Product Marketing Helps Furniture Maker Generate Capital for Growth
In 2004, the current owner purchased the land with the intention of returning it to its former purpose. He made some repairs and installed some equipment and the company began making chairs, tables and beds.
A small furniture maker approached the Azerbaijan Agribusiness Center (AAC), supported through USAID’s Rural Enterprise Competitiveness Project, for help. A site visit revealed that the manufacturing area needed to be expanded and equipment would be needed to increase production and manufacture furniture other than the chairs, tables and beds being produced. The AAC team also noted that while there is a strong market for quality furniture, the client had no promotional materials to attract buyers.
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| AAC has been helping its client address key deficiencies to meet the demands of a growing market |
AAC Account Manager Mobil Penjaliyev set to work, collaborating with a printing house in Baku to create a company logo and professional catalogue. The new marketing materials were distributed among furniture shops throughout the country, with the hopes of boosting sales sufficiently to generate capital for much-needed factory improvements. The catalogue quickly yielded results: one buyer purchased 70 table and chair sets and agreed to continued collaboration which will lead to nearly $1,000 in additional monthly sales revenues for the client.
Despite early sales success, financing was needed to expand quickly enough to capitalize on the market. AAC staff helped develop a business plan which the client presented to several financial institutions for backing. The furniture maker recently struck an agreement with a bank for a five-year, $30,000 loan at a 7 percent interest rate to repair and expand the factory and purchase new equipment.
Penjaliyev and his AAC colleagues have committed to working with the client during this exciting, critical stage of its business development.
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