Business Plan of CONTESSA INTERIOR
Executive Summary
„Contessa‟ is a basically furniture showroom. The name is known by some
geographical area people only in Colombo. It was the wood division of „Link Engineering‟
since its incorporation in 1990. After the acquisition by „Blue Ocean Group of Companies‟ in
September 2013, The name „Contessa‟ is registered as the separate entity which is going to
function as a separate SBU under the umbrella “Blue Ocean”.
In future, Contessa will also be diversified into all type of interior work such as steel, glass,
partitioning decorations, curtaining, wooden and laminated flooring and imports and exports
of furniture also. In addition, it is also expecting to expand its wider hands all over the island
through establishing multiple show rooms in selected regions.
Over the years, Contessa has clearly identified a market for its interior solutions. With broad
innovative ideas, customer oriented service or products, and quality of service by the sales
force, Contessa seeks to build a strong market position by establishing its major “Blue Ocean
strategy” in its activities. It also concentrates on targeting high end residential customers,
commercial development projects, and mid range residential customer segment.
Objectives
To be the top interior decorator firm in the market.
Revenue to more than Rs One billion in the year ended 2018 December
Aims to have 60% sales from commercial developments and 40% from individual
customers over the years.
To have fifteen number of sales outlets all over the island within the targeted four
years.
Mission
To be the most innovative interior solution service provider in the market while enhancing
and ensuring the customer satisfaction.
Business Plan of CONTESSA INTERIOR
Start up and initiating business
Contessa as you all know was doing the business as s showroom since its incorporation.
Now, through the branding which is going to be done, it will break up the competition in the
market and establish the name as the most innovative interior service provider. As it is being
functioning as the division of „Link Engineering‟, it will not need the start up costs or kind of
imitation cost. In order to take the significant business into the company its requiring funds
spending on advertising and selling at the initial stage.
Strategic Miles Stone
2014 - Opening first showroom
2015 – Developing show rooms and increasing number of sales & Q/S staffs significantly
2016 – Start Exporting Wooden products to multiple countries
2017 – Achieving Rs. 450 millon turnover
2018 – Achieving remarkable Rs.One billon turnover through increased sales & Q/S staff,
Island wide show rooms, exports, winning tenders, capturing corporate clientele through
branded image interior solutions.
2025 – Targeting forty numbers of show rooms all over the Island.
2030 – Listing in Colombo Stock Exchange at DiriSavi Board & Developing international
activities through establishing international branches
Business Plan of CONTESSA INTERIOR
Business Model & Plan (1.1)
Product Target customers /
Segment
Product stage in
PLC Pricing strategy Marketing Communication
Pantry cupboards
& Aluminium products
North & East region Introductory Premium pricing
Issuing leaflets, targeting public
gathering events & functions.
News paper advertising
Central Growth Absorption pricing Issuing leaflets & newspaper
advertising
West & south Matured market Loss leadership Newspaper advertising, email
flyers,
Innovative
CLEI Products
(www.clei.it)
Segmented high profile
customers (Eg: Blue
Ocean Customers)
Early Introductory Price Skimming
Hoardings (Eg: Sumsung Curved
TV intro in SL),
Promotional Video TV Ads,
heavy paper ads promtions
Wooden products &
wooden crafting
Middle and high
residential customers
Stage between
Introductory &
Growth
Market oriented pricing Issuing leaflets in public
gathering and newspaper ads
Melamine wardrobes &
computer tables
Retail sellers all over the
Island Growth Predatory pricing
Issuing product profiles to retail
sellers and selling through them
by adding profit margin for them
Office partitions,
furniture, decorative
items & other interior
Contacting corporate
clientele all over the
island which are about
to renovate
- Market oriented pricing
Issuing “Contessa Product
Profiles & Album”, conducting
presentations, sending email
flyers
Registering / Tendering
for Office Interior work
& supplying furniture
Following all tenders
(Through Q/S staff) - Loss leadership
Issuing company profiles with
designed albums and the past
history with all activities.
Vanity Units, home
furniture & Bathroom
accessories
Residential apartments Highly growth Market based pricing
Sending samples to apartment or
property developers and issuing
catalogues.
Business Plan of CONTESSA INTERIOR
Business Plan of CONTESSA INTERIOR
Production Strategy
1. CLEI imported innovative furniture items
At the initiation stage, we will import small quantity of the products from www.clei.it After
the importing, process reverse engineering will be done to find out the manufacturing process
and to find the solutions how to manufacture using the Srilankan raw materials. Specialized
manufacturing staff will be allocated for the reproduction.
2. All other manufacturing items
All production process will be done through the in house factory and outsourcing will also be
done by looking after the capability of factory and production ability per month. Based on the
sales, some of the production will also be outsourced considering the factory capability
during the production times.
Marketing Analysis
There is enough market for interior designing solution provider in Srilanka because of the
reason, the entire country in a huge developing phase after the end of the war.
Market for Contessa products is huge according to the government‟s development plan as
well as private sector development programmers. But, for implementing strategies and taking
business, Contessa hugely requires advertisement and branding.
Economical and political factor is major benefit for Contessa in the coming growth.
Addressable market
Contessa will strategically concentrate on corporate clients. But, in order to establish its
brand name under the household, it would serve to individual customers as well with
household items.
Segmentation
We have identified our market segment as follows:
Group of customers : It differs according to each and every product contessa offers
(please refer table 1.1)
Geography : Concentrates mainly based on Colombo area for interior works and other
regions for some other products (Please refer table 1.1)
Business Plan of CONTESSA INTERIOR
Prices : Our strategy would be based on the each product that we offer (Please refer
table 1.1)
Distribution channel : Place mix will be done through direct distribution methods.
Industry Analysis
Industry analysis is a vital part of the decision-making process in a business. A
comprehensive industry analysis helps to take an objective view of the underlying forces,
attractiveness, and success factors that determine the structure of the industry. Understanding
the business's operating environment in this way can help to formulate an effective strategy,
position the business for success, and make the most efficient use of the limited resources of
the small business. We are going to discuss the following sections in the industry analysis:
Industry analysis on interior solution providers.
The industry for total interior solution in Srilanka is very attractive as there is no heavy
competition to provide all interior services under one roof. But, there is lot of competitors in
the market to offer the same product Contessa manufacturing. Every competitor will be
producing only some of the products. Not all interior services. This will be major competitive
advantage for Contessa. But, prevailing competitors can‟t copy the CLEI products for some
time if Contessa is successful in manufacturing by using the time and potential Contessa can
make significant profit and huge market share easily.
Competition prevailing in the industry
Product Competitor Strategy to eradicate
competition
Pantry and home furniture Moratuwa wooden
manufacturers, Singer
Homes, Damro
Innovation in furniture such
as fitting lights in Pantry,
Color modifications, Low
pricing
Business Plan of CONTESSA INTERIOR
Opportunity over the market
Based on the market and industry analysis, there is a strong demand for interior works all
over the Island. The weakness of the competitors will also be used as an additional feature in
order to capture the market via prevailing opportunities. For example.
Ramada Hotel
http://www.ft.lk/2014/07/16/ramada-colombo-soon-to-unveil-dazzling-new-lobby/
Domino‟s Pizza
http://www.island.lk/index.php?page_cat=article-details&page=article-
details&code_title=107811
Sampath Bank
http://www.sampath.lk/en/news/entry/sampath-bank-rajagiriya-branch-moves-to-a-new-
location
Subway
http://sundaytimes.lk/140727/magazine/subway-ready-to-open-in-colombo-107936.html
Melamine wardrobes,
computer tables
Piyestra, Damro Supply for local retailers
through low pricing and
providing them innovative
catalogues
Aluminium and combined
products
Lanka Aluminium, Alumex
and other local fabricators
Low pricing
Office furniture & partitions All over the Island several
competitiors
Heavy advertising for
creating strong brand name
Business Plan of CONTESSA INTERIOR
Marketing Plan
Marketing plan for Contessa describes the future marketing plans of Contessa and the
strategies that will be used in the future in order to capture the target market. (Please Refer
table 1.1)
Target Customer strategy
The target customer strategy for Contessa is identified on customer needs in certain segments
and geographical areas. (Please refer 1.1)
Channel strategy
All the products will be directly supplied by the own transportation except the melamine
products which are going to be sold for customers through all over the Island retailers.
Branding strategy
At the initial stage Contessa will be carrying its family Blue Ocean Group under all
promotions in order to establish a strong brand name. After some period, it would start to do
all of its activities under its own name “Contessa Pvt Ltd”
As we are new to the market that we are expecting to capture (all over the Island), our brand
recognition or brand identity is less at the introduction stage of our product life cycle. But, we
believe that we can create brand loyalty within the next few years through the unique feature
of our product, comparing with the existing product in the market.
The values we expect to remain in the minds of our customers are superior quality and
innovation. Through marketing these values we will create identification for our product. The
essential skill required to create the brand strategy is the marketing skill which is a very
positive resource to our business. So the mix of their marketing skill with all the other
available resources will create a very strong pool to build the position of our business.
Pricing strategy
All the products pricing will be done according to the market perception (Please refer 1.1)
Business Plan of CONTESSA INTERIOR
Internet Strategy
Our Corporate website (ww.contessa.lk) will be used for all promotional activities and
innovate us from the competition. In addition, time to time there will be a toolbar in mostly
viewed websites to familiarize the name. (Eg: ikman.lk; hitad.lk, srilanka equity forum,
etc…)
Communication strategy
In times, Contessa will be doing guerilla marketing campaigns as well such as promotions
through school students by offering gifts and vouchers and through targeting the public at
unexpected places.
Example :
http://www.creativeguerrillamarketing.com/guerrilla-marketing/15-clever-bench-guerrilla-
marketing-examples/
Sales Strategy
All our products except the melamine cupboards will be sold by our own sales executives
through our show rooms. On the other hand, we will be selling some of our products through
retail stores where as 3-5% commission will be given for the retail sellers on their sales.
Business Plan of CONTESSA INTERIOR
Operation Plan
Production
All the products will be done through our moratuwa factory. But, considering the capability
of factory, some of the production will be also outsourced at times. In addition, based on the
success of business and production ability, Contessa will be expanding its production through
establishing some other factories as well.
Quality, Research & Development
There will be a team which is responsible for ensuring quality, cutting down factory cost and
innovating ideas in the factory production.
Other equipment
Based on the success of future business of Contessa, it will be expanding its machinery and
accessories such as purchasing its own chemical treatment plant, moisture reducing plant and
other machineries.
Development Plan & Strategy
The business is planning to serve with all type of interior works under one roof. At the initial
stage, it is depending on the product brochure, corporate website and the ability & skill of the
sales people majorly. After two years, Contessa will also develop its market for other
countries through exporting home furniture, and establishing some sales outlets in near
regions.
.
Business Plan of CONTESSA INTERIOR
Risks Faced by the Business
Although the business seems to be very attractive as every enterprise this also has its own
risks. So it is very important to first identify those risks and then try to implement plans to
mitigate those risks. This will help the firm to understand the reality and focus on those that
may have a critical impact on the success of the firm and not the ordinary operating risks
faced by any business. The natural tendency is to consider what may go wrong, but equally
important is what must go right. The major risks that the firm might face are explained in the
following part.
Competitor’s response, predatory pricing
There is huge domestic rivalry for furniture industry in Srilanka. But, as Contessa is dealing
with not only furniture but also all type of interior works, it is safer for some points. In
addition, contessa will also be giving quality assurance certificates for customers to ensure
the quality. Here the competitive advantage can be achieved through focus differentiation.
Financial
The company is also exposed to financial risk as even though it is supported by Link
Engineering. But, in order to do big promotional campaigns and participate in exhibitions,
Contessa needs to be waiting for capturing business significantly and required fund.
Macroeconomic changes
As Srilanka market is open economy and full freedom after the civil war, some of the foreign
companies also expanding their business to Srilanka which will be indirectly affect the
business activities of Contessa.
Government Law & Regulations
Even though current government‟s plan is supportive for growth of Contessa as it gives lot of
opportunities in the market for the development, in the near future, there will be presidential
election which is going to be held in order to re-elect Srilanka‟s new president for next six
years. Uncertainty on the new government will have negative impact on growth of Contessa.
Business Plan of CONTESSA INTERIOR
Business Plan of CONTESSA INTERIOR
FY 2015 FY 2016 FY 2017 FY 2018
Revenue / Sales 72,577,827 178,992,313 441,433,003 1,088,667,402
Cost of Sales 61,691,153 152,143,466 375,218,053 925,367,292
Gross Profit 10,886,674 26,848,847 66,214,950 163,300,110
Expenses
Advertising & Selling 3,467,597 7,035,194 14,648,320 29,152,506
Administrative 3,944,801 7,005,373 13,518,631 26,645,148
Operating Profit 3,474,276 12,808,280 38,047,999 107,502,456
Finance Cost 1,518,480 4,681,498 8,434,714 16,307,456
Profit/Loss Before Tax 1,955,796 8,126,782 29,613,285 91,195,000
Revenue Growth rate Nil 247% 247% 247%
Gross Profit 15% 15% 15% 15%
Operating profit 4.79% 7.16% 8.62% 9.87%
Net Earnings 2.69% 4.54% 6.71% 8.38%
Financial Plan
Business Plan of CONTESSA INTERIOR
Business Plan of CONTESSA INTERIOR
Contessa (Pvt) Ltdfor the quarter ended in 3 months
Budgeted Comprehensive Statement of Income (Rs)
31-Dec-14 31-Mar-15 30-Ju-2015 30-Sep-15 31-Dec-15 31-Mar-16 30-Ju-2016 30-Sep-16 31-Dec-16 31-Mar-17 30-Ju-2017 30-Sep-17 31-Dec-17 31-Mar-18 30-Ju-2018 30-Sep-18 31-Dec-18
Revenue / Sales 10,000,000 12,531,631 15,704,178 19,679,897 24,662,121 30,905,660 38,729,833 48,534,799 60,822,020 76,219,912 95,515,983 119,697,107 150,000,000 187,974,468 235,562,671 295,198,451 369,931,812
Cost of Sales 8,500,000 10,651,887 13,348,551 16,727,912 20,962,803 26,269,811 32,920,358 41,254,579 51,698,717 64,786,925 81,188,586 101,742,541 127,500,000 159,778,298 200,228,270 250,918,684 314,442,040
Gross Profit 1,500,000 1,879,745 2,355,627 2,951,985 3,699,318 4,635,849 5,809,475 7,280,220 9,123,303 11,432,987 14,327,397 17,954,566 22,500,000 28,196,170 35,334,401 44,279,768 55,489,772
Expenses
Advertising & Selling 600,000 672,000 752,640 842,957 1,200,000 1,344,000 1,505,280 1,685,914 2,500,000 2,800,000 3,136,000 3,512,320 5,200,000 5,824,000 6,522,880 7,305,626 9,500,000
Administrative 700,000 798,000 909,720 1,037,081 1,200,000 1,368,000 1,559,520 1,777,853 2,300,000 2,622,000 2,989,080 3,407,551 4,500,000 5,130,000 5,848,200 6,666,948 9,000,000
Operating Profit 200,000 409,745 693,267 1,071,947 1,299,318 1,923,849 2,744,675 3,816,453 4,323,303 6,010,987 8,202,317 11,034,695 12,800,000 17,242,170 22,963,321 30,307,194 36,989,772
Finance Cost - - 450,000 504,000 564,480 632,218 1,200,000 1,344,000 1,505,280 1,685,914 2,000,000 2,240,000 2,508,800 2,809,856 4,000,000 4,480,000 5,017,600
Profit/Loss Before Tax 200,000 409,745 243,267 567,947 734,838 1,291,631 1,544,675 2,472,453 2,818,023 4,325,073 6,202,317 8,794,695 10,291,200 14,432,314 18,963,321 25,827,194 31,972,172
No. of Sales executives 1 2 4 6 8 10 13 16 20 25 31 39 49 61 77 96 120
Avg.Sales per salesman 10,000,000 6,265,816 3,926,045 3,279,983 3,082,765 3,090,566 2,979,218 3,033,425 3,041,101 3,048,796 3,081,161 3,069,157 3,061,224 3,081,549 3,059,255 3,074,984 3,082,765
Factory labourers 25 32 40 44 55 62 78 88 110 127 162 185 232 270 338 400 490
Production per labourer 400,000 400,000 400,000 450,000 450,000 500,000 500,000 550,000 550,000 600,000 600,000 650,000 650,000 700,000 700,000 750,000 750,000
Number of showrooms in Island 1 2 2 4 4 5 6 6 8 8 10 13 13 13 15 15 15
Buying Treatment machinery on lease on 30 June 2015 30-Jul-17
Buying heavy vehicles on lease 30-Jan-16 30-Aug-16 30-Nov-17
Diversifying Electronic items Imports from CLEI Tiles & Granite
Wooden flooring Curtaining Glass work Steel & S/S Fabrication
Laminated flooring
Business Plan of CONTESSA INTERIOR
Contessa (Pvt) Ltdfor the quarter ended in 3 months
Budgeted Comprehensive Statement of Income (Rs)
31-Dec-14 31-Mar-15 30-Ju-2015 30-Sep-15 31-Dec-15 31-Mar-16 30-Ju-2016 30-Sep-16 31-Dec-16 31-Mar-17 30-Ju-2017 30-Sep-17 31-Dec-17 31-Mar-18 30-Ju-2018 30-Sep-18 31-Dec-18
Revenue / Sales 10,000,000 12,531,631 15,704,178 19,679,897 24,662,121 30,905,660 38,729,833 48,534,799 60,822,020 76,219,912 95,515,983 119,697,107 150,000,000 187,974,468 235,562,671 295,198,451 369,931,812
Cost of Sales 8,500,000 10,651,887 13,348,551 16,727,912 20,962,803 26,269,811 32,920,358 41,254,579 51,698,717 64,786,925 81,188,586 101,742,541 127,500,000 159,778,298 200,228,270 250,918,684 314,442,040
Gross Profit 1,500,000 1,879,745 2,355,627 2,951,985 3,699,318 4,635,849 5,809,475 7,280,220 9,123,303 11,432,987 14,327,397 17,954,566 22,500,000 28,196,170 35,334,401 44,279,768 55,489,772
Expenses
Advertising & Selling 600,000 672,000 752,640 842,957 1,200,000 1,344,000 1,505,280 1,685,914 2,500,000 2,800,000 3,136,000 3,512,320 5,200,000 5,824,000 6,522,880 7,305,626 9,500,000
Administrative 700,000 798,000 909,720 1,037,081 1,200,000 1,368,000 1,559,520 1,777,853 2,300,000 2,622,000 2,989,080 3,407,551 4,500,000 5,130,000 5,848,200 6,666,948 9,000,000
Operating Profit 200,000 409,745 693,267 1,071,947 1,299,318 1,923,849 2,744,675 3,816,453 4,323,303 6,010,987 8,202,317 11,034,695 12,800,000 17,242,170 22,963,321 30,307,194 36,989,772
Finance Cost - - 450,000 504,000 564,480 632,218 1,200,000 1,344,000 1,505,280 1,685,914 2,000,000 2,240,000 2,508,800 2,809,856 4,000,000 4,480,000 5,017,600
Profit/Loss Before Tax 200,000 409,745 243,267 567,947 734,838 1,291,631 1,544,675 2,472,453 2,818,023 4,325,073 6,202,317 8,794,695 10,291,200 14,432,314 18,963,321 25,827,194 31,972,172
No. of Sales executives 1 2 4 6 8 10 13 16 20 25 31 39 49 61 77 96 120
Avg.Sales per salesman 10,000,000 6,265,816 3,926,045 3,279,983 3,082,765 3,090,566 2,979,218 3,033,425 3,041,101 3,048,796 3,081,161 3,069,157 3,061,224 3,081,549 3,059,255 3,074,984 3,082,765
Factory labourers 25 32 40 44 55 62 78 88 110 127 162 185 232 270 338 400 490
Production per labourer 400,000 400,000 400,000 450,000 450,000 500,000 500,000 550,000 550,000 600,000 600,000 650,000 650,000 700,000 700,000 750,000 750,000
Number of showrooms in Island 1 2 2 4 4 5 6 6 8 8 10 13 13 13 15 15 15
Buying Treatment machinery on lease on 30 June 2015 30-Jul-17
Buying heavy vehicles on lease 30-Jan-16 30-Aug-16 30-Nov-17
Diversifying Electronic items Imports from CLEI Tiles & Granite
Wooden flooring Curtaining Glass work Steel & S/S Fabrication
Laminated flooring
Business Plan of CONTESSA INTERIOR
31-Dec-14 31-Mar-15 30-Ju-2015 30-Sep-15 31-Dec-15 31-Mar-16 30-Ju-2016 30-Sep-16 31-Dec-16 31-Mar-17 30-Ju-2017 30-Sep-17 31-Dec-17 31-Mar-18 30-Ju-2018 30-Sep-18 31-Dec-18
Pantry Cupboards 3,000,000 3,000,000 4,004,178 4,079,897 4,062,121 4,505,660 4,913,333 5,600,719 6,021,610 6,322,691 6,639,803 6,971,793 7,320,383 7,686,402 8,070,722 8,474,258 8,897,971
Office Interior 4,500,000 4,500,000 5,000,000 6,000,000 7,700,000 9,200,000 11,224,000 14,000,000 17,080,000 20,837,600 25,421,872 31,014,684 37,837,914 46,162,255 56,317,952 68,707,901 83,823,639
Aluminium products 1,500,000 2,000,000 2,500,000 2,800,000 3,200,000 4,500,000 5,600,000 6,800,000 8,324,000 9,822,320 11,590,338 13,676,598 16,138,386 19,043,296 22,471,089 26,515,885 31,288,744
Other wooden items 1,000,000 1,431,631 1,400,000 1,800,000 2,400,000 2,900,000 3,335,000 4,000,000 4,850,000 5,577,500 6,414,125 7,376,244 8,482,680 9,755,082 11,218,345 12,901,096 14,836,261
Wooden flooring - 1,000,000 1,500,000 1,800,000 2,000,000 2,500,000 3,075,000 3,967,000 4,879,410 6,001,674 7,382,059 9,079,933 11,168,318 13,737,031 16,896,548 20,782,754 25,562,787
Laminated Wooden - - - 700,000 1,000,000 1,300,000 1,625,000 2,100,000 2,850,000 3,562,500 4,453,125 5,566,406 6,958,008 8,697,510 10,871,887 13,589,859 16,987,324
Marbles & Granite - - - - 800,000 950,000 1,064,000 1,400,000 1,850,000 2,072,000 2,320,640 2,599,117 2,911,011 3,260,332 3,651,572 4,089,761 4,580,532
Glass work - - - - 300,000 350,000 395,500 480,000 665,000 751,450 849,139 959,527 1,084,265 1,225,219 1,384,498 1,564,483 1,767,865
CLEI products - - 700,000 1,200,000 1,650,000 2,800,000 4,116,000 6,050,520 8,970,000 14,810,117 22,583,273 32,854,914 46,343,836 63,968,102 86,897,471 116,620,883 155,031,802
Curtaining & Carpets - - - 300,000 350,000 400,000 492,000 605,160 850,000 1,045,500 1,285,965 1,581,737 1,945,536 2,393,010 2,943,402 3,620,385 4,453,073
Steel & S/S Fabrication - - - - - - 1,000,000 1,150,000 1,282,000 1,384,560 1,495,325 1,614,951 1,744,147 1,883,679 2,034,373 2,197,123 2,372,893
Electronic items - 600,000 600,000 1,000,000 1,200,000 1,500,000 1,890,000 2,381,400 3,200,000 4,032,000 5,080,320 6,401,203 8,065,516 10,162,550 12,804,813 16,134,065 20,328,922
Gross Revenue 10,000,000 12,531,631 15,704,178 19,679,897 24,662,121 30,905,660 38,729,833 48,534,799 60,822,020 76,219,912 95,515,983 119,697,107 150,000,000 187,974,468 235,562,671 295,198,451 369,931,812
Business Plan of CONTESSA INTERIOR
31-Dec-14 31-Mar-15 30-Ju-2015 30-Sep-15 31-Dec-15 31-Mar-16 30-Ju-2016 30-Sep-16 31-Dec-16 31-Mar-17 30-Ju-2017 30-Sep-17 31-Dec-17 31-Mar-18 30-Ju-2018 30-Sep-18 31-Dec-18
Pantry Cupboards 3,000,000 3,000,000 4,004,178 4,079,897 4,062,121 4,505,660 4,913,333 5,600,719 6,021,610 6,322,691 6,639,803 6,971,793 7,320,383 7,686,402 8,070,722 8,474,258 8,897,971
Office Interior 4,500,000 4,500,000 5,000,000 6,000,000 7,700,000 9,200,000 11,224,000 14,000,000 17,080,000 20,837,600 25,421,872 31,014,684 37,837,914 46,162,255 56,317,952 68,707,901 83,823,639
Aluminium products 1,500,000 2,000,000 2,500,000 2,800,000 3,200,000 4,500,000 5,600,000 6,800,000 8,324,000 9,822,320 11,590,338 13,676,598 16,138,386 19,043,296 22,471,089 26,515,885 31,288,744
Other wooden items 1,000,000 1,431,631 1,400,000 1,800,000 2,400,000 2,900,000 3,335,000 4,000,000 4,850,000 5,577,500 6,414,125 7,376,244 8,482,680 9,755,082 11,218,345 12,901,096 14,836,261
Wooden flooring - 1,000,000 1,500,000 1,800,000 2,000,000 2,500,000 3,075,000 3,967,000 4,879,410 6,001,674 7,382,059 9,079,933 11,168,318 13,737,031 16,896,548 20,782,754 25,562,787
Laminated Wooden - - - 700,000 1,000,000 1,300,000 1,625,000 2,100,000 2,850,000 3,562,500 4,453,125 5,566,406 6,958,008 8,697,510 10,871,887 13,589,859 16,987,324
Marbles & Granite - - - - 800,000 950,000 1,064,000 1,400,000 1,850,000 2,072,000 2,320,640 2,599,117 2,911,011 3,260,332 3,651,572 4,089,761 4,580,532
Glass work - - - - 300,000 350,000 395,500 480,000 665,000 751,450 849,139 959,527 1,084,265 1,225,219 1,384,498 1,564,483 1,767,865
CLEI products - - 700,000 1,200,000 1,650,000 2,800,000 4,116,000 6,050,520 8,970,000 14,810,117 22,583,273 32,854,914 46,343,836 63,968,102 86,897,471 116,620,883 155,031,802
Curtaining & Carpets - - - 300,000 350,000 400,000 492,000 605,160 850,000 1,045,500 1,285,965 1,581,737 1,945,536 2,393,010 2,943,402 3,620,385 4,453,073
Steel & S/S Fabrication - - - - - - 1,000,000 1,150,000 1,282,000 1,384,560 1,495,325 1,614,951 1,744,147 1,883,679 2,034,373 2,197,123 2,372,893
Electronic items - 600,000 600,000 1,000,000 1,200,000 1,500,000 1,890,000 2,381,400 3,200,000 4,032,000 5,080,320 6,401,203 8,065,516 10,162,550 12,804,813 16,134,065 20,328,922
Gross Revenue 10,000,000 12,531,631 15,704,178 19,679,897 24,662,121 30,905,660 38,729,833 48,534,799 60,822,020 76,219,912 95,515,983 119,697,107 150,000,000 187,974,468 235,562,671 295,198,451 369,931,812
Business Plan of CONTESSA INTERIOR
Gap Analysis
Revenue
Rs.1 Billon Expected Growth
Market Development – North, east & other part of Srilanka
Product Development – CLEI products, Vanity Units
Diversification – Steel fabrication, wooden flooring, wall papers
Rs.36 Million Current Growth
Business Plan of CONTESSA INTERIOR
SWOT Analysis
Strengths
Availability of product catalogues
Financially supported by Link Engineering
Strong brand name in Colombo suburbs
Initial distribution is done by the company
Customer service by experienced sales staff
Creative staff dedicated to develop strategic direction
Experienced and high skilled factory labourers
Existence of well experienced 3D interiors
Weakness
Absence of technically brilliant cost accountant
Slow production
Poor access to supply management
Possibility for negative cash flows
Bargaining power of company is relatively low since we are in introductory stage
Inexperience about the interior market for current sales staff
Not sufficient sales & Q/S staff for undertaking customer handling.
Opportunities
There are several development programs all over the Island after the war.
Positive Government regulations
Access to all distribution channels
Wider market in the whole Island which we can target
Threats
Changing taste of customers in terms of Interior market
Technological advances in furniture interior
Substitute products always available in the market
Business Plan of CONTESSA INTERIOR
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