PETALS “Flowering through a unique Franchising model” PRESENTED BY APO 1 Case Brief Founded in 1994 by Vikaas Gutgutia, FNP revolutionized the floral market in India with its fresh flower delivery and home decoration services. Inspired by a disappointing flower order experience, Gutgutia recognized the need for a quality florist in Delhi and founded FNP in 1994, initially with a small investment and a store in South Delhi. FNP rapidly expanded through a combination of company-owned and franchised outlets. The network grew from 28 stores in 2002 to 141 stores by 2012, with 88% being franchisees. Innovative Franchising Model with: Diverse product range offering Multiple revenue streams, Awards and recognition for top-performing franchise outlets. Since, Flowers are deeply rooted in Indian culture, used for celebrations, daily decoration, gifting, and more, FNP recognized this shift towards quality and variety in flower purchases. Gutgutia's early challenges included managing operations and sourcing expert florists. FNP's commitment to fresh flowers drove innovations in sourcing. FNP diversified into e-retail, premium stores, partnerships, B2B sales, a dedicated call center, and exclusive collaborations with fashion designers. FNP's plans for international expansion and backward integration into floriculture and focuses on branding, marketing, and consistent delivery for future success.
Conclusion: FNP's innovative franchising model transformed the floral market in India by focusing on quality, diversification, and extensive franchisee support, resulting in remarkable growth and customer satisfaction. Q1. HIGHLIGHT THE MAIN CHARACTERISTICS OF THE FRANCHISING MODEL USED BY FERNS & PETALS. HOW DOES IT DIFFER FROM THE CONVENTIONAL FRANCHISING MODEL?
SUPPORT MONITORING STREAMS Visual Surprise Visits E-Retail Merchandising Customer Feedback Premium Stores Initial Stock Specialized Retail B2B Selling Training Programs Software Dedicated Call Vendor Database Center Sharing
LOW FRANCHISE AWARDS & FUTURE
TURNOVER RECOGNITION EXPANSION Only 1% termination rate Motivating Excellence International Growth Floriculture Integration Q2. EXAMINE THE COMPETITIVE SCENARIO IN THIS SEGMENT. DISCUSS MAJOR COMPETITORS AT PRESENT. IS THE NATURE OF COMPETITION EXPECTED TO CHANGE IN FUTURE? IF YES, HOW? Competitive Scenario- The online flower delivery market in India is fragmented, aiming to differentiate themselves by offering unique flower arrangements, personalized options, and convenient delivery services. Some of the major competitors of FnP are- 1. IGP.com 2. Winni 3. Floraindia.com 4. Phoolwala.com 5. Bloomsvilla.com 6. Florista 6. Spring Blossoms 7. Floral Mall Future Trend The Indian floriculture market size reached INR 231.7 Billion in 2022, and is expected to reach INR 460.6 Billion by 2028, exhibiting a growth rate (CAGR) of 13.1% during 2023-2028. With the change in government policies and efforts to promote floriculture- new competitors can enter the market, and imports are likely to increase With the adoption of the western culture of sending flowers for almost all occasions, the market for flowers is growing The competitive scenario might evolve with players like Big Basket, Country Delight, etc. entering the market. BB has already launched a subscription model-based flower delivery system- helping them tap into the daily flower requirements, especially used for religious purposes FERNS & PETALS SHOULD EXTEND ITS FLOWER FRANCHISING MODEL TO THE WEDDING BUSINESS Why? Modifications required Large and growing Identify and recruit qualified market franchisees Strong brand Train franchisees on wedding reputation and flower decoration and network of management franchisees Provide franchisees with a wide Deep range of flowers and wedding understanding of décor items flower industry Develop a robust logistics and wedding system market Launch a targeted marketing campaign THANK YOU!
