Daisy’s Chocolate Fruit Basket
Daisy’s Chocolate Fruit Baskets (DCFB) is a premier chocolate fruit basket manufacturer and retailer. DCFB is concentrating on making these one of a kind baskets out of a wide range of high quality organic fruits and chocolates. In addition to having several flagship baskets, DCFB will also offer the option of a custom basket, allowing the customer to choose the fruits and types of chocolates themselves.
DCFB will be selling to individuals as well as companies, and independent vendors. Initially the bulk of DCFB’s business will be generated from individuals, but as time passes, a ...view middle of the document...
DCFB has very good and reliable information about the market and knows a great deal about the common characteristics of the prized customer. With this information, DCFB will be able to better understand who is served, their needs, and how DCFB can best communicate with them. DCFB recognizes that this is an evolving process that requires multiple intervals of attention throughout the year.
Market Analysis (Example 1) |
| | 2011 | 2012 | 2013 | 2014 | 2015 | |
Potential Customers | Growth | | | | | | CAGR |
Individuals | 8% | 14,258 | 15,399 | 16,631 | 17,961 | 19,398 | 8.00% |
Corporations | 12% | 298 | 334 | 374 | 419 | 469 | 12.01% |
Other | 0% | 0 | 0 | 0 | 0 | 0 | 0.00% |
Total | 8.09% | 14,556 | 15,733 | 17,005 | 18,380 | 19,867 | 8.09% |
Daisy’s Chocolate Fruit Baskets is providing its customers with very attractive gourmet delicacies. Our Chocolate Fruits come in several standard themes as well as the option of creating a custom chocolate fruit basket. DCFB seeks to fulfill the following benefits that are important to customers:
* Selection- DCFB offers many different customizations as well as the opportunity for the customer to choose the perfect ingredients for their basket.
* Price- DCFB operates on a low overhead model, allowing them to generate fair margins and competitive prices.
* Customer Service- DCFB recognizes that superior customer service is needed in order to gain market share and be competitive.
The market trend for this type of industry has been one of consolidations and mergers with larger companies purchasing smaller local companies. This trend can be rationalized for several reasons:
* Economies of scale allow larger companies to generate better margins than small, local players.
* Brand equity/recognition is powerful within the industry as many customers choose these types of producers from popular, well-known companies, such as Godiva, based on name alone. Therefore it makes sense for larger companies to grow in number of franchises/outlets and geographic coverage.
In 2008, the national gift basket industry had $806 million in sales. The market is growing at a steady 4% per year. This growth can in part be attributed to an increase in product offerings. For years the gift baskets from most of the larger companies were fairly utilitarian and plain; some people got fruit baskets, others got meat, cheese, and cracker baskets. Many of the companies have tried to generate growth by offering a wider selection of baskets.
The following SWOT analysis captures the key strengths and weaknesses within the company, and describes the opportunities and threats that face DCFB.
* Vendors who have local, high quality ingredients.
* Artistic flair that provides DCFB with basket appearances and decor that is unmatched.
* Low overhead that provides excellent margins and...