Fantastic Florals, Inc., imports only handmade flowers made by Indonesian artisans. The firm’s main office is in Anytown, Oregon, and has a customs house broker in Seattle, Washington to deal with related matters.
FFI quality items are unique and exclusive. FFI’s target consumers are women who have upper-middle incomes to high-end. FFI’s competitive edge lies in the fact that its products are entirely handmade. The firm hopes this will attract people who are passionate about the craft of silk flower production. FFI products are mostly made from silk flowers, and some people purchase the product for their own use.
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 expects to sell approximately $1.1million by the end its first year of operations. FFI will also open an exclusive gift shop to sell our product at Anytown’s Third Street Public Market. This lease will last for five year.
The company plans on expanding to direct mail sales next year through being part of an established catalog targeting a similar market. FFI expects sales to reach $1.5 million by year 2. FFI expects to sell nearly $2,000,000 in its third year.
The FFI family will expand in Year 3 by adding 10 different kinds of flowers and flower arrangements. A 25-30 percent average gross margin is achievable. Annual sales growth is predicted to be 25 per cent.
1.1 Objectives
- Year 1 sales of $1.1 Million
- With a five-year lease, open gift shop in Anytown at Third Street Public Market.
- For year 2, expand into direct mailing catalogs.
- Maintain a gross Margin of 25 Percent
- Annual growth rate of 25 %
- Add 10 varieties of flowers to your product line and create a new product category in Year 3.
1.2 Mission
FFI’s mission is to become a recognized importer of artisan quality silk gift items in the United States. FFI guarantees customer satisfaction at all times and offers friendly service.
FFI’s purpose is to increase customer appreciation of handmade silk flowers and other silk products and to provide customers with beautiful unique artistic decorations.
1.3 Keys to Success
Fantastic Florals Inc. is looking for key success factors
- Product quality.
- Customer service.
- Access to manufacturers.
- Controlling fixed and variables costs in the first two years.