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Artificial Flowers Import Business Plan

Fantastic Florals, Inc.

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Strategy and Implementation Summary

5.0 Strategy and Implementation Summary

FFI focuses on providing high-quality products to consumers with outstanding service. Customisation of orders and specialisation of services will create a competitive advantage.

FFI is developing the organisation by beginning with few employees to reduce costs. All current employees are very motivated, resulting in a positive and strong company culture. This culture will carry over to all new trainees, which is a prime objective for the expansion of FFI.

The first year of service will be the most important, as FFI plans to establish strong relations with both suppliers and buyers. These relationships will help FFI to grow and evolve in this industry.

5.1 Marketing Strategy

• FFI is focusing on silk flowers and accessories, targeting women with upper-end income as the end customers, and targeting sales reps that distribute to exclusive gift retail stores and mail-order catalogue companies.
• FFI plans to be an exhibitor at Silk '95, having already collected all the necessary information at Silk '94. This trade show is the largest international silk flower and accessories exhibition attended by multiple buyers including, but not limited to, catalogue/mail-order, floral wholesalers, chain stores, craft stores and wholesalers, visual display companies, etc. This will be a good opportunity to start and get exposure to FFI's product. FFI plans to attract the right sales rep and mail-order company for its products through this trade show, which is realistic since Silk '95 is the biggest and most reputable permanent and silk accessories trade show in the United States.
• For the first year, FFI will both lease a space for a retail store at the Third Street Public Market and supply its products to buyers that FFI attains though Silk '95.
• FFI will also send some samples to "Blossom" catalogue, who does mail orders for silk flowers and other silk accessories. The purpose of this is to reach more customers while doing only minimal research.

5.1.1 Pricing Strategy

FFI sets standard prices for each product line. These prices are not expected to experience significant change over the next three years.

• Tulips and Roses - £2.25
• Arranged Flower 1 - £18.99
• Arranged Flower 2 - £39.99
• Silk Scarf - £15.99
• Other hair accessories - £9.99
• Other/Seasonal bouquet - £59.99

These prices exhibit quality products at reasonable costs to consumers.

5.1.2 Promotion Strategy

The goal of FFI is to promote its products as fine collectibles, either for the collector or the gift-buyer. This will be done through in-store promotions, direct-mail advertisements, appearances in related catalogues, and publicity events.

5.2 Sales Strategy

Products will be distributed through the retail store in Anytown at Third Street Market or by pre-orders until FFI is able to further expand. Sales is one area that needs to be developed in order to better serve the consumer and meet objectives.

5.2.1 Sales Forecast

As indicated in the table, sales are forecasted to remain relatively constant throughout 1995, with growth predicted in both 1996 and 1997. Sales, however, will tend to fluctuate depending on the month and the season.

Sales Monthly



Sales Forecast

Sales Forecast
Unit Sales	1995	1996	1997
Tulips and Roses	28,300	35,165	45,714
Arranged Flowers 1	5,000	6,501	8,451
Arranged Flowers 2	5,000	6,500	8,450
Silk Scarf	10,800	13,910	18,083
Other hair accessories	12,000	15,600	20,280
Other/Seasonal bouquet	8,200	10,660	13,858
Catalogue sales	0	20,000	30,000
Other	0	0	0
Total Unit Sales	69,300	108,336	144,836
Unit Prices	1995	1996	1997
Tulips and Roses	£2.25	£2.00	£2.00
Arranged Flowers 1	£18.99	£19.00	£19.00
Arranged Flowers 2	£39.99	£40.00	£40.00
Silk Scarf	£15.99	£16.00	£16.00
Other hair accessories	£9.99	£10.00	£10.00
Other/Seasonal bouquet	£59.99	£60.00	£60.00
Catalogue sales	£0.00	£2.25	£2.25
Other	£0.00	£0.00	£0.00
Sales
Tulips and Roses	£63,675	£70,330	£91,428
Arranged Flowers 1	£94,950	£123,519	£160,569
Arranged Flowers 2	£199,950	£260,000	£338,000
Silk Scarf	£172,692	£222,560	£289,328
Other hair accessories	£119,880	£156,000	£202,800
Other/Seasonal bouquet	£491,918	£639,600	£831,480
Catalogue sales	£0	£45,000	£67,500
Other	£0	£0	£0
Total Sales	£1,143,065	£1,517,009	£1,981,105
Direct Unit Costs	1995	1996	1997
Tulips and Roses	£1.50	£1.50	£1.50
Arranged Flowers 1	£11.99	£12.00	£12.00
Arranged Flowers 2	£27.99	£28.00	£28.00
Silk Scarf	£8.50	£8.50	£8.50
Other hair accessories	£6.50	£6.50	£6.50
Other/Seasonal bouquet	£42.00	£42.00	£42.00
Catalogue sales	£0.00	£1.49	£1.49
Other	£0.00	£0.00	£0.00
Direct Cost of Sales	1995	1996	1997
Tulips and Roses	£42,450	£52,748	£68,571
Arranged Flowers 1	£59,950	£78,012	£101,412
Arranged Flowers 2	£139,950	£182,000	£236,600
Silk Scarf	£91,800	£118,235	£153,706
Other hair accessories	£78,000	£101,400	£131,820
Other/Seasonal bouquet	£344,400	£447,720	£582,036
Catalogue sales	£0	£29,800	£44,700
Other	£0	£0	£0
Subtotal Direct Cost of Sales	£756,550	£1,009,915	£1,318,845

5.2.2 Sales Programmes

• Floral wholesalers: Develop awareness about the quality of FFI's products in order to create demand within the first two months. For the next year, provide incentives and price-promotions to encourage wholesalers to purchase FFI products.
• Retail Stores: Offer low-priced products in exchange for significant shelf space and access to consumers. By the end of the first year, have FFI products distributed in selected stores with minimal constraints on price and location.
• Manufacturers/Assemblers: Provide FFI products at a reduced rate corresponding to volume of purchase.

5.2.3 Sales Goals

• End of 1995 - Sales of £1.1 million.
• July 1995 - Open exclusive gift shop at Third Street Market in Anytown.
• 1996 - Sales of £1.5 million.
• July 1996 - Expand distribution into catalogue/direct mail.
• 1997 - Sales of £2 million.