Poppi Designs is an importer of Italian furniture serving New York. Over 10 years ago, the business was founded in New York. Since then, there have been many changes to its business strategy. This refined model allows us to import a large range of Italian furniture, and then sell it primarily to designers and retail stores that sell unfinished furniture. The principals of the company are Kate Jackson (New York) and Luca de Febonio (Rome, Italy).
Poppi understands that good furniture is very competitive and will therefore target niches to reduce competition. Generally, they will concentrate on locations out of reach of larger furniture superstores. Poppi Designs can leverage Luca’s expertise and location in Italy to manage the entire importation process. Poppi’s principal, Luca, will also be the agent in Italy.
Poppi Designs has three keys for success. The first is to build a relationship of high quality and high value with its vendors. The second key is to ensure reliable and timely delivery of their products. Reliable administration of an organization is the last key for success.
Poppi is set up as a home-based business with additional warehouse space. This arrangement is the most cost-effective, yet it will still provide the required level of service and support.
Poppi Designs will target the following market segments. Specialty retailers make up 80% of Poppi Designs’ business. This segment is growing at just 2% and has 16 potential clients. Poppi can reduce their dependence upon this niche through targeted marketing. Designers, who also have a 2.2% annual growth and have 44 potential clients, are the second segment. Unfinished furniture retailers, which are growing at 2% annually, have a potential market size of 50.
Markets are less about brand equity than they are about the product and service provider. It is very important to the customer to touch and feel the product. The salesperson is also important in the transaction. Poppi benefits from these realities as they are able pick and choose from multiple manufacturers instead of having to only sell products to one manufacturer.
A Sales Strategy
The sales strategy relies on direct sales calls to all market segments, except interior designers. Kate Jackson is the owner and must make the sales calls based on her expertise and knowledge of competitors and the products. Experience has proven that the more time she devotes to sales, the more sales result. The search for a full-time team member should be made as soon and as quickly as possible. Without this person, too much of Kate’s time is deflected away from her major task of selling.
Poppi Designs is a well-focused business strategy that will help it achieve profitability by month 2. Conservative forecasts indicate that sales will be almost double from year one to year three. Net profits will increase in proportion.
Poppi Designs’ objectives are:
- To put in place adequate, and reliable, administrative machinery, allowing the owner to spend her time selling and maintaining major accounts.
- Poppi intends to concentrate his efforts in a select market sector that has been investigated and proven promising.
- To improve the reliability and timeliness of shipments from Italy.
Poppi’s mission is to supply certain market niches for chairs and other furniture items which are, for a variety of reasons, not well served by the large domestic manufacturers. Poppi Designs’ owner uses her interior design experience, her knowledge in furniture retail, and her connections in Italy to customize her products for these market niches.
1.3 Keys of Success
Poppi Designs’â€™s business is a success story.
- The ability to offer items with a high quality/value ratio that are not readily available elsewhere. This is vital for the survival of the niche markets mentioned in the mission statement.
- Delivery on time and reliable. Poppi must deliver on its promises. This is because Italian business is very different from other countries. It requires long-term planning to schedule orders and take into consideration Italian holidays.