Poppi Designs, an importer of Italian furniture in New York, is Poppi Designs. Over 10 years ago, the business was founded in New York. Since then, there have been many changes to its business strategy. The refined model is to import a wide range of Italian furniture and sell primarily to designers and unfinished furniture retail stores. The company has two principals, Kate Jackson located in N.Y., and Luca de Febonio located in Rome, Italy.
The Concept
Poppi is aware that the market for quality furniture can be very competitive. This is why they will focus their efforts on niches. They also recognize the importance of avoiding the big furniture superstores by focusing on remote areas. Poppi Designs will have full control over the import process by leveraging Luca’’s expertise in Italy. Poppi Design will have Luca in Italy as both the principal and agent.
Poppi Designs has three keys for success. The first is to build a relationship of high quality and high value with its vendors. A second key is to make sure that their products are delivered on time. Reliable administration is the last requirement for success.
Poppi was set up to be a home-based company with additional warehouse space. This will allow for the most cost-effective arrangement while still providing the required support and service.
The Market
Poppi Designs will target 3 market segments. Their primary market segment is specialty retailers, which makes up around 80%. This segment is growing at 2% and there are 16 potential customers. Poppi will reduce their dependency on this niche by focusing its marketing efforts. This market is more competitive and Poppi will target targeted marketing to increase their reach. The second is designers. They also enjoy a 2% growth rate and have 44 potential customers. The final targeted niche is the unfinished furniture retailer, with a potential 50 participant market and growing at 2%.
The market is less about brand equity and more about the actual product and the service provider. It is very important to the customer to touch and feel the product. The salesperson plays an important role in the transaction. These realities are beneficial to Poppi as they can pick and choose from a variety of manufacturers instead of being able to sell products from only known companies.
The Marketing Strategy
The sales strategy relies on direct sales calls to all market segments, except interior designers. Kate Jackson is the owner and must make the sales calls based on her expertise and knowledge of competitors and the products. Experience has shown that more time is spent on sales leads to more sales. A full-time team member needs to be found and added as soon as possible. Kate’s main task of selling is being diverted from her time by this person.
Poppi Designs with its well-focused business plan will reach profitability by month two. Based on conservative forecasts, sales could almost double between years one and three. The net profits will be proportional.
1.1 Objectives
Poppi Designs aims to:
- To put in place adequate, and reliable, administrative machinery, allowing the owner to spend her time selling and maintaining major accounts.
- Poppi’s efforts will be concentrated on certain market sectors that have been identified as promising.
- To improve the reliability and timeliness of shipments from Italy.
1.2 Mission
Poppi’s mission is to provide chairs and other furniture items in niche markets that are not served by large domestic manufacturers. Poppi Designs’ owner uses her interior design experience, her knowledge in furniture retail, and her connections in Italy to customize her products for these market niches.
1.3 Keys To Success
Poppi Designs’s key to success are:
- Offering products of high quality and value that aren’t available anywhere else. This is important for maintaining the niche market segments mentioned in our mission statement.
- Reliable, timely delivery. Poppi must deliver on its promises. Poppi must keep its promises due to the fact that it does business in Italy. This requires long-term planning, including consideration of Italian holidays and business practices.
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