Professional Documents
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SUZYs ZOO
A Greeting card company, located in San Diego, California Owner Suzy Spafford, founder and president Started the business in 1960s, working towards her bachelor of fine arts at San Diego state university. To earn extra money for school, she worked summers and weekends at local artmarts creating colorful pastel and water color drawings She sold her drawings for $3 per piece generating $3000 4000 per month
Bill Murr, a Berkley, California, medical instrument manufacturer, saw spaffords work. He propose to team up and start a small greeting card company. Initially Murr funded $600 Spafford created 8 card designs and agreed to 90% (Murr) and 10 % (Spafford) split. Suzy Zoo was officially launched.
Area of distribution
Spafford worked from home, created designs that were shipped to Murr, who supervised the printing then boxed and distributed them to local stationary stores, thse mom and pop stores became the bread and butter. The cards immedately sold well in the Bay area and on a smaller scale in Washington and Oregon. Within 2 years, the cards were selling throughout California Sales increased steadily in initial years.
The company maintained the merchandising policy for sales no fancy, plain, honest business. But in todays environment, to operate under this policy is little more challenging.
Retailers expect deals, discounts, merchandising, and guarantees from the manufacturer to take back unsold stock. Suzys zoo products are sold internationally through licenses, distributors and direct sales.
Participated in trade shows. The two big national shows, national stationery gift show in New York and Los Angeles gift show. The way to expose the product line to different retailers. Also participated in regional trade shows through participation by its sales representatives orgnz.
creative and driving force behind the menagerie of characters that make up Suzys Zoo. Zoo consists of 35 cartoon characters
Companys operations
Human Resource Nonunion operation with approx 50 employees. Minority owner and vice president Mr. Ray lidstorm An office staff of approx 12 is maintained for accounting, marketing, purchasing credit, and customer service functions.
Finance
Initial finance was funded by Murr $600 Share of 90% (Murr), and 10% (Spafford)
Operations
Currently operating at a two-story, 52000 square foot warehouse/office suite in the Mira Mesa area of San Diego Operations includes product design, marketing, warehousing, and shipping No manufacturing is done on site : rather, manufacturing is accomplished through subcontractors.
Products at Zoo
Greeting cards Coloring books, calendars, gift wrap, party paper. Coffee mugs T-shirts
The threat of substitutes - low The bargaining power of buyers - high The bargaining power of suppliers - low The degree of rivalry between existing competitors - high