185368204 1800flowers com company analysis

8/9/2019 185368204 1800flowers Com Company Analysis

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Table of Contents

About 1-800-FLOWERS.com, Inc................................2

1-800-

FLOWERS.COCO!A"#A"AL#SIS


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$us%ness En&%'onment..............................................2

Com(et%to's O&e'&%e)..............................................*

SWOT Anal+s%s.........................................................

$us%ness St'ate+....................................................

F%nanc%al Anal+s%s..................................................../

O(e'at%ons an Custome' Se'&%ce.............................

1-800-FLOWERS.com Webs%te E&aluat%on.................11

Conclus%ons............................................................1

A((en%3 F%nanc%al Statements..............................1/

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About 1-800-FLOWERS.com, Inc.

1-800-FLOWERS.com, founded in 1976, is a gift retaier ocated

t!roug!out t!e "nited States and is !ead#uartered in $are %ace, &e'

(or). *t is a fami+-run usiness t!at oers a ariet+ of /roducts suc! as

fres! o'ers, gifts, /o/corn, gourmet foods, coo)ies, 'ines, and

c!ocoates. %roducts can e oug!t from seera c!annes suc! as t!e

internet, franc!ise stores, and retai ora stores. 1-800-FLOWERS.com

o/erates 1 fument center, 2 ora retai stores, and 103 franc!ise

stores. *t is one of t!e rst retaiers t!at used t!e internet to se

direct+ to t!eir customers. *n t!e +ear 1999, t!e com/an+ 'ent /uic

on t!e &4S54 stoc) ec!ange tic)er s+mo FLWS.

$us%ness En&%'onment

1-800-FLOWERS.com is t!e 'ord:s ;1 orist 'it! oer 2.< times

!ig!er mar)et s!are t!an t!eir net iggest com/etitor in t!e "S. *t is

one of t!e to/ t!eir

'esite attracts more t!an


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$onsumer ora, gourmet foods and gift as)ets, and ?oom&et Wire

Serice usiness are t!e t!ree usiness segments of 1-800-

FLOWERS.com.

@!e consumer ora segment is /art of t!e namesa)e 1-800-

FLOWERS.com, and accounts for more t!an !af of com/an+:s tota

reenues. @!e+ oer a t+/es of o'ers and ora arrangements to

/roide to customers for an+ t+/e of occasion.

Aourmet foods and gift as)ets are o/erated + [email protected],

Fannie Ca+ $onfections, @!e %o/corn Factor+, and @!e Winetasting

&et'or). *t accounts for more t!an a t!ird of com/an+Ds tota reenues.

@!e+ oer 'ines, gourmet gift as)ets, c!ocoate, cand+, and /o/corn

t!at are /ac)aged in a sorts of customiae tins and as)ets.

?oom&et Wire Serice is t!e com/an+:s eectric communication

s+stem t!at ao's oer =,000 of t!e orists in its net'or) to contact

eac! ot!er to send and receie orders. *t accounts for near+ 10 of

t!e com/an+Ds tota reenues and !as t!e !ig!est gross margin among

t!e t!ree usiness diisions.

Com(et%to's O&e'&%e)

1-800-FLOWERS.com:s main com/etitors are F@5, *nc., Garr+ H 5aid

Godings, *nc., and @eeora LL$. F@5, *nc. is o'ned + "nited Onine

=


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"&@5, '!ic! aso /artners 'it! *nterora. F@5, *nc. oers ora

arrangements, gourmet foods, greeting cards, aoons, candes, and

etc. Garr+ H 5aid Godings, *nc., a /riate com/an+, oers gift

as)ets, c!ocoate, fruit, 'ine, and etc. Last+, @eeora LL$ focuses on

Iust ora arrangements and is a /riate+ !ed com/an+.

1-800-FLOWERS.com is not on+ com/eting 'it! t!em ut is aso

com/eting 'it! oca ora stores in /eo/e:s neig!or!oods and

grocer+ stores. Can+ /eo/e u+ t!eir o'ers from oca o'er s!o/s

in t!eir cit+ ecause of t!e conenience and /rice. @!e customer is

ae to /ic) out eact+ it is '!at t!e+ 'ant and t!e+ )no' t!e

condition of t!e o'ers t!at t!e+ are sending. *n addition, /eo/e /ic)

u/ ora arrangements at grocer+ stores eit!er for t!e c!ea/ /rice or

t!e+ are s!o//ing ast minute and it is on t!eir 'a+. Go'eer, t!e+ are

not getting t!e est #uait+ and fres!ness t!at 1-800-FLOWERS.com is

ae to oer.

SWOT Anal+s%s

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St'ent4s

5n%6ue ful7llment

s+stem - %nclues %ts

$loom"et net)o' of

a(('o%matel+ *,000

9o'%sts a'oun t4e

count'+ : o)n

%st'%but%on fac%l%t%es

W%e 'ane of ('oucts

St'on ma'et%n an

('omot%on

;%ft se'&%ces %&%s%on -

com(an+ (a'tne's )%t4

man+ Fo'tune 1000

com(an%es


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@!e usiness strateg+ for 1-800-FLOWERS.com descries !o' t!e+ run

t!eir usiness, !o' t!e+ intend to succeed in t!e mar)et and !o' t!e+

are ae to stand u/ against t!eir com/etitors> it re/resents t!e

management attem/t in securing t!e current and future goas.

@o e/ain t!e usiness strateg+ used at 1-800-FLOWERS.com 'e 'i

start 'it! t!e com/etitie adantage t!at t!e+ !ae> t!e+ are

/roiding t!e rig!t and origina /roducts and serices 'it! eceent

#uait+ and aue '!ic! gies t!em /o'er in t!e mar)et s/ecic

/roduct features aimed at satisf+ing s/ecic mar)et needs.

W!at dierentiate 1-800-FLOWERS.com from t!eir com/etitors are t!e

mar)eting strategies t!e+ ada/t and t!e inestment in tec!noog+ to

im/roe t!eir rand and in e/anding t!eir mar)et s!are. One of t!eir

strategies is to eerage t!e signicant 'e traJc, muti-miion

customer ase and !aing a dua-randed 'esite for as)ets and

ot!er rands. 4so, t!e+ !ae a socia res/onsiiit+ in inesting and

deeo/ing a training center t!at is educationa for communit+ uiding

/rograms in t!e ora industr+ '!ic! aects t!eir re/utation and

/erce/tion among customers.

@!eir saes strateg+ /a+s a er+ im/ortant roe in maimiing t!eir

/rots> t!eir /osition in t!e mar)et is reected + t!e strong returns on

t!eir inestments on t!e rands t!e+ !ae ac#uired and t!ose t!e+

!ae aunc!ed interna+. @!e+ focus on muti-c!anne retaiing 'it! an

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em/!asis on ecommerce as 'e as t!eir decision to e ertica+

integrated '!ere a//ro/riate '!ic! enaed t!em to ecome eaders

in t!e mar)et. 1-800-FLOWERS.com 'i continue to focus on t!e

s/ecic areas of t!eir usiness '!ere t!e+ eiee t!e+ can eert

contro and ac!iee en!anced resuts, earing in mind some

im/roements and o//ortunities t!e+ need to deeo/.

Recommenat%ons

Fe' of t!e im/roements needed to refres! t!eir usiness strateg+

areK

@o inest more in t!e /romotiona and mar)eting strategies to

e/and t!eir mar)et and res/ond to customer demands 'it! no

restrictions. @o sta+ u/-to-date 'it! '!at is ne' in t!e mar)et and ada/t to

t!e econom+ circumstances in t!eir /ricing and cost structure.

@o create and design ine etensions + engaging direct+ 'it!

t!eir customers to dee/en t!eir reations!i/ 'it! t!em. @o inest more in t!e Socia and Coie mar)eting and commerce

initiaties, 1-800-?as)ets.com usiness, $eerations.com

content and media usiness.

F%nanc%al Anal+s%s

T'en Anal+s%s

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2011 2010Inc'ease>


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from 2010 to 2011 due to not /a+ing an+ diidends in 2011 and

t!e additiona /aid-in ca/ita + t!e inestors.

$as! from o/erating actiities !as decreased + 2=.23 from

2010 to 2011> t!e main reason of t!e decrease is t!e rise of

inentor+ '!ic! /redicts a sum/ in in /rots and t!e need for

eterna nancing. Canagement s!oud manage assets and

iaiities more eJcient+.$as! used in inesting actiities 'as !ig!er in 2011 due to t!e

ac#uisitions and ca/ita e/enditures of t!e com/anies for t!e

+ear 2011.$as! used in nancing actiities 'as o'er in 2011 main+ due to

t!e re/a+ment of an) orro'ings.

Be+ Rat%os

ul+ *, 2011 une 2D, 2010

!'o7t a'%n 0.8 0.6

Retu'n on Assets 2.2 1.6


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Retu'n on Assets3t!is ratio s!o's !o' eectie t!e com/an+

is in utiiing its assets to generate /rot. 2010 s!o's a negatie

ratio ecause of its net oss, ut 2011:s ratio of 2.2 indicates

t!at t!e com/an+ is not utiiing its assets eectie+ to generate

/rot, for eer+ 1 doar of assets t!e com/an+ is on+ generating

2.2 cents.


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$onfections, @!e %o/corn Factor+, Winetasting.com, Stoc)+ards.com

and 5esign%ac usinesses. Reenue is deried from t!e sae of gift

as)ets, coo)ies, a)ed gifts, /remium c!ocoates and confections,

gourmet /o/corn, 'ine gifts and /rime stea)s and c!o/s t!roug! its E-

commerce saes c!annes tee/!onic and onine saes and com/an+-

o'ned and o/erated retai stores under t!e $!er+Ds and Fannie Ca+

rand names, as 'e as '!oesae o/erations

4s t!e com/an+:s /rimar+ oIectie !as a'a+s een to /roide t!e

est /ossie customer e/erience in eer+ c!anne, t!e+ decided to

im/ement Lie%erson:s ie c!at /rogram to etter sere t!eir

customers: immediate needs in rea time. @!eir main goa in

im/ementing t!e /rogram 'as to engage and connect 'it! customers

at t!e most !e/fu moment in t!eir s!o//ing e/erience'!en t!e+

'oud enet t!e most from an interaction.

One of t!e reasons t!e+ c!ose t!is /rogram is ecause t!e+ need to

connect 'it! customers at t!e rig!t time, and L% $!at !as t!e

inteigence to /roactie+ deier c!at initations at t!e est /ossie

moment, ased on a isitor:s onsite e!aior. Some of t!e com/an+:s

most successfu use cases incude eeraging L% $!at:s geo-ocation

inteigence to !e/ customers /ic) t!e est deier+ o/tions ased on

t!eir area and to successfu+ com/ete t!eir orders.

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@!e 1-800-Fo'ers.com !as dierent deier+ o/tions> same da+

deier+ and a orist guarantee on same da+ deier+, t!e+ aso deier

to countries outside t!e "S. @!eir deier+ met!od coud e 5irect

from gro'ers, or &et'or) oca orists. 1-800-FLOWERS.$OC can

deier ora items amost an+'!ere in t!e 'ord t!roug! a numer of

internationa aJiations.

@!eir acce/ted met!ods of /a+mentsK 4merican e/ress, Misa, Caster

$ard, ?i Ce Later and %a+%a. @!ere aso se t!eir /roducts t!roug!

t!eir Faceoo) /age.

Recommenat%ons

@o im/roe o/erations and customer serice, t!e com/an+ s!oud uid

its usiness on t!e /!ioso/!+ t!at success is dened as !e/ing

customers e/ress t!emsees /erfect+ + eeraging a 'ide ariet+

of origina arrangements 'it! t!e utimate goa of deiering smies to

t!e im/ortant /eo/e in t!eir ies. @o accom/is! t!is goa across a

c!annes, t!e+ must reaie t!at t!e+ need an integrated customer

serice /rogram to assist t!eir onine s!o//ers.

1-800-FLOWERS.com Webs%te E&aluat%on

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1-800-FLOWERS.com:s 'esite is er+ im/ortant to t!e usiness> it is

t!eir main interaction /oint 'it! t!e customers and er+ crucia to

t!eir success. ?eo' 'e discuss t!e most im/ortant factors t!at ma)e

t!eir 'esite successfu.

Info'mat%onal3

1-800-FLOWERS.com are ma)ing an eort to s!o'case items t!at are

i)e+ to e of interest to isitors, oious+ 'it! t!e intention of

!e/ing isitors to nd somet!ing t!e+ 'i u+. 1-800-FLOWERS.com is

using a arge area on t!e !ome/age to /romote current saes, ne'

/roduct ines. Coreoer, t!e+ u/date t!e !ome/age more often in

order to /romote dierent occasions suc! as Cot!er:s 5a+.

Ease of (u'c4ase3

*n 1-800-FLOWERS.com:s 'esite, once t!e isitor adds an item to t!e

cart, !eNs!e 'i immediate+ see t!e contents of t!e s!o//ing cart.

@!e+ 'i e /resented 'it! t!e o/tions to continue s!o//ing or to

c!ec)out. *f t!e+ c!ose to c!ec)out, t!e isitor can ogin as an eisting

customer or create a ne' account. @!e c!ec)out inoes a minima

amount of ste/s t!us it is as eas+ as /ossie for s!o//ers.

S%m(le 'a(4%cs3

1-800-FLOWERS.com incudes man+ dierent /ictures of /roducts. @!e

/ictures een s!o' !o' t!e /roducts are /ac)ed u/. %otentia u+ers

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'i e ae to get a er+ good fee for t!e /roduct ased on t!ese

/!otos as seing onine is dierent t!an seing in a /!+sica store

ecause t!e u+er cannot touc! t!e /roduct or see it in /erson efore

ma)ing a u+ing decision.

Ease of na&%at%on3

1-800-FLOWERS.com uses a dro/ do'n naigation menu to !e/

isitors nd '!at t!e+ are oo)ing for. @!e naigation menu contains

in)s to t!e maIor /roduct t+/es t!at are aaiae on t!eir site, and

roaming oer a in) 'i ring u/ t!e dro/ do'n menu t!at !e/s to

narro' it do'n to nd more s/ecic /roducts. Eectie naigation is

im/ortant for t!eir 'esite and critica for t!eir success Figure 1.

Figure 1

Reunant na&%at%on3

4t!oug! naigation is critica for ma)ing it eas+ on isitors to nd

'!at t!e+ 'ant, t!ere is sti t!e need to ao' t!em to searc!. Some

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isitors 'i sti !ae troue nding a s/ecic /roduct een 'it! good

naigation, and 'it! arger e-commerce sites it ma+ often e more

feasie to sim/+ do a searc! t!an to moe t!roug! seera a+ers of

in)s. 1-800-FLOWERS.com oers a searc! ar t!at !e/s t!e users to

nd redundant 'a+s to reac! t!eir desired /roducts.

Le%ble tet3

@!e design and coor sc!eme of t!eir 'esite does a good Io of

matc!ing u/ 'it! t!eir /roducts. @!e 'esite aso oo)s /rofessiona

and a//eaing to t!e users '!o are interested in t!eir /roducts.

ult%-b'o)se' funct%onal%t+3

1-800-FLOWERS.com:s 'esite su//orts most of t!e ro'sers suc! as

*nternet E/orer, Firefo, $!rome 6 and Safari


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Let t!e customer com/are et'een /roductsK 1-800-

FLOWERS.com 'esite 'i enet from etting t!eir users

com/are t'o or more /roducts.

Ca)e t!e 'esite aaiae in ot!er anguages suc! as S/anis!

to ao' non-Engis! s/ea)ers to naigate t!roug! t!e 'esite

easi+ and use its serices.

*ncude ideos aout /roductionK an eas+ 'a+ to gain t!e

customers trust is + introducing ideos t!at e/ains !o' t!e

main /roducts are eing created.

*m/roe *nternet mar)eting and searc! engine o/timiation.

Conclus%ons

4ssuming a stae to etter "S econom+, 'e eiee 1-800-

FLOWERS.com 'i s!o' more /ositie resuts and success in t!e

u/coming +ears. @!eir diersied /roduct /ortfoio 'i ao' t!em to

gro' and reac! more customers. 1-800-FLOWERS.com continuous+

adds orists to its fument s+stem net'or) to e ae to res/ond to

customer orders and guarantee t!eir satisfaction. @!eir success

de/ends on satisf+ing customers in an eJcient and eectie manner.

4not!er factor t!at 'i !e/ 1-800-FLOWERS.com succeed een furt!er

is to e/and to ot!er "S states and een ot!er countries. @!eir current

geogra/!ic concentration is imiting t!em from reac!ing customers

and giing t!eir com/etitors t!e o//ortunit+ to increase t!eir mar)et

s!are.

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1-800-FLOWERS.com is )no'n for its strong mar)eting and /romotiona

actiities '!ic! !ae !e/ed t!em attract miions of customers. @!e+

'ere t!e rst to use Faceoo) to se /roducts '!ic! gae t!em a

com/etitie adantage oer t!eir com/etitors. *f t!e+ continue 'it!

t!eir innoation es/ecia+ in utiiing moie e-commerce to target

customers t!e+ 'i denite+ increase t!eir /rots and succeed.

1-800-FLOWERS.com !ad /reious+ ado/ted seera tec!noogies in

order to im/roe t!e 'a+ t!e+ conduct usiness> for eam/e, t!e+ are

using coud com/uting to cut *@ costs costs, increase eJcienc+ and

/roductiit+. @!e+ /an to inest in ot!er tec!noogies and ma)e

en!ancements to t!e current tec!noogies t!e+ use> t!is s!oud enae

t!em to cut costs, increase /roductiit+ and eJcienc+ and t!erefore

increase reenues.

1-800-FLOWERS.com is er+ customer-focused and t!eir usiness

mode is uit around guarant+ing t!e customer:s satisfaction and a

100 smieP> a t!eir future initiaties s!oud e carefu+ studied and

/anned to continuous+ ensure customer satisfaction and fument.

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A((en%3 F%nanc%al Statements

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185368204 1800flowers com company analysis

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