Assignment#4

Course:
International Marketing

Topic:
Preliminary Marketing Plan

Product:
Designer Home Furnishings

Country:
United Kingdom

Section: B

Submitted to:
Ma’am Faghia Mazhar

Submitted by:
Zain Ahmed Lehri (L1S19BBAM0014)
Shiza Shafqat (L1S19BBAM0015)
Hajra Amjad (L1F18BBAM7206)
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 Executive Summary

This preliminary plan of the firm “The Curated Home”, sheds light on how efficiently and
effectively the firm has executed its marketing plan keeping into consideration the business
dynamics of the targeted country. It highlights the objectives of the marketing plan, the
SWOT analysis, products’ adaptation or modification, promotion mix, distribution, channels
of distribution, price determination and terms of sales. The price determination provides
information about the costs incurred relating to the transportation, shipping of goods,
insurance etc. Moreover, the promotion mix describes Curated Home’s advertising strategies
that would aid in creating awareness about the firm’s products and communicating brand’s
value among the consumers. The insights regarding the financial statements and budgeting
have also been mentioned which emphasizes on the extent of cost effectiveness pertaining to
the export processes. Next, resources hold great significance for a firm’s business operations.
Along with that, the finances, production capacity and staff act as the backbone of the firm.
Therefore, Curated Home has determined and evaluated its resource requirements for the
launch of a successful introductory marketing plan.

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 Table of Contents
Executive Summary...................................................................................................................2
I. The Marketing Plan............................................................................................................4
A. The Marketing Objectives...........................................................................................4
B. SWOT Analysis...........................................................................................................4
C. Product Adaptation of Modification............................................................................5
1. Core Component......................................................................................................5
2. Packaging Component.............................................................................................5
3. Support services component....................................................................................5
D. Promotion Mix.............................................................................................................5
1. Advertising...............................................................................................................5
2. Sales Promotions......................................................................................................6
3. Personal Selling.......................................................................................................7
E. Distribution:.................................................................................................................7
F. Channels of distribution (micro analysis). This section presents details about the
specific types of distribution in your marketing plan.............................................................9
G. Price Determination...................................................................................................11
H. Terms of sale.............................................................................................................12
II. Pro forma financial statements and budgets........................................................................13
III. Resource requirements.......................................................................................................13
A. Finances...............................................................................................................................13
B. Personnel.............................................................................................................................13
C. Production capacity.............................................................................................................13
IV. References.....................................................................................................................14

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I. The Marketing Plan
A. The Marketing Objectives
1. Target market(s) (specific description of the market):
 The target market will be aged 18 till 65
 All across UK.
 Men and women
 Working as well as stay at home parents
 Income group £5000 and above per month
2. Sales forecast years 1–5:
 In our first month we plan to make a sale of about £1000
 In first year £20,000
 In fifth years about £100,000.
3. Profit forecast years 1–5:
 Since we are dealing with high quality material and equipment our profit margin will
be not more than 10% per product in order to keep prices in range of our target
market.
 In first month we expect a profit of £100
 In first year a profit of £2000
 In fifth year a profit of £1000.
4. Market penetration and coverage:
 Market penetration=number of customer/target market
1000 /20,000,000 =0.055%
 Coverage: across England as this is the online furniture shop and delivery will be
nationwide.

B. SWOT Analysis
1. Strengths:
 Our furniture is Victorian style, yet in small sizes, compact enough to be able to
fit in the small compartments.
 Not cheap or overly priced. Good quality in moderate and affordable price.
2. Weaknesses:
 Victorian design might not well cater to housing styles in UK, as they now prefer
modern furniture’s.
3. Opportunities:
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  Will be introducing a new concept of design in furniture.

4. Threats:
 Already established furniture brands such as IKEA in UK.
 Inflation raising cost of production, we will have to increase our prices which will
make it above the affordable range of middle class income group
 Rising fuel prices will make delivery of products and electricity more expensive

C. Product Adaptation of Modification

1. Core Component
As the core component of any product is the actual benefit the consumer is seeking from
the purchase, therefore, Curate Home provides customers with the core component of
premium quality and handmade designs of furnishings.

2. Packaging Component
1. Corrugated cardboard sheets. Cardboard box.
2. Bubble wrap
3. Furniture blankets
4. Sealable plastic bags
5. Rope
6. Labels

3. Support services component

7. Repair and maintenance instructions
8. Installation warranties
9. Deliveries
10. Availability of spare parts. 

D. Promotion Mix

1. Advertising
a) Objectives
The objectives include spreading the word across target market in UK, letting people
know what our product range is and that our service is reliable with a guarantee of
years. We will advertise our sales promotion offers as well during holidays or peak
season.

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b) Media mix
Following are the ways to promote the Curated Home in the UK through media mix:
 Grassroots marketing
 Digital advertising
 Social media
 Email
 Landing pages

c) Message
The message that identifies Curated Home would reveal the value the brand provides
to its consumers. The message would be conveyed through upselling and by offering
discounts and coupons.
d) Costs
 We would place google ads that are £ 2 per day, they will cost around £16 per
month.
 Sending sponsors and PR packages to Instagram and YouTube influencers and
vloggers which will cost us around Youtubers with 10k
subscribers/followers charge around £150 for a video. Those with 100k+
charge £1500 per video.

2. Sales Promotions

a) Objectives:
 Increase sales volume
 Encourage current customers to purchase more

b) Coupons:
 Coupons will be given to customers in order of an order mismanagement.
Whether we were unable to deliver the right package or just deliver the package
at al. the customer will be compensated for the price he/she paid.

c) Premiums:
 For purchase of above are £ 500 any product or purchase of around £50 will be given for
free.

d) Costs:

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  15% flat discount on holidays such as Christmas or end of the season.

3. Personal Selling

As personal selling involves building strong relationships with the customers and
persuading them to buy the products, our firm would hire sales manager for the
purpose of personal selling. It would positively influence the sales growth.

4. Other promotional methods

Other promotional method opted by Curated Home would be guerilla marketing
which involves a highly innovative strategy to attract the customers. This would also
aid in increasing the brand awareness among consumers. Another method would be
print media such as publishing the brand’s advertisements in local and national
newspaper.

E. Distribution:
From origin to destination
1. Port selection
The selected port for the purpose of distribution would be the renowned Karachi port.
a. Origin port
The aforementioned Karachi port would be considered as the origin point for
distribution.

b. Destination port
The destination port would be selected as the London Port of England.

2. Mode selection: Advantages/disadvantages of each mode

The mode of transportation would be by air.
a. Railroads
The advantages of railroads include that they are dependable, cover long
distances with speed and most importantly they are cost effective. On the
other hand, the disadvantages include its inflexibility, its routes and timings
cannot be adjusted to individual requirements, also involves wear and tear and
wastage of time.

b. Air carriers
Air carriers provides instant service, unbroken journey, comfortable and quick
services, no physical barriers whereas its disadvantages include risk, high cost,
capacity for small carriage and some product limitation.

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 c. Ocean carriers
The advantages of ocean carriers includes less maintenance costs, useful for
bulky goods, helpful in defense, importance for foreign trade and ease of
management. Whereas, its disadvantages include slow speed and high level of
risk.

d. Motor carriers
Motor carriers are able to increase or decrease the number of vehicles used in
short periods of time and in small increments of capacity. Most terminals,
because of the short stay of the freight, are relatively inexpensive to construct
and maintain. On the other hand it has negative aspects as well such as
accidents and breakdowns, slow speed and vulnerability to season and weather
impacts.

3. Packing
a. Marking and labeling regulations
The marking of the products would durable, in English, and printed on the
surface of the pack or on a label or tag. There would be complete labelling that
highlights the product’s and the brand’s name, the type of material used and
the name and address of the manufacturer etc.

b. Containerization
In order to enhance the portability and efficiency, there would be
containerization as well of the products to be exported. Containerization is a
system of intercontinental freight transportation using Standard Containers.
These containers are shipped using container ships between containers or
distant port. Once at the port the containers can be loaded and transported
inland using Trucks or Railroad.

c. Costs
The costs incurred for the “packing” would vary in accordance with the
facilities or services availed. Typically, companies spend 10-40% of the
product's retail price on packaging, therefore, the firm would spend around 20
percent of the products retail price on packing.

4. Documentation required
a. Bill of lading
As the Bill of Lading is the primary document used in sea transport and it functions
as a contract of carriage, transport goods receipt and a document of title affording
ownership, therefore, our brand’s bill of lading would comprise of various
components such as shipper’s name, address, city, and third party freight charges bill
to etc.

c. Dock receipt
As the dock receipt is designed to provide the exporter with proof of delivery of the
cargo to the international carrier in good condition, the Curated home would also
obtain the dock receipt for the continuation of the export without any hindrance.
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 d. Air bill
Air bill refers to a document that accompanies goods shipped by an international
courier, which allow for tracking. It's a legal agreement that's enforceable by law.

e. Commercial invoice
In simple words, a commercial invoice is an export document that serves as legal
evidence of a sale transaction between the buyer and the seller. It is mainly used for
clearance purposes with regard to customs and helps in the determination and
assessment of duties and taxes payable.

f. Pro forma invoice

A pro forma invoice is a preliminary bill of sale sent to buyers describing a
shipment of goods in advance of its delivery.

g. Shipper’s export declaration

An export declaration is a type of form submitted at the port, providing
details about the goods that are bound for export.

h. Statement of origin
The statement on origin is a declaration by the exporter about the origin of
its product. The statement on origin is made out by the exporter to self-
declare the origin of its product.

i. Special documentation
Certain products may require certificates to show cleanliness, compliance
with standards, safety, and health and in such circumstances special
documentations are used.

5. Insurance claims
In light of Marine Policies, exporters can take out policies only from companies
operating in Pakistan, which can be expressed in Rupees or in foreign
currency. Marine Cargo Insurance would be obtained as the Marine cargo insurance
policy applies to all the goods being transported through any means of mobility such
as air, road, sea or rail. Some coverage providers might also include inland
transportation cover in the same provided policy.

6. Freight forwarder. If your company does not have a transportation or traffic

management department, then consider using a freight forwarder. There are
distinct advantages and disadvantages to hiring one.
 The advantages of using a freight forwarder includes experience and
accountability, accessibility to global partners and accurate documentation.
 The disadvantages include Shippers becoming reliant on their forwarders
assistance and Price gouging can occur with bad forwarders.

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F. Channels of distribution (micro analysis). This section presents
details about the specific types of distribution in your marketing
plan.

1. Retailers
a. Type and number of retail stores
There would be nearly two to three retail stores for the purpose of expansion and
selling of products in the form of warehouse and e-commerce stores.
b. Retail markups for products in each type of retail store
Retail markup is the difference between the price of a product and the cost of that
product. Apparel retail brands typically aim for a 30% to 50% wholesale profit
margin, while direct-to-consumer retailers aim for a profit margin of 55% to
65%. Our brand would keep a markup of around 50% in each type of retail store.
c. Methods of operation for each type (cash/credit)
The method of operation used for each type of retail would be in the form of cash.
d. Scale of operation for each type (small/large)
There would be kept a small scale for each type of retail.

2. Wholesale middlemen
a. Type and number of wholesale middlemen
There would around 7-8 middle men and the type would be wholesalers and retailers.
b. Markup for class of products by each type
The markup for class of products by each type would be kept as 50%.
c. Methods of operation for each type (cash/credit)
The method of operation for both the types would be through cash.
d. Scale of operation (small/large)
The scale of operation opted would be small.
3. Import/export agents
An import or export agent acts as a middle person for the purchase or sale of products
between both domestic and overseas companies. There exists several import and export
agents in the UK. For instance Cargo Express provides customs and warehousing
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solutions to other countries as well. Some other popular agents are named as Pound
Wholesale, Cohen Traders LTD and Sulis Import Solutions. In Pakistan, the export/
import agents considered would be Haroon Traders and Pacific Marketing.

4. Warehousing
a. Type
The type of warehousing would be a private warehouse.
b. Location
Warehousing near your customers minimizes logistical costs that can rise
unexpectedly. A convenient location can lower transportation costs and minimize
time in transit. The location would be near the potential customers. It would be
located in Lahore and Karachi from where the product is to be exported to the UK.

G. Price Determination
1. Cost of the shipment of goods
The courier company named as “Parcelabc”, would be chosen for the shipment of
goods from Pakistan to the UK. The cost of delivery depends on the size and weight
of the package, as well as on the distance between the cities. What is important, that
they also carry out express parcels on interstate routes. The cost of such a service
would also appear in the bill list. All prices include fuel charges and insurance of
25€. Moreover, from Pakistan to the UK, the shipping costs by sea range from
£2,626 to £2,903

2. Transportation costs
The sea freight from Pakistan to the UK costs 1520.00 pounds per 20ft container and
1820.00 pounds per 40ft container. Therefore it would cost the firm nearly 1520.00
pounds full container load per 20ft container.

3. Handling expenses
The handling expenses during the shipment of goods to the UK would be calculated
as:
[Average number of minutes worked to package an item / 60] x hourly rate.
10 minutes / 60 = 0.17; 0.17 x $10 per hour = $1.70.

a. Pier charges
As Pier Pass Fee is an additional fixed fee that is charged per container for cargo,
therefore pier pass fee for shipment to the UK would be nearly 1000PKR.

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 b. Wharfage fees
As, Wharfage is the fee charged by ocean carriers to cover the port authority's cost
of using a wharf to unload cargo from a vessel, fee would be charged as 1600PKR
according to Pakistan- Local Charges/Service Fees report.

c. Loading and unloading charges

The loading and unloading costs incurred would be 400 PKR – 500 PKR

4. Insurance costs
Parcelabc courier is always trying to deliver parcels as quickly and cheaply as
possible. Up to now 41 people from Pakistan have decided to use their service. The
most frequently used payment methods were Paysera - 69%, PayPal - 31%, Credit
card, E-wallet. It is worth noting that, although all parcels sent through Parcelabc
have free insurance of 25 euros. This can be increased up to 5000 euros. This service
is frequently used by those who send valuable items, so the customer does not have to
worry about any damage during transportation, because, should there be issues, he
will receive a refund. The purchase of such insurance has so far been decided by 14%
of clients from Pakistan. The average price paid by customers was 13 EUR, 13.627
USD.

5. Customs duties
Custom duties in Pakistan are levied according to the value. According to Wikipedia
List of Tariffs in Pakistan, the country does not levy duty on exports. However, the
standard sales tax rate in Pakistan is 17%. Exporters and certain providers of financial
services may apply for a Sales Tax suspension. In the UK, customs duty is charged
on all goods sent from outside the UK (or the UK and the European Union. It is also
levied on excise goods and those worth more than £135. If Customs Duty is charged,
the citizen will have to pay on both the price paid for the goods and insurance,
packaging and posting.

6. Import taxes and value-added tax

7. Wholesale and retail markups and discounts Country Notebook A Guide for
Developing a Marketing Plan 633
8. Company’s gross margins
9. Retail price

H. Terms of sale
1. EX works, FOB, FAS, C&F, CIF
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 2. Advantages/disadvantages of each
I. Methods of payment
1. Cash in advance
2. Open accounts
3. Consignment sales
4. Sight, time, or date drafts
5. Letters of credit

II. Pro forma financial statements and budgets

A. Marketing budget
1. Selling expense
2. Advertising/promotion expense
3. Distribution expense
4. Product cost
5. Other costs
B. Pro forma annual profit and loss statement (first year through fifth year)

III. Resource requirements

A. Finances

B. Personnel

C. Production capacity

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 IV. References

National Freight and logistics policy - Ministry of Communications. (n.d.). Retrieved July 1,
2022, from https://communication.gov.pk/SiteImage/Misc/files/National%20Freight
%20and%20Logistic%20Policy.pdf

What is a pier pass fee? - Land, sea, & air shipping services. InterlogUSA. (2020, November
17). Retrieved July 1, 2022, from https://www.interlogusa.com/answers/blog/what-is-a-
pier-pass-fee/

Pakistan. Pakistan Business Directory - BusinessList.pk. (n.d.). Retrieved July 1, 2022, from
https://www.businesslist.pk/category/import-and-export-agents

Compare insurance policies from best insurance companies in Pakistan. Smartchoice.pk.

(n.d.). Retrieved July 1, 2022, from
https://smartchoice.pk/insurance/corporate/International-cargo-marine-insurance

Send with parcelabc with a discount! Parcel ABC. (n.d.). Retrieved July 1, 2022, from
https://www.parcelabc.com/tag/send-a-parcel-from-pakistan-to-united-kingdom/
4/231/c166

Pakistan Post/International Parcel Tariff. (n.d.). Retrieved July 1, 2022, from

https://www.pakpost.gov.pk/international_tariff.php

Home. SendPulse. (2022, May 24). Retrieved July 1, 2022, from

https://sendpulse.com/support/glossary/promotion-mix

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