Build . A . Bear Workshop - Is it Successful ? (A Case Study)

Maxine Clark founded Build- A-Bear Workshop in 1996.   Unexpectedly, Clark’s store excelled quickly and greatly, having more supporters versus non-supporters.   Not only is the company continuously excelling in profits, but it is also expanding the availability of its products by the many store locations it has opened. Build a bear is worlds one of the leading toy making company. Especially they make teddy bears and stuffed animals. It makes an environment of greater amusement for children creating longer lasting memory. In the Build – A – Bear children steps into cartoon worlds and some other amazing fun. Kids love Build – A – Bear. And they are not only making stuffed animals. And this experience costs as low as $10 and around $25. It is not only selling the Bear, but also the experience of participating in the creation of personalized entertainment.

Build – A - Bear is competing with other stuffed toy making companies, such as Teddy bear. It maintains its sales volume in a balanced manner. Its sales do not peak during holiday season, but are evenly distributed throughout the year. They use a catchword – “We don’t think of ourselves as a toy store – we think of ourselves as an experience. The firm is mostly customer centric, rather than product centric. They are focusing on product customization, but focusing more on customer preferences. For that they are following different ways to communicate with customers. It is making some additions generated from customers and making opportunities for them to build a lasting memory.

1) Give examples of needs, wants and demands that Build-A-Bear customers demonstrate, differentiating each of these three concepts. What are the implications of each on Build-A- Bear’s actions?

         Needs:
                        Need is defined as a state of felt of deprivation or lacking something. According to this case study, we can say that the children needs are entertainment, fun and creativity. We know that every child want to play with something whether the child belongs to a rich or a poorer family. The second thing is we can notice that the new born babies love to play with technology means they want creativity. They want to do something that is new and unique.

         Wants:
                      Wants are basically “needs, that are fulfilled according to the costumer’s personality and culture.” In this case study, we can observe that the target customers are children and children love to play with animals. Due to the advancements in technology, the children are being something which they really want and know to be the only source of delightfulness.   Hence, the company has added different assembly lines and clearly labeled work stations.

         Demands:       
                            Demands are “wants, backed up by buying power”. The Build-A-Bear company gives experience to their costumers of creating a stuffed animal at a very low cost as compared with others. Customers demand specific products that add up to the most valuable and satisfaction. Among the most relevant examples we can mention are both new store locations and accessories. “Mini-scooters and mascot bears at professional sport venues” are also specific ideas that were interpreted as customer`s demands by the company.

2) In detail, describe all facets of Build-A-Bear’s product. What is being exchanged in a Build-A-Bear transaction?

In a Build-A-Bear transaction the customers have multiple options to apply within the making of the bear.   For example, the choosing of the bear itself, the wardrobe, the voice box, and of course the choosing of the name.   Also the price of the bear is part of the transaction.   Usually the price is anywhere between $10 and $25.  

Lastly, the most important part of the transaction in my point of view is the experience and memory that is made during the time that the customer is in the store or possibly online.

3) Which of the marketing management concepts covered in this chapter best describes Build-A-Bear Workshop?

The marketing concept within the marketing management concepts is the one that best describes Build-A-Bear. The marketing concept, which is the “marketing management philosophy which holds that achieving organisational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively than competitors. I think, it best describes the Build-A-Bear Workshop because they are focused on the needs of their customers and by creating and building relationships with their customer base. This is evident, as Maxine Clark, Founder & CEO, says ‘our concept is based on customisation’ and puts herself on the ‘frontline’ and asks her customers to email her with ideas and concepts that they have and believe could improve their product, while trying to answer to all the emails she receives.

4) Discuss In Detail The Value That Build a Bear Creates For Its Customers.

The Build-A-Bear Workshop is an organized world where children are able to create their very own stuffed animal just how they want it.   The process has a total of seven stations, in which the animal is fully put together.   This process leaves a child with more than just a stuffed animal, they have created a memory that most would not forget.   Build-A-Bear is very different from other makers of stuffed animals. While the key selling point of some may be quality, Build-A-Bear focuses on customization and the experience. The cost of the experience starts at $10 to $25 and many parents consider it as a bargain when they see their child’s delight. r.   Product personalization is very popular and it brings about great satisfaction, which in return helps to build relationships with customers. Clark never forgot what it is like to be a customer, which enabled her to make Build-A-Bear a customer-centered organization.   Clark is actively involved in the organization and visits several of the stores weekly.   In doing this, she has establishes a relationship with many customers and has created a buddy list via e-mail.   Although Clark only communicates with a portion of her customers, it acts as a foundation for her to communicate with all customers. All of the business and communication process helped Build – A – Bear to make longer lasting memory to each child and their parents. Thus they are promising superior values and capturing good values in return.

5) Is Build – A – Bear likely to be successful in continuing to build customer relationships? Why or why not?

Yes, Build – A – Bear likely to be successful in continuing to build customer relationships.

Build – A – Bear is trying to be connected with customers by using different communication method. The firm’s CEO Maxine Clark’s low-tech and high-tech methods for making Build – A – Bear is a truly customer centric organization. Personally she visits most of the stores not only to see the stores activities but also to interact with preteens and parents by chatting. Main target consumers of the product children are linked with a panel - “Virtual Club Council”. Company gets real time feedback from customers. Via that Build – A – Bear puts customer ideas into practice.

Especially, children enter into the Build – A – Bear store and become delighted. That’s make a opportunity to build an amazing longer lasting memory among children and successful customer relationships.

Read More

Carter Cleaning Centers: A Case Study

List of five specific HR problems I think Carter Cleaning will have to grapple

 The company is more capital intensive, not labor.

 Hired wrong person for the job.

 Unskilled labors were operating machines.

 Employees are not giving their best.

 Lack of training for employees.

If I were Jennifer

If I were Jennifer, at first as a troubleshooter - I would make the transformation of the organization from capital to labor intensive and utilize the capital on new technology and modern management. Because, employees are the heart of the organizational activities. I will hire skilled employees by interviewing them properly. Will staff exact number of employees what the organizations need. I will arrange a training program for employees to increase their working ability. When employees are not giving their best I will increase their salaries as well as other benefits (bonus, increment), that will make them more productive. 

Read More

JetBlue: High-Flying Airline Melts Down In Ice Flying Storm (A Case Study)

This case of JetBlue airways is based on service failure and its adequate recovery procedures. It is listed in the New York stock exchange as (NYSE:JBLU). A horrific incident on Wednesday, February 14, 2007 occurred in the history of JetBlue airways. Bad weather hampered the regular operations of JetBlue as winter storm. JetBlue’s passengers were in trouble of 10 hours waiting. Its normal operation took seven days to be restored. In that uncertain situation their orders become refunded and employee and recovery cost increases.

Because of that incident JetBlue incurs operating loss. So their share price decreases comparing to its previous years of operations. JetBlue faced that unfortunate situation because of lack of operational interaction among all departments of the organization.      

Finally, their CEO Neelam’s hard perseverance showed some unique ways to recover it. Although it did not worked as remedy for that service failure very quickly, it developed some long-term recoverable standards to bring the JetBlue airways in the aviation industry of the United States.       

   
Question 1

Could JetBlue depend on Neelman to lead the company out of trouble?

Neelman the CEO of JetBlue airways is running the company since many years. He should know all the influential matters inside the company on its employees and outside the company on its valuable customers.

If we can see that Neelman established the JetBlue a top class brand among customers in USA, Mexico and Caribbean region. Its unique services were very popular among customers which were absent in their competitors airlines. From different financial data we can see that it had a positive move from 2001 - 2006 before the occurrence of the trouble.

It was the main failure of the operational functions of JetBlue airways. But it was an accidental issue on which the CEO has no direct influence. Rather than this the overall growth, return and revenues, passenger per employees everything were in an upward move. Moreover they were in less complaint section of US airline industry.

Neelman had a vision to make JetBlue a new category of airline Service Company. He developed teamwork inside the organization to increase service quality.

After having the snow melt trouble Neelman and his fellow employees are trying to recover it as soon as possible such as building customers’ trust again.

By analyzing this I can say that Neelman is a dependable person for JetBlue Airways to be one of the best airline services again.

                                                                                                      

Question 2

Did the executive at JetBlue learn enough from their service failure to fix what was wrong and prevent from happening again? If not what further action should be taken?

Yes, I think they are learnt enough to fix the service failure and prevent it from happening again.

Neelman & his employees were trying hard to retain the previous position by learning from their service failure. For that they have targeted the Valentine’s Day. On that day the CEO Neelman issued a public apology and offered various recoverable measures. It was including the full refund and a free round trip if any passenger is detained onboard for more than 3 hours. JetBlue announced that they are ready to give any kind of penalty if any customer is the victim of his kind of trouble.

If employees are not learnt enough to recover the trouble, in that case JetBlue can bring some changes such as – upgrades to its reservations, innovative crew scheduling and call center.

Question 3

What, if any, strategic and operational changes should be made to ensure the company’s full recovery?

Customer defined not company defined

Should not guarantee

JetBlue airways have service failure and for that they must ensure the proper form of recovery. Their customers have recovery expectation of - understanding & accountability and fair treatment. Accountability and understanding may include both monetary and non-monetary benefits. Customers switching can be reduced by rebuilding and maintaining relationship with customers.

From the next service JetBlue airways should make the service fail – safe by doing it right the first time. Beside that JetBlue airways should set customer defined service strategy rather than company defined strategy.

Right after the service failure they must track complaints regularly and provide adequate explanations behind the failure to make transparent recovery.

As the JetBlue have service failure they must not provide big guarantees to their customer very frequently. But on some matters they can provide guarantee which is positively related to its adequate service guarantee.

I think JetBlue airways should follow above mentioned recovery procedures to overcome these unavoidable circumstances.

Conclusion

JetBlue Airways ‘s service is in critical condition and recovery should follow the appropriate service recovery procedures discussed in the chapter “Service Recovery” in the book of Zeithaml, Jo Bitner, Gremler and Ajay Pandit.

Read More

People, Service & Profit At JYSKE Bank : A Case Study on JYSKE Bank

This case is of the JYSKE BANK. It was established in 1967 with the merger of 4 Danish banks. It is the third largest bank in Denmark. In this case it is focused that JYSKE BANK has a strong ground in the banking market of Denmark and they are the market leader of customer satisfaction by utilizing their model called JYSKE FORSKELLE. JYSKE BANK practices this model to satisfy their valuable customers.

The model’s name JYSKE FORSKELLE has the meaning of JYSKE differences. That means, although initially the bank followed the traditional banking approach then it felt to bring some differences from its core values in customer services comparing to its competitors. The main goal of this difference was changing product oriented JYSKE BANK to customer oriented bank.

JYSKE bank is introducing the 5 dimensions of service quality in its core values of operations. This relationship between core values and 5 basic service quality dimensions are – 

Core Value	Service Quality Dimension
Effective and sustainable	Reliability
Open and honest	Assurance
Commonsense	Responsiveness
Genuine interest and Equal respect	Empathy
Physical innovations in service	Tangible

Question 1

As of the mid – 1990s, what was JYSKE Bank’s competitive positioning, that is, what did it do for customers relative to its competitors?

The JYSKE BANK places great emphasis on its three groups of stakeholders, shareholders, to treat clients and employees, with the same respect. If the balance in favor of one or two groups shifts, is the long-term expense of all groups.

In mid 1990s JYSKE was dealing a group of customers with one employee. For that reason possibility of serving each customer simultaneously was pretty difficult which was making fellow customers very annoying and disappointed. In that case customers’ incompatible needs were negatively affecting each other.

Employees were provided ID cards with dull images that were not indicating friendliness in providing services. Moreover loan processing criteria was pretty critical both for employees and customers. These were hampering service popularity and long term satisfaction among customers. Beside that employees were no feeling themselves empowered enough to be one of the important stakeholders of the organization.

The core values of the Bank are its fundamental basis. In relation to customers and staff, have the following characteristics which JYSKE Bank makes it unique:

Common sense

Open and honest

Different and unpretentious

Genuine interest and same attention

Effective and sustainable

Academy of management led these same values to reevaluate how the Bank has with their customers. The manager knew that if these values, they change their conservative attitude of the past and a service, which should be distributed and innovative Bank wished to remain faithful to the customers within a competitive banking sector.

Question 2

As of 2003, what was JYSKE Bank’s competitive positioning?

Originally JYSKE Bank was following an old-fashioned banking system. Its competitive differentiation strategy was originated from its core values and differences. Those are consisting equality, transparency, honesty, respect and efficiency.

The goal was to embed firm’s values in each of the external customer of its business and operations and stand out from the competition. In the mid-1990s, JYSKE bank transformed and positioned itself as a very customer-focused bank. Then they began to promote relationships with customers to understand their needs and solutions in accordance with their strategy. Its only target was less risk bearing customers those are ready to afford a premium price and were comfortable with the banks candid personality and portrayed image.

This strategy went beyond the traditional product-centric approach, as most of the banks have taken it over. JYSKE Bank differentiates itself on the aspect of service provision and it invested in tools, employee capability, solutions and increase spending time with their customers.

JYSKE introduced a new competitive positioning in its branches and all sorts of operations. New positioning is shown below -     

       

Out of Box Services -

·         Developing a niche marketing and targeting the right set of customers.

·         A single customer is assigned to a small group of employees in each of the branches of JYSKE bank to ensure better and quick service with compiled effort.

·         JYSKE bank is keeping friendly picture employees on the ID card.

Value addition -

·         To be nice to every customer to ensure satisfaction.

·         Making available time for customers.

·         Caring customers as much as possible

·         Focusing on niche marketing for extremely valuable customers.

·         Training for building team and provide adequate services.

·         Empowering employees with training and allotting enough power to make instant decision at least at the branch level.

·         JYSKE bank is offering attractive incentives to their employees to increase satisfaction and commitment to the organization.

Cutting Edge -

Here tools developed means – Customers’ needs are identified. And the combine effort of these tools and employees are cutting edges.

·         JYSKE bank developed IT tools to help customers in identifying customers’ problems and providing proper solutions.

·         Both employees and the tools are providing appropriate solutions to customers.

Service & culture that differentiates–

·         More employee centric approach to maintain customer satisfaction.

·         Empowering employees for decision making.

·         Employee training for fro better service orientation availability for customers.

·         Changing the style of delivering financial services to customers.

Question 3

What did JYSKE Bank change to enable it to deliver its new competitive positioning?

Any product based or service organization can bring some differences in their corporation. JYSKE bank is a service organization that is required to do some competitive positioning. It introduced some tangible and intangible differences in its organization to do so. To maintain the satisfaction among existing customers and gaining new customers Jyse brought these tangible and intangible changes into its service system.

Some Tangible changes those were brought in JYSKE Bank’s operation:

Account Team:

This was started when each employee of the branch to serve as primary point of contact. There were many problems. Gradually JYSKE bank identified that many valued customers are coming to the bank simultaneously.  Employees are busy with customers who were arrived first. But JYSKE bank were committed to provide individualized service to each customer. This situation was hampering their commitment. Then the accounting tem of that bank introduced the team based performance criteria. That means  each of the customer of JYSKE bank were assigned to a particular tem. The team members were looking that problem by working together. The facility from that tem based performance was that providing each customer with great ease, providing individualized service to each customer and maintaining customer satisfaction in highest level by keeping close physical proximity with each customer.          

Branch Design:

JYSKE bank spent huge amount of money to redesign their bank branches. The purpose was not only to decorate it to look attractive. There were some other reasons to make their branches customer friendly. So that customers can take their services with a great ease and comfort. Some of the beneficial effects of the redesigning branches are -   

                                    Interactional attractiveness - JYSKE bank were creating interactional attractiveness among valuable customers through architectural and design changes. They are delighting their waiting customers with coffee, fresh juice and with a play center for children.

                                    Signifying Quality - Employees layouts in the branches signifies quality of the service. Because, 3 or 4 employees were sitting at a single large round table to provide quick services to customers.

                                    Reinforcing Openness – IT system of all branches were designed to structure interaction between team members and customers. Because employees computer screen were placed like that customers can see them and ensured openness to customers.        

If conversation goes long there were meeting rooms those were ready to give services with feeling of home.

Details:

JYSKE bank tried to show that their employees are working with genuine interest to serve customers properly. For that they hired professional photographer who worked with employees and captured the genuine interest in employees’ eyes.

That means JYSKE BANK ensures the physical facilities for customers. These physical conditions ensured the proper tangible differences in branches of JYSKE BANK.

Some Intangible changes those were brought in JYSKE Bank’s operation:   

To enable the competitive positioning JYSKE Bank also did some intangible changes in its operations.

Training:

JYSKE Bank provided adequate training to their employees. It helped the team based service strategy of JYSKE Bank to provide service in the way out of traditional retail business.

Branches’ Empowerment: the decentralization of loan process

As employees are trained properly they are also given some additional power to provide the service with a great ease.

Generally in traditional banking services when customers are arriving for the sake of arranging loan there are some provisions of allowing getting loan. If a customer was to apply for a loan the entire procedure used to take a long time as the branch manager used to write a formal application and forward the application to the regional level for approval. This is a lengthy and time consuming process.

To get rid of this hassle JYSKE BANK empower their employees with proper training to approve the loan as soon as possible. JYSKE make the particular employee the owner of the loan. This system was implemented to affect the service internally and positively. Managers became enabled to contact to customers and collect information properly. And quality of data collected is increasing. For that reason manages are approving small loans almost instantly. All the employees were told – “When in doubt, ask. However, if there is no doubt, go ahead”. From this we can get ideas about the benefit of empowering employees and improving efficiency of the service. 

Question 4 

How did JYSKE Bank implement those changes?

JYSKE bank brought some changes in its management style. JYSKE used many tools, trainings and JYSKE values to link them together through the share of values of their employees. JYSKE bank implemented these in changing especially, their human resources.

The Bank reached its new customer-oriented competitive method. It is known as STP and goes through the positioning in 3 stages - segmentation, targeting and finally positioning. JYSKE bank implemented it in following ways -

1)      Segmentation is done by following ways –

Private Banking

Corporate Banking

Consumer Banking

2)      Targeting is done by following ways –

Danish families

Small to Medium Danish companies

3)      JYSKE bank finally positioned their bank as – A bank which makes a difference for the customer.

           ## JYSKE Bank was selecting their employees not only depending on their banking skills; they are also evaluating the social abilities of each and every employee which will go along with service mindedness and some JYSKE values such as: openness to customers and genuine interest in other people. JYSKE bank hires employees only if employees are consistent to JYSKE values to ensure satisfaction of customers.

           ## JYSKE Bank made employees’ development as every employee’s responsibility. JYSKE helped in development of employees by investing more on it. But they kept the development of every employee within the JYSKE values.

           ## JYSKE bank offers a few monetary incentives to its valuable employees to keep them motivated and perform better. IT is the part of reward facilities based on performances. JYSKE provides three types of incentives - stock, one-time payments and annual raises. The portion of incentives depends on the overall performance of the bank. If JYSKE bank’s performances are growing, then the portion of incentives are increasing. Thus employees are getting more motivation to perform with customer satisfaction.

           ## JYSKE bank is committed to both customers and their valuable employees. The promises those they are making are being fulfilled for sure. Also JYSKE bank is investing more in employees, system and infrastructure to be the top one in Scandinavian banking market.

Conclusion

At last after studying the case and I can say that, JYSKE bank’s present competitive market positioning is pretty right and it is going well. But beside that it must handle daily customer encounters properly and if any failure occurred then JYSKE must fulfill service recovery expectations of each customer by following service recovery strategies properly.

Read More

Flower Business Supply Chain in Bangladesh

1. Introduction

Flower Business / Floristry are the production, commerce and trade in flowers. It encompasses flower care and handling, floral design or flower arranging, merchandising, and display and flower delivery. Wholesale florists sell bulk flowers and related supplies to professionals in the trade. Retail florists offer fresh flowers and related products and services to consumers.

Floristry can involve the cultivation of flowers as well as their arrangement, and to the business of selling them. Much of the raw material supplied for the floristry trade comes from the cut flower industry. Florist shops, along with online stores are the main flower-only outlets, but supermarkets, garden supply stores and filling stations also sell flowers.

The growth in the commercial flower production can be traced back to the early 1970s, to large-scale commercial production in Jhikargacha Shyamnagar Jessore pulses can got started in the mid-1980s. Later it speeds up largely in Jessore, the large flower-producing belt in Bangladesh proved as Savar, Chuandanga, Mymensingh and Gazipur. Jessore is currently home to 70% of the Bangladesh flower production and 4,500 farmers in a small, but dynamic sector engaged. Belt Bandarban, Chittagong, Cox's Bazar, Rangpur, etc. for increasing flowers production areas. Khulna, Khagrachori, Rangamati are newly adde areas for flower production. Model of levels of farms consisted of rudimentary greenhouses and new high-quality products are produced. As Gerbera Daisies that were delivered earlier by importers. This kind of import substitution in begins usually in larger and more complex farmers, seep into the knowledge and skills to do this business, finally up on the smaller and less sophisticated farmers. Have not yet started to dramatically increase the flower market in the country by 2000 and later with rapid urbanization and cultural mediation with new festivals like Valentine's day. Traders Kallyan Bohumukhi Somobay Samity is currently flower according to Secretary Assistant Dhaka approximately 25000 families flower production under 0.2 million people directly employed directly or indirectly by this sub-sector topic.

2. Methodology & Findings

For the study on Flower Market Supply Chain in Bangladesh we, the group members physically visited Shahbag Flower market & small flower market at Khamar Bari. But our main focus of the study was on Shahbag flower market. We interviewed different flower businessmen of the market about detail of flower business and how these flower businesses are conducted.

Some questions those we have asked to businessmen are provided below –

1. What is the condition of flower business because of present political situation?
2. Which flowers are traded more?
3. Who purchases flower more?
4. In which event flower purchases are highest?
5. How much rents have to be given by businessmen to the market authority?
6. What are the prices of different flowers?
7. What are the places from where flowers come?
8. How flowers are carried from the place of production?
9. When the order should be placed?
10. How payments are made?
11. Is there any incidents of fraudulence occur frequently?
12. And many more effective conversations which are available in different part of the term paper.

Results of these questions are available in every part of the term paper. We also attached some photographs those we have captured during our visit to the flower market at the last part of our term paper.

3. Objective of the Study

The purpose of the study is that the current situation to find out the perspectives and problems of flower marketing in Bangladesh. The specific objectives are:

• To assess the current flower marketing systems in Bangladesh.
• To find potentiality in flower marketing in Bangladesh.
• To explore the limitations of flower-marketing.
• The most important factor to know flower marketing.
• That suggests marketing strategies and recommendations to promote the marketing of flowers.

4. Significance of the Study

Reasons for the implementation of this research is to find out the attitude and perception of consumers against flower marketing and what are the related problems and what can make the flower management to improve and gain or increase market share.

5. Market Potential

Today's flower is a global and dynamic industry that has achieved substantial growth rates in recent decades. Global consumption of cut flowers € 30 to € is estimated at a staggering 40 billion per year in Europe and North America into the world's markets. Since the 1990s, have production focus shifted from markets in the northern hemisphere to countries where climatic conditions riper and production and labor costs are lower. As a result, the new centers of production, usually developing countries such as Colombia, Ecuador, Kenya and Ethiopia. However, the character of flower production (use of chemicals, water) did the exposed area of criticism over working conditions and its impact on the environment. In response developed a wide range of social and environmental standards, both in the result as initiatives in the market and in the producing countries. Flowers are generally exporters to Europe several certification systems. Producers in developing countries are still the question, what is the relevance of these standards for their business.

5.1.          Some Days of Most Frequent Flower Trade

Name of the Day	Date
Falguni Utshab	February 13
Valentine’s Day	February 14
International Mother Language Day	February 21
Independence Day	March 26
Friendship Day	1st Sunday of August
National Mourning Day	August 15
Victory Day	December 16
Moreover in many other occasions like Marriage ceremonies and Birthday celebrations people use flowers.

5.2.          Payment Procedures

Flower business transactions are processed in three ways

1)      bKash

2)      Bank - Wire Transfers

3)      Cash Transactions

Wholesalers and retailers pay money in advance before getting their order in most cases. Although once cash transactions were pretty popular among flower businessmen, but now to save time and get transactions whenever the need flower businessmen are transacting through Bank-wire transfer and newly introduced bKash. But we found that information by interviewing them that most of the flower businessmen are transacting through bKash.

                                   

1.1.          Packaged Offers of Flower Business: Permanent Shop

Floral design or floral arts is the art of creating flower arrangements in vases, bowls, baskets or other containers, or making bouquets and compositions from cut flowers, foliages, herbs, ornamental grasses and other plant materials. There are different packaged program of flower business is widely available in Bangladesh. When we visited Shahbag flower market we talked several permanent flower shop owners. For Example we Interviewed “ Mohammad Billal Hossain “  - Proprietor of “ বৃষ্টি, ভি, আই, পি, ফুল ঘর (১) ” The picture is given Below -

Information those we have collected from this shop about different packaged offers of flower are –

1)        Marriage Ceremony & Gaye Holud

2)        Birthday Celebration

3)        Seminar Symposiums

4)        Home Decoration

5)        And many more….

6. The Bangladesh Market

The requirement to satisfy various flowers such as chrysanthemums, tuberose and Gladiolus from India and orchids, Gerbera, Anthodium was introduced and Thai each year increased from Thailand. Bangladesh has about TK 2 million flowers and ornamental plants from overseas imports to spend. Revenue is about 90% of the local flower industry from four varieties of flowers; Rose, tuberose, marigolds and Gladiolus.

According to a recent study by initially increasing the main thrusts for Bangladesh-flower sector should be the domestic market. As can be seen in the adjacent graphics, increased imports of cut flowers five times between 2002 and 2007, albeit from a small base. Retailers claim at the same time as late as in 2006, when the flower industry was virtually non-existent. What seems to happen on the local market, is that the domestic market share of imports, and the overall market continues to grow, so that somewhere between 20-30% of the market, especially in the upper end of the scale the import. Retailers prefer imported due to their fresh flowers (they are kept in a cold chain) and wide range of products.

As USAID may cost and margin analysis below is, farmers earn strong margins on roses and it's in the four main varieties, based on their research and a recent market study consistently. Although other actors in the chain to achieve also comfortable margins, they are weakened due to losses caused by the lack of a cold chain to flowers. A recent study on the BRAC initiative shows that the average price for BRAC was marketing, wholesale cum dealers and retailers -

Tk 12,44, 11.61 and TK 50.28 a hundred flowers. TK 74.33 a hundred flowers accounted for marketing. The dealer was 67.64% of total costs in the course of the BRAC and distributor of cum dealer TK. 16.74 and 15.62 or due. NET marketing margin of BRAC, amounted to wholesaler cum dealers and retailers TK. 187.56, TK. 628.39 and TK. 689.72 to 100 flowers. Marketing margin of victory was, for retailers as wholesalers cum trader on BRAC. The ROI of wholesalers cum trader was higher than other retailers. The following table shows the different levels of the local chain of flowers spread the regular price.

The same study compared the return of four major varieties of followers as shown below -

The above table shows that Gerbera has the highest level of return followed by Gerbera and Rose.

7. Flower Market International Trade in Recent Years

Bangladesh also exports flowers in different countries. The supply chain that is used in case of supply to export is shown below -

Generally in case of local market auction is not much present. Bur in international trade auction method id used much frequently. Flowers are exported via “ Shahjalal International Airport ”. Flowers came directly from growers and different agents participate in auction for wholesale & retail.

Floristry sector is characterized by an increasing degree of internationalization. International trade is largely organized into regional direction: African and European countries are the main suppliers to the major European markets; the North American market is supplied by Colombia and Ecuador; and Japan and Hong Kong source from Asian countries. And the world market is growing again from his previous low in 2008.

    (In 000’ US$)

In the medium and long term, Bangladesh could become a significant exporter of flowers. As cut flowers can be seen in the global export profile, Ethiopia the latest East African market participants to achieve a high growth rate and build a significant industry. With significant investments in production, cold chain and market developments could Bangladesh aggressively probably in Middle Eastern and European markets.

In the medium and long term, Bangladesh could be a significant exporter of flowers. As cut flowers in global export profile, Ethiopia the latest East African market participants to achieve a high growth rate can be seen and build a significant industry. With significant investments in production of Bangladesh could aggressively probably in Middle Eastern and European markets cold chain and market development.

Through the auction:

Import Division of the auction will receive products and unpacks and prepares the production to 2/3 of the import agent for the auction or to a wholesale auction: the consultant offer variety of services, the facilitation of trade between exporters and their customers. Products delivered by proxy, which prepares the items on auction or a European distributor sold the products directly. Agents continued a broadcast over several days to ensure a continuous supply to the auction clock.

Direct to an import wholesaler:

Products are from a wholesaler, which treated (for example by bouquet production) and sold for domestic and foreign large retailers bought.

Direct to the retailer:

Products are imported directly from a Distributor, in most cases, a large supermarket chain. Products passing through the auction system for routes 1 and 2. Routes 3, 4 and 5 go to auctions (often referred to as "direct trade").

7. Supply Chain

We, the team visited Shahbag flower market to know about the actual flower business supply chain in Bangladesh. We interviewed many sellers and also buyers about how hey deal about it. We also visited many permanent physical flower stores who buy flowers all the day long from morning night. But the main flower market of shahbag stats at 4 or 5 am at the dawn & it exists till the noon. Both wholesale and retail business is available there.

Generally they buy flowers at a low cost band sell them at little profit. Some of the flowers and their origination and short supply chain are described below –

§      Rose: Rose is of various kinds are available in Bangladeshi flower market. Red, Yellow and white they are primary kinds in terms of colors.  Red rose is the most frequently traded flower in Bangladeshi flower market. In shahbag flower market, Red Rose is of two kinds –   1) Marinda - Comes from Savar.

                             2) Lincoln - This type of rose generally comes from Jessore.

Rose is traded more in Valentine’s Day. Per rose is bought at 4 tk & sold at 5-6 tk.

§      Marigold: Marigold popularly known as “Genda” flower in Bangladesh. This is the flower which is produced and traded in large quantities in Bangladesh. This flower mostly comes from Jessore and Chuadanga. Marigold is frequently used in marriage ceremonies and “Gaye holud” festival. This flower is sold as every 100pcs.

§      Tuberose: Tube rose popularly known as “Rajanigandha” flower in Bangladesh. This flower is one of the most frequently traded flowers.  It is used mostly in every occasion. This flower is sold at 2 – 3 tk per stick in retail stores but sold as every 50 or 100 pcs in wholesale market.

§      Gladiolus: This is one of the most frequently traded flowers. People use it in many occasions. Also sold as every 50 or 100 pcs.

§      Gypsi: This glower’s production is pretty limited. This flower generally comes from Savar and Narayangonj. Sold as per bundle.

§      Pom Pom: This flower looks like marigold, but little smaller than marigold. Generally comes from Savar. Sold as per bundle.

§      Kathbelly: This flower is available in less frequent basis. Kathbelly is used generally in Marriage ceremony occasions. Sold as per chain basis.

There are many other kinds of flowers and decorative leaves such “ Debdaru Pata ” is also available in Bangladesh. These flowers come from various districts of Bangladesh.

Flower market is gradually getting organized and structured and, in particular, with the introduction of the contract through specialist members, NGO (BRAC has started contract farming), to the shortening of the marketing chain, which is the market's efficiency. Find two general types of chains plays important role at this time, one for the contract-farming-chain and the other without a contract farming as follows -

Another in the levels chain of marketing margins are still determined by farmers and traders enjoyed in the study have received very motivating by USAID that the region is approximately the same size edges to wholesalers farmers Jessor, compared with the return of vegetables farmers.

8. The Development of the Market with a Value Chain Approach

Flower marketing value chain includes various marketing functions such as buying and selling, transport, communications, storage, packing, sorting, processing, financing, market information and public relations. Current situation of these features was checked is proposed.

Transport:

The flowers are generally transported in a very traditional and destructive way, both in the local market, as well as transport to distant markets.

Rickshaw, van, shoulder, night coach & truck was generally used by various intermediaries important means of transport. Farmers transport most of their products by using the shoulder to load the rickshaw, van, etc.-through the cycle. TRUCK, bus or buses used for transporting flowers from outlying regions to Dhaka City. Big bunch of lowers the different types are forced in the truck and results great post-harvest loss of flowers. Rickshaw van flowers are used to their stores to bring retailers in the Shahbag area. But at the time of delivery, flowers and various forms of transportation such as car rental, CNG car, and rickshaw are used.

When the flowers in fiber-board cartons have packed final form for certain flowers can and could be transported in a truck rack system, could have been achieved significant improvement in reduction of post-harvest losses.

Packing:

Flower bouquets in urban retail are carried out using a variety of materials such as polyethylene, ribbons, small bamboo baskets, etc. For high quality flowers like Gerber daisies dealer in small polyethylene wrap before it finally, markets. At the beginning of old newspaper used Gerbera farmers for packaging of flowers in a bundle. Now use some of those corrugated fiber board box. The two pieces of old cardboard boxes stuck together with scotch tape and remove the hinge-like middle of the box and Gerbera flowers 2-3 series. Recently flower businessmen created another type of bamboo boxes as packaging for Gerbera. How bamboo slippers are sharp, old news Papers are distributed in areas in order to keep the flowers in the field. In the past, farmers do not have the plastic bag Gerbera Cup use, to protect the sepals of Gerbera flowers. Gerbera Cup used Gerbera flower gives a better quality gerberas before the damage to protect and flower merchants and consumers. Gerbera Cup reduced transport costs by 50%. Flowers are packed in bundles, and each bundle usually consists of 50 flower sticks. This bundle is then placed in the bag for transporting, which increases the post-harvest losses. Corrugated paper-based packaging material suitable for export markets and public-private partnership can be taken in this regard in the eye.

Recently, SCDC demo training delivered Gerbera farmers on the preparation and using of Gerbera Cup. Component for the development of the supply chain (SCDC) took initiatives for the development of corrugated cartons and bamboos in discs cut curve polystyrene protected by and about the process of demonstration of different flowers

Sorting:

Farmers and traders of Orchid, rose and Gladiolus are generally their flowers on the basis of size, color, and defective. However, Gerbera and Anthodium are sorted according to size only. But there flowers no specific placement specifications in the country; therefore, there is no uniform.

Storage:

The usual practice to allow the flowers to a remote field heat to cool down some time after the harvest and afterwards they are packed. During packaging sprinkled water in order to maintain high humidity. The dealer usually use a rough method to the

Processing & distribution:

Currently flowers are not processed, but that has changed in shape, size and form. Retailers flowers to sort and arrange them in different alternative forms. The flowers are baskets, garlands, etc. mapped according to the order of preference for the buyer, and in the form of flowers. Tape, Cellophanes, paper, bamboo, and baskets are used as decoration materials.

Dealer:

These businesses play supplement to Dhaka and a valuable role in aggregating, packaging and transportation of flowers from Jessore. As already mentioned, a man integrate these dealers occasionally back and forth to increase the margins, but in most cases, the Middle East.

Flower Assembly:

There's an interesting additional work steps for many products sold in Bangladesh flower. Women are employed, string flowers for decorations or chains in one piece or a day; typically in Jessore, but occasionally also in Dhaka.

A large gap in the level of processing is a chain that will dramatically improve the durability, quality and probably the price of flowers. Although a cold chain for the current mode is probably not justified could manufacture and sale, this type of investment is considered, in addition to setting up the same system for vegetables or perhaps piggyback on existing potato chain.

Marketing information & intelligence:

Most of the dealers got their market information from market visit and interview and other dealers. Recently, the use of the telephone or mobile phone has increased for farmers and wholesalers cum merchant level for market information. International holidays can be traced to export information increase. The following table lists some of the most important days in connection with flowers in their shops to get. The flowers, which have long stemmed of orchids and Gladiolus, held usually on a cool place in a bucket of water, and never the sun drenched. Knowingly selling strictly change water after every 24 hours.

Action:

This seems very negligible compared to role play and serves mainly word of mouth. Still, one can imagine organized campaign, participation in international trade fairs for export market development.

9. Major Flower Business Holder Countries with Highest Revenue

Traditionally, the center of flower production has been near their largest consumers: the developed world, where Japan, Western Europe and North America were both major producers and consumers. The major consumer markets being Germany (22 percent), the United States (15 percent), France (10 percent), the United Kingdom (10 percent), the Netherlands (9 percent), Japan (6 percent), Italy (5 percent), and Switzerland (5 percent).

The Netherlands remains the center of production for the European floral market, as well as a major international supplier to other continents. The flower auction at Aalsmeer is the largest flower market in the world. Since the mid-1970s, the production and distribution of cut flowers in Netherlands has burgeoned. In 1995, Dutch growers produced over 8 billion blooms and the flower auctions collectively traded more than 5.4 billion guilders (about $3.2 billion) in cut flowers and potted plants, contributing over 4 billion guilders annually to the Dutch balance of trade.

Experts believe that the production focus has moved from traditional growers to countries where the climates are better and production and labor costs are lower. This has resulted in a paradigm shift in the floral industry. The Netherlands, for instance, has already shifted attention from flower production to flower trading, though it plays an important role still in the development of floricultural genetics. The new centers of production are typically developing countries like Colombia (second largest exporter in the world and with a market of more than 40 years old), Ecuador, Ethiopia, Kenya, and India. Other players in this global industry are Israel, South Africa, Australia, Thailand and Malaysia. New Zealand, due to its position in the Southern Hemisphere, is a common source for seasonal flowers that are typically unavailable in Europe and North America.

In Africa, Kenya is the largest exporter, supplying a large percentage of Europe's flowers, the industry there is represented by the Kenya Flower Council.

In South America, Colombia is the leading flower producer and exporter accounting for 59% of all flowers imported to The United States in 2006. The United States imports 82% of its flowers. Growers in the United States state that 3 out of 4 flowers in the United States are grown outside the US with Colombia being the biggest exporter. The United States signed a free trade agreement with Colombia and that has lowered the cost Colombian flowers in the United States. Ecuador has become, in recent years, the leading South American rose producer and is well known throughout the world for its high quality, large headed roses due to the high altitude location of its rose farms.

9.1.          Industry Segments (U.S.) Retail florist shops (2011, latest available): $15,307 Estimated average annual florist sales (2011): $362,318 Floral Wholesalers: $530 Domestic Floriculture Growers (in top 15 states): $5,419 Fresh Flower Growers: $280 Potted Flowering Plant Growers: $1,014 Foliage: $790 Bedding/Garden Plants: $1,537 Fresh Greens: $142 Potted Herbaceous Perennials Plants: $1,241 2012 Floriculture Crops Summary (2013) 9.2.          Where Flowers Come From (2012) Imports account for about 64% of fresh flowers sold by dollar volume in the United States. 9.3.          Top Import Countries (By Value) 2012 Colombia 78% Ecuador 15% Mexico 2% Other 2% Thailand 1% Guatemala 1% Netherlands 1% 9.4.          Top Fresh Flower Growing States California 76% Washington 6% New Jersey 4% Oregon 4% Hawaii 2% North Carolina 2% Florida 1%

10. Some Improvements Needed for Flower Business in Bangladesh to be one of the Highest Revenue Gainer

There is several improvement steps should be taken to improve this business in our country so that more people can earn money from this sector. Despite the problems and constraints identified by this study, huge domestic profit margins in flower production and marketing has clear indication that, if properly nurtured, Bangladesh has tremendous potential to claim a better share of the pie of global floricultural trade which is a huge industry today. Based on the Findings of the study, some recommendations for facilitating flower production and developing an improved marketing system in Bangladesh are as follows:

## Government and non-Govt. agencies should take a concentrated effort -

1.      To enhance flower production by train-up the flower-farmers,

2.      To provide appropriate production assistance and storage facility,

3.      To provide support farmers in marketing of the produced flowers,

4.      To train and assist the traders in processing, grading, storing and displaying flowers, and

5.      To allocate permanent market infrastructure in major cities for the self-governed flower markets in Dhaka and other major cities for facilitating flower trading.

## A Market Information System (MIS) should be developed for ease access of the stakeholders to required updates of the industry.

## Entrepreneur-friendly SME and credit policies and packages should be developed to ensure a balanced growth of the floriculture industry.

11. Problems & Prospects

Several studies and personal experience shows that the following problems areas in the flower market, but there are also some perspectives, to solve the problem.

Problems -

§      Lack of adequate storage facilities both on the field and retail.

§      Connect lacks sufficient transport facilities from the growing regions with high value market segments.

§      Lack of affordable packaging materials

§      Lack of market and technical Information.

§      Lack of ability was for the management of post-harvest of flowers.

§      Insufficient air space and complex customs regulations.

§      Lack of classification specifications for flowers

§      Lack of measures relating to various international certification schemes.

§      Lack of adequate financial instrument.

Prospects -

§      Development partners has been set up in this area and development assistance will probably be available

§      Extent of PPPS can be explored

§      Both development partners and private operators by this requirement for affordable packaging materials and SCDC developed some alternatives

§      DAM has already developed a nationwide agricultural marketing information system which flowers can integrate

§      Growing concern about qualification requirements, traders, farmers and other stakeholders

§      Addresses public sector now more about classification specifications for agriculture produces

§      There is growing concern in the public sector through certification systems

§      Rural microfinance is available.

12. Recommendations

If proper supply chain methodology can be developed and flower industry gets some further assistance from government and some other associations like NGOs then it could be a positive move for flower market of Bangladesh. For that some following matters can be effective -

Farmers’ Group Associations, CBOs   can   be   created   to increase their bargaining capacity and in case of international market farmers’ Marketing Group Association can be established with proper support.

Cool Chain from field to market shall be developed and specialized Storage Facilities shall be developed for local market. Beside this for international market cool Chain from Field to airport shall be developed and adequate storage space at airport should be created.

From the part of government Skill development training on Post-Harvest Management of flowers and ornamental plants is required for the farmers and traders as well. Also skill development training on Handling   of   flowers   and ornamental plants is required.

If those above mentioned formalities can be carried out properly then Bangladesh flower market will be one of the good possible sources of national income and its supply chain activity will be more flourished.

Read More