Executive Summary
Quinby's Incredible Fantasy Furniture
Based in the Upper Peninsula of Michigan, Quinby's Incredible Fantasy Furniture, doing business as QIFF, is a manufacturer of ready-to-assemble "fantasy furniture" for children. Young people and their parents will love QlFF's functional—yet fun—furniture because it is.safe, easy to assemble, and practical.
Company Mission: QIFF's mission is to create high quality, unique, easy-to-assemble furniture for children, and do so in an environmentally sensitive and profitable manner. Our secondary mission is to take advantage of tourist traffic that currently exists in the Upper Peninsula of Michigan.
Ownership and Operations: Incorporated as "Quinby's Incredible Fantasy Furniture," the company is in its start-up phase and will be privately owned and operated by Forrest and Martha Quinby. The Quinbys have a combined total of 45 years' experience in the children's furniture industry, most of which is in sales and manufacturing.
When assembly begins in January, Forrest Quinby will fulfill the duties of president and CEO, and Martha Quinby will be vice president and CFO. The president and vice president will handle all administrative functions, oversee the management of dailv operations, and advertise and sell the furniture. Five additional employees will design and market the tumiture, handle purchasing, and provide quality control at the manufacturing sites.
Product Offings: QIFF's product line will include standard twin and bunk beds, cribs, dressers, desks and tables, rocking chairs, toy boxes, and accessories such as clothes racks and shelves. In addition, QIFF's warehouse will be visible to its customers and will include a children's play area and gift shop.
Competitive Strategy: QIFF's competitive advantage lies in its unique styling and simple assembly. Parents can create a fantasy world for their children, and do so easily and economically. Customers will never have to worry that the furniture will break under the stress of active play or that it will cause injuries with sharp comers and rough edges.
Customer Philosophy: Customer satisfaction is critical to our success. Therefore, we will offer an unconditional money back guarantee for anyone not completely satisfied with their furniture. This return guarantee will demonstrate our willingness to offer excellent quality while ensuring customer satisfaction.
Financial Strategy: We will price our products to.eam a 55 percent profit on pieces priced more than $400, and a 38 percent profit on pieces priced less than $400. Quinby's Incredible Fantasy Furniture will grow by reinvesting profits through the first three years. Annual sales projections by the fifth year are $10 million annually.
Market Opportunity
Industry Background: Research indicates a growing desire for furniture that can be easily transported and assembled at home. The "ready-to-assemble" furniture market is growing about 15-20 percent each year, and furniture manufacturers expect continued growth at a rate that is faster than traditional furniture (which is about seven percent). The mam buyers of this type of furniture are adults, ages 24-45.
Target Market: QIFF will be marketed to upper income parents, 25 to 50 years old, who have children under the age of 15. A secondary market will be grandparents, relatives, and other adults. The furniture will be marketed to upscale retail outlets, such as Furniture Palace. Future plans include expansion into mail order sales.
Target Market Research: QIFF worked with nationally respected opinion researchers to solicit consumer feedback on our four main products—beds, dressers, desks, and chairs. Ten separate focus group studies and one intercept study, where 250 people were polled, indicate that 84 percent of respondents would purchase a product from QIFF. Thirty percent of respondents said the unique design would be a reason to purchase, 44 percent felt ease of assembly would be the main reason to buy, and 32 percent felt safety would be the most important factor. No one felt cost would be a deterring factor. Additionally, more than 92 percent indicated thev would visit the showroom and play area when in the Upper Peninsula, regardless of their intention to purchase furniture.
Competition: QIFF will compete tor sales against traditional furniture manufacturers, builders of children's furniture, and makers ot "ready-to-assemble" furniture. Our advantage is in our unique product offerings and our simple assembly. Marketing-Strategy. QIFF will market using cooperative advertising and retail support. Our fantasy play land, located next to our customer showroom and manufacturing site, will give us additional promotional reach support. Current and potential customers will be welcome at our play land, where they'll learn firsthand how fun and functional our furniture truly is. They'll also be able to take a bit of fantasy home with them by buying miniature furniture at our gift shop.
Operational Plan
QIFF's operational strategy will involve outsourcing the manufacture and packaging of the wood and wood/plastic furniture pieces. Delivery will be handled by two local companies. Mr. and Ms. Quinby will oversee the remaining operations at the Marquette warehouse. Products will be manufactured using hardwoods that are available in the Upper Peninsula.
Long-term Goals
In five years, QIFF expects to have 36 employees and annual sales of $10 million. Plans will be well under way to bring the manufacturing in-house and to add a catalog sales department. Our goal is to have captured 10 percent of the children's furniture market by 2010. We plan to continue manufacturing from our Upper Peninsula location, but may acid satellite sales and manufacturing facilities if necessary.
Funds Sought and Utilization
The company is seeking $120,000 in financing , which will be used for start-up inventory, equipment purchases and working capital. The funds also will be used for design and development of the initial line of furniture, and for marketing and sales activities.
Northern Initiatives can be contacted at (906)228-5571
