CASE STUDY (FLOWER SHOP BUSINESS)

NAME OF BUSINESS Boys Over Flowers - Flower Shop

NATURE OF BUSINESS Flower – Retailing

WHY DO YOU CHOOSE THIS BUSINESS? Our group choose this business because it is all occasion type of business. With a good location and good marketing strategies, we can make this business grow.

LOCATION OF BUSINESS 2-A Reynoso Building Ascension Avenue Lagro Quezon City

COMPETITION Boys Over Flowers does not have any direct competitors in their location, as they are the only retail florist in the Lagro- North Caloocan Area. The nearest competitor is the flower at our location is the Tecson Flowershop that is located inside the SM Fairview. 20 minute drive from our target business location.

MARKETING STRATEGY MISSION To provide good quality of flowers and unique flower arrangement for very affordable prices for our beloved and valued customers.

VISION To become one of the most prestigious flower shop and be able to expand in other places.

SWOT ANALYSIS STRENTHS The customers are able to select and

WEAKNESSES Boys Over Flowers is still a new

customize the products by choosing to

business.

add option like size, colour or type of flowers and the way that they want it presented in a basket, bouquet or vase. Customers can view products online via a directory and call to make an order

Time to gain experience and build

Located on a busy street

Customers perceiving that flowers are

reputation.

only limited to special occasions High exposure with street frontage

No official business website has been established, customers unable to order online.

Competitive Pricing The only florist in the area

OPPORTUNITIES

THREATS

To establish a strong customer base in

Competitors in the market such as

the area.

Tecson Flowershop, and famous brands such as Designer Bloom.

The customisation of customer orders

Customers preferring the high end

leading to more sales

brands

To expand advertising to other medias

Customers not spend their money on gifts due to economy

Sponsoring local community groups To close the gap in the market

MARKET SEGMENTATION The market can be categorized into four main market segments for Boys Over Flowers – Flower Shop. These are: 

Funeral



Weddings



Birthdays



Special Occasions (New Years, Valentines, Fiestas, Easter Sunday, Mother’s Day, All Soul’s Day, Christmas Day)



Customised



Researched



Quality of Product



Cost

DEMAND FOR FLOWERS There is always a constant demand for fresh flowers as they play a role in people's lives. They are used celebration and sadness to represent a person's affection or just a general "thank you". The demands for fresh flowers are now perceived as a fashion trend and are being used as centrepieces in homes. There is always a high demand during traditional celebrations such as Valentine's Day, Mother's Day, All Souls Day, Christmas and New Year.

CUSTOMER PROFILING 

Male



Working



21 – 60 years of age



Married, engaged or in long-term relationship

COMPETETIVE ADVANTAGES



Wider product range than competitors.



Competitive pricing – matching or providing lower prices than competitors



Quick delivery of the products to the customer



Better quality customer service



In a better location, easy to access



Giving customers what they want, with product customisation

MARKETING OBJECTIVES 

Increase its sales over 12 months by 20%



To build a stronger brand relationship with our customers



To have well established brand image



To achieve the objectives of Boys Over Flowers will need to adjust its marketing mix to ensure that it can increase its market share and it overall sales.



Building relationships with regular customers such as business customers is important to ensure a continuous flow of sales and profits.

PRODUCTS 

Fresh flower arrangements



Bouquets



Gift Baskets and Hampers



Wreaths



Vases



Plants



Available in 3 different sizes (small, medium, large)



Customers able to design and customise to their specifications



Prices displayed on display products



Package Deals



Prices can vary depends on what the customer requests when customising an order



Small Arrangements prices between PHP 250.00 – PHP 350.00



Medium Arrangements prices between PHP 400.00 – PHP 500.00



Large Arrangements prices between PHP 500.00 – PHP 1,000.00



One retail store operating in a busy street



High exposure to potential customers



Easy to access

PRICES

PLACE

PROMOTION 

Shop front floral displays



Outdoor signage



Flyers and business card distributed in the area



Sponsoring events



Local publicity



In store product displays



Social networks

MARKET MIX The market mix of Boys Over Flowers will focus on targeting the Wedding and Special Occasions segment, and also focusing on establishing ties with organisations to supply them with an on-going service.

DISTRIBUTION CHANNELS Currently Boys Over Flowers has main distribution channel which is its retail shop. It wants to establish other ways to reach its customers. We considered establishing an online service where customers are able to view their products, select and order what they want and get it delivered.

The cost of setting up a website can cost around 700 pesos and will need ongoing support to maintain and update the service. This would bring another advantage to the business, as the competitors are trading online it puts Boys Over Flowers on a level playing field to market its product outside of its current demographic.

CUSTOMER SERVICE LEVEL

Boys Over Flowers aim to give customers a high level of service, and taking customer service to the next level by getting to know certain details of a customer to make them feel more valued, for example remembering a customer's birthday or anniversary, gives the impression that you have taken time to listen to the customer. Also offering regular custom store discounts or free delivery on their purchases, this is to ensure that they are rewarded for the loyalty to the brand.

CUSTOMER SERVICE STANDARDS As outlined above Boys Over Flowers main concern is to deliver the highest quality of customer service, staff are encouraged to make the customer feel welcomed and valued by meeting and greeting them as soon as they enter the shop. They are to liaise with the customer and direct them to the product that they desire. Staffs are advised to inform customers on special promotions and discounts that might be on offer.

PROMOTIONAL ACTIVITIES The promotional activities that Boys Over Flowers has undertaken are having indoor floral displays for customers in store to give them visual choices. There is also the use of outdoor signage and window displays to be visual enticing to people walking past the shop front. They have also distributed flyers and catalogues which are put in people's letter boxes.

HUMAN RESOURCE REQUIREMENTS

NAME Manager

RESPONSIBLE  Documenting the customer’s needs and when they want it.

 Organising the order and making the floral arrangement  Ensuring that orders are processed and ready to be delivered Full Time Florist

 Arrange Flowers  Consulting with the customer on floral arrangements

Assistant/ Delivery Guy

 Taking the order  Getting customer orders delivered

Part Time Florist

 Arrange Flowers

They are to also display business cards, flyers and brochures at front of desk and are to encourage customers to take one. The staffs that are hired must be competent at flower arrangements and must have a strong customer background to ensure that customers are dealt with appropriately and given a good experience.

PRODUCTION PROCESS: FIXED COSTS RAW MATERIALS: RAW MATERIALS NEEDED Flowers  Anthurium  Calla Lily  Chrysanthemum

QTY 1 1 2 each

COST / DOZEN PHP 75.00 PHP 100.00 Short stem – PHP 220.00 Long stem -PHP

TOTAL COST PHP 75.00 PHP 75.00 PHP 980.00

   

Gladioli Heliconia Orchid Roses

1 1 1 3 each

 

Stargazer Malysian Mums

1 4 each

    

Daisies Sun flowers Carnation Fiji Balls

2 2 4 6 6

270.00 PHP 75.00 PHP 100.00 PHP 200.00 Short Stem - PHP 75.00 / bundle (2-3 dozen) Long stem – PHP 100.00/ bundle (2-3 dozen) PHP 200.00 Ordinary - PHP 80.00 Green House – PHP 120.00 PHP 270.00 PHP 270.00 PHP 100.00 PHP 270.00 PHP 80.00

PHP 75.00 PHP 75.00 PHP 75.00 PHP 525.00

PHP 200.00 PHP 800.00

PHP 540.00 PHP 540.00 PHP 400.00 PHP 1, 620.00 PHP 480.00 TOTAL: PHP 6,460.00

SUPPLY AND DEMAND: SUB MATERIALS: RAW MATERIALS NEEDED Aster Leaves:  Fish Tail  Boston Fern  Draceana Leaves  Hosta Leaves  Lace Veil Fern Papers (for bouquets) Vase (small) Vase (medium) Florist tape Clear tape Floral foam Chicken wire Hand mister Rubber bands

COST

TOTAL COST

PHP 75.00 / kilo

PHP 375.00

PHP 30.00 / bundle PHP 15.00 / bundle PHP 50.00 / bundle PHP 50.00 / bundle PHP 15.00 / bundle PHP 15.00/ piece PHP 135.00/ piece PHP 175.00/ piece PHP 55.00/ piece PHP 35.00/ piece PHP 980.00/ box PHP 35.00/ bundle PHP 75.00 PHP 30.00/ pack

PHP 30.00 PHP 45.00 PHP 50.00 PHP 50.00 PHP 45.00 PHP 900.00 PHP 810.00 PHP 1,050.00 PHP 660.00 PHP 210.00 PHP 980.00 PHP 105.00 PHP 75.00 PHP 30.00

Shears Plastic pots (small) Plastic pots (medium) Plastic pots (large) Clay pots (small) Clay pots (medium) Clay pots (large) Basket (small) Basket (medium) Basket (large) Kawayan Stand

PHP 75.00/ piece PHP 30.00/ piece PHP 35.00/ piece PHP 50.00/ piece PHP 25.00/ piece PHP 30.00/ piece PHP 45.00/ piece PHP 15.00/ piece PHP 25.00/ piece PHP 35.00/ piece PHP 75.00/ stand

PHP 225.00 PHP 180.00 PHP 210.00 PHP 300.00 PHP 300.00 PHP 360.00 PHP 540.00 PHP 180.00 PHP 300.00 PHP 420.00 PHP 900.00 TOTAL COST: PHP 9,690.00

APPLIANCES USED ITEM

WHERE TO BUY

QUANTITY

Fujidenzo SUD220A 22 cu.ft/ Two Door Showcase Upright Carrier FP53CVURO13 1.5HP, Premium Inverted Giraffe G5-600 DIY Video Surveillance Package

Abenson – Puregold North Commonwealth

1

Abenson – Puregold North Commonwealth

1

41, 398.00

41, 398.00

ACE Hardware – SM Fairview

1

1, 250.00

1, 250.00

Firefly FEL 201L Twin Head Emergency Light SK-HZ481872P5 Rack Z Beam Hidden Post Rivet 5L GE LED CFL bulb

ACE Hardware – SM Fairview

1

499.00

499.00

ACE Hardware – SM Fairview

1

1,050.00

2,100.00

ACE Hardware – SM Fairview ACE Hardware – SM Fairview ACE Hardware – SM

2

75.00

150.00

2

125.00

250.00

4

89.00

356.00

GE Circline4-Pin 12” Monoblock chair

PRICE PER UNIT 55, 950.00

TOTAL

55, 950.00

Fairview TOTAL: 101,953. 00 VARIABLE COSTS UTILITIES UTILITIES

COST PER MONTH PHP 7, 500.00 PHP 4, 228.98 PHP 900.00 PHP 799.00 PHP 13, 427.98 / month

Rent Electricity Water Pone bill TOTAL:

COST PER YEAR PHP 90, 000.00 50, 747.76 PHP 10, 800.00 PHP 9, 588.00 PHP 161,135.76 / year

LABOR PERSONEL Manager/ Full Time Florist Assistant / Delivery Guy Part Time Florist

DAILY 500.00

MONTHLY 15, 000.00

YEARLY 180, 000.00

250.00

7, 500.00

90, 000.00

400.00 / day

Will only be called when its Valentine’s Day, All Soul’s Day, and Christmas TOTAL PER MONTH: 22,500.00

1, 600.00

TOTAL PER YEAR: 271, 600.00

TOTAL FIXED COSTS (MONTHLY) DEPRECIATION 466.25

REFRIGERATOR

(55, 950/ 10)/ 12

AIRCON

(41, 398/ 10)/ 12

SURVEILLANCE

(1, 250/ 10)/ 12

344.98 10.42 EMERGENCY LIGHT

(499/ 2) / 12

20.79

POST RIVET

(2, 100/ 10)/ 12

CFL BULBS

(150/ 2)/ 12

6.25

PINLIGHTS

(250/ 2)/ 12

10.42

17.50

MONOBLOCKS

(356/ 10) / 12

2.97 TOTAL 879.575

TOTAL VARIABLE COSTS (MONTHLY) RAW MATERIALS

6, 460 X 4

SUB-MATERIALS

9, 690

9, 690.00

DELIVERY

1000X 4

4, 000.00

UTILITIES

RENT

25, 840.00

7, 500.00

ELECTRICITY 4, 228.98 WATER BILL PHONE BILL LABOR

900.00 799.00

13, 427.98

MANAGER/ FULL-TIME FLORIST 15, 000 ASSISTANT/ DELIVERY GUY

TOTAL

7, 500

22, 500.00 75, 457.98

TOTAL COSTS (MONTHLY) FIXED COSTS

879.575

VARIABLE COSTS TOTAL

75, 457.98 76, 337.555