Because Mother's Day always occurs within the same week as graduation and move out day, then this is an opportunity to create brand awareness and sell multiple items in a single transaction.

For example
If my mother is attending graduation or helping me move out from a dorm to an apartment. Or if my family is attending graduation and purchased a graduation lei online to celebrate, then I would probably spend the extra amount of money on a beautiful bouquet of flowers and not a $1-$3 Heather made USC peanut butter cookie, especially when the parent told us specifically no nuts, that "her child has a nut allergy".

Additionally, the cookie market around USC is saturated as every shop, restaurant, and vendor has cookies or a similar item. Adding exclusive branded cookies with a professional USC trojan logo would be an option, but we already had that in our business' product mix.

Demand:
Is there a demand for graduation Hawaiian leis and flowers?

Yes. Many students receive and wear Hawaiian leis during graduation. Graduation is a personal event with many friends and family attending. One of the many fashionable items that are worn during the graduation ceremony and received as a gift are Hawaiian Leis.

The Hawaiian Lei's per skyline Hawaii is " a common symbol of love, friendship, celebration, honor or greeting. In essence, it is a symbol of Aloha. In ancient Hawaii, wearing a lei represented wealth, royalty and rank" and can be found in numerous forms. Thus, the opportunity to be sold with various price points. Additionally, from a marketing perspective, having your product as a "highlighted must have item" during graduation photos symbolizing the grand culmination of 16 + years of schooling is a perfect way to have your product and services close out the school year.

Yes. Flower arrangements are in super high demand several months of the year (Bloomberg sales charts for Mother's Day and Valentines Day). Those two events alone would be a perfect addition to our product mix with respect to sales and operations. Those months were our slow times, as seen highlighted with cardinal and gold ovals within the sales revenues charts for years 2013-2016.

There is an all year demand for flower bouquets at U.S.C.'s second campus, the Health Science campus and their multiple other hospitals and treatment centers. Other areas of opportunities; weddings, funerals, holidays, etc.

Profit margins could be shared with sororities as a fundraising exclusive partnership. Sales trends with students at the university include date nights, gift exchanges, etc. Each year is a new group of students. Thus, guaranteed partnerships would be guaranteed sales.

Barriers:
Are there barriers to market entry?

Minimal. Long distance deliveries that can be minimized with partnerships and prices in line with our current pricing structure.

Competitors:
Are there competitors?

Between 2014-2016, on campus, only two. The 1st only used deliveries for guests at Radisson Hotel, and they agreed to a trial partnership. Florist utilization was 15% of current market with customer base targeted at hotel guest services (ONLY). The 2nd was only used for weddings and large events with our sister business USC catering.

Competitive Advantages:
Do we have competitive advantages?
Many!
See Rough Draft of USC hospitality's competitive advantages.

Long Term Strategy

Direct from Producers
Using International Connections & Supply Chain Advantages to Lower Final Costs and Corner the Market.

Side Note: BIGGER PICTURE
This market is at every college and university. Plus or minus social economic fluctuations.

Operations Optimization
Cookies and flowers have similar ordering processes and delivery times from vendors. Cookies are stored in freezers first, baked fresh, then left out at room temperature for optimal results. Flowers can be prepared in the same size areas similar to the kitchen prep areas. However, they need to be prepared away from hot ovens as they are temperature sensitive. Flower bouquets can be stored in regular refrigeration units used for produce, but tropical leis need higher temperatures and more humidity. Thus, during graduation, temperatures must be adjusted for optimal freshness and possible humidity added. Cookies on campus are sold in a saturated market and can create excess food waste if not sold or managed properly. Both items are perishable.

Flowers are prepaid only. Thus, loss of goods would be through shrinkage, incorrect storage temperatures/room/ etc., or damage during prep or delivery.


The cost of labor is similar for both items. However, during the targeted months of February and May, labor is scarce for kitchen workers as demand is high. USC has an overabundance of fast food, restaurants, and dining halls. Thus, during these events, Valentine's Day, Graduation, and Mother's Day labor is allocated to food prep and services. In contrast, labor is abundant for floral preparation because different skills are required. Thus, adding this mixture of floral products would create new jobs and services. If talent and labor were available without decreasing services in other areas, then these floral positions could be used as a source to increase wages. New jobs or increases in wages are both great in my book.

Shrinkage During Graduation/Move Out-Day
Excess products from improper planning, lack of secure hand-off processes, and secure storage can lead to excessive inventory on hand and an opportunity for shrinkage. For example, cases and cases of coffee, to an extra large 8 foot tall industrial popcorn machine, to multiple cases of paper goods can magically disappear during this high volume work week. The loss of inventory equals lower inventory values. The cost of goods increases proportionally, which leads to major problems as financial reporting ends the following month. Additionally, excessive shrinkage can cause major interruptions in the final exchanges of goods and services, giving the appearance to customers of a poorly run business. This appearance of a poorly run business will result in lower customer satisfaction rates, a decrease in returning customers, and an increase in customer acquisition costs.

Sales Forecasting
Normal sales forecasting would consist of guaranteed event sales plus or minus % increase of student population, work population, local population, etc. Sales forecasting after product development with an internet business/mobile delivery service is easy once new products are created. The new products can be trickled out a little at a time to ensure operations time and standards are developed that ensures your customer’s complete satisfaction.

Once operation standards are developed and all items are costed correctly and listed online, then new products, product lines, and services can be launched to a larger customer base. Additionally, once the standards are created and put in place, sales forecasting and revenues collected are more accurate and easier to track. Because all sales revenues are collected in advance, before the sale occurs.

On a final note. The graduation Leis and floral bouquets price ranges would fit perfectly within the business' current sales structure as shown by the sales per guest and sales per customer KPI index.

In comparison...
Shark Tank company Bouqs already has $640 million in lifetime sales.
Bouqs a similar company founded in 2013 the same time as this market analysis and featured on shark tank raised 24 million in funding and since 2021 has delivered over "140 million flowers worldwide".