Interior Decorator Sample Marketing Plan - UK | Retail | Strategic Management

Interior Views Ltd Marketing Plan

This sample business plan was created using Marketing Plan Pro® 9.0 UK-Edition— marketing planning software published by Palo Alto Software. This plan may be edited using Marketing Plan Pro and is one of 70+ sample plans available from within the software. To learn more about Marketing Plan Pro and other planning products for small and medium sized businesses, visit us at www.paloalto.co.uk.

This is a sample marketing plan and the names, locations and numbers may have been changed, and substantial portions of the original plan text may have been omitted to preserve confidentiality and proprietary information. You are welcome to use this plan as a starting point to create your own, but you do not have permission to reproduce, publish, distribute or even copy this plan as it exists here. Requests for reprints, academic use, and other dissemination of this sample plan should be emailed to the marketing department of Palo Alto Software at marketing@paloalto.co.uk. For product information visit our Website: www.paloalto.co.uk or call: +44 (0) 845 351 9924.

Copyright © Palo Alto Software Ltd

1998-2006

All rights reserved.

Confidentiality Agreement

The undersigned reader acknowledges that the information provided by _______________ in this marketing plan is confidential; therefore, reader agrees not to disclose it without the express written permission of _______________. It is acknowledged by reader that information to be furnished in this marketing plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to _______________. Upon request, this document is to be immediately returned to _______________. ___________________ Signature ___________________ Name (typed or printed) ___________________ Date This is a marketing plan.

Table of Contents
1.0 2.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Situation Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1 Market Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2 The Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2.1 Market Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2.2 Market Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2.3 Market Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2.4 Macroenvironment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3 The Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3.1 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3.2 Product Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3.3 Positioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3.4 SWOT Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3.4. Strengths . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3.4. Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3.4. Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3.4. Threats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3.5 Historical Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4 Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4.1 Direct Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4.2 Indirect Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1 Value Proposition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2 Critical Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3 Financial Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.4 Marketing Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.5 Target Market Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.6 Messaging . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.6.1 Branding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.7 Strategy Pyramids . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Marketing Mix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.1 Product Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2 Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.3 Promotion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.3.1 Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.3.2 Public Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.3.3 Direct Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.4 Web Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.4.1 Website Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.4.2 Website Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.4.3 Development Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.5 Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.6 Implementation Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Financials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.1 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.2 Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.2.1 Sales by Fabric Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.2.2 Sales by Consignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.2.3 Sales by Sub-lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.3 Expense Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.3.1 Expense by Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.3.2 Expense by Fixtures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 2 2 4 5 6 6 6 7 7 8 8 8 8 9 9 9 9 12 12 12 13 13 13 13 14 14 14 18 18 18 18 19 19 20 21 22 22 23 25 26 26 27 28 29 30 31 32 33 34

3.0

4.0

5.0

Table of Contents
5.4 5.5 6.0 5.3.3 Expense by Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Linking Expenses to Strategy and Tactics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Contribution Margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 37 37 38 39 39 39 40

Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.1 Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.2 Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.3 Market Research Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.4 Contingency Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.5 CRM Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interior Views-UK Marketing Plan
1.0 Executive Summary
Interior Views is a home acessories shop specialising in fabrics and complementary services, and is based in Richmond, Surrey. This destination store offers the advantages of providing fabrics specifically designed for home decorator use in fabric widths of 54 inches and greater. Over 900 fabrics are available on the floor at any time with more than 3,000 sample fabrics for custom "cut" orders. Customers see, touch, feel, and take the fabric to their home as they work through their purchase decision. Market research indicates a specific and growing need in the area for the products and services Interior Views offers in the market it serves. The market strategy will be based on a cost effective approach to reach this clearly defined target market. The three-phase approach will utilise resources to create awareness of the store and encourage customers to benefit from the convenience and services it offers. Interior Views will focus on its selection, accessibility of product, design services, and competitive pricing. The marketing objective is to actively support continued growth and profitability through effective implementation of the strategy.

2.0 Situation Analysis
Interior Views is a retail store heading into its third year of operation. The store has been well received, and marketing is now critical to its continued success and future profitability. The store offers the most extensive selection of in-stock decorator fabrics as well as a resource for special ordered fabrics. The basic market need is to offer a good selection of decorator fabrics at reasonable prices, for the "do-it-yourself" and the "buy-it-yourself" customers, through a personalised retail store that offers excellent service, design assistance, and inspiration for people to redecorate their homes.

2.1 Market Needs
Interior Views is providing its customers the opportunity to create a home environment to express who they are. They have the choice to select their fabric and go whatever direction they choose -- to fabric it themselves or have it done for them. They have the opportunity 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. We seek to fulfil the following benefits that we know are important to our customers.

• Selection - A wide choice of current and tasteful decorator fabrics. • Accessibility - The buyer can walk out of the store with the fabric they need to begin their project. • Customer Design Services - Employees have a design background to make them a resource for the customer. This enables customers to benefit from suggestions regarding the selection of their fabric and related products in a manner to complement their design choice. • Competitive Pricing - All products will be competitively priced in comparison to stores in the London market (best price comparison) and other channels of distribution, such as catalogue sales.

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Interior Views-UK Marketing Plan
2.2 The Market
We possess good information about our market and know a great deal about the common attributes of our most prized and loyal customers. We will leverage this information to better understand who we serve, their specific needs, and how we can better communicate with them.
Table: Market Analysis Market Analysis 2006 Potential Customers Housewives Middle-aged Couples Young Professionals Do-It-Yourselfers Total Growth 25% 20% 18% 12% 21.48% 73,500 28,500 23,000 18,000 143,000 2007 91,875 34,200 27,140 20,160 173,375 2008 114,844 41,040 32,025 22,579 210,488 2009 143,555 49,248 37,790 25,288 255,881 2010 179,444 59,098 44,592 28,323 311,457 CAGR 25.00% 20.00% 18.00% 12.00% 21.48%

Market Analysis (Pie)

Housewives Middle-aged Couples Young Professionals Do-It-Yourselfers

2.2.1 Market Demographics
The profile of the Interior Views customer consists of the following geographic, demographic, psychographic, and behaviour factors: Geographics • Our immediate geographic market is the Richmond area, with a population of 200,000. • A 50-mile geographic area is in need of our products and services. • The total London area population is estimated at 7.5 million. Demographics • Female. www.paloalto.co.uk Copyright © Palo Alto Software Ltd 1998-2006 All rights reserved. page 2

Interior Views-UK Marketing Plan
• • • • • • • Married. Have children, but not necessarily at home. Have attended college. A combined annual income in excess of £50,000. Age range of 35 to 55 years, with a median age of 42. Owns their home, townhouse and/or flat valued at over £250,000. If they work out of the home, it's by choice in a professional/business setting.

We know the following regarding the profile of the typical resident of Richmond: • • • • • • • 67% 23% 40% 24% 53% 65% 56% have lived in Richmond for 7 years or more. are between the ages of 35 and 44. have completed some college. are managers, professionals and/or owners of a business. are married. have no children living at home. own their residence.

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 decorating ideas and choices. • She reads one or more of the following magazines: • Elle Decoration • Hello • Home • Grazia • OK • Country Homes & Interiors • Metropolitan Home • BBC Good Homes • Ideal Home • Country Living • House & Home. Behaviours • She takes pride in having an active role in decorating their home. • Her home is a form of communicating "who she is" to others. • Comparisons within social groups are made on an ongoing basis, but rarely discussed.
Table: Market Demographics Market Demographics Market Segments Housewives Middle-aged Couples Young Professionals Do-It-Yourselfers Age 35-60 50-60 25-35 30-45 Annual Income 80000 Varies 50000 60000 Average Sale High High Moderate High Focus Social and High Profile Time and Security Image and Climbing Image and Security

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Interior Views-UK Marketing Plan
2.2.2 Market Trends
The home textile market, considered to include sheets, towels, draperies, carpets, blankets, and upholstery, accounts for 37% of all textile output. Trade publications estimate the size of the UK home textiles market at the wholesale level, excluding carpets, to be £1.6 billion annually. The industry is expected to realise a steady increase over the next few years. The industry is driven by the number of "household formations" which is expected to continue through the new few years. This is primarily due to the solid growth in the number of singleparent and non-family households. This growth also comes from post-war middle-aged families needing bigger houses to accommodate growing and extended families and, as people get older, they are buying homes rather than renting to realise tax and equity building benefits. Favourable mortgage rates will also enable others to invest in their existing home. The "do-it-yourself" (DIY) market continues to grow and closely parallels the professional home-improvement market. DIY market growth is attributed to an increased presence of products, the personal satisfaction experienced, and the cost savings customers realise. A portion of the do-it-yourself market is the "buy-it-yourself" (BIY) market. Consumers are buying the product and arranging for someone else to do the fabrication and/or installation. This is more expensive then the do-it-yourself approach, but less costly than buying finished products from other sources. It also provides similar feelings of creativity, pride, and individuality associated with direct creative involvement. This sense of "participation" in home decorating is an important factor for many of these committed customers.

Market Analysis (Trends)
180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 2006 2007 2008 2009 2010

Housewives Middle-aged Couples Young Professionals Do-It-Yourselfers

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Interior Views-UK Marketing Plan
2.2.3 Market Growth
The number of UK households is projected to grow between 16% and 23% between 1995 and the year 2000. Of the households comprised of people from 35 to 44 years old, almost half are married couples with children under the age of 18. Based on research households in the 45 to 65 age range were estimated to grow substantially by the year 2000. These households will increase another 32% by 2010 as post-war middle-agers add to this peak-earning and spending age group. With approximately 56.2% of the nation's dwellings built before 1960, many of these homeowners are also expected to update. These factors contribute to an increased need for home decorator fabrics for window treatment, upholstering, pillows, bedding, and other fabric accessory needs. This demand is expected to be complemented by the growth in the Richmond market. The majority of homeowners spend a large percentage of their disposable income on home goods within two years after buying a new house or flat. Therefore, positive trends in housing activity represents growth and opportunity for home textiles. One important factor is that married couples in the 35 to 65 age range represent a growth segment and enjoy larger incomes than other family structures. They enjoy the choice to spend their disposable income on life's amenities. They may demonstrate "cocooning" by making their home a more comfortable and attractive haven. They choose to spend resources here rather than on holidays and other discretionary options. This group represents a larger sub-segment of the target market.

Market Analysis (C.A.G.R)
25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

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Interior Views-UK Marketing Plan
2.2.4 Macroenvironment
The following trends and issues impact the success of Interior Views. • National economic health -- The store does better when the country experiences "good times" regardless of its direct impact on the local economy. Sales decrease when the stock market falls. An upbeat economic report from government ministers correlates with an increase in sales. • New home and remodeling construction activity -- More closely related to what is taking place in our local economy, new home construction and major remodeling activity of existing structures has a significant impact on sales across all product lines. • Shifts in design trends -- Major changes in design trends increase sales. The Richmond market lags behind contemporary design trends by 6 to 12 months. This offers a buying advantage for the store, offering a preview of what is coming and how we should adjust our in-stock offerings.

2.3 The Company
Interior Views is a home accessories shop specialising in decorator fabrics and complementary products and services. This destination store offers the advantages of providing fabrics specifically designed for home decorator use in fabric widths of 54 inches and greater. Over 900 fabrics are available on the floor at any time with more than 3,000 sample fabrics for custom "cut" orders. Customers see, touch, feel, and take the fabric to their home as they work through their purchase decision. Judy Wilson, the owner, is the one primarily responsible for marketing activities. This is in addition to her other responsibilities, and she does depend on some outside resources for mailing and some graphic design work. Judy does delegate responsibilities to Julie Hanson to assist with radio advertising. Julie and the other staff members are also responsible for at least one special event throughout the year.

2.3.1 Mission
Interior Views Ltd is a store for discerning, quality-conscious buyers of decorator fabrics and complementary home accessories and furniture. The store celebrates the home through the colour and texture of fabric. The experience informs, inspires, and shows people how to transform their house or flat into a unique and personalised expression of themselves. Interior Views seeks to encourage people to imagine what can be, and help make their vision a reality.

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Interior Views-UK Marketing Plan
2.3.2 Product Offering
Our primary points of differentiation offer these qualities: • The most extensive access to in-stock, first quality decorator fabrics within 100 miles of our primary geographic market and offered at affordable prices. • The largest selection of special-order fabrics, with arrangements to have most of those products shipped to the store within 10 days of placing the order. • Personal assistance from a design-oriented staff that is qualified and capable of meeting the needs of discerning customers with high expectations. • Complementary product offering, including hard-covering window treatment, hardware, home accessories, made-to-order upholstered furniture, and antiques that are designed, selected, and displayed in a way to emphasise the use of fabric in home design. Interior Views will qualify for the most attractive retail discount through these suppliers, offering greater profit margins and more competitive pricing for bolt purchases in quantities of 50 to 60 yards, or in half of that yardage with a "cutting fee" that increases cost per yard by an average of 50 pence. The primary product lines will include fabrics from the following textile sources: • • • • • • • Robert Allen Fabrics Fabricut Waverly Fabrics Spectrum Art Mark Covington P/Kaufmann

Complementary accessories, including fabric trims, drapery hardware, and hard-covering window treatments, are supplied from the following sources: • • • • • • Hunter Douglas -- Hard-window coverings Kirsh -- Rods and selected window hardware and accessories Conso -- Trims and Fabric Accessories Petersen-Arne -- Trims and Accessories Graber -- Selected window hardware Grumman -- Threads

2.3.3 Positioning
For the person creating a personalised 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 other retail competitors, or catalogues, Interior Views is a pleasant and tasteful resource that encourages everyone in the process of decorating their home. Unlike employing an interior decorator, Interior Views allows the individual to participate in their design choices to the extent they choose, and realise greater value for the money they invest.

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Interior Views-UK Marketing Plan
2.3.4 SWOT Summary
The following SWOT analysis captures the key strengths and weaknesses within the company, and describes the opportunities and threats facing Interior Views.

2.3.4.1 Strengths
• Strong relationships with suppliers that offer credit arrangements, flexibility, and response to special product requirements. • Excellent and stable staff, offering personalised customer service. • Inviting retail space that offers flexibility with a positive and attractive atmosphere. • Strong merchandising and product presentation. • Good referral relationships with complementary vendors, local estate agents, and some designers. • In-store complementary products through "The Window Seat" and "Antique Bureau" add interest, stability and revenue. • High customer loyalty among repeat and high-pound purchase customers.

2.3.4.2 Weaknesses
• • • • • Access to capital. Cash flow continues to be unpredictable. Owners are still climbing the "retail experience curve." Location is not in a heavily travelled, traditional retail area. Challenges of the seasonality of the business.

2.3.4.3 Opportunities
• Growing market with a significant percentage of our target market still not knowing we exist. • Continuing opportunity through strategic alliances for referrals and marketing activities. • Benefiting from high levels of new home construction. • Changes in design trends can initiate updating and therefore sales. • Increasing sales opportunities beyond our "100-mile" target area. • Internet potential for selling products to other markets.

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Interior Views-UK Marketing Plan
2.3.4.4 Threats
• Competition from a national store; or a store with greater financing or product resources could enter the market. • Catalogue resources and Internet e-tailers are aggressively priced with comparable products. • Continued price pressure, reducing contribution margins. • Dramatic changes in design, including fabric colours and styles, creates obsolete or less profitable stock.

2.3.5 Historical Results
The following tables shows estimated industry revenue as well as estimated market share, expenses and net margin for Interior Views.
Table: Historical Data Historical Data Variable Industry Revenue Company Market Share Company Revenue Industry Variable Costs Company Variable Costs Industry Gross Contribution Margin Company Gross Contribution Margin Marketing Expenses Company Net Contribution Margin 2003 £1,305,000 11% £143,550 £717,750 £78,953 £587,250 £64,597 £1,150 £63,447 2004 £1,650,000 12% £198,000 £750,000 £90,000 £900,000 £108,000 £12,560 £95,440 2005 £2,062,500 13% £257,813 £1,179,750 £147,505 £882,750 £110,308 £15,920 £94,388

2.4 Competition
Competition in the area of decorator fabric comes from three general categories: traditional fabric retail stores, catalogue and Internet sales and discounters. The other local fabric retailers are direct competition, but we have seen strong indirect competition from catalogue/ Internet sales and discounters.

2.4.1 Direct Competition
Retail Stores Current local competition includes the following: • Store A -- 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 Discounter B -- 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 customer service with what many "upper end" customers consider to be an "undesirable" shopping environment. www.paloalto.co.uk Copyright © Palo Alto Software Ltd 1998-2006 All rights reserved. page 9

Interior Views-UK Marketing Plan
• Store C -- Nationwide chain with strong buying power. They have a broad fabric selection for clothing with a limited number of in-store decorator fabrics available. Their primary target markets are the clothing seamstress, with an increasing emphasis on craft items. • Interior Designers -- 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 customer is often two to four times higher than the price per yard from Interior Views. • Internet Providers -- Fabric sales over the Internet are in a growth trend 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.
Table: Growth and Share Analysis Growth and Share Competitor Store A Warehouse Discounter B Store C Interior Designers Combined Interior Views Average Total Price £80 £75 £80 £205 £135 £115.00 £575.00 Growth Rate 5% 8% 6% 12% 25% 11.20% 56.00% Market Share 18% 23% 16% 25% 29% 22.20% 111.00%

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Interior Views-UK Marketing Plan
Table: Competitive Analysis Competitive Analysis Competitor Product and/or Service Quality Selection Price Other Location and Physical Appearance Visibility Convenience Factors Other Added Value Factors Pre and Post Sales Service Experience Expertise Reputation Image Stability Strategic Alliances Other Other Marketing Activities Established Sales Channels Advertising Post-purchase Support Incentives Loyalty Components Other Total #1 Store A Store A 7 6 5 0 Store A 8 6 0 Store A 5 4 6 2 3 0 0 0 Store A 6 6 4 4 6 0 78 #2 Discounter B Discounter B 8 7 8 0 Discounter B 7 6 0 Discounter B 4 4 5 8 3 0 0 0 Discounter B 6 7 4 5 5 0 87 #3 Store C Store C 6 3 2 0 Store C 8 6 0 Store C 5 4 6 6 3 0 0 0 Store C 4 4 8 2 2 0 69 #4 Interior Designers Interior Designers 2 1 2 0 Interior Designers 3 3 0 Interior Designers 8 7 9 8 6 0 0 0 Interior Designers 3 5 9 1 1 0 68 #5 Interior Views Interior Views 6 8 8 0 Interior Views 6 8 0 Interior Views 9 7 8 8 8 0 0 0 Interior Views 6 7 7 8 8 0 112

Competitor by Growth and Share

30% 25% 20% 15% 10% 5% 0% 30 40 50 60 70 80 90 100 110

Store A Warehouse Discounter B Store C Interior Designers - Combined Interior Views

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2.4.2 Indirect Competition
Catalogue Competitors An increasing level of competition is anticipated from catalogue sales. Recent trends, such as those demonstrated in the well established but evolving catalogue Aaaa Aaaa, indicates increased interest in offering decorator fabric, window designs, and other home decorating products through this increasingly popular channel of distribution. Catalogue sources do not offer customers the option to see, touch, and have the fabric in their homes. Price is the most significant competitive factor this product source presents. The most aggressive catalogue competitor is Bbbb Bbbb followed by Aaaa Aaaa and other home-accessory-based providers. Discounters Channels of distribution continue to shift in favour of discounters, who account for a significant portion of the growth in the industry. As consumers experience lower levels of disposable income, discounters leverage frequent store promotions to entice frugal, valueoriented consumers. One of the biggest criticism of discounters is their failure to offer a quality service experience and their failure to present inviting displays to promote sales. These discounters, along with specialty store chains, present one of the most severe competitive threats for individually-owned specialty stores. This is partially due to extensive promotional efforts, price advantages, and established relationships with their vendors. One example of these discounters is the "home improvement" chains, such as Cccc Cccc. This aggressive retailer has adopted a strategy to include complete decorator departments in their stores. Currently existing in the Manchester market, this strategy is anticipated to be introduced into the Birmingham area and other select markets within the year. Although the Richmond Cccc Cccc store sells basic curtain rod hardware and other hard cover window treatment, there are no known plans at this time for the Richmond Cccc Cccc store to implement this in the foreseeable future. This will be an important issue to monitor for competitive purposes.

3.0 Marketing Strategy
This plan will further Interior Views' financial and marketing objectives: Financial objectives: create sales growth of 12%, reduce existing credit line, and increase the average revenue amount per transaction Marketing objectives: increase visibility of store for potential customers, and better retain existing customers

3.1 Value Proposition
Interior Views sells more than fabric, we sell a personalised and unique vision for your home. Interior Views helps you revive your home and your living experience.

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3.2 Critical Issues
Interior Views is still in the "speculative" stage as a retail store. Its critical issues are: • Relatively slow annual sales growth. With admirable results through the first 30 months of operation, the market continues to hold promise, but, as learned through the first two years of operation, it is still smaller than what it should be to support a store of this kind. • Continue to take a fiscally-conservative approach; downsize when necessary and modify our business model based on market response.

3.3 Financial Objectives
1. 2. 3. A growth rate in sales of 12% for the year 2007, to total in excess of £341,200 in total revenues. An average sales per business day (305 days per year) in excess of £1,000. Reduce the existing credit line by a minimum of £26,400.

3.4 Marketing Objectives
1. 2. 3. 4. Maintain a gross margin of 45% each month. Generate an average of £1,000 of sales each business day each month. Experience a £5,000 increase in quarterly sales with each newsletter. Realise an annual growth rate of approximately 25% in the year 2008.

3.5 Target Market Strategy
The target markets are separated into four segments; "Housewives," "Middle-aged Couples," "Young Professionals" and "Do-It-Yourselfers." The primary marketing opportunity is selling to these well defined and accessible target market segments that focuses on investing discretionary income in these areas: Housewives -- The most dominant segment of the four is comprised of women in the age range of 35 to 50. They are married, have a combined income of greater than £80,000, own at least one house or flat, and are socially active at and away from home. They are members of one or more professional, social, or charitable organisations. They have discretionary income, and their home and how it looks is a priority. The appearance of where they live communicates who they are and what is important to them. Middle-aged Couples -- 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 refurbishing due to empty 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 decorating their home a close second. The woman of the couple is the decision maker, and often does not always include the husband in the selection or purchase process. Young Professionals -- Couples between the ages of 25 and 35 establishing their first www.paloalto.co.uk Copyright © Palo Alto Software Ltd 1998-2006 All rights reserved. page 13

Interior Views-UK Marketing Plan
"adult" household fall into this group. They both work, earn in excess of £50,000 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. Do-It-Yourselfers -- People in the building or remodeling process, typically ranging in age from 40 to 60, are prime candidates for Interior Views.

3.6 Messaging
Interior Views can help you create the personalised and unique vision you have for your home, with the best local source for fabric selection and price, customer-oriented design services, and a variety of other home accessory and furniture products. Revive your home today!

3.6.1 Branding
Our name is our brand. "Interior Views" represents our mission of celebrating the home through the colour and texture of fabric. The brand invokes the fact that the home should be a unique and personalised expression of the person living there. The home is a "view" of the home's owner. The word "view" also evokes the vision of what a house or flat owner wants their home to be. In addition to our name, our logo reflects the architectural quality of the work that we do. Our products are more than just decoration, they enhance and reflect the home itself.

Table: Target Market Messaging Target Market Messaging Market Segments Housewives Middle-aged Couples Young Professionals Do-It-Yourselfers Messaging Make your home new again It's time for a new look It's your first home - make it yours Presentation is everything

3.7 Strategy Pyramids
The single objective is to position Interior Views as the premier source for home decorator fabrics in Richmond and the surrounding 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. Interior Views' four main marketing strategies are: 1. 2. 3. 4. Increased awareness and image. Leveraging existing customer base. Cross selling. New home construction and remodeling promotion. Copyright © Palo Alto Software Ltd 1998-2006 All rights reserved. page 14

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The following Strategy Pyramid charts show the specific tactics and programmes to achieve each planned strategy.

Strategy Pyramid: Increase Awareness/Image
Increased Awareness and Image

Advertising

Radio Adverts

Magazine Adverts

Referral Generation

Estate agent "open house" promotions

Complementary vendor referrals Imperial Floors, Upholstery resources, "Design Time" Interior Organisation Relationships

Co-sponsor fund-raising activities

Hosting Events Luncheons, Teas, Evening events

Strategy Pyramid: Leveraging Existing Customer Base

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Leveraging Existing Customer Base

Newsletter

Sales promotions

Classes

Events

Customer Service Relationships (CRM)

Exceptional customer service in store

Follow-up contact

Personal shopper support

Additional Experiences

Classes

Demonstrations

Strategy Pyramid: Cross Selling

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Cross Selling

Internal

Additional sales of trims, notions, and accessories

Promoting sales of furniture; Chameleon and Scottie Mac lines

Sub-Lease Sales

Antiques through "Antique Bureau"

Accessories through "The Window Seat"

Strategy Pyramid: New Home Construction Promotion
New Home Construction & Remodeling Promotion

Connecting with "Suppliers"

Estate agent gift certificate programme

Builders design support services

Loan Officers gift certificate programme

Connecting with "Customers"

Subscription and use of "newcomers" report

Chamber of Commerce new members update

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4.0 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 Bbbb Bbbb's 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. Advertising and Promotion -- The most successful advertising has been through the Evening Standard and adverts on local radio. The quarterly newsletter has also proven to be an excellent method to connect with the existing customer base, now with a mailing list of 4,300 people. Customer Service -- Excellent, personalised, fun, one-of-a-kind customer service is essential. This is perhaps the only attribute that cannot be duplicated by any competitor.

4.1 Product Marketing
Our products enable our customers to experience support, gather ideas and options, and accomplish their decorating 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.

4.2 Pricing
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.

4.3 Promotion
Our most successful advertising and promotion in the past has been through the following: • Newspaper Advertisements - Evening Standard. • Radio Advertisements - "Capital FM" and "Virgin Radio". • 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: • "Pillow Talk" - Pillow fabrication. • "Speaking of Slip Covers" - Slip cover presentation and discussion. • "Shades of the Season" - Window treatment options with fabric. www.paloalto.co.uk Copyright © Palo Alto Software Ltd 1998-2006 All rights reserved. page 18

Interior Views-UK Marketing Plan

4.3.1 Advertising
Expand newspaper advertisements to surrounding towns, and buy two half-page ads every month. Continue radio adverts.
Table: Advertising Milestones Milestones Advertising Radio Campaign 1 Radio Campaign 2 Total Advertising Budget Start Date 1/1/2006 9/1/2006 End Date 7/28/2006 12/31/2007 Budget £780 £3,120 £3,900 Manager Julie Julie Department New New

Advertising Milestones

Radio Campaign 1

Radio Campaign 2

2006

2007

4.3.2 Public Relations
Our public relations plan is to pitch a twice-monthly column in the "Home" section of the local paper, covering our in-store classes, with profiles of our customers and their redecorated rooms. Readers will see how our classes directly relate to individual decorating projects.

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Table: PR Milestones Milestones PR Event: Estate Agent Promotion Event: Sunday League Event: For the Arts Event: Women's Institute Total PR Budget Start Date 2/1/2006 5/1/2006 9/1/2006 11/1/2006 End Date 2/28/2006 5/31/2006 9/30/2006 11/25/2006 Budget £400 £400 £400 £400 £1,600 Manager Julie Kandi Pat Jo Department Home Bldrs New New New

PR Milestones

Event: Estate Agent Promotion

Event: Sunday League

Event: For the Arts

Event: Women's Institute

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

4.3.3 Direct Marketing
Improve the quality of the newsletter, increase the number of one-time customers who sign up for it, and offer an email-newsletter option to catch the more tech-savvy customers.
Table: Direct Marketing Milestones Milestones Direct Marketing Newsletter Q1 Newsletter Q2 Newsletter Q3 Newsletter Q4 Postcard Total Direct Marketing Budget Start Date 12/1/2005 2/15/2006 6/1/2006 9/1/2006 11/15/2006 End Date 1/2/2006 3/15/2006 6/30/2006 9/30/2006 12/5/2006 Budget £1,350 £1,400 £1,450 £1,500 £750 £6,450 Manager Judy Judy Judy Judy Judy Department Existing Existing Existing Existing Existing

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Direct Marketing Milestones

Newsletter Q1

Newsletter Q2

Newsletter Q3

Newsletter Q4

Postcard

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

4.4 Web Plan
Interior Views is a home accessories shop specialising in decorator fabrics and complementary products and services. This destination store offers the advantages of providing fabrics specifically designed for home decorator use. Over 1,000 fabrics are available on the floor at any time with more than 8,000 sample fabrics for custom orders. The goal of this Web plan is to extend the reach of the store to others outside the area and add to the revenue base. Interior Views currently has a website but has not given it the attention or focus needed to assess its marketing potential. The site offers basic functions and we consider it to be a crude version of what we can imagine it will become through a site redesign that will produce revenue and enhance the image of the business. Market research indicates a specific and growing need in the area for the products and services Interior Views offers in the market it serves and there are indications that Internet sales will play an increasing role in connecting customers with sellers. The most significant challenge is that the core target customer, women between the ages of 35 and 50, are some of the least likely of groups to shop on the Web. Shopping for decorator fabric online presents an additional challenge. The Internet marketing objective is to actively support continued growth and profitability of Interior Views through effective implementation of the strategy. The online marketing and sales strategy will be based on a cost effective approach to reach additional customers over the Web to generate attention and revenue for the business. The Web target groups will include the more Web-savvy younger customer base that the store currently serves (women between the ages of 25 and 35) and out-of-area potential customers that are already shopping online for the products Interior Views offers. The website will focus on its selection, competitive pricing, and customer service to differentiate itself among other Internet options. Interior Views' website is for the person who wants her home to be an individual expression www.paloalto.co.uk Copyright © Palo Alto Software Ltd 1998-2006 All rights reserved. page 21

Interior Views-UK Marketing Plan
of who she is. Unlike other online fabric sites, Interior Views will provide these customers with first quality decorator fabric selections and complementary products to decorate their homes, as well as intelligent and helpful customer service and support for each sale. Interior Views is a pleasant and tasteful resource that encourages everyone in the process of decorating their home, allows the individual to participate in their design choices to the extent they choose, and offers greater value for the money they invest.

4.4.1 Website Goals
Our website will generate revenue through initiating product sales to the targeted audience that we would not have realised through the retail store. It will be measured on the basis of revenue generated each month compared to our stated objective. On a secondary basis, we will also measure and track traffic to the site and document what activities that traffic contributes to the other objectives of the site, including sales leads and information dissemination. Objectives • Increase revenues through Web-based sales by £2,400 per month with a 5% growth rate thereafter. • Enhancing "information channels" with the established customer base to provide additional options to receive information from the store. • Meet the needs of customers outside the immediate serving area through Web accessibility. Future Development The objectives of the site redesign will include: • Increased speed. • Enhanced navigation. • Additional products added to the decorator fabric selections including "Oval Office Iron" hardware and select home accessories.

4.4.2 Website Marketing Strategy
Our website strategy will be to reach these key groups listed in order of importance based on their expected use and purchases from the site. • Young Professionals - Expected to be the most likely of the targeted segments to use this resource because of their relatively high Internet use compared to the other segments. This group should offer the greatest online revenue opportunity. • Outsiders - Comprised of people outside the area with Internet access that have come in contact with the physical store or learned of it though a referral or promotion. This group, most commonly located in rural areas of the South West, are expected to be a small but faithful sector of buyers. • Online Fabric Shoppers - Most often find the site through search engines and these online decorator fabric shoppers are browsing multiple sites for a best buy or access to discontinued and hard-to-find fabric. They hold potential, but are typically the most work for the lowest return. • Internet Learners - Represents all of the targeted segments that are just beginning to become familiar with the site and will increase their use of the Internet over time. www.paloalto.co.uk Copyright © Palo Alto Software Ltd 1998-2006 All rights reserved. page 22

Interior Views-UK Marketing Plan
Revenue expectations from this group are low at this point and it is viewed as an investment in the future. The online strategy supports the objective to position Interior Views as a preferred source for home decorator fabrics on the Web as we maintain the position of being considered the premier source in the geographic area of the store. The online sales strategy seeks to first, inform visitors about the site, and create a positive awareness regarding the products offered; second, provide successful purchasing experiences, and establish connections with targeted markets; and third, work toward building customer loyalty and referrals. The online sales approach will accomplish these four objectives: 1. 2. 3. 4. Increased overall awareness and image. Meet the online interests and needs of the existing customer base. Expand the total out-of-area customer population. Exploit upsell and cross-sell opportunities.

Strategy No. 1 - Increasing Awareness and Image Informing those not yet aware of what Interior Views offers. • Search engine presence. • Leveraging the newsletter and mailing programmes. Strategy No. 2 - Leveraging Existing Internet-savvy Customers Our best sales in the future will come from our current customer base. • Newsletter information. • Web-only promotions. Strategy No. 3 - Upselling and Cross-selling Activities Increasing the average revenue amount per transaction. • Additional and complementary fabric. • Other product sales: • Additional sales of trims, notions, and accessories. • Promoting sales of furniture.

4.4.3 Development Requirements
Once we have determined the general look and navigation of the new site, we will accomplish the following tasks: • Define initial site layout and general design characteristics; • Fabric selection for site, and; • Product selection including decisions about "Oval Office Iron" and lighting products. Front End We currently have the basic elements of the site in place at www.fabric-online.co.uk. It possesses some of the functional components that we want to keep including: • • • • A URL that is not ideal, but tolerable. Identifiable home page. The ability to select and view the most popular fabrics. Newsletter access. Copyright © Palo Alto Software Ltd 1998-2006 All rights reserved. page 23

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Interior Views-UK Marketing Plan
• Contact information. A site redesign is desperately needed to attract additional traffic, support easier and quicker navigation, and hopefully result in increased sales. We are not satisfied with these components of the site: • Graphic design characteristics - the look and feel of the site is dated and "amateurish." • Speed - the site is slow in areas where we can speed the process. • Basic navigation through the site - a consistent method to move throughout the site. • The addition of other products including "Oval Office Iron" hardware and select home accessories. Back End Our back-end features should include the following: 1. 2. 3. Web hosting with 98% uptime through the local provider. Statistics to determine page views, unique users, banner impressions, sponsorship impressions and clickthroughs. The ability to enable visitors to gain easy access to product information, visuals, newsletter information, and a robust email system.

Resource Requirements The site has been, and will continue to be, supported through a local Internet provider and the consultant that we have been working with. We have found that experience to be relatively economical and he has been highly responsive to our need. Employees do not have the expertise to do much more than respond to emails and check the status of the site, so this has been a good complement to what time and resource limitations impose. The monthly budget, including Internet access, is £65.00 in addition to hourly consulting rates for redesign work and fabric scanning.

Table: Pay-per-click ROAS Pay-Per-Click ROAS Network Google UK Yahoo! UK & Ireland Total Monthly Cost £2,000 £1,250 £3,250 Clicks 4000 2000 6000 Leads Generated 100 45 145 Orders 30 14 44 Monthly Revenue £3,000 £1,400 £4,400 ROAS 150% 112% 131% Cost-perclick £0.50 £0.63 £0.56 Cost-perlead £20.00 £27.78 £23.89

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Table: Website Milestones Milestones Web Development Site Redesign Plan Source Designers Site Testing Site Launch Follow-up and Feedback Revisions Three Month Evaluation Total Web Development Budget Start Date 6/15/2006 8/15/2006 8/20/2006 9/1/2006 9/2/2006 9/20/2006 10/1/2006 End Date 8/30/2006 8/30/2006 8/30/2006 9/2/2006 9/20/2006 10/1/2006 12/31/2006 Budget £2,850 £550 £0 £1,200 £0 £500 £0 £5,100 Manager Julie Julie Julie Julie Julie Julie Julie Department Marketing Marketing Marketing Marketing Marketing Marketing Marketing

Web Development Milestones
Site Redesign Plan Source Designers Site Testing Site Launch Follow-up and Feedback Revisions Three Month Evaluation Jul Aug Sep Oct Nov Dec

4.5 Service
The first goal is to recognise everyone as they come into the store. If they are a repeat customer, they are referred to by name. If they are a new customer, they are asked, "How did you hear about us?" Help is always available and never invasive. The store is staffed to be able to dedicate time and energy to customers that want assistance when they need it. The store is designed so a customer can sit as long as they want to look at books, fabric samples, and review the resources in the store. Their children are also welcome, with a television, VCR, and toys available in the childrens' area in clear view of the resource centre. We provide service in a way that no other competitive retail store can touch. It is one of our greatest assets and points of differentiation. Insight, ideas, inspiration, and fun is the goal. Repeat, high revenue purchases from loyal customers is the desired end product.

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4.6 Implementation Schedule
The following identifies the key activities that are critical to our marketing plan. It is important to accomplish each one on time and on budget.
Table: Milestones Milestones Advertising Radio Campaign 1 Radio Campaign 2 Total Advertising Budget PR Event: Estate Agent Promotion Event: Sunday League Event: For the Arts Event: Women's Institute Total PR Budget Direct Marketing Newsletter Q1 Newsletter Q2 Newsletter Q3 Newsletter Q4 Postcard Total Direct Marketing Budget Web Development Site Redesign Plan Source Designers Site Testing Site Launch Follow-up and Feedback Revisions Three Month Evaluation Total Web Development Budget Other Misc. Other Total Other Budget Totals Start Date 1/1/2006 9/1/2006 Start Date 2/1/2006 5/1/2006 9/1/2006 11/1/2006 Start Date 12/1/2005 2/15/2006 6/1/2006 9/1/2006 11/15/2006 Start Date 6/15/2006 8/15/2006 8/20/2006 9/1/2006 9/2/2006 9/20/2006 10/1/2006 Start Date 1/1/2003 1/1/2003 End Date 7/28/2006 12/31/2007 End Date 2/28/2006 5/31/2006 9/30/2006 11/25/2006 End Date 1/2/2006 3/15/2006 6/30/2006 9/30/2006 12/5/2006 End Date 8/30/2006 8/30/2006 8/30/2006 9/2/2006 9/20/2006 10/1/2006 12/31/2006 End Date 1/15/2003 1/15/2003 Budget £780 £3,120 £3,900 Budget £400 £400 £400 £400 £1,600 Budget £1,350 £1,400 £1,450 £1,500 £750 £6,450 Budget £2,850 £550 £0 £1,200 £0 £500 £0 £5,100 Budget £0 £0 £0 £17,050 Manager Julie Julie Manager Julie Kandi Pat Jo Manager Judy Judy Judy Judy Judy Manager Julie Julie Julie Julie Julie Julie Julie Manager ABC ABC Department New New Department Home Bldrs New New New Department Existing Existing Existing Existing Existing Department Marketing Marketing Marketing Marketing Marketing Marketing Marketing Department Department Department

5.0 Financials
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. This section will offer a financial overview of Interior Views as it relates to our marketing activities. We will address break-even information, sales forecasts, expense forecasts, and how those link to our marketing strategy.

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5.1 Break-even Analysis
The break-even analysis below illustrates the number of single sales, or units, that we must realise to break even. This is based on average sale and costs per transaction.
Table: Fixed Costs Fixed Costs Cost Utilities Web Site Hosting Recuring Marketing Expenses Payroll Rent Total Fixed Costs Table: Break-even Analysis Break-even Analysis Monthly Revenue Break-even Assumptions: Average Percent Variable Cost Estimated Monthly Fixed Cost £20,427 54% £9,300 £400 £200 £1,200 £6,000 £1,500 £9,300

Break-even Analysis
£6,000 £4,000 £2,000 £0 (£2,000) (£4,000) (£6,000) (£8,000) (£10,000) £0 £6,000 £12,000 £18,000 £24,000 £30,000

Monthly break-even point

Break-even point = where line intersects with 0

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5.2 Sales Forecast
The sales forecast is broken down into the four main revenue streams; direct sales, Web sales, consignment sales, and sub-lease revenues. The sales forecast for the upcoming year is based on a 25% growth rate. This is a slower growth rate than what was experienced in previous years at 33%, and also less than what is expected for future sales, estimated to be approximately 28%. These projections appear attainable and take the increasing base into consideration. Future growth rates are based on percentage increases as follows: • • • • Direct Sales 20% growth rate per year Web Sales 50% growth rate per year Consignment Sales 20% growth rate per year Sub-lease Revenues 10% growth rate per year

Table: Sales Forecast Sales Forecast FY 2007 Sales Direct Sales Web Sales Consignment Sales Sub-Lease Revenue Total Sales Direct Cost of Sales Direct Sales Web Sales Consignment Sales Sub-Lease Revenue Subtotal Direct Cost of Sales £322,000 £12,500 £1,360 £5,340 £341,200 FY 2007 £178,850 £6,875 £71 £60 £185,856 FY 2008 £386,400 £18,750 £1,632 £5,600 £412,382 FY 2008 £214,000 £10,400 £85 £66 £224,551 FY 2009 £463,700 £28,125 £1,960 £6,165 £499,950 FY 2009 £255,500 £12,000 £102 £73 £267,675 FY 2010 £556,400 £42,190 £2,350 £6,780 £607,720 FY 2010 £307,000 £18,000 £123 £80 £325,203 FY 2011 £667,700 £63,280 £2,820 £7,460 £741,260 FY 2011 £370,000 £20,000 £150 £88 £390,238

Sales Monthly
£40,000 £35,000 £30,000 £25,000 £20,000 £15,000 £10,000 £5,000 £0 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

Direct Sales Web Sales Consignment Sales Sub-Lease Revenue

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5.2.1 Sales by Fabric Sales
Fabric sales account for approximately 74% of total sales. The remaining sales result from complementary products sales, including trims, tassels, pillows, drapery rods and hardware, books, and upholstered furniture.
Table: Sales Breakdown by Fabric Sales Sales by: Fabric Sales FY 2007 Sales Drapery Weight Upholstery Weight Mixed Special Order Other Total Average £53,633 £26,815 £100,566 £67,040 £93,146 £341,200 £68,240 FY 2008 £65,351 £32,675 £122,533 £81,688 £110,135 £412,382 £82,476 FY 2009 £79,298 £39,649 £148,683 £99,122 £133,198 £499,950 £99,990 FY 2010 £96,470 £48,235 £180,882 £120,588 £161,545 £607,720 £121,544 FY 2011 £117,762 £58,881 £220,803 £147,202 £196,612 £741,260 £148,252

Sales Breakdown by Fabric Sales Monthly
£40,000 £35,000 £30,000 £25,000 £20,000 £15,000 £10,000 £5,000 £0 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

Drapery Weight Upholstery Weight Mixed Special Order Other

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5.2.2 Sales by Consignment
Consignment sales account for a relatively small portion of total sales and are primarily supported to create a better feel and look for the store. This is an area that does provide useful information feedback regarding other possible product sales the store may want to sell in the future.
Table: Sales Breakdown by Consignment Sales by: Consignment FY 2007 Sales "The Window Seat" Antiques Other Total Average £11,732 £26,815 £302,653 £341,200 £113,733 FY 2008 £14,295 £32,675 £365,412 £412,382 £137,461 FY 2009 £17,346 £39,675 £442,929 £499,950 £166,650 FY 2010 £21,103 £48,235 £538,382 £607,720 £202,573 FY 2011 £25,760 £58,881 £656,619 £741,260 £247,087

Sales Breakdown by Consignment Monthly
£40,000 £35,000 £30,000 £25,000

"The Window Seat"
£20,000 £15,000 £10,000 £5,000 £0 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

Antiques Other

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Interior Views-UK Marketing Plan
5.2.3 Sales by Sub-lease
The Antique Bureau sub-leases approximately 450 square feet. This store offers a selection of authentic antiques. It attracts additional customers and provides revenue for space that is currently unused. Two additional areas are available. The "conference room" space is available for special events, and the second office is available for an interior designer to sublease.
Table: Sales Breakdown by Sub-lease Sales by: Sub-lease FY 2007 Sales The Antique Bureau Event/Sale Revenue Other Total Average £4,320 £840 £336,040 £341,200 £113,733 FY 2008 £4,750 £925 £406,707 £412,382 £137,461 FY 2009 £5,225 £1,020 £493,705 £499,950 £166,650 FY 2010 £5,750 £1,120 £600,850 £607,720 £202,573 FY 2011 £6,325 £1,230 £733,705 £741,260 £247,087

Sales Breakdown by Sub-lease Monthly
£40,000 £35,000 £30,000 £25,000

The Antique Bureau
£20,000 £15,000 £10,000 £5,000 £0 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

Event/Sale Revenue Other

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Interior Views-UK Marketing Plan
5.3 Expense Forecast
Marketing expenses are to be budgeted at approximately 5% of total sales. Expenses are tracked in the major marketing categories of radio adverts, newspaper adverts, the newsletter and postcard mailings, Web marketing support, printed promotional materials, public relations, and other.
Table: Marketing Expense Budget Marketing Expense Budget Radio Ads Newspaper Ads Newsletter/Postcard Printed Promotional Materials Web Marketing/Support Public Relations Promotional Events Website Expenses Other Total Sales and Marketing Expenses Percent of Sales FY 2007 £3,900 £1,800 £6,450 £960 £1,500 £240 £1,700 £2,400 £400 -----------£19,350 5.67% FY 2008 £4,600 £2,160 £7,700 £1,150 £1,950 £345 £1,950 £2,600 £480 -----------£22,935 5.56% FY 2009 £5,620 £2,592 £9,200 £1,380 £2,535 £415 £2,300 £2,800 £575 -----------£27,417 5.48% FY 2010 £6,740 £3,110 £11,150 £1,660 £3,295 £500 £2,800 £3,000 £700 -----------£32,955 5.42% FY 2011 £8,200 £3,800 £13,400 £2,000 £4,300 £600 £3,400 £3,000 £850 -----------£39,550 5.34%

Monthly Expense Budget

£3,500 £3,000 £2,500 £2,000 £1,500 £1,000 £500 £0 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

Radio Ads Newspaper Ads Newsletter/Postcard Printed Promotional Materials Web Marketing/Support Public Relations Promotional Events Website Expenses Other

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Interior Views-UK Marketing Plan
5.3.1 Expense by Stock
Marketing expenses are evenly allocated based on the type of stock in the store.
Table: Expense Breakdown by Stock Expenses by Stock FY 2007 Expenses Drapery Weight Upholstery Weight Mixed Other Total Average £2,546 £1,265 £2,230 £13,309 £19,350 £4,838 FY 2008 £3,268 £1,634 £5,100 £12,933 £22,935 £5,734 FY 2009 £3,965 £1,982 £6,400 £15,070 £27,417 £6,854 FY 2010 £4,824 £2,412 £8,000 £17,719 £32,955 £8,239 FY 2011 £5,888 £2,944 £9,000 £21,718 £39,550 £9,888

Expense Breakdown by Stock Monthly
£3,500 £3,000 £2,500 £2,000 £1,500 £1,000 £500 £0 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

Drapery Weight Upholstery Weight Mixed Other

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Interior Views-UK Marketing Plan
5.3.2 Expense by Fixtures
Fixtures and in-store improvements are important for us to track and allow us to better understand how we are using the space allocated.
Table: Expense Breakdown by Fixtures Expenses by Fixtures FY 2007 Expenses Fabric Racks Office Furniture Leasehold Improvements Other Total Average £1,200 £600 £1,000 £16,550 £19,350 £4,838 FY 2008 £1,400 £800 £1,200 £19,535 £22,935 £5,734 FY 2009 £1,500 £900 £1,400 £23,617 £27,417 £6,854 FY 2010 £1,600 £1,000 £1,600 £28,755 £32,955 £8,239 FY 2011 £1,700 £1,100 £1,800 £34,950 £39,550 £9,888

Expense Breakdown by Fixtures Monthly
£3,500 £3,000 £2,500 £2,000 £1,500 £1,000 £500 £0 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

Fabric Racks Office Furniture Leasehold Improvements Other

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Interior Views-UK Marketing Plan
5.3.3 Expense by Supplies
Supplies are one of the more controllable expenses and will be important to monitor as we grow.
Table: Expense Breakdown by Supplies Expenses by Supplies FY 2007 Expenses Office Supplies Fabrication Supplies Other Total Average £420 £300 £18,630 £19,350 £6,450 FY 2008 £480 £340 £22,115 £22,935 £7,645 FY 2009 £540 £380 £26,497 £27,417 £9,139 FY 2010 £600 £420 £31,935 £32,955 £10,985 FY 2011 £660 £460 £38,430 £39,550 £13,183

Expense Breakdown by Supplies Monthly
£3,500 £3,000 £2,500 £2,000 £1,500 £1,000 £500 £0 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

Office Supplies Fabrication Supplies Other

5.4 Linking Expenses to Strategy and Tactics
Our marketing expenses are allocated based on this prioritised approach: 1. 2. 3. Invest in our current customer base - 60%. Invest in prospective customers that match our known profile - 30%. Invest in creating greater awareness in the community - 10%.

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Interior Views-UK Marketing Plan

Sales vs. Expenses Monthly
£40,000 £35,000 £30,000 £25,000 £20,000 £15,000 £10,000 £5,000 £0 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

Sales Expenses

5.5 Contribution Margin
A key component of our marketing plan is to try and keep gross margins at or above 40 %.
Table: Contribution Margin Contribution Margin Sales Direct Costs of Goods Other Costs of Goods Cost of Goods Sold Gross Margin Gross Margin % Marketing Expense Budget Radio Ads Newspaper Ads Newsletter/Postcard Printed Promotional Materials Web Marketing/Support Public Relations Promotional Events Website Expenses Other Total Sales and Marketing Expenses Percent of Sales Contribution Margin Contribution Margin / Sales FY 2007 £341,200 £185,856 £0 -----------£185,856 £155,344 45.53% FY 2007 £3,900 £1,800 £6,450 £960 £1,500 £240 £1,700 £2,400 £400 -----------£19,350 5.67% £135,994 39.86% FY 2008 £412,382 £224,551 £0 -----------£224,551 £187,831 45.55% FY 2008 £4,600 £2,160 £7,700 £1,150 £1,950 £345 £1,950 £2,600 £480 -----------£22,935 5.56% £164,896 39.99% FY 2009 £499,950 £267,675 £0 -----------£267,675 £232,275 46.46% FY 2009 £5,620 £2,592 £9,200 £1,380 £2,535 £415 £2,300 £2,800 £575 -----------£27,417 5.48% £204,858 40.98% FY 2010 £607,720 £325,203 £0 -----------£325,203 £282,517 46.49% FY 2010 £6,740 £3,110 £11,150 £1,660 £3,295 £500 £2,800 £3,000 £700 -----------£32,955 5.42% £249,562 41.07% FY 2011 £741,260 £390,238 £0 -----------£390,238 £351,022 47.35% FY 2011 £8,200 £3,800 £13,400 £2,000 £4,300 £600 £3,400 £3,000 £850 -----------£39,550 5.34% £311,472 42.02%

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Interior Views-UK Marketing Plan

Contribution Margin Monthly
£16,000 £14,000 £12,000 £10,000 £8,000 £6,000 £4,000 £2,000 £0 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

6.0 Controls
The following will enable us to keep on track. If we fail in any of these areas, we will need to re-evaluate our business model: • Gross margins at or above 40%. • Month-to-month annual comparisons indicate an increase of 20% or greater. • Do not depend on the credit line to meet cash requirements. • Continue to pay down the credit line at a minimum of £24,000 per year.

6.1 Implementation
We will manage implementation by having a weekly milestones meeting with the entire staff to make sure that we are on track with our milestones and re-adjust our goals as we gather new data. Once a quarter, we will review this marketing plan to ensure that we stay focused on our marketing strategy and that we are not distracted by opportunities simply because they are different than what we are currently pursuing.

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Interior Views-UK Marketing Plan
Table: ROI Calculator Return On Investment (ROI) Radio Campaign Details Total Impressions Total Program Cost Response Rate Conversion Rate Average Customer Purchase Response Total Responders Total Buyers Revenue Generated Costs Cost per Response Cost per Sale Total Campaign Profit Marketing ROI Table: Customer Lifetime Value Customer Lifetime Value Customer Purchase Forecast: Average Customer Lifetime (years): Average number of purchases per year: Average purchase value: Average Gross Margin %: Gross Margin per purchase Total Customer Purchases: Customer Acquisition Costs: Cost of marketing to a potential customer: Average conversion rate: Subtotal Cost of attracting customer: Other one-off costs for first-time customers: Total Customer Acquisition Costs: Unadjusted Customer Lifetime Value: Adjusted Customer Lifetime Value: Discount Rate: Net Present Value of Customer Lifetime Value: 200,000 £15,000.00 0.75% 30.00% £85.00 1,500 450 £38,250.00 £10.00 £33.33 £23,250.00 155.00% Events 300 £800.00 15.00% 40.00% £124.00 45 18 £2,232.00 £17.78 £44.44 £1,432.00 179.00% Web Adverts 6,000 £3,250.00 5.00% 3.00% £800.00 300 9 £7,200.00 £10.83 £361.11 £3,950.00 121.54% Print Adverts 75,000 £4,000.00 1.00% 20.00% £65.00 750 150 £9,750.00 £5.33 £26.67 £5,750.00 143.75%

5 2 £100.00 70% £70.00 £700.00 £5.00 4% £125.00 £0.00 £125.00 £575.00 8% £391.34

6.2 Keys to Success
• Maintain gross margins in excess of 40%. • Retain customers to generate repeat purchases and referrals. • Generate average sales in excess of £1,000 per business day.

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Interior Views-UK Marketing Plan
6.3 Market Research Resources
• Initial Question Results -- The staff notes customer responses to the "How did you hear about us?" question. We attempt to correlate that with our advertising and promotional activities and referral-generation programmes. • Store Suggestions -- The store suggestion box is another method to gain additional information from customers. Some of the most productive questions are: • What suggestion do you have to improve the store? • Why did you visit the store today? • What other products or services would you like to have available in the store? • Competitive Shopping -- We continually shop other stores. We visit each store in our market at least once each quarter for competitive information, we visit stores in the Birmingham and London markets for merchandising and buying insight, and we subscribe to every catalogue we know that has decorator fabrics as any part of their product line.

6.4 Contingency Planning
Difficulties and Risks • • • • Slow sales resulting in less-than-projected cash flow. Unexpected and excessive cost increases compared to the forecasted sales. Overly aggressive and debilitating actions by competitors. A parallel entry by a new competitor.

Worst case risks might include: • • • • • Determining the business cannot support itself on an ongoing basis. Having to liquidate the stock to pay back the bank loan. Locating a tenant to occupy the leased space for the duration of the five year lease. Losing the assets of the investors used for collateral. Dealing with the financial, business, and personal devastation of the store's failure.

6.5 CRM Plans
Our best sales in the future will come from our current customer base. In order to build this customer base, we need to provide exceptional customer service when they visit the store, have regular follow-up correspondence to thank them for their business (as well as to notify them of special promotions, etc.), and to provide personal shopper support so that each visit to the store meets their needs. In order to keep track of these activities, we will need to create a spreadsheet showing followup correspondence with customers and what, if any, feedback we have received from them. At least quarterly, we will plan to meet and discuss if we are, in fact, retaining our current customers and whether that base has grown, or what changes may need to be made.

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Appendix
Appendix Table: Sales Forecast Sales Forecast Sep Sales Direct Sales Web Sales Consignment Sales Sub-Lease Revenue Total Sales Direct Cost of Sales Direct Sales Web Sales Consignment Sales Sub-Lease Revenue Subtotal Direct Cost of Sales 0% 0% 0% 0% £33,000 £1,000 £100 £405 £34,505 Sep £18,250 £550 £5 £5 £18,810 Oct £25,000 £800 £100 £405 £26,305 Oct £13,500 £440 £5 £5 £13,950 Nov £28,000 £1,000 £110 £525 £29,635 Nov £16,400 £550 £6 £5 £16,961 Dec £30,000 £1,200 £120 £405 £31,725 Dec £16,600 £660 £6 £5 £17,271 Jan £34,000 £1,200 £110 £405 £35,715 Jan £18,800 £660 £6 £5 £19,471 Feb £23,000 £1,000 £100 £525 £24,625 Feb £12,750 £550 £5 £5 £13,310 Mar £20,000 £900 £100 £405 £21,405 Mar £11,100 £495 £5 £5 £11,605 Apr £23,000 £900 £100 £405 £24,405 Apr £12,750 £495 £5 £5 £13,255 May £24,000 £1,000 £120 £525 £25,645 May £13,300 £550 £6 £5 £13,861 Jun £32,000 £1,200 £130 £405 £33,735 Jun £17,700 £660 £7 £5 £18,372 Jul £30,000 £1,300 £140 £405 £31,845 Jul £16,600 £715 £8 £5 £17,328 Aug £20,000 £1,000 £130 £525 £21,655 Aug £11,100 £550 £7 £5 £11,662

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Appendix
Appendix Table: Sales Breakdown by Fabric Sales Sales by: Fabric Sales Sep Sales Drapery Weight Upholstery Weight Mixed Special Order Other Total Average 16% 8% 30% 20% £4,638 £2,319 £8,696 £5,797 £13,055 £34,505 £6,901 Oct £4,209 £2,104 £7,892 £5,261 £6,839 £26,305 £5,261 Nov £4,722 £2,361 £8,855 £5,903 £7,794 £29,635 £5,927 Dec £5,076 £2,538 £9,518 £6,345 £8,248 £31,725 £6,345 Jan £5,714 £2,857 £10,715 £7,143 £9,286 £35,715 £7,143 Feb £3,921 £1,960 £7,352 £4,901 £6,491 £24,625 £4,925 Mar £3,425 £1,712 £6,422 £4,281 £5,565 £21,405 £4,281 Apr £3,905 £1,952 £7,322 £4,881 £6,345 £24,405 £4,881 May £4,084 £2,042 £7,658 £5,105 £6,756 £25,645 £5,129 Jun £5,398 £2,699 £10,121 £6,747 £8,770 £33,735 £6,747 Jul £5,095 £2,548 £9,554 £6,369 £8,279 £31,845 £6,369 Aug £3,446 £1,723 £6,461 £4,307 £5,718 £21,655 £4,331

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Appendix
Appendix Table: Sales Breakdown by Consignment Sales by: Consignment Sep Sales "The Window Seat" Antiques Other Total Average £1,014 £2,319 £31,172 £34,505 £11,502 Oct £921 £2,104 £23,280 £26,305 £8,768 Nov £1,033 £2,361 £26,241 £29,635 £9,878 Dec £1,110 £2,538 £28,077 £31,725 £10,575 Jan £1,250 £2,857 £31,608 £35,715 £11,905 Feb £858 £1,960 £21,807 £24,625 £8,208 Mar £749 £1,712 £18,944 £21,405 £7,135 Apr £854 £1,952 £21,599 £24,405 £8,135 May £893 £2,042 £22,710 £25,645 £8,548 Jun £1,181 £2,699 £29,855 £33,735 £11,245 Jul £1,115 £2,548 £28,182 £31,845 £10,615 Aug £754 £1,723 £19,178 £21,655 £7,218

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Appendix
Appendix Table: Sales Breakdown by Sub-lease Sales by: Sub-lease Sep Sales The Antique Bureau Event/Sale Revenue Other Total Average £360 £45 £34,100 £34,505 £11,502 Oct £360 £45 £25,900 £26,305 £8,768 Nov £360 £120 £29,155 £29,635 £9,878 Dec £360 £45 £31,320 £31,725 £10,575 Jan £360 £45 £35,310 £35,715 £11,905 Feb £360 £120 £24,145 £24,625 £8,208 Mar £360 £45 £21,000 £21,405 £7,135 Apr £360 £45 £24,000 £24,405 £8,135 May £360 £120 £25,165 £25,645 £8,548 Jun £360 £45 £33,330 £33,735 £11,245 Jul £360 £45 £31,440 £31,845 £10,615 Aug £360 £120 £21,175 £21,655 £7,218

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Appendix
Appendix Table: Marketing Expense Budget Marketing Expense Budget Radio Ads Newspaper Ads Newsletter/Postcard Printed Promotional Materials Web Marketing/Support Public Relations Promotional Events Website Expenses Other Total Sales and Marketing Expenses Percent of Sales Sep £780 £600 £1,350 £80 £125 £20 £0 £200 £25 -----------£3,180 9.22% Oct £0 £0 £0 £80 £125 £20 £425 £200 £25 -----------£875 3.33% Nov £0 £0 £0 £80 £125 £20 £0 £200 £50 -----------£475 1.60% Dec £0 £0 £1,400 £80 £125 £20 £0 £200 £25 -----------£1,850 5.83% Jan £0 £0 £0 £80 £125 £20 £425 £200 £25 -----------£875 2.45% Feb £0 £600 £0 £80 £125 £20 £0 £200 £50 -----------£1,075 4.37% Mar £0 £0 £1,450 £80 £125 £20 £0 £200 £25 -----------£1,900 8.88% Apr £0 £0 £0 £80 £125 £20 £0 £200 £25 -----------£450 1.84% May £780 £600 £0 £80 £125 £20 £425 £200 £50 -----------£2,280 8.89% Jun £780 £0 £1,500 £80 £125 £20 £0 £200 £25 -----------£2,730 8.09% Jul £780 £0 £0 £80 £125 £20 £425 £200 £25 -----------£1,655 5.20% Aug £780 £0 £750 £80 £125 £20 £0 £200 £50 -----------£2,005 9.26%

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Appendix
Appendix Table: Expense Breakdown by Stock Expenses by Stock Sep Expenses Drapery Weight Upholstery Weight Mixed Other Total Average £232 £116 £235 £2,597 £3,180 £795 Oct £210 £105 £195 £365 £875 £219 Nov £136 £50 £50 £239 £475 £119 Dec £254 £127 £100 £1,369 £1,850 £463 Jan £286 £143 £150 £296 £875 £219 Feb £196 £98 £165 £616 £1,075 £269 Mar £171 £86 £220 £1,423 £1,900 £475 Apr £160 £90 £50 £150 £450 £113 May £204 £102 £220 £1,754 £2,280 £570 Jun £270 £135 £300 £2,025 £2,730 £683 Jul £255 £127 £325 £948 £1,655 £414 Aug £172 £86 £220 £1,527 £2,005 £501

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Appendix
Appendix Table: Expense Breakdown by Fixtures Expenses by Fixtures Sep Expenses Fabric Racks Office Furniture Leasehold Improvements Other Total Average £0 £0 £250 £2,930 £3,180 £795 Oct £0 £0 £0 £875 £875 £219 Nov £0 £250 £0 £225 £475 £119 Dec £0 £0 £250 £1,600 £1,850 £463 Jan £0 £0 £0 £875 £875 £219 Feb £0 £0 £0 £1,075 £1,075 £269 Mar £1,200 £0 £250 £450 £1,900 £475 Apr £0 £0 £0 £450 £450 £113 May £0 £350 £0 £1,930 £2,280 £570 Jun £0 £0 £250 £2,480 £2,730 £683 Jul £0 £0 £0 £1,655 £1,655 £414 Aug £0 £0 £0 £2,005 £2,005 £501

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Appendix
Appendix Table: Expense Breakdown by Supplies Expenses by Supplies Sep Expenses Office Supplies Fabrication Supplies Other Total Average £35 £75 £3,070 £3,180 £1,060 Oct £35 £0 £840 £875 £292 Nov £35 £0 £440 £475 £158 Dec £35 £75 £1,740 £1,850 £617 Jan £35 £0 £840 £875 £292 Feb £35 £0 £1,040 £1,075 £358 Mar £35 £75 £1,790 £1,900 £633 Apr £35 £0 £415 £450 £150 May £35 £0 £2,245 £2,280 £760 Jun £35 £75 £2,620 £2,730 £910 Jul £35 £0 £1,620 £1,655 £552 Aug £35 £0 £1,970 £2,005 £668

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Appendix
Appendix Table: Contribution Margin Contribution Margin Sales Direct Costs of Goods Other Costs of Goods Cost of Goods Sold Gross Margin Gross Margin % Marketing Expense Budget Radio Ads Newspaper Ads Newsletter/Postcard Printed Promotional Materials Web Marketing/Support Public Relations Promotional Events Website Expenses Other Total Sales and Marketing Expenses Percent of Sales Contribution Margin Contribution Margin / Sales Sep £34,505 £18,810 £0 -----------£18,810 £15,695 45.49% Sep £780 £600 £1,350 £80 £125 £20 £0 £200 £25 -----------£3,180 9.22% £12,515 36.27% Oct £26,305 £13,950 £0 -----------£13,950 £12,355 46.97% Oct £0 £0 £0 £80 £125 £20 £425 £200 £25 -----------£875 3.33% £11,480 43.64% Nov £29,635 £16,961 £0 -----------£16,961 £12,674 42.77% Nov £0 £0 £0 £80 £125 £20 £0 £200 £50 -----------£475 1.60% £12,199 41.16% Dec £31,725 £17,271 £0 -----------£17,271 £14,454 45.56% Dec £0 £0 £1,400 £80 £125 £20 £0 £200 £25 -----------£1,850 5.83% £12,604 39.73% Jan £35,715 £19,471 £0 -----------£19,471 £16,244 45.48% Jan £0 £0 £0 £80 £125 £20 £425 £200 £25 -----------£875 2.45% £15,369 43.03% Feb £24,625 £13,310 £0 -----------£13,310 £11,315 45.95% Feb £0 £600 £0 £80 £125 £20 £0 £200 £50 -----------£1,075 4.37% £10,240 41.58% Mar £21,405 £11,605 £0 -----------£11,605 £9,800 45.78% Mar £0 £0 £1,450 £80 £125 £20 £0 £200 £25 -----------£1,900 8.88% £7,900 36.91% Apr £24,405 £13,255 £0 -----------£13,255 £11,150 45.69% Apr £0 £0 £0 £80 £125 £20 £0 £200 £25 -----------£450 1.84% £10,700 43.84% May £25,645 £13,861 £0 -----------£13,861 £11,784 45.95% May £780 £600 £0 £80 £125 £20 £425 £200 £50 -----------£2,280 8.89% £9,504 37.06% Jun £33,735 £18,372 £0 -----------£18,372 £15,363 45.54% Jun £780 £0 £1,500 £80 £125 £20 £0 £200 £25 -----------£2,730 8.09% £12,633 37.45% Jul £31,845 £17,328 £0 -----------£17,328 £14,517 45.59% Jul £780 £0 £0 £80 £125 £20 £425 £200 £25 -----------£1,655 5.20% £12,862 40.39% Aug £21,655 £11,662 £0 -----------£11,662 £9,993 46.15% Aug £780 £0 £750 £80 £125 £20 £0 £200 £50 -----------£2,005 9.26% £7,988 36.89%

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