Presented to: Sir Sikander Khan Presented by: Umair Zafir Hira Razzaq Samar Rahi Zia Ullah Zahabia Saira
Introduction They started work in early 1981 on the East Coast of the United state. Vermont Teddy bear Principle activity is Direct marketing in the gift delivery service. After ten year they became 80th fastest growing company in United states. VTB went on the stock exchange in new York to finance further expansion. VTB began a new business segment in fiscal 2001 with its send AMERICA subsidiary selling handicrafts and food stuff made by US artisans and growers.
Business Segments1. The Bear Gram service: it involves sending personalized teddy bears directly to recipients for special occasions such as Birthdays, Anniversaries, weddings, and new babies, as well as holidays such as Valentine’s Day, Christmas, and Mother’s Day.2. The Pajama Gram service: includes an item from a broad assortment of pajamas, gowns, robes and spa product delivered with free gift card, lavender bath tea an a ‘do not disturb’ sign, all in a keepsake hatbox.3. The Tasty Gram service: It provides variety of regional food specialties such as NY Carnegie Deli Cheesecake and Gino’s Chicago Deep Dish Pizza.
Business Segments 4. Calyx & Corolla: The company has arrangements with 17 growers most of which are located in Florida and California. Certain verities of fresh cut flowers are flown in from farms in Ecuador, Colombia, Thailand and Holland to the growers’ import warehouses in the United State. 5. The Retail Operation Segment: it provides two retail locations and family tours of the teddy bear factory and store. 6. The Corporate Segment: the main theme is to develop this segment that organization proactively develops opportunities in the corporate affinity market and certain wholesale markets.
Q:What kind of difficulties would Vermont Teddy Bear meet if it were to internationalize its business? Culture Differences: Pricing competition Financial and marketing recourses Brand awareness Hindrance in Building customer relationship De globalization
Q:How should the Company penetrate the foreignmarkets? By Internet: as they already had great experience of their local market to identify their customer needs focusing on customer service including last minute gift delivery and personalization they expended their contact centre. In 2005 nearly 60% of the orders were received via the internet. By Physical store: At home country they have established two major retail store which contribute 4% into total revenue in 2005. They can penetrate into foreign market with this segment but with fewer one better for them.
Q: Discuss the market potential for the six operatingsegments and Bear to Business program in India? The Bear Gram segment: This segment has great potential in India people love to celebrate Birthdays, anniversaries, weddings, and new babies, as well as holidays such as valentine day and Mother day. The Pajama Gram segment: Now a days India is one of the huge Asian market where peoples like to dressed up with pajama, gowns, etc. VTB has broad assortment of Pajamas, gowns etc. The Tasty Gram segment: with broader consumer market and strong brand name VTB also has strength to penetrate.
Q: Discuss the market potential for the six operatingsegments and Bear to Business program in India? Calyx & Corolla: People of India more than family oriented and they like to give flowers with gifts to each other on special occasions such as on wedding, parties, anniversaries, valentine’s day and on Mother day. The retail Operation segment: Many businesses in India run by retail store it is consider to be better option to operate. The Corporate Segment: it is another healthy option with this segment they keep in touch with new trend comes in whole sale market.