Strategy & Planning

Market & business analysis

Who are the buyers:

Interieur design shops

Interior designer (social media approach)
Bars, Restaurants & Hotels (HoReCa)
Particular clients

Who are the sellers

Shops (we supply)

Ourselves (face-to-face & social media)

Intermediaries

No. Maybe in a later stage.

How is the competition in your future profession?

There is a very high competition in the interior design business. Mainly due to the
mainstreamness of the products. However, we are offering a product made out of unique
material which hasnt been used before or at least not in big scale. Further this material is not
really known in the Belgian market therefore we consider this as one of the strongest selling
points.

Who are the competitors?

Our direct competitors are based in The Netherlands. Regarding to our specific products, we
havent seen any direct competitor in terms of this specific material in Belgian shops or
webshops.
However, the competition is very high regarding products designs (candleholder, lamps).

What are the entrant-barriers that apply to your situation?

Lack of experience
Lack of network
Lack of knowledge about the sector in general
Lack of knowledge about the business
Time (we work full-time)
Finances
etc

How could you tackle them?

Gaining experience by trial & error principle. This principle will be applied to less potential
clients and only during the first month(s).
Social media, contacting people engaged (in)directly in the business, word-to-mouth
marketing, follow up of events regarding interior design
Get in touch with the production & product, get to know more about the craftwork, get in
touch with people, learn to understand the costs, quality and prices,
 First experience in the business, the learning curve needs to be really high. To achieve this, we
should take notes of all details from the start.
We are working full-time during the week. However, we are planning to work at least 2-3 days
a week (after work) and surely in the weekend(s) full-time.
There is a big shortage of finances, however we are counting to take the risk . Furthermore,
we are also counting on our networks in Egypt to get the best price possible.

Competitive market strategies

AIM
LOW COST UNIQUE PRODUCT

Cost leadership Differentiation

strategy strategy
BROAD

Differentiation focus
Cost focus strategy
NARROW
MARKET

(or niche) strategy

Which generic marketing strategy would be suitable for your product(s)

Since we are offering a product made of a unique material and handmade, our main focus lies
on differentiation strategy
Thus, by promoting our product as exclusive (handmade), we target niche (exclusive) shops
who offer similar products for interior purposes
Position in the market

POSITIVE NEGATIVE

Strengths Weaknesses

Positive energy Unknown material

Confidence Unexperienced
New in the market
First opportunity
INTERNAL

Opportunities Threats

Chance to boom Competition

Become mainstream Expensive products
No or lack of competition about the Unknown
material of the product Unexperienced
EXTERNAL

No big investment

Which combinations of those internal and external factors give useful strategies?

The positive energy, confidence and new products in the market combined by lack of competition
about the product and no big investment, will create a good opportunity for the product to become a
hype, initially regarding to candle holder and later with other products.

Commercial plan
What are the products and services you want to offer?

We want to offer new products for the interior of houses and other places. These products are going
to consist of unique designs and materials, handmade from Egyptian craftsmen based on our designs
which is a mix between modern and ancient designs.

How will you produce them?

The products will be produced in Egypt based on a combination of existing design adding a personal
touch to it. We will try to grab the leadership in selling the products made of alabaster in Europe and
elsewhere.

How about your finances?

We plan to spend a little money from of our savings. The products will be paid upon delivery in Belgium.
We calculate a cost between 3000-4000 in the first stage, including, products, all administrative
procedures, marketing and other things.
How will you distribute them?

The products will be imported from Egypt to Belgium by ship. The distribution of the products to the
client will be our main and the most important task. There will be no cost in distribution since we have
a company car and a fuel card.

How will you market them?

Mainly through a selling agent (us) and through social media (possible influenceres) marketing and
approaches to possible buyers.

How will you deal with after sales service and complaints?

After each delivery, there will be a quality check with the client in house. This to ensure that all the
products delivered are in a perfect condition. They have to sign an acceptance document where they
declare that everything that has been delivered was in perfect condition.

Budgeting
There are different kinds of costs to consider:

Direct vs. indirect costs

= can the cost be attributed to a specific product / service / action?

Direct cost consist of mainly the production cost, transportation, storage, administrative tasks and
marketing.

Indirect cost consists of unforeseen cost such as lost products, taxes, client service, unexpected
competition.

Variable vs. fixed costs

= how does the cost behave in function of the output?

Indirect and fixed costs are called overhead costs: they are not specifically attributed and dont go up
or down when changing your output.

Try to keep your overhead costs limited!

Risk for price calculation

Unique Selling Proposition (USP)
Analyze your position in key areas that motivate customers' behavior and buying decision:

Price

Price might be considered a hinder since we are opting for a higher price category.

Convenience

It can be used for decoration, light and candle holder. Comparing to other similar products, our
products can adapt in different styles/conditions

Quality / Reliability

This is one of our strongest points. We will have handmade quality products near perfection. The
quality of alabaster as shown on Egyptian tombs, can withstand many centuries.

Prestige

Its prestige dates back to Egyptian Pharaohs. Hence there is no doubt that having alabaster in your
home distinguishes you from mainstream products and therefore gives you a feeling of prestige.

Friendliness

Although fragile, it is very small, practical and suitable in different settings/contexts.

Customer service

Our clients will deal with particular clients although we will supply 4-eyes principle when it comes to
quality check upon delivery.

Design

Designs will be simple and unique. We will apply standard design per production beginning with
square, cylinder, round, etc.

Innovation

In Belgian markets, this product might be considered as innovative, that its the only marble in the
world which is translucent.

Distribution

The distribution will be mainly on Saturdays, during the week we will deal with other appointments;
We have the company car and fuel card for the distribution and are reliable and flexible when needed.

Include your personality, what could be your unique personal touch in the market?

TBD
KEY QUESTIONS
Why should I do business with you instead of anyone else?

We are the only supplier of alabaster in Belgium who guarantee handmade quality. In addition, we are
engaged in a social project which tends to improve not only the working conditions of our partners in
Egypt but also the educational level of them and their families. Furthermore, by doing business with
us, you take care that a centuries old artisanal and authenticity will not disappear, in contrary it will
secure its existence for the coming years and decenniums.

What can your product or service do for me that others can't?

Did someone else offer you translucent marble? Well I dont think so, thats why my products will give
exclusivity to your shop. Besides the fact that you already have unique products, my products will
surely be an added value to your stock. Furthermore, you can launch out a marketing campaign
offering unique and exclusive products. So, briefly, my product will increase your prestige as a
specialized shop even more.

What can you guarantee me that no one else can guarantee?

Besides the fact that I can guarantee you the uniqueness of the products, I also guarantee you the
exclusivity within this area. I can also guarantee you a centuries old product back into market, designed
to nowadays peoples preferences (modern touch). You will have a special story for your customers.

1. Analyze your position in key areas that motivate customers' behavior and buying decision

2. Compare with your peers / market: in what areas can you make the difference or find a niche
and what could be your personal touch?

3. Answer to essential customers questions

4. Formulate your own USP

Negotiating

Know you BATNA (Best Alternative To a Negotiated Agreement)

Our BATNA will be 80-150 % profit from every single product. We can not accept to go below 80 %
profit. Then we have no BATNA from our side. Of course, when targeting a possible client, we will
surely try to get the highest BATNA. However, while negotiating, we are open to decrease the
maximum BATNA but still staying strong behind our maximum BATNA. Dependently on the amount of
products that a client might buy, our BATNA can be higher or lower.

BATNA is your primary source for power: a strong BATNA will give you a better position in the
negotiation and will make you less likely accept a poor deal. Basically you can walk away from the
negotiation if you dont get better then your BATNA.

How can you make your BATNA stronger (and gain power)?

Talk to more than one party (dont ask one supplier, contact more)

Find alternatives

Be well informed
 Find coalitions (work together with others in making a deal, other party will less likely say no,
otherwise he loses more people or a group instead of one person)

How can you weaken the BATNA of the other party (and reduce their power)?

Position your own strengths and benefits against their alternatives

Create doubt about the value of their alternatives

So you can break them down, but it is better to strengthen your own position.

In general you will want the other party to make a first proposal, especially if you have a weak BATNA
you will want to hide your BATNA as long as possible. Maybe their price might surprise you and be
more than what you expected.

If you have a strong BATNA, you can use your power and say your price first (e.g. your stretch price).
This can work especially in situations where the value is unsure for the other party. In that situation
there is something like price anchoring meaning that a first price on the table will have tendency to
anchor the other party to that price as a guideline to the value.

Information is power

Your best deal is close to the others partys BATNA, so you will want to find out what that BATNA is.
Try to find questions to gain information about the other partys BATNA (and dont give away yours).
So ask many wise questions about the other party.

Take your time to get to know the other party, avoid your own favorite topics (that will make you talk
to much), ask many questions and listen. The best negotiators are not those who are good at
convincing others, but those who are good at asking questions, gather information and analyze the
other partys position and interest.

Exercise

1. Describe an item, artwork, service you want to sell, e.g. from your previous exercise on Pricing

2. What is your BATNA? How could you make it stronger?

3. What key questions could give you more information on the buyers BATNA?

4. What arguments would you use to weaken the buyers BATNA?

5. How could you get to an interest-based deal; enlarge the pie?

6. What negotiation tools would you use, and how (be specific)?
 80 %

150 %

100 - 120 %
Negotiating a price

Both parties have a BATNA

e.g. the person wanting to buy your painting can buy another nice work form an equally promising
artist for 2,000. That persons BATNA will be 2,000, meaning that if your price will be higher than
2,000 there will be no deal.