King Louis Flowers & Plants, Inc. is a company which grows, supplies, and sells different flowers and plants around the country. The company is considered the market leader in the industry with 60 to 70 percent of the market share because of it being a large supplier all over the Philippines and are the biggest producers of cut flowers; though in the retail business, because of the competitors, King Louis owns only 20 percent of the market shares.
To start the marketing plan, its current primary markets, wholesale flower shops, retail flowers shops, institutions, provincial flower shops, and those for flowering pot plants, as well as its secondary market, event planners, will be expanded through the different opportunities found for the brand. These opportunities are to get in the online marketing industry for people who may place a customized order online and have it arranged by King Louis, and to take part in exclusive tie-ups not just with event companies/planners but also in hospitals, hotels, and funeral chapels.
With these, the company will be able to increase their sales and profit as well as its brand loyalty from consumers integrated with an increased awareness of the brand. Though there may be weaknesses and threats to the brand, these can be managed once the strengths such as Baguio’s cool weather producing beautifully bloomed flowers, large flower farms in places strategically located, and the company’s imported flowers are penetrated into the market.
The company’s current marketing strategies such as to make the best use of and meet the market demand for each product though keeping close attention to market trends and absorptive capacity for each as well as tailoring the production volume to its estimated demand, word of mouth, and publicity through media will be kept for the new marketing plan and will be added by subtle advertising, PR, and sales promotions and campaigns. The goal of the company is to become the market leader in the Philippines in both the retail and wholesale industry.
The objectives, on the other hand, are grouped according to the length of time before it is aimed to be realized—short-term, medium-term and long-term. As a short-term objective, the company wishes to increase the people’s awareness of the brand and be posed as a threat to its competitors. In 2-3 years, the objective of the company is to gain at least 25% of the market share through online marketing. And by 4-5 years, King Louis Flowers and Plants, Inc. shall have majority of the market share in the Philippines.
The Marketing Mix Strategies and Programs is divided into five sections: Market Targeting, Product Development/Innovation Program, Pricing Program, Sales and Distribution Program and Marketing Communication Program. From targeting males and females from the cocio-economic classes A, B, and C1, the new target market of the company will be narrowed down and specified into males from the socioeconomic class AB whose age range from 25 to 35 years old. The target market is primarily where the rest of the strategies revolve from.
The flowers from King Louis Flowers and Plants, Inc. are said to be distinct from other flower companies in that the flowers are grown in a cold conditioned farm which is located in Baguio. Because of this, the flowers have a significant bloom and truly possess rich colors. The pricing of the flowers may be on a per-stem, per-dozen basis or quantity of purchases basis. Sales and Distribution of the flowers are inclined with how the flowers were grown which, as indicated earlier, is in a cold condition.
Thus, air-conditioned vans are used for the distribution of the flower products. Lastly, the Marketing Communication Program primarily aims to increase the target market’s awareness of the brand as well as keep the current customers loyal to the brand. II. CURRENT MARKETING SITUATION ANALYSIS A. Industry Study King Louis flowers cater to all sorts of events from Mother’s Day to Christmas, and even for birthdays, weddings, graduations and funerals. There is a massive sales increase during All Souls’ Day, Mother’s Day and Christmas.
There is also an immense sales increase during December and January, because these are the months when most couples prefer to get married. The most climactic sales increase occurs in February, specifically on Valentine’s Day. King Louis is currently targeting males and females from the socio-economic class A, B, and C1. They are targeting not just those who are married, but also those who are single or in a relationship- from college students to the working class, especially the higher-income earners. They sell flowers from cities to provinces all over the country.
B. Current Product/ Brand Situation * Brief history of the product/ brand King Louis Flowers, brand name used, is coined after its corporate name “King Louis Flowers & Plants, Inc. ” Since the planting materials that they use mostly originate from Europe, the founders thought of one with a European connotation to make out the type of flowers that they grow and supply to the market. The word “king” also signifies superiority. They wanted to imply superior quality products, which the company continues to maintain.
The company usually takes the lead in supplying new and different varieties of cut flower products that are launched to the domestic market. Some of the products that King Louis pioneered in growing in the Philippines includeliliums, carnations, alstroemerias, bells of Ireland, zanthedeschias, gerberas, and new varieties of spray chrysanthemums. * Relevant market/ definition of the market or market segment targeted (primary and secondary) King Louis Flowers & Plants, Inc. ’s primary markets are wholesale flower shops, retail flower shops, institutions, provincial flower shops, and those for flowering pot plants.
They are targeting the wholesale flower shops that are based mostly in Dangwa, also called Dimasalang Market, which is a famous fresh flower market in Sampaloc, Manila. Wholesale flower shops are those that engage in bulk buying and then sell them mostly from other parts of Metro Manila, neighboring cities and other provinces, and in some cases they also do flower arranging. The retail flower shops, on the other hand, are those that are mostly doing flower arrangements for weddings, birthdays, and special occasions. These shops are located all around the Metropolis. Both wholesale and retail flower shops do flower arranging.
King Louis also targets institutions like hotels. They are the ones who purchase from bigger growers and wholesalers by directing their flower requirements to them. For flowering pot plants, the markets are the different plant shops and garden shops in Metro Manila and other key provincial cities. King Louis Flowers & Plants, Inc. ’s secondary markets are event planners- those who have occasional special orders for the events that they’re handling e. g. weddings, birthdays, and funerals, and walk-in customers- those who drop by their market outlets and retail shops. * Market positioning vs. roduct positioning (what product really is vs. consumer perception) Flowers grown by King Louis are generally of superior quality than those that are normally offered locally. The flowers are grown in their farms in Baguio which is a great advantage since those flowers that they supply necessitate cooler climate for them to grow better. Also, because of the availability of technology, the company sometimes forces flowers like tulips to grow inside a walk-in cold room and make it bloom in time for Valentine’s Day. Most of their customers share their experience in managing the company’s products.
They associate King Louis Flowers as finer quality products with better and longer vase life. * Past and current marketing strategies vis-a-vis objective and goals In terms of growth strategy, the company has been able to raise their customer’s interests by introducing a new variety of flowers to the local market. They first identify those with potential demand and confirm their growing capability under the local conditions. They then test whether the local market will accept it or not. If the company sees that the demand for that particular variety is growing, they will produce more of it depending on the growth of the demand of the market.
King Louis Flowers’ marketing strategy is to make best use of and meet the market demand for each product. They are very keen in keeping close attention to market trends and absorptive capacity for each one. They aim to tailor their production volume to the estimated demand. In effect, they would be able to optimize sales and drive the company’s development. Their most common advertising strategy is simply through word of mouth. They also gain publicity through media, such as television or radio interviews, and newspaper publications.
The eight retail shops of King Louis are strategically located in areas where there is more traffic, such as malls or main thoroughfares. Since they also cater to different events, they join bridal fairs that are usually held in malls or conventions. C. Competitive Situation * Major players in the industry and direct competitors, their market shares, volumes, marketing efforts King Louis is the market leader in the business. They have about 60-70 percent of the market shares because they supply flowers all over the Philippines, and they are the biggest producers of cut flowers.
They are also the most reliable suppliers, since their flowers have superior quality. When it comes to the wholesale market, some of the major competitors of King Louis is Puentispina Orchids and Tropical Plants Inc. For some flowers like the liliums, gerbera, and the like, King Louis has more advantage because they grow them in a cooler climate, compared to Puentespina’s flowers, which grows in Davao. There are also other growers – there are several hundreds of smaller growers, mostly backyard farmers in Baguio, Benguet, Batangas, Cavite, among others, producing various types of flowers, each specializing in one or two crops.
In the 90’s, imports of Chrysanthemum flowers were substantial from Malaysia. The local growers gradually eliminated this through the increase in production of this crop. Imports of flowers continued through the years but with limited volume and only for special type of flowers for the higher end market. In the past 3 years, imports from China have been increasing, specifically for liliums, carnations and gerberas. For the retail business, there are numerous competitors, though King Louis still has 20 percent of the market shares. STRENGTH
The cool weather in Baguio allows King Louis produce beautifully bloomed flowers. There are large flower farms strategically located across Baguio and Palamalso, Bukidnon. Aside from the locally produced flowers, King Louis also imports flowers from (where) to give customers different options. WEAKNESS The distance of the farm from the main office and stores greatly affect the delivery of the flowers. It takes a long time to deliver and the appearance, quality and freshness of the flowers when it gets to the stores are compromised by the handling of the flowers during delivery. OPPORTUNITIES
King Louis may take advantage of online marketing wherein a customer may place a customized order online, and King Louis will arrange and deliver the flowers. King Louis may take part in exclusive tie-ups with event companies, hotels, hospitals and funeral chapels to be the only flower shop in the vicinity. THREAT Natural calamities have a great effect of the production and delivery of flowers, especially since the farms are located in Baguio, a landslide-prone area. Landslides and other natural calamities may prevent delivery to Manila and may even destroy the flowers before they are arvested. III. SWOT MATRIX IV. GOALS AND OBJECTIVES Statement of the goals of the firm for the product/brand King Louis aims to be the market leader in the Philippines and be able to penetrate the flower market in other Asian countries through online marketing; and be pioneers in making the Philippines, particularly Baguio a good source of quality flowers and plants. Short-term objectives (for the next fiscal year) King Louis aims to increase its brand awareness and be recognized as a threat to The Flower Farm, Holland Tulips, and The Flower Shop, the competitors leading the market.
This will be achieved by having an aggressive advertising campaign and by being the best source of numerous kinds of flowers. Medium term objectives (2-3 years) King Louis will work toward increasing its market share by at least 25% through online marketing. Venturing into online marketing to increase market share and to boost sales from clients abroad. The King Louis Flowers and Plants website would be able to communicate with potential patrons abroad and inside the Philippines; and be able to establish a relationship with the overseas Filipinos to help in successfully expanding King Louis’ target market. Long-term objectives (4-5 years)
King Louis aims to hold majority of the market share and become the market leader. With the success of the website, and being able to tap into the market abroad and consumers in the Philippines who prefer online transactions, its objective is to have expanded their target market, and in effect, increase the market share by an overwhelming percentage and eventually become the market leader of the industry. If there are enough connections established with the clientele abroad and in the Philippines, the business may grow and explore franchising in the country and bringing the brand to nearby Asian countries.
V. MARKETING MIX STRATEGIES AND PROGRAMS A. MARKET TARGETING In order to thoroughly serve the market that the company is targeting, it must be redefined into a more specific one wherein the marketers could fully grasp the right strategies for the target market. From only targeting companies and shops, King Louis would expand its market to having a new size of 20,000 potential customers, be it walk-in or delivery clients, and 50 potential retailers, meaning companies which would choose King Louis as their official supplier of flowers for their events and activities.
While the current target market of King Louis are mainly wholesalers and flower shop owners, the marketers decided to have a more defined and specific target market. The new target market for King Louis would be males and females aged 25 to 35 belonging in the socio economic classes AB who work and have monthly incomes of averagely Php 80,000 and above, single or married, and are college graduates up to those who finished a higher degree. These consumers are thoughtful, generous, caring, and believe that flowers can make people.
They like to give special gifts to people and consider personalized or unique presents extraordinary. In addition, they stroll around malls whenever they have time. They usually have busy schedules because of their career so they are deemed to be convenience shoppers; therefore they buy what would they would consider expedient for them; hence they are not very price-sensitive. They live by themselves or with their family (wife/husband and children) thus they are considered as people who live independently.
Lastly, these males and females are experimental in terms of their ways to show their love and appreciation and everything they do, but they always keep a traditional side of them who still believe that flowers are meaningful to people especially when given by someone special or honorable. When it comes to the purchasing and usage behavior of the target market, there are a few that the marketers would like to emphasize.
The new target market buy flowers for people in their lives during special occasions and they buy them in malls or flower shops/stalls or even call the flower shop for delivery and for special orders. Finally, this market seeks that when people are given gifts, especially flowers, it would make them happy no matter how they feel beforehand. B. PRODUCT DEVELOPMENT/INNOVATION PROGRAM What makes King Louis unique (USP) is that the flowers grown and sold have better colors and are in full growth because they are grown in a cold climate (Baguio).
The marketers want to position the brand as a company offering flowers for every occasion – from simple monthsaries to grand weddings. These flowers are also proven to be fresh and fully-bloomed, as well as lasting longer than other flowers. There are a number of product features that the brand’s flowers have and these are: there are a lot of colors and kinds to choose from, they are long-stemmed, fully-bloomed, easy to maintain, and lasts at an average of 7 days depending on the style of the flowers and as compared to other brands which only last for averagely 2 days.
King Louis offers a variety of styles, designs, colors, and sizes when it comes to how the flowers are packaged. The packaging will depend on the purchase (bouquet, singles, for table design, etc), occasion or purpose, and the preference of the buyer. However, there are still mandatories for the packaging. The mandatories include an accent, such as a ribbon or sticker, and the King Louis logo. Aside from the new target market and a more defined image of the brand, the marketers would also expand the service to different industries such as retailing and online shopping.
This would require longer time and huge efforts but with the right target and brand positioning in mind, King Louis will be able to step up even above their competitors. Another significant marketing decision is to enhance the brand image of King Louis by reiterating that it is the brand you can trust when it comes to flowers whatever occasion it may be. The brand image would be further enhanced through the different advertising and marketing executions that the team will create.
Adding a slogan or tagline to the brand name would also be a good way to deliver to the consumers the image that the marketers want them to think and feel about the brand. Improving the logo of King Louis is also another marketing decision that the team will do because the logo symbolizes what the brand offers as well. The logo would be revamped in a way that would not just attract the target market but those that this target market will choose to give the flowers to. One of the most important bases in a company is its customers therefore they should always be taken care of.
This is why the marketers decided to increase the customer service of the company by providing more tools for feedback such as surveys or notes for comments found inside the flower shop, social networking accounts where customers can type in their comments and opinions about their purchase, and a standard contact number for orders, deliveries, and inquiries. Consumers must be able to be heard because when you understand the customer, you understand what your brand can offer as well. C. PRICING PROGRAM Below are the prices for the flowers sold at King Louis flower shops: LOCAL| IMPORTED| | | Potted Flowers| For Christmas Season| | |
Flower Name| Price (in Php)| Flower Name| Price (in Php)| Flower Name| Price (in Php)| Flower Name| Price (in Php)| Gerbera| 150/dozen| Zantedeschia| 250| Poinsettia| Small – 150Medium – 175Big – 250XL/Mother plants – 600-800| Hyacinth| 120/stem| Lilium (Oriental)| Per stem:Short – 60Medium – 80Long – 90Extra long– 120| Mums| 120| | | Peonies| 250/stem| Asiatic Lilium| Per stem:Short – 45Long – 60| Hydrangeas| 250| | | Tulips| 75/stem| Roses| Per dozen:Short – 150Long – 250| Engish Ivy| 150| | | Ecuador Roses| 120/stem*250/stem*during Valentine’s day| Carnations| 180/dozen| Tulips*only grown during February| 250| | | Hydrangeas| 250/stem| Cabbage Kale| 90/pc| | | | | Delphinium| 180/stem| Hydrangeas| Small- 40Big – 60| | | | | Freesia| 90/stem*don’t sell these regularly; only for special orders| Alstromeria| 250/ dozen| | | | | Gypsophila| 65/stem| Snap Dragon| Per dozen:Short – 150Long – 180| | | | | | | Bells of Ireland| 150/dozen| | | | | | | Hypericum| 180/dozen| | | | | | |
Mums| 120/dozen| | | | | | | Anastasia Mums| 250/dozen| | | | | | | Amaranthus| 120 for stems of 10| | | | | | | Agapanthus| 120/dozen| | | | | | | As what can be observed from the pricing table above, King Louis flowers are priced according to size and either per stem, dozen or quantity to be purchased. Also, flowers such as the Tulips, Ecuador Roses and Freesias are seasonal products of the company because the prices of each or period of selling are not regular compared to other flowers which are readily available in the flower shop daily. Potted tulips are only sold in February and Freesias aren’t offered to customers unless personally ordered.
Compared to normal days, Ecuador Roses has a higher price during Valentine’s Day because this is a flower that sells the most during this season. The company takes advantage of this fact by increasing the price of the products that will give back higher profit for them. Throughout the year, the company will still continue with its strategy of setting the price higher for seasonal flowers mentioned above to maintain D. SALES AND DISTRIBUTION PROGRAM King Louis Flowers & Plants, Inc. targets wholesale flower shops such as Dangwa, which is located in Sampaloc, Manila and is a known fresh flower market, and retail flower shops that invest on flower arrangements for special occasions such as weddings, corporate events and even birthday celebrations.
Compared to provincial flower shops, King Louis Flowers & Plants, Inc. expects higher sales from targeted wholesale flower shops and retail flower shops. To be more specific, the company expects greater income from the wholesale and retail flower shops in Metro Manila compared to the provincial areas such as Baguio City. This is because the company’s flower farm is located in provincial areas where it is near to other prospect customers or markets who may have alternative flower shops to buy from whereas the target market in Metro Manila have less options, and thus, will patronize the company that provides them with the best quality product that they need.
King Louis Flowers and Plants, Inc. keeps in close communication with their planting material and equipment suppliers from the US, Holland and other countries for improved and updated farming technologies in its operations such as the use of plastic roofing, drip irrigation and sprinkler systems, supplementary lightning, and cold storage facilities. In line with this, since the fresh-picked flowers are accustomed to the cold condition in Baguio, King Louis Flowers and Plants, Inc. has acquired air-conditioned vans for the distribution of its flower products to provide appropriate conditions to the plants and flowers in maintaining high quality products.
Aside from selling to wholesalers and retailers, the company has also ventured into exporting its products to foreign countries such as Japan and Netherlands. Although they encountered difficulties in meeting these countries standards of quality, which may be different from that which is expected from its market in the Philippines, the company still pushed through with the exportation. Its owner, Mr. Chatto, believed that the company has distinct and great advantages to compete in the global market because of its cost in production, low benchmark, competitive labor market and the geographic location of the country which is, as he puts it, “…strategically located to those cut flower and foliage importing countries such as China, Korea and Japan. With quick rising of cost of fuel, labor and energy prices, it would seem more practical for these countries to import than to maintain an expensive production area. Offices/branches of King Louis Flowers and Plants Inc. are located in the following areas: * Manila Seedling Bank, Quezon Ave. ,Ext. cor. Edsa, Quezon City * SM Megamall, Pasig City * Market! Market! , Taguig City * 14-C Buygaan St. , La Trinidad, Benguet * Km. 3, Asin Rd. , Baguio City, Benguet * Marquee Mall, Pampanga * TriNoma, North Avenue, Quezon City * YMCA, Upper Session Road, Baguio City * SM Baguio, Baguio City * CPG Avenue, Tagbilaran City, Bohol E. MARKETING AND COMMUNICATION PROGRAM Advertising Program Objectives
To increase awareness among non-consumers and encourage the target market to patronize King Louis. Target Audience The target audience and the demographics and psychographics would be the same as indicated in the market targeting. Those belonging to socio eco class AB, ages range from 25-35 years old. Creative Approach Advertisements and executions will have minimalism and sophistication as the theme. The QR code for King Louis will be included in the ads. Material requirements Print ads that are consistent with the theme, with the QR code linked to King Louis’ website incorporated into the ads. Other Advertising Aids The QR code in the print ads will be maximized as it will redirect the consumer to the website.
Exhibits and involvement in expos of King Louis will also be continued to be able to reach and interact with the target market. Media Planning Print ads will be featured in magazines like Metro Society, Philippine Tatler, Preview and other magazines of the same nature during the months of January, February, March, May, June, November, December. Exhibits will be held at malls like Greenbelt, TriNoma, Serendra and malls that mainly cater to the target market’s socio-eco class during the wedding seasons; January, June, December. Sales Promotion Program Objectives To increase frequent trial by non-consumers and to strengthen current patrons’ brand loyalty. Consumer Sales Promotion Program Patrons will be provided with a loyalty card, a certain number of points will guarantee rewards and discounts. * For the consumers who use the online store, there will be promo codes, after every purchase, they can enter the code to get discounts. * For non-consumers, rebates will be offered, after a number of purchases, they will be given special passes to concerts or events. Vouchers will also be provided, with free floral arrangements as rewards. Coverage Products offered in the stores will be the inclusion of the promo. Simple floral arrangements made in the store or through the website. Promo Schedule Loyalty cards shall be available at all times for those interested consumers.
This shall also be the treatment for the promo codes online. For the rebates and vouchers, it may be availed whenever there is an event co-sponsored by King Louis or can be made available at stores during peak seasons like Valentine’s Day, Mother’s Day and the like. Public Relations Program Objectives To increase the public’s knowledge of King Louis as the go-to flower shop and a good choice for special occasions and events such as debuts and weddings. Strategies The website will be maximized as this will feature the numerous events that King Louis provided service to as well as catering to orders made online from anywhere as long as delivery is within reach.
Clients online can arrange their own flowers through the website and can pick up their flowers in the desired branch. The QR code in the print ads will increase public awareness of the existence of the website. Public Relation materials The website will be one of the most vital materials in the success of the brand’s objectives. Participation in expos will be intensified as to elicit more events to cater to and increase brand familiarity. Schedule The website will continue until it proves to be effective, necessary improvements shall be made in response to consumers’ needs, desires and behavior towards the online marketing. Expos during peak seasons shall be partaken in, to be able to have an advantage when it comes to reaching the target market.