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Executive Summary
Product
Badlands Bloom is a flower retail business based in Killdeer ND.
We will be located in Old Crow Corner coffee shop.
We will primarily sell fresh floral arrangements, mixed bouquets,
unique containers, green and flowering house plants. We will provide services
and supplies relating to flowers and their care, handling, designs, arrangements,
merchandising, display and delivery.
Customers
The target audience for Badlands Bloom is anyone who is a flower
enthusiast or interested in purchasing flowers for special occasions.
Future of the Company
Badlands Bloom wants to continue to provide this service to
Killdeer and surrounding communities while growing and offering job
opportunities for local employment.
Company Description
Mission Statement
Our mission is to provide a service that will bring flowers and
happiness to our community and surrounding communities. We will deliver flowers
that through their beauty, scent and color, will make memories that last a
lifetime.
Principal Members
Jenny Dobitz — owner, floral designer
Cill Skabo — owner, business manager/sales
Jenny has the training and knowledge of cut flower and foliage
care and handling. She has a creative flair, and the ability to spot or keep up
with trends.
We will develop business skills in advertising and marketing,
buying and inventory control, effective pricing strategies, and training a
sales force.
Legal Structure
Badlands Bloom LLC was organized in January 2020 by founders Jenny
Dobitz and Cill Skabo with plans to open in Killdeer, ND.
Market Research
Industry
The United States is the biggest consumer of cut flowers globally,
spending $1.83 Billion annually. The biggest floral event of the year is
Valentine’s Day followed by Christmas, Hanukah and Mother’s Day. Combined, they
account for over seventy percent of annual revenues recorded by most floristry
business. Seventy seven percent of flower purchases involve a special occasion
or reason.
5 Forces Analysis
The
five forces analyzed are:
1.
Threat
of new competitors: New competitors may bring in new ways of doing things and
put pressure on Badlands Bloom through lower pricing, and providing new value
offers to the customers.
2.
Bargaining
power of suppliers: Suppliers can decrease the margins Badlands Bloom can earn
in the market.
3.
Bargain
power of customers: Buyers want to buy the best offerings available by paying
the lowest price possible. The smaller the customer base, the higher the
bargaining power of the customer, and higher the ability to get discounts and
offers.
4.
Threats
of substitute products or services: The threat of a substitute product or
service is high if it offers a value that is uniquely different from Badlands
Bloom offerings.
5.
Rivalry
among existing competitors: If the rivalry among the competitors is intense
then it will drive down prices and decrease the profitability of Badlands
Bloom.
Analyzing
the five competitive forces, Badlands Bloom can gain a complete picture of what
impacts our profitability
1.
Threat
of new competitors: Badlands Bloom needs to continue evolve with trends and new
designs. New products not only brings new customer but also give old customer a
reason to come back.
2.
Bargaining
power of suppliers: Develop partnership with suppliers whose business also
profits from the relationship.
3.
Bargain
power of customers: Build a larger base of customers. This will help to reduce
the bargaining power of the buyer plus it will provide an opportunity to
streamline its sales and production process.
4.
Threats
of substitute products or services: Badlands Bloom needs to be service
orientated rather than just product driven. We need to understand the core need
of the customer rather than what the customer is buying.
5.
Rivalry
among existing competitors: Collaborate with competitors to increase the market
size rather than just competing for small market.
Evaluating
the five forces as a rounded strategy took strategic decisions away from just
looking at the present competition. This allowed Badlands Bloom to focus on a
strategic position to increase profitability.
Detailed Description of
Customers
Badlands Bloom will reach out to anyone who’s interested in
flowers and other services offered. The flower shop has identified the
following customers to use our business.
1. Individuals:
One of the biggest markets is individuals
who love flowers or will purchase flowers for a special occasion.
2. Corporation:
This group consists of customers who are hosting events that require some sort
of floral arrangement.
3. Weddings:
One of the main requirements to have a beautiful wedding reception are flowers.
4. Funerals:
Flowers are used at funerals as a visual expression of your sympathy, grief,
love and respect to the deceased.
Company Advantages
What is unique about Badlands Bloom is that there are no other
florist shops in Killdeer or Dunn County. There is a need for this service
because it fills a niche in Killdeer and the surrounding communities. Flowers
are given for special occasions and will bring joy to all who receive them.
SWOT Analysis
Strengths:
locally owned, community support, location of storefront on main street
Weaknesses:
difficult to buy flowers in bulk, cost of shipping goods
Opportunities:
florist of choice for local funeral home, busy main street, special occasions
such as wedding, prom, holidays
Threats:
large retailer represent a threat, including warehouse clubs and supermarkets,
online floral shops
Regulations
Badlands Bloom has received the sales & use tax permit, resale
certificate, Employer Identification Number, trade name registration and
Occupancy permit for the state of ND.
Service Line
Product/Service
Services Include:
·
Offer bouquets of flower arrangements to make each occasion
memorable.
·
Offer a wide range of fresh flowers.
·
Offer floral settings and table settings, wedding receptions,
funeral sprays, corporate events.
·
Offer seasonal plants.
·
Provide floral consultation services to help customer choose
their perfect flowers.
·
Provide full retail florist with showroom.
Pricing
Structure
The pricing structure is below. The model shows the quantity,
cost per stem, and wholesale cost which totals cost of goods. We then will add
a 15 percent overhead charge for things like shipping and supplies. The design
and expertise will add a 1.75 percent markup.
Product Lifecycle
Plants start their life as a seed, which germinates and grows
into a plant. The mature plant produces flowers. The cut flowers are directly
shipped to consumers or sold at wholesale flower markets that resell them to
the florists who condition and arrange them to sell to the consumers.
Intellectual Property
Rights
Badlands Bloom will work with an intellectual property lawyer to
trademark the name and logo. We will
also register badlandsbloom.com as our domain name and review proper handles
for social media accounts for future use.
Research and Development
The research and development is based on new services provided
to the Killdeer and surrounding community
·
Deliver flower boxes. We will create boxes with varied stems of
greenery and flowers and a link to access a video tutorial for how to create a
beautiful arrangement.
·
Teach a flower workshop class.
Marketing & Sales
Growth Strategy
For Badlands Bloom to grow, the following strategies have been
identified to help market the business.
·
Network at local business functions, school activities, and
healthcare facilities.
·
Advertise the flower shop on local media channels such as radio,
newspaper and television.
·
Establish strong social media channels such as Facebook,
Twitter, YouTube, and Instagram and make sure the posts contain engaging content
to market the flower shop.
Sales projection and
forecast
To
achieve its targets, Badlands Bloom has formulated a sales forecast to
demonstrate how the floral shop will perform when it starts operations. Each
year the forecast is for sales to increase by 5 percent and expenses to
increase by 2 percent.
Communicate with the
Customer
Badlands Bloom will communicate with its customers by:
·
Networking with local businesses
·
Using social media such as Twitter, YouTube, Facebook, and
Instagram
·
Providing contact information on the company website
How to Sell
The primary advertising of Badlands Bloom will be through social
media channels such as Facebook, Twitter, YouTube, Instagram and website. On
special holidays, Valentine’s Day and Mother’s day, we will direct market to
the Killdeer and surrounding communities via a postcard.
Another ideas to boost floral sales will be to create
eye-catching arrangements. Floral purchases are often spontaneous, so it is
important to create a display that catches the eye of a potential customer to
encourage an impulse buy.