BUSINESS PLAN

Business Plan

Executive Summary

House of Dreams Furniture has been riding a growth spurt, having discovered the high-end direct mail channel that gave us a push to new potential volumes through channels. Bolstered by appearances in specialty catalogs, we were able to develop another additional channel through distributors of home equipment that sell directly to corporations. We believe that by targeting the high-end market, we can successfully occupy an emerging niche that other channels of distribution have not been able to target. With the implementation of the new marketing focus outlined in this plan, we will position our product line as the high-quality, elegant alternative to mainstream home furniture found in home supply stores. Our ability to integrate emerging technologies in our design, provide complimentary pieces for a complete set, and custom design ergonomic executive-level home furniture will provide strengths and establish a reputation of unmatched quality.

Business Plan

Situation Analysis

House of Dreams Furniture's product offerings focus on the executive level customer who has an appreciation for quality craftsmanship and materials, and wishes to integrate technology in to their home environment. Our market segments within the home furniture context include the corporate executive, small business owner, and home. We will target these markets through a variety of media including the Internet, catalog distribution, and word of mouth advertising. Because House of Dreams offers products at a high cost level, we do not wish to mass market. Rather our strategy is to make our product information readily available to that seeking quality home furniture with specific technological needs. Therefore, we will add internal catalog publishing to our existing catalog marketing programs (currently through high level channels such as Sharper Image). In addition, because our product assumes the use of computer technology, the development of websites will increase our company profile by promoting our product line in the media most appropriate to our customers.

House of Dreams Furniture occupies a specific niche within the home furniture market. Therefore, our competition does not provide comparable products, as they lack the combination of technological integration and quality in materials and craftsmanship. Our nearest competition includes Ethan Allen, Acme Computer Furniture, and ABC Manufacturing. These companies distribute their products through channels such as chain home supply stores or their own retail locations. In contrast, House of Dreams targets its potential customers based on their search for our type of product.

Market Summary

Our product is positioned very carefully: this is high-quality home furniture combining workmanship and ergonomics for the customer who understands quality, is a user of high technology equipment, and is willing to spend money on the best. Unlike the mainstream products, we do not use laminates or cheap manufacturing technology.

Our marketing strategy is based mainly on making the right information available to the right target customer. We can't afford to sell people on our expensive products, because most don't have the budget. What we really do is make sure that those who have the budget and appreciate the product know that it exists, and know where to find ...