2. Presented to: Sir Sikander Khan
Presented by: Umair Zafir
Hira Razzaq
Samar Rahi
Zia Ullah
Zahabia
Saira
3. Introduction
They started work in early 1981 on the East Coast of the
United state.
Vermont Teddy bear Principle activity is Direct
marketing in the gift delivery service.
After ten year they became 80th fastest growing
company in United states.
VTB went on the stock exchange in new York to
finance further expansion.
VTB began a new business segment in fiscal 2001 with
its send AMERICA subsidiary selling handicrafts and
food stuff made by US artisans and growers.
4. Business Segments
1. The Bear Gram service:
it involves sending personalized teddy bears directly to
recipients for special occasions such as
Birthdays, Anniversaries, weddings, and new babies, as well as
holidays such as Valentine’s Day, Christmas, and Mother’s Day.
2. The Pajama Gram service:
includes an item from a broad assortment of
pajamas, gowns, robes and spa product delivered with free gift
card, lavender bath tea an a ‘do not disturb’ sign, all in a keepsake
hatbox.
3. The Tasty Gram service:
It provides variety of regional food specialties such as NY
Carnegie Deli Cheesecake and Gino’s Chicago Deep Dish
Pizza.
5. Business Segments
4. Calyx & Corolla:
The company has arrangements with 17 growers most of
which are located in Florida and California. Certain verities
of fresh cut flowers are flown in from farms in Ecuador,
Colombia, Thailand and Holland to the growers’ import
warehouses in the United State.
5. The Retail Operation Segment: it provides two retail
locations and family tours of the teddy bear factory and
store.
6. The Corporate Segment: the main theme is to develop
this segment that organization proactively develops
opportunities in the corporate affinity market and certain
wholesale markets.
6. Q:What kind of difficulties would Vermont Teddy Bear
meet if it were to internationalize its business?
Culture Differences:
Pricing competition
Financial and marketing recourses
Brand awareness
Hindrance in Building customer relationship
De globalization
7. Q:How should the Company penetrate the foreign
markets?
By Internet:
as they already had great experience of their local market to
identify their customer needs focusing on customer service
including last minute gift delivery and personalization they
expended their contact centre.
In 2005 nearly 60% of the orders were received via the
internet.
By Physical store:
At home country they have established two major retail
store which contribute 4% into total revenue in 2005. They
can penetrate into foreign market with this segment but
with fewer one better for them.
8. Q: Discuss the market potential for the six operating
segments and Bear to Business program in India?
The Bear Gram segment:
This segment has great potential in India people love to
celebrate Birthdays, anniversaries, weddings, and new
babies, as well as holidays such as valentine day and
Mother day.
The Pajama Gram segment: Now a days India is one of
the huge Asian market where peoples like to dressed up
with pajama, gowns, etc. VTB has broad assortment of
Pajamas, gowns etc.
The Tasty Gram segment: with broader consumer market
and strong brand name VTB also has strength to penetrate.
9. Q: Discuss the market potential for the six operating
segments and Bear to Business program in India?
Calyx & Corolla:
People of India more than family oriented and they like to give
flowers with gifts to each other on special occasions such as on
wedding, parties, anniversaries, valentine’s day and on Mother
day.
The retail Operation segment:
Many businesses in India run by retail store it is consider to be
better option to operate.
The Corporate Segment:
it is another healthy option with this segment they keep in touch
with new trend comes in whole sale market.