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CHAPTER 2: PROBLEM ANALYSES

1. Situation analysis in general

1.1. Overall marketplace

Porter's Five Forces Framework

1.1.1. Threat of New Entrants: High pressure

The explosion of new entrants in recent years has put pressure on 38 Degree Flowers cause the entry barriers are relatively low for Fresh Flowers Industry.

Consumer switching cost: Consumers are easy to switch to other brands and no need to care about switching cost

Product differentiation: The company used to be famous for luxury and delicate products of flowers which were outweighed others in the market. However, these products were easily copied, at the present time, plenty of brands have kept space with 38 Degree Flowers.

Capital requirement: This kind of business doesn’t require to invest much money and capital turnover occurs in a short time.

Other factors such as Government barriers, Access distribution channels are not big problems in this industry.

1.1.2. Threat of Substitute Products: Low pressure

Although there’re various types of other substitutes for flowers - artificial flowers, gifts like chocolates, teddy bears and etc, no one seems like having the capacity to replace the role of fresh flowers in reality. People, somehow, still prefer fresh flowers rather than the rest.

1.1.3. Bargaining power of buyers: Low pressure

Most of the customers are individual buyers, plus the Vietnamese traditional cultures, barely people bargain for a lower price when they buy fresh flowers, and especially flowers used as a gift. In addition, Vietnamese people in general and in particular those living in big cities as Ho Chi Minh, Ha Noi and so on, have been improving their living standards. Therefore, more and more people are likely to spend a lot of money on buying flowers even no special days.

1.1.4. Bargaining power of suppliers: Medium pressure

¾ flowers used in 38 Degree Flowers are imported from European countries and the rest from internal areas. Having contracts to be the patron that orders a vast amount of flowers years by years, the company always receives priority for buying flowers from those sources, even on holidays. The important impact factor of suppliers’ power is the weather, the worse weather the fewer flowers could be supplied, this might lead to not meet fully the customer demands.

1.1.5 Rivalry among existing competitors: Medium pressure

On average, in Ho Chi Minh city, there’re just some shops that selling flowers for the elite society, account for Liti Florist, Lavendershop94 Flowers, Flower Box, and 1989 Florist Dien Bien Phu. In comparison, they’re quite small businesses and don’t have a famous reputation as 38 Degree Flowers.

The most concerned issue in this is the appearance of a half dozen shops for commoners that have been selling ‘fewer flowers and less expense’ products attaching the luxury style, and these have been appealed by many customers and even changed their taste. This forces the company to alter the strategies for satisfying customers.

1.2. Business Analyses

1.2.1. Revenue Analysis

Revenue: Average 2 billion VND/month. In the latest 5 years, the revenue of the company has increased relatively. And there is always allocation revenue following the seasons, from September this year to March of the later year - these two quarters take 65% revenue of the whole year.

Profits in early 2018 had decreased lightly, this was for stores innovation, opening branches and testing new business projects.

1.2.2. Operation Analysis

Achievement: Becoming the leading brand in supplying fresh flowers services in Vietnam and especially in Ho Chi Minh City for the premium segment.

Current operation orientation: It could be said that 38 Degree Flowers company has reached the maturity level in the life cycle since 2018. Therefore, plenty of strategies has been conducting to maintain and continually develop in this industry. Buying flowers right at the stores is not the tendency anymore, buying these through online channels is more and more popular. Besides, customer demands have concentrated on ‘small size and small expense’ flower products for daily gifts rather than giant bouquets for only special occasions like a few years ago. 38 Degree Flowers has clearly realized this, so the company started to expand distribution to online channels and also accede to the affordable segment. The closure of a series of large and small shops in Ho Chi Minh City, investment in building websites and Facebook channels to sell goods and open Hoa Online24/7 brand for commoners are clear evidences for the operation orientation in recent years. Starting closing stores from 4/2019; Open Hoa online 24/7 from 7/2018. Currently narrowing the remaining branches to 3 stores in Ho Chi Minh City and 1 store in Hanoi

Future plans: Besides maintaining the leading position in providing products and services from the fresh flower industry, but also developing orientations to become a supplier of raw materials for this industry, especially imported raw materials.

2. Facebook Analyses

1.1. Page Overview

1.1.1 Page likes, Reach, Impression, Engagement

1.1.1.1 Page likes

1.1.1.1.1.Lifetime total page likes

1.1.1.1.2. Daily total page likes on average

A glance at the two graphs above - lifetime total page likes and Daily page likes on average - shows that 38 Degree Flowers’s facebook fan-page is an enormous page and it seems to reach the saturation level.

At the end of July - 2019, the number of total page likes was 1.231.389, up to now, still considered as the largest page on Facebook about flowers in Vietnam.

From 8/2017 to 2/2018, there’s dramatical growth with 713 for the daily average new likes. However, this was following by a period of 1 and a half years with the daily average new likes was just 210.

The page-likes increase was likely saturated, really hard to have a breakthrough climb again. And the sources for daily new likes mainly came from Your page, Ads, and Newsfeed.

1.1.1.1.3. Daily Page Likes Sources

1.1.1.2. Reach

1.1.1.2.1. Daily Reach Sources

*Note: Viral reach is the number of unique individuals who saw a specific post from your Page through a story published by one of their Facebook friends. Organic reach is the number of people who see your content without paid distribution. Paid reach includes the people who see your content as a result of paid promotions.

Daily Reach Sources chart indicates that The Daily-Organic-Reach was not good enough for the big page like 38 Degree Flowers. It was just twice as Daily-Paid-Reach percentage. The company might have poured much money to get the average number of daily reach - 246.785.

1.1.2.2. Daily page reach on average (by unique users)

1.1.1.3. Impression

1.1.1.3.1. Daily Average Impression

1.1.1.3.2. Impression sorted by type

Given is a pie-chart showing information about Impression sorted by type. The Organic-Impressions rate is much better than Organic-Reach, 80% for organic sources and a mere rate of around 12% is Paid-Impressions.

1.1.1.4. Engagement

1.1.1.4.1: Daily Average Engaged Users

The engagement rate is recorded whenever users click anywhere related to the page and it includes like-post, like-page (fan), share, comment, photo-view click, play-video-click, hide-post, report and etc.

The clicks that generate stories might appear to their friends’ news-feed called ‘People-Talking-About-This (PTAT)’. The remainder is called ‘Consumptions’ - people click anywhere relevant to the page without producing any stories.

The average daily unique users of PTAT was 6987 and it was 19.450 for Consumers (Unique Users of Consumptions). So, if there’re 4 people engaging to the page, just one of them would generate stories.

1.1.1.4.2. People-talking-about-this sorted by story type

1.1.1.4.3. Consumptions sorted by type

1.1.1.4.4. Daily Average Negative Feedbacks

1.1.1.4.5. Daily Average Postive Feedbacks

Daily-Postive-feedback and Daily-Negative-feedback line graphs assured that negative feedbacks just hold a small role in the overall picture, with the rate was negligible 1/230.

1.1.2. Discussion:

The rate of Reach and Impression: (Average Reach)/(Average Impression)×100%=(246 758)/(807 153)×100%=31%

The rate of Engagement and Reach: (Average Engagement)/(Average Reach)×100%= (23 942)/(246 758)×100%=10%

→ These two rates show that if there’re 100 impressions, they just reach 31 users and 3 of them could engage in the content.

The rate of Engagement and Fans: (Average Engagement)/(Total Fans)×100%= (23 942)/(1 231 389)×100%=1.9%

→ The fanbase is crowded with plenty of users but the active-level of Fanbase is quite low.

The Rate of Organic Reach is 58%, equally to in 100 impressions just 18 users are from the unpaid source, this also supports and explains the reason for the low active-level of the fanbase.

1.2. Posts

1.2.1. Posts analyses

1.2.1.1. Impression, Reach and Engagement rates.

1.2.1.1.1. Post types

Facebook has given 5 types of posts, but the page just focused on Photo and a small rate of Video.

Photo Video

Rate of post 96% 4%

Impression Total 43969 132364

Organic 52% 94%

Paid 48% 6%

Reach Total 34389 92005

Organic 90% 93%

Paid 10% 7%

Engagement 1347 5951

1.2.1.1.2. Difference between photo-posts and video-posts by specific rates

Through the table ‘Difference between photo-posts and video-posts by specific rates’, it’s apparent that Video-posts was much more efficient than Photo-Posts, despite just taking 4% of total posts.

1.2.1.1.3. Daily average fans reaching and engaging in posts

Looking at the ‘Daily average fans reaching and engaging in posts’ chart gives a perception about fan’s active-level once more time. The enormous page with the total fans up to above 1.200.000, but only 1050 of them reached and engaged in posts per day. Once again reaffirmed that the active-level of fans was very weak.

1.2.1.2. Top posts

1.2.1.2.1. The rates of different types of post

1.2.1.2.2. The rates of top 10 Posts

*Note:

Discount: Posts for discount products

Beautiful_flowers: Posts for beautiful flowers

Hoa_online_24/7: Posts for a branch of the company

Livestream_flowers_arrangement: Livestreams in that show the process of arranging flowers by florists

Minigame: Posts for giving away flowers for customers joining in games

Quote: The Posts with quotes attaching in nice images.

Product: Flower products that are selling

Video_flowers_arrangement_instruction: Video tutorial for flowers arrangement instructions

Video_minigame: Livestreams combine with giving away

The two graphs above illustrate the types of posts that were engaged the most from 23/6/2019 to 13/7/2019. The type of “Video_flowers_arrangement_instruction” just took a small percentage of the total posts but was the most positively engaged one. The second engaged post type was “Product” and ⅔ of them talked about color like purple flowers, yellow flowers... Two next engaged types of posts were Quote and Beautiful_flowers.

1.2.2. Discussions

Video-posts was efficient than Photo-posts. By contrast, the process to get a photo just required approximately 30 minutes, while the simplest video using time-lapse still needed at least 3 hours for set-up, filming, and editing.

The comparison between the average number of daily fans who reached and engaged in the post and the total number of fanbase shows again that the low of active-level fans

“How to”_video seems to work very well, besides quote and beautiful_flowers.

1.3. Fans

1.3.1. Fans Analyses

1.3.1.1. The rate of fans who like page sorted by gender

1.3.1.2. The rate of fans who like page sorted by gender and age

There are quite similar rates and trends with Impression, Reach, and Engagement that were sorted by gender and age. This quite fits with the target audience on Facebook of the company.

F.18-34 M.18-34

PTAT 67% 11%

CTA Direction Clicks 57% 23%

Website Clicks 57% 31%

1.3.1.3. The rate of fan’s actions

The Table about ‘The rate of fan’s action’ shows an interesting difference between male and female fans. Women were far more likely easy to create stories through likes, shares, comments, and etc. While Men barely interacted with the contents but directly went to the online shop - website or sent messages to the page.

1.3.1.5. Fans online time

Female Male

Demographics

Relations Status 47% Single

39% Married

11% In a relationship

3% Engaged 54% Single

29% Married

15% In a relationship

3% Engaged

Educational level 77% College

19% High School

3% Grad School. 77% College

18% High School

4% Grad School.

Job Title 32% Sales

33% Management

27% Administrative Services 29% Sales

35% Management

24% Production

21% Art, Entertainment

Page likes Florist

Household Supplier

Fashion Stores

Foodware Stores

Bakery

Bridal shop

Shopping and Retail

Bag Stores Fashion Stores

Design/Art

Bag Stores

Wine/Spirits

Cars

Health/Beauty

Shopping and Retail

Location

Top Cities 25% Ho Chi Minh City

23% Ha Noi 26% Ho Chi Minh City

23% Ha Noi

Top Languages 93% Vietnamese

6% English 91% Vietnamese

8% English

Activity

Frequency of activities 39% Ads clicked

32% Posts Liked

26% Comments

4% Post Shared 64% Ads clicked

21% Posts Liked

12% Comments

3% Post Shared

Device users 56% Mobile Only

44% Desktop and mobile

60% iPhone/iPod

38% Android 43% Mobile Only

56% Desktop and mobile

55% iPhone/iPod

41% Android

1.3.1.4. Fans detail information

1.4. Competitors

Liti Florist Lavendershop94 Flowers Flower Box 1989 Florist - Điện Biên Phủ

Page likes 276 876 108 412 100 501 15 300

Post times average 2 posts/day, ranging from 9 am to 8 pm average 1 post/day average 3 posts/day, at 9 am, 12 pm and 5 pm average 2 posts/day, ranging from 8 am to 7 pm

Content KOLs/sponsors

Beautiful flower bouquets

Details about a specific flower (meanings, symbolisms…)

Classes for flowers arrangement

Minigames Beautiful flower bouquets/vase/basket...

Beautiful flowers Quote

Beautiful flowers

Stories about customers, flowers, days...

Minigames

Posts liked, shared... Ranging from 20 to 100 likes. Beautiful-flowers posts have the highest engagement rate. Ranging from 40 to 1000 likes. Almost posts have plenty of comments and shares Ranging from 20 to 50 likes. Barely have comments and shares Ranging from 10 to 50 likes. Around 3 comments, 3 shares

3. Conclusions

3.1. Highlights

For 100 impressions, there was just reached 30 users and 3 of them could engage in the content.

Organic-Reach performed not well enough while paid-source still took a remarkable rate.

Active-level of the fanbase was very weak.

The video-content was more efficient than photo-content. Yet, it’s worth to concern about time and effort that were used to generate each type - 30 minutes for a photo and 3 hours for a video.

The top post that had been engaged the most included instruction-flower-arrangement-video, Quote, and Beautiful-Flowers

80% of audiences were women and just 20% of them as men. While women had a tendency to create more stories (high rate in PTAT), men seemed to get more actions (hight rate in CTA).

Most of the fans are single and have high educational levels, there’re some different hobbies between male and female fans.

Fans time online was ranging from 8 am to 9 pm, with peaks at 12 pm and 8 pm.

The competitors had no significance to prove that they could work better than 38 Degree Flowers fan-page (various in content types, rate of reach, engagement and so on) - in case of not want to say that 38 Degree Flowers page has outweighed others.

3.2. Recommendations

Basing on the rate about impression, reach, and engagement searched out could help in the estimated numbers for the strategy or using for measuring to reach the KPIs.

Utilizing ‘Top-fan’ tool on Facebook to dynamize and make fanbase more active, even could use for increasing Organic-Reach and Engagement rate.

Should consider putting efforts for producing more instruction-flowers-arrangement videos, images including quotes or beautiful flowers to improve the engagement rate.

Target Audience on Facebook of the page is mostly women from the age group of 18-34. Nevertheless, the target customer also involves both men and women in this age group. According to the analyses, effective posts should cover this: women are easy to interact with them (after that they might create stories that could appear to men’s newsfeed), and men are easy to immediately click to direction or website link to order flowers.

The fans time online gave a piece of advice that when should publish a post:

Although competitors seem not dangerous this time, it still requires to follow their actions carefully.

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... Liked 12% Comments 3% Post Shared Device users 56% Mobile Only 44% Desk...
^^^^^^^^^^
Line 679, column 29, Rule ID: WHITESPACE_RULE
Message: Possible typo: you repeated a whitespace
Suggestion:
...ed Device users 56% Mobile Only 44% Desktop and mobile 60% iPhone/iPo...
^^^^
Line 681, column 23, Rule ID: WHITESPACE_RULE
Message: Possible typo: you repeated a whitespace
Suggestion:
...6% Mobile Only 44% Desktop and mobile 60% iPhone/iPod 38% Android 43% Mobile...
^^^^
Line 685, column 28, Rule ID: WHITESPACE_RULE
Message: Possible typo: you repeated a whitespace
Suggestion:
...Phone/iPod 38% Android 43% Mobile Only 56% Desktop and mobile 55% iPhone/iPo...
^^^^
Line 687, column 23, Rule ID: WHITESPACE_RULE
Message: Possible typo: you repeated a whitespace
Suggestion:
...3% Mobile Only 56% Desktop and mobile 55% iPhone/iPod 41% Android 1.3....
^^^^
Line 691, column 12, Rule ID: WHITESPACE_RULE
Message: Possible typo: you repeated a whitespace
Suggestion:
... mobile 55% iPhone/iPod 41% Android 1.3.1.4. Fans detail information ...
^^^^^^^
Line 719, column 26, Rule ID: WHITESPACE_RULE
Message: Possible typo: you repeated a whitespace
Suggestion:
...OLs/sponsors Beautiful flower bouquets Details about a specific flower meanings...
^^^^
Line 723, column 32, Rule ID: WHITESPACE_RULE
Message: Possible typo: you repeated a whitespace
Suggestion:
...lisms… Classes for flowers arrangement Minigames Beautiful flower bouquets/vase...
^^^^
Line 725, column 51, Rule ID: WHITESPACE_RULE
Message: Possible typo: you repeated a whitespace
Suggestion:
...Beautiful flower bouquets/vase/basket... Beautiful flowers Quote Beautiful flow...
^^^^
Line 735, column 308, Rule ID: WHITESPACE_RULE
Message: Possible typo: you repeated a whitespace
Suggestion:
...to 50 likes. Around 3 comments, 3 shares 3. Conclusions 3.1. Highlights For ...
^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Line 755, column 16, Rule ID: WHITESPACE_RULE
Message: Possible typo: you repeated a whitespace
Suggestion:
... 3. Conclusions 3.1. Highlights For 100 impressions, there was just reac...
^^^^
Line 765, column 120, Rule ID: WHITESPACE_RULE
Message: Possible typo: you repeated a whitespace
Suggestion:
...ment-video, Quote, and Beautiful-Flowers 80% of audiences were women and just 20%...
^^^^
Line 777, column 21, Rule ID: WHITESPACE_RULE
Message: Possible typo: you repeated a whitespace
Suggestion:
...ighed others. 3.2. Recommendations Basing on the rate about impression, rea...
^^^^
Line 787, column 77, Rule ID: WHITESPACE_RULE
Message: Possible typo: you repeated a whitespace
Suggestion:
... advice that when should publish a post: Although competitors seem not dangerous ...
^^^^
Line 789, column 70, Rule ID: ALLOW_TO[1]
Message: Did you mean 'following'? Or maybe you should add a pronoun? In active voice, 'require' + 'to' takes an object, usually a pronoun.
Suggestion: following
... dangerous this time, it still requires to follow their actions carefully.
^^^^^^^^^

Transition Words or Phrases used:
also, besides, but, however, if, look, nevertheless, really, second, so, still, therefore, well, while, as for, at least, in addition, in general, in particular, kind of, such as, as a result

Attributes: Values AverageValues Percentages(Values/AverageValues)% => Comments

Performance on Part of Speech:
To be verbs : 66.0 13.1623246493 501% => Less to be verbs wanted.
Auxiliary verbs: 17.0 7.85571142285 216% => Less auxiliary verb wanted.
Conjunction : 91.0 10.4138276553 874% => Less conjunction wanted
Relative clauses : 32.0 7.30460921844 438% => Less relative clauses wanted (maybe 'which' is over used).
Pronoun: 75.0 24.0651302605 312% => Less pronouns wanted
Preposition: 304.0 41.998997996 724% => Less preposition wanted.
Nominalization: 62.0 8.3376753507 744% => Less nominalizations (nouns with a suffix like: tion ment ence ance) wanted.

Performance on vocabulary words:
No of characters: 15202.0 1615.20841683 941% => Less number of characters wanted.
No of words: 2599.0 315.596192385 824% => Less content wanted.
Chars per words: 5.84917275875 5.12529762239 114% => OK
Fourth root words length: 7.1400552089 4.20363070211 170% => OK
Word Length SD: 3.38293564934 2.80592935109 121% => OK
Unique words: 1028.0 176.041082164 584% => Less unique words wanted.
Unique words percentage: 0.395536744902 0.561755894193 70% => More unique words wanted or less content wanted.
syllable_count: 4038.3 506.74238477 797% => syllable counts are too long.
avg_syllables_per_word: 1.6 1.60771543086 100% => OK

A sentence (or a clause, phrase) starts by:
Pronoun: 10.0 5.43587174349 184% => OK
Article: 38.0 2.52805611222 1503% => Less articles wanted as sentence beginning.
Subordination: 6.0 2.10420841683 285% => Less adverbial clause wanted.
Conjunction: 16.0 0.809619238477 1976% => Less conjunction wanted as sentence beginning.
Preposition: 20.0 4.76152304609 420% => Less preposition wanted as sentence beginnings.

Performance on sentences:
How many sentences: 100.0 16.0721442886 622% => Too many sentences.
Sentence length: 25.0 20.2975951904 123% => The Avg. Sentence Length is relatively long.
Sentence length SD: 166.881915138 49.4020404114 338% => The lengths of sentences changed so frequently.
Chars per sentence: 152.02 106.682146367 142% => OK
Words per sentence: 25.99 20.7667163134 125% => OK
Discourse Markers: 1.91 7.06120827912 27% => More transition words/phrases wanted.
Paragraphs: 142.0 4.38176352705 3241% => Less paragraphs wanted.
Language errors: 70.0 5.01903807615 1395% => Less language errors wanted.
Sentences with positive sentiment : 71.0 8.67935871743 818% => Less positive sentences wanted.
Sentences with negative sentiment : 10.0 3.9879759519 251% => Less negative sentences wanted.
Sentences with neutral sentiment: 19.0 3.4128256513 557% => Less facts, knowledge or examples wanted.
What are sentences with positive/Negative/neutral sentiment?

Coherence and Cohesion:
Essay topic to essay body coherence: 0.0 0.244688304435 0% => The similarity between the topic and the content is low.
Sentence topic coherence: 0.0 0.084324248473 0% => Sentence topic similarity is low.
Sentence topic coherence SD: 0.0 0.0667982634062 0% => Sentences are similar to each other.
Paragraph topic coherence: 0.0 0.151304729494 0% => Maybe some paragraphs are off the topic.
Paragraph topic coherence SD: 0.0 0.056905535591 0% => Paragraphs are similar to each other. Some content may get duplicated or it is not exactly right on the topic.

Essay readability:
automated_readability_index: 19.1 13.0946893788 146% => OK
flesch_reading_ease: 46.1 50.2224549098 92% => OK
smog_index: 8.8 7.44779559118 118% => OK
flesch_kincaid_grade: 13.0 11.3001002004 115% => OK
coleman_liau_index: 16.95 12.4159519038 137% => OK
dale_chall_readability_score: 8.38 8.58950901804 98% => OK
difficult_words: 576.0 78.4519038076 734% => Less difficult words wanted.
linsear_write_formula: 13.5 9.78957915832 138% => OK
gunning_fog: 12.0 10.1190380762 119% => OK
text_standard: 9.0 10.7795591182 83% => OK
What are above readability scores?

---------------------
Maximum five paragraphs wanted.
It is not exactly right on the topic in the view of e-grader. Maybe there is a wrong essay topic.

Rates: 11.2359550562 out of 100
Scores by essay e-grader: 0.67 Out of 6
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Note: the e-grader does NOT examine the meaning of words and ideas. VIP users will receive further evaluations by advanced module of e-grader and human graders.