Flores del Este (A): A Costa Rican Florist Considers Online Opportunities

by: Michael Metzger

Publication Date: September 9, 2019
Length: 18 pages
Product ID#: 3-179-807

Core Disciplines: International Business, Marketing/Sales, Strategy & Management

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Teaching Note

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Description

In 2006, Lorena and Victor Hugo Delgado—owners of Flores del Este, a small flower shop in Costa Rica—were deciding whether to invest their very limited resources in developing an online presence to increase awareness and sales. The Delagados had noticed their customers were visiting their physical store location less frequently and were making more purchases online with competitors who had e-commerce websites.

However, the Delgados had many questions about entering the online marketplace. Would customers continue to shop at the store location once there was a Flores del Este website? How much would it cost to develop, launch and maintain a website? How soon could they recoup the costs to develop it? They decided to contact MiWeb, a San José web development company, to assist them.

The case explores the characteristics of the retail florist industry in Costa Rica, including consumer behavior, market segmentation and differentiation.

 

Teaching Objectives

After reading and discussing the material, students should:

  • Recognize the importance of market research prior to investing in an e-commerce platform and online marketing.
  • Identify and discuss the consumer segments in the Costa Rican floral industry.
  • Develop points of differentiation for Flores del Este, based on a review of the market.
  • Describe the breakeven point required, in terms of monthly sales, for Flores del Este to invest in an online presence.