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Ferns N Petals – Flowering

Through A Unique
Franchising Model
Aditya, Anmol, Pranav, Shelly, Yatendra
Group No. 2
Industry Analysis

•Organized retail grew in India in 1990s.


•Growth opportunity in niche business.
•Use of Flowers –
•Traditional indian celebration – decoration in home – corporate offices.

•People shifting from price to quality aspect cause of increased income.

•Flowers sold by vendors were of low quality.


Complementary Initiatives

E-retails – Own FNP Flori – Exotic Valaya Ferns N B2B Selling Dedicated call centre FNP Tahiliani – Tarun
website & tie up with flowers – Premium Petals – JJ Valaya Thiliani fashion
online gifting portals fashion designer designer

Backward integration FNP Wedding


– set up a floriculture
plant
Organised Retail Market in India 1999-2000

Appointing
Economic
franchisees,
liberalisation,
long term
hence rapid
revenue
growth
atream

Household Consuming
disposable class
income • ‘94/’95 – 29 M
• 1990 – 69,249 INR • ‘99/’00 – 55 M
• 2000 – 93,542 INR
View of an FNP outlet
 Archies, mutual promotion
Tie-ups with  Taj Palace, Maurya Sheraton and Hyatt Regency
corporate  ICICI Bank, Axis Bank, Indusind Bank, Reliance
Mobile
entities
Growth

142

Growth in FNP
96
91
86

retail stores 60
72

48

15 15 16
12 12
10
7

2007 2008 2009 2010 2011 2012 2013

Own Stores Franchisees


Value Proposition of FNP
1) Convenience - Free home and midnight delivery
- Variety of products like home décor, Candles, Vases, Potpourri etc.
- Franchises and shops in main city area.
- Online ordering and payment.

2) Supply and logistic – Very efficient logistic.


- Own warehouse and distribution hubs so fresh and quality flowers to customers
- Backward integration to have more control over quality.

3) Service – Niche products which is not easily available elsewhere.


- Quality standard of flowers.
- Free home and midnight delivery.
- online ordering and payment.
- Call center support to customers.
Challenges for FNP
• In domestic market they can face competition from few competitors from multi city operation.
•High real estate cost to open shop.
•Ensuring consistent and wow delivery.
•Replication of existing franchising practices in wedding segment.
Thanks