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Marketing Of The Retail Flower Market

Decent Essays

The retail flower market is highly fragmented. Our analysis suggests that the primary competitor for C&C is a member of FTD: 800-Flowers (Exhibit 4). Even though FTD captured the biggest annual sales market share (59%), as a worldwide member-owned cooperative, its primary revenue source is fees collected from order processing, not direct sales. Within this model, individual members of the co-op form the core production stream. 800-Flowers represents the biggest competitive challenge to C&C’s flower mail delivery business model because…...; however, despite relatively similar annual revenue numbers ($16MM and $10MM respectively) and minimum pricing model ($35/per order), 800-Flowers and C&C have disparate core competencies and value …show more content…

Other key features whose importance varies based on customer segments are price, creativity in arrangements, personal service and assistance, reliability, and selection. In general, women account for a major portion of the small volume customers as either direct purchasers or as indirect consumers, since flowers tend to be purchased for women.

Segmentation

Based on the available data, customers could be segmented based on demographics (age, sex and income combination), purchase habits, channel preferences, and specific needs. Behavioral segmentation based on purchase habits is the best segmentation from C&C’s perspective. Deeper analysis indicates that within the segment of purchases made for personal occasions, there is a notable difference in the customer behavior when comparing purchases made for bigger events such as weddings or funerals, to those made for smaller occasions like birthdays. Also, there is value in further classifying general year-round purchasers into personal and corporate clients because of the difference in their spending capacity and needs.

We have evaluated different segment options based on relevant attributes such as growth potential, accessibility, loyalty, and other criteria (Exhibit 1). For example, even though the segment of customers who are buying flowers for weddings/funerals has huge revenue potential, it is not easy for C&C to convince that segment to place a mail

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