International Christian University

(ICU)

Entrepreneurship Project:

Furniture manufacturing company “Wood Work”

Perebyynis Y. #3052

Kiev – 2009

Contents

Contents …………………………………………………………………………………………………………..2

Executive Summary………………………………………………………………………………………….3

Marketing Plan………………………………………………………………………………………………….4

Overview of the Market…………………………………………………………………………………….4

Ukrainian Market ……………………………………………………………………………………………..4

Current Economic Situation………………………………………………………………………………4

Consumer Profile…………………………………………………………………………………………..….5

Competitor Analysis ………………………………………………………………………………….…5-6

Segmenting……………………………………………………………………………………………………6-7

Geographic Segmentation ……………………………………………………………………………….7 Targeting……………………………………………………………………………………………………….7-8

Positioning…………………………………………………………………………………………………….8-9

Product………………………………………………………………………………………………………10-11

Price ………………………………………………………………………………………………………….11-13

Promotion …………………………………………………………………………………………………12-15

Place ……………………………………………………………………………………………………………….15

Organizational Structure……………………………………………………………………………………………………15-17

Production Plan ………………………………………………………………………………………………17

Cash Flow………………………………………………………………………………………………….……18

Budget……………………………………………………………………………………………………….19-20

Financial Plan…………………………………………………………………………………………….21-22

Executive Summary

Wood Work is a custom-made furniture manufacturing company, specializing in kitchen sets. The assortment includes tables, chairs, cupboards, coffee tables, kitchen shelves.

During the last five years due to development of building & construction sector, furniture industry has grown rapidly. Forests cover 15% of Ukrainian territory. Wood Industry of Ukraine does not fully use the vivid potential resources that are available in the country, much raw material is distributed aboard. Therefore, materials from Western Ukraine instead of the ones supplied from abroad are used. Only 18% of Ukrainian wood industry belongs to furniture industry. After research conduction and collection of secondary data (Internet research, publications in periodicals) and primary data (personal/telephone interviews, e-communication), distinct competitive advantages of the company were identified – 100% natural product (environmentally friendly, health concern), materials from Ukraine (maintenance of low prices), and lack of competitors offering a similar product (custom-made furniture) in the same segment (aimed at customers middle income level).

Wood Work offers furniture made of two types of wood: Oak and Pine – materials beneficial for the health and is positioned as “taking care of our customers” company. Company introduces three main lines of product (classic, modern and mixed) to satisfy desires and needs of consumers. Target market includes middle-class representatives, such as older generation, families with/without children, non-working women.

Based on the study, the following actions are recommended:

1. Locating a business in Kiev:

- Showroom in vyl. Degtiarivska Factors used for location selection: accessibility (intersection of city main transport routes), low rent expenses, high density of potential customers (area inhabited by middle class representatives).

- Workshop in vyl. Osvity

2. Introducing an additional service – furniture restoration (including antiques) one year after reaching break-even-point.

Taking into account fast-moving development of the industry, the company will do its best using its competitive advantages to grow and transform traditions of hand-made wood to family traditions.