Executive Summary

The report contains the present business description of a startup company, Cut & Craft. How Cut
& Craft started, who are the competitors, how the industry is growing etc. are described in the
report. A proper industry analysis is given to show the scopes within the industry. Then the
company description is given to portray the image of the company. Marketing activity is always
a challenging task. And segmenting the market and selecting target market from that is very
important. The report gives a clear description of how the market is segmented for Cut & Craft,
who is in the target market, why they are the target market. The overall marketing plan of Cut &
Craft is delicately presented. How Cut & Craft sees its development processes, what is the plan is
also presented in the report. Through chart the operational activity is shown from three different
perspectives. A development budget is also included in the report. Management body, overall
scheduling and financial projection are also briefly included to make it a complete report.

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Introduction
CUT & CRAFT, a newly opened online shop provides wood crafted gift products at the best
available price in the market. We will use the wood engraving technique that will produces
customized wooden frames, key rings, badges. We hope that the unique product features of the
business will grow rapidly in the monopolistic market. We will use Facebook marketing to run
our business very smoothly. The initial budget is only taka 12000 to start the business. Then we
will observe the current growth and acceptance in the mind set of target group the business aims
to open in a broader span where it will have its own shop, factory, sales team etc.

1.0 Industry Analysis

The industry is at a very initial stage. It is just growing. Even if we look 2 years back there was
no such business organization to engrave photo on wood. The business developed in last 1.5
years. ‘Woodpecker’ is the pioneer in this business. This is the first company to start making
picture engraved frames and key rings. Now there are 2 main online Facebook stores to do this
business. As the idea initiated by Woodpecker and they got the blue ocean opportunity they are
currently the market leader and most renowned. We hope that Cut & Craft will be another
biggest competitor in this industry. There is another competitor named ‘Art Matters’. Besides
these competitors there are some traditional shops mostly located at Katabon do the business.
But in terms of quality and service the main competitors are the two online stores.

Industry Size, Growth Rate & Sales Projection: The industry is very small. In F-commerce
sector there are only two main competitors. But it is growing. Seeing the prospect and success of
the present ventures there are some other shops are emerging. And as the need of gift products is
increasing every day the size of the industry will grow accordingly. The sales are also increasing.
Because now a day people want something unique, and these products are indeed unique. So the
sales are increasing. In 1 year ‘Woodpecker’ delivered more than 5000 Products. Being new in
the market Cut & Craft will target to deliver more than 200 orders in within the three months. So
our sales will grow in a rapid rate.

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Industry Structure: The industry still does not have big corporations. Hence the structure is not
well defined. The newest addition in business that is f-commerce is the main structural element
of the industry. Complete online system and operation through Facebook is the structure of the
business. All the companies who come up work with the follower or challenger strategy as
Woodpecker is the market leader with strong position in the market.

Nature of Participants: Participant entrepreneurs are very young who are still students or just
graduated. They are up to date and well aware of the customers’ need.

Key Success Factors: The uniqueness and customization option is the main success factor.
Besides online order and home delivery service is also working as success factor for the industry.
Now a day people try to avoid heavy traffic jam. Hence this online business is getting popularity.

Industry Trend: Industry focuses on the youth. Promotional offers are given on special
occasions when people usually buy gifts. Eyeing to special days like Eid, Mother’s Day,
Valentine’s Day, Friendship day etc. the industry focuses on the business.

Long Term Prospect: In long run the industry has wide option to increase its product list.
Engraving or acrylic, steel etc. can be introduced. New product line such as wooden cards, lamp
shades, album etc. can also be introduced.

2.0 Company Overview

‘Cut & Craft’ is a new start up online store that will do the business with wood crafted gift
products. It will start on 7th April 2018. Within short time we expect that it will capture the eye
of its target customer with creative design. Cut & Craft will use wood engraving technology to
make its products. There are three types of products are wooden Frames, Key rings and Badges.
Wooden badge is the inception of Cut & Craft and in Bangladesh this will be the only store that
sells it. The price range is competitive but lower than that of the competitors’. Cut & Craft have
only a physical production house and a office. The business will completely run online through
Facebook.

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Mission Statement: Providing best quality at the best price.

Objectives:

Our objectives are divided into three categories as like following:

Marketing Objective
Achieve projected market share of 10 percent within five years.
To represent an image of highest quality in which it competes.
To cover markets in all over Bangladesh.

To increase the production and distribution capacity to satisfy future sales while
maintaining present quality.
To improve product quality through continuous research and development.

Financial Objective

 Earn an annual rate of return on investment of 10 % after taxes over the next five
years.
 To achieve break even quantity within years.

Campaign Objective
To create high quality, positive and permanent brand image.
To establish a brand personality as smart, friendly, reliable and trustworthy.
To get the maximum demand from the consumers.
Our campaign will focus on the quality of the product.

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Products:

a. Wood Engraved Frames

b. Key Rings
c. Badges

Current Status: The business is at initial stage.

Legal Status & Ownership: As the business will run only based on online and there is no
physical address, it is not yet registered. The current laws do not have any clear instruction about
online ventures. There are six owners with equal share to this business.

3.0 Market Analysis:

Market Segmentation

The market is highly segmented. The business will deals with only those people who use
Facebook. The Facebook users can be se segmented by age or geographical location. According
to age group there can be 4 segments.

a. Age 12 to 16 - young students who highly depends on parents

b. Age 17 to 25 – students of college and university who have got some independent
opinion.
c. Age 26 to 35 - young professionals
d. Age 35 to 60 – middle aged and aged professionals

Target Market Selection:

Among these segments the middle two segments are the major portion of Facebook users. Hence
these two segments are targeted. The product features and trend also matches with these
segments.

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If we segment by geography then we get urban and semi urban people using Facebook. Here the
urban people are targeted because these people are more concerned about innovative gifts.

Customer Behavior:

Since the majority of the buyers are young they always want innovative and perfect products.
Price convenience is a big issue to them. They won’t buy a cheap product if it is not up to the
mark but will try to get the best product at the cheapest price. Cut & Craft will also focus on this.
The price is not cheapest in the market but it provides the best price ensuring the best quality.
And this will be very much attractive to buyers.

Competitor Analysis:

There are two main competitors in the market.

a. WOODPECKER
b. ART MATTERS

Among these two Woodpecker is the pioneer and market leader. Hence it enjoys price advantage.
Even after setting a high price the sales is not hampered. This company has good market
reputation and a strong position in the market.

Cut & Craft and Art matters have similar pricing. But in terms of quality Cut & Craft will be
more acceptable. We hope that Cut & Craft will get more acceptance than this company and the
promotional activities of Art matters are also not so trendy.

4.0 Marketing Plan:

Overall Marketing Strategy:

Cut & Craft’s business will be completely based on Facebook. Sponsored advertisement in
Facebook is the key marketing tool. Besides using young stars and upcoming celebrities viral
campaign is made. Cut & Craft will provide gifts to different bands, models. These celebrities
share the pics of gifts to their wall/page. This sharing will helps in reaching more people and
creating trust in customers’ mind. There will be some catchy punch lines. The Tag line is

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“Furnish Your Moments”. And there is a hashtag that is, #GETCRAFTED. These catchy lines
will be used with every campaign. All the promotions will make keeping the brand color black
and wooden color in mind. The packaging and the brand name itself work as marketing tool.
Whenever someone sees the name ‘Cut & Craft’ an automatic curiosity is created in that
person’s mind.

SWOT Analysis

Strengths:
 Variety in products for all walks of life
 Selected placement/ distribution based on online
 Wide range of products as extension to wooden craft products
Weaknesses:
 Disruption in raw materials in the recent past
 No physical shops available at the beginning
 Limited verities or products at the beginning
Opportunities:
 The market is expanding at the increasing rate
 As the numbers of brand competitors are very much limited there is a good scope for
capturing the market.
 Cross-culture impact plays a significant role in increasing the number of occasions and
relation in the calendar year.
 Manufacturing of the crafts locally will lower the cost and ultimately resulting lower
price.
 Foreign market can be tapped.
Threats:
 Political instability
 Local manufacturers are gradually improving their productions and thus there will be
increase in competition.
 Economy is stagnant and the standard of living is generally low.

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Marketing Mix:
Product, Price, Promotion & Distribution:

Cut & Craft’s products are wood engraved frames, key rings and badges. Price setting is done by
value based pricing. It will be also competitive and Cut & Craft will ensure best product in best
price. The promotions will run online in Facebook. The promotion budget will be BDT4000 a
month. Post boosting to increase reach and sales is the core promotional activity. For distribution
Cut & Craft will provide a free home delivery all over in Bangladesh. This delivery will be done
by a third party. Cut & Craft do not have its own delivery system. Hence a third party will
involved here an emerging courier company named E-courier will be the logistics partner of Cut
& Craft.

Sales Process, Sales Tactics:

When a customer orders something, a sketch will be shown to him/her in two days. After the
sketch is approved it will takes 5 working days to deliver the product. Sales will mainly done in
Cash on Delivery process. Customer will pay the price while receiving the product. Direct
communication with every customer is made to ensure sales. As it is crafted based on customer’s
design, the management needs to communicate each and every customer. Online marketing is the
only marketing tool.

5.0 Design & Development Plan

Developmental Status & Task:

At the beginning Cut & Craft will buy wood from fixed vendors. The engraving is also
outsourced. So there will a lot of scope to make further development. For the expansion of the
business, own laser machine and factory is needed. Employees for designing and manufacturing
will also be required. At first a ware house is needed and the company needs to hire it. Then
licensing the business is needed. Purchasing laser machine and other equipment will be the next
step.

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Challenges & Risks:

The main challenge is there is no entry exit barrier. So anyone can come and start the business.
The fixed cost that will be spent on the development activity may go in vain if the market trend
changes and more competitors come to the market.

Proprietary Issues:

At first a trade license will be needed. It will not be only an online store so the license will be
required. After some days of operation with the new set up gradually the patents will be done. At
initial level only a trade license will be sufficient.

6.0 Operations Plan

General Approach to Operations:

A. Cut & Craft’s Perspective

Sketch Payment
Knock Sketch
Order Approval Handling transfer
from Developme Production
Placing form to Courier from
Customer nt
customer Courier

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 B. Customers’ Perspective

Contacting
Paying to
Cut & Craft Placing Approving Receiving
Delivery
through Order Sketch Delivery
Agent
Inbox

C. Courier’s Perspective

Deliverying
Receiving Transferring
Collecting Sorting the and
order from the Money to
Supply products Collecting
Cut & Craft Cut & Craft
Money

Business Location:

Facebook is the business location. For selecting the ware house location, it won’t be a problem
because customers get home delivery.

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7.0 Management Team & Company Structure
Management Team:

Suraiya Zaman

CEO

Kazi Mehedi Hasan Tuhin

Chief of Design

Board of Directors:

Nazifa Afroz Pinte

Nahida Akter

Md Ferdous Khan Liton

M Jayed Latif Prince

Board of Advisors:

Md Ashraf Harun

Company Structure

Board of Directors Board of Advisors

CEO Chief of Design

Operationnal Operationnal
Designer Designer
Employee Employee

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9.0 Financial Projection:

Projected Development Cost:

Name of Element Amount (BDT)

Laser Machine 300,000
Ware house Rent (6months) 90,000
Designer Salary (6 months) 60,000
Worker Salary (6 months) 42,000
Raw Material (for 6 months) 300,000
Overhead Cost 75,000
Logistic Cost (Delivery for 6 months) 150,000
Miscellaneous Cost 25,000
Total 1,042,000

Products Costs:
A. Wood Engraved Frames:
Frame Sizes with Price:
5" x 7" Frame: BDT 1150
6" x 9" Frame: BDT 1250
10" x 12" Frame: BDT 2950
10" x 14" Frame: BDT 3450
10" x 16" Frame: BDT 4000

B. Key Rings:
Price List of Key Rings:
Pre Designed Key Rings: BDT 180
Custom Design Key Rings: BDT 200

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 C. Badges:
Wood Engraved 2.25" x 2.25" Badges Any Design (Pre designed or custom): BDT 160

Initially in our first 3 month we will invest almost around 100,000 taka & we assume that our
sales growth with the revenue will be 150000. On July we will do breakeven.

Investment sales
April 12000 10000
May 28000 30000
June 60000 110000
------------------- -----------------
100000 150000
---- ----

July (breakeven time) 150000 200000

August 200000 250000

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Evaluation

• From our Marketing Research we have come to this point that we will be able to achieve
the breakeven point by the within a year.
• If we can create right response among the customer then we can reach our company
target properly.
• Our promotional strategy should be sound, effective & appropriate to create the
appropriate response in the target market.
• Beside this we may apply both push-pull strategies as a part of our extensive marketing
efforts.
• Starting with selective distribution we will be able to profitably cover the whole market
within our plan.

Controls:

From the very beginning we will keep an eagle eye on our consumers’ perceived value. We are
planning tight control measures to closely monitor quality and customer service satisfaction. Our
company’s goal is to satisfy our customer through superior value so our control standard should
also be consistent with our goal. After every month we will evaluate our marketing plan and
measure this with the standard. This will enable us to react very quickly in correcting any
problems that may occur.

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Contingency Plan:

Product:
Customized products can be introduced by Cut & Craft in order to compete with Woodpecker in
this wood craft category. Providing a wider variety of products addressing most of the local
cultural occasions, programs and relations they can maintain a strong heart share.

Pricing:
If some of the products are manufactured with local assistance then price will reduce and be
competitive.

Placement:
Increasing the number of variety so that existing market can be reached and prospective market
can be addressed.

Promotion:
Increasing the promotional activities day bay day in the form of point of sales activities as well
as sponsoring youth events like concerts, debates and other shows.

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Conclusion

In the report different problem areas of Cut & Craft have been identified through analysis of the
marketing mix and strategies under taken by the company. Marketing plans consisting of
different strategies have been designed to address these problems including promotions to the
sales, image lifting, developing product designing and monitoring them. The cost of
implementation of each of the strategies in the marketing plan has been provided in a detailed
budget for few months. Possible responses of the competitors and Cut & Crafts secondary plan
to counter those responses of the competitors are also part of the Plan. By keeping the expenses
limited to the budget available, we believe that the recommended changes can enable Cut &
Craft to increase its market share significantly by expanding its sales volume.

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