Fantastic Florals, Inc. imports only handmade flowers from Indonesian artisans. The company’s main office can be found in Anytown Oregon. There is also a Seattle customs house broker who can assist with any related issues.
FFI quality products have a unique and exclusive appeal. Its target customers are women with high-incomes and middle-class families. FFI’s competitive advantage is the fact that all of its products are handmade. This makes them stand out from other competitors. FFI hopes to attract people who enjoy the art of making silk flowers. FFI products consist mainly of silk flowers and hair accessories. The company considers itself to have a place in the retail market for gifts, though some consumers may choose to purchase the product.
For the starting year, the company plans to attract manufacturer reps and retailers to distribute the products by attending the Silk trade show in Chicago, Illinois. This trade show allows buyers and suppliers to meet and make deals to sell silk flowers and other products. FFI projects that sales will reach $1.1 million within the first year. FFI will open an exclusive gift store for its product in Anytown, at the Third Street Public Market. The lease term is five years.
For the following year, the company plans to expand to direct mail catalog sales by being in an established catalog, with a similar target market. FFI predicts $1.5 million in sales for Year 2. FFI projects sales of nearly $2 million in the third year. This includes both direct sales through suppliers and catalogs.
FFI’s flower family will increase in Year 3, adding 10 more varieties of flowers and arrangement. It is realistic to expect a gross margin of between 25 and 30 percent. The annual sales growth rate is estimated at 25 percent.
1.1 Objectives
- Year 1 sales over $1.1 million
- Open gift shop in Anytown on Third Street Public Market, with a five year lease.
- Expand into direct mail catalogs for Year 2.
- Maintain gross margin of 25 percent.
- Establish annual growth rate of 25 percent.
- In Year 3, expand product range by adding 10 new types of flowers and arrangements to the flower family
1.2 Mission
FFI’s mission is to be a well-respected importer of high quality, artisan silk gifts in the United States. The company is committed to customer satisfaction and strives for friendly service.
FFI’s purpose is to enhance customer appreciation of handmade silk flower and other silk products, and to offer customers beautiful and unique artistic decorations.
1.3 Keys to Success
Fantastic Florals Inc. is looking for key success factors
- Product quality.
- Customer service.
- Access to manufacturers and distribution channels.
- Controlling fixed as well as variable costs during the first year.
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