2. FINAL 2
Executive Summary
Floral Delights is an established local retail florist in Kansas City, Missouri created by
Jamie Green. The shop offers subscription plant and floral installation and upkeep as well as
individual and event floral arrangements. With a company motto and purpose of “Delivering
Expressive EcoCreations”, Floral Delights is poised for rapid national growth as a franchise
operation. German philosopher Meister Eckhart (12601328) said, “What we plant in the soil of
contemplation, we shall reap in the harvest of action”.
Eckhart points to the need for consideration before action. The marketing team is here to
do just that: create a custom and details course of action to ensure the fruition of the Floral
Delights goals for growth over the next two years. Though brick and mortar shops are still the
backbone of floral purchasing behaviors, ecommerce sites and a slowed economy have put
many local florists in a position of struggle. Too many entrepreneurs fail due to a lack of a prove
business model and strategic planning to cultivate revenue streams. Floral Delights is positioned
to give those small business owners as strong backbone of support while working in tandem to
enhance and grow their business. Floral Delights will help them overcome these pitfalls with an
efficient supplier management system, tools to enhance client relationships, continued business
and creative development for all employees, as well as the strength of the marketing team to help
pool these resources and more to increase their return on investment.
In the next two years Floral Delights will strengthen local florist shops across the country
and beyond through laser focused marketing to surpass three million in revenue. Floral Delights
will back up these endeavors by providing creations that are unique to the individual client; flora
will be organically and locally sourced when possible, designs will be seasonal to minimize far
away sourcing, and the product cycle will be assessed for ethically sound practices with a strong
3. FINAL 3
focus on plants as opposed to cut flowers. In these ways Floral Delights is ahead of the global
trend towards green and organic products and choices. With a primary target market of
corporate entities, an ecologically conscious arrangement or installation from Floral Delights will
lend these companies a sense of presentation that is environmentally aware.
Situation Analysis
Floriculture Market
Environmental wellness as a marketable value spans the globe with an increasing sector
for organic products and a focus on ecofriendly sourcing including carbon footprint awareness
(Zimring & Rathje, 2012). Yet green does not always equal lean, and this company must be
wary to avoid green washing the company or products (Grant, 2007). It is best to establish the
company with a focus on current and future sustainability, thereby building a green concern into
the organizational cultural fabric as a whole, whereas lowimpact choices and sourcing will
naturally follow (Grant, 2007). Since the 2008 global recession, florists have had to operate in a
“lean and mean” mode in order to ensure costs are minimized while also striving to enter new
markets and work creatively to keep up with growing online vendors (safnow.org, 2016). Brick
and mortar florists have turned to big online retailers like 1800Flowers to support their loss of
foot traffic, but this choice comes with a steep commission charge and other headaches
associated with outsourcing sales.
Floriculture is a major global industry. With a global trade volume estimated at $100
billion plus annually, the overarching sectors include producers and consumers. The major
consumer markets are Germany (22%), the US (15%), France (10%), the UK (10%), the
Netherlands (9%), Japan (6%), Switzerland (5%) and Italy (5%) (Van Rijswick, 2015). See
Figure 1 Major Global Floral Markets. In order to surmount the two year goal of becoming a
4. FINAL 4
global brand, Jamie’s Floral Delights will need to establish low cost distribution channels to
allow for rapid market penetration, while also keeping a focus on ecoconscientious and target
market specific choices appealing to their preferences (Grant, 2007). A strong focus on
technological development, strategy and training, along with a franchise format with local
sourcing will make this a reality.
Floral Delights will focus regional franchisees in the United States over the course of the
first year, testing and refining the format and guidelines. By the end of twelve months Floral
Delights will have established a foothold in the UK to help grow the company in Europe. This
quick move will help decrease the pressure of local and national competition, as many florists in
the United States are already using large Internet resellers. Each regional franchisee manager
will be responsible for the collective training of those franchisees they oversee, including target
market segmentation and focus that is more closely aligned with their respective localities, needs
and cultural differences. The marketing team is aware that profit allure, though part of the
strategy, is to be addressed after customer focused research (Levitt, 2008). This is key.
Movement forward must be in a direction chosen with care so as to minimize mistakes and
amplify positive adjustments (Zimring & Rathje, 2012). Each region can and must customize
their offerings to the market wishes and requests through the utilization and application of a
customized product (Levitt, 2008).
The consumer to brand relationship (i.e. loyalty) depends on both brand experience as
wells as brand meaning (Dosi, Nelson & Winter, 2000). Advertising in this industry is often
rather homogeneous because floral arrangements are generally the same from country to country.
Yet the presentation, meaning, and experience must be tailored to each segment or problems are
likely to arise (Sahin, Zehir & Kitapçı, 2011). Culturally and generationally congruent
5. FINAL 5
advertising helps to avoid such problems as having a message be ineffective, or worse: coming
across as offensive to a different culture and/or segment (Cui, Yang, Wang, & Liu, 2012).
Because Floral Delights will be teaming with local franchisees because they are capable
of keeping their fingers on the pulse of segmented target markets; the franchise format will allow
for simultaneous continuity with a global brand and congruency with the localized market.
Franchisees and their staff will be provided support from the franchiser to ensure quality of both
service and product. According to the Dynamics of Organizational Capabilities, employees are
far more likely to learn from their managers and peers in stores owned by a single franchisee,
and less likely to consider ideas from a distant franchiser (Dosi, Nelson & Winter, 2000).
Information and direction will be passed from regional franchise management via direct
communication during store visits to the individual franchisees that will in turn pass the
information along to employees via online and in person trainings. This path will be uniform
and structured to minimize variance. Seeking suggestions and ideas from the entirety of the
chain of command should be a major focus built into the overall process of company
communication with 360 review meaning that management will review franchisees while
franchisees will review management (Tirona & Gislason, 2011).
Market Segments
Because floral arrangements are considered a luxury, developed countries will be an
overarching target (Huang, 2005). Flowers resonate with most people as highly interpersonal.
Consumers believe the gift of flowers most signify being caring, personal, and sentimental
(Society of American Florists, 2015). And the people who give flowers are more likely to be
perceived as thoughtful and sincere (Society of American Florists, 2015). Most consumers are
apt to relate to flowers on an emotional and sensory level, per the Society of American Florists:
6. FINAL 6
● The color of the flowers adds to the impact of a gift (64% agreement)
● The sight and smell can improve my mood (60%)
● Flowers are an emotional gift (56%)
● Flowers make me feel special (56%)
● The fragrance is important to me (53%)
Different age groups perceive, buy, and use flowers and floral outlets in ways that differ
according to their unique motivations and barriers (Society of American Florists, 2015).
Generation Yers (including Millennials) are interested in brands that are “cool”, show
contemporary authenticity, sustainable uniqueness, construct a sense of selfidentification, and
arouse happiness (Bergh & Behrer, 2011). Leveraging a subscription service in their
professional environment that presents these characteristics as a brand focus allows for routine
visits and opportunities to cultivate loyalty. Therefore, managers will primarily target corporate
offices, hotels, business centers, and so forth. with a focus on Generation Y professionals. This
segment of the market offers strong implications to be considered: nearly half of consumers have
used the Internet to find a local florist, and one third have sought a local florist’s website. Thus,
targeting the commercial client segment, will expand brand awareness for Floral Delights and
keep it at the forefront of various consumers’ minds when considering the purchase of flowers.
“Just because” gifting by Generation Yers makes up a sizable portion of the market for
flowers such that it is important to incorporate this growing trend, which often relates to
attending and hosting parties (Bergh & Behrer, 2011). They often purchase flowers simply to
impress guests or hosts, far more than other generations have been apt to do (Society of
American Florists, 2015). This is an opportunity for Floral Delights to reposition flower
valuation. Another large portion of the flower market by the Generation Yers and Millennials,
7. FINAL 7
are those that buy flowers simply for themselves (Society of American Florists, 2015). Access to
the Floral Delights app for impromptu ordering as well as an option for individual subscriptions
will garner attention from this market segment.
Researchers at Texas A&M have studied the impacts on productivity as a result of plant
and floral arrangements in the workplace. Their research will provide a basis for the target
segment of young professionals. In particular, with plants and flowers in the work space, women
generate more flexible and creative solutions as well as having a substantial increase in
innovative ideas (Ulrich, 2004). Similarly, men were observed to have 30 percent more ideas
when their environment includes plants and flowers (Ulrich, 2004). This substantial data will be
a guiding light for franchise literature and for training delivery technicians. Behavioral scientist
Dr. Roger Ulrich explains that this “research shows that flowers and plants can be important in
the most meaningful way to businesses in the modern economy, and productivity, in the form of
innovation and creative problem solving, can mean the difference between mild and great
success” (2004).
Nearly 80% of fresh flowers are purchased by women in a high income bracket and more
than 60% of the time they are buying them not as a gift but for professional or personal use /
enjoyment (Ibisworld.com, 2016). Purchasing power within the florist industry has been largely
in the hands of middleaged women who tend to purchase less as they approach retirement age,
and so Floral Delights is charged with cultivating the next generation customer segment (Society
of American Florists, 2015). Academic studies are now plentiful and show flowers boost
productivity and improve mood. Touting these findings as incentive for an established
installment of plants / flowers will be at the forefront of the marketing efforts.
8. FINAL 8
Market Needs
In order to reach the two year goal of becoming a global brand, Floral Delights needs to
establish low cost distribution channels that allow for rapid market penetration, while also
keeping a focus on ecoconscientious and target market specific choices appealing to consumer
preferences (Grant, 2007). A strong focus on technological development, strategy, and training,
along with a well laid out franchise format will make this a reality. Movement forward must be
in a direction chosen with care so as to minimize mistakes and amplify positive adjustments
(Zimring & Rathje, 2012). To ensure changes are made strategically, an annual report will be
developed by the marketing firm to ensure continuity of market direction and focus in the
floraculture markets. This will prompt assessment of the current market forecast and any
subsequent marketing effort redirections.
Consumer Behavior
Dr. Ulrich emphasises the point that research supports flowers and plants in the
workplace can make the difference between “mild and great success” (2004). To keep tabs on
the pulse of consumer behaviors in the floraculture industry, the Floral Delights marketing team
will conduct online surveys to gather data about conditional branching (Aljukhadar & Senecal,
2011). The first half of the online survey is built around the research of Aljukhadar and Senecal
and aims to segment the audience according to their experience and demographic profiles (2011).
This information will be used to predict whether the audience member is a basic communicator
online, whether they shop heavily online, or if they thrive off online social interactive features.
At this point in the survey they will be taken to a second portion according to their
assigned predictive segmentation in conditional branching. Those consumers that are basic
online communicators will be directed towards questions regarding the email newsletters and
11. FINAL 11
● Arrangement delivery has been outsourced to a courier company since the company’s
inception. Unfortunately, this is the one area where clients had negative reviews with
claims such as late arrivals, poor client care, and disregard for the creations themselves.
Opportunities
● Online reviews and floral comparisons often expound upon the unequaled benefits of
going directly to one’s local florist. Potential clients will call their local Floral Delights
shop without fear of being redirected to a call center where they must wade through
countless menus in search of a live person for support. They will speak directly to the
local florist who will likely have years of experience, be trained in great client service,
and offer a product that matches their request and more.
● By offering weekly flower delivery, plant installation and maintenance, Floral Delights
will save money by minimizing the bane of all florists’ existence: spoilage. It also allows
for the cultivation of onsite business building and loyalty growth through frequent buyer
plans and word of mouth advertising.
● The company will pursue a Veriflora designation, meaning the flowers and plants are
cultivated under stringent sustainability standards. Additionally, the Fair Trade
designation shall be obtained whenever possible by ensuring products meet various
standards of sustainability, labor, and development. This will be explored further on a
global level as the company expands and establishes its network, seeking to maintain a
ecoconscientious format in the various franchisee locations.
● Another way to ensure minimum expenses while enhancing marketing efforts is by
utilizing the Deal of the Day option. Also, florists will offer a weekly competition,
gifting a bouquet to a local nonprofit or community organization on behalf of a local
12. FINAL 12
business. This serves as a way to enhance community good will, encourage businesses to
engage with the florist, and provide a charitable donation to push out end of life flowers
and possibly garner tax writeoffs (this is location dependent).
● Through the process of franchising, Floral Delights will establish itself as supporting
small business owners and entrepreneurs on a local level. Franchisees assume the costs
of setting up the franchise, training staff, local marketing efforts, and launching the
business. Preestablished guidelines ensure continuity and accordance to the Franchise
Agreement and Operating Manual.
● Franchisees will be provided a webpage within the greater Floral Delights website along
with technical support to ensure their offers and imagery are kept up to date on a weekly
basis. The online platform will allow the florists to hop, skip, and jump over the
technical needs of setting up a storefront online, and focus on the courtship of building
trust with clients and expanding their subscription offerings.
Threats
● A basic but absolutely vital cornerstone of this industry that must be watched and
assessed on a regular basis is environmental and political conditions.
● Few corporate entities are familiar with options for plant subscription services to increase
productivity of workers, provide enticing character for their clients, and enhance the
visual appearance of their business or building potentially attracting new clients.
● Individual consumers have even less awareness than corporate entities about plant care
services such as automated care and feeding of delicate orchids, violets, and other house
plants outside the context of gardening. To increase individual consumer subscription
13. FINAL 13
services, it is imperative to approach the market segments similarly but separately,
offering a solution to consumer needs.
● Rapid company growth paired with global relations and communication strife can be a
recipe for disaster. With an increased network of multiple firms and suppliers, conflict
management can both mitigate and exacerbate the effects of likely conflicts.
“Interpersonal and task conflict have a negative effect on network member satisfaction”
and their overall desire for involvement (Bradford, Stringfellow & Weitz, 2004). The
effects of confrontational or accommodative styles is dependent upon network
interpersonal and task conflict management skills (Bradford, Stringfellow & Weitz,
2004). Regional Franchisees will be tasked with ensuring not only quality of product and
service but also conflict resolution.
Competitors
Local
Fiddly Fig and Kamps Flowers are well established businesses in the Kansas City,
Missouri local area, each with an excellent reputation. Each is a stand alone store. Both offer
free delivery across the Kansas City metro area with the ability to order online. Fiddly Fig
utilizes the marketing and website system of the United Florist Network (UFN), giving them
access to their website build and support with their online marketing. However, UFN has many
reviews online stating discontent, mostly due to their high commission rates. They also provide
customers with a telephone app for ordering via the FloralApp (a joint venture between Teleflora
and FTD) on mobile devices, implying they are reaching out for younger generations, though the
app information is not prominently placed on their website (Peters, 2008).
15. FINAL 15
BloomNation takes an entirely different route by outsourcing their entire operation in a
format somewhat similarly to Etsy (Bucciere, 2014). Customers shop by general location and
are presented with imagery of offerings by local florist and artisans. This affords them the
ability to offer a sizable collection of living plants to choose from because of the localized
delivery. Much of their focus has been on the technological side of their process, and they are
rapidly becoming a more prominent player in the floral industry. Their mobile site is polished
and customers can easily access their social media profiles and chat with a customer service
representative on the spot, but they do not have a mobile application. Surprisingly, BloomNation
does not offer a subscription service, nor specifically sustainable choices.
Global
Teleflora and ProFlowers (a subsidiary of FTD Flowers) reach across the globe. Teleflora
offers delivery to an impressive 165+ countries. However, customers must call the company
directly to both choose and order their floral designs outside their country of origin. This
inconvenience is mitigated with greater options since the company contacts local florists to help
ensure the order is as requested. Teleflora offers a Deal of the Day, giving their florists a way to
push out arrangements and offerings that are at risk of spoilage. They pride themselves on
requiring local florists to ensure each delivery comes from them directly, with no boxes or
shipping. Their mobile site is progressive and offers access to connect with them on social
media, the ability to sign up for their purchase rewards program, and flower guides to peruse.
Their local florist network is accessible via the FloralApp, however, they do not offer a
subscription service of any kind.
ProFlowers ships to even more countries and as a viewer clicks on their desired delivery
location, the options available in that area appear, ensuring ease of choice and purchase.
16. FINAL 16
International purchases are processed through their sister sites, ProFlowers International and
FlowerFarm. They have received widespread criticism because most orders are delivered in a
box via FedEx and must be arranged by the recipient, meaning a professional aesthetic is
unlikely. They offer a monthly bouquet delivery subscription service, though it is not a focus for
them and does not appear on their mobile site at all. ProFlowers offers their own mobile app but
it has several negative reviews that are in line with much of the online criticism. Neither of these
competitors boasts ecofriendly or ethical sourcing. Both have a cornucopia of negative reviews
online concerning the quality of what a person has ordered, and what they received, showing a
disconnect between corporate entities and the services delivered.
Affective Trends
A drive for subscription services will point many franchisees’ attention to urban
metropolises. Focusing within a specified radius of their prime location, two kilometers for
example, minimizes travel time for deliveries. A secondary target are similar businesses in a
larger radius, six kilometers for example. Research will be done for each location to determine
the total number of corporate offices in those areas and demographics of the professionals
within, initially targeting those with a higher percentage of women.
Other trends Floral Delights will follow include the increased desire for individualized
flowers and plants with a marked move away from mixed flowers. The Society of American
Florists (2015) indicates this is a focus on an individualized aesthetic relationship to flowers.
Such a trend can be leveraged by franchisees through their ability to effortlessly showcase
unique offerings on their website. Each store will be training to enhance customization and take
photos of their products as a way to showcase their diverse capabilities. Routine deliveries and
upkeep of plants for the subscription clients will also be used to present a showcase, because
17. FINAL 17
Generation Yers prefer to purchase flowers in person and also prefer convenience. A Floral
Delights representative in their office will be a friendly and reliable source of knowledge and
creativity that they will be able to order from on the spot.
Seasonality issues are readily addressed with a focus on subscriptions: customer numbers
and demands vary depending upon the season, atop weather conditions (a major factor for this
business). Planning floral wholesale purchases based on past statistics of seasonal offerings, as
well as taking into consideration environmental concerns and the growing green trend, is of
utmost importance. Because less than 20% of floral purchases are focused on a calendar
occasion, impromptu purchasing should remain a central focus in all marketing efforts outside
holiday specific contexts (Ibisworld.com, 2016). This will allow Floral Delights stores to order
on a seasonal rotation in a sort of “farm to table” style presentation. The Generation Y
population prefers to deliver flowers themselves, echoing the desire for personalization, and
falling in line with Floral Delights’ delivery offerings. Personal deliveries can be combined with
corporate routes since 73% of consumers typically purchase flowers at their local supermarket
for the sake of convenience, even though florists are respected as offering higher quality,
freshness, dependability, and floral life all of which are important purchasing factors to this
particular target market (Society of American Florists, 2015).
Keys to Success
With a national decline in floral sales, Floral Delights is positioned to offer support and
guidance for small business florists (safnow.org, 2016). Given clear focus and the tools to
succeed alongside oversight, a struggling business owner may soon find themselves thriving.
Floral Delights storefronts will offer a highquality client service experience with easy and quick
turn around while still ensuring all creations are “expressive” and convey the desired response as
18. FINAL 18
dictated by the client. Online classes and accessible franchisee support offerings will ensure
franchisees can cultivate specialized arrangements that are centered around quality product
subscriptions and designs that cater to the requests of the client. There is a general belief
among florists that the market is flooded with little diversity of creative offerings (safnow.org,
2016). Helping franchisees develop a clearly defined niche and honing in on their particular
skills given their local flora while increasing their capabilities, will help them thrive.
Critical Issues
Logistical factors.
Regional managers and foreign franchisees will be tasked with ensuring not only quality
of product and service, but also alerting the franchise owner about local or regional conflicts that
may effect suppliers. Political shifts must be monitored for effect on sourcing as well as
franchisees. What is more, rapid company growth could prompt internal conflicts which will
dictate choices about confrontational or commutative styles (Bradford, Stringfellow & Weitz,
2004). Thus, management bears the responsibility of predicting and resolving conflict with the
primary goal on prevention of crisis. On the other end of the spectrum, management will alert
the franchisees to new potentials for shared initiatives on a local level. The Floral Delights
franchise will provide ongoing support for all franchisees, including an online portal with
universally useful weekly lessons in business development, floral design and care, marketing,
client service, and location specific information in the form of a conflict and opportunity report.
Corporate social responsibility.
Research has shown that environmental wellness is now a global focus alongside
consumer drive for organic products and green sustainability (Zimring & Rathje, 2012). Floral
Delights must source not only low cost distribution channels to allow for rapid market
19. FINAL 19
penetration, but also maintain the focus on ecoconscientious by targeting sources and suppliers
that follow organic and ethical practices (Grant, 2007). Regional managers will be tasked with
vetting and sharing proof of these standards for all aspects of their local supply chains. It is
essential for Floral Delights to strive towards providing ethically sourced, local, and organic
products. This will put the company ahead of the global curve and establish the brand as truly
environmentally lowimpact and ethical.
Channels
Broad based utilization of numerous channels will reflect overall consumer market
approach and bolster of brand awareness. Channels will include public relations, targeted
advertising, personalized outreach, website and social media presence, traditional trade events,
direct email, and comarketing efforts with local nonprofits and selected businesses and venues.
Floral Delights will position itself as unique in providing individualized attention and support for
franchisees and their customers with in home or office consulting, along with an easy and
convenient subscription service that encompasses complimentary delivery, installation, and
maintenance. The culture of Floral Delights manifests as a supportive presence within the local
community.
Financial Analysis and Pricing Structure
Research
The United States boasts more than 45,000 florists, supermarkets and garden centers
selling cut flowers and floral arrangements (Usda.gov, 2016). Of the overall floral market, fresh
cut flowers make up about 30% (Usda.gov, 2016). The average floral shop income is $125,000
with sales averages that are roughly $300,000 annually (US Census Bureau, 2016). The market
demand for flowers has diminished since 2008 with an increased demand for online gift options
20. FINAL 20
(safnow.org, 2016). According to research by the Society of America Florists, the reasons
flowers are purchased are primarily (86%) noncalendar occasions versus holidays (14%).
Figure 23 Non/Holiday Sales. Because of this, Floral Delights will capitalize on the everyday
simple pleasure unexpected flowers can bring.
Floral purchases are motivated primarily in consideration of the quality and freshness of
the product, first priority for 93% of those surveyed, and secondly based on a product guarantee
88% of those surveyed (safnow.org, 2016). Floral Delights aims to ensure a freshness guarantee
by minimizing spoilage with their subscription services, increasing plant sales, and ensuring
floral turnover through their Deal of the Day and weekly business drawing giveaway offerings.
The next line of priority for most floral purchases is ease of ordering and convenience, 83% of
those surveyed, which Floral Delights will provide through the use of local florists that have
chosen to franchise already existing locations as well as those opening new retail locations
(safnow.org, 2016).
According to the Society of American Florists, 91% of consumers bought floral gifts and
flowers at their local florist shops (including within grocery stores) within the past year (2016).
And 63% stated this is where they do so “most often” (safnow.org, 2016). Jamie’s Floral
Delights will be a collective franchise primarily targeting already existing floral shops and
supporting those wishing to create from the ground up. This entails the franchisee paying an
initial fee followed by ongoing costs and royalties to the franchiser. In exchange, each
franchisee will be provided with a proven business identity, operation setup, business
conversion, and support (Reference for Business, n.d.). Some of the benefits provided include
the company name “Floral Delights” and branding, ethical sourcing and pricing guidance, loan
procurement and finance management, product and line development, marketing and techniques,
22. FINAL 22
○ This amounts to roughly 5 sales averaging $75 per day.
● Achieving ⅔ of their revenues from subscription contracts.
○ Achieving an average revenue from each subscription of $500 per month will
bring in $20,000 from subscriptions alone.
○ With an average subscription bringing in $500 per month, a franchisee will need
40 subscription contracts.
Pricing Strategy
Franchisees.
The goal is to have 100 new franchisees secured within the United States over the course
of the first year. Franchisees will be required to pay a franchise fee of $10,000 which is low
because other initial cost outlay will include setup costs such as insurance, training, and
marketing. All of these will be paid to the franchiser, covering the portion of those services
which the marketing firm will provide. With the exception of the initial franchise fee, these
payments are annually recurring. See Figure 4 Forecast: Contractual Income from Franchisees.
All fees will be subject to fluctuation based on geographic and socioeconomic differences, and
inflation within the ever changing floral industry due to environmental shifts (Usda.gov, 2016).
Jamie’s Floral Delights will establish a royalty structure based upon the percentage of
gross sales by the franchisee. It will be a decreasing percentage starting at 10% of monthly sales
wherein the royalty percentage is reduced by 0.075 per $1,000 with a minimum of 3% per each
$1,000 increase of revenue (see Figure 7 Table of Royalties). With independent florists making
an average of $30,000 in revenue monthly, franchisees should expect to pay a monthly royalty at
7% of total revenue which is $2,100 on the average (safnow.org, 2016). This provides additional
incentive for performance and still allows Jamie an acceptable rate of return (Thomas & Seid,
23. FINAL 23
2000). This also serves to encourage franchisees to report sales totals more accurately,
especially in locations where cash is a primary form of payment (Thomas & Seid, 2000). Thus,
differing rates will be established for differing sales levels on a per month basis. Increased sales
means decreased royalty rates, allowing franchisees to recoup start up fees and giving them
ongoing incentive (Reference for Business, n.d.).
Product.
Floral imports account for more than 60% of fresh flowers sold within the United States
(Ibisworld.com, 2016). When sourcing flowers Floral Delights requires strict adherence to the
company mission and ethics with an annual review. Therefore, if a franchisee uses a source
other than those the franchiser has preapproved, specific standards must be met. Working
conditions of the farms must be evaluated through consideration of indepth worker interviews;
wages must be sufficient to allow for healthful living conditions; suppliers must provide
information about workers’ rights and labor practices from the farm through the transportation
channel; and farmers must have measures in place to maximize production lead times and
minimize long work hours (Ethicaltrade.org, 2016). Best practice is using suppliers that are
locally sourced and closer to home with a focus on organic production and ethical labor habits,
on a seasonal rotating basis to maximize native plant usage and minimize the overall floral
carbon foot print.
The USDA has shown increased support for American cut flowers, and Floral Delights
will reward franchisees for doing the same by showcasing local options and falling in line with
the brand mission to encourage greener purchasing by teaching clients about the beauty and
opportunities of using seasonal variations (Harden, 2014). Rebates will be available for
franchisees that source within their region with special attention to those sourcing in the United
24. FINAL 24
States. Whether it is Las Vegas, Nevada buying from California which produces 76% of
America’s cut flowers, or Toronto, Canada buying from New Jersey with 4% of American
domestic production, franchisees will see the advantage of local sourcing. (US Census Bureau,
2016).
Franchisee pricing strategies will be in the form of cost based pricing, taking into account
geographical pricing. Rare exceptions will be made for some subscription services, occasional
promotional pricing, Deals of the Day, and weekly drawing giveaways. Cost based pricing will
allow for the variations needed in supply chain flux and delivery fees, which will all be location
dependent. This also allows for the natural fluctuations that occur with seasons and weather
conditions that shift in the floral industry (Usda.gov, 2016). Franchisees in the United States will
be encouraged to multiply their costs just enough to come in under those found on Organic
Bouquet and Bloom Nation, national competitors in this arena. In year two, the overseas
franchisees will do the same, but in comparison to the prices of Teleflora and ProFlowers.
However, given that the franchisees are taught and encouraged to develop arrangements and
offerings of a unique nature, cost comparison support will be available through the franchiser
telephone and online support system.
All subscription offerings will be priced on a fixedrecurring model, putting the customer
on a cyclical charge. Plants will be encouraged, rather than floral arrangements, minimizing
spoilage, ordering fees, delivery costs, and overall bottom line. Cost to the consumers will cover
installment, display setup, and regular maintenance and care or replacement. The initial cost of
the first installation will be standard with a subscribers discount offered of subsequent
replacement installations of 10%, which should not decrease the bottom line given the recouped
cost of spoilage. Assuming United States franchisees bring in an average of $5,000 in royalties
25. FINAL 25
each during their first year of operation, and the average sale is $60, franchisees will need to aim
at achieving approximately 83 sales per month. Of course these numbers will be dependent upon
subscription services signed, success of the daily and weekly deals, as well as the season and
month.
Annual forecast.
To meet its annual budget, Floral Delights estimates it needs 100 new franchisees the first
year of operation. Given that the business will be growing in subsequent years, and the initial
franchisee fee is only received in their first year of operation, Floral Delights will look to
increase franchisees by 50% in year two as the franchise stretches into the international market.
Year three can expect to see increased growth by another 50%. The third year will be focused on
steady growth, but more importantly on strengthening the foothold within the industry and
ensuring the franchisees are well supported and growing themselves. No companies hold a
dominant market share in the United States floral industry, according to thirdparty industry
market researcher, IBIS World. In 2015 the United States floral industry brought in roughly 6
billion in revenue (Ibisworld.com, 2016). Year one will set the benchmark for market share in
the United States. Thus, to calculate the overall Floral Delights market share, the projected
revenue is divided by that of the floral industry. Given royalties are initially speculative, Floral
Delights will be focused on word of mouth marketing, trade events, and online outreach to
potential franchisees. By year three the company shall be on target for future growth. See figure
5 and 6 Forecast: Marketing Budget.
Marketing Budget
The franchise marketing budget will allocate a portion to focus on each franchisee at the
local level, encompassing both off and online marketing (Franchise Marketing Systems, 2015).
26. FINAL 26
This amount is set to an annual $4,000 due upfront with the initial franchise fee, allowing for
immediate allocation of resources for the new location. Less than 2% of all local businesses
think that payperclick advertising on a local level is effective (LocalVox, 2016). Therefore, the
messaging will be tailored to the region, while still considering the overall local demographics
and cultural fit within the dynamics of Floral Delights. This will allow funds to stretch across
franchisees, and allow the company to entrust this allocation and its assessment to the regional
franchisee manager. Franchisees will have access to the Marketing and Creative Design Team
and be able to order promotional materials as needed. Brand quality control comes from the top
down while ensuring all locations are enabled to produce and develop advertising as they see fit
on the local level (Franchise Marketing Systems, 2015).
Integrated Marketing Communication
The company motto is, “Delivering Expressive EcoCreations”. This is what Floral
Delights consistently strives to offer: floral delivery subscription services that put forth
expressions of individualized creativity. Rapid growth will be facilitated by using already
established companies along side those wishing to hit the ground running. It is crucial to
maintain close contact during fast paced expansion, meaning online connectivity and interfacing
with the franchisees is of utmost importance. Competitors are already using local florists to
fulfill orders, but that is their extent. They are not offering them a franchise option. They are not
yet empowering them to maintain control over their business yet reap the rewards of guidance
and support from a parent company. This is the exact area in which this company can strive to
better support their endeavors. Rather than making them dependent upon online sales fed by the
parent company, endogenous efforts will be amplified increasing subscription services by
27. FINAL 27
providing premier telephone and online support, order management, continuous training, and
growth potential.
Mission
Jamie’s Floral Delights has two overarching objectives: establishing a full national
presence within one year of operation, and a growing international presence within two years of
operation. The overall marketing objectives begin with the franchise growth and an increased
awareness of the benefits to small florists’ businesses. Targeting more than the floral client,
Floral Delights is also seeking franchisees as they are the vehicle by which to increase consumer
interest and sales. Starting from the ground up, the growth objectives are to increase the market
visibility within the floral trade industry itself, as well as with the populace of the target market
for the subscription and retail sales.
Primary objectives.
The primary objective is to cultivate loyalty through a consumer to brand relationship
which depends on the consumers experience as well as the meaning they perceive from the brand
(Dosi, Nelson & Winter, 2000). Floral arrangements are often homogeneous throughout the
national floral industry, which is the overall target marketplace for the first year (Ulrich, 2004).
By teaming up with already established florists and providing continued arrangement education
and creative classes online, Floral Delights will more readily stand out from the crowd. A key
component in the endeavor to grow relies on the fact that consumers typically relate to floral
arrangements on an emotional and sensory level (Society of American Florists, 2015).
Therefore, customization must be a strong column of the subscription services provided. While
cultivating brand presence in other nations within the second year of operation, Floral Delights
must keep a close eye out for ethnocentrism and ensure offerings are personalized with culturally
28. FINAL 28
congruent meanings, presentation and experience (Cui, Yang, Wang, & Liu, 2012) (Sahin, Zehir
& Kitapçı, 2011). Having regional marketing managers in place overseas will help hit these
marks.
Marketing Strategies
Low prices and convenience are important factors with 73% of floral purchases for
oneself being made at supermarkets (Society of American Florists, 2015). Though Floral
Delights is not positioning itself as a bargain option, it is important to not outprice target clients.
Continually asking, “why are people less likely to purchase online or even to walk into a florist
shop?” is of importance. In an industry with consumers that prefer to purchase flowers in person
at 67% visual accompaniment is a must for sales representatives and those delivering
arrangements (Society of American Florists, 2015). Staff appearance will be uniform and
professional at all times, seeking to present a personable disposition. Because the franchisees are
often brick and mortar locations not within grocery stores, ease of purchase is to be a priority,
second only to visual presentation in marketing outreach. Tactics to focus on the target audience
include the creation of an effortless buying experience that is unique and client focused, and the
continued development of florists and their staff.
Industry awareness.
Having roughly 14,000 floral retailers in the United States, the awareness of Floral
Delights stores and franchisee offerings is starting at 0% and must increase to at least 7.1%, or
994 of the total industry locations (First Research, 2016). The franchiser is aiming to develop at
least 100 franchisees within the first year. With a 10% conversion rate of already established
florists as new franchisees, this would give a foothold of 0.71% of the floral market. Any
franchisees that start from the ground up will be surplus to this initial target of already operating
29. FINAL 29
businesses. Consider that the 50 largest floral companies in the country account for less than 10
percent of total sales; this puts into perspective that this is a realistic and reasonable target (First
Research, 2016).
Profitability and growth.
The profit objective is to have royalties that average $10,000 per franchisee per year. If
focused primarily on subscriptions as the target sales item, and the price average per monthly
subscription is at $220, franchisee owners will need to aim for at least 50 active subscriptions at
any given time. If they reach out to at least 500 offices, galleries, retail shops, and restaurants in
their local area, they would need only to have a 10% conversion rate. This can be offset by
personal rather than commercial subscriptions as well. Individuals will be able to sign up for the
subscription services if they wish to have fresh floral arrangements delivered to themselves or
others, as well as plant installation and maintenance in their personal spaces. These options
allow the florist to focus on either or both subscription markets per their growth and return on
investment (ROI).
Profitability objectives include an overall forecasting income amount from operating
franchisees of $2,000,000 within the first year. This includes all opening and establishment fees
to the franchise, which amount to $20,000. See figure 4 Forecast: Contractual Income from
Franchisees. The initial outlay will help lead infrastructure development as well as enhance
marketing and outreach to establish a strong foothold across the industry and within their local
communities. Maintaining these objectives requires consistent customer relations, product
testing, and strategic growth initiatives such as training webinars, client visits, sales promotions
like Deal of the Day, and weekly drawings. Opportunities to strive towards growth will
empower franchisees to work towards a common goal of not only client growth, but personal and
30. FINAL 30
professional growth on a creative as well as business oriented level. Online continued studies
will be required and will include accounting and bookkeeping, merchandising and presentation,
marketing and salesmanship, as well as psychology and design (Howard, 1990).
Logistical and Target Market Factors
There are two key markets. Initially the overall focus is on the franchise development.
Firstly, those businesses already established and wishing to franchise under the Floral Delights
header, and secondly those wishing to start from the ground up and/or work without a brick and
mortar location. The second market are businesses and offices within a 10 mile radius of any
franchisees’ location that will utilize the subscription service plan. These commercial accounts
will be procured and fulfilled by their nearby Floral Delights franchisee with stellar and seamless
delivery, installation and maintenance. Alongside this focus is the individual consumer seeking
floral services for themselves and as gifts.
Anticipated Growth Opportunities
More specific research will be ongoing for the target segments. An example of recent
research to be considered shows that individual noncommercial clients use floral arrangements
primarily on tables, especially dinner tables. Competitors do offer specifically stated table
arrangements, though they are primarily presented as holiday specific. Putting a focus on the
shared experience of a dinner table graced by greenery and flowers will help support year round
demand. Because the target segment is the most likely to buy floral arrangements and plants for
domestic use, they often seek floral preservatives plant food and instructions in their purchase
(Behe, Prince & Tayama, 2016). Many florists do provide a flower preservative in prearranged
floral bundles, but few do so with arrangements and potted plants. Floral Delights will not only
31. FINAL 31
provide resources about care and handling on the website but will also offer maintenance
services on a subscription basis.
Profit growth is supported by modifying the cost structure of a floral business away from
a focus on the cost of goods sold, and instead focusing on labor and efficiency costs (Collins,
Fails & Schabenberger, 1999). Unfortunately, many small florist shops are losing large amounts
of income due to commissions for online services like FTD and ProFlowers (Collins, Fails &
Schabenberger, 1999). The same research has shown an increase in productivity and ROI when
given access to comprehensive business development information along with the support and
confidence to apply that knowledge within their business operations (Collins, Fails &
Schabenberger, 1999). This is exactly what sets Floral Delights apart from commission based
online ordering systems. Small business owners will find that knowledge and support as a
franchisee without paying exorbitant commissions that slice heavily into their bottom line.
Franchisees
These overall marketing objectives begin with the franchise growth and an increased
awareness of the benefits to small florists’ businesses. Advertisements in industry periodicals
will garner name recognition and give Floral Delights a vehicle by which to present the benefits
to the potential franchisee. By providing a personable reallife interaction at floral industry
conferences and events, Floral Delights will set a tone for an attractive offer as well as for an
affable relationship built on mutual growth and conjoined goals. Marketing will present the
benefits of franchising with Floral Delights’ as a means to empower local florists, to maintain
control over their day to day business, and to simultaneously reap the rewards of market
navigation and support from a parent company with global connections. This is a markedly
different scenario than that offered by competitors like FTD and ProFlowers. Floral Delights
32. FINAL 32
will amplify franchisees’ efforts on the ground, will increase subscription services by providing
stellar business management support, will build client acquisition over a growing global
consumer base, and will assist with product quality and installation refinement, as well as with
client retention and ongoing employee training.
Clients
The primary target market branding objective is to cultivate consumer to brand loyalty
through the ability to relate via presentation needs and by nourishing relationships which
depends on the consumer experience as well as the meaning they perceive from the brand (Dosi,
Nelson & Winter, 2000). Because consumers typically relate to floraculture on an emotional
and sensory level, Floral Delights branding will exude customization. Particularly in America,
floral arrangements are often seen by consumers as homogeneous; this hohum response affirms
the need to stand on a platform of creating innovative experiences in a class of their own
(Ulrich, 2004). Floral Delights will ensure franchisees benefit from branding that promotes a
focus on those qualities that they wish to emanate such as individualized expression (Society of
American Florists, 2015). Personalized design and service will be a strong column in all
franchised marketing efforts; this will serve to ensure sensitivity over a broad swath of the planet
such that Floral Delights’ creations will cultivate an experience that shares culturally congruent
meanings (Cui, Yang, Wang, & Liu, 2012) (Sahin, Zehir & Kitapçı, 2011). As expansion moves
international within the second year of operation, this is vitally important for brand to consumer
trust (Sahin, Zehir & Kitapçı, 2011).
33. FINAL 33
Marketing Mix Alignment
Message Refinement and Variations
Message refinement will be an ever evolving action item for the marketing team with
input from the owner, franchisees, and collected data. Social listening tools will help monitor
what may be said of the company, products, and/or service. Customer relationship management
(CRM) is vital in a world as connected as ours, especially as Floral Delights moves into markets
beyond the United States. Maintaining data in real time about prospects, leads, and clients will
allow the marketing team to effectively launch and monitor multiple campaign tests
simultaneously.
As Floral Delights approaches global marketing exposure and necessity, the marketing
team will ensure content is human generated multilingual. This is the tip of the iceberg. More
important to the efforts will be the regional managers providing supportive research for each
local audience. Rather than a global campaign with local variations, Floral Delights will
approach each new franchisee location with specific incountry campaigns. This starts with the
company name, pricing habits, branding colors and design. But it is far more intricate; the
marketing team will work with each regional manager to assess local standards and cultural
norms, country specific websites and keywords. Each new country Floral Delights enters will
prompt the hiring of a local marketing firm to perform a thorough audit of the marketing plan to
ensure cultural continuity and increase the rates for success. This audit will encompass all
marketing plan aspects from client persona to local compliance with laws.
Integrating Suggestions
Having full communication with the owner is essential to ensuring the marketing mix and
direction contain concise and clear editorial content. Utilizing the owners verbiage and desired
34. FINAL 34
syntax is essential. When writing content, the marketing advisers will draw from the owner’s
marketing communication and desires to ensure they are familiar and invested in the
development. This same structure will be applied to the marketing mix choices and chosen
channels. Though the team is conscious of new trends in technology and marketing options, the
focus will remain on task with the strategies set forth here. More important than being ahead of
the crowd, is being received warmly by the target with which the company wishes to speak!
The current marketing mix is distributed over a range of media and channels with room
for adjustments as continued research and the metrics come into play (Rhyne & Wright, 1991).
The marketing team relies heavily on data showing where the Floral Delights markets are
reachable, yet the owner and franchisees have strong understandings of the floral industry pulse,
and without a doubt that input may be supportive of suggestions throughout the process of
marketing (Rhyne & Wright, 1991). Chosen processes need to draw from an understanding of
the implications that will prove to be inherent with each choice (White, 1998). Consistent and
thorough input from the owner and franchisee will inform any understanding of both internal and
external outcomes, providing a deeper understanding of the results of the efforts on the
workforce and company (White, 1998).
To keep a shared focus on the organizational goals, it is important to be wary of
assumptions such as presuming target market needs without validation, losing sight of client
investment during the planning process of the marketing plan without checking for
contentedness, and presumed awareness of demographic changes. The best solution for avoiding
assumptions and presumptions is to build in safeguards and stop gaps so that local franchisees
are involved at every step of the process. As the marketing plan is implemented through Floral
Delights labor force providing thorough and ongoing skill lessons to assure quality of
35. FINAL 35
implementation and to keep employees aware as well as empowered to better support their own
marketing efforts coordinating those of the franchise at large (Mignonac, Vandenberghe,
Perrigot, El Akremi & Herrbach, 2013). Studies show that building franchisee commitment is
enhanced by formal, frequent, and structured communication that is reciprocal (Meek,
DavisSramek, Baucus & Germain, 2011). Communication must be ongoing, as is the
refinement of marketing choices.
Input from the owner, franchisees, and managers will be critical and addressed during the
monthly conference call with an agenda covering each of the various aspects of marketing that
the workforce should be learning and implementing. Attendees will be expected to submit a
minimum of one item to be addressed either in direct response and/or during the conference.
This should minimize any trouble obtaining marketing feedback and suggestions from
franchisees, as well as providing information to consider integrating into the existing plans
(Mignonac, et al., 2013). The marketing team will be watching for signs of marketing
inflexibility, coordination problems, and poor information management in the dissemination of
marketing plans as well as the trickle of details through the workforce (Mignonac, et al., 2013).
A quarterly marketing review of each franchisee will help mitigate any coordination problems or
human relation issues that may be a hindrance if unaddressed. It will also serve to inform the
marketing team of performance and implementation evaluation, resulting in a review of the
franchisee marketing endeavors alongside any resulting correction plans that may be needed
(Mignonac, et al., 2013). See Attachment 1 Overview of Marketing Team Goals and Milestones:
Year One Timeline for an overview of the year one marketing goals and milestones.
37. FINAL 37
● Tag line “Delivering Expressive EcoCreations” to be used on all signage,
advertisements, branding such as delivery van wraps, et cetera.
● Branding colors are Spiced Pumpkin, Sweet Chocolate, Dark Sage, and Purple Poppy
(see Attachment 2 Corporate Subscription Brochure) to be used in all marketing and
branding efforts including wall paint, packaging ribbon, et cetera.
● Logo will have a simple floral design that will be signature for all marketing as well as
the chosen font to be used in all marketing and branding efforts including employee
shirts, promotional materials, et cetera.
○ While moving into new locations internationally, the logo and all marketing
visuals will be assessed by a local marketing firm in that area to ensure the
desired message is relayed.
The elements will be developed by the owner of Floral Delights with the support of the
marketing firm and graphic design specialist alongside the research team detailing competitive
research around branding options.
Marketing Materials
All marketing materials will flow through the parent company marketing department for
approval. The intent is to ensure consistent branding across all channels as well as stores. Print
and online media may be requested through the online florist portal. Franchisees will be
provided materials such as Floral Delights packaging, signage, gift cards, employee shirts, van
wraps, and stationary including a full paper and electronic identity: business cards, letterhead,
email signatures. Acme Paper will supply paper goods and supplies for all locations with a
projected annual cost of just under $32,000.
38. FINAL 38
Marketing Communications, Timeline, and Target Metrics
Advertising
Florists’ Review has a large readership with more than 17,000 email addresses on their
monthly newsletter list. They offer advertisement space with ½ page advertisements that will
cost $4,500 annually. Comparable to others yet more popular, Flowers & magazine will run
$9780 annually for their print media which includes online exposure. By reaching out to
consumers as well via sites like Wedding Wire where an annual unlimited membership will
allow each franchisee to log in and advertise per established specifications, at only $5196
annually. Reaching out to businesses and individuals alike while promoting community
goodwill, franchisees will vie for the chance to have their shop featured on their local NPR
fundraising drive with a 3 month custom floral design subscription, up to ten per drive, as one of
the offered rewards for donations.
Implementation: who, time frame, cost.
● The marketing firm will place an ongoing advertisement seeking to entice franchisees in
Florists’ Review which has a large readership with more than 17,000 email addresses on
their monthly newsletter list. They offer advertisement space with ½ page advertisements
that will cost $4,500 annually. This will include a clear call to action: website with
franchisee information and contact.
● Comparable to others yet more popular, the marketing firm will place a ½ page
advertisement seeking franchisees in Flowers & magazine that will cost $9780 annually
for print media which includes online exposure. Again, there will be a clear call to
action: website with franchisee information and contact.
39. FINAL 39
● The objective is to reach out to consumers as well via sites like Wedding Wire where an
annual unlimited membership will allow each franchisee to log in and advertise per
established specifications, at only $5196 annually. The marketing firm will set up each
franchisee profile and ensure they are provided with training to utilize the site. This will
be the primary wedding specific channel franchisees will use to cultivate bridal interest.
Evaluation: metrics, time frame, evaluation.
● Advertisements placed will seek a conversion rate of at least 2.5% collectively by end of
year one. That would equal 45 new franchisees per advertisement, annually.
○ This rate will be determined by dividing the number of new franchisees brought
to use from this outlet, by the readership numbers, then multiplied by 100.
■ Example: with a readership of 17,000 and 9 new contracts, the objective is
to reach a 5% conversion rate.
■ This rate will be assessed for each outlet on a quarterly basis by the
marketing team.
Control: how, when, by whom.
● If advertisement conversion rates are not reaching 0.5% within 3 months of display, the
marketing team will reconsult with the magazine editorial staff about placement
variations and sizing.
● If advertisement conversion rates are not reaching 1% by the second quarter, the
marketing team is likely to review and consider additional advertisement outlet options.
40. FINAL 40
Public Relations
Implementation: who, time frame, cost.
● The largest trade conference for the floral industry, the International Floriculture Expo
hosted in June of each year will provide a targeting opportunity for the marketing staff to
help the Floral Delights owner and chosen franchisee representatives alongside at least
one profitable franchisee present as a vendor and sponsor for the purpose of reaching new
potential franchisees with choices depending upon location. Full sponsorship including
all advertisements, booth, and promotional supplies will run $17,500.
● On the local level, each franchisee will work with the marketing team to target 800
businesses within a 10 mile radius for outreach. These lists will be utilized for direct
mailing and promotional deal announcements as needed and directed by the marketing
team. This list will continuously be expanded and nonresponsive businesses will be
retargeted once annually.
● Each franchisee will have a Grand Re/Opening gala where local businesses and
influencers will be invited for the purpose of promoting environmentally sustainable
design and plant installations. An event planner will be brought in locally for each event
and work in tandem with both the marketing team and the franchisee.
Evaluation: metrics, time frame, evaluation.
● With an attendance of more than 14,000 patrons, the objective is a 0.7% conversion rate
due to the efforts at the International Floriculture Expo (100 newly signed franchisees).
● Once a local list of 800 potential corporate clients has been developed, the marketing
team will develop outreach materials such as fliers, brochures, postcards and send them
41. FINAL 41
out. This will be initiated in tandem with the franchisees’ grand re/opening with 50 new
businesses being reached per quarter thereafter.
○ The profit objective is to have royalties that average $10,000 per franchisee per
year, and the price average per monthly subscription is $220, seeking at least 50
active subscriptions at any given time.
○ With an initial outreach of 800 businesses, Floral Delights will seek a conversion
rate of 6.25% giving the franchisee the minimum 50 subscriptions desired.
Control: how, when, by whom.
● If a conversion rate of at least 0.4% is not achieved at the International Floriculture Expo,
the marketing team will reassess sponsorship options, and design plus execution of the
vending space and presentation. An outside conference marketing consultant may be
brought in at this time to support these adjustment efforts.
● The number of local businesses that will be reached in future quarters after the re/opening
will double per each 1% under the initial push for a minimum 6.25%, 50 corporate
subscription clients, target until it is met.
CoMarketing Efforts
Outreach to office building management companies and event production companies will
be focused on affiliate marketing, offering them tools and support to upsell floral and plant
installation and care to their tenants. This would benefit them at 7% per annual contract signed.
Many business organizations have seminars, conferences, and events which may call for decor.
Franchisees will be encouraged to join these networking groups and business organizations,
making themselves available to provide arrangements as needed in exchange for sponsorship of
42. FINAL 42
events, warm leads, and allowing the hosts to raffle or auction off the flowers as a treat to
attendees.
Implementation: who, time frame, cost.
● Similar to local business outreach, the marketing team will provide outreach to 200 office
building management companies and event production companies within a 10 mile
radius, and promotional materials will be focused on the affiliate marketing opportunity
which will offer them tools and support to upsell floral and plant installation and care to
their tenants.
○ This would benefit them at 15% per annual contract signed. With an average
monthly corporate subscription of $220, $2640 annually, this provides $528 per
contract.
● Many business organizations such as The Better Business Bureau have seminars,
conferences, and events which may call for decor. Franchisees will be encouraged to join
at least 2 of these networking groups and business organizations, making themselves
available to provide arrangements as needed in exchange for sponsorship of events, warm
leads, and allowing the hosts to raffle or auction off the flowers as a treat to attendees.
Evaluation: metrics, time frame, evaluation.
● With 200 potential affiliates, the marketing team will develop outreach materials such as
fliers, brochures, postcards and send them out. This will be initiated in tandem with the
franchisees’ grand re/opening with 25 new businesses being reached out to per quarter
thereafter.
○ With an initial outreach of 200 businesses, Floral Delights will seek a conversion
rate of 2.5% giving the franchisee 5 subscriptions.
43. FINAL 43
○ Of the additional and ongoing 25 possible affiliates the marketing team reaches
out to quarterly, the objective is a conversion rate of 4% giving the franchisee at
least 1 new subscription quarterly.
● Word of mouth marketing via direct sponsorship and interaction with fellow business
owners should ideally net a conversion rate of 5% per year of those businesses they come
in contact with. These numbers will range wildly depending on factors such as access,
availability of opportunities, location, and more.
Control: how, when, by whom.
● The number of potential affiliates to reach in future quarters after the re/opening will
double per each 0.5% under the initial push for a minimum 2.5% (25 affiliate corporate
subscription conversions) target until it is met.
Direct E/Mail
Utilizing the ongoing work of reaching out to local businesses will include promotional
postcards about subscription options via a free consultation and how flowers can support their
client interactions. Promotional materials for all direct mail will be created by the parent
company and then printed and mailed directly via Overnight Prints for $7,680. This will provide
each franchisee more than 2,000 mailers to be sent annually. Additionally, by cultivating an
email newsletter and list, Floral Delights will be able to reach out to clients over time about
promotions alongside quick tips for floral care and use. These emails will be minimalistic with
three custom arrangement images for the viewer to choose and click for immediately order.
When they sign up for the newsletter or they make an order, dates will be requested about
birthdays, anniversaries, et cetera, and they will receive reminders in advance of these dates in
44. FINAL 44
order to better support their busy life. Email marketing will utilize premier Campaign Monitor
with support for the marketing staff at the parent company which will come to $4,800 annually.
Implementation: who, time frame, cost.
● Utilizing the ongoing work of reaching out to local businesses will include promotional
postcards about subscription options via a free consultation and how flowers can support
client interactions. Promotional materials for all direct mail will be created by the
marketing team and then printed and mailed directly via Overnight Prints for $7,680.
This amounts to each franchisee indirectly sending more than 2,000 mailers annually.
● Through the cultivation of a monthly email newsletter and list, the Floral Delights
marketing team will be able to reach out to clients over time about promotions alongside
quick tips for floral care and use.
○ These dates will be requested of the client and added into an automated system to
prompt an initial email reminder three weeks in advance, and a personal telephone
call a week in advance asking to assist in their plans for any upcoming special
day.
○ The minimalistic emails will feature three custom arrangement images for ease of
immediate online ordering.
● When a customer signs up for the newsletter or they make an order, an automated email
will request dates about birthdays, anniversaries, et cetera. They will receive reminders
in advance of these dates in order to better support their busy schedules. Email marketing
will utilize premier Campaign Monitor with support for the marketing staff at the parent
company which will come to $4,800 annually.
45. FINAL 45
Evaluation: metrics, time frame, evaluation.
● Once a local list of 800 potential corporate clients has been developed, the marketing
team will develop outreach materials (fliers, brochures) and send them out. This will be
initiated in tandem with the franchisees’ grand re/opening with 50 new businesses being
reached per quarter thereafter.
○ Because the profit objective is to have royalties that average $10,000 per
franchisee per year, and the price average per monthly subscription is at $220 the
objective is to have at least 50 active subscriptions at any given time.
○ With an initial outreach of 800 businesses, the objective is a conversion rate of
6.25% giving the franchisee that minimum 50 subscriptions desired.
● Floral Delights will strive to reach 5,000 enewsletter subscribers by end of year one,
encouraging franchisees to sign up 50 clients annually and 10,000 by the end of year two.
The marketing team will review these numbers and provide support to franchisees as
needed to help increase as required.
○ With an average open rate of 23.3% and click rate of 3% for creative services and
agencies, Floral Delights will strive for a minimum 12% open rate and 1.5% click
rate by the end of year one with the expectation of 17.5% and 2.25% respectively
by the end of year two (MailChimp, 2016).
○ If 30% of all clickthroughs convert to a purchase, then there is an expected 25
purchases resulting from the newsletter in year one and 75 in year two
(MailChimp, 2016).
46. FINAL 46
Control: how, when, by whom.
● The number of local businesses reached in future quarters after the re/opening will double
per each 1% under the initial push for a minimum of 6.25% target until it is met.
● Alongside the subscription to utilize the Campaign Monitor email services comes their
support staff capable of providing support with redirection and design of the newsletter to
increase conversion rates as needed.
○ Campaign Monitor should be consulted if open rates are less than 10% or click
rates are less than 1% by the end of the second quarter in the first year, and 15%
and 1.75% respectively by the end of the second quarter in year two (MailChimp,
2016).
Website
Implementation: who, time frame, cost.
Visual is a key component, therefore a floral gallery will be prominently accessible from
each web page with submissions from franchisees. There will also be a separate page for both
affiliate offers as well as those interested in franchisee possibilities. The website will provide a
separate page for corporate clients with a focus on free consultations for subscriptions with
installation and maintenance components, as well as the weekly donation drawing
announcements. The individual client’s page will offer highlights of the domestic subscription,
installation, and maintenance offers as well as weekly promotions. The website blog will
schedule routine spotlight articles about different franchisees and their activities. Website
design, setup and maintenance including SEO support and continued development will utilize
Executionists.
47. FINAL 47
● Once code complete and alpha tested, the website will be launched in beta mode for two
months with a first year budget of $20,000. Website design, setup, and maintenance
including SEO support and continued development will utilize Executionists and costs
$12,000 annually.
○ All marketing materials will include the website address and all email will have a
clear call to action for visiting the website for an exclusive offer.
Evaluation: metrics, time frame, evaluation.
● The website design and marketing team at Executionists will draw upon metrics via
heatmaps and user generated actions and feedback analysis to provide the marketing
team with direction for any necessary improvements within the first month of closed beta
testing (Centercode, 2016). The second month will provide a round of open beta testing
the site and subsequent changes.
● Before a full launch the marketing team will need to ensure several key milestones
including a minimum of 5,000 interested participants for the closed beta testing with a
wide range of users having varied cultural backgrounds and therefore unique perceptions.
Testing must be conducted over varied platforms, browsers, and connectivity. Input on
experiences and impressions of the website, and overall serverload capacity testing is
important to evaluate (Centercode, 2016). The sample size will need to double for the
open beta testing period.
● Once launched the website will seek to obtain 20k visitors monthly by the end of year
one and 50k by the end of year two with quarterly assessments of traffic and conversion
rates.
