MARKETING PLAN OF

HAPPY DIY NEPAL

SUBMITTED BY
ANISH DHAKAL
SILIMA GURUNG

SUBMITTED TO
DR. BHOJ RAJ ARYAL, PHD

SCHOOL OF MANAGEMENT
TRIBHUVAN UNIVERSITY

KRITIPUR,
FEBRUARY, 2021
 EXECUTIVE SUMMARY

This report contains a comprehensive marketing plan of the proposed startup named 'Happy
DIY Nepal', which has been envisioned for the fulfillment of the course criteria of E-marketing
Practicum in the School of Management, Tribhuvan University.

Happy DIY Nepal has the operational strategy of delivering premium quality products which
are recycled from reusable wastes. All the products are made by people identified as talents in
the art sector. With the tagline of 'Waste is Beautiful', Happy DIY carries the aim of delivering
environment friendly value while promoting creativity at the same time.

The business operations of Happy DIY will be mainly conducted through the official website
running under the domain name of www.happydiy.ml. The website contains a number of
customer friendly features like coupon discounts, loyalty program, etc. The business will
always be active for customer service and satisfaction.

The main source of fund for the business will be loan subsidized by Nepal Rastra Bank, which
is known as 'Mahila Udhyamsil Karja'. The business aims to earn a profit around 12 lakhs at
the end of three years.

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 TABLE OF CONTENTS

TITLE PAGE ............................................................................................................................................... i

EXECUTIVE SUMMARY ............................................................................................................................ ii
TABLE OF CONTENTS.............................................................................................................................. iii
CHAPTER I................................................................................................................................................ 1
ORGANIZATION PROFILE ......................................................................................................................... 1
1.1 BUSINESS DESCRIPTION ................................................................................................................ 1
1.2 VISION ........................................................................................................................................... 1
1.3 MISSION ........................................................................................................................................ 1
1.4 SLOGAN ......................................................................................................................................... 2
1.5 OBJECTIVES .................................................................................................................................. 2
1.6 ORGANIZATIONAL STRUCTURE ..................................................................................................... 2
1.7 OWNERSHIP STRUCTURE .............................................................................................................. 3
CHAPTER II .............................................................................................................................................. 4
OPERATIONAL WORKFLOW .................................................................................................................... 4
CHAPTER III ............................................................................................................................................. 6
MARKETING PLAN ................................................................................................................................... 6
3.1 INDUSTRY ANALYSIS...................................................................................................................... 6
3.2 TARGET MARKET ........................................................................................................................... 7
3.3 POSITIONING STATEMENT ............................................................................................................ 7
3.4 SWOT ANALYSIS ............................................................................................................................ 7
3.5 COMPETITOR ANALYSIS ............................................................................................................... 8
3.6 MARKETING STRATEGY ................................................................................................................. 8
3.8 E-MARKETING ............................................................................................................................... 9
CHAPTER IV ........................................................................................................................................... 15
FINANCIAL PLAN.................................................................................................................................... 15
4.1 FINANCING .................................................................................................................................. 15
4.2 FINANCIAL PROJECTION .............................................................................................................. 15

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 CHAPTER I
ORGANIZATION PROFILE

1.1 BUSINESS DESCRIPTION

Happy DIY Nepal is a firm that is identified under the handicraft and fashion industry of Nepal.
The term DIY refers to goods that are made by hands as alternatives to industrial products. The
main focus of Happy DIY is to deliver qualitative products that are made by the hands of
creative people, chosen as vendors by the firm. The key working process of the firm includes
using recycled wastes and converting them into usable goods of premium quality. The products
offered by Happy DIY are not merely decorative goods, but also items that are of day-to-day
usability.

Happy DIY Nepal runs both online and as a brick-and-mortar firm. The official website of the
business, that runs under the domain name of www.happydiy.ml will be the major market
targeting tool. In addition to this, the firm will also run a number of physical outlets through
which its products will be offered.

Another feature of Happy DIY Nepal is that it uses a unique channel of production and supply.
The vendors chosen by the firm can work from their own homes or the firm's workplace, as per
their ease. The price of the products will be fixed through negotiations between the firm and
the vendors. The business showcases the creativity of the vendors, and delivers the value on
their behalf. Happy DIY can be viewed as a blend of both the B2C and C2C models.

1.2 VISION

Our vision is 'To become Nepal's top recycle-based retailer with the notion of environment
protection, waste management and innovation'.

1.3 MISSION

Our mission is 'To deliver value in beauty, ease, and price through fully recycled products made
by Nepalese hands'.

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1.4 SLOGAN

Our business slogan or tagline is 'Waste is Beautiful'.

1.5 OBJECTIVES

Our long-term objectives are:

• To capture at least 10% of the Handicraft industry of Nepal within 6 years of operation.
• To evolve from a handicraft firm into a complete retailer with gradual addition of
product varieties.
• To earn the first rank in google search under the keywords 'Nepali online shopping',
and 'Nepali handicrafts' within three years.

1.6 ORGANIZATIONAL STRUCTURE

The organization structure and senior management team of Happy DIY Nepal have been shown
in the chart below:

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Happy DIY Nepal will operate under the leadership of Anish Dhakal. Ms. Silima Gurung will
be the head of operations of the firm. She will monitor the activities of the Vendor Relationship
Department and the Marketing Department. The finance department and IT/ Customer
Relationship department will be directly monitored by the CEO.

1.7 OWNERSHIP STRUCTURE

Happy DIY Nepal will be registered under the Partnership Act of Nepal, 1964. The share of
the company will be divided equally between the two partners- Anish Dhakal, and Silima
Gurung. Both the partners will be active partners will equal decision roles in the business.

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 CHAPTER II
OPERATIONAL WORKFLOW

The operational workflow of Happy DIY Nepal is shown by the following chart:

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The operations will begin with the identification of vendors. The vendor relationship
department will organize various competitions and workshops in order to identify creative
artists. Creators can also directly apply for membership from the firm's website. Potential
vendors will have to take a test at the workplace of the firm. After passing the test, membership
will be awarded to the creators.

After selecting the vendors, the Vendor Relationship Department (VRD) will make active
interactions with the vendors about the types of products to be made. The price of products will
also be negotiated. Then, the production process begins. The vendors can work at their own
homes or even at the workplace.

When a product gets developed, the IT department has to update the product details in the
website and Facebook/Instagram pages. The IT department actively tracks every purchase
order made, and provides the details to the marketing department. It also makes response to
any complaints or enquiries made by the customers through the website chat or facebook
messages.

The marketing and finance department work side by side in collaboration to the other
departments. The finance department allocates budget to the VRD for price negotiation, and
also makes disbursements whenever required. Likewise, the marketing department studies the
environment and decides what products to produce. It also orders the IT department on what
advertising and promotional activities to integrate in the website.

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 CHAPTER III
MARKETING PLAN

3.1 INDUSTRY ANALYSIS

In today’s high tech and industrialized countries, Nepali handmade products are gaining
popularity. From lokta paper to products made from beads, wool, wooden and bamboo, metal
and clay, artisans in the country continue to create valuable export products. Handicraft is one
of Nepal’s signature products and netted the country Rs5.4 billion in export earnings in the last
fiscal year. The sector is not resting on its laurels and has been adapting its products to suit the
international market. Manufacturers are focusing on products made using natural fibres such
as allo and felt among others, said traders. New variants of traditional items are being
introduced and one of the best-selling is felt handicraft.

Handicrafts production in Nepal is believed to have started during the Licchavi period (300-
879 AD). It exploded in scale during Malla era. Since the period, the country’s handicrafts have
been gaining popularity among foreigners. The statistics of the Federation of Handicrafts
Associations of Nepal show that the country’s felt items have been gaining a strong following
in the international market year-on-year. Last fiscal year, the country exported felt items worth
Rs1.84 billion, a 19 percent increase compared to the export earnings in 2017-18. Out of the
country’s export earnings worth Rs5.4 billion from handicrafts items, felt products shared 34
percent, shows the record of the federation.

In spite of the growing size of Nepal's handicraft industry, the concept of recycled handicrafts
is rarely practiced. Handicrafts are produced only as items of gifts and decorations. The truth
is that handicrafts do not merely involve premium souvenirs. Hand crafted goods of daily
necessity are produced only in small volume. Most of the products are targeted for foreign
buyers. Thus, the price of handicrafts is very high in Nepal.

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3.2 TARGET MARKET

The target markets of Happy DIY Nepal are as follows:

- Youths willing to engage in celebrative activities like birthdays, anniversaries, etc.

- People interested in decorating and beautifying their domestic premises.
- Guardians and parents preferring fancy outfits for their kids.
- Low-income people desiring premium clothes and accessories at low price.

3.3 POSITIONING STATEMENT

For price sensitive consumers who are interested in premium and

For price sensitive consumers who are interested in premium and trendy products, HappyDIY
is a supplier whose focus is on delivering high quality DIY products. The firm is different than
its competitors in the way that all of its products are made completely from reused and recycled
wastes.

3.4 SWOT ANALYSIS

Strengths:
- Recycled products resulting in low cost of production.
- Wide Varieties of products due to large number of individual creators.
- Goods of daily usability like clothes, furniture, etc. differentiates from traditional
handicraft firms.

Weakness:
- Low budget leading to operational inefficiency.
- Less manpower for running the firm.

Opportunities:
- The growing trend of home decorations, fancy outfits and celebrative activities.
- The rise in use of social media creating a chance for wider outreach.

Threats:
- Risk of inferior perception of quality due to recycled products.
- Risk of inability to gain good rank in the search engines.

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3.5 COMPETITOR ANALYSIS

The major competitors for Happy DIY Nepal will be the participants of the handicraft industry,
as well as the retail clothing industry. There are firms like Hamro Hastakala, Machhabhyaguta,
etc. which are flourishing in the handicraft industry. However, the prices offered by these firms
are relatively high. Likewise, these firms only specialize in the gifts and decoration sectors.
Thus, Happy DIY Nepal can gain an advantage over these firms by employing its unique
concept and low pricing strategy.

3.6 MARKETING STRATEGY

The main marketing strategy of Happy DIY will be to promote the concept of recycled
products, which is not yet acknowledged in the Nepalese market. By using extensive marketing
tools, we will try to show that even reused wastes can be turned into goods of premium quality.
By offering such premium goods at low prices, we will certainly gain a proper response in the
market.

3.7 MARKETING MIX

The marketing mix of Happy DIY Nepal consists of the following elements:

- Products

Our firm will deliver a wide variety of products ranging from premium decors to outfits for
daily usage. Some of our product categories are as follows:

• Decors
• Scrunchies
• Tie dyes
• Celebration
• Kids
• Furnitures
• Cardboards
• Accessories

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 - Pricing

We will use a low price penetration strategy combined with quality focus. The method of
Cost-plus pricing will be used for fixing prices. The prices will be fixed through the
negotiation between our vendor relationship department and the vendors. Margin will be
added to the prices demanded by the vendors to ascertain the final prices.

- Promotions

Happy DIY Nepal will practice a multitude of promotional activities. Some of them are:

• Sponsorships
• Social Media Marketing
• Email marketing and Newsletters
• On site Loyalty Schemes
• On site Coupon Discounts

- Distribution

Third-party delivery will be applied for product delivery of Happy DIY Nepal. Since there
are a large number of third-party delivery firms charging reasonable commissions, we will
use their services instead of developing our own delivery department. In case the business
grows properly in the future, a new delivery department will be added as a functional unit
of the business.

3.8 E-MARKETING

Happy DIY focuses more on digital and internet marketing than traditional marketing practices.
Our official website will be providing a large number of services including product purchase
and payment. The major features of our website are:

- Easy navigation and accessibility

- On site Loyalty Scheme
- On site coupon discount Scheme
- Live chat support
- Mobile Responsiveness
- Encryption through SSL
- User friendly cart and payment system

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Our website, running under the domain name www.happydiy.ml, can be visualized with the
following pictures:

• Landing Page

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• Shop Page

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• Cart Page

• Loyalty Points

Your Points

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In addition to the website, digital marketing will also be achieved through the firm's facebook
and Instagram pages. Social media marketing will be one of the major platforms for marketing
because a large portion of Nepalese market is already online.

Likewise, we will also target organic audience through Search Engine optimization. We will
work on ranking on the focus keywords 'Nepali Online Shopping' and 'Nepali Handicrafts'.
SEO marketing will help us to gain natural visitors in our website.

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 CHAPTER IV
FINANCIAL PLAN

4.1 FINANCING

The major source of fund for Happy DIY will be the 'Mahila Udhyamsil Loan', subsidized by
Nepal Rastra Bank. The loan will be obtained from Standard Chartered Bank at a lump sum of
Rs. 15 lakhs. The three year loan plan will be enough to meet the major fund requirements. In
any fund is required in addition to this, the two partners will equally divide the burden.

4.2 FINANCIAL PROJECTION

The three year projection of income statement and balance sheet of Happy DIY Nepal is
presented below:

Three Year Projected Income Statement (FY 2021/22 to 2023/2024)

Particulars 2021/22 2022/23 2023/24

Sales 15,00,000 30,00,000 45,00,000

Less: Cost of goods Sold 4,00,000 7,50,000 10,00,000

Gross Margin 11,00,000 22,50,000 35,00,000

Less: Selling and Administrative Expenses

Salaries 1,00,000 1,50,000 1,60,000

Rent 2,40,000 3,00,000 3,00,000

Waste collection Expenses 50,000 60,000 60,000

Office utilities 1,20,000 1,50,000 1,80,000

Delivery Expenses 1,50,000 2,00,000 7,00,000

Website Maintenance Expenses 50,000 60,000 80,000

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 Other expenses 1,50,000 2,00,000 4,00,000

Earning Before Interest and Tax 2,40,000 11,30,000 16,20,000

Less: Interest 35,000 30,000 25,000

Earning Before Tax 2,05,000 11,00,000 15,95,000

Less: Tax (25%) 51,250 2,75,000 3,98,750

Net Income 1,53,750 8,25,000 11,96,250

Three Year Projected Balance Sheet (FY 2021/22 to 2023/2024)

Capital and Liabilities 2021/22 2022/23 2023/24

Capital 25,000 1,80,000 10,00,000

Loan 15,00,000 7,00,000 0

Current Liabilities 20,000 25,000 30,000

Total Capital and Liabilities 15,45,000 9,05,000 10,30,000

Assets 2021/22 2022/23 2023/24

Fixed Assets

Furnitures 1,00,000 1,50,000 5,00,000

Computers 80,000 1,50,000 2,00,000

Investment 0 0 2,00,000

Current Assets

Cash 15,35,000 8,85,000 9,80,000

Accounts Receivable 10,000 20,000 50,000

Total Assets 15,45,000 9,05,000 10,30,000

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