Harry Laurell started D-Bamboo, a home and garden shop, in 2007. While sales were initially strong, by 2009 sales had dropped 40% due to increased competition and ineffective marketing. The shop faces issues like inadequate space and sunlight that increase costs. However, relocating could result in large customer losses. With improved promotion and utilizing its established customer base, D-Bamboo has potential to continue growing at its current location.

1. Presented By: Navjot Kaur
Shubhraj Sadyora
Rohit Sood
D-BAMBOO
HOME
AND
GARDEN SHOP

2. INTRODUCTION
• In August 2007, Harry Laurell started D-Bamboo in Chaguanas, Trinidad.
• Only one-stop home and garden shop in the area.
• Reputed for sale of high quality plants and agricultural supplies at reasonable prices.
• Totally funded by the owner for TT$75000.

3. BACKGROUND
• Harry went through several jobs
• Aspired to be an Entrepreneur
• Started a small restaurant in 2002 with two friends,
which lasted just 7 months
• Opened a Decorating Shop with another friend, the
shares of which were later sold by Harry
• Financial Partner for well established plant shop

4. • Unfulfilled in the corporate world
• Quit as Marketing manager of the roofing company in October 2006
and later came up as full time partner in the plant shop with a friend
• Pursued training courses in plant science and in agri-business
• Eventually sold the shares of his business
• Used the funds to start D-Bamboo on August 24, 2007

5. ISSUES
• Reduction in Sales by 40 % in October 2009
• No marketing research conducted
• Competition increased in early 2009
• Similar Goods were sold at slightly lower prices by the competitors
• Ineffective Marketing Techniques

6. • Needs better location
• Lack of space to display plants
• Inadequate sunlight which increased the cost of business
• Stunted growth of seedlings and plant losses increased by 25%
• No investments

7. FACTS
• Location:
I. Second-busiest area in city
II. Easily accessible by customers
III. Low visibility
• Capital expansion decisions considered
• Planned to erect a large floodlit sign but it was costly
• No debt capital
• Relocation:
I. Outside the city: 80% loss of customers
II. Within the city: 50% loss of customers, 25% possible retention.
III. Reduction in plant losses: 30%

9. PLACE
• Located in Second busiest area in Chaguanas
• At Ground floor of a three-story building
• Five minute walk from a large shopping Centre
• Three small food outlets and a computer sales and repair shop in the same building
• Popular and heavily visited gas station across
• Recessed at an angle from the roadside

10. PRODUCT
• The Product mix of D-Bamboo consisted of:
I. Medium to low-end plants
II. Gardening supplies
III. Seedlings
IV. Chemicals
V. Exotic Plants
VI. Turtles and Aquarium
• Harry deliberately chose not to cater to high-end market and carry
expensive items for the following reasons:
I. Turnover was very slow
II. A lot of capital was required

11. PROMOTIONS
• Promotional budget restricted to $750
• Discounts on seedlings
• Giving sweets and balloons to children
• Very limited marketing on its inauguration
• No shop sign until second year
• Reluctance to spend on advertisements
• Free plants to every customer who visited during first month
• Flyers at nearby Plaza and at surrounding companies two weeks before the grand opening

12. PRICING
• Initially the markup was kept between 25-50 %.
• The updated markup strategy was as follows:
I. Plants: Less than $20 – 100%.
II. Plants: More than $ 20 - 50%.
III. Shop items – 40% (First year) and 50% (After First Year).
IV. More than $150 – 35%.
• Normal markup for competitors in similar size was kept by 50-100%.
• Larger shops usually marked up their prices by 100%.
• 5% rise in price could result in decrease in sales by 7.5%.

13. COMPETITION
• Edge over major competitors
• Diversification of Products
• Initially no competitor within 10km
• No entry barriers
• Recent rivals:
I. In the radius of 1km
II. Newfangled shop to come up in December 2009.

14. FINANCIALS
• Cash Reserves: $55000
• Reduction in sales in second half of 2009
• Increase in expenses by 2-5% each year
• Expenses ranged from 50-60% of total revenue
• Eligible to get a loan from bank, double the amount of his savings
• Expectations of rise in Sale by December 2009 but less in comparison to previous years
• Expectation of rise in price of fertilizers, seeds and gardening equipment by 10%
• However, it will increase its working capital requirement

15. Exhibit 3
MONTHLY SALES AND EXPENSES
Month
Sales Revenue Expenses
2007 2008 2009 2007 2008 2009
January 19,870 37,730 10,531 20,752
June 34,945 43,475 18,521 23,911
August 25,650 22,910 13,595 12,601
October 34,865 36,235 21,820 17,781 19,205 12,001
December 79,945 88,290 65000 47,967 54,740 35,750

16. 34,945
43,475
18,521
23,911
79,945
88,290
65000
47,967
54,740
35,750
2007 2008 2009 2007 2008 2009
Sales Revenue Expenses
AmountinTTDollars
Sales Revenues and Expenses
Trend: Sales Revenue and Expenses
January June August October December

17. SOLUTION
• Exclusive products.
• Promotions via Flyers and Posters.
• Special facilities for the customers.
• Increase in Customer’s Loyalty.
• Customer from outside the Chaguanas area.
• Variety in types of products offered.
• Strategy for buying materials from small suppliers.
• Transfer of objective from Sales Maximization to Profit Maximization.

18. SUGGESTIONS
• It must stay at its existing location. It can use hoardings to increase its visibility.
• It must not promote only on special occasions but on regular basis.
• They must focus more on items costing less than Rs. 150 as they carried more margins.
• It must raise funds to expand its business and spend more money on promotional
activities.
• He must take more risk by diversifying his reach.
• Reposition his business at the same location.
• It must start providing the plant rental facility as people approach him for such services.
• Instead of spending over $85000 for setting up new shop, it must increase its budget for
promotional activities to increase its sales which will be enough to cover its loss of
seedlings.
• In addition, to save the loss of plants, it can approach the building owner to take Terrace on
rent, to keep his plants for sunlight on alternative basis.
• It must choose to continue with its current product mix as it is one of the Critical Success
Factors (CSF) of D-Bamboo.

19. CONCLUSION
• The measures taken by Harry brought him good results in the previous years.
• However, he must take certain measures for the growth of his business.
• Even though there are certain demerits of D-Bamboo’s current location, but it has
many benefits such as customers loyalty, easy accessibility.
• D-Bamboo still has the chances to grow itself at the existing location if the suggested
measures are applied in an efficient manner.

20. ANY QUERIES?