Poppi Designs is an importer of Italian furniture serving New York. Although the original business was established in N.Y. 10 years ago, it has experienced many changes in its business strategy. The model is to import an extensive range of Italian furniture and to sell it primarily directly to designers and unfinished furniture retailers. Two principals are Kate Jackson, located in New York, and Luca de Febonio, located in Rome, Italy.
Poppi understands that good furniture is very competitive and will therefore target niches to reduce competition. Generally, they will concentrate on locations out of reach of larger furniture superstores. Poppi Designs will control the entire importation process thanks to Luca’. Poppi will have Luca as its principal in Italy. He also acts as an agent.
Poppi Designs follows three key principles to achieve success. Poppi Designs’ first key to success is building a long-lasting, mutually beneficial relationship with its customers and vendors. A second key is to make sure that their products are delivered on time. The last key to success is reliable administration of the organization.
Poppi has been set up as a business from home with additional warehouse space. This arrangement will provide the best value and the highest level of support.
Poppi Designs will target the following market segments. The first, that currently comprises 80% of their business, is specialty retailers. This segment is growing at just 2% and has 16 potential clients. Poppi can reduce their dependence upon this niche through targeted marketing. The second is designers. They also enjoy a 2% growth rate and have 44 potential customers. The last targeted niche is unfinished furniture retailers growing at 2% with a potential market of 50 participants.
The market is less about brand equity and more about the actual product and the service provider. The customer should be able to feel and touch the product. The salesperson plays an important role in the transaction. Poppi is able to choose from a wide range of manufacturers, rather than only being able sell products from certain companies.
Sales calls are crucial to this strategy. These sales calls need to be made by the owner, Kate Jackson, by virtue of her background and knowledge of the products and competitors. Experience has proven that the more time she devotes to sales, the more sales result. It is essential to find a full-time employee and add them as soon as possible. Kate is unable to sell if too much of her time is diverted by this person.
Poppi Designs with its well-focused business plan will reach profitability by month two. Based on conservative forecasts, sales could almost double between years one and three. The net profits will be proportional.
Poppi Designs’ objectives are:
- In order to create an efficient and reliable administrative system that allows the owner to focus on selling and managing major accounts.
- Poppi will focus his efforts on select markets that have been discovered to be promising.
- To increase the reliability and timeliness in shipments from Italy.
Poppi is a small-scale manufacturer that supplies chairs and other furniture products to niche markets. Poppi Designs owner draws on her interior design knowledge, experience in furniture retail and contacts in Italy to create products that meet the needs of these niche markets.
1.3 Keys for Success
Poppi Designs’â€™s business is a success story.
- Offering high-quality, unique products that are not widely available. This is important for maintaining the niche market segments mentioned in our mission statement.
- Reliable and prompt deliveries Poppi must deliver on its promises. Poppi must keep its promises due to the fact that it does business in Italy. This requires long-term planning, including consideration of Italian holidays and business practices.