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This represents a decline of 2.8% from the year before. Compared with 2006 it presents an increase of 3.9% b. For the fiscal year ended June 25, 2008, the Harry & David Company recorded a net profit of $4,608,000. This represents a decline of 85.6% from the year before. Compared with 2006 this represents an improvement of 147.44%. Those years were hampered by losses on the sale of Jackson & Perkins, but nonetheless 2008 was a poor year relative to 2007 but an improvement over 2006.
5. Harry & David markets gourmet fruit and food gifts both online and through their retail stores. These are built around the Royal Riviera pear, but contain other fruits and foodstuff as well. The online business caters mainly to corporate customers with some consumer clients as well. The retail stores are focused on tourists and other gift-related markets.
6. The main target market for Harry & David is corporations. Their gift baskets also appeal to the consumer market, focusing on middle-aged, affluent Caucasians. Corporations, however, are their biggest source of profit and their present main target market....
The consumer market is not targeted as aggressively, but still makes up a substantial component of their customer base, especially in their retail stores. The consumer market is reached both through stores an online. The corporate market is mainly reached online. A small portion of their business, 6%, is in the wholesale trade.
7. Harry & David has numerous competitors. In essence, they compete in the gift market and any form of gift can be readily substituted for another. Competitors include flower companies like FTD and 1-800-FLOWERS. Williams-Sonoma is considered a strong competitor as well. The industry is highly fragmented, so there are innumerable smaller competitors both online and on the bricks & mortar side. Other food gift purveyors are also competitors, ranging from Starbucks to Ghirardelli.
8. Harry & David uses the Internet for its promotions extensively. The website provides product descriptions and pricing. Promotions are highlighted. The Harry & David site is the cornerstone of their marketing strategy. Moreover, sales online are the core of the business. Online…
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