There are a number of way Education growers might increase demand for their cut roses. Among these are (a) to try to get more consumers to move up-market by buying premium roses, (b) to promote more rose demand for a different special day (e.g., roses account for a small percentage of U.S. flower sales for Christmas/Hanukkah, Thanksgiving, and Easter/Passover), and (c) to promote sales in relatively untapped markets, such as the Middle East. Compare these and any other alternatives you can think of.

  
 

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Ecuador: A Rosy Export Future? CASE ose is a rose is a rose is a roe ntended her ine to ilutrate what a word can invoke. ven the many uses of "rose" throughout the ages, the word binga neorly unigue image and emotion to each of in tes been a name for daughters, an adorrment for a nor vae, a representation of a deceased versus Iving e on Mother's Day, a mark of love on Valentine's Day. gredent for perfume and medicine, a confetti of strewn as and even the aymbol of opposing armies during Eng- ns War of the Roses -Gertrude Stein "Sacred Emity rom Geography and Play (1922 market, ha purchasing power, but it fis most demand with domestic production. However, in many other countries, im ports have largely displaced domestic output. For instance the United States now imports more than twice the value of its domestic fiower production. Ecuadoran Advantages Developing countries have a labor cost advantage in the rose market because production in very labor intersive at almost every stage-planting. fertilizing, fumigating. pruning. removing thoms, assembling by size and rose variety, and packaging Although Ecuador has this overal advantage, it has a labor cost disadvantage with Colombia its main com petition, because its monthly minimum wage is aimost $100 more. Further, ita transport cost for roses to the United States averages 20-30 percent more than Colombia's. However. Ecuador has almost unique advantages in rose cultivation Because the equator runs through the country, the sun is almost directly overhead throughout the year, which speeds growth and allows for year-round temperature consisten- cy. It grows roses at high altitudes (averaging about 2000 meters, or 6561 feet) that provide the very cool nights that are ideal. Seventy percent are grown north of the capital of Quito, and 30 percent to the south. These areas obtain Some Global Changes AROgh growers have sold roses for centuries, their perish- y they should usually be sold within three to five days of beng cuti prevented extensive export before there was prety, dependable, and economical air service. Today, roses compose about half the S14 bilion cut-fiower export indus- in Developing countries, many without significant domestic power markets, have accounted for most recent export gowth. The worids largest exporter is Colombia, with Ec- dor and Kenya running neck and neck for the second and hed positionn. Given that consumers purchase roses as dis- celions rather than as necessities, most exports are to high- ncome countries. Given the need to reach markets quickly and inepensively, most exports are regional-Kenya sends most of its flowers to Europe, Taiwan to Japan, Colombia and Ecundor to the United States. However, chilling technology maly soon allow cut flowers to be sent in containers on ships, In addition to feasible air service, other logistical im- provements have speeded the connection between grow ers and consumers. Take, for example, flower imports into the United States. About 85 percent of the annual market anters by air through Miami, which has more than 50 whole- sales and importers. These flowers, mainly from Latin America, are packaged where they are cut and air freighted the same day. The packaging often includes address labels and tracking information so as to avoid the costly and time- consuming process of re-packaging for transshipment. On amval in Miami, the roses are placed at once in refriger- ated warehouses, where U.S. government customs and agriculture inspectors clear shipments by spot-checking packages to ascertain their invoice accuracy and absence of insects Of course, long before the growth in export markets. many countries produced flowers for nearby sale, and some are stil domestically focused. China and India have ger land areas under flower cultivation than any other Countries, but their quality is insufficient to compete much ntermationally. Japan, the world's second-largest cut-flower Roses Harvest, plantation in Tumbaco, Cayambe, Eouador Ecuador: A Rosy Export Future? CASE ose is a rose is a rose is a roe ntended her ine to ilutrate what a word can invoke. ven the many uses of "rose" throughout the ages, the word binga neorly unigue image and emotion to each of in tes been a name for daughters, an adorrment for a nor vae, a representation of a deceased versus Iving e on Mother's Day, a mark of love on Valentine's Day. gredent for perfume and medicine, a confetti of strewn as and even the aymbol of opposing armies during Eng- ns War of the Roses -Gertrude Stein "Sacred Emity rom Geography and Play (1922 market, ha purchasing power, but it fis most demand with domestic production. However, in many other countries, im ports have largely displaced domestic output. For instance the United States now imports more than twice the value of its domestic fiower production. Ecuadoran Advantages Developing countries have a labor cost advantage in the rose market because production in very labor intersive at almost every stage-planting. fertilizing, fumigating. pruning. removing thoms, assembling by size and rose variety, and packaging Although Ecuador has this overal advantage, it has a labor cost disadvantage with Colombia its main com petition, because its monthly minimum wage is aimost $100 more. Further, ita transport cost for roses to the United States averages 20-30 percent more than Colombia's. However. Ecuador has almost unique advantages in rose cultivation Because the equator runs through the country, the sun is almost directly overhead throughout the year, which speeds growth and allows for year-round temperature consisten- cy. It grows roses at high altitudes (averaging about 2000 meters, or 6561 feet) that provide the very cool nights that are ideal. Seventy percent are grown north of the capital of Quito, and 30 percent to the south. These areas obtain Some Global Changes AROgh growers have sold roses for centuries, their perish- y they should usually be sold within three to five days of beng cuti prevented extensive export before there was prety, dependable, and economical air service. Today, roses compose about half the S14 bilion cut-fiower export indus- in Developing countries, many without significant domestic power markets, have accounted for most recent export gowth. The worids largest exporter is Colombia, with Ec- dor and Kenya running neck and neck for the second and hed positionn. Given that consumers purchase roses as dis- celions rather than as necessities, most exports are to high- ncome countries. Given the need to reach markets quickly and inepensively, most exports are regional-Kenya sends most of its flowers to Europe, Taiwan to Japan, Colombia and Ecundor to the United States. However, chilling technology maly soon allow cut flowers to be sent in containers on ships, In addition to feasible air service, other logistical im- provements have speeded the connection between grow ers and consumers. Take, for example, flower imports into the United States. About 85 percent of the annual market anters by air through Miami, which has more than 50 whole- sales and importers. These flowers, mainly from Latin America, are packaged where they are cut and air freighted the same day. The packaging often includes address labels and tracking information so as to avoid the costly and time- consuming process of re-packaging for transshipment. On amval in Miami, the roses are placed at once in refriger- ated warehouses, where U.S. government customs and agriculture inspectors clear shipments by spot-checking packages to ascertain their invoice accuracy and absence of insects Of course, long before the growth in export markets. many countries produced flowers for nearby sale, and some are stil domestically focused. China and India have ger land areas under flower cultivation than any other Countries, but their quality is insufficient to compete much ntermationally. Japan, the world's second-largest cut-flower Roses Harvest, plantation in Tumbaco, Cayambe, Eouador

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part 1 In order for customers to move upmarket by buying the premium roses you must change consumer ... View the full answer