Case Study: Teddy's Flower Shop
For a single small store with direct sales to buyers/end users, going through the exercise of deciding on appropriate distribution and sales force choices may yield new sales and volume gains. For example, Teddy Bear's Flower Shop research finds that most of its customers are located within a radius of a half to one mile of the flower shop. Further, many customers of Teddy's and other shops are dissatisfied with the difficulty of buying flowers. Florist shops are not always located within a conveniently accessible radius of work or home. Flower gifts are very personal, and shoppers like to see the arrangements and attach a personal card to the gift, if possible. Flowers are sold locally by other independent flower shops and other outlets such as grocery stores, plant nurseries, the airport, train and bus terminals. Teddy decided that his local direct competitors included independent flower shops, the airport, and commuter train stations. His marketing strategy was to sell primarily to business people, not homemakers. He estimated the total market was over $1,000,000 per year, based on obtaining information on wholesaler shipments into the local warehouses. He also obtained estimates of volume done by his various competitors from delivery personnel that came to his shop. Teddy continued to research the possibility of another way to gain sales from local area businesses within a mile of his shop. He began making notes from his discussions with customers about frequency of purchase and what kind of gift they wanted to buy for what kind of occasions. He asked about gift price ranges, and how much they were willing to spend. He asked them about their degree of satisfaction for the flowers/plants they bought for gifts. Teddy already sold teddy bears in the shop, and considered what other types of merchandise and gifts he could sell. He considered opening a second and third shop in the airport and train station and purchasing an...
Please join StudyMode to read the full document