Académique Documents
Professionnel Documents
Culture Documents
Executive Summary
Contessa is a basically furniture showroom. The name is known by some
geographical area people only in Colombo. It was the wood division of Link Engineering
since its incorporation in 1990. After the acquisition by Blue Ocean Group of Companies in
September 2013, The name Contessa is registered as the separate entity which is going to
function as a separate SBU under the umbrella Blue Ocean.
In future, Contessa will also be diversified into all type of interior work such as steel, glass,
partitioning decorations, curtaining, wooden and laminated flooring and imports and exports
of furniture also. In addition, it is also expecting to expand its wider hands all over the island
through establishing multiple show rooms in selected regions.
Over the years, Contessa has clearly identified a market for its interior solutions. With broad
innovative ideas, customer oriented service or products, and quality of service by the sales
force, Contessa seeks to build a strong market position by establishing its major Blue Ocean
strategy in its activities. It also concentrates on targeting high end residential customers,
commercial development projects, and mid range residential customer segment.
Objectives
To be the top interior decorator firm in the market.
Revenue to more than Rs One billion in the year ended 2018 December
Aims to have 60% sales from commercial developments and 40% from individual
customers over the years.
To have fifteen number of sales outlets all over the island within the targeted four
years.
Mission
To be the most innovative interior solution service provider in the market while enhancing
and ensuring the customer satisfaction.
Target customers /
Segment
Product stage in
PLC
Pricing strategy
Introductory
Premium pricing
Central
Growth
Absorption pricing
Matured market
Loss leadership
Innovative
CLEI Products
(www.clei.it)
Early Introductory
Price Skimming
Stage between
Introductory &
Growth
Growth
Predatory pricing
Office partitions,
furniture, decorative
items & other interior
Contacting corporate
clientele all over the
island which are about
to renovate
Loss leadership
Residential apartments
Highly growth
Pantry cupboards
& Aluminium products
Registering / Tendering
for Office Interior work
& supplying furniture
Vanity Units, home
furniture & Bathroom
accessories
Marketing Communication
Issuing leaflets, targeting public
gathering events & functions.
News paper advertising
Issuing leaflets & newspaper
advertising
Newspaper advertising, email
flyers,
Hoardings (Eg: Sumsung Curved
TV intro in SL),
Promotional Video TV Ads,
heavy paper ads promtions
Issuing leaflets in public
gathering and newspaper ads
Issuing product profiles to retail
sellers and selling through them
by adding profit margin for them
Issuing Contessa Product
Profiles & Album, conducting
presentations, sending email
flyers
Issuing company profiles with
designed albums and the past
history with all activities.
Sending samples to apartment or
property developers and issuing
catalogues.
Marketing Analysis
There is enough market for interior designing solution provider in Srilanka because of the
reason, the entire country in a huge developing phase after the end of the war.
Market for Contessa products is huge according to the governments development plan as
well as private sector development programmers. But, for implementing strategies and taking
business, Contessa hugely requires advertisement and branding.
Economical and political factor is major benefit for Contessa in the coming growth.
Addressable market
Contessa will strategically concentrate on corporate clients. But, in order to establish its
brand name under the household, it would serve to individual customers as well with
household items.
Segmentation
We have identified our market segment as follows:
Group of customers : It differs according to each and every product contessa offers
(please refer table 1.1)
Geography : Concentrates mainly based on Colombo area for interior works and other
regions for some other products (Please refer table 1.1)
Prices : Our strategy would be based on the each product that we offer (Please refer
table 1.1)
Distribution channel : Place mix will be done through direct distribution methods.
Industry Analysis
Industry analysis is a vital part of the decision-making process in a business. A
comprehensive industry analysis helps to take an objective view of the underlying forces,
attractiveness, and success factors that determine the structure of the industry. Understanding
the business's operating environment in this way can help to formulate an effective strategy,
position the business for success, and make the most efficient use of the limited resources of
the small business. We are going to discuss the following sections in the industry analysis:
Product
Competitor
Strategy to eradicate
competition
Moratuwa wooden
manufacturers, Singer
Homes, Damro
Color
pricing
modifications,
Low
Piyestra, Damro
computer tables
low
pricing
and
products
advertising
for
Pricing strategy
All the products pricing will be done according to the market perception (Please refer 1.1)
Although the business seems to be very attractive as every enterprise this also has its own
risks. So it is very important to first identify those risks and then try to implement plans to
mitigate those risks. This will help the firm to understand the reality and focus on those that
may have a critical impact on the success of the firm and not the ordinary operating risks
faced by any business. The natural tendency is to consider what may go wrong, but equally
important is what must go right. The major risks that the firm might face are explained in the
following part.
Competitors response, predatory pricing
There is huge domestic rivalry for furniture industry in Srilanka. But, as Contessa is dealing
with not only furniture but also all type of interior works, it is safer for some points. In
addition, contessa will also be giving quality assurance certificates for customers to ensure
the quality. Here the competitive advantage can be achieved through focus differentiation.
Financial
The company is also exposed to financial risk as even though it is supported by Link
Engineering. But, in order to do big promotional campaigns and participate in exhibitions,
Contessa needs to be waiting for capturing business significantly and required fund.
Macroeconomic changes
As Srilanka market is open economy and full freedom after the civil war, some of the foreign
companies also expanding their business to Srilanka which will be indirectly affect the
business activities of Contessa.
Government Law & Regulations
Even though current governments plan is supportive for growth of Contessa as it gives lot of
opportunities in the market for the development, in the near future, there will be presidential
election which is going to be held in order to re-elect Srilankas new president for next six
years. Uncertainty on the new government will have negative impact on growth of Contessa.
FY 2015
FY 2016
FY 2017
FY 2018
72,577,827
61,691,153
10,886,674
178,992,313
152,143,466
26,848,847
441,433,003
375,218,053
66,214,950
1,088,667,402
925,367,292
163,300,110
3,467,597
3,944,801
3,474,276
1,518,480
1,955,796
7,035,194
7,005,373
12,808,280
4,681,498
8,126,782
14,648,320
13,518,631
38,047,999
8,434,714
29,613,285
29,152,506
26,645,148
107,502,456
16,307,456
91,195,000
Nil
15%
4.79%
2.69%
247%
15%
7.16%
4.54%
247%
15%
8.62%
6.71%
247%
15%
9.87%
8.38%
31-Dec-14
10,000,000
8,500,000
1,500,000
600,000
700,000
200,000
200,000
1
10,000,000
25
400,000
1
31-Mar-15
12,531,631
10,651,887
1,879,745
30-Ju-2015
15,704,178
13,348,551
2,355,627
30-Sep-15
19,679,897
16,727,912
2,951,985
31-Dec-15
24,662,121
20,962,803
3,699,318
31-Mar-16
30,905,660
26,269,811
4,635,849
30-Ju-2016
38,729,833
32,920,358
5,809,475
30-Sep-16
48,534,799
41,254,579
7,280,220
672,000
798,000
409,745
409,745
752,640
909,720
693,267
450,000
243,267
842,957
1,037,081
1,071,947
504,000
567,947
1,200,000
1,200,000
1,299,318
564,480
734,838
1,344,000
1,368,000
1,923,849
632,218
1,291,631
1,505,280
1,559,520
2,744,675
1,200,000
1,544,675
1,685,914
1,777,853
3,816,453
1,344,000
2,472,453
2
6,265,816
32
400,000
2
4
3,926,045
40
400,000
2
6
3,279,983
44
450,000
4
8
3,082,765
55
450,000
4
10
3,090,566
62
500,000
5
13
2,979,218
78
500,000
6
16
3,033,425
88
550,000
6
on 30 June 2015
30-Jan-16
Electronic items
Wooden flooring
30-Aug-16
Steel & S/S Fabrication
31-Dec-16
60,822,020
51,698,717
9,123,303
31-Mar-17
76,219,912
64,786,925
11,432,987
30-Ju-2017
95,515,983
81,188,586
14,327,397
30-Sep-17
119,697,107
101,742,541
17,954,566
31-Dec-17
150,000,000
127,500,000
22,500,000
31-Mar-18
187,974,468
159,778,298
28,196,170
30-Ju-2018
235,562,671
200,228,270
35,334,401
30-Sep-18
295,198,451
250,918,684
44,279,768
31-Dec-18
369,931,812
314,442,040
55,489,772
2,500,000
2,300,000
4,323,303
1,505,280
2,818,023
2,800,000
2,622,000
6,010,987
1,685,914
4,325,073
3,136,000
2,989,080
8,202,317
2,000,000
6,202,317
3,512,320
3,407,551
11,034,695
2,240,000
8,794,695
5,200,000
4,500,000
12,800,000
2,508,800
10,291,200
5,824,000
5,130,000
17,242,170
2,809,856
14,432,314
6,522,880
5,848,200
22,963,321
4,000,000
18,963,321
7,305,626
6,666,948
30,307,194
4,480,000
25,827,194
9,500,000
9,000,000
36,989,772
5,017,600
31,972,172
20
3,041,101
110
550,000
8
25
3,048,796
127
600,000
8
31
3,081,161
162
600,000
10
39
3,069,157
185
650,000
13
49
3,061,224
232
650,000
13
30-Jul-17
30-Nov-17
61
3,081,549
270
700,000
13
77
3,059,255
338
700,000
15
96
3,074,984
400
750,000
15
120
3,082,765
490
750,000
15
Pantry Cupboards
Office Interior
Aluminium products
Other wooden items
Wooden flooring
Laminated Wooden
Marbles & Granite
Glass work
CLEI products
Curtaining & Carpets
Steel & S/S Fabrication
Electronic items
Gross Revenue
31-Dec-14
3,000,000
4,500,000
1,500,000
1,000,000
10,000,000
31-Mar-15 30-Ju-2015
3,000,000
4,004,178
4,500,000
5,000,000
2,000,000
2,500,000
1,431,631
1,400,000
1,000,000
1,500,000
700,000
600,000
600,000
12,531,631
15,704,178
30-Sep-15
4,079,897
6,000,000
2,800,000
1,800,000
1,800,000
700,000
1,200,000
300,000
1,000,000
19,679,897
31-Dec-15
4,062,121
7,700,000
3,200,000
2,400,000
2,000,000
1,000,000
800,000
300,000
1,650,000
350,000
1,200,000
24,662,121
31-Mar-16
4,505,660
9,200,000
4,500,000
2,900,000
2,500,000
1,300,000
950,000
350,000
2,800,000
400,000
1,500,000
30,905,660
30-Ju-2016
4,913,333
11,224,000
5,600,000
3,335,000
3,075,000
1,625,000
1,064,000
395,500
4,116,000
492,000
1,000,000
1,890,000
38,729,833
30-Sep-16
5,600,719
14,000,000
6,800,000
4,000,000
3,967,000
2,100,000
1,400,000
480,000
6,050,520
605,160
1,150,000
2,381,400
31-Dec-16
6,021,610
17,080,000
8,324,000
4,850,000
4,879,410
2,850,000
1,850,000
665,000
8,970,000
850,000
1,282,000
3,200,000
31-Mar-17
6,322,691
20,837,600
9,822,320
5,577,500
6,001,674
3,562,500
2,072,000
751,450
14,810,117
1,045,500
1,384,560
4,032,000
30-Ju-2017
6,639,803
25,421,872
11,590,338
6,414,125
7,382,059
4,453,125
2,320,640
849,139
22,583,273
1,285,965
1,495,325
5,080,320
48,534,799
60,822,020
76,219,912
95,515,983
30-Sep-17
6,971,793
31,014,684
13,676,598
7,376,244
9,079,933
5,566,406
2,599,117
959,527
32,854,914
1,581,737
1,614,951
6,401,203
119,697,107
31-Dec-17
7,320,383
37,837,914
16,138,386
8,482,680
11,168,318
6,958,008
2,911,011
1,084,265
46,343,836
1,945,536
1,744,147
8,065,516
150,000,000
31-Mar-18
7,686,402
46,162,255
19,043,296
9,755,082
13,737,031
8,697,510
3,260,332
1,225,219
63,968,102
2,393,010
1,883,679
10,162,550
187,974,468
30-Ju-2018
8,070,722
56,317,952
22,471,089
11,218,345
16,896,548
10,871,887
3,651,572
1,384,498
86,897,471
2,943,402
2,034,373
12,804,813
235,562,671
30-Sep-18
8,474,258
68,707,901
26,515,885
12,901,096
20,782,754
13,589,859
4,089,761
1,564,483
116,620,883
3,620,385
2,197,123
16,134,065
31-Dec-18
8,897,971
83,823,639
31,288,744
14,836,261
25,562,787
16,987,324
4,580,532
1,767,865
155,031,802
4,453,073
2,372,893
20,328,922
295,198,451
369,931,812
Gap Analysis
Revenue
Rs.1 Billon
Expected Growth
Rs.36 Million
Current Growth