Baylor Balloons and Flowers

Background Information

History

Originally established on Speight Avenue/11th St.

Acquired by Kathy Dove in 2000

Moved to Bagby Ave./4th Street

Hours: M-F 9 a.m. to p.m. Sat 9 a.m. to 12 p.m. Closed Sunday

Scope & Purpose

Meet unsatisfied niche of student populationMission statement: To provide quality,

beautiful floral arrangements to members of the Baylor and Waco community.

Also offers other merchandise that complement floral purchases.

100% satisfaction guarantee on all floral and gift items.

Major Products and Services Offered

Cut flowersFloral arrangementsPotted plantsHelium latex/Mylar balloons Gourmet fruit basketsPlush animalsCandlesSorority paraphernaliaChocolate trufflesDelivery service

Retail Establishment Layout

Main cut flower displaysRefrigerated coolerMerchandise displaysPayment counterDesign areaConsultation area

Managerial Structure

Owner

Designers

Student Employees

Delivery

Customer Environment

Target Markets

Baylor Students Most homogeneous group

Baylor FacultyParents of Baylor Students

About the Purchase

Two ways to purchase In Store Online

Primary use Gifts Decoration

Trends

Internet Social Media

Increase interaction with customers Easy and free

Online ordering Increase retail range Customers see products

Contact With Customers

Social Media Interaction via Facebook Daily & Weekly promotions

CRM Gather information from online sales In store

Competitive Analysis

Major Competitors

Other Florists in WacoGrocery StoresOnline Flower Shops

Waco Florists

Competition based on history and internet presence Baylor Flowers, 35 years Reeds, 80 years Croziers, 50 years Rosetree, 20 years Bloomingals, 8 years

Specialized arrangements, typically more expensive

Grocery Stores

Simpler, less expensive arrangements that customers must put together themselves HEB Wal-Mart Target

Not always the high quality that can be provided by a florist

No internet presence

Online Florists Similar arrangement styles and pricing as

brick-and-mortar stores 1 (800) Flowers ProFlowers FTD TeleFlora

Allows customers to order anytime and provides an easy, efficient system

Cuts down on human error in information input

Market Position

·ProFlowers InexpensiveExpensive

Specialized

Generic

·Reeds

·Croziers

·Rosetree

·Bloomingals

·Wal-Mart

·Target

·HEB·FTD

·Baylor Flowers ·1 (800) Flowers

Market Position

Similarly placed with other Waco florists and online ventures

More expensive than a supermarket

Overall position is positively placed among competitors

External Environment

Economic Stability

Floral industry as a whole falling by approximately 3.6% yearly for the past 5 years Threats by supermarkets and online ventures Diminishing disposable income due to economic

recession and cutting spending on non-necessities

Florists cutting prices by up to 70%, creating a ripple effect on loss of revenue

Need to keep up with change in technology and stay price sensitive to stay in operation

Political Issues

International tariffs with Colombia, who holds 65% of imported flower market, and Ecuador US/Colombia FTA signed April 2011 will phase out

tariffs over next 10 years

National Floriculture and Nursery Research Initiative $6.25 million per year Improve product quality and enhance competitiveness Improve crop production tools Provide protection against pests and diseases Promote environmental stewardship

Legal Issues

National Antitrust lawsAmericans With Disabilities ActTaxes & transport fees

Regulatory Issues

Quarantine 37 Targets horticulture and livestock that could bring

invasive diseases and pests at port Florists must deal with reputable growers to insure

they get the supplies they need

SWOT Analysis

STRENGTHS- Name -Location-Quality-History

-Sponsor of Baylor Athletics

WEAKNESSES-Advertising

-Lack of Baylor Directory-Small Market

-Grandfather Clause

OPPORTUNITIES-Social Media

-Online Presence-Unified Appearance-US/Colombia FTA

THREATS-Loyalty to Other Florists

-Online Retailers-Grocery Stores

-Reliance on Disposable Income

SWOT Analysis

Strengths

Name with “Baylor” in it Provides affiliation with

schoolLocation

In “Baylor Bubble” furthering school connection

QualityHistory

In business for 35 years with a solid reputation

Sponsor of Baylor Athletics

Weaknesses

Advertising No strong, effective advertising campaign to draw in

new customersLack of Baylor Directory

Hard to target parents with direct mailSmall Market

Strong competition from local floristsGrandfather Clause

Forced to keep “Balloons” in name which could convey the idea of lower quality service

Opportunities

Social Media Reach largest target market, students, more

successfully More options than traditional advertising

Online PresenceUnified Appearance

Current logos not cohesiveUS/Colombia FTA

Pass tariffs on to customers

Threats

Loyalty to Other Florists Many historical florists in Waco that clients have

stronger loyalties to Florals are a relationship business

Online Retailers Pricing and convenience

Grocery StoresReliance on Disposable Income

Cannot control economy but can price to continue to attract customers

Major Marketing Issues

Product Mix

Wide range of products, not just flowers

Website increases variety of flowers carried

Offers inexpensive and highly priced flowers

Advertising

Difficulty marketing to students and facultyHeavy advertising during Homecoming and

Parents WeekendLack of uniformity in advertisements

Research Needed

Facebook statisticsTwitter statisticsWeb site statisticsMarket research

Recommended Changes

Word of mouth campaign by Utilizing Facebook and Twitter more efficiently

Reach students and faculty more aggressivelyCreate homogeneous advertisementsHandcuffed by lack of funding

Priority of Issues Confronting the Company

Company Name

One of few with “Baylor” in title

Remove “Balloons”

Make name simply: “Baylor Flowers”

Technology

Company websiteEstablished Facebook

accountIn process of setting

up Twitter account

Action Areas and Solutions

Product Issues

Products vary all the time

Need to have staple products

Pricing Issues

No set pricesBased on shipping costs and tariffsBe more “student-friendly”

Advertising and Promotion Issues

No access to Baylor students’ home addresses

For online purchases, suggest e-mail list

Facebook, TwitterThe Lariat, Waco

Tribune-Herald

Specific Promotion and Marketing Strategies

Facebook Increase number of fans Utilize page to dost daily deals and specials Post pictures

Twitter Updated more frequently than Facebook Daily deals Trivia questions Retweets

Lariat Advertisement Coupon Thursday

Direct e-mail Newsletter Promotions Reminders

 

Ad Concepts – New Logo & Print Ad

Ad Concepts - Newsletter

Promotional Strategy for Each Segment

Social Media Students

Print Media Students & Faculty

Customer Database Parents

New Logo All Segments

Goals and Expectations

Higher in-store traffic

Larger promotions

Increase orders by 10% for next year

Questions?