Question

Herman wants to open a flower shop in Santa Clarita. He has the funding and plans to work by himself to save costs for the first couple of months. He approaches you and asks you to provide him some advice about his store. The following are some things he mentions.  Answer his questions but also include other information that is important for him to know as well.

Does he need a strategy? Who could be his target market? Should he advertise?

What types of product should he carry?

Where should his store be located?

Who is his competition and how can he compete?

How should his store be set up and merchandised?

Does he need a staff? How should he manage them?

How much service should he provide customers?

Can Herman create any advantages over his competition?

Answer 1

An individual who sets up a new business requires a strategy to sustain in this competitive world. Yes, of course, Herman also requires a strategy to sustain. But his strategy would depend if there are any competitors nearby, that is, if there are nearby flower shops then he should opt the price penetrating strategy, which implies he should charge either lower price by providing a discount to its customers or he should charge the price as charged by his competitors. Whereas, in another case, when there are no competitors he is free to charge higher prices initially until the competition establishes.

His target market could be adults as they are more fond of flowers than any other age group. kids and the old age group show less interest in flowers. So, the target market could be people belonging to the 20-40 age group.

He should advertise locally by means of pamphlets, posters, etc to make the nearby community aware of the opening of the flower shop in their locality.