Heaven Scent Floral Designs: Strategic Innovation and Market Analysis

This report provides a detailed analysis of Heaven Scent Floral Designs, a florist company in Luton, focusing on its strategic innovation, current market strategy, business environment, and risk management. The report identifies the company's marketing and sales strategies, including the use of customer data platforms, social media marketing, and personalized customer service. It analyzes the business environment and industry using Porter's Five Forces model, assessing the threat of new entrants, bargaining power of buyers and suppliers, the threat of substitutes, and the intensity of competitive rivalry. Furthermore, the report utilizes a risk management framework to identify, measure, mitigate, report, and govern risks and issues faced by the company, such as the impact of Brexit and COVID-19. The analysis concludes with recommendations for Heaven Scent Floral Designs to enhance its operational activities and marketing strategies to mitigate risks and foster business growth. Desklib provides access to this and similar solved assignments for students.

Strategy and Innovation

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Identifying the company's current strategy..................................................................................3
Analysing the business environment and industry of the company.............................................4
Understanding risk and issues......................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Strategic innovation refers to the new or redesigned strategies of an organization in a
innovative way in order to achieve the growth and the success of the business and also creates
competitive advantage (Giantari and Jatra, 2019). It is necessary for the firm to use this type of
innovation so that it can adjust with the changing speed of technology. Heaven Scent Floral
Design is a florist company in Luton and have 10 years of experience. They are specialise in
funeral tributes and provides their services to commercial and local community (Heavenly Scent
Floral Designs, 2020). This report shows the current strategy, business environment, competitors,
market details and the current trends of the industry.
MAIN BODY
Identifying the company's current strategy
The Heaven Scent Floral industry is redesigning its strategies according to the change in
the technology and the current market situations. The current strategy of the firm are as follows-
Marketing strategy- Marketing plays an important role for any business growth and success.
Customer data platform plays an important role in preparing the marketing strategy. CDP is a
software that helps the company to improve the marketing strategy by providing data related to
target customers. Marketing can be done through newspaper, T.V., social media, etc. (Colombo
and et.al., 2021). The current marketing strategies of Heaven Floral company are:
 Setting of goals: The Heaven Scent Floral sets its marking goals in such a way so that
they can attract or engage more and more customers daily. The other goals of the firm are
to promote its services and products and also to make their business as a brand.
 Free gifts: The Heaven Floral offers free gifts with the purchase of their products to the
customers (Salunke, Weerawardena and McColl-Kennedy, 2019). This strategy help the
firm to reach new customers and to attract the existing customers towards them. Things
to be offered as free gifts can be pens, bags, calender, hats, etc.
 Use of social media: In this new era of digitalization social media plays a major role in
the marketing of the Heaven Scent Floral. As the use of social media help the company to
post their products at various platforms or websites such as Instagram, twitter, etc. It is
also helpful for the advertisement of the flowers and the bouquets along with the services

offered by Heaven Floral. With the help of social media the enterprise can spread its
business through a website. Sending emails: Heaven Scent Floral send personal emails to the customers in order to
build the trust or faith of the buyers (Blankesteijn, Jong and Bossink, 2019). The
company send greetings on birthdays and thank you after every shopping of the
customers. It also post special offers, schemes, price offers and discounts on emails easily
and can save time and cost of the enterprise. As Heaven Floral is specialise in funeral
tributes so it personally send the condolence greetings in that difficult time of customers.
Sales Strategy- This strategy is based on the sales of an organization according to the demand of
the customers. It can be divided into two parts such as direct sales and indirect sales.
 Direct Sales- Heaven Scent Floral plans its direct sales by offering the personalized
services to the customers at the time of funeral in order to give them tribute or
condolence. The firm also keeps the adequate information and data of the buyers such as
their name, address, email and their preferences (Chen and Liu, 2019). This will help the
Heaven Floral to build the faith of the consumers. The enterprise also offers 24*7
services to attract the customers.
 Indirect Sales- Heaven Scent Floral Designs indirect sales refers to the sale of the
products and services to the other florist and the establishment of the partnership in order
to fulfil the needs and the demands of the buyers.
Analysing the business environment and industry of the company
The Heaven Scent Floral Design is a type of floral industry and provides cut flowers and
the floral arrangement for every occasion and provides flowers for wedding, events, funerals,
table arrangements, balloons, etc. In this industry company purchase flowers and other
accessories from the wholesalers, flower farms and then sell them to the general public. The
Heaven Floral source their goods from local market as well as internationally. It provides goods
and services from a private studio and also have a remarkable 10 years experience in the floral
industry.
In order to analysis the business environment and industry of the Heaven Floral along
with the consideration of main competitors, market details, competitive position and the current
trends of the company , Porter's Five Force Model can be used which is based on five elements.
They are as follows-

1. Threat of new entrants (Low)- New competitors enters in the market along with the
strategies of lower price, cost reduction, etc. to attract customers (Hole, Snehal and
Bhaskar, 2019). Heaven Scent Floral tries to manage all these challenges and put efforts
in order to reduce the threat of new entrants by introducing new and innovative products
and services. The economies are very high for the new entrants so it is difficult for them
to earn high profits and to compete with the standards of Heaven Floral.2. The bargaining power of buyers (Moderate)- Buyers bargain a lot they want quality
products at low prices and always want discount and offers this puts pressure on Heaven
Floral. So in order to reduce the bargaining power Heaven Scent give special offers of
prices, discount and free gifts to the customers.3. The bargaining power of the suppliers (Moderate)- Heaven Scent Floral source the
goods locally as well as internationally from various suppliers and they use their
bargaining power to withdraw higher prices from the company which affects the overall
profitability.
4. The threat of new substitutes (High)- As the new substitutes are entering in the floral
industry the threat of Heaven Scent Floral is increasing as they offers goods and services
on the same prices (Fan and et.al., 2020). Heaven Scent improves the quality of its
products and makes it as a brand in order to compete with the other substitutes introduced
in the market.
5. The intensity of competitor rivalry (moderate)- Heaven Floral is facing a number of
competitors in the market as the demand of the flowers is increasing for the events.
Heaven Floral examine the intensity of the existing competitors and try to expand its
business by reaching new customers.
Understanding risk and issues
Risk and issues of Heaven Scent Floral Designs can be understood with the help of Risk
management Framework. It is consisted of majorly 5 steps. Following are the steps of risk
management framework that help the company to understand the risk and issues.
Risk Identification: it refers to the process of the finding risk it includes all the
challenges and risk that are currently faced by the company and near future challenges. Various
risk and issues are faced by the company. Brexit has impacted the business growth (Sampson,
2017). Unstable economic condition raised due to COVID-19 still has a great impact on the

business. Change in taste and preference of the customers and trends are the major risk of the
Heaven Scent Floral design.
Risk measurement: it refers to the impact of the risk on the business. These risks lead to
the decrease in the growth of the business and people do not prefer gatherings and decorations
due to the impact of the COVID-19. The business is getting downwards as the cost in the
maintenance of flowers is increasing and demand of the business very low.
Risk migration: Steps can be taken to minimize the risk. Increasing customer
engagement is the best approach to reduce the risk of the business (Kavassalis and et.al., 2018).
Use of social media can increase the interaction and engagement of the people. It will lead to the
increase the customers. Low profit margin is also an effective way to attract the customer as
people are seeking low budget service after the impact of Brexit and coved.
Reporting and monitoring: It is the important prat of the risk management as it helps the
business to monitor the risk and identify whether it is decreasing or not (Laine and et.al., 2021).
Reporting done on the basis of past results and comparing the progress to get the information on
the risk management. Risk reports must be sent to risk personnel who have authority to adjust
risk exposures.
Risk governance: It is the process that ensure that the all the employees to perform their
duties in accordance with the risk management framework. Heaven Scent Floral Designs should
bring the change in the operational activities to reduce the risk and issues of the company. It will
impact the marketing strategy of the business and lead to the increase in the growth of the
business and that will decrease the challenges and risk of the business.
CONCLUSION
From the discussion in the report it can be concluded that, Heaven Scent Floral Designs
offers flowers for every occasion. Current strategy of the company were discussed that showed
company's position and the approaches to grow in the market. Business environment and
industry of the company were also analysed. Porters 5 forces were used to consider main
competitors, competitive position, market details current and future trends of the company.
Appropriate tool of risk management framework helped the business to identify, measure,
migrate, report and govern the risk and issues of the Heaven Scent Floral Designs.

REFERENCES
Blankesteijn, M., Jong, F.D. and Bossink, B., 2019. Closed-open innovation strategy for
autonomous vehicle development. International Journal of Automotive Technology and
Management. 19(1-2). pp.74-103.
Books and journals
Chen, J. and Liu, L., 2019. Profiting from green innovation: The moderating effect of
competitive strategy. Sustainability. 11(1). p.15.
Colombo, M.G. and et.al., 2021. What drives the delegation of innovation decisions? The roles
of firm innovation strategy and the nature of external knowledge. Research
Policy. 50(1). p.104134.
Fan, G.F. and et.al., 2020. Forecasting electricity consumption using a novel hybrid
model. Sustainable Cities and Society. 61. p.102320.
Giantari, I.G.A.K. and Jatra, I.M., 2019. The Role of Differentiation Strategy and Innovation in
Mediating Market Orientation and the Business Performance. Economic Research. 3(6).
pp.39-60.
Hole, Y., Snehal, P. and Bhaskar, M., 2019. Porter's five forces model: gives you a competitive
advantage. Journal of Advanced Research in Dynamical and Control System. 11(4).
pp.1436-1448.
Kavassalis, P., and et.al., 2018. An innovative RegTech approach to financial risk monitoring
and supervisory reporting. The Journal of Risk Finance.
Laine, V., and et.al., 2021. A risk management framework for maritime Pollution Preparedness
and Response: Concepts, processes and tools. Marine Pollution Bulletin, 171, p.112724.
Salunke, S., Weerawardena, J. and McColl-Kennedy, J.R., 2019. The central role of knowledge
integration capability in service innovation-based competitive strategy. Industrial
Marketing Management. 76. pp.144-156.
Sampson, T., 2017. Brexit: the economics of international disintegration. Journal of Economic
perspectives, 31(4), pp.163-84.
Online references
Heavenly Scent Floral Designs, 2020. [Online]. Available through <https://heavenly-
scent.co.uk/>

APPENDIX
Risk management Framework
This Framework is used to forecast, identify and reduct the factors that may
affect the growth of the business negatively.

Risk management Framework
Customer Data Platform(CDP)
It refers to the software that provides all the details related to the customer. The needs
and desire of the customer is measured with the help of customer data platform. The database of
CDP can be segmented in a nearly endless number of ways to create more personalized
marketing strategies.

Porter's five force framework
Porter's five force framework can be used for analysing the market situation that are
based on these five elements such as threat of new entrants, buyer power, supplier power,
competitive rivalry and threat of substitution.

Illu
stration 1: porter's five force framework