office. This business will assist those that want to have guidance and council in developing a basic design concept of their project, to the person that desires someone to take it from concept to complete implementation.91-studio Interiors will offer the ability for clients to purchase new and antique furniture, art work, decorator fabric, and home accessories. The website www.kitkichaninteriors.com will be used as another way to communicate the services available and provide a portfolio of the work accomplished. The business will begin as a home-based business and is expected to remain in this structure through at least the first three years. Company Ownership 91-studio Interiors, located in Coimbatore, Tamilnadu is registered in the State of Tamilnadu as a sole proprietorship owned and operated by Maruchallam Interiors. Company Locations and Facilities

91-studio Interiors is operated from a home office located in Coimbatore, tamilnadu . A room is dedicated to support a work area, a client contact work center, and display samples of design concepts, products, and past work.

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3.1Brief History
91-studio Interiors is a start-up business in the year 1998, company specializing in the interior design services for home and office. Maruchallam has grown in stature and today command a strong presence in the industry. Maruchallam is, in fact, the largest selling brand in India with over 20000 installations and counting. Year of Establishment : Nature of Business Major Markets : : 1998 Manufacturer, Wholesaler Indian Subcontinent,

Interior decoration is the art of personalizing and transforming interiors to create a beautiful interior.. The areas of application include: Individual residential and apartment buildings Restaurants and canteens Guest houses, lodges, hotels and hostels Hospitals and nursing homes Pharmaceutical, chemical and fertilizer industries Textile industry
Food processing industry

Food processing industry ISI Approved & Certified International Systems - ISO 9001

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3.2Nature of the organization

Interior designers draw upon many disciplines to enhance the function, safety, and aesthetics of interior spaces. Their main concerns are with how different colors, textures, furniture, lighting, and space work together to meet the needs of a building's occupants. Designers plan interior spaces of almost every type of building, including offices, airport terminals, theaters, shopping malls, restaurants, hotels, schools, hospitals, and private residences. Good design can boost office productivity, increase sales, attract a more affluent clientele, provide a more relaxing hospital stay, or increase a building's market value. Traditionally, most interior designers focused on decorationchoosing a style and color palette and then selecting appropriate furniture, floor and window coverings, artwork, and lighting. However, an increasing number of designers are becoming involved in architectural detailing, such as crown molding and built-in bookshelves, and in planning layouts of buildings undergoing renovation, including helping to determine the location of windows, stairways, escalators, and walkways. Interior designers must be able to read blueprints, understand building and fire codes, and know how to make space accessible to people who are disabled. Designers frequently collaborate with architects, electricians, and building contractors to ensure that designs are safe and meet construction requirements. Whatever space they are working on, almost all designers follow the same process. The first step, known as programming, is to determine the client's needs and wishes. The designer usually meets face-to-face with the client to find out how the space will be used and to get an idea of the client's preferences and budget. For example, the designer might inquire about a family's cooking habits if the family is remodeling a kitchen or ask about a store or restaurant's target customer to pick an appropriate motif. The designer also will visit the space to take inventory of existing furniture and equipment and identify positive attributes of the space and potential problems. After collecting this information, the designer formulates a design plan and estimates costs. Today, designs often are created with the use of computer-aided design (CAD) software, which provides more detail and easier corrections than sketches made by hand. Upon completing the design plan, the designer will present it to the client and make revisions based on the client's input.
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When the design concept is finalized, the designer will begin specifying the materials, finishes, and furnishings required, such as furniture, lighting, flooring, wall covering, and artwork. Depending on the complexity of the project, the designer also might submit drawings for approval by a construction inspector to ensure that the design meets building codes. If a project requires structural work, the designer works with an architect or engineer for that part of the project. Most designs also require the hiring of contractors to do technical work, such as lighting, plumbing, and electrical wiring. Often designers choose contractors and write work contracts. Finally, the designer develops a timeline for the project, coordinates contractor work schedules, and makes sure work is completed on time. The designer oversees the installation of the design elements, and after the project is complete, the designer, together with the client, pay follow-up visits to the building site to ensure that the client is satisfied. If the client is not satisfied, the designer makes corrections.

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3.3Business Volume
If you make your living as an interior designer or decorator the current economy has got to be hurting your business. When the economy is slow, many people who might otherwise hire an interior designer or decorator are forced to move such a non-essential service to the bottom of their priority list. If you havent felt the pinch yet, brace yourself as your business could take a drastic nose-dive during an economic recession. Nobody really needs interior design services, especially in have-not times. Theres also the fact that so many of your days are spent on the business-side of design; negotiating with contractors, waiting for deliveries to arrive, billing, gathering quotes, and so on. This is all time that doesnt directly generate revenue for your interior design or decoration business, and when client billings are already meager, this can really hurt your financial situation. Maybe youre one of the many trained interior decorators who have ended up working in retail for a 100% commission. If the economy gets worse and youre working purely on commission, where does that leave you? Even in good times, if you work for 100% commission you might as well be your own boss and have the freedom to market yourself to new clients rather than being tied to anyone store.

When I decided to take the reigns of my life back and do something that would allow me to profit from my creativity, I considered a career in interior design. I struggled with that option countless times across a 20 year period when I was unsatisfied in my work. I researched, and even interviewed, many interior design schools in my former life but for some reason I never took the step to enroll. I decided with my BA, MBA and a couple decades of experience in business, being in a classroom for two to four years with kids 20 years my junior was not Something I wanted to do. Never mind tuition costs and the tremendous loss of income while youre a student. Then who knows how many years of working experience as a designer or decorator would be needed after graduation to really start earning money. I wanted to unleash my creativity and love for
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decoration, but I definitely needed to start making money as soon as possible. So, I started my Own home staging company.

As soon as my business was launched, the money was coming in. Within my second year as a home stager I was making up to salary of 10,000 per month. Compare that to the median annual 36,150 a year for an Interior Designer according to Salary.com this year. Im very

happy I Trusted my instincts! If youre an interior designer or decorator and you arent making enough money, consider adding Home Staging to your service mix or switching to a more profitable career as a Home Stager altogether.

Here a few ways a home staging business can be more profitable than an interior design business: As a home stager you get the opportunity to work with different types of people than you would as an interior designer. Generally, only very high income individuals hire interior designers, which limits your target market. Home stagers work mostly with clients in the middle to upper income level which gives you a much larger percentage of the population to market to, And increases the number of projects available for you to work on.

Home stagers enjoy a higher volume of projects than interior designers because each one is so short in nature. One interior design project might take months to complete (especially when you factor in the wait times to have upholstery done, or furniture delivered), but the average home staging project takes only a few hours or days. Theres no way I could have decorated hundreds of homes within a couple of years as a new interior designer, the way I did as a new home stager. With such quick projects, a home stager is able to complete (and get paid for) a significantly higher number of projects per year than an interior designer who often has client work on hold through no fault of their own.

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 When the economy is slow, people eliminate the non-essentials. Interior design or decoration isnt really high on the essential items list especially when choices need to be made about what to give up, and theres no real deadline to redecorate or renovate a room. In uncertain times, interior design moves way down on the priority list, while home staging move up. No matter how slow the economy is or how much the real estate market has declined, there will always be people who absolutely have to sell and move by a certain date. Divorce, job relocation, job loss, mounting debts, a death in the family or a birth often get people to put their house on the market even if it isnt the best time to sell. When a homeowner is desperate to sell their house, a home stager will often be involved since the seller stands to make a handsome profit from their services. When people have less time, less money or less equity in their house, they need a home stager so they can get whatever they can out of the sale of their home! As a home stager, your creativity and talent for decoration will serve you well in slow economic times and slow real estate markets.

I especially love the amount of creative freedom I get as a home stager. Because my clients know Im decoration their home to sell and not for them to live in, I am able to execute my creative vision without their interference or taking their taste into consideration. I cant imagine wasting hours sitting with a client who cant decide which color they want for their bathroom, or which fabric to pick for their drapes. My clients dont care what I choose as long as their house will sell quicker because of it. Besides that, my home staging business is extremely profitable which every entrepreneur wants. If your interior design business isnt doing as well as you hoped, its not too late to make a change towards living a more creatively fulfilling career that is also more profitable. Do some research into the home staging field. Its a career that is virtually recession-proof.

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Monthly Operating Expenses

For the first six months, both partners will not take a salary out of the company. After this period, they will each split a 35% share of the net profits each month. 1. Office Rental 90,000 monthly 2. Telephone 750 monthly 3. Office Equipment 50,000 (for book value only; owner invested) 4. Software 25,000 (for book value only; owner invested) 5. Postage 500 6. Special Tools 26,000 (for book value only; owner invested) 7. Advertising 60,000 8. Company VanGas, Repair and Maintain 5000 monthly Company VanBoth owners transferred ownership of their vans to the business. Both are free and clear of any debt and are valued at bank book. We will develop strategic alliances with local builders, realtors and home improvement firms. This will allow us to have a several lines of revenue into our company. Here is a breakdown of the revenue sources we will have. 1. Retail Clientswalkin or phone quotes 2. Realtorfor their clients' homes 3. Home Improvement Companies 4. Commercial builders of office and home complexes 5. Home builders associations 6. Furniture stores 7. Paint and wall paper stores 8. Flower shops 9. Architects and developers 1,20,000 & 1,60,000 according to the local

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10. We will also develop a weekly advice column in the local newspaper and try to set up a talktype show on the local cable 10 channels. This channel is free to use as long as the information provided is key to the public's interest.

Pricing Structure
Fee structures vary widely, depending on the designer, complexity of the project, geographical location and a host of other factors. Some of the ways interior designer's charges for their services include:

Fixed fee (or flat fee)The designer identifies a specific sum to cover costs, exclusive of reimbursement for expenses. One total fee applies to the complete range of services, from conceptual development through layouts, specifications and final installation.

Hourly feeSome designers charge based on the actual time spent on a project or specific service, with fees ranging from 550 to 1500 per hour, based on the required

detail and other professionals who may need to be consulted.

Percentage feeCompensation is computed as a percentage of construction/project costs. Cost plusA designer purchases materials, furnishings and services (e.g., carpentry, drapery workrooms, picture framing, etc.) at cost and sells to the client at the designer's cost plus a specified percentage agreed to by the client. The service charge is often put at 2030 percent.

RetailOthers charge their clients the retail price of furnishings, furniture and all other goods they get wholesale, keeping the difference as designer's fee and services. Retail establishments offering design services commonly use this method. With this method, clients get the designers services at a price no greater than he or she would have paid for the products at retail.

Per square footOften used for large commercial properties, the charge is based on the area of the project. Our staff designers require a retainer fee before the start of a design project. A retainer is

an amount of money paid by the client to the designer and applied to the balance due at the termination of the project.
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Income Potential
What is unique about the interior design business is that you never do the same job twice. It will be hard to place a specific price on individual projects. What you will earn from a job that requires redecoration of an entire room from the carpet, wallpaper to upholstery will be different from a job that requires you to put up drapes to ten windows. According to Industry statistics, on the Design Business, an interior designer earns an average of sales of 883 per job. If you are working at four jobs per month, you can expect monthly 40,415 per month. Yearly income for designers can expect to earn about 5,20,980,

for great designers with solid track record, this will be the take home pay of our designer staff, and our % will be 1.5 times this per designer or 79,470 per year per each staff member.

Our goal is to have 5 designers on staff; this will make our first year gross profit of 397,350 and gross revenue of 662,250.

The goal over time will be to increase the number of clients per designer per month. This will result in increase revenues. This will happen once we get better known for our services.

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Training, Other Qualifications, and Advancement

The reason we put this in our business plan is to always be reminded of the fact that our staff and our training will be the key to our success in the designers business. We will continue to follow the guide we listed below, as well make amendments to it as we require. Creativity is crucial in all design occupations. People in this field must have a strong sense of the aesthetican eye for color and detail, a sense of balance and proportion, and an appreciation for beauty. Sketching ability is helpful for most designers, but it is especially important for fashion designers. A good portfolioa collection of examples of a person's best workis often the deciding factor in getting a job. Except for floral design, formal preparation in design is necessary. Educational requirements for entrylevel positions vary. Some design occupations, notably industrial design, require a bachelor's degree. Interior designers normally need a college education, in part because few clientsespecially commercial clientsare willing to entrust responsibility for designing living and working space to a designer with no formal credentials.

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3.4 Product Line

Products and Services 91-studio Interiors focuses on providing interior design consulting. This is

complemented by specially purchased furniture, art pieces, decorator fabric, and accessories for the home and office. The sales process will begin with interior design consulting services, and then progress on to offer specially selected components to complement the design theme. Products available through 91-studio Interiors include:

Furniture available through special purchase arrangements with Thomasville, Drexel Heritage, and Henredon and local craftsman.

A line of drapery hardware called purchased through Dept. of the Interior Decorator Fabrics in Eugene, Oregon found.

Accessory and art pieces available through wholesale shows. Hunter Douglas window treatment products including a variety of hard window coverings. Antiques acquired for specific client needs through an arrangement with a local antique buyer and through direct purchases through other sources.

Product and Service Description Our primary points of differentiation offer these qualities:

A unique client experience from a trained and professional interior designer that is qualified and capable of meeting the needs of discerning clients with high expectations.

Access to a wide and unique selection of new and antique furniture, accessories, and special-order decorator fabrics.

Personal assistance from a complementary product offering, including hard-covering window treatment, hardware, and home accessories that fit the look and objectives of each project.

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4.ORGANIZATIONAL STRUCTURE
Executive Summary 91-studio Interiors is a proposed venture that will offer comprehensive interior design services for homes and offices in the 91-studio Interiors also will provide access to products to complement the design consulting services including furniture, both new and antique, decorator fabric, and home and office accessories. This venture offers the personalized services the target market desires and can afford in a way that is unique from concept to implementation. Recent market research indicates a specific and growing need in the area for the interior design consulting services and products 91-studio Interiors offers the market it will serve. The market strategy will be based on a cost effective approach to reach this clearly defined target market. Although the population of Boulder is under 100,000, the market has a significant quantity of relatively wealthy households that are conscious of the appearance and feel of their home and offices. The approach to promote 91-studio Interiors with be through establishing relationships with key people in the community and then through referral activities once a significant client base is established. 91-studio 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 91-studio Interiors from the other options in the area. Total revenues in the first year are projected to exceed 46,000 with a loss. The venture will show increasing profits in year two and three, with revenues projected to increase to almost 80,000. This interior design business plan outlines the concept and implementation and details regarding the first three years of this venture.

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Objectives 1. Realize an average of second, and 3,870 of sales each business month for the first year 5,720 for the

6,600 for the third year.

2. Generate a minimum of 45% of revenues from product sales versus consulting billing. 3. Establish a commercial revenue client base accounting for 10% of total revenues. Mission 91-studio 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.

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Keys to Success The primary keys to success for 91-studio 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.

Market Analysis Summary 91-studio Interiors has a defined target market client that will be the basis of building this business. This client is identical for both the residence and office spaces, but the target market is identical based on her different roles for each of those spaces. Effective marketing combined with an optimal product offering is critical to the 91-studio Interiors' success and future profitability. The owner possesses solid information about the market and knows a great deal about the common attributes of those that are expected to be prized and loyal clients. This information will be leveraged to better understand who 91studio Interiors will serve, their specific needs, and how to better communicate with them.

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Market Segmentation The profile of the 91-studio Interior client consists of the following geographic, demographic, psychographic, and behavior factors: Geographics

The geographic market is the affluent sector within the Boulder, Colorado area with a population of 94,673. (Based on the 2000 Census data.)

A 20-mile geographic area is in need of the products and services offered and do not intend to pursue the market at this time.

The total target market population is estimated at 24,000 based on the following demographics.

Demographics

Female, married and have attended college. Have children, but they are not necessarily at home. A combined household annual income greater than 100,000.

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Age range of 35 to 55 years, with a median age of 42. Owns their home, townhouse and/or condominium valued at over 425,000.

They and/or their spouse work in a professional setting and may have interior design requirements for their office space as well as their homes.

Belong to one or more business, service, and/or athletic organization including:

o o o o o

Boulder Country Club. Junior League of Boulder. American Business Women's Association. American Auxiliary of University Women. Doctor's Wives Auxiliary.

Competitive Comparison Our competition is primarily from other interior designers. Looking at a broader picture, there is also competition from the "do-it-yourself" resource providers that have retail stores and websites that include the following:

The list of competitors for home accessory competition includes Pier 1 and local competitors that provide an entire list of other furniture, accessory and gift stores.

Web sales of furniture, fabric and other interior design-oriented products has expanded dramatically and in many cases is easily available.

Psychographics

The appearance of her home is a priority. Entertaining and showing her home is important. She perceives herself as creative, tasteful and able, but seeks validation and support regarding her decoration ideas and choices.

She reads one or more of the following magazines:

o o o o

Martha Stewart Living. Country Living. Home. House Beautiful.

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o o o o o

Country Home. Metropolitan Home. Traditional Homes. Victoria. Elle Decor.

If she does seek out television as an information source for home decoration that is most likely to be "Martha Stewart" and, on a lesser basis, "Interior Motives."

Behaviors

She takes pride in having an active role in decoration their home. Her home is a form of communicating "who she is" to others. Comparison positioning and stature within social groups are made on an ongoing basis, but rarely discussed. 91-studio Interiors is providing its clients the opportunity to create a home environment

to express who they are. They seek design assistance and have the resources to accomplish their goals. They desire their home to be personal, unique, and tasteful as it communicates a message about what is important to them. 91-studio Interiors will seek to fulfill the following benefits that are important to our clients.

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Market Analysis Year 1 Potential Customers Growth 34,400 12,000 38,528 13,080 43,151 14,257 48,329 15,540 54,128 16,939 Year 2 Year 3 Year 4 Year 5 CAGR 12.00% 9.00%

Country Club Women 12% Boomers in Transition 9% Professional Youngsters Home Builders Other Total

8%

8,000

8,640

9,331

10,077

10,883

8.00%

5% 0% 10.09%

8,000 0 62,400

8,400 0 68,648

8,820 0 75,559

9,261 0 83,207

9,724 0 91,674

5.00% 0.00% 10.09%

Target Market Segment Strategy Our marketing strategy will create awareness, interest, and appeal from our target market for what 91-studio Interiors offers its clients. The target markets are separated into four segments; "Country Club Women," "Boomers in Transition," "Professional Youngsters," and "Home Builders." The primary marketing opportunity is selling to these well defined and accessible target market segments that focuses on investing discretionary income in these areas: Country Club Women - The most dominant segment of the four is comprised of women in the age range of 35 to 50. They are married, have a household income greater than 100,000,

own at least one home or condominium, and are socially active at and away from home. They are members of the Boulder Country Club, Junior League of Boulder, Boomers in Transition - This group, typically ranging in age from 50 to 65, is going through a positive and planned life transition. They are changing homes (either building or moving) or remodeling due to empty
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nest syndrome, retirement plans, general downsizing desires, or to just get closer to the golf course. Their surprisingly high level of discretionary income is first spent on travel, with decoration their home a close second. This is what makes this segment so attractive. The woman of the couple is the decision maker, and often does not always include the husband in the selection or purchase process. Professional Youngsters - Couples between the ages of 25 and 35 establishing their first "adult" household fall into this group. They both work, earn in excess of 80,000 annually, and

now want to invest in their home. They seek to enjoy their home and communicate a "successful" image and message to their contemporaries. They buy big when they have received a promotion, a bonus, or an inheritance. Home Builders - People in the home building process, typically ranging in age from 40 to 55, are prime candidates for 91-studio Interiors. This applies to both primary residences and vacations and secondary homes. Market Needs 91-studio Interiors will provide its clients the opportunity to create a home environment to express who they are. They have the choice to actively participate in the design, look, and feel of their home. They desire their home to be personal, unique, and tasteful as well as communicate a message about what is important to them. 91-studio Interiors seek to fulfill the following benefits that we know are important to our clients. 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 the Boulder 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 91-studio Interiors.

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Power of Suppliers: Moderately high in most anyone that has a business license 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 as hard covering 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. With the slow, but steady, growth of the past few years, the industry is now experiencing

a "cautious optimism" regarding the future. Growth and expansion activities for most areas of the interior design industry appear to be carefully considered. Many in the industry continues to decide what to do and buy as the economy has experienced a slowdown and increased uncertainty from the more economically confident 2000'n. Distributing a Service Our primary method of distribution will be on a direct sales basis for each individual client. Competition and Buying Patterns Competition in the area is strong, with designers ranging from the home-based, no formal training individuals to the more formalized store front, Association of Interior Designers (ASID) certified designers that have close relationships with prestigious architects. In most cases, clients make the provider decision on the basis of three criteria in this order with these percent influences indicated after each:

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1. Referrals and relationship with other professionals, particularly architects (55%). 2. Personality and "expected relationship" with the designer (25% ). 3. Past work (15%). 4. ASID certification (5%). Understanding the influence of these factors on the prospective client will be key in the marketing strategy. Main Competitors Current local competition includes the following:

Interior Designers: There are 37 interior designers listed in the Boulder Yellow Pages (Year 2000-2001 issue) that offer fabric as a part of their services. Interior designers make profit off mark-up of fabric in addition to their hourly services charges. Their costs per yard are typically higher since they do not benefit from retail or volume discounts. Therefore, their costs to their client is often two to four times higher than the price per yard from 91-studio Interiors.

House of Fabrics: Nationwide recognition and buying power of numerous types of dated fabric with strong product availability. This store has experienced financial difficulty in recent years and has closed several locations throughout the country.

Warehouse Fabrics: Locally owned, offering low-cost products with a wide selection of discontinued fabrics and only a limited number of "current" fabrics. This warehouse concept offers marginal client service with what many "upper end" clients consider to be an "undesirable" shopping environment.

Website Providers: Fabric sales over the Web are limited at this time, and this will be a source of competition for the future to watch. Currently, there is no measurable impact on our market through competitive websites.

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4.1 Main offices

Coimbatore-Head Office Madurai Salem Trichy

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5. STRUCTURE OF MARKETING DEPARTMENT

Marketing Management is a business discipline which is focused on the practical application of marketing techniques and the management of a firm's marketing resources and activities. Rapidly emerging forces of globalization have compelled firms to market beyond the borders of their home country making international marketing highly significant and an integral part of a firm's marketing strategy. Marketing managers are often responsible for influencing the level, timing, and composition of customer demand accepted definition of the term. In part, this is because the role of a marketing manager can vary significantly based on a business' size, corporate culture, and industry context. For example, in a large consumer products company, the marketing manager may act as the overall general manager of his or her assigned product to create an effective, costefficient marketing management strategy; firms must possess a detailed, objective understanding of their own business and the market in which they operate. In analyzing these issues, the
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discipline of marketing management often overlaps with the related discipline of strategic planning.

Structure Traditionally, marketing analysis was structured into three areas: customer analysis, company analysis, and Competitor analysis (so-called "3Cs" analysis). More recently, it has become fashionable in some marketing circles to divide these further into certain five "Cs": Customer analysis, Company analysis, Collaborator analysis, Competitor analysis, and analysis of the industry Context. In economics, market structure (also known as the number of firms producing identical products.)

Monopolistic competition, also called competitive market, where there are a small number of dependent firms which each have a very large proportion of the market share and products from different companies are different.

Oligopoly, in which a market is dominated by a large number of firms which own more than 40% of the market share.

Oligopoly, a market, where many sellers can be present but meet only a few buyers. Monopoly, where there is only one provider of a product or service. Natural monopoly, a monopoly in which economies of scale cause efficiency to increase continuously with the size of the firm. A firm is a natural monopoly if it is able to serve the entire market demand at a lower cost than any combination of two or more smaller, more specialized firms.

Monophony, when there is only one buyer in a market. Department analysis is to develop a schematic diagram for market segmentation,

breaking down the market into various constituent groups of customers, which are called customer segments or market segmentations. Marketing managers work to develop detailed profiles of each segment, focusing on any number of variables that may differ among the
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segments: demographic, psychographic, geographic, behavioral, needs-benefit, and other factors may all be examined. Marketers also attempt to track these segments' perceptions of the various products in the market using tools such as perceptual mapping. In company analysis, marketers focus on understanding the company's cost structure and cost position relative to competitors, as well as working to identify a firm's core competencies and other competitively distinct company resources. Marketing managers may also work with the accounting department to analyze the profits the firm is generating from various product lines and customer accounts. The company may also conduct periodic brand audits to assess the strength of its brands and sources of brand equity. The firm's collaborators may also be profiled, which may include various suppliers, distributors and other channel partners, joint venture partners, and others. An analysis of complementary products may also be performed if such products exist. Marketing management employs various tools from economics and competitive strategy to analyze the industry context in which the firm operates. These include Porters five forces, analysis of strategic groups of competitors, value chain analysis and others. Depending on the industry, the regulatory context may also be important to examine in detail. In Competitor analysis, marketers build detailed profiles of each competitor in the market, focusing especially on their relative competitive strengths and weaknesses using SWOT analysis. Marketing managers will examine each competitor's cost structure, sources of profits, resources and competencies, competitive positioning and product differentiation, degree of vertical integration, historical responses to industry developments, and other factors. Marketing management often finds it necessary to invest in research to collect the data required to perform accurate marketing analysis.

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6. FUNCTION OF MARKETING DEPARTMENT

Marketing is defined as the process of determining the needs and wants of Consumers and being able to deliver products that satisfy those needs and wants. Marketing includes all of the activities necessary to move a product from the producer to the consumer. Think of marketing as a bridge from the producer to the consumer

Marketing starts with market research, a learning process in which marketers get to know everything they can about the needs and wants of consumers, and it ends when somebody buys something. Many companies feel that services provided to customers after the purchase also are an important part of marketing. All of these enterprises -- production, advertising, transportation, processing, packaging, and selling -- are included in the marketing process.

THE NINE FUNCTIONS OF MARKETING

In order for the marketing bridge to work correctly -- providing consumers with opportunities to purchase the products and services they need -- the marketing process must accomplish nine important functions.

The functions are:

Buying - people have the opportunity to buy products that they want.

Selling - producers function within a free market to sell products to consumers.

Financing - banks and other financial institutions provide money for the production and marketing of products.

Storage - products must be stored and protect end until they are needed. This function is especially important for perishable products such as fruits and vegetables.

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Transportation -products must be physically relocated to the locations where Consumers can buy them. This is a very important function. Transportation includes rail road, ship, airplane, truck, and telecommunications for non-tangible products such as market information.

Processing - processing involves turning a raw product, like wheat; into something the consumer can use

Risk-Taking - insurance companies provide coverage to protect producers and marketers from loss due to fire, theft, or natural disasters.

Market Information - information from around the world about market conditions, weather, price movements, and political changes, can affect the marketing process. Market information is provided by all forms of telecommunication, such as television, the internet, and phone. Grading and Standardizing - Many products are graded in order to conform to Previously determined standards of quality

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6.1 Marketing strategy

Marketing Strategy Our marketing strategy is based on becoming the resource of choice for people looking for decorator fabrics, do-it-yourself, and buy-it-yourself resources to create a look in their home. Our marketing strategy is based on superior performance in the following areas:

Product selection. Product quality. Customer service. Our marketing strategy will create awareness, interest, and appeal from our target market

for what Interior Views offers our customers. Mission Interior Views LLC is a store for discerning, quality-conscious buyers of decorator fabrics and complementary home accessories and furniture. The store celebrates the home through the color and texture of fabric. The experience informs, inspires, and shows people how to transform their home into a unique and personalized expression of themselves. Interior Views seeks to encourage people to imagine what can be, and help make their vision a reality. Marketing Objectives 1. Maintain a gross margin of 45% each month. 2. Generate an average of 3. Experience a 1,000 of sales each business day each month.

5,000 increase in quarterly sales with each newsletter.

4. Realize an annual growth rate of approximately 25% in the year 2000. Financial Objectives 1. A growth rate in sales of 12% for the year 2000, to total in excess of revenues. 2. An average sales per business day (305 days per year) in excess of 1,000.
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341,200 in total

3. Reduce the existing credit line by a minimum of 26,400. Target Markets The target markets are separated into four segments; "Country Club Women," "Boomers in Transition," "Professional Youngsters" and "Home Builders." The primary marketing opportunity is selling to these well defined and accessible target market segments that focuses on investing discretionary income in these areas: Home Builders -- People in the building process, typically ranging in age from 40 to 60, are prime candidates for Interior Views. Positioning For the person creating a personalized and unique impression of her home, Interior Views is the best local source for selection and price points of the fabric, customer-oriented design services, and a variety of other home accessory and furniture products. Customers will be impressed with, and return for, the great in-stock selection, value-oriented pricing, and excellent customer service. Unlike Joanns, Warehouse Fabric, or catalogs, Interior Views is a pleasant and tasteful resource that encourages everyone in the process of decoration their home. Unlike employing an interior decorator, Interior Views allows the individual to participate in their design choices to the extent they choose, and realize greater value for the dollars they invest. Strategies The single objective is to position Interior Views as the premier source for home decorator fabrics in the Greater Boise area, commanding a majority of the market share within three years. The marketing strategy will seek to first create customer awareness regarding the products and services offered, develop that customer base, establish connections with targeted markets and work toward building customer loyalty and referrals.

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Interior Views' four main marketing strategies are: 1. Incr eased awareness and image. 2. Leveraging existing customer base. 3. Cross selling. 4. New home construction promotion. Strategy INCREASED AWARENESS and IMAGE - Informing those not yet aware of what Interior Views offers. Strategy LEVERAGING EXISTING CUSTOMER BASE - Our best sales in the future will come from our current customer base. Strategy CROSS SELLING - Increasing the average dollar amount per transaction. Strategy NEW HOME CONSTRUCTION PROMOTION - Connecting with people involved in the building process. Marketing Mix In brief, our marketing mix is comprised of these approaches to pricing, distribution, advertising and promotion, and customer service. Pricing -- A keystone pricing formula plus 3.00 will be applied for most fabrics. The goal is to have price points within 5% of the list price of Calico Corners' retail prices. This insures competitive pricing and strong margins. Distribution -- All product is distributed through the retail store. The store does receive phone orders from established customers and we will be developing a website.

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Customer Service -- Excellent, personalized, fun, one-of-a-kind customer service is essential. This is perhaps the only attribute that cannot be duplicated by any competitor. Product Marketing Our products enable our customers to experience support, gather ideas and options, and accomplish their decoration goals. They will be able to create a look that is truly unique to their home. They will not be able to do this in the same way through any other resource. Price Product pricing is based on offering high value to our customers compared to most price points in the market. Value is determined based on the best quality available, convenience, and timeliness in acquiring the product. We will consistently be below the price points offered through interior designers and consistently above prices offered through the warehouse/seconds retail stores, but we will offer better quality and selection.

Promotion The most successful advertising and promotion has been through the following:

Newspaper Advertisements - Boise Herald. Television Advertisements - "Martha Stewart" and "Interior Motives" television shows.
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Quarterly Newsletter and Postcard - A direct mail, 4-page newsletter distributed to the customer mailing list generated from people completing the "register" sign up in the store. The mailing list now totals more than 4,300 people.

In Store Classes - "How to" classes, most of which are free, have been successful because of the traffic and sales they generate after the class. Typically 90 minutes in length and most held on Saturday, these are the most popular classes:
o o o

"Pillow Talk" - Pillow fabrication. "Speaking of Slip Covers" - Slip cover presentation and discussion. "Shades of the Season" - Window treatment options with fabric.

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6.2Pricing strategies
Competition-based pricing Setting the price based upon prices of the similar competitor products. Competitive pricing is based on three types of competitive product:

Products have lasting distinctiveness from competitor's product. Here we can assume
o o o

The product has low price elasticity. The product has low cross elasticity. The demand of the product will rise.

Products have perishable distinctiveness from competitor's product, assuming the product features are medium distinctiveness.

Products have little distinctiveness from competitor's product. assuming that:

o o o

The product has high price elasticity. The product has some cross elasticity. No expectation that demand of the product will rise.

Cost-plus pricing Cost-plus pricing is the simplest pricing method. The firm calculates the cost of producing the product and adds on a percentage (profit) to that price to give the selling price. This method although simple has two flaws; it takes no account of demand and there is no way of determining if potential customers will purchase the product at the calculated price. This appears in 2 forms, Full cost pricing which takes into consideration both variable and fixed costs and adds a % markup. The other is Direct cost pricing which is variable costs plus a % markup, the latter is only used in periods of high competition as this method usually leads to a loss in the long run.

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Limit pricing A limit price is the price set by a monopolist to discourage economic entry into a market, and is illegal in many countries. The limit price is the price that the entrant would face upon entering as long as the incumbent firm did not decrease output. The limit price is often lower than the average cost of production or just low enough to make entering not profitable. The quantity produced by the incumbent firm to act as a deterrent to entry is usually larger than would be optimal for a monopolist, but might still produce higher economic profits than would be earned under perfect competition. The problem with limit pricing as strategic behavior is that once the entrant has entered the market, the quantity used as a threat to deter entry is no longer the incumbent firm's best response. This means that for limit pricing to be an effective deterrent to entry, the threat must in some way be made credible. A way to achieve this is for the incumbent firm to constrain itself to produce a certain quantity whether entry occurs or not. An example of this would be if the firm signed a union contract to employ a certain (high) level of labor for a long period of time. Market-oriented pricing Setting a price based upon analysis and research compiled from the targeted market. Penetration pricing The price is deliberately set at low level to gain customer's interest and establishing a foot-hold in the market. Price discrimination Setting a different price for the same product in different segments to the market. For example, this can be for different ages or for different opening times, such as cinema tickets.

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Premium pricing Premium pricing is the practice of keeping the price of a product or service artificially high in order to encourage favorable perceptions among buyers, based solely on the price. The practice is intended to exploit the (not necessarily justifiable) tendency for buyers to assume that expensive items enjoy an exceptional reputation or represent exceptional quality and distinction. Predatory pricing Aggressive pricing intended to drive out competitors from a market. It is illegal in some places. Contribution margin-based pricing Contribution margin-based pricing maximizes the profit derived from an individual product, based on the difference between the product's price and variable costs (the product's contribution margin per unit), and on ones assumptions regarding the relationship between the products price and the number of units that can be sold at that price. The product's contribution to total firm profit (i.e., to operating income) is maximized when a price is chosen that maximizes the following: (contribution margin per unit) X (number of units sold). Psychological pricing Pricing designed to have a positive psychological impact. For example, selling a product at 3.95 or 3.99, rather than 4.

Dynamic pricing A flexible pricing mechanism made possible by advances in information technology, and employed mostly by Internet based companies. By responding to market fluctuations or large amounts of data gathered from customers - ranging from where they live to what they buy to how much they have spent on past purchases - dynamic pricing allows online companies to adjust the prices of identical goods to correspond to a customers willingness to pay. The airline industry is often cited as a dynamic pricing success story. In fact, it employs the technique so
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artfully that most of the passengers on any given airplane have paid different ticket prices for the same flight. Price leadership An observation made of oligopic business behavior in which one company, usually the dominant competitor among several, leads the way in determining prices, the others soon following. Target pricing Pricing method whereby the selling price of a product is calculated to produce a particular rate of return on investment for a specific volume of production. The target pricing method is used most often by public utilities, like electric and gas companies, and companies whose capital investment is high, like automobile manufacturers. Target pricing is not useful for companies whose capital investment is low because, according to this formula, the selling price will be understated. Also the target pricing method is not keyed to the demand for the product, and if the entire volume is not sold, a company might sustain an overall budgetary loss on the product. Absorption pricing Method of pricing in which all costs are recovered. The price of the product includes the variable cost of each item plus a proportionate amount of the fixed costs. A form of cost plus pricing High-low pricing Method of pricing for and organization where the goods or services offered by the organization are regularly priced high in market comparison, but through promotions, advertisements, and or coupons, lower prices are offered. The lower promotional prices are targeted to bring customers to the organization where the customer is offered the promotional product as well as the regular higher priced products.
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Marginal-cost pricing In business, the practice of setting the price of a product to equal the extra cost of producing an extra unit of output. By this policy, a producer charges, for each product unit sold, only the addition to total cost resulting from materials and direct labor. Businesses often set prices close to marginal cost during periods of poor sales. If, for example, an item has a marginal cost of 1.00 and a normal selling price is 2.00, the firm selling the item might wish to lower

the price to

1.10 if demand has waned. The business would choose this approach because the

incremental profit of 10 cents from the transaction is better than no sale at all

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7.Success and failure of different products of the organization in the market along with reasons
Innovation is a change in the thought process for doing something or "new stuff that is made useful". It may refer to an incremental emergent or radical and revolutionary changes in thinking, products, processes, or organizations. Following Schumpeter (1998), contributors to the scholarly literature on innovation typically distinguish between invention, an idea made manifest, and innovation, ideas applied successfully in practice.In economics the change must increase value, customer value, or producer value. The goal of innovation is positive change, to make someone or something better. Innovation leading to increased productivity is the fundamental source of increasing wealth in an economy. Innovation is an important topic in the study of economics, business, entrepreneurship, design, technology, sociology, and engineering. Colloquially, the word "innovation" is often synonymous with the output of the process. However, economists tend to focus on the process itself, from the origination of an idea to its transformation into something useful, to its implementation; and on the system within which the process of innovation unfolds. Since innovation is also considered a major driver of the economy, especially when it leads to new product categories or increasing productivity, the factors that lead to innovation are also considered to be critical to policy makers. In particular, followers of innovation economics stress using public policy to spur innovation and growth. Those who are directly responsible for application of the innovation are often called pioneers in their field, whether they are individuals or organizations.

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Introduction

The neutrality of this section is disputed. Please see the discussion on the talk page. Please do not remove this message until the dispute is resolved. (May 2008) In the organizational context, innovation may be linked to performance and growth through improvements in efficiency, productivity, quality, competitive positioning, market share, etc. All organizations can innovate, including for example hospitals, universities, and local governments. While innovation typically adds value, innovation may also have a negative or destructive effect as new developments clear away or change old organizational forms and practices. Organizations that do not innovate effectively may be destroyed by those that do. Hence innovation typically involves risk. A key challenge in innovation is maintaining a balance between process and product innovations where process innovations tend to involve a business model which may develop shareholder satisfaction through improved efficiencies while product innovations develop customer support however at the risk of costly R&D that can erode shareholder return. Innovation can be described as the result of some amount of time and effort into researching an idea, plus some larger amount of time and effort into developing this idea, plus some very large amount of time and effort into commercializing this idea into a market place with customers. Innovation has been studied in a variety of contexts, including in relation to technology, commerce, social systems, economic development, and policy construction. There are, therefore, naturally a wide range of approaches to conceptualizing innovation in the scholarly literature. Distinguishing from invention Invention is the embodiment of something new. While both invention and innovation have "uniqueness" implications, innovation also carries an undertone of profitability and market performance expectation.

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An improvement on an existing form or embodiment, composition or processes might be an invention, an innovation, both or neither if it is not substantial enough. According to certain business literature , an idea, a change or an improvement is only an innovation when it is put to use and effectively causes a social or commercial reorganization. In business, innovation can be easily distinguished from invention. Invention is the conversion of cash into ideas. Innovation is the conversion of ideas into cash. This is best described by comparing Thomas Edison with Nikola Tesla. Thomas Edison was an innovator because he made money from his ideas. Nikola Tesla was an inventor. Tesla spent money to create his inventions but was unable to monetize them. Innovators produce, market and profit from their innovations. Inventors may or may not profit from their work. In organizations A convenient definition of innovation from an organizational perspective is given by Lucke and Katz (2003), who wrote: "Innovation . . . is generally understood as the successful introduction of a new thing or method . . . Innovation is the embodiment, combination, or synthesis of knowledge in original, relevant, valued new products, processes, or services. A content analysis on the term "innovation" carried out by Baregheh et al. (2009) within the organizational context, defines innovation as: "Innovation is the multi-stage process whereby organizations transform ideas into new/improved products, service or processes, in order to advance, compete and differentiate themselves successfully in their marketplace. Innovation typically involves creativity, but is not identical to it: innovation involves acting on the creative ideas to make some specific and tangible difference in the domain in which the innovation occurs. For example, Amabile et al. (1996) propose: "All innovation begins with creative ideas . . . We define innovation as the successful implementation of creative ideas within an organization. In this view, creativity by individuals
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and teams is a starting point for innovation; the first is necessary but not sufficient condition for the second". For innovation to occur, something more than the generation of a creative idea or insight is required: the insight must be put into action to make a genuine difference, resulting for example in new or altered business processes within the organization, or changes in the products and services provided. "Innovation, like many business functions, is a management process that requires specific tools, rules, and discipline." From this point of view emphasis is moved from the introduction of specific novel and useful ideas to the general organizational processes and procedures for generating, considering, and acting on such insights leading to significant organizational improvements in terms of improved or new business products, services, or internal processes. Through these varieties of viewpoints, creativity is typically seen as the basis for innovation, and innovation as the successful implementation of creative ideas within an organization. It should be noted, however, that the term 'innovation' is used by many authors rather interchangeably with the term 'creativity' when discussing individual and organizational creative activity. Economic conceptions Joseph Schumpeter defined economic innovation in "Theorie der Wirtschaftlichen Entwicklung" (1912). (The Theory of Economic Development, 1934, Harvard University Press, Boston.) 1. The introduction of a new good that is one with which consumers are not yet familiar or of a new quality of a good. 2. The introduction of a new method of production, which need by no means be founded upon a discovery scientifically new, and can also exist in a new way of handling a commodity commercially.

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3. The opening of a new market, that is a market into which the particular branch of manufacture of the country in question has not previously entered, whether or not this market has existed before. 4. The conquest of a new source of supply of raw materials or half-manufactured goods, again irrespective of whether this source already exists or whether it has first to be created. 5. The carrying out of the new organization of any industry, like the creation of a monopoly position (for example through trustification) or the breaking up of a monopoly position Schumpeter's focus on innovation is reflected in Neo-Schumpeterian economics, developed by such scholars as Christopher Freeman and Giovanni Dosi. Innovation is also studied by economists in a variety of other contexts, for example in theories of entrepreneurship or in Paul Romer's New Growth Theory. In network theory, innovation can be seen as "a new element introduced in the network which changes, even if momentarily, the costs of transactions between at least two actors, elements or nodes, in the network". Market outcome Market outcome from innovation can be studied from different lenses. The industrial organizational approach of market characterization according to the degree of competitive pressure and the consequent modelling of firm behavior often using sophisticated game theoretic tools, while permitting mathematical modelling, has shifted the ground away from the usual understanding of markets. The earlier visual framework in economics, of market demand and supply along price and quantity dimensions, has given way to powerful mathematical models which though intellectually satisfying has led policy makers and managers groping for more intuitive and less theoretical analyses to which they can relate to at a practical level. In the management (strategy) From an academic point of view, there is often a divorce between industrial organisation theory and strategic management models. While many economists view management models as being too simplistic, strategic management consultants perceive academic economists as being too theoretical, and the analytical tools that they devise as too complex for managers to understand.
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Innovation literature while rich in typologies and descriptions of innovation dynamics is mostly technology focused. Most research on innovation has been devoted to the process (technological) of innovation, or has otherwise taken a how to (innovate) approach. Goals This section does not cite any references or sources. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (May 2010) Programs of organizational innovation are typically tightly linked to organizational goals and objectives, to the business plan, and to market competitive positioning. One driver for innovation programs in corporations is to achieve growth objectives. As Davila et al. (2006) note, "Companies cannot grow through cost reduction and reengineering alone... Innovation is the key element in providing aggressive top-line growth, and for increasing bottom-line results" In general, business organisations spend a significant amount of their turnover on innovation, such as making changes to their established products, processes and services. The amount of investment can vary from as low as a half a percent of turnover for organisations with a low rate of change to anything over twenty percent of turnover for organisations with a high rate of change. The average investment across all types of organizations is four percent. For an organisation with a turnover of one billion currency units, this would represent an investment of forty million units. This budget will typically be spread across various functions including marketing, product design, information systems, manufacturing systems and quality assurance. The investment may vary by industry and by market positioning. One survey across a large number of manufacturing and services organisations found, ranked in decreasing order of popularity, that systematic programs of organizational innovation are most frequently driven by: 1. Improved quality 2. Creation of new markets
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3. Extension of the product range 4. Reduced labour costs 5. Improved production processes 6. Reduced materials 7. Reduced environmental damage 8. Replacement of products/services 9. Reduced energy consumption 10. Conformance to regulations These goals vary between improvements to products, processes and services and dispel a popular myth that innovation deals mainly with new product development. Most of the goals could apply to any organisation be it a manufacturing facility, marketing firm, hospital or local government. Whether innovation goals are successfully achieved or otherwise depends greatly on the environment prevailing in the firm.

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7.1 Major competitors of the organization

Interior Design Interior design concerns itself with more than just the visual or ambient enhancement of an interior space; it seeks to optimize and harmonize the uses to which the built environment will be put. Thus, in the words it is "practical, aesthetic, and conducive to intended purposes, such as raising productivity, selling merchandise, or improving life style." Interior design is a practice that responds to changes in the economy, organization, technology, demographics, and business goals of an organization. As a human activity, interior design is centuries old. As a coherent profession identified by the label "interior designer," it is relatively recent. Many experts trace its beginnings to the early 20th century and the rise of interior decoration as a career separate from architecture. In the early decades, this practice focused largely on the residential arena. By the 1940s, the terms "interior design" and "interior designer" were used primarily by those individuals providing services to a small but growing number of business clients. After World War II, nonresidential designoffices, hotels, retail establishments, and schoolsgrew in importance as the country rebounded economically. Interior design is generally divided into two categories, residential and contract or commercial. Today, interior design is becoming increasingly specialized as buildings and materials get more complex technologically and regulations and standards more demanding. The first national professional organization for interior designers, The American Institute of Interior Decorators (later, the American Institute of Interior Designers), was founded in 1931, and a second, the National Society of Interior Designers, in 1957. But it was not until the 1960s and 70s that independent organizations were established to assess qualifications for designers and design programs, thereby putting in place the cornerstones of the profession; standards for education, experience, and examination. These are the Interior Design Educators Council, the Foundation for Interior Design Education Research, and the National Council for Interior Design Qualification. In 1975, AID and NSID merged to form the American Society of Interior Designers. The International Interior Design

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Association was founded in 1994. Efforts to bring about statutory licensing of interior designers, variously through title or practice acts, also began in the 1960s. In 1982, Alabama became the first state to enact legislation for the regulation of interior design. Today, 25 states and jurisdictions have adopted some form of regulation for interior design. Description A . Professional Definition Interior design is a multi-faceted profession in which creative and technical solutions are applied within a structure to achieve a built interior environment that solves the customer's problems and links space to business strategies and goals. These solutions are functional, enhance the quality of life and culture of the occupants, and are aesthetically attractive. Designs are created in response to and coordinated with the building shell, and acknowledge the physical location and social context of the project. Designs must adhere to code and regulatory requirements, and encourage the principles of environmental sustainability. Interior design can also influence the choice of real estate that will address the organization's needs through the architecture and design elements. The interior design process follows a systematic and coordinated methodology, including research, analysis, and integration of knowledge into the creative process, whereby the needs and resources of the client are satisfied to produce an interior space that fulfills the project goals. Interior design includes a scope of services performed by a professional design practitioner, qualified by means of education, experience and examination, to protect and enhance the life, health, safety, and welfare of the public. For the full definition, consult the National Council for Interior Design Qualification. B. Professional Role in the "Whole Building" Design Process The interior design professional is extremely important in the "whole building" design process and should be contracted at the onset of the project, referred to as the pre-design phase or programming phase, with the other major disciplines, key stakeholders, client, and end-user contacts. The interior designer needs to work closely with the client to understand their business
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and space needs. This can be thought of as strategic programming. It should occur at the same time as the building program is conducted. By assisting the organization in understanding its needs, as well as analyzing and recommending ways to link the organization's mission, business, and work processes to an intelligent workplace and space strategy, the interior designer adds value to the client's organization and real estate. Excellent communication with the key members of the team helps define the challenges and each team member's expectations to ensure a successful project. The interior designer must communicate the intent or project plan and what "whole building" systems and architecture can be explored to meet client expectations. Thus, an integrated team approach is important, and the coordination and collaboration of all disciplines is essential to a successful solution. C. Professional Strategies for Achieving Relevant Design Objectives It really takes a team to get smarter solutions. Organize the team at the onset of the project. Include the building manager and most importantly a qualified design team with key disciplines and construction manager at the onset. The interior designer should no longer receive a plan from the architect to perform space planning, materials, and furniture selection. The basic principles of a workplace can address and include the following criteria and thus the need for all disciplines to work as a team. These are U.S. General Service Administration (GSA) principles or "hallmarks" for their workplace.

A typical workstation layout involves corner orientation.

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Image courtesy of Haworth, from Better Lighting and Daylighting Solutions (2005, American Society of Interior Designers) Healthy: Create a clean, environmentally sustainable workspace with good acoustics, lighting, and air quality. Security and Safety: Create the workplace in such a way that physically protects the occupants and assets from man-made and natural hazards. Comfort: Distribute workplace services, systems, and components that allow occupants to adjust thermal, lighting, acoustics, and furniture systems to meet personal and group comfort levels. Reliability: Support the workplace with efficient, state-of-the-art heating, ventilating, airconditioning (HVAC) systems, and equipment that require little maintenance, minimal loss of service, and less energy. Flexibility to address the client's goals are varied and can include: o Under floor access to all workspace services o Maximum user control of the work environment o Mobile furniture and technology o Building utilities that are everywhere, reconfigurable, and expandable o Alternate work places, hoteling, teleworking, etc. o Diverse work settings for diverse work and workforce Brand or Image: The work environment is one medium of communicating an organization's principles to internal and external customers. Branding creates a sense of pride and commitment to the organization and its stakeholders. Equity Fairness: The workspace is designed for function and provides all users with daylight, privacy, outside views, and personalized workspace in an aesthetically pleasing manner. Technological Connectivity: Enables full communication and simultaneous access to data among and distributed to coworkers both on and off-site including teleworking, hoteling, etc., and has built-in capacity and flexibility to adapt to future technologies. D. Relationship of Interior Design to Involved Building Systems

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A more advantageous workstation layout includes office orientation and glazing. Image courtesy of Haworth, from Better Lighting and Daylighting Solutions (2005, American Society of Interior Designers)

E. The Effects of Whole Building on the Interior Design Profession are Very Positive Requires recognition by the building industry that the interior design profession is critical in workplace problem solving. Creates more career opportunities for interior designers utilizing creative and business skills. Requires continuous education for the designer--both formal and informal. Requires awareness of the factors that exist that impact customer's organization: the global view, the business arena, demographics, technology, economics, changing nature of work, competition, etc. Creates need for interior design professionals to be knowledgeable in sustainable design and LEED accredited. Requires excellent communication skills to coordinate, collaborate, and guide the client, and contribute to the team's solutions. In some cases, the senior designer leads the effort. Thus, an experienced designer has career opportunities as a strategic consultant, change agent, environmental expert, communication consultant, project manager, workplace researcher, writer, speaker, and brand consultant; in addition to doing the creative space planning and specifying finishes, materials, furniture, etc.

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The benefits to the client can be enormous. The costs of projects can be reduced when all members are working from the beginning and coordinating information. Schedules can be tightened. This brings value to the client and accolades to the team. Emerging Issues Change is a given in the dynamic business arena, and interior design professionals must help clients adapt to change. Thus, the designer needs to be knowledgeable of the customer's business needs, competition, and values. Recent developments and research indicate a strong correlation between the quality of workplace design and worker productivity. Private sector corporations are using workplace design to attract and retain a talented, high performing workforce. Sustainable design and energy conservation is a goal for government agencies and others to reduce negative impact on the natural environment by the built environment. Sustainability is driving design decisions more frequently. The cost of moving associates is reduced with flexible work environments. It requires less work downtime, and reduces first cost. The consideration of life-cycle costing versus first-time costs can enhance user satisfaction, and reduce costs over the long term while providing a more productive work environment. Balancing the demographics of the workspace is challenging. Preparing for the departure of the baby boomers is daunting. Addressing the motivations and work habits of the new generation is critical. There are a minimum of four generations in the workforce with diverse motivations and drivers. Image and branding workspace expresses the principles of an organization and creates opportunities of dedication and connectivity of its associates. This is also a tool to attract and retain talent (e.g., cities are positioning to attract young professionals in order to revive the local brain trusts and economies). Population growth and education levels are rising faster in emerging economies than in established ones, thus shifting labor pools.

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 Ease of mobility and other demographic forces are creating new worker demands for quality of life improvements that intelligent employers can leverage to attract and retain high performing employees. Telework, hoteling, and diverse work settings are now considered. Flattening the levels of an organization increases communication speed. Increased market competition is amplifying the need for and advantages of differentiation, innovation, and strategic direction. The workplace properly designed can increase and reward strategic and innovative ideas. Ongoing issues will continue to impact the interior designer's performance and way of doing business Technology will continue to impact the complexity and individualization of interior design education for both faculty and students. Every student will own a laptop computer and have advanced computer capabilities. Instructional delivery systems (e.g., Blackboard) will continue to expand the use of electronic research, multi-media presentations, and distance education. Design processes will integrate high-tech solutions and presentations for design projects and include virtual imaging and experiential spaces. Ongoing technological improvements will force education to partner with the professional community in cost sharing of high-tech equipment, software, and resources.

7.2 Future prospects of the organization

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Opportunities for an interior designer Who is an Interior Designer? Just like a sculptor gives shape to clay, carves and moulds it, an interior designer defines space to give it meaning, achieves harmony and lends it aura. An interior designer works with space. Interior designing is an art of planning and arranging different elements of an interior so as to convey the twin aims of beauty and utility. The three basic principles of interior design are

Colour Scale Proportion.

As an interior designer, one could work in a wide range of settings, commercial and residential. Within these two broad categories, you could further specialize for example in designing restaurants, hospitals, hotels, etc. Area of specialization Interior Designing Interior Designers have technical knowledge of buildings and structures. They are trained to plan interior spaces, ventilation, electrical circuits and installations, drainage and water supply, air conditioning and heating systems. Interior Decorators Interior Decorators suggest use of colour, textures, fabrics and decorative materials and light effects. They also give advise on layout and furniture in creating an attractive and functional interior. Theatre and Set Designers

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Theatre and Set Designers work on stage decor and also for film and TV sets. In film and TV, the chief designer is often called the art director who briefs the carpenters, lighting technicians, set dressers and decorators. Exhibition Designers Exhibition design begins with planning entire exhibition sites to designing individual stands, display panels to project an image within the exhibition itself. Window Display Designers Window display designers - shop window of a typical shop to a special occasion driven decor, for example Diwali displays. Landscaping and designing based on Vaastu / Fengshui principles are other emerging fields an interior designer can explore. Nature of Work Interior Designing is emerging as the most sought after and lucrative profession in urban India. With the demand to create more working space increasing and with more and more people realizing the need and importance of professional designers, interior designing as a profession has come to be recognized in our country . Apart from the fact that it generates a good remuneration, its popularity lies in the glamour and recognition it provides. But on the other hand it is also a very demanding and challenging profession. Interior designers have to be extremely creative and innovative to constantly come up with new ideas and themes. For example in set designing one needs to give a new look to the same space for various studio shoots. The pressure also lies in the fact that international standards have to be matched. Knowledge of the various options available and the source are essential to make an informed decision. Meeting deadlines, working on many projects at the same time, making presentation to prospective clients, are all part of the profile of an interior designer.

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Courses and Eligibility Undergraduate courses in Interior Design offer both degrees and diplomas. The duration of these courses ranges from 1 to 5 years. There are also a number of Advanced courses and short-term Certificate courses being offered by a number of reputed universities and institutes. Institutes like the National Institute of Design, Ahmedabad also offer extensive courses Eligibility criterion for students aspiring to join interior designing courses is 10+2 in preferably the science stream (PCM) with 60% marks and a flair for sketching. Most institutes and universities conduct an entrance test for admitting students. The training provided by these institutes is both theoretical and practical. Basic design, architecture, materials, acoustics etc are all taught in these courses. Personal Attributes Interior Designers need to have visual sensitivity apart from creativity imagination and an aesthetic colour sense. Awareness of latest trends and up to date knowledge of the latest styles and tastes is extremely essential to survive and grow in this field. A good hand at sketching and drawing is an added advantage as it enables the designer to express ideas in sketches. A sense of lighting and decoration is also essential. An interior designer/decorator should be good at communicating his or her ideas to others. A good working knowledge of architecture helps too. Since interiors are an extension of one's personality, an interior designer has to essentially be a peoples person. Designers need to understand attitudes, lifestyles and cultural preferences, and take all three into account in their designs. In addition, they have to keep in mind the hobbies and habits and lets not forget the budget (good taste need not necessarily be expensive) of the person they are designing for.

Job Prospects

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Work with established interior design organization, in architects firm or consultancy firms

Work with builders and constructors Design consultants with hotels, hospitals Shopping arcade Furniture stores Design studios

Institutes Some of the major institutes offering courses in interior designing are:

Amity Institute of Design Centre for Environmental Planning and Technology (CEPT), Ahmedabad SNDT Womens University, Mumbai School of Interior Design and Institute of Environmental Design, Gujarat-4yrs Exterior - Interiors, New Delhi (in collaboration with Jensen & Nicholson and Computer Aided Design by Edit Institute, Mumbai) Apeejay Institute of Design, New Delhi National Institute of Design, Ahmedabad J. J. School of Arts, Mumbai

South Delhi Polytechnics and vocational training schools in most cities conduct short - term courses in interior design. Future Prospects An internship with a design firm is an excellent way to build your skills. It is also an opportunity to demonstrate your talent and make job contacts. You could then work with interior design organizations, as a consultant, with builders or contractors. After gaining the initial experience and industry knowledge, you can start your own independent interior designing business.

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Opportunities are aplenty in architects firms or in consultancy companies. Private business is a very lucrative option. One also needs to be extremely dedicated about keeping commitments. To be successful in private practice, one also needs to have a native business sense.

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8.CONCLUSION
This study reveals the general idea about 91-STUDIO INDUSTRIES, Analy estate First the organizational chart of the company shows the concentration given by the company in all the business-undertaking areas. We can also see how work is allocated in a systematic and organized manner to the employees of the various departments. The Purchase Department plays a vital and unique role as this department carefully handles the distribution of material at the right time, right quality, right quantity and reasonable price. It is seen that the Production Department is given importance as it has all the essential elements like man, material, capital, information and energy incorporated in for the achievement of the enterprise. In the Planning Department, it draws plans for the raw material requirements. The main raw material is the yarn. The count of each year varies. Depending on the order and size the yarn is rolled into the main beam. Further on in the Warping Department, the beam is fitted in and it goes through a set of processes. They are done so that the tea becomes strong and infe, due to RTR it retains a particular quality and then according to the order it is rolled into the machines which separates the quality of teas. Once the inspection is over the woven material is wound into rolls of 100 meters and then packed. The rolled teas is stored in the go down for dispatch. Finance is the lifeblood of a business enterprise. During the life of a business enterprise there are financial events that receive considerable attention. The financial function of any business enterprise tries to maximize the value of that business to its owners. The VAALPARAI RUBBER INDUSTRIES is consistently following the accrual method of accounting of its income and expenditure. The turnover is satisfactory but the profitability ratio, proprietary ratio and operating ratio are not favorable. The companies that buy the material in the local market are TATA and WOODBRIAR "The company has taken into consideration the environment at a large scale. It has an Effluent Treatment Plant which separate the effluent that are left out as a result of the wet processing before letting it out into the ground. Therefore VAALPARAI RUBBER INDUSTRIES has been certified ISO 14001 for accomplishing environmental protection.
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9.BIBLIOGRAPHY INDUSTRIAL ENGINEERING AND MANAGEMENT -

Dr.O.P.KHANNA

PERSONNEL MANAGEMENT -

C.B.MEMORIA

PRINCIPLES OF MARKETING -

S.KATHIRESAN

Dr.V.RADHA

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