Business Plan

we decorate your lifestyle
Leaf Interior & Exterior Pvt. Ltd.
1. EXECUTIVE SUMMARY
Leaf Interior & Exterior Pvt. Ltd. will be formed as an interior and exterior company that
specializes in furnishing interior and exterior solutions. The founders of the Company is
Mr. Rajesh Shrestha, Miss Unnati Shrestha, Miss Aarati Shrestha, Miss Ashma Katwal,
Miss Surakshya k.c with their joint investment.
LEAF focuses on providing customers with a complete solution to all their current and
future need of interior and exterior needs.
The main objective of this Business Plan is to conduct the Marketing Research analysis
and develop plans, policies and strategies for implementing them and sustain in the long
run.
This proposal pictures on various segments:
The product and services that LEAF will offer
The market analysis including existing environmental scanning, market

segmentation and targeting, and business analysis
The strategy and its implementation
The management team and the personnel plan
Finally, the financial plan covering break-even analysis, projected income

statement and the balance sheet.
1.1. MISSION STATEMENT

The mission of LEAF is to provide customers with a complete solution to all their
current and future need of interior and the exterior needs.
LEAF will establish a reputation for quality work and plans to continue to enhance
its image in the industry. The company seeks to become a well-known and respected
provider of advanced solutions of interior and the exterior by:
Increasing service offerings.

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Increasing availability and accessibility to current and future customers.
Creating innovative, unique, and cost-effective solutions to problems currently

faced by customers.
Coming up with several ideas for the perfect home.
More satisfaction in a limited medium price.
1.2. OBJECTIVES
The major objective of the LEAF is to provide customized services to the clients
based on their service needs, maintaining long term relationship.
The specific objectives are:
Capture more than 7 clients on a year.
Establish a proposal acceptance rate at 30%.
Conduct marketing strategy on the basis of extensive marketing research.
1.3. KEY TO SUCCESS
Marketing power. We need to have our products on the shelves with attractive
packaging and enough marketing power to maintain a 30% or more market share.
Products/ Services quality and customer satisfaction. Everything we sell is

guaranteed, so the products/ services have to do what we promise and well.
Long-term customer satisfaction is critical to our survival.
The right management team, with strong foundations in marketing, management,

and finance. Enough working capital to survive in the working-capital-intensive
environment.
2. COMPANY SUMMARY
2.1. COMPANY INTRODUCTION:
LEAF Interior & Exterior Pvt. Ltd. will be Partnership Company formed under
Nepal Partnership Act 2020 established in May 2011. The founder and C.E.O. of the
Company is Mr. Rajesh Shrestha with the joint investment of the partners. It will be
one of the Leafst interior & exterior decorator companies with location at New
Baneshwor, Kathmandu. The Company will provide solutions for interior and
exterior views.
The basic goal of this plan is to extend the reach of the store to others outside the
area and add to the revenue base. LEAF is a company driven to provide customers
with a complete solution to their entire current and future need of interior & exterior
solutions. The company's customer base includes all consumers and all small- to
medium-sized businesses, including small to big houses.
LEAF benefits from several strategic alliances by receiving very competitive pricing
on most services, allowing the company to offer competitive pricing on its services
to customers. Competitive threats come from other interior & exterior organizations
located in or around Kathmandu, including the following companies: Style Interior,
Interior International, Sweet Home, etc. Most competitors offer solutions for interior
or some part of the house but we at LEAF deal with interior & exterior of the house,
we guarantee perfect customer satisfaction. With the rise of several interior and the
exterior organization, LEAF will focus to give the customer a very new and
innovative way of making home or any organization look comfortable in any
mentioned way.
LEAF will have a world-class management team with direct knowledge of the
interior and the exterior industry, extensive research experience, and unique
administration skills. It will include the most experience employees.

2.2. LOCATION OF THE COMPANY
The Company will be located at New Baneshwor with office at Baneshwor Complex
#105, allocating 1000 square feet. The office system will be situated at the ground
floor of the Complex. The Company pays Rs. 25,000.00 per month as rental charge.
The Company has already signed the rental agreement of Rs. 75,000.00 for three
months in advance.
The address of the Company is given as:
LEAF Interior & Exterior Pvt. Ltd.
#105 RARA Complex
New Baneshwor
Kathmandu
Phone No. 01-4870403, 4780404
Facsimile: 977-1-4780405
P.O. Box: 9878
E-mail: info@Leaf.com.np
URL: http://www.Leaf.com.np
3. PRODUCTS & SERVICES

LEAF will currently focus on the interior parts of home or any organization, by the end
of this year it will even come up with setting up several home plans that includes map of
the house, the required materials for the house, etc. The company will have access of the
website, the customer can have a easy access over the organization through the medium
of the website.
All services are competitively price and targeted to small earning customers as well. As
by the changing world everyone wants to make their living environment look good. The
main target of LEAF is to cope up with the medium earning families as well. LEAF will
also target businesses and small office/home office (SOHO) customers. LEAF feels that
this market segment has largely been neglected because of the amount of "hand-holding"
required by this segment, and the inability to pay the astronomical fees charged by many
other interior and the exterior organizations. By working to simplify the creation,
management, and support of our services, the company will enable customers to feel
more comfortable and relaxed when they reach home or to their work place. This will
make our customer more reliable towards us. With one customer satisfied with our
service, it will help us attract ten more customers. So we at LEAF will never ignore any
type of work that comes in our hand. We always will be more willing to take any type of
work that comes to us. This will help us to attract more customers to us.
With current facilities, the company can do the following:
Handle many customers.

Make them more attracted towards the organization
Make them understand the importance
Provide service of any kind.
3.1. SERVICE DESCRIPTION

LEAF is an innovative, full-service of in offering interior and exterior solutions. The
company allows people and companies to access the perfect example of a house or a
work place. The organization will be at a tip toe in order to help the customers at any
mentioned time. LEAF comes up with several guarantees and warrantees of their job
done. The company provides many of the services that customers need to get on
time. The company provides both interior and consulting on topics ranging from
house to the office. The company has ongoing research and development to provide
solutions to current customer issues (placement of tables, bathrooms, etc.) and to
develop new ideas and services which enable the company to enter and compete in
new markets and attract new customers.
LEAF selects products and services which meet the following criterion:
Benefit to customers/company: The product/ services must materially benefit the

customer or the company in some way. This may manifest itself as a side benefit,
an improvement on current services, or additional revenue stream to the company.
Cost/benefit ratio: The benefits realized must be at least as great as the cost of
implementation, production, and maintenance of the product.
Maintainability: The product and the service must be maintainable by LEAF

Interiors & Exteriors personnel. The company will maintain and look over the
complaints for the first six to eight month, according to the type of work done.
LEAF makes a concerted effort to keep customers informed and to remedy problems
in the shortest possible times. The company will continue to make high quality
support one of its primary goals. LEAF offers telephone support during extended
business hours (10 a.m. to 8 p.m.). The customers can also contact us through the
website and e-mail address. This will be a very easy means to get to us in a short
possible time.
3.2. FULFILLMENT
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Currently, all products and services are implementation-dependent, i.e., the customer
can buy and place according to their requirements. LEAF will extend the
functionality of product, and release those changes back to the development
community. The company's usage policy states that it will refund a portion of the
customers' fee if there is the same problem repeated continuously. The company will
make sure, and do a proper research for the problem. The company gives technical
advice to customers and technical support in case of small errors. The way to make
things clean, etc. And other important services which are offered by LEAF at no cost
to our clients.
3.3. FUTURE SERVICES

LEAF in the future will plan to extend its branch outside the valley. The need of the
interior and exterior has been a very common concept outside the valley. Many
people today are getting used to these changes. They can fulfill these changes
through the medium of LEAF as we extend our branch outside the valley. LEAF will
plan the proper house plan, make several outline design map for the perfect house or
big complex as well.
4. MARKET ANALYSIS SUMMARY

Our marketing strategy is based on becoming the resource of choice for people looking
for decorator solutions for creating look in their home and offices. Our marketing strategy
is based on superior performance in the following areas:
Product selection
Product Quality
Customer service and responsiveness.
Our marketing strategy will create interests, awareness, and appeal from target market for
what LEAF offers our customers.
4.1. ENVIRONMENTAL SCANNING

In the first phase of the Marketing Plan, the environmental scanning is conducted.
The situational analysis is conducted for existing and new situation. The
environmental scanning provides the internal and external environment affecting the
organization. This phase includes following activities:
1. Analysis of Internal environment
2. Analysis of External environment
The descriptions of above activities are provided as under:
4.1.1 ANALYSIS OF INTERNAL ENVIRONMENT
The Internal or Micro environment consists of conditions and forces within the
organization that affect the performance and outcomes of marketing. It is
within the organization. It provides strength and weakness of the organization.
The components of the micro environment consist of:

i.
Goals, policies and strategies: The organizations will have the primary
goal of achieving profit and have profitable relationship with other
members in the long run. Beside the secondary goals consists of:
Increasing its market share
Employee welfare, and
Fulfilling social responsibility
The Company has policies and guidelines which are need for marketing
decision making. These policies are the channel effort towards goal
achievement and guidelines for future courses of action. The major policies are
outlined as:
Increase the market share every year by 15%
Maintain long term relationship with the customers
Working in TEAMS is crucial for the job done
Provide various benefits to the employees based on their

performance
The Company will fulfill its societal obligations by

providing funding to the necessary association and participates in societal
programmes.
The Company will develop and follows its strategies for achieving goals.
Action plans are developed by the personnel. The company follows its
operations according to the action plan. Various planning approaches are
followed to develop the action plans (such as the Gantt chart, Need and
Trend Analysis, Log Frame approach, etc.) Strategy formulation is done to
recognize customers and for profitable interactions that helps to have a
competitive advantage over the competitors.
It targets to turn visitors into buyers and buyers into repeated

buyers, and also to focus on the best customers.
Formulating referral were programs to collect customer data, and

share services.
In nutshell, the Marketing operate within the framework of goals, policies

and the strategies.
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ii.
Organizational culture: The culture of the Company encompasses

shared values, norms, beliefs, customs, symbols and artifacts that guide
members behavior in the organizations. The culture is reflected by
following characteristics:
The Company will maintain the mutuality of interests

among owners, managers and the employees
The Company will maintain collaboration and team spirit

among employees.
The Company will take risks and is innovative
The
Company
will
avoid
conflicts
through
open
communication
The Company will provide autonomy in work
The Company will be human-focused and have faith in

employees
The Company will provide performance-based reward

system
In nutshell, the Marketing operate within the framework of organizational

culture.
iii.
Organizational resources: The resources of LEAF are/ will be:
Physical and Tangible such as equipments, assets and

furniture
Financial resources of monetary and non-monetary values
Human resources such as top level executives, middle level

personnel and lower level staffs
Informational
resources
regarding
information
of
governmental and non-governmental bodies, their strength, weakness and

the competitive advantage factors.
In nutshell, the Marketing operate within the constraints of resources.
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iv.
Organizational structure: Structure is the design of jobs and

relationships. The Company will maintain its structure by formally
dividing the jobs, grouping them and coordinating them. The Company is
concerned with:
Differentiation: Division of activities to the employees

based on their skills and performance. Job match and Job design issues are
considered.
Integration: It includes coordination of the efforts of the

employees.
The Company maintains its structure through,

o Specialization in jobs
o Decentralization to various departments viz. Finance, Marketing
and Technical departments (i.e. focused on departmentalization).
o Chain of command and Span of control
In nutshell, the marketing activities of LEAF are greatly influenced by

structure. Therefore, it is carried out within the boundary of the
organizational structure.
4.1.2 ANALYSIS OF EXTERNAL ENVIRONMENT:
The External environment needs to be analyzed because it cannot be
controlled by marketing, and it greatly influences the marketing. As such, the
research outlined the opportunities, threats and the environmental forces.
The environmental forces that would affect LEAF are sub-divided into:
i. Task environment: It comprises of forces that are immediately relevant
for achievement of the goals of marketing. The Task environment is made
up of stakeholders, who have stake in the performance of marketing.
The component includes:
Customers: The customers of LEAF will include:
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o Individual consumers who wants interior solutions with

accessories decorator. They are individuals and households
users.
o Business consumers, who wants comprehensive solutions for
office environment. They are SME and SOHO.
o Institutions who wants comprehensive setup of the whole
organization. They are the banks, NGOs and INGO.
Suppliers: The suppliers of LEAF includes:

o Kantipur Homes
o Inland Views and
o BIRA Furniture
Competitors: Competition is everywhere. LEAF suffer from Market

Competition, where many Companies are engaged in providing
interior and exterior services. Such Companies are the major
competitors for the Company :
o Sarosh and Associates
o Interior International
o Sweet Home
o Style Interior
o Mind Spring
Financial Institutions: LEAF depends upon financial institutions for

supply of funds and insurance of risks. Such institutions are:
o Nepal Investment Bank Ltd, and
o Kumari Bank
The policies and actions of these institutions directly influence the
marketing. As such, the Company will maintain cordial working
relationships with them.
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Media: The marketing of LEAF will handle different media

organization through a variety of public relations programmes to
protect image and its services. These Medias will be newspapers,
magazines, FM, radios and website marketing such as Quality
Printing, Digital e-media, Hits F.M., Kantipur F.M., Boss Magazine,
Wave Magazine, and the like
ii. General environment: It is the set of broad forces in marketings

surroundings. It is located outside the marketing and cannot be controlled.
It influences the marketing activities by providing opportunities and
threats. It consists of:
Political legal: The Company is/ will be affected by the political and
legal forces.
i. The
political
institutions
like
Legislature
(Parliament),
Executive (Govt.) and Judiciary (Courts of law) have the

important role in implementing laws, policies, rules and
regulations.
ii. The Legal force in Nepal consists of an array of laws, rules,
regulations, institutions and processes. what the Company and
marketing can do and cannot do. The legal framework that
influences the Company are:
a. Company Act, 2053 5060
b. Industrial Enterprise Act,2049
c. Foreign Investment & Technology Transfer Act,
2049
d. Value Added Tax Act, 2052
e. Export and Import (Control) Act, 2013
f. Contract Act, 2056 and others
Economic: The economic forces consist of all the economic

surroundings that influence the company.
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i. The Economic system of the Nepal is mixed: both public and

private sectors. Both play strategic role in the nation. Nepal has
implemented nine long term development plans.
ii. The Economic Policies comprises of Fiscal, Monetary, Trade,
Industrial and Privatization policies. Due to the high inflation
rate, VAT problem, trade deficit the economic conditions is
getting weaker.
Socio cultural: Social forces refer to all the social surroundings that
influence Nepalese marketing. The Company operates within the
Nepalese society. They exist to satisfy societal needs. Social forces
influence the policies, practices and activities of the Company.
Important social forces influencing the Company are:
i. Demographics forces like human population and its distribution
affects the company for men and women employment.
ii. Social institutions consisting of family, reference groups and
social class influence the Company.
iii. Social changes in terms of buying behavior of the customer,
their lifestyles influence the Companys practices.
iv. Cultural forces like knowledge, customs, traditions, attitudes,
values, beliefs, religion, language, symbols, and work of arts
and architecture affects the Company.
Technological: The introduction of the Information Technology had

made revolution and evolution in every discipline. Technological
forces refer to all technological surroundings that influence Nepalese
marketing. They consists of;
i. Labor-based and Capital-intensive technology affects the level
of technology of the Company
ii. The pace of technological change is accelerating. The Company
will be able to adopt the technological change and continuously
upgrade the skills of human resources to handle technology.
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iii. The transfer of technology from technologically advanced

foreign countries like Japan, Hong Kong and China are the
major sources for the Company for trading and for its
operations.
4.2. MARKET SEGMENTATION

The market segment of LEAF is basically focused on the niche segment wherein,
the segment is divided into the subsegments. The market of the Company is
segmented on following basis:
4.2.1.
DEMOGRAPHIC SEGMENTATION
The demographic segment of LEAF is divided into following basis:
Size of the Customers: Every industry contains various sizes of customers

in terms of orders The basis for size of customers are:
o Small size units contains SOHO,
o Medium size units includes Small & Medium Enterprises (SME)
and
o Large size units contains Corporations and Big Business
enterprises
Type of Industry: Industrial markets consist of a range of industries, which

require different market mixes. They will be segmented on the basis of:
o SOHO
o SME, &
o Corporations, NGOs and INGO.
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On the basis of Packages: Platinum Package for Corporation, Golden

Package for SME, and Silver Package for SOHO and personal household.
4.2.2.
GEOGRAPHIC SEGMENTATION
The geographic segment of LEAF is concerned with providing services to

area wise geographical units. For a year, the Company is focused on providing
products and services to following district-wise segments viz.,
4.2.3.
Kathmandu Valley,
Bhaktapur and
Lalitpur
OPERATING VARIABLES
The Company has focused on segmenting the market on the basis of the
operating variables, which includes:
Technology: The current technology they fall under and the new, they
want to migrate. Such as, manual or automated.
Benefits & Service Needs: The customers seeks for benefits & services
like
o After sales service
o Before sales service
o Warranty and Guarantee
4.3. TARGET MARKET SEGMENT STRATEGY

The company's customer base includes all consumers and all small- to medium-sized
businesses, including start-ups. The company plans to concentrate on SOHO clients,
as these are perfect targets for our new high-speed offerings, and hold the greatest
growth potential for the company. LEAF feels that these market segments have
special pricing and service needs, and make more dedicated, reliable customers. The
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companys major targets are the house wifes who intended to make there house look
catchier and go with the changes of the 21st century.
The Company will focus on two factors for evaluating the segments:
The segments overall attractiveness including size, growth, profitability and low
risk
The Companys objectives and resources
The Company will follow the following patterns for selecting target market:
Single segment coverage strategy: The Company will concentrate on single

segment namely, SOHO and personal household groups. The Company will
develop marketing mixes for single segment.
Concentrated Market coverage strategy: In this strategy, the Company will look
for a few submarkets. Related marketing mixes are served.
Market Needs: The Company will look after the market needs and wants. The
customer base is selected based on the needs. Their needs and wants are to have
reliable providers of expertise.
Market Trends: One important trend is to have greater sales in nation wide. But,
it will take a long term time frame and includes extensive marketing research.
Another important trend is the one toward greater use of specialized and focused
consultants, instead of in-house resources. Companies are looking for more outsourcing and, in general, a preference for variable costs instead of fixed costs.
Market Growth: The market for interior and exterior decoration has been
growing at approximately 15% 20 % during the past three years. This level of
growth applies presumably to our related products/ services. In our market
analysis, we suggest growth in the number of potential customers between six
and seven percent per year.
4.4. SERVICE BUSINESS ANALYSIS

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The following sub-topics look at the size and concentration of businesses in this
group, the way services are bought and sold, and specific competitors.
4.4.1.
BUSINESS PARTICIPANTS
The company is competing in the low-cost interior and exterior hosting niche
of the industry. The industry is moving in the direction of a fusion of being
more and more customers oriented. The company will come up with several
new plans of there as well in order to help the customers. The alternative is to
be a content service provider. This is a less desirable position as it leaves the
company too much at the whim of the public and forces the company to renew
its efforts continuously to provide usable content.
The business participants of LEAF will be profiled on the basis of their
product/ services and revenue base:
Kantipur Homes: They provide interior services and the annual revenue
comprises of Rs. 85 lakhs with annual turnover of Rs. 5.7 crore.
BIRA Furniture: The Company is market leader in providing office

furniture and parquets solutions. This Company is vertically integrated
with LEAF. Our Company basically obtains and procures office furniture
and parquets from them. The annual turnover of the Company comprises
of approximately Rs. 25 crore.
Inland Views: The Company basically provides interior cum exterior

solutions. They also provide accessories for decorating interior views
which includes designer glasses, paints, aluminum jackets, plasters and the
like. The annual turnover of the Company is more than Rs. 9.5 crore.
4.4.2.
COMPETITION AND BUYING PATTERNS
LEAF believes that its customers choose its products and services based on
the following criteria:
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Price: The customers prefer for low priced products and services. But,
the price in not only thing that can differentiate the product/ services.
Many organizations provide such products/ services in lower price. Other
factors like quality and response time is most. As such, the customers
should be aware of the price, quality and the response time.
Experience: The customers should select products/ services based on the

experienced expertise that the Company is providing.
Reputation: The customers should select products/ services from the

reputed organizations. Some organizations are rewarded for their quality
standards they maintain, described by the ISO standard.
Service: The services provided by the existing decorator companies

should be carefully considered. The benefits that the customer sought for
should not be overlooked. They demand for:
o After sales service
o Before sales service
o Warranty and Guarantee
Accessibility: The organization should be accessible for the customers in

terms of transportation, communication and facilities.
4.4.3.
MAIN COMPETITORS
Competitive threats come from other interior and exterior organizations. It

includes the following companies:
Sarosh and Associates: This Company is one of the market leader in

South Asia Region for providing interior and exterior solutions. The
Company had provided its solutions to many Nationals and MultiNationals Companies. The Company has largest market share with
optimum resources and capabilities. The Company follows market
leader strategies.
Style Interior: This is one of the emerging interior solutions providers

that focus on providing at cut-throat rate and falls in the category of
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the industry competitor. The Company has very low market share. The
Company follows market niche and follower strategies.
Interior International: This is the host organization operating in

Kathmandu valley. The head office is situated at Singapore. This
organization has its operations in large scale. The Company provides
its solutions to abroad countries, therefore, creating competition for
home organizations. The Company has more than 45% of the market
share. This Company follows market challenger strategies.
Sweet Home: This organization has its branch offices in five major
districts of the Nepal. The Company imports its inputs from our
neighboring country India and China, as such, incurring high costs.
The Company is recognized in providing innovative solutions. The
Company utilizes its optimum resources and covers a substantial
percent of market share. The Company follows market follower and
challenger strategies.
Mind spring: This is one of the newly established interior solutions

provider company. The Company is affected by the threat of intense
segment rivalry. As such, the Company is focused only on niche
segment and is merely a form and stochastic competitor. The Company
has nominal amount of the clients. The Company follows market niche
strategies.
Based on the above analysis (Companys market share, resources, capabilities,

strengths and weaknesses), these competitors can be categorized on the basis
of:
Category
Competitors Name
Dominant
Sarosh and Associates
Strong
Interior International,
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4.4.4.
Favorable
Sweet Home
Tenable
Style Interior
Weak
Mind Spring
Non-viable
N/A
OVERCOME MEASURES OF RISK
The company recognizes that it is subject to both market and industry risks.
Possible problems caused by a sudden increase in regulation by local, State, or
Federal authorities. One way the company can reduce this risk is to diversify
into several different, but related, business areas. Aggressive or monopolistic
pricing by large or heavily-funded providers will be monitored and respective
strategies will be implemented.
By holding prices down, it becomes difficult for competitors to "lowball" the company.
By diversifying, we can protect business in one area by bundling it

with offerings from another area, meeting the needs of the customers
and strengthening their ties to the company.
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5. STRATEGY AND IMPLEMENTATION SUMMARY

Our strategy is based on serving niche and district markets well. The valley is full of
small and medium-sized businesses that can't get good products or services from the
major vendors who focus on high-volume orders only.
Focus:
What begins as a customized version of a standard product, tailored to the needs

of a local business, can eventually become a niche product that will fit the needs
of similar businesses across the country.
We are building our marketing infrastructure so that we can eventually reach

specific kinds of businesses across broad geographic lines.
We focus on satisfying the needs of small and medium business.
We focus on follow-on technology that we can take to the masses, not leadingedge technology that aims at the experts and volume leaders.
5.1. STRATEGY PYRAMIDS

Our main strategy at sample is to position ourselves at the top of the quality scale,
featuring our combination of superb technology and Leaf innovative way of doing
things, for the customers who wants the best quality regardless of price. Tactics
underneath that strategy include research and development related to new designs
and new technology, and communicating our quality and service position to the
market. The major focuses are mainly those listed in the milestones table, including
research methodology, new design, new equipment to keep up with design, and new
and innovative way of doing things.
5.2. VALUE PROPOSITION
LEAF gives the discriminating customers, who cares about design and quality and
needs perfect quality of work at a fair price.
5.3. COMPETITIVE EDGE
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Our competitive edge is our innovative way of doing things, our knowledge of the
work, and our long-term commitment to customer satisfaction.
5.4. MARKETING AND SALES STRATEGY

LEAFs strategy is to achieve name recognition and attract customers by
aggressively pricing its services. Once customers have been acquired, the company
will seek to offer them additional services which will increase margins and provide
them with useful solutions they would not otherwise find. The company will also
implement a low-cost strategy. This will be achieved by working to establish and
develop agreements with local media companies to exchange services for discounted
advertising and other exposures.
LEAF
market strategy is to build on its core portfolio of products and services
using the company's expertise in the interior and exterior industry. The company will
leverage its discounted services to help provide secondary income streams. For
instance, the company plans to launch free seminar about the importance of the
interior and exterior services, and other similar services which will attract current
and potential customers to our organization. The people coming for the seminar will
be used to generate advertising revenue, as well as increase exposure of our own
products and services. LEAF will be able to excel in the market because the
company is small, highly focused, and motivated. The company can respond quickly
to changing opportunities and take advantage of the latest technologies.
The company plans to expand its marketing efforts, service offerings, and
production. It is anticipated that additional services will be offered and more
personnel will be hired for the perfection in the work.
Following marketing and sales strategies will be followed:
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5.4.1.
POSITIONING STRATEGY
Our Company has the Unique Selling Proposition (USP) as We decorate

your lifestyle. Our Company will face many differentiation opportunities
with high pay off, i.e., specializing in the industry segment. Our Company can
differentiate its market offering along four dimensions that are product,
services, personnel, and image.
Product differentiation: The Company will differentiate its products from

its competitor in terms of:
Form
Feature
Conformance quality
Performance quality
Durability
Reliability
Style and
Design
Service Differentiation: For differentiating the services, the Company

provides value addition to the services and improving the quality.
Ordering ease
Delivery
Installation
Post/ Pre sales service
Warranty and Guarantee
Personnel Differentiation: The Company aims to gain a strong competitive

advantage through having better-trained people, consisting distinctive
characteristics:
Competence
Reliability
Courtesy
Responsiveness and
Credibility
Communication
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Image Differentiation: The Company will establish an effective image

through creating the products character and value proposition; and
conveying this character in a distinctive way so as not to confuse it with
competitors; and delivers emotional power beyond mental image. The
basis are:
5.4.2.
Symbols
Media
Atmosphere and
events
PRICING STRATEGY
Our pricing is determined by our focus on the way customers provide us the
work. We aim at the consumer market with prices intended to generate the
most suitable price for the customer. We provide services and the product on
the most affordable price. This may sound good for the customers, and may be
satisfactory to us and the customers. We do not expect to change prices on any
existing products. Moreover, the pricing strategy is focused on the objective of
increasing the market share and product-quality leadership. The pricing
strategies will be:
5.4.3.
Promotional pricing
Price discounts and allowances
Product mix pricing
Optional feature pricing and
Product line pricing
PROMOTION STRATEGY
Promotion in any organization plays a great role. The promotion in context to

LEAF will be conducted through several medium. The organization will use
25
print and the television media in the promotion of the organization. Moreover,
following strategies will be implemented:
5.4.4.
Direct Marketing Strategy
Online Marketing Strategy
Print and T.V. Advertising Strategy
Sales Promotion Strategy
Public Relations Strategy and
Business and sales force promotion strategy
MARKETING PLAN
The concentrated marketing activities of LEAF focus on the business mission

and are comprehensive in nature. The following activities will be carried out
for building comprehensive marketing plan:
1. Existing situation analysis and environmental scanning
2. Marketing Research (through conducting survey)
3. Competitor Analysis
4. Buyers Analysis
5. Market Segmentation and Profiling
6. Market Targeting and Positioning
7. Marketing Mixes Analysis
8. Developing 4Ps strategies
9. Developing process strategies
26

10. Updating the Information System
11. Implementing Monitoring and Controlling activities

12. Reviving marketing plan and strategies annually
5.4.5.
SALES STRATEGY
To generate sales, the company uses sales and customer oriented approach.
Direct and online marketing are used. In online marketing, the website is used
for making it prominent. The company focuses on housewife. So the company
can publish its major advertisement in a well known womans magazine or
promote it through several soap operas.
The sales activities will be concentrated in the following categories:
Contact Campaigns. This initiative will encompass various methods of

reaching potential customers to generate interest, followed by direct
contact to potential customers.
Print Advertising. Ads will be developed and placed in several industry

publications. Magazine and brochures will be provided.
Trade Shows. The company will participate in selected local and

national shows that will provide an opportunity to develop exposure.
This is a very effective tool in creating awareness and stimulating lead
activity.
Industry Organizations and Associates. The recommendation is to join

a number of organizations that are relevant to the company as a whole.
This initiative will create awareness of the company within the industry,
and provide networking with the customers.
Telemarketing Campaign. Telemarketing activities geared to identify

qualified leads, follow-up on sales progress to the qualified leads, and
assurance that new potential contact lists of the new customers.
Promotional Giveaways. This is a traditional way of advertising a

company's name by giving something away. This will be used in
27
conjunction with community service organization fund-raising efforts

and traditional advertising.
5.5. STRATEGIC RELATIONSHIPS
LEAF will have benefits from several relationships by receiving very competitive
pricing on most of the services, allowing the company to offer competitive pricing on
its services to customers. The company will be pursuing an agreement with a local
organization to provide services which will eventually include extended medium to
attract the customers and get an easy access to the several customers coming to the
organization. LEAF will also make several agreements with several potential
customers about there services by giving them several discounts in the first round.
This will provide a simple, useful tool for organizations, businesses, and individuals
to organize, plan, announce, and track projects and events
6. MANAGEMENT SUMMARY
The Company comprises of more six personnel. The Company consists of two Leafst
interior designers and one exterior designer. Moreover, the Company recruits temporary
workers on project basis.
Management style reflects the participation of the owners. The company respects its
community of co-workers and treats all workers well. We attempt to develop and nurture
the company as community. We are not very hierarchical.
6.1. ORGANIZATIONAL STRUCTURE
The Organizational Structure consists of the mainly six directors. The following
graph shows the hierarchical relationships:
Chief
ChiefExecutive
ExecutiveOfficer
Officer
Finance
Finance
Interior
Interior
Assistant
AssistantDirector
Director
Marketing
Marketing
28
Exterior
Exterior
Fig. Organizational Structure
6.2. MANAGEMENT TEAM

The Management team comprises of all together seven personnel. They are:
Mr. Rajesh Shrestha: Founder and C.E.O. of LEAF. Mr. Rajesh Shrestha is
currently studying his BBIS, final year in Little Angels College of Management.
Miss. Aarati Shrestha: Director of Finance. She is a Chartered Accountant, under

ACCA. She had a two years work experience in handling financial activities. She
looks after all the financial activities in the Company. She has completed MBA in
Finance major with Summa de Lunde.
Miss. Unnati Shrestha: Director of Marketing. She is an MBA with Marketing

major from APEX College affiliated to Pokhara University. She had a two years
experience in Promotion and advertising interior design. She looks after all the
marketing activities in the Company.
Miss. Ashma Katwal: Director in Interior Designing. She had completed her
Master degree in Interior designing
from Delhi University. She had an
experience for 3 years.
Miss. Surakshya K.C.: Assistant Director in Interior Designing. She had

completed her Bachelor degree in Interior designing course from Namuna
College of interior design affiliated to Purbanchal University. She had sound
knowledge regarding the subject matter with 1 year working experience. She had
worked as an Intern student in Sarosh and Associates for two months.
Mr. Pratik Manandhar: Director in Exterior Designing. He is currently studying

his BBA degree, final year Lalitpur College. He had a good contacts and public
relationship with many people and companies. He had undertaken many exterior
based projects.
Miss Monika Shrestha: Receptionist. She is currently studying +2 level

(management) from Don Bosco College. She has sound English and handles the
office documents.
29
6.3. MANAGEMENT TEAM GAPS

The present team is on the learning curve and is weak on professional sales.
The present team, though strong on how to market at a high level, is short on
practical front-line marketing experience.
Product development requires a stable of entrepreneurial inventors willing to

work for royalties.
6.4. PERSONAL PLAN

The Company will provide a very conducive and sound environment for the
personnel. The Company plans to provide compensation, incentives, amenities and
bonus for its personnel. The atmosphere at work is enhanced by teambuilding
activities like parties, vacations, picnics, and the like. Moreover, the Company plans
to provide care on occupation, health and safety measures.
The Company expects to increase personnel significantly as sales increase.
7.FINANCIAL PLAN
Ideally, we would want to bring approximately Rs. 1 Crore, of equity investment from
investors compatible with our growth plan, management style, and vision, in return for
some equity ownership. But, the current investment is only of Rs. 40 Lakhs including
nominal investment from directors. We are not going to talk about specifics of a deal until
we have met the right partners. This plan does not call for equity from outside investors.
30
If and when the time for outside investors comes, we want compatible investors or no
investors at all. Compatibility means:
A fundamental respect for giving our customers value, and for maintaining a healthy
and happy workplace.

Respect for realistic forecasts, and conservative cash flow and financial management.
Cash flow as first priority, growth second, profits third.
Located in New Baneshwor, Araniko Highway.
Willingness to follow the company carefully and contribute valuable input to strategy
and implementation decisions.
Of these, only the last two are flexible.

We want to establish a mechanism for employees to acquire fair stock options that can
become valuable as the company grows.
7.1PROJECTED PROFIT AND LOSS
The following table shows that we expect to maintain gross margin but increase net profit
margin during the next five years. The single most important factor in the improving profit
margin is the economies of scale in our general and administrative expenses.
We don't expect to decrease sales and marketing expenses as a percent of sales. The interior
packages require heavy marketing expenses.
We also intend to maintain and increase the percent of revenue spent on development. By
mid 2012 we'll be spending almost 7% of sales on product development. This is the key to
our future.
The following table shows just the annual numbers. The detailed projections for mid 2012
and 2013 are provided below:
Pro Forma Profit and Loss
mid 2012
535000.00
25000.00
25000.00
75000.00
Sales
Direct Costs of Goods
Cost of Goods Sold
Gross Margin
31
2013
795000.00
21000.00
21000.00
125000.00

Operating Expenses:
Sales and Marketing Expenses:
Sales and Marketing Payroll
Advertising
Graphics
Printing
Public relations
Research
Telephone and Facsimile
Trade Shows and Events
Meals
Travel
Miscellaneous
Total Sales and Marketing Expenses
37000.00
45000.00
35000.00
18000.00
2500.00
33000.00
15000.00
0.00
4500.00
12000.00
5000.00
207000.00
48000.00
95000.00
28000.00
12000.00
4500.00
2000.00
18000.00
10000.00
8500.00
25000.00
21000.00
272000.00
General and Administrative Expenses:

General and Administrative Payroll
Online services
Insurance
Office supplies
Professional fees
Rent
Other
Other General and Administrative Expenses
Total General and Administrative Expenses
40000.00
5000.00
15000.00
1200.00
12000.00
25000.00
3500.00
0.00
101700.00
75000.00
1500.00
9500.00
1500.00
15000.00
25000.00
4000.00
0.00
131500.00
Other Expenses:
Product Development
Total Other Expenses
Total Operating Expenses
Profit Before Interest and Taxes
Interest Expense
Taxes Incurred
Net Profit
Net Profit/Sales
45000.00
45000.00
353700.00
81550.00
1875.00
35490.00
44185.00
8.25%
25000.00
25000.00
428500.00
105000.00
1500.00
29780.00
73720.00
9.25%
7.2PROJECTED CASH FLOW

The following chart is most important for illustrating our cash projections for the next 6
months. Because of our dependence on sales through direct sales, and its tendency to pay
32
slowly, there are wide variations that must be supported with working capital acquired
through short-term credit on receivables and inventory.
The table shows just the annual results, which are less significant. The key to our
business plan is the cash flow table, which also shows up as the key numbers of the
following chart.
Pro Forma Cash Flow
Mid 2012
Cash Received
Cash from Operations:
Cash Sales
Sales Tax, VAT, Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Total Cash Received
275000.00
0.00
20000.00
35000.00
0.00
0.00
215000.00
0.00
545000.00
Expenditures
Expenditures from Operations:
Cash Spending
75500.00
Payment of Accounts Payable

Sales Tax, VAT Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Total Cash Spent
41500.00
18000.00
45000.00
2500.00
105000.00
95000.00
275000.00
0.00
657500.00
Net Cash Flow

Cash Balance
(112500.00)
(110000.00)
33
7.3.PROJECTED BALANCE SHEET

The table below shows the annual balance sheet results:
Pro Forma Balance Sheet
Mid 2012
Assets
Current Assets
Cash
Accounts Receivable
Inventory
Other Current Assets
(110000.00)
0.00
232000.00
15000.00
Total Current Assets
137000
Long-term Assets
Long-term Assets
Accumulated Depreciation
675000.00
0.00
Total Long-term Assets
675000.00
Total Assets
812000.00
Liabilities and Capital

Current Liabilities
Accounts Payable
Current Borrowing
41500.00
45000.00
Total Current Liabilities
86500.00
Long-term Liabilities
Long term Bank Loan Payment
598000.00
Total Liabilities
684500.00
Paid-in Capital
Retained Earnings
Earnings
75000.00
2800.00
49700.00
Total Capital
812000.00
7.4.LOGISTICS AND OFFICE ACCESSORIES

The Company has the following logistics and office accessories:
Particulars
Quantity Rate Price
Telephone set
7
500
3500.00
Tel. Line
2 10000 20000.00
Computers
4 32800 131200.00
Samsung Laser Printer (4 in 1)
1 35000 35000.00
34

Air Conditioner
Network Switch
Network Cable
Network Accessories
Carpet (sq. mt.)
Decorating Items
1 90000 90000.00
1 1800
1800
50 m
18
900.00
15
3
45.00
580
450 261000.00
350000.00
Total Cost: 893445.00
35
8.FINDING AND CONCLUSION

Formulating business plan is very time consuming and logical process. It includes various
phases that should be followed within the time frame and within the boundary of the
organizational operations. This business plan helps me to know how marketing research
are conducted and its pros and cons. Moreover, it helps me to know the types of industry,
their objectives and strategies for achieving the marketing goals. Benchmarking the
procedures and methodology of the organization is crucial. Their competitive strength
determines the market success, characterized by the demand and supply. The market
entry strategies, mobility strategies, the process of segmentation, targeting and
positioning were understood. Finally, the research helps me to understand the market
place and identify strengths, weakness, opportunities and threats; and builds my decision
making skills.
36

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we decorate your lifestyle

Leaf Interior & Exterior Pvt. Ltd.

The product and services that LEAF will offer

The market analysis including existing environmental scanning, market

The strategy and its implementation

The management team and the personnel plan

Finally, the financial plan covering break-even analysis, projected income

1.1. MISSION STATEMENT

Increasing service offerings.

we decorate your lifestyle

Leaf Interior & Exterior Pvt. Ltd.

Increasing availability and accessibility to current and future customers.

Creating innovative, unique, and cost-effective solutions to problems currently

Coming up with several ideas for the perfect home.

More satisfaction in a limited medium price.

Capture more than 7 clients on a year.

Establish a proposal acceptance rate at 30%.

Conduct marketing strategy on the basis of extensive marketing research.

1.3. KEY TO SUCCESS

Products/ Services quality and customer satisfaction. Everything we sell is

Long-term customer satisfaction is critical to our survival.

The right management team, with strong foundations in marketing, management,

we decorate your lifestyle

Leaf Interior & Exterior Pvt. Ltd.

we decorate your lifestyle

Leaf Interior & Exterior Pvt. Ltd.

we decorate your lifestyle

Leaf Interior & Exterior Pvt. Ltd.

3. PRODUCTS & SERVICES

Handle many customers.

we decorate your lifestyle

Leaf Interior & Exterior Pvt. Ltd.

3.1. SERVICE DESCRIPTION

Benefit to customers/company: The product/ services must materially benefit the

Maintainability: The product and the service must be maintainable by LEAF

we decorate your lifestyle

Leaf Interior & Exterior Pvt. Ltd.

3.3. FUTURE SERVICES

we decorate your lifestyle

Leaf Interior & Exterior Pvt. Ltd.

4. MARKET ANALYSIS SUMMARY

Customer service and responsiveness.

4.1. ENVIRONMENTAL SCANNING

we decorate your lifestyle

Leaf Interior & Exterior Pvt. Ltd.

Increasing its market share

Employee welfare, and

Fulfilling social responsibility

Increase the market share every year by 15%

Maintain long term relationship with the customers

Working in TEAMS is crucial for the job done

Provide various benefits to the employees based on their

The Company will fulfill its societal obligations by

It targets to turn visitors into buyers and buyers into repeated

Formulating referral were programs to collect customer data, and

In nutshell, the Marketing operate within the framework of goals, policies

we decorate your lifestyle

Leaf Interior & Exterior Pvt. Ltd.

Organizational culture: The culture of the Company encompasses