Htoo Wood Co. Ltd.’s Business Plan for Trade Fair in Germany by (1) Mr. Thein Han Thu (2) Mr. Thawda Tun (3) Ms. Thin Ei Ei Phyo (4)Ms. Hnin Thiri Aung.

Htoo Wood Co. Ltd.’s Business Plan for Trade Fair in Germany

by (1) Mr. Thein Han Thu (2) Mr. Thawda Tun

(3) Ms. Thin Ei Ei Phyo (4)Ms. Hnin Thiri Aung

(5) Ms. May Oo Zaw

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Content 1. Mission2. Objectives of Showcasing in Trade Fair3. Company Overview4. Overview of the Trade Fair5. Selection Criteria6. Product Information7. European Market Analysis 8. SWOT Analysis9. Marketing Plan10. Financial Plan11. Key Activities and Timeline12. Follow-up Plan13. Expected Projections

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To grow profitable market in EU countries through superior customer service, innovation, quality and commitment. . .

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Objectives of Showcasing in Trade Fair

• To build brand awareness of value added wood products of Myanmar

• To create new sales• To develop new market• To find new distributors/partners• To attract potential customers• To increase total sales by 10% within 1 year

after trade fair

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• Htoo Wood-based Co., Ltd.• Established since 1997• Furniture manufacturing, procurement of wood and wood products,

local sales and exporting of furniture • 2 Factories in Wahtaya Industrial Estate • Over 350 Employees• Annual Sale Revenue of USD 100 million• Awards from Myanmar Forest Products and Timber Merchants

Association• Experiences in Domestic and Regional Trade Shows• Website: www.htoowood.com and www.winwood-furniture.com

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Company Overview

Overview of Trade Fair

• Name – Tendence International Consumer Goods Fair

• Organizer – Messe Frankfurt

• Venue – Frankfurt, Germany

• Time – 24 to 28 August 2012

• Event only for showcasing interior decoration and crafts

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Overview of Trade Fair (Conti)

• Around 2,000 exhibitors and 52,162 visitors from 104 countries

• Visitors are mainly importers, distributors, chain stores, department stores and home decoration professionals

• Procurement Platform for retail chain and department stores

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Selection Criteria • Why select wood-based furniture?

– Plenty of raw materials in Myanmar– Said to be “Gift of God”– High technology and best practices– EU countries import wood furniture

• Why select this trade event?– Large number of visitors within a short period of time– Handy transportation– Geopolitical situation– Place of both tradition and dynamism– Multinational atmosphere– Developed infrastructure

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Product Information

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Price - Euro 45 per Sq Meter FOB Yangon

Teak Flooring

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Price - Euro 900 per set FOB Yangon

Teak Table

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Price – Euro 750 FOB Yangon

Teak and Leather Bench

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Price - Euro 1,200 FOB Yangon

Teak Bed

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Price - Euro 900 FOB Yangon

Teak Cabinets Decorated with Sea Shells

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Price - Euro 250 FOB Yangon

Teak Carvings

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Price - Euro 350 FOB Yangon

Teak Accessories

European Market Analysis

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EU Market

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Sr. 4 major Importing EU Countries

Import Volume (Euro)2003 figures

Sr. Exporting Countries

Value (Euro)2003 figures

1. United Kingdom 4,379M 1. China 605M

2. France 4.5B 2. Malaysia 171M

3. Italy 9,46M 3. Indonesia 106M

4. Germany 6,348M 4. Thailand 92M

5. Vietnam 85M

6. South-Africa 71M

7. Brazil 68M

8. India 38M

9. Turkey Not Known

10. Philippines Not Known

Table 1: Table showing furniture importing and exporting countries

EU Market (Conti)Sr. Country Housing Stock

(Thousands)Consumption (Million)

Market Share EU25

1. Germany 39,500 16,785 22.6%

2. Italy 26,525 12,332 16.6%

3. UK 25,772 10,079 13.6%

4. France 29,495 8,664 11.7%

5. Spain 16,851 6,341 8.5%

6. Netherlands 6,977 3,322 4.5%

7. Sweden 4,370 1,826 2.5%

8. Total Selected EU Countries 149,491 59,349 80%

9. Total EU 15 172,438 68,949 92.9%

10. 10 new EU countries

Total EU 25 countries

26,873

199,311

5,250

74,199

7.1%

100%

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Table 2: Figures showing Furniture Consumption in EU (2004)

Retrieved at 20th June 2012, from http://pdf.usaid.gov/pdf_docs/PNADH793.pdf

SWOT Analysis

• Strengths– Plenty of Raw Materials– High Experience – Well-established Business Networks– Strong Financial Background– High Technology– Expertise– Own up-stream enterprises

• Weaknesses– Lack of EU Market Experience

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SWOT Analysis

• Opportunities– Huge Market Potential– Changing Emotional Behaviors

• Threats– International Competitors– Financial Crisis in EU

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Marketing Plan

• Product– Furniture with elegant designs using teak and hard

wood (quality, brand, design, etc.)• Price– Consignment, Commission, Negotiable payment terms

• Place– European Union Nations, via appointed distributors

• Promotion– Endorsement, Discounts

4 Ps

Financial Plan

Source of Fund US Dollars

Assumptions: Annual Sales

Budgeted Trade Fair Cost (Based on Annual Profit)

100,000,000 (100%)

1,500,000 (10%)

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Financial Plan

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Sr. Cost Description % Subtotals (US Dollar)

Trade Registration(375 Euro/exhibitor)

Exhibit Space Rental Fees (600sqm@193 Euro/[email protected]$)

Exhibit Booth

Transportation

Labour

Promotion

Show Services

Ancillary Events

Booth Staff

TOTAL BUDGETED COST (USD)

10%

25%

10%

5%

20%

10%

5%

15%

100%

500.00

149,500.00

375,000.00

150,000.00

75,000.00

300,000.00

150,000.00

75,000.00

225,000.00

1,500,000.00

Key Activities and Timeline

Sr. Activities25-Jun 26-Jun 27-Jun 28-Jun 29-Jun 30-Jun 1-Jul 2-Jul 3-Jul 4-Jul 5-Jul 6-Jul 7-Jul 8-Jul 9-Jul 10-Jul 11-Jul 12-Jul 13-Jul 14-Jul 15-Jul 16-Jul 17-Jul 18-Jul 19-Jul 20-Jul 21-Jul 22-Jul 23-Jul 24-Jul 25-Jul 26-Jul 27-Jul 28-Jul 29-Jul 30-Jul 31-Jul 1-Aug 2-Aug 3-Aug 4-Aug 5-Aug 6-Aug 7-Aug 8-Aug 9-Aug 10-Aug 11-Aug 12-Aug 13-Aug 14-Aug 15-Aug 16-Aug 17-Aug 18-Aug 19-Aug 20-Aug 21-Aug 22-Aug 23-Aug 24-Aug 25-Aug 26-Aug 27-Aug 28-Aug 29-Aug 30-Aug 31-Aug

1Contact Event Organisers

2Research EU Standards

3Consumer Market Research

4Export License application

5Application of Required Certs

6Design of Display Booth

7Register Trade Fair

8Pamphlets preparation

9Sample preparation

10Hire Independent Contractors in Ger

11Organise team and arrange airtix

12Look for legal consultants for contracts

13Sample Shipment

14Display Booth Setup

15Trade Show

16Display Booth Takedown

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Follow-up Plan

• After show visit• Getting feedbacks from officers and key employees• Shortlisting some distributors identified in event• Thanking those distributors• Prompt mailing of materials• Discussions within organization• Follow-ups telephone callings• Processing inquires • Financial analysis• Final report and documentation

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Expected Projections

• About 500 new contacts made• Increase in exports by 10% in target markets• 15% increase in orders from existing

customers• Fit least 2 ideas for new furniture

development

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Thank you for your time!

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