Business Plan for Niche Interiors - Research Paper Example

? Niche Interiors-Business Plan al Affiliation Niche Interiors-Business Plan Marketing Analysis The Interior Design Industry The interior design industry has witnessed tremendous growth over the last decades. This is particularly so in Canada, where the industry has grown tremendously in the past few years. The growth is partly attributable to the strengthening of the economy and the increasing number of homeowners who seek interior designers to beautify and charm their homes. Winchip (2012) noted that people increasingly understand that a house is not just a matter of building. Instead, a house should look as charming as possible. This is achievable by seeking the services of interior designers. Service Canada (2013) report indicates that, last year alone, residential interior designers based in the greater Ontario region generated about $5 million in sales. According to the report, Oakville generated 80% of all the sales generated in the greater Ontario region last year. Economists predict a possibility of the residential interior design market in the greater Ontario region registering at least 10% increase in sale revenue. The increase is attributable to the strengthening of Canada’s economy coupled with the increase in the number of homeowners in the greater Ontario region. Niche Interiors intends to capitalize on this projected increase in demand for the services of interior designers. The firm also positions itself to take advantage of the changes in the interior design market, and expects to become a household brand in Ontario and the country at large. In addition, the firm also aims to capitalize on every little opportunity to become a profitable entity in the interior design industry in Ontario and its environs. Market Trend The market for interior design is huge and continues to grow. Canada’s interior design market is estimated to worth over $7 billion annually (Service Canada, 2013). At the same time, experts predict the market to grow significantly in the coming years. The growth of the interior design industry is attributable mainly to the increase in commercial, residential and hotel spaces (Winchip, 2012). The growth is also attributable to the increase in baby boomers that needs bigger houses capable of accommodating a large family. This is creating a huge demand for new residential houses in the major cities in the country. In addition, the growth is due to the increase in population in the major cities. In fact, the population of Canada’s major cities is projected to increase significantly in the coming years. This implies that additional residential houses will have to be built to accommodate the rising population. This offers market for interior designers in the country. Research also indicates that the market for interior design is likely to grow due to the increasing demand from the existing residential houses that require beautification. Currently, major towns such as Ontario, Toronto and Hamilton experiences huge demand for interior designers for the existing homes, according to Tangaz (2006). This increase in demand certainly offers a good opportunity for Niche Interiors. Target Market The first segments that Niche Interiors intends to serve are the new home constructions. Oakville is one of the fastest growing towns in Ontario. As such, new residential buildings are increasingly coming up to accommodate the rising population. These residential buildings will ultimately require the services of interior designers to do the finishing by creating beauty and ambience in the house. As such, Niche Interiors has positioned itself to compete with other interior design firms in Ontario for the interior design opportunities linked with new residential home constructions that are coming up in the area. The firm also intends to work as a contracted consulting with architectures in strategic planning, lighting, master planning, and carpet and floor design. Niche Interiors also target to design the interiors of existing residential houses in the greater Ontario region. Analysis of the residential houses in Oakville and other major cities in Canada, such as Toronto and Hamilton, shows that the demand for interior design services for the existing houses are likely to increase in the coming years. Most of the existing residential houses in these major cities require proper finishing by interior designers, according to Piotrowski (2013). This offers a great opportunity for the Niche Interiors. In fact, Niche Interiors intends to control all aspects of the interior designs of the existing residential homes. Niche Interiors also intends to target the remodeling projects in the greater Ontario regions. The firm intends to target remodeling projects since it has some features similar to new residential home constructions. In this regard, the Niche Interiors intends to work as a consultant with the architectures of the projects. However, the firm can also take a greater authority over everything pertaining to the project. The segmentation of the Niche Interiors’ client is done according to the following geographic, psychographic, demographic, and behavioral factors: Geographic The targeted geographic market for Niche Interiors is the residential homes within Oakville, Ontario, with a population of about 182,520 residents, according to the 2011 census report (Statistics Canada, 2012). However, Niche Interiors will also intend to expand its reach to other major cities in Canada, including Toronto and Hamilton. Demographic Niche Interiors’ total market population is approximately 100, 000 based on the following demographics: Total number of people who are married and have children Have children but do not stay at home Age range of 30 to 60 years at an average of 45 years A combined household earning of more than $150,000 The following is known about the profile of typical resident of Oakville and the greater Ontario: 87,395 people are employed Among the employed, 45,720 are male, while 41,675 are female. 4,895 people are jobless 71, 685 people fall within the age group of 35 to 60 years. Psychographics Niche Interiors intends to target clients with the following characteristics: The appearance of their home is important Entertaining and showing off their home in valuable Those who perceive themselves to be tasteful, creative and of high social status Behavior Those who take pride in beautifying their homes Those who view Niche Interiors intends to offer its clients the chance to build a home environment that shows their status. The firm has a wealth of experience and resources to enable it accomplish its objectives. Competitive Analysis Competition for residential designers in Oakville and the greater Ontario is very strong. This offers the greatest threat to Niche Interiors. This is attributable to the fact that, to become relevant, the firm will have to overcome the stiff competition from rival firms in the residential interior designs. According to the Yellow Pages (2012) report, Oakville city has more than 100 interior design firms, most of which focus residential design. Some of the major Regina Sturrock Design, Laurie Lynett Designs, Mirror Interiors, Barnard & Spaziale designs and DLW Design, just to name but a few. Apart from the competition expected from interior designers, Niche Interiors also expects to receive strong competition from decorators that have also increased significantly in Oakville as published in the yellow pages. Despite the stiff competition expected from rival firms, Niche Interiors expects to provide its client with quality services and a relatively lower cost than the prices charged by its competitors in the market. Marketing Strategy Niche Interiors understands that the market it intends to venture in has many competitors to beat. However, this is only possible through the development of an effective marketing strategy. To achieve this, Niche Interiors will adopt a marketing strategy that involves creating awareness of the existence of the firm in Oakville, Ontario. The awareness will be created through aggressive promotion of the firm’s products and services via commercial adverts. In this regard, the firm intends to explore the television, radio, and the internet in marketing its product. We also intend to use billboards, which the firm will position at vantage positions along major streets in Oakville. In addition, Niche Interiors will organize road shows in Oakville as a means of promoting its products. The company also intends to make its product as appealing to clients as possible. The company intends to achieve this by making the best designs in the entire country. In addition, we intend to attract clients to the firm by charging a price that is relatively lower than that charged by the company’s competitors. Conclusion Based on the firm’s analysis of the interior design market, it becomes apparent that the company will benefit from the market growth expected in the coming years. As the population continues to grow in Canada’s major cities, such as Oakville, Toronto, and Hamilton, additional residential houses will be needed that will require the services of interior decorators. In this regard, Niche Interiors projects that it will capitalize on the growth of the market to make huge profits. However, the company also understands that competition is one of its greatest challenges in the interior design industry. This is attributable to the fact that the industry has many companies as has been reported in Oakville where the firm will be based. However, Niche Interiors believes that it will be able to gain competitive advantage by initiative a strong marketing strategy that includes strong promotion, as well as offering competitive prices for its interior design services. References Piotrowski, C. M. (2013). Professional practice for interior designers. Upper Saddle River, NJ: John Wiley & Sons. Service Canada (2013). Interior designers. Retrieved from http://www.servicecanada.gc.ca/eng/qc/job_futures/statistics/5242.shtml. Statistics Canada (2012). Focus on geography series, 2011 census. Retrieved from http://www12.statcan.gc.ca/census-recensement/2011/as-sa/fogs-spg/Facts-csd-eng.cfm?LANG=Eng&GK=CSD&GC=3524001. Tangaz, T. (2006). Interior design course. Toronto: Thames & Hudson. Winchip, S. M. (2012). Professional practice for interior designers in the global marketplace. New York, NY: Bloomsbury Academic. Yellow Pages (2012). Businesses for interior designers, Oakville, ON. Retrieved from http://www.yellowpages.ca/search/si/1/Interior+Designers/Oakville+ON. Read More