CHAPTER 1: THE COMPANY

1.1. The concept

History

“There is no end to nostalgia”

The idea of business is inspired by retro visuals. Twenty years ago, Business Week determined a term so called “nostalgia boom” that create a throughout feeling towards customer society. Thus marketers, they further noted through responds with an emerging range of retro movies, retro fashions, retro autos, retro advertising campaigns and retro beverages (Stephen Brown, 2018).

As a result, many recognized that practising a “retro vibe” was passing fantasy that runs through a form of societal stock-taking in the days of yore the new millennium took off (Stephen Brown, 2018). Further up, another twenty years after such predictions, the established term by Business Week so called ‘nostalgia bonanza’ is remaining strong and showcases small amount or no harbinger of taper off. Which is how the business idea of CEMDE comes into surface, the company’s product offering was conceived from the various photographs collected over the years.

Figure 1. Example of retro photographs. Source: CEMDE.

In fact, market trends are running on cycle and retro is appeared to be attractive to market players which how CEMDE reckon a ‘perfect-timing’ opportunity to be part of this market trends due to its premature realization of this ‘retro’ product trends. The main resource of the product is from a digital collection of retro photographs from the creative directors which bring inspirational images of modernity with a touch of past times.

Additionally, nostalgia being determined as a proactive dimension as well. The proof is currently displayed in the market as: Polaroid instant camera and Volkswagen’s New Beetle fifties-style fridge which have emboldened other entrepreneurs to conduct such business. The leading management gurus suggest companies to deliver old brands back rather than creating new ones (Johnson, 2018), supported by the ever-up-to-date Economists (2014, p.76) who now accepts that in these present times, “the best way forwarding is backwards”.

The business environment

The business is planned to operate within The Netherlands with no physical store available and relying on an online platform to operate the business. The term of this business practice: E-commerce. The level of confidence in this digital age to run a business without a physical store is utterly soaring. The omnipresence of digital connectedness and interactions open doors to a legion of business opportunities for European companies and the survey results stated 89.3% of companies are comprehensively cognizant of the contemporary prospects brought about by the digital revolution (Monitor, 2018).

In technology adoption aspect, it divulges that all start-ups and companies under development have the largest share of adoption with over 78% and firms developed in the national market showcase the lowest share at 47% (Monitor, 2018). According to the research, most start-ups (similar to CEMDE) are digital technology oriented. In European and global markets, an adoption rate is comparatively high, approaching number of 60% and 68%. Through these technological aspects, CEMDE derive into conclusion to establish an e-commerce start-up business in The Netherlands to potentially meet all the targeted market demands and market situation in the country itself.

The use of ’on demand’ production:

The source of the product:

1.2. The Vision Statement

“To experience the touch of pleasant remembrances in modern era living spaces.”

The value behind it: our target market (millennials) can use the product beyond its original function and explore more psychological aspects behind every image. The researcher stated that: nostalgia visualised as “pleasurable therapy” (Lowenthal, 2015, p.47) and as a fast-growing and fashionable area that abundant overture opportunities for ambitious academics (Veresiu et al., 2018).

1.3. Mission Statement

The company is on a mission to provide created nostalgic home decorations, art and designs to compose a livable and aesthetic piece of art or decorations for people with a high sense of aesthetic and minimalist lifestyle.

The mission statement in brief:

•    To bring incipient atmosphere to the world of interior design and provide an ocular perceiver-catching and unique product from vigorous erudition and perpetuating the study of both current and traditional decorating styles and design trends.

•    To ensure quality and valuable product that has a psychological impact.

•    To establish CSR (Corporate Social Responsibility) to contribute to the social cause issue.

1.4. The Products

The product sales forecast

Sales Assumptions	Research to Support Sales Assumptions	Critical Risk/ Weakness of this Assumption
–	–	–
–	–	–
–	–	–

 

1.5. Legal Status and Ownership

The company incorporated as a Limited Liability Partnership (Dutch term: BV) and the management is on the verge of including it. The company will hire the services of a solicitor who will ensure that the various legal requirements complied accordingly. The company owned by Chyntya Dewi who saddled with the responsibility of managing the affairs of the company. Together with the office administrator, the outsources (AA accountant and digital marketing agency), the organization is expected to perform forward thinking for organizational efficiency.

Due to the existing legal obligation to compose articles of association in establishing a BV and create a record, the company is obliged to rely on the service of notary for BV formation. The assets of the BV divided into shares; the manager receives these shares upon incorporation in the capacity of BV founder (s). The manager, as a shareholder, able to participate in the company and claim dividends. With this legal form, the owner’s private assets strictly separated from the business assets of BV.

However, the owner is 100% responsible for any business debts incurred since the legislator is not distinguishing company assets and private assets. As a result, the business owner trades their own risk and expenses within this legal form. The essential aspects of forming BV includes; registration at the Chamber of Commerce (KvK), accounting record, and notary.

1.6. Basic Corporate Information

• The trading title: CEMDE BV.
• Country: The Netherlands.
• City of operation: Amsterdam, North-Holland.

The company will conduct the business under the terms and conditions of a Limited Liability Partnership (LLP). A Limited Liability Partnership (LLP) is a structured business model similar to a partnership; however, in this case, the partners have limited liability as the name itself suggests (Das and Das, 2018). In this business category, the maximal accountability of every partner is enclosed by his share capital in the partnership. Furthermore, this partnership variant selected because it is a popular option for start-ups.

1.7. Company Structures and Human Resources

Figure 1-6. Company Structures and Human Resources.

The company would function as a dynamic with open communication procedures. The team are expected to have creative minded and excellent social skills to ensure the functionality of the company remain productive and actively engaging. The manager would work as the HR person who recruits any potential addition to the team. Hierarchy structures is not part of CEMDE’s company structure; as a small company, CEMDE intends to reach young and independent individual to be part of the team. The reason of this chosen company structure is to allow current generation to participate in the creative industry and provide more innovative and fresh ideas to the company for long-term growth.

The HR plan and details on job descriptions of each role provided in section 5.2 (Operations and Product Development Plan).

CHAPTER 2: INDUSTRY ANALYSIS

2.1. Industry Definition

CEMDE generally belongs to the creative industry, which is a subset of the arts industry. Creative industries definition hotly contested within the early 2000s with debates on the construction of a working definition as well as a sector with which it incorporated. The assumption that creative industries were evolving spaces dealing with multifaceted interactions between cultures, technology, knowledge as well as economics caused a heated discussion (Della Lucia and Segre, 2017). According to the United Nations Conference on Trade and Development (2008), creative industries are “cycles of creation, production, and distribution of goods and services that utilise creativity and intellectual capital as primary inputs; constitute a set of knowledge-based activities, focused, although not limited to arts, potentially generating revenues from trade and intellectual property rights; comprise tangible products and intangible intellectual and artistic services with creative content, economic value and market objectives”. Creative economy includes such sectors as books, arts, films, crafts, paintings, songs, festivals, digital animations, songs as well as designs, among others. The creative economy is essential since it generates income through intellectual property rights. It creates new jobs in places of higher occupational skills, as well as trade, such as exportation, for both middle and small-sized ventures.

The level of originality attained in a work of art is of great paramount in the industry and this is more of the reason most artists keep to the expression of their brilliance and creativity rather than relying on recreation and duplication which may even be considered an intellectual theft if done without a written prior permission of the original creator of the art. The creative industry usually engages in the production of decorative arts objects utilised in the enhancement of everyday life as well as home interiors. These artistic objects include fabrics for upholstery and clothing, furniture, and clothing items among others. The level of originality attained in a work of art is of great paramount in the industry and this is the reason why most artists keep to the expression of their brilliance and creativity rather than relying on recreation and duplication, which may even be considered an intellectual theft if done without a written prior permission of the original creator of the art.

New York City, for instance, is the cultural capital of the United States and probably the whole world. In this city, arts play an important role leading to economic development through expenditures as well as receipt of a host of activities, such as museums, Broadway, non-profit theatres, concerts, dance and opera, galleries, auction houses, television productions as well as motion pictures among others. New York’s venture into creative industries has made the city a significant tourist attraction leading to the attraction of various investments as well as entrepreneurs promoting its growth. Countries have made it a priority in the promotion of creative industries to ensure that they not only pass their culture to other people around the world, but also earn revenues from such sectors. Most developed countries earn billions of moneys every year from creative industries making these industries among the backbones of a country’s GDP (Americans for Arts, 2019)

2.2. Industry Growth and Size

The decorative print market is growing as consumers look to enhance the aesthetics of their homes and businesses. Ornamental printing volume is virtually 13.1 billion square metres in 2018, with a value of more than $18.9 billion.  Smithers (2018), forecasts the market to grow 5% annually from 2018 to 2023. The percentage covers a range of incipient and traditional processes and materials.

The Netherlands:

According to journal published by Dutch Ministry of Education, Culture and Science: Culture at a First Glance (2016), innovation and creativity and innovation are the fundamental elements for the knowledge advancement in the society. The creative industries are magnificently placed to connect these elements to innovation and technology as well as designing new application in some areas as an instance: infrastructure, healthcare, etc.

In addition to that, creative industries are considered as a contributor to Dutch cultural enrichment and economic growth simultaneously with resolving social issues. To accomplish the power of creative enterprise to Dutch advantage, the industry demand to obtain knowledge institution, education sector and authorities to corporate with the creative industry. Thus, as part of its business policy, Dutch government has determined creative industries as one of The Netherlands’ vital economic sectors.

2.3. Industry Characteristics

 

Industry segmentation:

Figure 0‑1.1. Market Segmentation. Source: AMR Analysis (2015).

The world home décor market (AMR, 2015) is segmented as:

Furniture:

• Kitchen
• Livingroom and Bedroom
• Outdoor
• Lighting
• Bathroom

Textiles:

• Bath textiles
• Bed textiles
• Kitchen and dining textiles
• Living room textiles

Floor coverings:

• Wood and laminate
• Vinyl and rubber
• Carpet and rugs
• Tiles
• Others (bamboo, concrete, etc.)

The furniture segment encompasses furniture according to its utilisation in different living spaces. The ‘frame’ furniture that utilised in the living room is the one that is cognate to CEMDE products.

The market player(s) in the Netherlands:

Furniture utilised as domestic purposes and commercial purposes, the materials and design are the fundamental factors for the industry as it directly influences the customer’s decision to make a purchase (AMR, 2015). The furniture businesses in the Netherlands are highly competitive in terms of prices and market offers. One brand offers an extreme variety in their product categories which sanctions the customers to obtain abundant resources for their complete home embellishment and renovation. These are visibly some of the most-kenned furniture stores in the Netherlands that withal offers the comparable products as CEMDE:

• IKEA

This Swedish brand has achieved this prosperity by providing a unique value proposition to consumers which is leading-edge Scandinavian design at bargain prices. Because IKEA inherited unique design from Sweden and lower bargain price advantage, they create compact product which are come in boxed and requires whole assembly at home. Thus, the product reduces shelf space, more facile to convey, and seldom to distribution

Area of specialisation: assembled furniture

• Rivièra Maison

A Dutch home décor brand, Rivièra Maison, is dedicated to bringing classic interior designs to their devoted base of customers both in-store and online. Their exclusive amassments are meticulously designed with a fixate on detail, providing customers with unique and stylish products to embellish a comfortable home.

Area of specialisation: classic furniture and home décor, flowers and gifts.

• Wehkamp

Company information: Wehkamp was a frontrunner in the digital revolution. They went as one of the first online in the Netherlands. This recognition gave them a head start in gaining market share in the Netherlands. With the result that they switch to be a consummate e-commerce business in 2010. The enormous prosperity of Wehkamp optically discerned back in the fact that 48% of Dutch families are conventional customers.

Area of specialisation: lifestyle marketplace.

• VTwonen

VTwonen is a multidisciplinary company that invested in three different industries. These industries are tv making, magazines and home decoration. VTwonen utilises the similarly called tv program and magazine to promote the habitation embellishment they have available on their e-commerce website. By doing circle promotion, they can sustain a constant a wholesome amount of name apperception what avails them to stay a prominent player on the market.

2.4. Industry Trends

The increasing rate of urbanisation:

A key driver for décor print is the magnification of real estate business (Smithers, 2018) which is driving demand for supersession and incipient fixtures, fittings, wallpaper, and furniture. More homes result in more people making culls and redecorating. Incrementing urban population is one of the vigorous impacting factors affecting the domicile décor market.

Due to growing urban populations, the living spaces remodelled into more diminutive and more sumptuous. Although more buildings constructed, the community will have to take into consideration how interior design executed perpetually. Smithers (2018) added that homeowners would find ways to optimise their property through astute divisions and space-preserving furniture, leading to boosting demand for decorative printing.

Fashion trend:

The cull of materials to embellish living spaces is chiefly a matter of personal taste. The industry inspirits continuous updates to counteract tear and wear or per household trends and the transmuting design (Smithers, 2018). The ever-incrementing exposure to luxury workspaces and luxury homes showcased via TV make-over programmes or celebrity photoshoots demonstrate the latest trends in the home décor industry itself.

The Dutch TV program, VTWonen, demonstrate the puissance of home décor through room make-overs, DIY, home inspiration, and latest trends presented by the experienced stylists from the industry.

Figure 2-2 Source: Vtwonen.nl (2016).

Marketing trend:

Buzz marketing in this type of product is emerging on the convivial media platforms as many ‘influencers’ have starting to promote home décor and living space inspiration.

Figure 2-3. Source Instagram post: (Isaya, E. and Bruna, 2019)

CHAPTER 3: MARKET ANALYSIS

MARKET/BUSINESS ENVIRONMENT RESEARCH

Porter’s Five Forces Analysis

3..1. Market Segmentation and Target Market Selection

The goal is to create high-quality prints for the target groups, which is mainly young teenager to adults ranging from 20-35 years old. The reason of specific chosen target market and age range: Millennial Generation is the biggest e-commerce consumers in the world.

According to E-commerce Foundation (2018), millennials generation in The Netherlands have online activities that fully integrated into their lives with the percentage of 53% internet usage from their smartphone to the online shop and 90% of general internet usage of the smartphone by 2017. Additionally, according to the report, Dutch consumer preferences for purchasing a product has ‘furniture and homeware’ as one of the most purchased online products. Additionally, the buying behaviour continually changing, supported by an incremental aspect of offers from international companies and the progress of technology. Further up, the online sales are now booming with additional turnover up to 19% in 2016 (Santander, 2019).

• Market segmentation:
• Demographic:

– Gender: Male and Female

– Age: 20-35 years old (Millennials)

– Social status: employed, self-employed professionals, college students, creative industry worker (artists, designers, stylists, photographers, etc.) and blogger.

• Geographic: The Netherlands.
• Behavioural patterns: regular online shopper, aware of environmental issues, skilful in decorating private space with aesthetic designs.

CEMDE potential costumers concentrated in the millennial segment of the market. They are more innovative and tend to move with the updates of the technological world. With the right marketing strategy, the company suspects to experience a tremendous growth since the efforts concentrated on attracting this particular segment.

Further up, CEMDE intends to integrate the use of its E-commerce platform through expansion to reach the global market with the same demographic and behavioural patterns, as previously mentioned (in The Netherlands). However, in-depth knowledge of new geographic market research lacked — this research done through monitoring the industry performance in that area through market research.

3.2. Buyer Behaviour

Theoretically, there are factors influencing the consumer buying behaviour:

THE EXTERNAL:

• Cultural factors: In 2016, 73% of the Dutch population aged 12 or older had ever made online purchases (CBS, 2017). Further up, the most purchased products through the internet by Dutch consumer are clothing, followed by travel and accommodation, tickets to event, books, magazines, newspaper and household goods and appliances (where CEMDE is becoming part of).
• Social factors: the life satisfaction level of Dutch population is fairly high, with the percentage amount standing around 90% for those people aged 18 years or older which conclude Dutch are customarily happy people (CBS, 2017).

THE INTERNAL:

• Personal factors: Santander (2019), stated that Dutch consumer is decidedly sensitive to prices and special offers. Additionally, Dutch consumer praise quality as the uttermost crucial factor which drives them to purchase higher price for a product with more top quality. With a GDP per capita of USD 51000 per annum (23rd in the world), according to Santander (2019), the Dutch consumer is relatively well-off yet does not spend effortlessly. Traditionally, Dutch consumer tends to resist change and prefer to purchase natural products.
• Psychological factors: Dutch consumer is sensitive to advertising and such advertising will reflect on sales efficiency (Santander, 2019). The current trend in the Dutch market is evolving towards sustainable, healthy and practical products. Furthermore, many advertisings have recently done in the vicinity of the environment, which affected Dutch consumers into buying eco-friendly products.

To understand the purchasing pattern of the customer segment, it is equally important to understand buyer behaviour. The company mostly targets the millennial has the habit of acquiring aesthetics and arts of various kinds and are often minimalistic. The acquisition of the photo prints provided by the company will not only be a hot cake in this market segment but also inspire many more people to hone their creativity

3.3. Competitor Analysis

The company’s direct competitors are the companies that are actively involved in the provision of Scandinavian home decorations, art and designs and aesthetics pieces of ornaments. The major competitors for the company are:

• DESENIO (https://desenio.co.uk)

DESENIO offer a wide range of stylish posters and prints showcasing the latest interior design trends and always with great prices and high quality. With their wide assortment of primarily Scandinavian art designs, they affect good wall art that suits every home.

• Projeckt Henri (https://projekthenri.com): a newly established online prints for contemporary interiors founded by a German photographer.
• Paper Collective (https://www.papercollective.com): Denmark-based iconic design posters online seller.

3.4. Estimation of Annual Sales and Market Share

The company seeks to drive sales through various digital platforms, including Etsy, as well as social media, for instance, the company’s web platform. With the integration of the digital sales of the company’s products, the company is set to rapidly capture more markets outside the shores of Europe. Venturing outside its country of origin will not only enhance its customer base or market but also ensure that all its branded products reach out to all art lovers around the world. During inception, most companies tend to shun away from global markets. However, CEMDE will ensure that it increases its market base through international ventures.

The company will conduct several studies in different parts of the world to ensure that it understands both cultures as well as the beliefs of people in various parts of the world. In this way, CEMDE will be able to provide it utilise market segmentation to its advantage by producing products suited for each market. Demand-driven and customer-oriented business strategies will, therefore, be adopted to ensure that products availed at each market are accepted by all target customers increasing the market share (Naghi Ganji et al., 2018).

CHAPTER 4: MARKETING PLAN

The target audience

CEMDE’ target audience for marketing performances ranging from 20-35 years old regardless of gender. Statistics have shown the average annual income in the Netherlands for those target audience, starting from 20-24 years old: €14.440 and 25-29 years old: €27.260 and 30-34 years old: €34.740 (Statista, 2017).

According to CBS (2017), in 2015, over 31% of average household spending for that particular age was spent on housing cost. This percentage reflects the urbanisation population as a part of a market trend where more people demand to own or rent living space that increments the authorisations of buying home décor product.

The most popular marketplace that is used by the Dutch population is Bol.com, followed by Coolblue, Wehkamp, Zalando, etc. (Ecommerce Foundation, 2018).

This figure shows the type of online purchase by the individual based on age in 2016. 5% of the Dutch population between 12-25 have made households goods and appliances purchases, increasingly, 10% of the Dutch population between the age of 25-45 have created an online shopping of the same product category.

Figure 4-3. Netherlands population in 2018. Source: (Statista, 2019)

As the figure illustrated, CEMDE’s target group stand on the second largest population group in The Netherlands, reaching the number of 4.253.083. According to CBS (2018), the current social trends in Dutch population are feminisation in primary education and ageing population. Overall, the research showcased a slight fluctuation in the education sector in The Netherlands, such as lower hourly wages, high absenteeism, etc.

However, CEMDE might require revisions on its current mission to respond to the demographic changes in the present times although the trends have no direct impact on the industry where CEMDE operates. Is there another demand increases from the ageing population? In which way, the company need to respond? Will, the ageing population, results in demand for tangible presence for the business? Will the ageing population require the industry to expand the product line?

The ageing population in The Netherlands are somewhat involved in technological trends occurring in this era. Social media are rising among seniors in The Netherlands in recent years (CBS, 2019). Direct messaging such as WhatsApp as an instance, 8 in 10 Dutch people aged 12 and over currently the user of this platform followed by continuous growth among older adults with above 75s from 15 – 32% in a span two years. Further up, the use of social networks among elderly increased piercingly especially in 2018, the share of 65 – 74-year olds increase to 34% compared to 2012 which reached only the amount of 12% in this particular trend. Moreover, 8 in 10 Dutch consumers shop online as stated by CBS (2019), in 2018 around 11.5 million Dutch people, 78% of the population aged 12 and over had purchased services and goods online. Statistically, the percentage had increased from 64% in 2012 up to 78% in 2018. Among the group of age 65 and over, the share of online purchase has increased from 25% in 2012 to 45% in 2018.

In addition to that, 94% of people among 25 – 44-year olds stated that they had purchased something online in 2018 followed by aged 45 – 64 years with 83% of online purchases (CBS, 2019).

Thus, the conclusion to this situational analysis is the demographic trends in The Netherlands generate small-scale impacts to CEMDE business strategic. Small changes are required in the future to tightly connected to Dutch consumers through a broader range of services and bonuses.

Marketing message:

CEMDE’s chief marketing message generated through social media channels which demonstrates how the product perfectly placed in many living spaces while illustrating sentimental value. The campaigns contain short words that are concise and inspiring, leading the customer to discover the unaware needs. CEMDE will expose the contributors of artworks to present the customer with a factual message on how the product created. Additionally, the promotional campaign will be engendered afterwards, which sanction customers to purchase with discount and bonuses where the promoters will be the social media influencers. Most influencers have their niche, and CEMDE expects to drive traffic to all platforms and eventually generate sales from this brand promoter

4.1. SWOT Analysis

Figure 4-2. The SWOT Analysis.

Strengths: As an art-focused company, the first strength of the company lies in the ability of the company to churn out original products and not based on copy or re-sell of another photographer or artists’ work. CEMDE’s strength lies in the ability to offer the customer the designs at competitive rates, as well as making it easier to acquire through digital channels. The company also has consistent talent searching for young and independent photographers and artists in The Netherlands.

CEMDE’s USP:

The critical point that differentiates CEMDE from similar competitors is the product. Composed by talented and developing young talents with only one specific theme which is retro/vintage artworks for simple, yet elegance finished product. CEMDE aims to provide an old-fashioned and old-times experience in the form of wall art that is universally applicable for all types of interior design, whether it is classic or urban. The competitors have similar business practices as to how CEMDE intends to be, but the theme of the product is considerably different in terms of artwork types and styles.

Weakness: the company has to outsource some work of designs and photography. This issue might be due to the magnitude of the orders the company has received or some other factors. Consistency in collaborating with the best artists and photographers might shift into problems as they might not put this to priority. Additionally, the partnership with a printing company in Amsterdam might cause confusions, miscommunication and less power on production control.

Opportunity: The growth of the art industry is on the rise. Many new companies are scanning for artworks to create designs that will further enhance the looks of their homes, offices, etc. CEMDE intend to capitalise on this knowledge and convert the preferred choice of the target market. The company also uses a web platform for its service delivery to acquire customers outside its base possibly.

Threat: A new competitor offering low-cost products, as well as the creative individuals drawing, snapping pictures and printing, among others, serve as the primary threat in the industry. Another danger CEMDE faces in the industry is the possibility of business imitation by other companies. The rise of a company with a similar strategy to CEMDE, whether intentionally copied or not would serve as a threat against the business.

4.2 MARKETING PLAN

4.2.1. Target market/competitive analysis

4.2.2. The product

Available dimensions:

• 21×30 cm (A3)

• 30×40 cm (A4)
• 40×50 cm (A2)
• 50×70 cm (A1)

Key features:

The company will make use of very original pictures which uniquely sourced. This picture will afford the company the opportunity of patenting each work and protecting it from the prying eyes of competitors and ensuing copyright infringements. The customers have assured the uniqueness of the company’s art that they hold.

The product theme is inspirational retro photographs. CEMDE presume technological era generate massive changes to recent generation, CEMDE intends to provide the therapeutic product to inspire present life eagerly to the target market.

CEMDE resources are not from history, resources made in modern life and acquiesce the technological advancement re-touch the image to display retro and vintage atmosphere (during the image editing).

The materials:

Customer’s advantage:

The benefits that costumers will achieve through CEMDE’s prints are authenticity and well-crafted product. Customer satisfaction is guaranteed, together with exceptional services and promotional offers.

Workmanship:

The picture on the left side is one of the examples of CEMDE resource in digital form.   The product sample will be displayed on right side.

Example:

Figure‑1-4. Example of photograph and product.

Additionally, the main principle of CEMDE products is social responsibility and solid creative partnership with the selected artists and photography students in The Netherlands. To ensure the collaboration with young creatives, CEMDE promotes social responsibility on each product. CSR delivered to CEMDE fundraising plan to support medical access and supply for Indonesian’s tobacco farm who employs children underage. Main reason of medical supports is the fact that those children have to interact with dangerous and toxic ingredients actively. According to Human Rights Watch (2016), the children working on tobacco farms in Indonesia exposed to poisonous pesticides, extreme heat and nicotine. CEMDE fundraising plan is mainly concerned about the health and children’s morals of the problem causes.

PRODUCT SERVICES:

Customer service policies:

– If the customer receives a defected or different product, the revered individual granted with gratuitous product changes upon their cull.

– If the product distribution is delayed and not as promised by the logistic partner, the customer will receive €5 credit on their membership account for the next purchase.

– Secure payment and privacy details bulwark on CEMDE’s website.

Return policy

30 Days Money Back Guarantee.

Unsatisfied customers are eligible to receive 100% refund during the first 30 days after receiving the product. After 30 days, the policy is no longer valid.

Office space:

In consideration to CEMDE operational activities from daily to longer-term, office space is required to fortify the company’s productivity. The chosen office space will be in the Centre of Amsterdam, located in the building with many creative businesses. The office space is as small as 20m2, and the interior design budget deducted from the manager’s investment.

Advantages/disadvantages of the chosen available area:

The office space situated in a unique location with various high-quality facilities. Besides, the office building has a superfast fibre-optic connection and indispensable in today’s business operations.

 

Product risks within the industry:

CEMDE selects Nationale Nederlanden as an insurance provider to protect the essential elements as a start-up. The chosen insurance package has these following services:

• Inventory-, goods-, and tenant interest insurance
• Business damage insurance
• Legal assistance insurance companies
• Liability insurance companies

4.2.3. Pricing Strategy

The company will adopt the product/market pricing strategy. This concerned with costumer’s benefit in purchasing the product offers and related services across available suppliers. The main focus is obtaining the right position for the price in discovering connection to competitor’s prices at involving market, product and segment. This pricing strategy issues reflection on marketer’s view on how the customers compare prices and particular product in contrast to competitive offerings (Roegner et al., 2005).

The company’s product/market pricing is first to draw the attention of the target market to the product offering of the company. Even though the company seeks to make a profit, the company will ensure that the pricing of the designs is not over and above what the customer segment can afford. The pricing of each product determined by the artwork’s quality and the amount of creativity expended. Among other factors to approach a clearer understanding of what elements of the product that customer perceives as valuable

The price’s amounts are calculated by adding the variable cost, shipping cost, production and VAT.

The variable cost:

– COGS:

These prices are the price from the cooperating printing company that assist the production activity from CEMDE’s digital source. From these prices, CEMDE would accumulate a sustainable base price with market-oriented pricing in consideration to similar products (competition) in the market.

• 21×30 cm: €2,50

• 30×40 cm: €3,95
• 40×50 cm: €5,95
• 50×70 cm: €7,95

– Shipping: €5.00

– Production: €2.00

– VAT: 21%

 

Total variable cost per-product:

Print size: 21 x 30cm Shipping Production cost VAT Total:	2,50 5.00 2.00 21% = 11,50
Print size: 30 x 40cm Shipping Production cost VAT Total:	3,95 5.00 2.00 21% = 13,25
Print size: 40 x 50cm Shipping Production cost VAT Total:	5,95 5.00 2.00 21% = 15,60
Print size: 50 x 70cm Shipping Production cost VAT Total:	7,95 5.00 2.00 21% = 18,00

 

After all the total variable cost are computed, adding a profit margin is the final step to generate profit into the price.

CEMDE intends to earn 10% profit margin from the products over the variable costs.  This percentage is considered to ensure that overall CEMDE prices are acceptable in the market in comparison to our competitors.

Target price = (variable cost per product) / (desired profit margin: 40%)

The profit margin expressed as decimal equals to = 0.40, so the variable cost is divided by = 0.60.

Overall prices of CEMDE products: (rounded up)

Print size: 21×30 cm	11,50 / 0.60 = 19,15
Print size: 30 x 40 cm	13,25 / 0.60 = 22,00
Print size: 40 x 50 cm	15,60 / 0.60 = 25,00
Print size: 50 x 70 cm	18,00 / 0.60 = 30,00

 

An overview of competitors prices with similar products

DESENIO These prices are: – include frame – exclude shipping cost	·         21 x 30cm: 20,71 ·         30 x 40cm: 31,13 ·         40 x 50cm: 47,34 ·         50 x 70cm: 57,30 (prices are in euro: €)
PAPERCOLLECTIVE These prices are: – include frame – exclude shipping cost	·         21 x 30cm (custom order) ·         30 x 40cm: 58.00 ·         40 x 50cm (custom order) ·         50 x 70cm: 94.00 (prices are in euro: €)
PROJECTHENRY These prices are: – exclude frame – exclude shipping cost	·         21 x 30cm (not available) ·         30 x 40cm: 56,00 ·         40 x 50cm: 63,30 ·         50 x 70cm: 91,45 (prices are in euro: €)

4.2.4. Sales and Distribution Plan

The distribution:

In designing distribution channel, CEMDE concerned about these following options:

• Customer desire and whether the channel convenient for the products.
• The channel preference from target market based on market trends.
• Channel location.
• Delivery time
• Extensive customer service.

The channel operations should balance customer needs, cost of channel maintenance and customer price sensitivity (Armstrong, Kotler 2005).

As a start-up company, CEMDE considered the optimum usage of the web shop would be the most beneficial in terms of cost savings. The distribution handled by the company itself, which save some amount of distribution cost, and no external warehousing activity is required. Additionally, CEMDE has arranged to establish a logistic partner with DHL and estimating the product will arrive to the customers within 3-5 working days to ensure the efficiency of our distribution process.

Payment methods:

These following payment methods are targeted to be available in CEMDE web shop:

– iDEAL(obligatory)

– PayPal

– Credit card

The sales:

The company’s products will be offered mainly through the company’s website with additional availability in some e-commerce marketplace that is available in The Netherlands, namely: Groupon, Etsy. High marketing investment is strongly advised to attract customers as an online-based company. The combination of these platforms will afford the company the opportunity of acquiring more customers outside the company’s concrete base. Additional return option for every purchased product is available as part of CEMDE customer services upon the return policy, and the customer is allowed to choose between refund or product exchange

4.2.5. Sales Process and Promotion Mix

Promotions and Advertising Plan

Promotion: The management will ensure that all the customers, to a reasonable degree, are satisfied with the prints. This type of first-hand market research will prove invaluable in attracting more customers and retaining existing ones. Social Media includes all internet and mobile-based publishing technologies, including websites, email, etc.

The social media platforms which CEMDE will utilise include but are not limited to:

• Influencer marketing
• Facebook, Instagram, Pinterest.

The strategy is to grow the business by nurturing clients, differentiating the company’s prints from our competitors, mainly through service and solid business ethics. All criteria from customer satisfaction, service provision, and price competitiveness are to be looked at thoroughly in the initial stages as areas for improvement.

 

Advertising/Marketing Techniques

Activity	Appropriate	Maybe	Not Appropriate	Top Priority?
Advertising (print, broadcast, Internet)	✔︎
Alliances			✔︎
Annual reports & reviews	✔︎
Associations		✔︎
Book and publication writing			✔︎
Brochures & collateral materials			✔︎
Customer advisory boards	✔︎
“Customer experience” enhancements	✔︎
Customer surveys	✔︎
Direct mail	✔︎
Directories		✔︎
Event sponsorships & trade shows		✔︎
Internet-based marketing				✔︎
Newsletters	✔︎
Promotional giveaways	✔︎
Press relations campaign	✔︎
Pricing strategies	✔︎
Referral sources campaign	✔︎
Seminars & public speaking		✔︎
Signage (vehicle, office, roadside)			✔︎
Trade shows			✔︎
Yellow Pages TM			✔︎
Website – unique domain/development				✔︎

Table 4-1. Marketing Techniques

 

“Marketing Mix” of Tools and Techniques

Top Priority Marketing Techniques (from above list)	Steps needed to implement	Estimated Costs (€)	Timing / Deadlines	Person Responsible
1. Internet-based marketing	·         Create an internet marketing plan ·         Create on and off-page SEO and bolster SEM campaign with PPC (Pay-per-click) ad campaigns. ·         Use social media to reach more and specific audience. ·         Use email marketing to send promotional offer ·         Analyse and monitor the web data	– SEO: 500/month – PPC: 5% monthly ad spend – Email marketing: 350/month – Social media marketing: 250/month	1-3 months	Digital Marketing Agency
2. Website – unique domain/development	Design website that matches the brand identity, attractive content and engaging message.		1-3 months	Digital Marketing Agency

Table 4-2. “Marketing Mix” of Tools and Techniques.

CHAPTER 5: OPERATIONS AND PRODUCT DEVELOPMENT PLAN

5.1. Operation Plan

The workflow of on-demand product creation:

1. Selecting the digital artwork based on the order.
2. Send the request to Printenbind.
3. The product printed and framed by Printenbind.
4. Packing process.
5. Delivery by DHL.

Quality control:

To support CEMDE’ product quality control, the checklist composed after the first samples are received, the following aspect required on the checklist:

• Colour (Is the colours consistent? Do the colours crack or fade? Do the colours match the orders?)
• Materials (Is it identical to the sample? Is it consistent)
• Size and dimensions (Are they identical or same as order request and sample? Are the dimensions accurate?)
• Odours (Do the products smell chemical?)
• Finishes
• Packing

The operational plan itself is behaving toward short-term detailed processes of the organisation. It supports the daily nature and involves operations functionality of the organisation such as marketing, sales, inventory and budgeting. The plan is to provide continuous optimisation and improvements to achieve these areas: productivity, efficiency, turnaround time, cost reduction, quality, and customer satisfaction.

5.2. Product Development Plan

The essential requirement for production process:

• Office space
• Computers and other tools in the assets
• Complete artwork resources

Production and delivery time frame:

It will take half-a-day to process CEMDE’s orders for one day (if another order comes after this, the order processed the day after); next, one or two CEMDE members will pick up the culminated product to the company and do the ‘warehouse’ in CEMDE office, lastly, the courier will come by the cessation of the day to pick up all the orders and ship it to customers. The customer will receive the product within 1-3 business days.

Production inventory:

CEMDE does not necessarily have storage space (warehouse) for stocks, materials, etcetera. The business operational mostly occurred in CEMDE’ office space, for instance; data management, project management, etcetera. The product control is done in CEMDE headquarter itself to have direct damage fixation before the product continues to the packing and shipment process.

The development project:

5.3. Human Resource Plan

 

Name	Title	Role	Salary According to PayScale/Year
Chyntya Dewi	Manager	Overseeing the activities of the company	Not fixed
	AA Accountant	Responsible with all the financial activities and records.	6,000/year Rate: €100/hour Monthly hours: 5 hours   Fixed salary per month: €500   Yearly working hours:  60 hours
	Office Administrator	Provide administrative support to office personnel.	18,000/year Rate: €25/hour Monthly hours: 60 hours   Fixed salary per month: €1,500   Yearly working hour: 720 hours

Table 5-3. Human Resource Plan

 

Role details:

Office Administrator:

• Carrying out critical rules, include answering phone calls, responding to mails, and preparing documents.
• Performing bookkeeping tasks; monitor account receivable, budget tracking, and invoicing.
• Maintain general office files; job files and other operational files.
• Purchase office supplies, furniture and equipment.
• Monitor the maintenance of office equipment and facilities.
• Responsible for budgetary control and planning for all digital communications across all channels.

OUTSOURCE:

Accountant personnel:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides management with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.

Marketing Digital Agency:

• Web design and creation
• Designs effective strategy for the marketing operations of the company.
• Ensures the implementation of the sales, marketing and promotional plans of the company.
• Responsible for all social media channels, performance and activity to optimise the performance against KPI (Key Performance Indicator).
• Managing product campaigns and contents throughout all social media platform (Instagram, Facebook, Pinterest)
• Building relationship both externally and internally, including social media influencers, brand partners and other digital content creators.
• Collect monthly reports on performance for all digital communications across all channels.
• SEO optimisation.
• Monitor the ROI of social media efforts.
• Marketing automation to develop nurturing strategy.

External Professional Resources

• A corporate lawyer who will be hired from time to time to offer legal advice and services to the company. This will include the examination of each contract signed on behalf of the company by the CEO and other delegated staffs.