Do you need to send (lowers for a relative\'s birthday in Germany, to celebrate

Question

Do you need to send (lowers for a relative's birthday in Germany, to celebrate your daughter's first big business presentation in the United Kingdom, or to congratulating your neighbors across the street on the birth of their new baby? One call to 1-800 FLOWERS does it all-floral arrangements individually created by the nation's top floral artists, hand-delivered the same day at the peak of freshness and perfection whether your loved ones are in Australia, the Philippines, Mexico, it Hawaii, Alaska, or Puerto Rico. So how do they do it? After opening his first retail store in 1976, Jim McCann, chief executive officer of 1-800-FLOWERS, built a chain of 14 flower shops in the New York metropolitan area before acquiring the I-8OO-FLOWERS telephone number in 19% continuing to grow his business under that name. His understanding of his customer base and market helped him create a reliable brand his customers could trust. He knew that when selling such a perishable product, efficient access and distribution is critical to success. The company's sophisticated fulfillment system includes its BloomNet network of 1,500 florists throughout the United States, including 35 company-operated stores and 85 franchised stores, as well as distribution and warehouse facilities. BloomNet partners are selected based on their commitment to quality and service and strictly monitored by 1-800-FLOWERS-part of its focus on customer service McCann extended his business into other channels, going online in 1992 and opening a Web site in 1995. He maintains strategic marketing relationships with a number of online services, including America Online, Microsoft Network (MSN), and Yahoo. The company's third-party vendor-direct program allows for easy and efficient delievery of gourmet foods, candies, and gift baskets, among other items. Its collection of brands includes home decor and garden merchandise sold under Plow & Hearth; premium popcorn and other food gifts sold under The Popcorn Factory; chocolates from Fannie May, Godiva, and others; and baked cookies and desserts from Cheryl & Co. Headquartered on Long Island, New York. 1-800-FLOWERS, (http-//WWW 1800flowers.com) is today one of the most recognized brands in flower and gift retailing. Available online 24 hours a day, seven days a week, customers can also visit a company-operated or franchised store. The Web site also allows customers to send free virtual flowers-building their own virtual bouquet complete with flowers, accents a beautiful vase, and even a personalized message. 1 -800-FLOWERS maintains a comprehensive quality assurance program that in corporates ongoing blind test orders, telephone surveys with customers and recipients, in-store and mail survey's, and customer service reports. With customer assured of a 100 percent satisfaction and freshness guarantee on all products and services company's fortunes should continue to blossom. Critical Thinking Questions Describe the unique challenges faced by companies that sell highly Perishable products. How does I-8OO-FLOWERS meet and address those challenges? What other types of distribution or product access should the company consider?

Explanation / Answer

1. The unique challenges that faced by companies that sell highly perishable products will mainly be the quality and the time taken for delivery. The Main concern will be the availability of flowers as per Customer's choice. It will be impossible for the company to stock all the varieties of flowers that are on the website of the 1-800-Flowers. Since they are perisbhable products, they will have to maintain Just-In-Time Inventory and will have to follow a First-In-First-Out methodology for using Inventory. Inventory Maintenance and Meeting the demands of customers on time with quality flowers will definitely be a great challenge for companies that operate business based on perishable goods.

2. 1-800-FLOWERS has grown as an International brands by crossing borders. The company has many franchises and has partnered with many smaller companies to service customers. The company has a Bloom Network of 1500 florists across US and also have partnered with many online services and third Part Vendor. By having a strict marketing relationship with all of them, the company has been able to overcome the challenges of a perishable business.

3. The main type of distribution or the product access that the company can consider are mainly the network distribution which forms the key distribution channel for 1-800-FLOWERS. Since the company already has online services and virtual flower gifting services these gives access to more flowers for the customers.

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