SK MEUBLE

BUILDING BLOCK FOR FUTURE

 Table of Contents

Table of Contents
Table of Contents...................................................................................................................................
Executive Summary:..............................................................................................................................
 Who are we? 3
 What we sell? 4
 Who we sell to? 4
 Business Model Canvas/ Lean Canva: 4
Industry Analysis:...................................................................................................................................
 Industry Overview 5
 Pestel Analysis: 5
Company..................................................................................................................................................
 Overview: 7
 Company mission statement: 7
 Company vision: 7
 Company goals: 7
 Legal structure: 7
Product/Services.....................................................................................................................................
 Innovation Analysis: 8
 Detailed Description of Product and Services: 8
 Customer Decision Making Process: 8
Market Opportunity.................................................................................................................................
 Market Overview: 10
 Customer Overview: 11
 Customer Research: 12
 Prospective Customer Profile 13
Competition Survey................................................................................................................................
Strategy and Implementation Tools....................................................................................................
 SWOT Analysis for SK MEUBLES: 17
 Positioning Strategy: 19
 Unique Selling Proposition 19
Sales and Marketing Plan......................................................................................................................
 Value Stream: 20
 Barriers to entry: 20
  Threats and opportunities: 20
 Segmentation: 20
 How you will market your product: 21
 Promotional budget: 21
 Pricing: 21
 Distribution channels: 21
 12-month sales forecast: 22
Operational Plan:....................................................................................................................................
 Production: 23
 Quality control: 23
 Location: 23
 Legal environment: 23
 Personnel: 23
 Inventory: 24
 Suppliers: 24
Customer Relationship Management:.................................................................................................
Conclusion...............................................................................................................................................
 Source of Business Idea: 26
 Alternative Ideas: 26
Bibliography............................................................................................................................................
 Executive Summary:

SK MEUBLES is an idea that will inspire each of us towards a better lifestyle. We

are symbolizing and highlighting environmental issues that can be controlled and
turned into a state-of-the-art. We believe that our company exists for the
amelioration of the society. SK MEUBLES is looking forward onto the future
complications faced by the society. So, we constantly work upon new material
innovation and designs to develop, revise and innovate new products. SK
MEUBLES has a clear vision to grow, as our target customers are all those people
who use furniture made of plastics.

SK MEUBLES also focuses on to create a niche of products by providing innovative

designs and attractive looks. We have also worked upon the user experience by
testing how are our products feel and adjust to one.SK MEUBLES is focuses its
product line to production of plastic tables from waste plastics that looks like marble
and is more effective in terms of cost.SK MEUBLES will be in contact with furniture
retail shops and construction companies for sale of first products. We are showing
encouraging financial report. SK MEUBLES will ensure a financially positive cash
flow and will constantly innovate new ideas, design attractive and useful products to
eliminate waste plastic generated in the society. For us environment comes first, so
we want our project to accelerate in high speed as waste plastic generation is not
stopping sooner. We are looking forward towards a funding source that will ensure a
higher growth of SK MEUBLES.

Business Concept Statement

 Who are we?

SK MEUBLES is an idea that will inspire each of us towards a better lifestyle. We
are symbolizing and highlighting environmental issues that can be controlled and
turned into a state-of-the-art. We believe that our company exists for the
amelioration of the society. SK MEUBLES is looking forward onto the future
complications faced by the society. So, we constantly work upon new material
innovation and designs to develop, revise and innovate new products. SK
MEUBLES has a clear vision to grow, as our target customers are all those people
who use furniture made of plastics.

Plastics and their by-products are littering our cities, villages, sewage system, rivers,
oceans, and other elements of nature, and thus contributing to severe health
problems in humans and animals. Plastic pollution is created by the accumulation of
plastic objects and particles such as plastic bottles, bags and microbeads etc. in the
environment that has been adversely affecting human, wildlife, wildlife habitat, and
marine life. Plastics are inexpensive and durable, and have found usefulness in
every aspect of human life. Hence, levels of plastic production and consumption
have increased by leaps and bounds over the years. On the other hand, the
chemical structure of most plastics renders them resistant to many natural
processes of degradation. These two factors combined have led to a dreadful of
plastic pollution in the environment. Some researchers suggest that by 2050 there
could be more plastic than fish in the oceans by weight.
 What we sell?
The idea focuses on building furniture’s out of reusable materials that are available
in abundance. There were two primary reasons for choosing this idea, first was that
furniture market lacks availability of cheap but stylish furniture and second was the
easily available abundant plastic waste material. This idea has covert any type of
plastics can convert any type of plastic with minimum amount of gas exhibition. The
idea will provide affordable stylish marble like furniture to target audience that
currently include youngsters, newly married, low- income group buyers and eco-
friendly product lovers.
SK MEUBLES also focuses on to create a niche of products by providing innovative
designs and attractive looks. We have also worked upon the user experience by
testing how are our products feel and adjust to one. Our team is working with full
protection and knowledge of materials we use. SK MEUBLES is currently focusing
its product line to production of plastic tables from waste plastics that looks like
marble and is more effective in terms of cost.

 Who we sell to?

SK MEUBLES has a huge market to cater. This includes youngster, interior
designers and restaurant owners in niche market. Whereas the mass market
constitutes of general customers who want cheap plastic furniture that will enhance
their lifestyle. This is the high time the customers want a revolutionary change in the
furniture industry. SK MEUBLES is currently focusing on small orders from schools
and restaurants.
The project requires a huge capital demand for establishment of the operation
setup, manufacturing plant and office requirements. The product will be available to
purchase initially with local retailers, online store and on-demand orders as well. SK
MEUBLES by providing this unique solution to the problem stands out of its
competitors and create unique value proposition to its customers.

 Business Model Canvas/ Lean Canva:

 Industry Analysis:

 Industry Overview
The Plastics Industry in Canada has made significant development since its
inception in1957 by producing Polystyrene. The chronology* polymer manufacture
in Canada is as under:

1. 1957- Polystyrene
2. 1959- Low Density Poly ethylene (LDPE)
3. 1961- Poly Vinyl Chloride (PVC)
4. 1968- High Density Poly Ethylene (HDPE)
5. 1978- Polypropylene

The global recycled plastics market is estimated at USD 36,927.1 million in 2017
and is projected to reach USD 50,356.1 million by 2022, at a CAGR of 6.4%
between 2017 and 2022. The market is witnessing growth due to a growing
preference for recycled plastics over virgin plastics as a result of severe pollution
caused by the disposal of used plastics in oceans and the scarcity of landfill areas in
many countries.

 Pestel Analysis:
Political factors are how and to what degree a government intervenes in the
economy. Specifically, political factors include areas such as tax policy, labour law,
environmental law, trade restrictions, tariffs, and political stability. The political
environment for a manufacturing company like SK MEUBLES is quite favorable.
Currently the government is more focused on the reduction of plastic waste from the
environment and hence allowing us to get the recycling furniture set up easily. Even
the big corporates are looking for a way to make the environment clean. The political
factors are strict but with right strategy ang team SK MEUBLES can make a huge
difference.

1. Political stability and importance of Plastics sector in the country's economy.

2. Risk of military invasion
3. Level of corruption - especially levels of regulation in Consumer Goods sector.
4. Bureaucracy and interference in Plastics industry by government.
5. Legal framework for contract enforcement
6. Intellectual property protection
7. Trade regulations & tariffs related to Consumer Goods
8. Favored trading partners

Economic factors include economic growth, interest rates, exchange rates and the
inflation rate. These factors have major impacts on how businesses operate and
make decisions. SK MEUBLES can use country’s economic factor such as growth
rate, inflation & industry’s economic indicators such as Plastics industry growth rate,
consumer spending etc to forecast the growth trajectory of not only sector but also
that of the organization. Economic factors that of SK MEUBLES should consider
while conducting PESTEL analysis are:
1. Type of economic system in countries of operation – what type of economic
system there is and how stable it is.
2. Government intervention in the free market and related Consumer Goods
3. Exchange rates & stability of host country currency.
4. Efficiency of financial markets
5. Infrastructure quality in Plastics industry
6. Comparative advantages of host country and Consumer Goods sector in the
particular country.
7. Skill level of workforce in Plastics industry.

Social factors include the cultural aspects and include health consciousness,
population growth rate, age distribution, career attitudes and emphasis on safety.
Trends in social factors affect the demand for a company's products and how that
company operates. Shared beliefs and attitudes of the population play a great role in
how marketers at SK MEUBLES will understand the customers of a given market
and how they design the marketing message for Plastics industry consumers. Social
factors that leadership of SK MEUBLES should analyse for PESTEL analysis are:
1. Demographics and skill level of the population
2. Class structure, hierarchy and power structure in the society.
3. Education level as well as education
4. Culture (gender roles, social conventions etc.)
5. Entrepreneurial spirit and broader nature of the society. Some societies
encourage entrepreneurship while some don’t.
6. Attitudes (health, environmental consciousness, etc.)

Technological factors include technological aspects such as R&D activity,

automation, technology incentives and the rate of technological change. They can
determine barriers to entry, minimum efficient production level and influence
outsourcing decisions. (Gupta, 2019)Furthermore, technological shifts can affect
costs, quality, and lead to innovation. Slow speed will give more time while fast
speed of technological disruption may give a firm little time to cope and be
profitable. Technology analysis involves understanding the following impacts -
1. Recent technological developments by competitors
2. Technology's impact on product offering
3. Impact on cost structure in Rubber & Plastics industry
4. Impact on value chain structure in Consumer Goods sector
5. Rate of technological diffusion

Environmental factors include ecological and environmental aspects such as

weather, climate, and climate change, which may especially affect industries such
as tourism, farming, and insurance. Furthermore, growing awareness of the
potential impacts of climate change is affecting how companies operate and the
products they offer, both creating new markets and diminishing or destroying
existing ones. Before entering new markets or starting a new business in existing
market the firm should carefully evaluate the environmental standards that are
required to operate in those markets. Some of the environmental factors that a firm
should consider beforehand are:
 1. Weather
2. Climate change
3. Laws regulating environment pollution
4. Air and water pollution regulations in Rubber & Plastics industry
5. Recycling
6. Waste management in Consumer Goods sector
7. Attitudes toward “green” or ecological products
8. Endangered species

Legal factors include discrimination law, consumer law, antitrust law, employment
law, and health and safety law. These factors can affect how a company operates,
its costs, and the demand for its products. A firm should carefully evaluate before
entering such markets as it can lead to theft of organization’s secret sauce thus the
overall competitive edge. Some of the legal factors that SK MEUBLES leadership
should consider while entering a new market are -
1. Anti-trust law in Plastics industry and overall, in the country.
2. Discrimination law
3. Copyright, patents / Intellectual property law
4. Consumer protection and e-commerce
5. Employment law
6. Health and safety
Company

 Company mission statement:

SK MEUBLES is a financially low-cost entrepreneurship with less investment on
machinery and more focused on consumption of raw plastic waste which would be
converted into beautiful textured products. SK MEUBLES’s mission is dedicated to
eradication of harmful plastic waste from the environment and employ them to
produce eco-friendly, attractive, & useful products.

 Company vision:
The vision of the company revolves around innovation and community welfare with
beneficial profits to be used for company expansion in furniture and interior sector.

 Company goals:
The goal is to create a market for creative and low-cost products which could be
affordable by every strata of people and produce an impactful change in the society
and environment by recycling the plastic waste.

 Legal structure:
The business is a partnership firm. There are two partners in the firm with 50
percent share each. We do not have any investors yet.
 Product/Services

 Innovation Analysis:
SK MEUBLES is combined from two words that is Plastic and Management that
gives the basic ideology to waste material management. SK MEUBLES continuously
focus on eradicating huge amount of plastic waste. The idea will help local
authorities to deal with the waste plastic waste more effectively. The idea will
convert the major problem in a profit-making business that was not that efficient
before.
The concept revolves around creating furniture out of reusable fabrics that are
readily accessible. The choice of this concept was based on two factors: first, the
lack of inexpensive yet trendy furniture on the market, and second, the readily
available plentiful plastic waste material. This principle has the potential to transform
any form of plastic with the least amount of gas exposure. The design would include
trendy marble-like furniture at an affordable price to a target demographic that
already includes young adults, newlyweds, low-income consumers, and eco-friendly
product enthusiasts.
The project would necessitate a large amount of money to set up the operation,
assembly facility, and office specifications. Initially, the product will be available for
distribution from local stores, an online store, and on-demand orders. SK MEUBLES
separates itself from its rivals by delivering this one-of-a-kind approach to the
problem, as well as a one-of-a-kind value proposition to its consumers.

 Detailed Description of Product and Services:

SK MEUBLES products are financially low-cost product made up of raw plastic
waste material. For making the product any kind of plastic waste can be used
recyclable or not. This product would be having the texture and look of marble or
even superior to it. The product texture can also be customized according to the
requirements of the customer. For all the products the company is giving a warranty
period. And even after the warranty period is over the customer can have the
product recycled or can take new product in replacement. This is the most unique
offering in the market.
There are several tests that have been runed of the product sample such as
resistance test, Heat/Cold test, Durability test, etc. In all the test mentioned before
the products has passed. The product will also have a stainless-steel bottom to
increase weight and give a supportive look.

 Customer Decision Making Process:

1. Needs acknowledgement: A desire initiates the purchasing process and

motivates effort to alleviate the feeling of loss in the first step. The need derives
from a consumer's awareness of the disparity between their present and desired
states as a function of both internal and external stimuli. The user can sense the
emergence of a particular motivations or challenge that needs to be solved, and
the perception of a need can either transform into opportunities, or the resulting
state is one of potential or need knowledge. Marketers should thoroughly study
consumer desires depending on the types of needs or problems that have
occurred at this level in order to consider the customer's readiness and desire to
buy.
2. Information search: As a result of the previous point, looking for information
action will begin after the whole decision-making process has been triggered. In
the case of a good consumer's push or popular goods in regular repurchasing, a
customer may or cannot search for any additional information; a customer can
miss this step altogether and buy the product straight away. The information
sources mentioned below are grouped into four groups.
 Family, acquaintances, and relatives are examples of personal wealth. When a
customer has no prior buying experience, a word-of-mouth endorsement froma
close friend or family member is critical, and perhaps more effective than
traditional advertising.
3. Alternative’s evaluation: Following the collection of statistics, a customer
begins to re- evaluate all of the data in order to compare the levels of quality of
alternatives in terms of the defined needs. There are more phases in the
assessment process than the consumer realizes, because there are implicit
decisions made in addition to contextual evaluation based on psychological
factors. During the process, the entire list of available products is progressively
filtered down to a manageable rank for re-evaluation, or the selection is
assessed based on possible cost and advantages, as well as various features of
the same category from different brands.
4. Purchase decision process: Consumers rate products based on their own
parameters based on the results of the previous evaluating step, and then, in
general, the final judgement would address the most desired option. However,
there are two new considerations that have emerged between the buying
decision and the purchasing intention that have the potential to completely alter
the final decision. When an influential individual expresses an opinion about the
final consumption, the Attitudes-from-Other’s effect emerges; nevertheless, the
propensity of the factor is based on the degree of positive or negative feedback
on the consumer's decision, as well as the level of motivation about the other's
opinion. The other aspect is an unanticipated occurrence.
5. Post-purchase behavior: The purchase process does not stop until the buyer
chooses his or her wallet to pay for the goods; consumers take the product
home, and pleased or unhappy emotions begin to grow indefinitely after the
delivery. Since current consumers buy more often than new customers, and
particularly because spreading a positive image of the brand through customers
is the most ideal promoting medium, consumer knowledge, attitude, and
perception become key elements in determining customer loyalty. The
consumers will feel happy or disappointed at this point, and the response of
customer feeling is dependent on how similar the outcome of consuming
expectation and the actual result is.
 Market Opportunity

 Market Overview:
In 2019, the global plastic industry was estimated at USD 568.9 billion, with a
compound annual growth rate (CAGR) of 3.2 percent projected from 2020 to 2027.
Over the projected era, the demand for plastic is expected to be led by increasing
plastic use in the manufacturing, automobile, and electrical and electronics
industries. Plastics have been marketed as a replacement for metals, such as
aluminum and steel, in the production of automobile parts as a result of regulations
to minimize gross vehicle weight in order to increase fuel economy and, ultimately,
reduce carbon emissions. Over the projected period, this is also predicted to favor
the increasing market for plastics in automotive applications. (Plastic-Wikipedia, n.d.)
Polyethylene led the industry in terms of sales in 2019, with a share of 25.7 percent.
The rising demand from the packaging industry, which includes containers and
bottles, plastic bags, plastic films, and geomembranes, is responsible for this high
share. High-density polyethylene (HDPE) and low-density polyethylene (LDPE) are
the two primary grades of polyethylene (LDPE). Market products, food and
beverage, and commercial packaging all use low-density polyethylene as a
packaging material. HDPE, on the other hand, is often used in laundry detergent
packaging, milk cartons, cutting boards, and trash cans.

Packaging led the industry in terms of sales in 2019, with a 36.5 percent share. This
high share is attributed to strong demand from a number of end-use industries in
developing economies, including medical, manufacturing, and electrical and
electronics. Over the projected timeframe, the effect of the coronavirus pandemic on
the packaging industry is expected to be mild. The market for packaging for
healthcare goods, grocery, and e-commerce transportation is expected to rise
rapidly, although demand for luxury, industrial, and some B2B-transport packaging is
expected to grow slowly due to several constraints imposed by the government,
such as the shutdown of industrial development and city lockdown.

The recent outbreak of COVID-19 in countries such as China, Canada, Japan,

Australia, Indonesia, Thailand, and others, however, is expected to stifle product
demand, especially in the construction, automobile, electrical and electronics, and
consumer goods industries. The epidemic has prompted production activities to stall
or cease, procurement and transportation constraints, and infrastructure disruptions,
all of which are projected to have a negative effect on demand for plastics in the
above applications in the region in the coming years.
 Customer Overview:
As it has been discussed above that we are primarily focusing on furniture and
interior products. There are many challenges faced by the customer in this sector:
1. Quality and affordable cost are the demand of the day in the furniture interior
decoration business. But middle and low-income group consumers are unable to
avail desired products due to high pricing.
2. There are more individual and families who desire smart looking furniture and
interior items but unable to afford.
3. Although there are many cost-effective products in the offering based on new materials in
the market but they lack desired quality.
4. If we consider wooden furniture as an option, they are costly as well as it harms
the environment by deforestation.
5. Customers are constantly looking for new products and displayed a variety seeking buying
pattern. Hence, there is a huge scope for new affordable products in this segment.
SK MEUBLES is currently started its operations from Indore, Canada.

We have chosen Indore because of its correct population density and low
competition. Our target population are those who tend to switch to new alternatives
available in market. Our target audience that age between 18 to 35 years face
problem in finding low-cost attractive plastic furniture.
Our Target audience include-
1. People age between (18-25)- The problem faced by this audience is that they
require low priced furniture most for educational purposes like study tables.
2. People age between (25-35)- This age category includes people who are
financially settled and tend to have a marriage age. These people require new
furniturefor their homes. Indore is having a maximum category of this audience
of about 6,89,742. This allows SK MEUBLES to understand their needs and
provide them with furniture for their needs.
3. Restaurants- Restaurant’s face problem in finding attractive plastic furniture that
could be easily cleaned and at the same time is unique and attractive. Most of
the plastic furniture in market is plain and highly priced. There are around 1200
unique restaurants in the city.
4. Small Corporates- Small corporates require not cost furniture for offices. SK
MEUBLES recognize that Indore and nearby areas like Pitampura are hubs of
small business which require such furniture for their offices.
5. Big Corporates- These are well established offices which require a new
furniture for a contemporary look for their workplaces.
 After identifying the target market and its problems now, it’s time to identify the
solution to solve it. Parameters are very important to define your customers. SK
MEUBLES has defined its customers on four Parameters-

1. Age – The age group that we are targeting is between 18 years to 35 years. We
have chosen this age as people in this age tend to have more frequent switch to
new products. Analysis- Indore is having 42% of its populations between 18 to
35 years which opens the gate for SK MEUBLES to readily have an adaptive
population. Moreover, people in this age tend to earn more so this is an ideal age
group for our products.
2. Gender- Knowing your population gender is very important to determine whom is
going to use the product.
Analysis- There are around 1780325 males and 1532872 females in population.
In which share of females in buying decisions are more than males by 18%.
3. Income Level- Income level of customer depends whether the sale will happen
or not. Analysis- People will more likely to switch to cheaper and attractive
plastic furniture as the average monthly income in Indore in very low that is Rs
31500 per month. People will tend to switch to newer and cheap alternatives.
4. Education Level – Education level of population helps to determine the reach
and availability of resources to the population.
Analysis- The average literacy rate of Indore is 87.86% which is very high as
compared to many cities. This indicates that people are aware of their surrounding
and know the market. Lifestyle and Background- It is necessary to understand the
lifestyle and background of people. As the city is awarded the cleanest in Canada,
people look forward for environmentally friendly and clean ways to utilize plastic
waste. Hence people will be motivated by this concept
and surely this can be seen by increased sales.
We have divided target market in user groups and explained how to cater that market size.

 Customer Research:

Environment Aspect: SK MEUBLES is trying provide a measurable impact in

Plastic Waste Management Problem. The company wants to use this waste to
create a useful and profitable product line. The only raw material that is needed
to make the table furniture is plastic. It can be produced from different kind of
plastic.

1. Customer Aspect: Relating to the customer problem while taking decisions for
the choice of table product, SK MEUBLES has a good proposition.
a) Affordability: The table furniture is within the budget of low-income group
and is can be used for long term.
b) Texture and weight: The texture of the table furniture would be better
looking as compared to marble. It would be light weight hence easy to move
and has a high tensile strength.
c) Resistance: The table would be highly water resistant. It would also be heat
resistance and durable. The table would be used at all places.
d) Variety: The customer who prefer constant changes would be benefited from the table
furniture as it has low cost and is available in different texture and colours.
e) Modern proposition: The table would have a different look of itself which
would not be similar to any of the products available in market.

f) Viability: SK MEUBLES product is viable and has its differencing statement of its own.
 The satisfaction of people is top to most priority and even the customization cost is low.

 Prospective Customer Profile

A hypothetical profile based on some assumptions and survey report states the
following attributes in a customer.
Name: Mr. Abhishek Ahuja
Location: Indore, Canada Age:
24
Demographics: A working professional, who is unmarried and remains outside for
work. He is a fashion designer and like trendy things. He owns an apartment where
he lives alone. Also, many people and his friends visit him frequently.
Goals: To explore new things and new ideas that will help him in thinking new for fashion.
Interest: Nature lover, Innovation.
Hobbies: Nature lover, gardening, search for new ideas.
Income: 20,000-40,000 per month
Purchase behavior: Buys unique and innovate products to increase the innovation.
Need Recognition: Need for furniture that is low-cost, but suits the lifestyle and
looks like marble. He can anytime sell and move to higher income level, yet he can
select trendy furniture’s.
 Competition Survey

FACTOR SK MEUBLES Competito Competito Competito

Competitor
r A- r B- r C-
D- Glass
Wood marble Existing
Plastic
Products SK MEUBLES Wooden Tables with Plastic sheet
Table tables marble slab. Glass Table

Price Rs 1780 per Rs 1200- Rs 9000 per Rs 400 per

meter 2000 Rs 300 per
cubic feet. square
square. per square square feet.
meter.
meter.
Quality A lot of test is Main problem Marble Low quality
Quality is
done such as is termite and surfaces plastic and
directly
strength test, other insects. are porous can be
proportional
water resistance Moreover, and can bend
to price. A
test and damages strain. easily
high quality
durability test. when in Moreover, a when
can reach to
constant touch soft marble heated.
Rs 2400
with water. with
square
develop
feet.
scratches
easily.
Service A warranty of 1 There is no No No
Warranty month is offered. warranty on warranty warranty
With a full wooden tables at all. if No warranty
replacement as they are damaged
guarantee. more due to
vulnerable, negligenc
e.
And up to
2 months.
Stability SK MEUBLES A same size Weight are 1 gram per
manufactures a of highest of cubic cm
table which is wooden block all. Counts
having a weight has weight of to be
less than any of 1.5g per 2.6 g per 1.615 gram
its competitors. cubic cm. cubic per cubic
A SK MEUBLES cm. cm.
block has weight
of about 1.6
grams
per cubic cm.
Company SK MEUBLES There are a Marble
Reputatio is an conscious countless Industry is There are
n start- number of known for various
environmentall wooden not providing reputed
y up with furniture any brands liken
integrity, companies guarantee Tuffen and
quality and with varied for its Saint Gobain.
 affordability are reputation. products.
its core values.
Location Currently we are - Near raw Governmen Transportation
bound by our material t is difficult. So
site. has set at
 educational industrial are located
institute. area. in large
Hence, we market areas
have started for more
our venture at space.
Indore
Appearanc SK MEUBLES
e furniture are an
alternative to
marble Add class of
appearance with Provides a Adds Plain finish to the
an environmental natural feel. warmth to and table
advantage of the simple.
recycling the surrounding
plastic. s.

Sales For B2B we are Usually Tables There are There is

Metho focusing on are sold by mostly already People prefer
d Indore furniture retail outlets custom valid to have glass
retailers, and through tables demand. tables but
construction online source. available as there is a
companies and there is a greater
for B2C business wide chance of
we will be difference damage and
launching among breakage.
our official textures.
website soon.
Credit There are no Only applied No credit Applied by No credit
Policie credit policies in in bulk some
s initial order. customers.
stages.
Advertisin Through Brochures Marble Readily Catalogs
g Brochures, are mostly Patterns are available are used
mail, available. shown to in multiple for
contacting customers colors in designs.
database. on retail market.
outlet by
catalog.
Image We want to Depends Depends Durability Brands
position our on on promised position
brand that fulfill brands. brands. by brands. themselves at
the needs of premium
customers with a class
view of customers.
environmentally
friendly products.
 Strategy and Implementation Tools

 TOWS Analysis:
TOWS is an acronym for threats, opportunities, weaknesses and strengths. It
extends a SWOT analysis. TOWS examines a company's external opportunities and
threats and compares them to the firm's strengths and weaknesses. (Rodriguez,
2017) This analysis forms the basis to develop TOWS strategies and to form
actionable tactics.
The TOWS Matrix is a relatively simple tool for generating strategic options. By
using it, you can look intelligently at how you can best take advantage of the
opportunities open to you, at the same time that you minimize the impact of
weaknesses and protect yourself against threats.
1. Advantages of TOWS Analysis Include:
a) It’s not just merely brainstorming some strategic ideas. It’s about actually
linking internal factors to external factors to generate the best strategies for
the organization.
b) It can help you identify strategic options you may not have previously considered.
2. Disadvantages of TOWS Analysis include:
a) It can be cumbersome to use if you have too much information in your SWOT analysis.
b) While the matrix takes you further towards selecting a strategy than a SWOT
matrix, it doesn’t choose for you; you still need to decide upon which
approach to pursue yourself.
c) The quality of the strategic options you generate from your TOWS matrix will
be dependent on the quality of the people you have in the room.
d) It doesn’t help you create a strategic advantage.
In order to form a TOWS Matrix first it is important to make SWOT Matrix first. The
SWOT is a subset of TOWS Matrix.

 SWOT Analysis for SK MEUBLES:

1. Strengths:
a) The material developed by SK MEUBLES is unique and no such material is
available in the market.
b) The company SK MEUBLES is a registered company and can enjoy the
benefits offered to start-ups by the government.
c) The company has already made prototype and generated sales.
d) SK MEUBLES has a low-cost advantage from its competitors.
e) The local authorities are supporting the project as it involves waste management
technique of re-using plastic waste and developing it into a new efficient
business model.
f) The look of the furniture made from the material looks like marble and provides
a high- quality feel and look to the product.
g) Operational cost is low in this project.

2. Weaknesses:
a) The initial cost of set-up and machinery is high.
b) Since the product is completely new in the market the reaction of consumers
towards the product or offering will be really difficult to estimate.
c) The machinery used in the operations require regular cleaning that will lead to
some delay in production.
d) It is difficult to estimate the number of users and market value.
e) The competitors can make similar product and can copy the theme of the idea.
 3. Opportunities:
a) The market opportunities are widely available.
b) Niche market of the product will definitely be going for a repeated sale.
c) The company will get first mover advantage and can capture market faster,
d) New material and high margins on sales which attract other traditional future
sellers to add the product in their catalogs.

4. Threats:
a) The biggest threat to SK MEUBLES is other competitors which have already
captured a huge market.
b) The availability of product in supply chain.
c) Acceptance and preference of the product in market is a big issue.
d) Warranty for the damages may lead to additional cost for the company which
further maybe required to be discontinued.

After analyzing the SWOT Analysis now, we can prepare TOWS Matrix:

TOWS Matrix External Factors

Opportunities
Internal Strengths Strengths/Opportunities (SO):
Factors The material developed by SK
MEUBLES is new and will help to
tap new markets which are
looking for low-cost plastic
furniture’s.
The cost of operation is very low
and efficient that which reduce
the cost of production.
The gates to Urban markets are
opened due to low-cost
advantage.
Mass production capacity will
cut
down the cost.
Weaknesse Weakness/Opportunities (WO):
s Increasing awareness about
the harmful effects of
plastics that will lead to push
customers to purchase the
product.
Eco-friendly products are in high
demand in niche markets.
Constant Research and
Development in the field in order
to go for new styles in products,
this depends to taste and
preferences of the
customers.
Threats
Strengths/Threats (ST):
Decreasing the cost of per unit
furniture through the economies
of scale and government
subsidies.
The Availability of green
resources for furnace is limited.
Widening the product mix in the
niche where hydroponics works
best.
Weaknesses/Threats (WT):
Fumes generated from plastic
will be harmful to some extent
and will generate greenhouse
gases.
The cost of insurance of the
workers are to be bearded by
the company which can lead to
major cash outflows.
The competitors can copy the
product and can capture new
markets.
 Positioning Strategy:
The product is being positioned in targeted market first and then mass market.
1. Targeted Market: They could help the company in increasing sales and also
forming a brand name in the market.
2. Mass Market: Once the product is successfully sold in targeted market, the
company can go for mass marketing of the product.
3. Niche Market: The company will also cater to small set of people who want
similar products for themselves.

 Unique Selling Proposition

1. Unique selling proposition of SK MEUBLES is developing new material which
could be use in furniture and interior product.
2. The product is 100% recycled and support ecosystems by reducing plastic
waste from environment.
3. Even when the product is incapable and fractured the material can be used to
produce a new product. Therefore, it is a constant recycling process.
4. The product is not only efficient in cost but also the look of the table product is exemplary.
5. Once the product become out of use the customer can exchange it for new
product at a discounted rate.
6. The product has a warranty term of 1 month.
7. The customer help line services will also be available in case any damage
happens to product.
8. The home delivery and other convince services would also be offered.
 Sales and Marketing Plan

 Value Stream:
The product on which done its market study is table, which will be offered in many varieties.
1. Primary Market research: SK MEUBLES has been in contact with the municipal
cooperation of Indore for providing raw material, i.e. Plastic Waste for the
product. We have also consulted supplies of retail furniture store for the sale of
tables. We have also designed some of the unique table design with new
material proposition.
2. Secondary Market Research: Even at the time of global pandemic the furniture
industry is focusing on making eco-friendly office furniture. And as Canada is
making towards local branding, the SK MEUBLES products could be preferred
more. Table furniture has been in trend and would increase in sales. There are
many different types of tables that are currently in use. The table top that SK
MEUBLES has designed is new in market and will offer a unique proposition in
the current market. It has been forecasted that the target market will be willing to
buy the product and we also have competitor advantage in pricing and texture.

 Barriers to entry:
SK MEUBLES is willing to sale its products at unique proposition, but it can have some barrier:
1. Traditional preference: Customer may prefer traditional table furniture and not
shift to new material products.
2. Branding: As there are already many big brands in the competition the
company could have problem in branding and capturing visibility.
3. Purchasing Power: The world is suffering from a major loss of income due
Lockdown because of COVID-19 pandemic. Therefore, customer may not invest
their money in furniture and this can cause the company heavily.

 Threats and opportunities:

SK MEUBLES may face difficulty in:
1. Economic Downfall: The world is suffering from recession and especially post
COVID- 19 economy will take time to bounce back. Consequently, it can also
affect the new products. As people may not be willing to be experimental and be
adaptive to what they have traditional.
2. Transportation: We can face transportation issue of product and that can also
affect are finance with high cost.

 Segmentation:
The segmentation would be done on the bases of:
1. Geographically location: The customer who are in the radar of the company
location. For instance, Plant is opening in Indore, Canada. So, all the people
from this location would be our first potential customer.
2. Age (21- 35): The product can attract eyes of young generations and they would
be more will to experiment on new products. They can also prefer products on
the basis of features and cost effectiveness.
3. Reference Groups: The groups who prefer eco- friendly product could be willing
to buy the product. This groups can include individual, families,
environmentalists, schools, etc.
4. Culture: The people from same culture who want low cost good looking modern
product can prefer to buy the tables.
 How you will market your product:
The company will market and advertise the product through different channels such as:
1. Company Website: The company will sell it product B2C from the website.
2. Print marketing materials (brochures, flyer): The brochures and flyers in
newspaper can help company to get visibility.
3. Networking: The company will make a network a retailer who can suggest their
customer SK MEUBLES products.
4. Word of mouth: The company can also advantage through the word spread of
the primary or first customers.
5. Social Media Marketing: The product will be lunched on an Instagram and
Facebook page of the company where the potential customer can buy and also
get knowledge about new products.
6. E-commerce websites: The product will be listed on e-commerce sites such as
Amazon, Flipkart etc. where the customer can get product delivered to their
home.

Advertising may include:

1. Direct Selling: The product can be directly sold to the customers through retail stores.
2. Online Bloggers: The product will be displayed by digital bloggers and
influencers. This will increase online visibility of the brand and encourage people
towards purchase.

 Promotional budget:
The promotional budget may include marketing expenses strategy which will cost Rs. 30000.

Items Quantit Price Amoun

y t
Brochures 2,000 10 20,000
Customers 1,00,000 5,000
Database
Email Post 2,00,000 3,000
Reports and 2,000
Surveys

Total 30,000

 Pricing:
The Value based pricing would be done on the bases of cost advantage and unique proposition.
1. Market Reflection: The price of the product will reflect in the market as the
company focused on producing low cost product with better durability.
2. Competition: The competition has a higher pricing than SK MEUBLES product.
So, we have a competitive advantage in price.
3. Offering: The customer has a very high liking for low-cost modern product and that what
we are offering.
4. Customer service: The customer can return the product after it is out of use and
get discount on next purchase.
Note: The Price of a 20 kg Standard Table will be around Rs.1780/- which is
considerably lower than the competition products.

 Distribution channels:
1. B2B: The channel includes retails, distributors, wholesales etc. The product would
 transport to the retail from where the customer can buy them. The retailing will
include all the furniture store and supermarkets. During current times of COVID-
19 the company will ensure the upstanders of delivery of products to the retails.
This will include sanitized and clean products. Even the transportation would be
more conscious. For the initial times, the company could also promote online no
contact delivery to the customer house from the retailing center. Ever employee
in this distribution chain will be taken care of and no kind of leniency will be
entertained. As the plant is to be set- up in Indore we have contacted some
retails in Indore would be helping us will distribution. (Polymers and plastics,
2017)
2. B2C: This channel will Company's Website, Social Media Pages and
Ecommerce platform. The website and social media will offer the customer the
new and trending product and also have home delivery services. The Social
media we are mainly focusing upon are WhatsApp, Facebook and Instagram.
This Media channel have the prospective customer for our product. Most of the
people between age (25-40) spend their time on Facebook, so we will be able to
get a good reach through this channel. Currently people are preferring to buy
online. So, our more focus will be on online distribution. This will also include no
contact delivery, sanitized safe products and healthy employees. Initially, some
discount coupons can also be allotted for the same.

 12-month sales forecast:

The forecasted sales is estimated when the production starts in July and completing
one year at June. There are three types of product that we have will work on first
year.
1. School table: We have received an order of making 100 school tables.
Therefore, the production of school tables will be high in July and then it will
decrease in preceding months. Although in March, April and June the sale is
estimated to be increased.
2. Coffee table: They are in most trend now. For the first quarter the production will
be low which world affect the sales. However, in the festival seasons the sale is
considered to be higher and then expected to decrease.
3. Office Tables: The production of office table will be minimum till half year. Then
as the sales of school table will decrease the office table production will be more
which will influence the sales.
 Operational Plan:

 Production:
The production of table furniture would be in the following method:
1. Raw Material Procurement: The raw Plastic waste material would be supplied
by consulting municipal cooperation of Indore (where initial plant would be
established). We have already consulted the authorities of the cooperation and
they are willing to help us.
2. Machinery and setup: The machines are available in market. Primary
machinery used are: Shredder, Injection Machine, Compressor. They are all low
cost. We are planning to purchase considering current COVID-19 situation.
The total estimated cost of the machinery = 12,00,000/-
3. Finishing: After the product is made it will need a finishing with polisher and
silicone gel. So that it would be attractive and heat resistant.

 Quality control:
There are many different type of plastic waste. Ranging from single use plastic (soft
and flexible) to PET and PVC (strong and hard). The quality of each type of plastic
may differ by the type of plastic used. There could be an improved quality in high
density plastic and comparatively low quality in single use plastic. To improve and
maximize quality attainment mixture of different plastic waste can also be used.

 Location:
1. The business is located in Indore, Canada. It would be preferred to establish the
plant near plastic dumping ground. So that there would be less cost of
transportation.
2. The project cannot be established in crowded city area as the process involves
burning of plastic (releases harmful gases), so the area could get affected by it.
3. We would also prefer areas away from hospitals and COVID containment zone
for the safety of workers and plant itself.
4. The product will be available to the customers in furniture retail stores and also
delivered online through website.

 Legal environment:
Recycling of plastic waste is one of the most supported projects by the government.
1. License: The company will need a license from state pollution control board
and also support from municipal cooperation of the city.
2. Patent: We have applied for the patenting of the project.
3. Environment and Health Regulation: We have to set up the plant far from the
main city crowd because of plastic burning norms.
4. Special Regulations: As per now there are no such specific regulations for the plant.

 Personnel:
The whole process of production is mostly machinery based.
1. Labour: The labor would be required in finishing and packing of the products.
There is no specific qualification for labour in manufacturing unit. The average
labour cost is approx.
 200 Rs per day which will amount to 6000 Rs per month. There are only two
labour required for operation and maintenance of machinery.
2. Employee: The Qualification of the employee maybe required in finances,
marketing, HR, designing and other departments of the company. Initially we are
planning to hire interns doing under graduation in B.Tech., BBA and other
courses. And a designing professional has already being hired.
We will involve only necessary workers in production. All the other work would be
online. All the employees will have to follow necessary safety and health measure in
the company premises and even outside.

 Inventory:
The production would require raw material inventory that is, plastic waste in
abundance. Other than that, only the finished good may be kept in the plant.
Average cost of plastic Waste is 5 Rs per kilo. And depending on the pace and time
of production the raw material will be used. In comparison, the inventory is very low
cost and is readily available in abundance. The raw material requirements may
increase during festivals and wedding seasons, as its the main time when people
buy more of furniture. The delivery will be done by trucks from place of production to
retail stores and from retail stores, retailers have to arrange for the local transport for
certain distances to the place of the customer. In case of online orders the required
product will be send from retailer directly.

 Suppliers:
1. Raw material: Initially, Municipal Cooperation of Indore is our key suppliers.
There is no short-term crunch expected in the supplies of raw material. The
delivery and transportation cost are expected to be minimized ones the plant is
set up keeping safety in mind.
2. Products: We are yet to find suppliers for products in B2B market. The suppliers
would be wholesales, retails and small furniture selling stores. The packaging
and delivery of finished good is the maximum cost in the company. According to
the market trends the suppliers can also change the trend of the products.
 Customer Relationship Management:
Customer relationship management (CRM) is the combination of practices,
strategies, and technologies that companies use to manage and analyze
customer interactions and data throughout the customer lifecycle. The goal is to
improve customer service relationships, assist in customer retention, and drive
sales growth. CRM includes three broad stages: • Acquiring customers •
Retaining customers • Developing customers In the initial stages of business, all
our CRM activities like categorizing leads, managing customer accounts etc will
be executed manually. However, with growth and expansion it will be easier to
manage income leads and existing customer accounts with the help of CRM
software. (Plastic Packaging Market, 2018)
1. Once the product become out of use the customer can exchange it for
new product at a discounted rate.
2. The product has a warranty term of 1 month.
3. The customer help line services will also be available in case any
damage happens to product.
4. The home delivery and other convince services would also be offered.
5. Also the feedback will be taken from customer and a database will be
developed for the same.
Conclusion

SK MEUBLES is not just a business it’s a solution that reduce plastic waste
from the environment. Our team has been working hard to accomplish this
mission.
If we think about profitability it is estimated that the company will have 10 lakhs
as a profit considering all the conditions. The company wants the investment so
that it can take this opportunity to make useful products with mere waste that
could be prof itable for both the company and the customer base while solving a
major environmental crisis.
The competition in the market is definitely huge, but our new proposition can
stand out from the crowd. We are dedicated to help the environment heal and
also to provide best services to our customer. The market of SK MEUBLES is
huge and if started early it can capture huge market share. Initially, we are more
focused on making trending and profitable product like table, but further we will
expand our scope and try to build many new products. We are also planning in
engaging interior products which would be unique and have a good impact in
the market. If we take about profits, the products are at very low cost and even
if the competition tends to decrease its prices. They will be unable to match our
proposition. At last, SK MEUBLES is first serving the environment and then to
the industry. We will try to add more features into the products and make its
unique place in the market.
  Source of Business Idea:
The idea was inspired by a waste manager professional Dave Hakkens from
Netherlands. He was successful in converting the waste materials into beautiful
furniture’s. The idea was inspired by his findings about the style of the furniture.
After contacting the person, team started working on various procedures and
methods to be followed while handling various types of plastics. Dr. Rajshri
Sarkar, a faculty at NMIMS Indore Campus helped the team with technical
knowledge regarding the subject.

Soon the team was able to prepare a small prototype of the sample material.
The material was up-to the quality standards and was safe to touch anduse as a
material for the furniture. Multiple tests were done on the product to find the
durability and strength of the product. After approval from the laboratory the
team developed their first prototype.

 Alternative Ideas:
Prewery: It is a company providing solutions in Incorporation services, Business
Plan Formulation, Graphic Designing Facilities, Software Analysis Report,
Advance Project services and Resource/Study material to individuals and
corporates.

Reason: The company has scope to grow only in the lock down times, now-a-
daysthere are many competitors in this field. And in order to compete the team
require a large number of highly skilled employees which will be really difficult to
manageinitially.

Infomax: A concept of online database for free digital marketing tools. This site
will provide automatic suggestions Search Engine Optimization Keywords, Email
Marketing Database, Instagram marketing suggestions and Events. The idea
also includes building of the community mainly containing young digital
marketers andinfluencers.

Reason: The idea was dropped out due to competition in the market. After a
deep research in this category, it was found that the idea will not work on this
basis. There is a high marketing and advertisement cost of the services.

Audix: More individuals are listening to podcasts and watching videos on social
media. For this reason, brands are turning to audio and visual content to connect
with consumers. The catch is that many don't have the time to invest in the
production of this content, or they don't have the skills to do it. Audio and video
editors are in demand when it comes to producing quality content for hungry
audiences. But there is high competition in industry and the time consumption
in the work as much more. So, group dropped the idea and worked on new
idea.
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