Strategic Planning for Nonprofit Organizations - Case Study Example

Red White and Bloom Flower shop report Affiliation TABLE OF CONTENT EXECUTIVE SUMMARY………………………………………………………………..3 INTRODUCTION…………………………………………………………………………4 BUSINESS AIMS AND OBJECTIVES…………………………………………………..4 BUSINESS ENVIRONMENT………………………………….…………………………5 PRODUCT OR SERVICE DESCRIPRION & USP……………………………………...6 MARKETING MIX………………………………….……………………………………7 CONSUMER SEGMENTATION…………………….…………………………………..7 FINANCIAL AREA……………………………………………………………………...8 CONCLUSION……………………………………………………………………………9 BIBLIOGRAPHY………………………………………………………………………..10 EXECUTIVE SUMMARY This paper is a report of a small floral shop, Red White and Bloom that is in high streets in London. The floral shop will deliver flowers to business people and other commercial accounts that desire to have the flowers. The report seeks to point out the location of the shop, the aims and objectives of the business. It expounds on the performances of the floral shop and explains how it manages to function in the competitive environment. It explains the business environment concerning flower market in London and how it advantageous or disadvantageous to the shop. The report expounds on the description of the product and services offered by the shop and its unique selling point. The marketing mix along with the customer segmentation also gets described to explain who the shop targets and how it builds its brand awareness. Finally, the report concludes with the financial area of the business, explaining the shop’s financial plan and its credit policies. INTRODUCTION For ages certain things have not changed, some people still have issues in buying gifts, especially flowers for their girlfriends, fiancées, and wives (Reid & Bojanic, 2009). But, while other things do not change, fortunately, some change like technology that makes the gift-giving process much easier. The Red White and Bloom is certain that the opportunity to use technology in making it easier for people to buy custom flower arrangements along with delivery on the days they determine in advance. Red White and Bloom is a flower shop that I started, and I am the majority owner. The company targets the executive business people in the high street in London for each upscale, Frequent Lower Gift Program and long term. The Red White and Bloom differs from other traditional florists through cultivating personal relationships by using delivery services, technology and giving the Gift program that making the buying of flowers easy. Thus, this report explains further the aims of the business, its environment, product description and the market mix along with its consumer segmentation and financial area. BUSINESS AIMS AND OBJECTIVES Red White and Bloom aims at using technology to enhance the delivery program and identify along with serving the ideal target audience within the high street in London. The company uses sophisticated marketing techniques in securing a core executive business people clientele and corporate accounts along with differentiating from other traditional and online florists. The company differentiates itself through the delivery program, Frequent Flower Gift Programs, and custom floral designs. The company dedicates in functioning with constant learning enthusiasm, being ready to implement new ideas and marinating the willingness in adapting the evolving marketing conditions. The company aims at expanding its market even to international segments in the future. The company depends on the increase of its profits to expand its market and open more retail shops in the London streets. The company also aims at increasing its customer segmentation through more advertisements and promotions as Michael & Jude (2005) suggests. Therefore, the main aims of the company are to have use technology and other programs to enhance its delivery program and increase its customer and market segment. The main objectives of the company are to generate healthy revenue to increase its performances in the future. It also ensures to maintain a high gross margin and direct cost of sales 45% lower. The company also builds pricing programs that base on profit assumption of 10% to motivate the performances. Lastly, the company has the objective of increasing its sales approximately 70% after a year. Thus, its objective is to increase its sales and profits. THE BUSINESS ENVIRONMENT The business environment of the flowers is quite tricky. Flowers are in high demand during special occasions such as Valentine ’s Day, weddings, Mother’s or Father’s day and birthdays. Therefore, the demand sometimes is not satisfactory, which led to the Frequent Flower Gift Programs that will make people buy the flowers not just for the occasions but frequently. The traditional florist’s micro businesses are falling out due to the demand issue. The independent florists have suffered at supermarkets domination hands. The supermarkets sales account approximately 70pc of every flower sales and Red White, and Bloom sell over 100, 000 bouquets over Valentine. There are over 15, 000 florists businesses in London that includes 7, 000 online firms and 8, 000 shops, and sole traders. The industry is made up of small business. The flower market is worth $1.5 billion as a whole though the independent florist finds it difficult to survive in the environment of the competitive retails. But, the different festivals and sports that happen in London have increased the demand for flowers and boost the flower market. The people are beginning to embrace the flowers as an essential product for decorations not just on occasions but also in their homes and offices. Therefore, the demand is increasing as the Frequent Flower Gift Programs tends to lure more customers to order for the flowers to get delivered in their places. But, the other difficulties in the business environment of the flower shop are the overheads that it incurs. The London’s business rates, electricity, and rent are put into consideration even before the thinking about the flowers. Most of the people see flowers as a luxury that they cannot afford at the moment. People concentrate on spending their money on the necessities (Max, 2012). PRODUCT OR SERVICE DESCRIPTION AND USP The products consist of original floral design using a wide range of flower mix. Every arrangement of Red White and Bloom floral is an original artwork and natural. The company is committed ensuring that every arrangement is custom-designed and unique basing on the customer’s requirement. The company’s arrangements feature a wide seasonal flowers range. The store features drawings and paintings by local artists to create gallery environment, and the artwork is also for sale. It also offers distinctive vases for a special occasion or discretionary customer and those who prefer their vase; the company offers hand-tied bouquets. The services that Red White and Bloom offers the Frequent Flower Gift Program, Forget-Me-Not Club, which gets designed for the customers. The program makes the customers register for a minimum of six days per year (holidays, birthdays, anniversaries or any day but not Valentine). In these days, the company automatically plans to deliver an arrangement of flowers to their workplace. There will be in store presentations and gifts cards along with unique buying experience. The unique selling point is the delivery program, birthday blooms and referral programs. THE MARKETING MIXING The company serves three market; primary, secondary and tertiary. The primary market consists of the business people working along the London street; the secondary market is those businesses in the same area while tertiary are the residents of the high street of London. The company’s marketing efforts focuses on targeting everyone and as a promotional giveaway programs and deliveries by-product, it secures commercial accounts. The overall approach of marketing involves developing brand awareness by targeted public relations, advertising and a website that generates leads by co-marketing effort with traditional direct mail and events. CONSUMER SEGMENTATION The Red White and Bloom target two main consumers within one geographic market. First, they target the affluent business people who work on the high street in London. They are the ideal candidates for fresh flower, an automatic delivery program that will assist them in keeping the romance alive with their spouses or other people. The concept comprises creating flower arrangements that foster romance and the company targets mostly the men with high discretionary income levels who accustom to spending money for their loved ones. Moreover, with the floral delivery program, the consumers do not worry about missing a special day for the loved ones (holiday, anniversary and birthday). Also, there are fresh flowers for promotion on any day of the year to say “I Love You." Moreover, instead of delivering the flowers to the woman, Red White and Bloom delivers to the man making them reap the delivering benefit from work to their loved ones in person. The company has special packaging containers spillproof and upright branded with the company logo to serve as a marketing vehicle when delivering. The other consumers targeted are those from midtown and downtown of the high street of London. They are prime areas that attract many commercial accounts that need weekly floral arrangements. Downtown London alone is a four-square-mile and has over 140, 000 employees daily. There are more than 6, 000 banks, large corporations, hotels, upscale restaurants, law firms and foreign/consulate trade offices located in the defined segment. The businesses are ideal candidates for the weekly floral arrangements for receptions and lobbies areas. The key selling point is twofold; customer’s peace of mind, that is, should not worry about missing their loved ones on their special day and commercial account’s customized services. The customized services include long lasting arrangements that get designed to accent a certain business décor and delivered routinely basing on the established frequency. FINANCIAL AREA Red White and Bloom contacted rent and labor make up more than 40 % of its operating expenses. The key aim of the firm is to grow through cash flow, thus marketing remains at or below 7% of the sales. The company expansion is also an option if the sales projections get exceed or met. The main motivation is not wealth, but profits act as the success indicator in the business. As Erica (2012) suggests, the company aims at making enough profits to give a continuous growth through investment. There is profit in every normal business expenses comprising my fair wages. The main source of the flower shop is by my savings, commercial banks, and trade credits. The earnings get reinvested and as the owner, I collect my wages as the worker to ensure that every debt incurred get paid in a very short time as possible. The purchases get paid in check and cash only. But, in future, the company will accept MasterCard, American Express, Visa, and Discover. In future, the application of charge accounts will be available to contract agreements for flower services at organized events. CONCLUSION Following the report, Red White and Gloom is a floral shop located in the high street in London. Its main aim is to use technology and other programs to enhance its delivery program and increase its customer and market segment. Additionally, its main objectives of the company are to generate healthy revenue to increase its performances in the future. The business environment has the advantage of various occasions that increase demand, but the competition, and people’s priorities also affect the demand for the flowers. The company produce flowers with unique arrangements and offer programs that make their customers buy flowers frequently. The main unique selling point is its delivery program. Its market mix consists three market; primary, secondary and tertiary. The main consumer segments are the business people in the offices and the commercial accounts. The business is a sole proprietorship and it a source of finance is from the owner and banks. BIBLIOGRAPHY Erica O., (2012). Strategic Planning Kit for Dummies, 2nd Edition. John Wiley and Sons Inc. Max M., (2012), The Strategy Book, FT Prentice Hall. Michael A & Jude K., (2005). Strategic Planning for Nonprofit Organizations. Second Edition. John Wiley and Sons. Reid, D & Bojanic C., (2009). Hospitality Marketing Management (5 ed.). John Wiley and Sons. p. 139. Read More