Week 2 Project: Business Plan – Part II

Arrangement_of_Plants_20130805134658

Industry Analysis and Trends

Industry Overview

  • Today, the Floral Industry brings in over $35 billion dollars, $4 billion of that from online sales alone. Even though the industry has enjoyed retail earnings in the billions for over a quarter century, there is room for change. Companies like Edible Arrangements and Sherries Berries have created unique alternatives to the traditional flower giving business. My idea, Living Arrangements, hopes to put an assortment of plants and flowers on the tabletops and desktops of gift receivers everywhere.

Market Opportunity

  • A large portion of the population, both personal and business, give flower arrangements for holidays, special events or as part of their service magic. There are not a lot of options for giving flowers and plants as gifts that are as beautiful as a gesture as a Living Arrangement.

Barriers to Entry

  • Learning to grow the crops or finding plant growers and wholesalers may be a barrier upon entering into this business. I plan to start with easier to grow foliage and flower arrangements, and research others as I go. There may be some resistance to adding displays in flowers shops and negotiating commissions off of sales. It may be easier to have a side of the road display until you build up a following or clientele. Once the brand is established, there may be opportunities to partner with local chains and open up a storefront location. Goals will include setting up locations across Central Florida for easier consumer access and delivery.

Long-Term Opportunities

  • Growing your own food or sustainable living has become popular in a lot of families. Parents are showing their children the joys of growing their own food and the work required watering plants daily. I hope to offer herb gardens that would also feature beautiful blooms to be featured as a gift giving option for all genders. I also would like to feature patio garden arrangements to include lemons and limes or other types of fruits and vegetable that can be grown in small/ deliverable containers.

Target Market

Market Description

  • My target market would be the gift giving market. Any one who would purchase flowers as a gift, or would like to make an impactful gesture of appreciation to a clients or business associate. My target would also include children and spouses to gift Living Arrangements as Mother’s Day gifts, Father’s Day gifts, Birthday Gifts, Housewarming gifts, and other acts of celebration.

Market Size and Trends

  • The floral industry is a $35 billion dollar industry and local shops can pull in over million plus dollars a year. In 1990, Hallmark joined the Flower industry when it was at $12 billion in retail dollars.

Target Customers

  • Middle class families, husbands, wives, single men, single woman, friends, sons and daughter, public relations personal, business owners, secretaries and anyone who likes to give flowers.
  • A Study in HortScience discovered that the younger generation prefers to give gifts that last longer. Living Arrangements will last as long as they are taken care of.

Market Readiness

  • There are lots of dollars and a need for gift options for holidays like mother’s days and birthdays outside of the usual flower delivery. Even men like to receive herb gardens and air succulents arrangements as gifts, adding a new demographic to this market.
  • Strategic Opportunities – What advantages does your business have with your target market?
  • My advantage to my market is that I am offering an alternative to what’s commonplace in the flower /gift giving industry. Creating a gift option of a plant that you can water and keep alive to enjoy year round.

The Competition

Competitors

  • 1800flowers.com
  • FTD.com
  • Inbloomflorist.com

Advantages

  • Each of my competitors offers an online ordering system to send living “dish gardens” in place of flowers. The Living Arrangements brand will focus more on a local market and try to target customers looking to buy in person and not online. Once the brand is established, Living Arrangements can join the online market.

Barriers to Entry

  • There may be barriers to entry getting placements in local florists or retail locations where consumers may go to buy flower arrangements and plants for their gift giving occasions.
  • It also may be challenging to find wholesalers for plants needed for the arrangements.

Strategic Opportunities

  • Living Arrangements will be more accessible to the gift giver, where consumers will know that they have an option to drive to a local shop and pick up the arrangement rather than wait on the delivery of the item to arrive on time. This will give me an advantage to my competition, as on time deliveries are a risk during peak seasons. I also want to give my consumer the opportunity to see the product before they buy it and be able to bring it in person for the special occasion. I will offer them at a lower price point, and try to have locations on each of the corners of Central Florida. Downtown Orlando, Kissimmee, Sand Lake Area, Apopka, and Waterford Lakes/East Orlando Area.
  • There may also be an opportunity to partner with retail locations that consumers may go to buy plants, like a Home Depot or Lowes. There are also opportunities to feature Living Arrangements for in locations where people go to buy their last minute gifts, like Publix or Walgreens.

References:

Fitzgerald, K. (1990). Hallmark tries flower power to grow sales. Advertising Age, 61(33), 3-51.

Machan, D. (2011, January 26). Can the Flower Industry Learn From Amazon? Retrieved August 15, 2015, from http://www.marketwatch.com/story/-1294160009637

Rihn, A. L., & Chengyan, Y. (2011). Generations X and Y Attitudes toward Fresh Flowers as Gifts: Implications for the Floral Industry. Hortscience, 46(5), 736-743.

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