The Decorative Private Limited Company Marketing

Essay
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Decorative Private Limited Company is formed in 5 members. Company is allocated in 88, Jalan
Mawar, Kota Damansara 53300 Petaling Jaya Selangor. Company target markets are those
restaurants and shops. Our company carry out service like themes, internal design and reengineering
of restaurant and shop. The company is expecting and planning for high growth over the next three
years. Our company are focus on the high class and lifestyles customers.

Slogan
Efficiency, Quality, Professional, Safety
Our company provide the product and services such as professional interior design, renovation
process and retail of furniture and ceramic. Our designer will provide their idea to the customers about
how to design. We will design according to customers need and provide them advice. In addition, we
also will provide renovation works for the customers and provide all the materials needed for
reengineering. Our addition service is Feng Shui which provide customer the need for enhance the
environments and luck. We believe that one-link service can let customers more convenience and
save their times and money.

Vision
We aim to be a recognize company in Global. We concentrate in providing exceptional, cost effective
project on schedule. We are delivering the innovative and consumer oriented design, which is able to
understand and interpret a clients vision into design expressions that are both unique and useful.

Mision
Decorative Private Limited to provide a value added service to all of our clients by creating a
successful partnership with them throughout our service. Our pledge to bring a lasting relationship with
our client by giving them expectation and gaining their trust towards our company

Objectives
Increase business network in peninsular Malaysia and target in Klang Valley market.
Focus on restaurant and retail shop, contracting market to increase profit margin.
To have 15 construction project within the first year.
To develop a sustainable business and maintain the liquidity of cash flow to run the business.

Goals
To establish a showroom which merges with our office for better view of products and services
provided.
To provide differentiation of international product and special customise product.
Expand into taking up the project like housing, commercial and office building project to build a strong

brand in the market.

Increase 3 billion sales for the fourth year of business and expand the business to other geographical
area.

INDUSTRY ANALYSIS
Political Action and Regulatory Changes
In construction business, government had set up the procedure an how to set up the business and our
company follow the rules and regulations. One of the terms and conditions is our product will not cause
harm on human and environment. Our company are paying 10% tax to the government. Some
commercial law that can be use in our business are such as Contracts law and Environmental Quality
Act. The contract law allow us to make contract with our customers. The contract law will protect both
parties if there is any breach of contract. We should follow the terms and conditions written down in the
contract. Any parties that breach the contract will be penalise. The Environmental Quality Act prevent
us to make any water pollution, air pollution, noise pollution and others pollutions that will cause harm
for human and environment.

Economic
Construction industry has grown 5.4% Gross Domestic product and this increases the economic level.
The contribution is RM 80.9 billion in a year. The Klang Valley has the highest project at 27%. This
growth also relate government give subsidies the First Home Scheme, housing loan and allow youth
with RM3,000 salary below to own a house. This is the factor that government increases the
construction projects. Another factor is the bank interest rate as average each bank offer 4.5% interest
per year and the bank also offer average 3.5% interest which is a lock period of 3 year. Economically,
there will be an affect in their spending on consumption when they feel spending on construction is a
necessity for them.

Social
Nowadays, the interior design of our country are always excessive pursuit of luxury decoration and do
not consider the material that will harm the health of consumers. That will make people feel dizziness,
nausea and other symptoms. Our interior design material use for construction is mainly green products
and friendly to environment. That is means we are using the natural material for the furniture and
decoration. Green product itself is non-toxic and will not harmful to the health of users. At the same
time, we are also emphasizing the design of the artistic connotation. With the improvement of the
peoples environment awareness, all green design can provide people with a good, reasonable and
comfortable indoor environment.

Technological Advances
In interior design process, we need use technology product to help us to done the jobs. For example,
we use computer technology software the AutoCAD 3D animation to draw and show design blueprint.
Furthermore, we use advance technology to shown the design such as Ipad, lap-top, LED projector to
show our concept to the customer. Moreover, we use internet to show our concept in our companys
website. In other ways, we also use internet in receiving an order from customer.

Porter Five Forces

Threat of substitutes is high, it because customer can easily find substitute like design they own or
through family and friends comment, and can copy the design from the professional interior designer as
a preference. They can renovate they own shop base on their idea and option for the shop.

Furthermore, the shop they brought can be already designed and the concept is what they wanted.
Bargaining power of buyers is high, it because buyer have the power to negotiate they own designs,
customizable product and differentiated raw material as their preferences toward their shop. Besides,
they have own budget to determine what design and product or service needed for their business.
Bargaining power of suppliers is low, it because we have many supplier who supply products for us
and allow us to have low price for materials. Besides if one of the supplier have higher price, we will
switch to another supplier for the goods.
Rivalry among existing firms is high, it because have many of competitor in the market which compete
to each other and barrier to exits the market is low which the remaining firm will gain more profit. Each
competitor is competing to getting a project and each of them has advantages.
Threat of new entrants is low, because barrier to enter and exists the market is hard. The existing
customers will have loyalty toward a company that have satisfied their needs before and willing to give
a new project for the renovation. It requires new technology such as Autodesk 3ds Max design for
Architecture that shown the design in the form of 3D which is hard for a new competitor to follow.
However, customers will only select or attract to an existing brand or company.

MARKET ANALYSIS
Market segmentation
We target on peninsular Malaysia which is only the whole Klang Valley market. It due to the population
in Klang valley is around 7.5 million. Most of Klang Valley people are more concern to have high taste,
trend and design to improve the living lifestyles. Klang Valley has the highest potential market for
construction industry to build houses; office and commercial building at 19.1% projects among other
state and this also give us opportunity to get interior design construction projects. This is an advantage
for us to penetrate the market and give consumer the trends to renovate and reengineering their shop.

Target Market
We target on those rich property owner who want to renovate their own shop. They are more willing
spend on renovate the shop because they income level is more than average working people. Besides,
they love to have the feeling of comfort, luxury and new. They are more believed on the wealth, and so
we introduce our Feng Shui consultant service for them to improve the wealth and environments
condition. Secondly, another target was the lifestyle people. They follow the trends, design and put
their life into a leisure environment. This kind of person has high sense of quality to their lifestyles. They
are willing to spend on trending material and international products to give a great decoration on their
shop. They have high desire on the design and quality of the products.

Customers need and want

According to our observation, we found that many people are very healthy conscious now and they
also pay attention to the design of their home and also their office. Besides that, some of the shop in
the shopping malls also required a comfortable environment and safety environment. Our company try
to find a way to fulfil customer need by provide warmth and considerate services. For our interior
design, we are providing the entire green material product for all our decoration and furniture. These
green products that able to match the customers who prefer the healthy and comfortable lifestyle that
make them feel that with nature colour they finds that fresh for their daily life. Moreover, we also
provide and do what exactly customer need and want to have at their houses, restaurants. Our
company is specialized in designing restaurants so we can provide the best design in very decorative
way.

Competitor analysis
Direct competitor
One of our company direct competitors is Mah Sing Group Berhad. This company is using the
environment friendly as their theme when designing their project. Our company using the same
concept when carry out construction to reduce the pollution effects. Mah Sing Group Berhad provides
construction activities such as planning, designing and reengineering for their customers. High level
environmental awareness is considered when we planning or managing construction activities. The
cost of construction by Mah Sing Group Berhad is higher than us because they use high technology to
verify the actual efficiencies achieved against target ratings. They use a lot of high technology on their
project. We provide our customers with excellent quality product at cheaper price than competitive
cost. Our company carry out design or construction based on customers require.

Indirect competitor
One of our indirect competitors is Sunway Construction Sdn Bhd. This company carry out virtual
design and construction or sometime known as Building Information Modelling (BIM). With the BIM
technology, it enables integration of design, scheduling and estimation process. An accurate virtual
model of a building is constructed digitally before actual construction begins. The process is very costly.
It is suitable for large building. They focus more on large project such as National Aquatics Centre in
Beijing.

MARKETING PLAN
Price
Price is essentially a barrier to entry, where client will prefer our company when we give a reasonable
price to them. The higher price is less likely a person to buy the product so that we provide service with
affordable price because mostly people even their very rich but they will always look forward for a
reasonable price. So, our company sells a good quality product where all rich willing to pay for it.
Moreover, Price is the first impression for every client when come to business. Every client will search
for the prices of every company before they decide which company can provide them a better quality
product and design with reasonable price.

Price Strategy
A skimming strategy is different from other pricing because skimming is initially set relatively for high
price which is acceptable for potential clients and mainly for those clients who value the product highly.
Besides that, we understand that most of them want their restaurant and shop to look creative, so our
Decorative Private Limited Company designs for you with creatively with good quality product and with
affordable price. Mark-up strategy is used to maximization the profit base on our material sales.

Promotion
The purpose of advertising is to let the customers to know that our company service is going to ready.
We can use the most popular e-media to advertise our company. Besides that, we can utilize e-media
to attract consumers attention towards our company. For example, we create an account in facebook
for the people to view our latest promotion easily. Moreover, we give temporary discount of 50% for the
first 100 customers. Furthermore, we also advertise in some magazines, newspaper, and flyer,
because this save the cost compared with the advertising through television. When we do the
advertisement, we gives the coupon with discount promotion to attract the customers that their willing
to try with us. In addition, we are providing Feng Shui 50% discount for those who are taking our
service by the discount period. The main target of promotion is to increase the trust and establish

reputation between the customer and the company compare to the competitors.

Place
Decorative Private Limited Company is allocated in 88, Jalan Mawar, Kota Damansara, 53300 Petaling
Jaya Selangor. We rent a shop in that location to set up our company office. The population in that
area is high. People in that area can easily see and look for our office. Due to our target market of high
class population, the place there is most suitable for us. Our channel of distribution is from producer to
retailer and then to consumer. We act as retailer and get the product direct from producer and sell to
our customers. We tend to get the product at cheaper price compare to others. A lot of houses and
shops are going to be built up there and it can bring business opportunity for our company.

Product
The main product of our company is interior design plan and sells our concept to customers. The
design plan was designed according to customers preference to fulfill their needs and wants. The
interior design plan was made into 3D animation for customers to look into different angles and
perspective before renovation. This allows customers know was exactly the design look like and let
them to decide whether design is nice or need to change the design. Furthermore, Feng shui service is
our additional service which can bring fortune and luck to customers. Our companies provide Feng shui
service to our customer to enhance their current situation and give changes in life. We also provide
special service which is one-link service to our customers and it would be convenience to our
customers. One-link service means that after customers buy our concept, they can straight always
get renovation service from us without doing separate from other. We will provide renovation service
and material for all the construction work. In addition, we also sell furniture, ceramic and other house
accessories.

Differentiation Strategy
Differentiation strategy was used in our company to create a distinctive advantages compare to our
competitor products. This allow us to give different variety of service such as interior design plan, 3D
animation, Feng Shui and products like, ceiling, floor tiles and customizable furniture. We focus on
restaurant and retail shop renovation and give the best consultation and recommend improving their
shop environment.

FINANCIAL PROJECTION
Overview of financial Projection
List of Assumptions
Capital Contribution:
No
Name of Members
Position
contribution(RM)
Percentage %
1
Tea Yong Wu

CEO
150,000
30%
2
Lok Kim Siang
Sales and Makerting Manager
100,000
20%
3
Sio Wan Xiang
Accounting Manager
100,000
20%
4
Chan Chee Hou
Interior designer manager
75,000
15%
5
Robetta
Human resource Manager
75,000
15%
The company formed by 5 members. The total contribution is RM 500,000.

Note 1: Sales
2013
Price/product
Price Range (RM)
Average Price (RM)
No of product sold per year
Total Sales (RM)

Consultant Service fee

800-1,600
1,200
10
12000
Construction fee
10,000 150,000
80,000
10
80,000
Total Sales (RM)
812,000
2014
Price/product
Price Range (RM)
Average Price (RM)
No of product sold per day/year
Total Sales(RM)
Consultant Service fee
800-1,600
1,200
15
18,000
Construction fee
10,000 150,000
80,000
15
1,200,000
Total Sales (RM)
1,218,000
2015

Price/product
Price Range (RM)
Average Price (RM)
No of product sold per day/year
Total Sales (RM)
Consultant Service fee
800-1,600
1200
20
24,000
Construction fee
10,000 150,000
80,000
20
1,600,000
Total Sales (RM)
1,624,000
The sales continuously increase year to year due to our price is lower than other in the market.

Note 2: Purchase
Purchase of materials cost 20% based on the selling price of total sales
Year
2013
2014
2015
Total Sales (RM)
812,000
1,218,000
1,624,000
Purchase 20 % (RM)
162,400
243,600

324,800

Note 3: Additional income: Discount received from supplier 5%

Year
2013
2014
2015
Purchase (RM)
162,400
243,600
324,800
Discount received 5% (RM)
8,120
12,180
16,240

Note 4: Inventory
Opening inventory for the first year RM 0, the closing inventory is RM 320,000 and brought down RM
4,800 to next year, the second RM 4,800 and, Third year RM 4,560.

Note 5: Rental
The rental for office is RM 20,000 per month and deposit of three month RM 60,000. The first of rental
is RM 300,000. The second and third year rental increase 10% for each year.

Note 6: License
The business license for each year is RM 10,000

Note 7: Telephone and Wi-Fi

The telephone and Wi-Fi rate is fixed at RM 1,000 a month, every year is RM 12,000

Note 8: Utilities
The bill was charge RM 1200 a month and every year is RM 14,400.

Note 9: Advertising and Promotion

The cost is divides into two parts which are the pamphlets and e-media. In pamphlets the cost RM
50,000 and e-media advertising cost RM 15,000. The promotion offer cost RM 30,000 and total up is
RM 95,000.

Note 10: Travel

Traveling cost is RM 2000 a month, a year is RM 24,000. Each year increase 15%.

Note 11: Depreciation of furniture & fittings and equipment

The purchase for furniture & fittings is RM 40,000 and equipment RM 60,000. Each of it was depreciate
by straight line method of 10% each year. Furniture will be RM 4000 and equipment is RM 6000 per
year.

Note 12: Registration business fees and legal fees

The registration application is cost RM 1,000 for the first year only and legal fee RM 800 for each year
of the construction project.

Note 13: Salary and EPF of 13%

Personal
Salary (RM)
No of employee
Total per month (RM)
Total per year (RM)
13% of EPF per year (RM)
Supervisor
3,000
2
6,000
72,000
9,360
Construction staff
1,500
5
7,500
90,000
11,700
Total per year (RM)
162,000
21,060
Our company has 7 worker which is the 2 supervisor and 5 construction worker. We contribute each
worker EPF of 13%.

Income Statements
Pro forma Statement for the comprehensive income for the year ended 31
December
Year
2013(RM)
2014(RM)
2015(RM)
Sales
812,000
1,218,000
1,624,000
less: Cost of Goods Sold
Opening inventory
0
12,400
6,000
Purchase 20%
162,400
243,600
324,800
Less: Closing inventories
150,000
250,000
320,000
Total Cost of Sales
12,400
6,000
10,800
Gross Profit
799,600
1,212,000

1,613,200
Additional Income
Discount received (supplier 5%)
8,120
12,180
16,240
Total additional income
807,720
1,224,180
1,629,440
Less: Expenditure
Advertising
95,000
95,000
95,000
License fee for business
10,000
10,000
10,000
Rental
300,000
264,000
290,400
Telephone and Wi-Fi
12,000
12,000
12,000
Utilities
14,400
14,400
14,400

EPF 13%
21,060
21,060
21,060
Salaries
162,000
162,000
162,000
Travel fees
24,000
27,600
31,740
Dep: furniture and fittings
4,000
4,000
4,000
Dep: equipment
6,000
6,000
6,000
Legal fees
16,000
19,200
24,000
Registration fees for business
1,000
0
0
Total Expenses
665,460
635,260

670,600
Net profit
142,260
588,920
958,840