Executive Summary
Hospitals strive to create a conducive environment that bolsters patients’ well-being. Since the Women Wellness Research Centre (WWRC) opened in 2017, the institution’s management has struggled to allocate space for a flower shop to serve visitors despite the rising demand. The target market is the local Qataris and foreigners with high disposable income above $70,000 annually. They demand high-quality flowers when visiting their patients at WWRC hospitals.
The completion will arise from the existing external flower shops and online applications like Flo Wards. WWRC hospitals plan to implement pricing aligned with competitors to encourage visitors to buy flowers on-site rather than elsewhere. In addition, the WWRC hospitals will adopt a differentiation strategy to attract more customers to use their services. The business will adopt an exclusive distribution strategy by directly sourcing products from manufacturers and eliminating intermediaries. The business will also utilize social media advertising to create awareness and offer patients complementary flowers as a PR activity.
Introduction
People have used flowers on many occasions to express their feelings. In the hospital setup, family, relatives, and friends sometimes carry flower bouquets to show love, kindness, and support toward hospitalized patients and wish them a quick recovery. However, people’s greatest challenge is accessing flowers that meet the hospital’s requirements and have the intended meaning.
The presence of flowers can improve a person’s emotions, making them happy despite their desperate situation. Having flowers and plants within hospitals can help patients recover by lowering anxiety and stress levels (Sobreiro et al., 2021). People visiting the patient should have easy access to the flowers within the WWRC hospital without covering long distances to acquire the right flowers for a visit.
The hospital proposes to install a flower vending machine. It will be equipped with different bouquets of flowers for clients. These flowers will have different themes and be displayed under the lockable window of the vending machine. A refrigeration feature will be included in the vending machine. to ensure the flowers remain fresh daily. Within the hospital, the vending machine will operate 24 hours to ensure that the sick and their families and friends are served at any time.
Market Analysis
Market Trends
A market or industry’s general direction or movement is a market trend. Some of the market trends within the flower segment of the global economy are the increase in the demand for fresh-cut flowers (Transparency Market Research, n.d.). They are currently trending as an important way of showing love and care.
More people globally are using these flowers than plastic flowers. Therefore, the vending machine will be filled with fresh-cut flowers to meet the market needs. Another trend is that people tend to reduce contact with items, especially in hospitals. Our vending machine will ensure it provides the consumer with contactless and cashless payment to promote hygiene.
Competitors
Operating in a sector characterized by high levels of competitive rivalry can threaten an institution’s sustainability. The WWRC hospitals can incur greater market research and advertisement costs to meet the target market expectations (Lamb et al., 2020). The WWRC hospitals will exist in an industry with intense market competition, easy access to substitutes, and lower entry barriers.
The intense industrial rivalry will arise from the existing flower shops and online applications like Floward. Visitors can purchase flowers from external flower shops offering products similar to those of the WWRC hospitals. However, it might be inconvenient for customers visiting the patient at the hospital to go outside to buy flowers.
Furthermore, physical stores have time limitations on working hours. For example, most flower shops open at 9 a.m., close at 11 p.m., and close in the afternoon for 2 to 3 hours. The challenges with ordering online are that the deliveries can take time, it doesn’t offer 24-hour service, and the deliverymen are not allowed inside the hospital as per the hospital’s visiting policy. However, most guests show a tendency to purchase floral arrangements within the hospital premises because they have fewer logistical challenges. Thus, the business will have the competitive advantage of being set up in a convenient selling location within the hospitals and operating for 24 hours.
Market Segmentation
For the WWRC hospitals to achieve high turnover, they need to understand the nature of the market in which they operate. This is critical as it will enable the WWRC hospitals to position themselves strategically in the market while acquiring customers. One of the aspects the WWRC hospitals will consider is identifying the target audience for the flowers. This process will involve target marketing and identifying potential customers who can easily purchase corporate products (Kalam, 2020). After the identification process, the target market will then be evaluated based on geographic, demographic, psychographic, and behavioral characteristics
Geographical Segmentation
The geographical characteristics involve assessing target customers based on their location. Hence, the business will be located in WWRC hospitals, where most people visit their relatives and friends. In addition, flower vending machines will be established within hospitals, as most customers prefer buying flowers to ensure that the patient receives fresh-cut flowers, saving them time and money.
Demographic Segmentation
Our products will target people with high incomes. This group will include local Qataris and other people visiting the country to see their friends and families. According to data obtained from Statista (2020), Qatar’s per capita national disposable income has been on a constant rise between 2013 and 2017. In 2017, the country’s national disposable income was about 55.7 thousand United States dollars, an increase compared to previous years.
According to HSBC, the country was also ranked second globally with increased disposable income in 2016 (ZAWYA, 2016). This indicates that most of the residents of Qatar have a lot of disposable income, so they are not price-sensitive. But not just Qataris, the expatriates working in the country will also be targeted by the WWRC hospitals. According to Qatar law, residents’ employees can only sponsor their wives to be given a family residency visa if their salaries are above 10,000 QR per month, making them a middle-class target for our WWRC hospitals (Saakin, n.d.).
Based on the data gathered, our primary targets are mostly high- to middle-income people. This is because they have high purchasing power, making them less selective about price than low-income people. The WWRC hospitals will also target people working within the hospital settings. This group will be considered the second subset of our targeted audience. These people may also purchase flowers from our vending machine within the healthcare facility to celebrate their achievements and to gift their colleagues within the hospital.
Behavioral Segmentation
The WWRC hospitals will also apply behavioral theories to identify clients within the market. Behavioral segmentation often involves analyzing the target market based on their purchasing habits, environmental concerns, and brand loyalty (Gogoi & Jyoti, 2020). Our vending machine will be able to meet the clients’ needs by ensuring their concerns are taken into consideration.
The clients loyal to specific types of flowers will be able to get their products as the Machine will be equipped with different types of flowers, which will be continuously restocked. Our Machine will be fitted with software to support online transactions for customers who embrace technology. The WWRC hospitals will also be able to address the needs of clients concerned about waste production. Our system will run mostly on solar energy, and our products will be packaged in recyclable materials.
Psychographic Segmentation
The WWRC hospitals will consider psychographic segmentation to analyze their market. Psychographic analysis evaluates target customers based on their attitudes, norms, values, and personalities (Kotler & Armstrong, 2021). For example, most family members and visitors may prefer buying flowers within the hospital to avoid logistics challenges and to deliver flowers while still fresh. Therefore, the vending machine will satisfy consumer convenience by providing on-the-go access to grab a flower bouquet within healthcare facilities.
Product Strategy
The products are commodities and services offered to meet specific customers’ needs. Products are tangible items that offer unique experiences to consumers (Anderson, 2019). The WWRC hospitals’ product will be a flower vending machine. The flower vending machine is a more feasible option for the facility because it saves space. Some of the strategies that the hospital will adopt include the product differentiation strategy. This strategy will enable the hospitals to encourage a greater number of clients to engage with their offerings.
The process will involve improving the design, features, and quality of our vending machine to increase its value proposition over competitors’ machines. Product differentiation can be physical attributes like size, shape, and features, or perceptions like reputation, image, and other values (Marshall & Johnson, 2019). The WWRC hospitals will differentiate their vending machines from their competitors by providing a digital machine fitted with a cloud management system to check inventory, process bills quickly, and facilitate transactions.
The Machine will have a greater capacity of over 30 bouquets, serving more customers. To improve the customer experience, the system will also allow cash, online, and card payments. The vending machine will also have a cooling system to reduce the risks of overheating that may compromise its effectiveness. In terms of appearance, the Machine will be white and pink to complement the WWRC hospital painting and décor. In addition, it will have a transparent window to display the flower banquets and influence customers’ purchasing decisions.
Product Positioning
The product positioning of the Pretty Flowers Vending Machine in hospitals is based on convenience, accessibility, and quality. Product positioning based on this factor enables customers to acquire products easily, thus setting them apart from competitors (Saunders, 2021). Hospitals are often considered high-stress environments, and fresh flowers can help create a more calming atmosphere. By positioning the vending machine within the hospital, patients and visitors can easily access the flowers they need to brighten up their day or offer them as a gift to loved ones.
Moreover, the vending machine offers various flowers, including roses, lilies, and daisies. This ensures customers have diverse options, catering to different tastes and preferences. The Pretty Flowers Vending Machine will be strategically positioned in high-traffic areas within the hospital, such as the main entrance, cafeteria, and waiting areas. This ensures the vending machine is easily visible and accessible to all hospital visitors, increasing the likelihood of purchases.
Pricing Strategy
Pricing strategy evaluates the relative or perceived value that customers are willing to pay for a specific product. The price defines the WWRC hospitals’ margins and turnover rates (Lamb et al., 2020). The WWRC hospitals will apply a competitive parity pricing strategy to attract more visitors to purchase flowers within the facility than outside.
A competitive parity pricing strategy involves focusing on product prices by charging moderately compared to competitors’ prices. The firm targets less price-sensitive customers who can purchase the products without considering the amount charged. In Qatar, most flowers cost 10QR. Therefore, our bouquet of 10 flowers will cost 100 QR. The strategy will allow the WWRC hospitals to slightly reduce or increase the flower price to maintain the target customers.
Promotion Strategy
Advertisement
The business will adopt a hybrid strategy, integrating traditional advertising programs and digital media. Traditional advertisements use television, newspapers, and radio (Kotler & Keller, 2020). The advantage of a traditional platform is that it appeals to the older generation, families, and people within specific communities.
However, they will be less effective and costly, considering the WWRC hospitals target visitors and staff. Therefore, the most appropriate advertisement option is to display a video ad of the flower vending machine on the hospital screens in strategic high-traffic areas like waiting areas and entrances to capture visitors’ attention. The WWRC hospitals will also use eye-catching posters at the entrance and the waiting area to create awareness.
Moreover, the hospitals aim to use digital platforms to boost product visibility. Digital platforms are more cost-effective and efficient in customizing the message to a specific market share (Chong et al., 2023). This will be achieved by creating a digital marketing strategy using targeted online ads on Facebook, Twitter, and TikTok to reach the right audience.
Discount and Flash Sale
As mentioned, our vending machine will be in a high-traffic area within the hospital’s entrance to enhance visibility and accessibility. It will be associated with clear instructions to enhance usability and avoid resistance. The machines are fitted with screens to display discounts offered to our customers. The WWRC hospitals will offer a 10% discount for the first 20 customers who use the vending machines to purchase the products.
Apart from the discount, the WWRC hospitals also plan to use a flash sale promotional strategy to increase sales of the products. Flash sale is a form of discount mostly offered by stores for a limited time (Nastiti, 2020). This strategy will mostly be employed when the WWRC hospitals want to restock the Machine with fresh flowers and remove leftover flowers. In addition, flash sale ads will be placed on our social media pages to reach our wider audience.
Distribution Channels
The company intends to implement a selective distribution approach, meaning the WWRC hospitals will control the entire value chain process. This strategy will reduce the risks of customers accessing counterfeit products (Steenkamp, 2017). The WWRC hospitals will source flowers directly from farmers and companies to eliminate intermediaries and lower costs. The WWRC hospitals will also source Machines directly from manufacturers.
Selling would be directly through vending machines. Products are displayed through the transparent windows and digital screen of the Machine. After payment, the Machine will dispense the bouquet bought. The Machine will be placed in a strategic high-traffic location for easy accessibility. All Previous will facilitate and enhance accessibility, selection, payment, and direct product collection from the Machine.
Conclusion
The target customers for the business proposed by the WWRC hospitals are high-income individuals who are less price-conscious and visiting patients in the facility. The WWRC hospitals’ main competitors are online Flower vendors and flower shops outside the hospital. It is recommended that the WWRC hospitals should the WWRC hospitals should embrace a differentiation strategy to maintain a competitive advantage.
The differentiation strategy will involve improving the product design and features to increase the value proposition. The WWRC hospitals should also adopt a competitive pricing strategy, as target customers are less price-sensitive. The hospital must also use a selective distribution strategy to control the entire value chain process.
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