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Suzys Zoo

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Introduction

A Greeting card company, located in San Diego, California Owner Suzy Spafford, founder and president Bill Murr, medical instrument manufacturer, proposed to team up and start a small greeting card company. Spafford created 8 card designs and agreed to 90% (Murr) and 10 % (Spafford) split. Murr supervised printing distribution. Suzy Zoo was officially launched in 1967. In 1970 Murr did not want to be involved in daily opeartions 4/17/12

Introduction
Distribution

Local stationary stores Mom and Pop stores on a smaller scale in Washington and Oregon

Within 2 years, the cards were selling throughout California Product Line Greeting Cards Internationally through licenses, distributors and direct sales. Colouring Books Calendars Gift wraps Coffee Mugs Plates 4/17/12

Characters Little Suzys Zoo

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Characters Suzys Zoo

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Characters Wags & Whiskers

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Market Analysis

Threat of New entrants High

low entry barriers of entry low investments required

The threat of substitutes Medium

Stationary, chocolates The same price bracket contains many products which can substitute the cards as gifts

Bargaining power of buyers High

Huge price war between competitors

Bargaining power of suppliers Low

Paper Printing materials

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Market Analysis

Intra-industry competition - High & Low Competitors Hallmark, American Greetings, Gibson, 1000. Low competition between big players High competition between small players

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Organization Suzys Zoo


Company Philosophy

Give them what they want at a reasonable price

Organizational Innovation

New idea of new cartoon characters on cards Kept changing the characters after few days. Targeted

Kids Teenagers Youngsters

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Diversified into new products early in the business

Business Plan
Financial
Initial finance was funded by Murr $600 Share of 90% (Murr), and 10% (Spafford) Later Spafford bought out Murr 80% making it 10% (Murr), and 90% (Spafford)

Operation Currently operating at a two-story, 52000 square foot 4/17/12 warehouse/office suite

Business Plan
Human Resources

Non-union operation with approx 50 employees. Minority owner and vice president Mr. Ray Lidstorm Office staff of approx 12 is maintained for accounting, marketing, purchasing credit and Suzy Spafford President customer service functions.
Ray Lidstrom CFO/COO

Graphic s Arts/ Design

Product Developmen t

Warehouse

Publishin g/Licensin g

Accounting

Purchasing

Credit

Sales

Shipping

Production

Receiving

Data entry

Customer Service

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Business Plan
Marketing

Independent sales personnel The company maintained the merchandising policy for sales no fancy, plain, honest business. Used to hear the customers and retailers, Participated in trade shows as a way to expose the product line to different retailers.

National stationery gift show in New York Los Angeles gift show.

Also participated in regional trade shows through participation by its sales representatives.
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Key Success Factors

Innovative Zoo characters on cards

New Idea an look on cards

Changing characters

Changing the characters gave variety to consumers

Central designing and control Early diversifying to different products

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Future Plans & Threats


Future Plans

Work on Character Bible. Story books names, personalities and dwelling places. Stuffed animals Animation (in collaboration with Walt Disney) Books and video having a circular effect on Suzys Zoo business Suggestions

Customised cartoon merchandize Egreetings

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Thanks
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