This unit describes a key product planning function for a diverse range of floristry products and services and applies to the full range of industry sectors. The floristry business could be a retail, studio or online floristry business.

The unit applies to the development of a new or enhanced floristry product range. Increasingly, floristry businesses are choosing to provide specialised products. This unit describes the product planning process that applies to the development of any style or category of product.

Product planning involves a strategic focus on the overall and long-term operation of the floristry business. This unit applies to senior floristry industry personnel who operate autonomously and have strategic planning and product development roles. These roles would include product development manager, marketing manager, operations or general manager, designer, studio designer, store manager and owner-operator of any type of floristry business.

Nil

ELEMENT

PERFORMANCE CRITERIA

1. Research the market.

1.1. Research potential floristry products within the context of the overall business plan and marketing focus of the organisation.

1.2. Identify and access general information sources for floristry market trends, and distribution and marketing networks.

1.3. Consult with, and incorporate input from, internal colleagues and external stakeholders in the research phase.

1.4. Conduct research to identify current and emerging technologies, market and design trends, and product and service gaps and analyse the potential for future product.

1.5. Identify a range of product development opportunities based on analysis of both the market and the success of the current product range.

1.6. Identify distribution and marketing networks that would support the proposed floristry product and analyse the potential to market the product successfully.

2. Analyse issues relevant to establishing the product.

2.1. Identify and analyse product preferences and requirements of different consumer markets.

2.2. Consult external stakeholders on customer and floristry industry service and quality expectations for floristry products and services.

2.3. Identify and analyse external issues that impact on establishing a product range.

2.4. Assess availability of floristry products and components that will meet preferences and requirements of target market.

2.5. Conduct a self-assessment of the organisation's capability to provide proposed product and identify additional resources required to establish and deliver the product.

2.6. Consider issues relating to product life cycle.

3. Determine a profitable selling price.

3.1. Identify all expenditure items involved in producing the floristry product to determine the nett production cost.

3.2. Incorporate required distributor commissions or mark-ups, determine required profit margin and mark-up the nett cost to determine the selling price.

3.3. Seek information on competitors' product range and consider their price when determining the organisation's selling price.

3.4. Make reasonable cost adjustments to ensure market take-up of price competitive product.

3.5. Assess cost-effectiveness and profitability of a range of proposed products and choose products that will provide the highest yield.

3.6. Clearly and accurately document the full range of pricing structures.

4. Establish the product.

4.1. Develop and communicate a clear, scheduled implementation plan to all personnel involved in establishing the operational details of the product.

4.2. Establish all required marketing activities to promote the product.

4.3. Where appropriate, test new products and services in the marketplace prior to full implementation.

5. Monitor and evaluate the success of the product.

5.1. Monitor product development initiatives in terms of response in the marketplace; feedback from the distribution network, staff and customers; and changes in the internal or external environment that may impact on plans, cost effectiveness and profitability.

5.2. Monitor the quality of supplied flowers, plant materials and other merchandise and take action to rectify any deficiencies that affect the overall quality of the product range.

5.3. Rationalise or delete any product within the range or any stock items on the basis of monitoring in a timely manner and according to any contractual obligations.

5.4. Communicate changes to all relevant colleagues, customers and distributors.

Required skills

research skills to identify, collect, and analyse primary and secondary data on current market trends, competitors' product range and target market product preferences

critical thinking skills to facilitate rational and logical analysis of research findings and all input from colleagues and external stakeholders

communication skills to conduct high level consultation with internal and external stakeholders

literacy skills to read complex research documents that relate to floristry product or design trends, market statistics, information on market preferences and requirements

numeracy skills to complete complex budgetary costings, calculate a range of different commission and mark-up structures and assess the profitability of various product options.

Required knowledge

sources of product information including industry, supplier and grower sources

the intricaciesof the floristry industry, including structure,business interrelationships and information sources

the existence and operational function of distribution and marketing networks, especially those that would support the proposed floristry product range

current market trends, products and service styles that would meet certain market requirements and customer service and quality expectations for floristry products

critical aspects of the current floristry product base for the business location and market to be serviced

competitors' current products and services and their price structure

the financial operating costs of the organisation, desired profit margins and achievement of high yield in order to determine an appropriate selling price

industry fee, commission and mark-up procedures and rates appropriate to the varying organisations within the distribution network

a range of formats for and inclusions of documents which provide business pricing structures e.g. internal organisational price lists or manuals

a range of formats for and inclusions of plans produced to implement new products.

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the following is essential:

project or work activities that show the candidate's ability to research, assess and develop the floristry product range for a specific floristry business and to monitor the product's success

ability to fully research, comprehend and analyse information on the full range of issues that relate to the development of the floristry product range

detailed knowledge of the floristry industry, including structure, interrelationships, information sources and distribution and marketing networks

ability to consult and communicate with colleagues and external stakeholders

project or work activities to develop multiple and diverse product ranges. To ensure consistency of performance and ability to respond to different commercial needs,this should occur over a period of time

project or work activities conducted over a sufficient period so that the research, analysis and monitoring aspects of this unit can be assessed.

Context of and specific resources for assessment

Assessment must ensure:

access to a fully equipped office environment using appropriate computers, communication technology (e.g. audiovisual and photography), information programs and publications to facilitate the processes involved in developing the floristry product range

access to a business for which floristry products would be developed or to comprehensive and sufficient information about that floristry business to allow the candidate to fully research, assess and develop the floristry product range

access to current floristry industry data and information sources about floristry market trends and appropriate product match

involvement of key stakeholders, both internal and external, so that consultation can be achieved.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

project activities to research, assess and develop the floristry product range in conjunction with an industry operator

project activities to research, assess and develop the floristry product range for the training college or local community

review of completed product costing and pricing structures for specific products

case studies to assess the candidate's ability to assess markets with differing product preferences and requirements

case studies to assess the candidate's ability to evaluate floristry products and markets with different distribution and marketing networks

written and oral questioning or interview to test knowledge such as structure of the floristry industry, industry interrelationships, distribution networks, and mark-up and commission structures

review of portfolios of evidence and third-party workplace reports of on-the-job performance by the candidate.

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

SIRXMPR001A Profile a retail market

SITXMGT006A Establish and conduct business relationships

BSBDES602A Research global design trends

SFLDEC407A Design complex floristry products

SFLDEC510A Design and produce innovative floristry products.

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Some examples of floristry products included in a product range are:

flowers including:

fresh (common, exotic and Australian wildflowers)

dry and preserved

artificial.

plant materials including:

fresh (common, exotic and Australian foliage)

dry and preserved

artificial

potted plants

fruit and vegetables.

horticulture products

cash and carry arrangements

display or stock items

ancillary items and merchandise including:

chocolates, fruit, nuts, alcohol

hampers

gift items of any type

novelties such as balloons and toys

flower preservatives and conditioning agents.

presentation materials including:

wrapping

gift cards and message items

services such as:

design consultancy

event styling

relay organisation

transportation and delivery

labour for management of on-site events or special occasions

on-site installation and disposal of floral displays

on-site maintenance of all floral displays throughout the life of an event or special occasion.

large , small or themed corporate displays including components constructed off-site and assembled on-site for:

exhibition centres

ball rooms

restaurants and reception centres

theatres

galleries

hotels

government buildings

hospitals

corporate offices

marquees

gardens

cruise boats

churches or chapels.

floral arrangements for events and special occasions:

corporate events

balls and banquets

themed events

industry and other awards presentations

theatrical performances

trade shows

exhibitions

floral festivals

weddings

parties e.g. birthdays and engagements

celebrations e.g. Christmas and St Valentine's Day

religious celebrations e.g. communions, bar mitzvahs

funerals.

Informationsources may include:

local, regional, state or territory, and federal government business development departments and advisory bodies

government funding bodies

government and private small business research bodies

floristry industry associations

grower associations

others in the distribution network, which will vary but can include:

retail floristry outlets

franchisor organisations

marketing and distribution companies

event management companies.

business management and marketing consultancies

reports on floristry trends

customer surveys and general feedback

the Internet

media

industry journals or trade magazines

personal observation and experience

colleagues, supervisors and managers

industry contacts, mentors and advisors

trade shows.

External stakeholders may include:

customers

floristry industry associations

business management and marketing consultancies

growers and grower associations

others in the distribution network, which will vary but can include:

retailer floristry outlets

franchisor organisations

marketing and distribution companies

event management companies

suppliers.

funeral directors, cemeteries and crematoria which have special procedures for the display and delivery of funeral specific products

licensing or regulatory authorities.

Technologies, market and design trends may involve:

emerging floristry construction techniques

use of texting (SMS)

use of the Internet

use of digital photography and scanners

use of design and accounting software

use of electronic technology to track orders, delivery and relay services

use of GPS systems for delivery of products

emerging customer preferences

changing customer demographics

seasonal or in fashion colours

the influence of clothing fashion, fabric and colour trends

the influence of architecture, interior design and trends in interior decoration

the influence of themed events

the influence of new hybrid flowers and plant materials

emerging technologies that impact on production.

Product and service gaps may include:

gaps within the existing product range

gaps in product not currently delivered by any competitor or potential competitor

specific consumer markets not currently serviced by any competitor or potential competitor

markets for which level of demand is not being met.

External issues that impact on establishing a product may include:

legal compliance

intellectual property ownership of competitors' copyrighted products

legal liability issues

current and emerging economic climate

environmental considerations

cultural considerations

technological developments

general industry trends.

Self-assessment of the organisation's capability to provide proposed product may involve:

considering the range of products currently offered and resources required to diversify

considering the product preferences and requirements of target market

conducting a risk assessment of all aspects of providing required products

considering resources required to establish a new product

considering budgetary constraints involved in providing the product and applying a profitable selling price.

Expenditure items may include:

supply of all component products and services that make up the product

capital costs of the product developer and proportion attributed to the product

fixed costs that relate to delivery of the product

variable costs

marketing costs

human resource costs for all personnel involved in designing, producing and delivering the product

business insurances

licensing and permit fees

proportion of product developer's operating costs attributed to providing the product.

Unit Sector

Floristry

Floristry Sales and Operations

This unit contains Employability Skills.