18 Pages Posted: 21 Oct 2008
Kuhn Flowers is an extremely successful florist in Jacksonville, Florida. The case describes Kuhn's marketing and operations strategies, emphasizing the synergies between them. As backdrop to the case, the trends in the flower retailing industry are described along with the more recent entry of Wal-Mart and other "power" retailers.
Rev. July 31, 2009
Bill Cutting and Harry Graham, co-executives of Kuhn Flowers, drove along the St. John's River after visiting the Kuhn Flowers store in the Ortega neighborhood of Jacksonville, Florida. Although their offices were located at the company's headquarters in the Beach Boulevard store, Cutting and Graham enjoyed visiting Kuhn Flowers' other locations to talk with employees and see that the stores were running smoothly. Kuhn Flowers had a family company feel to it; a legacy of the founder, Robert Kuhn. Many of the company's employees, for example, had been working for Kuhn Flowers for five years or more and were intensely dedicated to the company.
Since taking over the company in 2001, Cutting and Graham had continued the company's success (see Exhibits 1 and 2 for financial information) including maintaining its position as the largest retail florist in the Jacksonville area for the past 30 years. In comparison, its closest competitors among other retail florists in the area were only about a quarter of its size.
Despite this success, Cutting and Graham were concerned about the changes that the floral industry had experienced in recent years. One such change was the increasing competition among channels, especially between retail florists like Kuhn Flowers and mass-market retailers such as supermarkets, Wal-Mart, and club stores. Developments in the industry's supply chain had also made it easier for larger companies to import flowers directly from growers at lower cost without diminishing the quality of the flowers.
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Keywords: Marketing, Strategy, Retailing, Service, Operations
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