Case Analysis of Ferns N Petals

Problems faced:
 When he first opened the businesses and before Ferns N Petals had a franchise, he
came through a number of issues.
 Because flowers are perishable, he had to purchase flowers from growers rather
than wholesale markets or mandis that sold local flowers, and there was no idea of
gifting flowers at the time.
 There was no professional or florist artist on hand to design a flower bouquet, and
there were no training facilities to assist florists.
 FNP was shut down in 1995 after the Municipal Corporation of Delhi initiated a
crackdown on unlawful commercial operations, putting Ferns N Petals in debt to the
tune of Rs 1.4 million and forcing Vikas Gutgutia to sell flowers on the side of the
road.
 He was spared when he was offered a contract to decorate flowers for a wedding
ceremony at the Taj Palace, a 5-star hotel. The hotel management was so thrilled
with Ferns N Petals' efforts in wedding decoration that they made tie-ups that
enabled them pay off the loan. The reason behind this is because Ferns N Petals'
wedding income is substantially bigger and has a better profit margin.

Possible Solution:
In 1999, Ferns N Petals opened its first franchise location in Faridabad, South Delhi.
Franchising allowed Ferns N Petals to avoid worrying about high store rentals or owning the
store because it is handled by the Franchisee, and the Initial Franchise fee and Royalty play a
critical role in developing and maintaining the company's own outlets, as well as assisting
the Franchisee with store marketing and other aspects of procurement. The franchise
provided the franchisee with some flexibility, such as the ability to purchase fresh flowers
from a nearby wholesale market, allowing them to have pricing flexibility.
Because FNP is picky about shop sites and most of its stores are located on main streets,
store rent is exorbitant and owning a store is prohibitively expensive, franchising is the
greatest choice they have.

Ferns N Petals is a franchise that follows a certain model.

 FNP is a Business Format Franchise since they not only give the Franchisee with a
licence to sell FNP products and services, but they also provide other assistance,
such as sending a Visual Merchandising team to design the shop every three months.
 Provide technology assistance, such as air conditioning, a computer, and a music
system.
 The Franchisee receives numerous management, sales, and technology training
programmes, as well as floral management instruction.
  Adding professional staff to the shop for the purposes of storing and maintaining
store layouts, as well as bouquet packaging
 Providing a shop operation manual to ensure that the store is managed in
accordance with FNP service standards.

Product Groupings:
Complementary products like:
 Artificial flowers.
 Bouquet flowers.
 Flower vases.
 Photo frames.
 Product bundles for giving, such as a partnership with Archies to sell flowers and
greeting cards.

Target Markets
 Wedding segment
 Gifting for valentine’s Day, Rose Day
 Festive seasons like Diwali
 Women in south India wear flowers in their hair as a result of the demographic
transition in India, which has resulted in an increase in their discretionary money.
 Home decorations
 Upstream customers

Questions:

1.What was FnP’s current business model? How different channels enabled franchising
model?
-FNP's current business model is a Business Format Franchise, which offers the Franchisee
with not only a licence to sell FNP products and services, but also a variety of support
services.
Different channels have enabled franchising models, such as the online website, which has
improved client accessibility at any time and the orders placed through the internet. The
order is delivered to the nearest franchisee location, which is around 2 kilometres away, so
that the consumer receives fresh flowers within a reasonable time frame. Customers must
place their orders before 11 a.m. for same-day delivery.
FNP wedding is a different channel as well, but the company complemented its franchisees'
and own stores' operations directly as well as through all of its supporting efforts.

2.Was it advisable for FnP to extend the franchising model to Wedding business? Why or
why not?
-Yes, it is advisable for FNP to expand its franchising model to the wedding industry because
thematic weddings with customised décor settings can cost up to Rs 10 million in a single
wedding, which is a significant sum, and there is a demographic shift in India's middle-class
families, with increased disposable income due to a variety of factors, including people's
desire to have lavish weddings. During the wedding seasons of October to February and
April to July, if the firm is able to generate a significant amount of revenue from the
wedding sector and hotel parties. There will be around 15.5 thousand marriages in 2020,
making this a big business potential for the FNP. As a result, FNP chose franchisees in five
cities across north, central, and southern India, and provided them with assistance in the
form of a complete franchise training programme, Throughout the season, exclusive
wedding décor ideas are available. Infrastructure assistance is already in place. Manpower
that has been trained, At FNP Select, you'll find the most up-to-date wedding accessories at
affordable rates all in one place. Props available for rent or full purchase through the FNP
Prop Shop, with the help of 20 international designers.