CalFlowers Strategic Direction Survey Report

1. QUANTITATIVE NEEDS ASSESSEMENT SURVEY REPORT California Association of Flower Growers & Shippers Strategic Planning Survey By AMMR Association Management Consultants 5807 Grosvenor Lane, Suite 100, Bethesda, MD 20814 Phone: 301-530-9066 E-mail: research@ammr.com June 2014 Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

2. Table of Contents Executive Summary 3 Background and objectives 3 Key findings 4-5 Research-based recommendations 6-7 Respondent Demographics 8 Overall Value and Dues Renewals and Membership 10 Biennial Fun N Sun Convention 11 Member Meetings in the Off Years of Fun N Sun 22 Transportation Services 23 Other Products and Services 27 Advocacy 36 Geographic Reach 37 Other Memberships 38 Communications 39 Website 40 Professional Staff 41 Summary Question about the Future 42 Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

3. Executive Summary Background and Objectives The California Flower Growers and Shippers Association (CalFlowers) is conducting an assessment of its mission and strategic directions. To support the assessment, CalFlowers conducted three phases of research. The first phase included qualitative research (telephone interviews and focus groups) conducted between April and June 2014 among active members and other industry leaders. The second phase was an environmental scan of a variety of leaders and members to obtain an issues set for the planning team. The Third phase of research was an online quantitative survey conducted in June 2014 that covered similar issues as the qualitative research, and separate items. It also included a broader range of member types. This report discusses the survey, though where appropriate, findings between the qualitative and quantitative research are compared and contrasted. A total of 116 respondents completed the survey from the 957 invited to do so (including two reminder notices), for an overall response rate of 12.1%. Since the survey included a universal mailing (by e-mail) and not a random sample, there is no sampling margin of error, but it is important to note the potential for ‘non-response’ bias where it cannot be known for certain how invited non-respondents would answer the questions. However, given the nature of association membership, where levels of engagement vary, it is likely many non-respondents would have similar opinions as found in this survey, while many other non-respondents rarely engage with the association regardless of what it does or offers. Note about this report. In the data graphs a + or - sign indicates a specific respondent segment was found to be statistically significantly more (+) or less (-) likely to express the opinions being reported. Abbreviations in the graphs are based on the demographics shown on page 8. Abbreviations include ‘mbr’ for member and ‘bus’ for business. Also, several cohorts were truncated such as ‘served’ to mean someone who currently or formerly served on the CalFlowers Board of Directors or a Committee, or as a regional leader. And, in some cases the graph notations show when statistically significant findings flow from top to bottom, or vice versa, among a demographic cohort, such as ‘lower’ or ‘higher’ revenue or ’ Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

4. Executive Summary • Key Findings • The survey found the CalFlowers membership value proposition (cost + quality = value) is strong, though with some room for improvement, especially among less active members. • While the membership value proposition is strong, it appears membership loyalty is even stronger, as indicated by survey findings related to likelihood of renewals and recommending CalFlowers. However, there seems to be a relationship between being currently or formerly involved in CalFlowers leadership and value perceptions and loyalty. • The biennial Fun N Sun convention is a key driver of value for those who attend, based on informative education (including farm tours) and productive networking with peers and colleagues, and with customers. However, it appears some disappointment with education and networking (with customers) could threaten to dampen interest in the event, and that in turn could foster a downward spiral since networking depends on sufficient types and numbers of attendees. • Also, not surprisingly, the cost of attending and exhibiting at Fun N Sun appears to be the event’s most disappointing feature and strongest reason not to attend (especially among smaller companies), and that can further threaten the event’s future. • It appears the time of year and the (rotating) locations for Fun N Sun are good. • The member meetings that occur in the off years of Fun N Sun appear to be of moderate interest, most likely due to lower levels of education and networking. • While transportation is vital to the floral industries, this survey indicated much stronger interest in the CalFlowers FedEx Program than in OnTrac or exclusive rates with airlines. • Ratings for the importance of the FedEx Program are unusually high for association-based services. • However, while ratings for satisfaction with the FedEx Program are in the range that would boost member’ value perceptions across many associations, here those ratings sufficiently lag ratings for importance to be a concern. • Findings about eight other CalFlowers products and services reinforce the strong interest in information and networking, and the very lofty position of the FedEx Program. This is seen in the relatively high interest in the member directory and the weekly newsletter versus other products and services, but the large distance in importance between those two products and the FedEx Program. Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

5. Executive Summary • Key Findings • Fortunately, satisfaction with the member directory and newsletter appears to be aligned with importance. • While some remain interested in five other CalFlowers products or services (especially box standardization), for many they are of very little interest, most likely due to a combination of low awareness, little or no direct relevance, or readily available (or better) alternatives (though with standardization there also is pessimism that remaining needs or goals can be met). This mostly relates to insurance and business services. • The survey found much stronger support for CalFlowers to engage in legislative or regulatory advocacy in conjunction with other organizations, versus on its own or not at all. • Five issues related to business challenges and success (especially international trade, and transportation) stand out for the advocacy agenda, regardless of which organizations address them. • As for CalFlowers geographic reach and focus, the survey found strong demand for more focus on California than the rest of the Western U.S. or the entire country, but also at least some strategic focus beyond California. It appears general communications from the CalFlowers are fairly good in terms of frequency and content. • It likely is no surprise that many survey respondents also are members of the Society of American Florists and the California Cut Flower Commission, so those organizations appear to be both potential partners or competitors for CalFlowers. • It appears CalFlowers does well at keeping members informed about its activities, efforts, etc., with the possible exception of smaller companies. • It appears demand is fairly high for CalFlowers to do more to inform the general public about issues important to the flower industries, though that also includes simply doing more to drive interest in the importance of flowers. • The CalFlowers website seems to be generally informative about events, but appears to be a missed opportunity to deliver more information and thus have a positive effect on membership value perceptions. • The CalFlowers professional staff seems to be doing a great job at serving the membership, with some room for improvement in perceptions of its industry-based knowledge and its responsiveness, but also in perceptions of whether it has sufficient resources. Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

6. Research-Based Suggestions and Recommendations • CalFlowers should be more strategic and aggressive in encouraging members to be more involved, either through event attendance or perhaps more importantly through various types and levels of volunteering and leadership. This can include getting more members to help to plan and conduct events and other activities, and the beginnings of a path toward association leadership. • CalFlowers should probe deeper into the specific and strongest drivers of member satisfaction and loyalty, to both reinforce their status and to be able to promote them throughout the membership base (current and prospective members) through print, online, and in-person testimonials. • CalFlowers should maintain the format, timing, and location(s) for the biennial Fun N Sun convention, but also seek to reinforce or enhance the education and networking. For education, CalFlowers should consistently include recognized experts who will provide timely and critical information via interactive and well planned presentations. For networking, perhaps CalFlowers can facilitate interest-specific introductions during the convention, and productive follow up later (similar to the already fairly popular member directory); younger member mentoring would be well accepted as well as indicated from the younger member focus group. • CalFlowers should look for ways to reduce the impact of costs to attend Fun N Sun, especially for newer members, those from smaller companies, younger members and those from outside California. Perhaps this can include more subsidized travel or lodging, or registration fees. • To further the value of education and networking, CalFlowers should consider ways to enhance the member meetings that occur in the off years of Fun N Sun. While it is not clear whether something as large as Fun N Sun is warranted annually, more informative presenters and sessions (similar to the newly introduced round table discussions) and more productive networking based on larger attendance and facilitation as noted in #3 would both drive more interest in the meetings and would reinforce the membership value proposition. Farm tours would be beneficial as well. • Clearly, CalFlowers should maintain its FedEx Program, while also frequently reviewing how it is working, how members are using it, and any potential threats to value that should be quickly identified and addressed. • CalFlowers should use its FedEx program as key components in its member recruiting and retention efforts, including by making it clear how the program directly affects profitability in the flower industry. • CalFlowers should probe further into its other transportation programs, especially member awareness and experiences, and whether and how they meet member needs, or what, if anything is missing. Executive Summary Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

7. Executive Summary • Research Based Recommendations (continued) • CalFlowers should continue to publish its member directory on line, and should look to make more people aware of it and make it more accessible to those who are eligible to use it. The print version my be outdated. • CalFlowers should continue its weekly newsletter, but should increase the amount of technical information it provides while continuing to highlight individual companies and members. • Whether CalFlowers should continue to work on box standardization should be reviewed based on progress to date and whether remaining issues can be addressed with technically, economically, and politically feasible solutions. • CalFlowers, should probe further into its products and services related to insurance and business services, to consider whether they are worth keeping based on costs and membership benefits and value. • CalFlowers should seek to participate in legislative and regulatory advocacy only in conjunction with other organizations (most likely SAF and CCFC), but also should consider much more of a role as an information resource (data, trends, issues, challenges, etc.) than an actual advocate or lobbyist. The five issues identified in this research clearly are the framework for where CalFlowers should gather data, trends, etc. to assist advocacy. • CalFlowers should consider developing some form of early warning system where members are encouraged to monitor for possible legislative or regulatory developments that will impact the flower industries. • CalFlowers should continue its primary focus on California combined with secondary focus on the rest of the U.S. (and perhaps other countries) as needed and to build a related constituency. • In addition to joint advocacy noted in #13, CalFlowers should continue to work with SAF and CCFC for the overall benefit of the flower industries, but should be careful to stake its own position as a key source for information and networking. The creation of a separate PAC might be advisable to get the word out. • CalFlowers should consider more aggressive and strategic ways to inform the general public about the benefits of flowers, especially around key times of year for the industry, but also year round. This should include technical and aesthetic information about flowers so people get more benefits for their money. • CalFlowers should enhance its website to become a key 24/7 easy to access source of information for members (via a members only section) and the general public. This is also part of #17. • The new CalFlowers professional staff should continue to deliver high-quality and timely information, especially upon members’ request, though perhaps should look to reinforce perceptions of its industry-based knowledge. Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

8. RESPONDENT DEMOGRAPHICS Q1. Years in business < 1 = 0% 1-2 = 3% 3-5 = 2% 6-10 = 10% 11-20 = 19% >20 = 66% DK = 0% Q2. Years current owner < 1 = 0% 1-2 = 3% 3-5 = 6% 6-10 = 16% 11-20 = 22% >20 = 54% DK = 0% Q3. Membership Categories Floral = 68% Associate = 31% Ag Buddy = 1% Q4. Years a member < 1 = 4% 1-2 = 11% 3-5 = 20% 6-10 = 17% 11-20 = 19% >20 = 22% DK = 8% Q5. Job Level Owner or co-owner = 39% CEO or President = 15% Vice President = 13% Director = 7% Manager/Supervisor = 13% Supervisor = 1% Other = 12% Q6. Approximate Sales Revenue < $250k = 5% $250-499k = 5% $500-749k = 7% $750-999k = 10% $1-2 million = 25% $3-5 million = 17% > $5 million = 32% Q7. CalFlowers Leadership Current Board = 7% Current committee = 4% Former Board = 5% Former committee = 5% Never Board = 45% Never committee = 73% Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

9. Overall Value, Dues • Overall value of CalFlowers membership is rated as moderate to high, though with some important room for improvement. Nearly two-thirds (62%) rated overall value in the top three box (an 8, 9, or 10), and the mean (7.6) is close to the top three. • The qualitative research found similar high to moderate to high ratings for the overall value of membership. • It is good that two-thirds (65%) said CalFlowers membership dues are the right amount, but the more than one-quarter (28%) who said they either are somewhat or much too high (especially among those who have never served in CalFlowers leadership) is somewhat of a concern. • The qualitative research found strong support for the dues to be the right amount. • Here, there is indication that more active members (served) think the dues are somewhat too low, and the qualitative research (among active members) had a similar, minority finding. + never served + served Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

10. Likelihood of Renewing and Recommending CalFlowers Membership • Ratings for the likelihood of renewing CalFlowers membership are quite high. More than four-fifths (84%) rated likelihood in the top three box, and the mean (8.9) is well into the top three. • Not surprisingly, those who have served in CalFlowers leadership are even more likely to renew. • Ratings for the likelihood of recommending CalFlowers membership to others also are high, but not as high as likelihood of renewal. Here, more than two-thirds (68%) rated likelihood in the top three box, and the mean (8.1) just makes it into the top three. • Taken together, the 8.9 mean for renewal and 8.1 mean for recommending average to a very high 8.5 ‘loyalty index’ for CalFlowers membership, according to this survey. + served + served Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

11. The Fun N Sun Convention • Findings about number of times attending the Fun N Sun Convention are moderately positive. While one-quarter (26%) have attended more than six times, and combined nearly two-thirds (64%) have attended at least once, the more than one-third (36%) who have never attended is a concern due to their missing a key value driver of membership. • Not surprisingly, active members, those from larger companies, and floral members are more likely to have frequently attended Fun N Sun. • While cost is the most common reason to have never attended Fun N Sun, cited by nearly one-third (31%), no specific reason dominates, or comes close to being cited by half of the few respondents who have never attended. This is more of a challenge than if one or two reasons dominated and could be addressed. • Not surprisingly, business owners and those from smaller companies are more likely to cite cost as the reason to have never attended Fun N Sun. + lower revenue ag/associate, never served + higher revenue Floral, served Other mostly = time; no one to cover business; not gotten around to it + owner/co-owner, lower revenue + > 20 years in bus Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

12. The Fun N Sun Convention • Ratings for likelihood of attending the next Fun N Sun (in 2015) are moderate, but also quite spread out. Nearly half (43%) rated likelihood in the top three box, but more than one-quarter (27%) rated likelihood in the bottom three box (0, 1, 2), and the mean (6.0) is 2 points below the top three and is squarely in the moderate range. • Not surprisingly, floral members, active members, and those from larger companies are more likely to attend Fun N Sun in 2015. + floral, served, higher revenue Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

13. Fun N Sun Mean Ratings for Importance and Satisfaction, and the lag (0 – 10 scale where 10 means very, and 0 means not at all) • This chart previews the 0 – 10 rating scale questions where importance and satisfaction were queried and compared for eight components of Fun N Sun. It shows mean ratings for importance and satisfaction, and the lag between them for the eight items. Several perspectives are important here. • First, The lag of more than 1 point for both cost components is a clear indication of cost concerns, but the overall importance of the cost to attend is rated much higher than the cost to exhibit. It appears the costs associated with Fun N Sun are short-term priorities for CalFlowers. • Second, the 0.8 lag for education and for networking with customers, etc., is both a concern for its size, and in light of the high overall importance ratings for those two components. It also appears education and networking with customers at Fun N Sun are short-term priorities. • Third, the 0.4 lag for networking with peers is fairly small, but (again) as a component it is highly rated for overall importance. • Fourth, the fairly high overall importance ratings for time of year and location, plus the absence of a lag with satisfaction, is somewhat validating for those two components. • Detailed findings, including graphs and discussion for each of the eight items, are in the pages that follow. Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

14. Biennial Fun N Sun Convention (N = 66) • Ratings for the importance of education at Fun N Sun are high. Three-quarters (75%) rated importance in the top three box, and the mean (8.2) is in the top three. Plus, nearly half (41%) gave the highest possible rating. • Ratings for satisfaction with education at Fun N Sun are high, but (as noted earlier) are noticeably lower than ratings for importance. Here, two-thirds (67%) rated satisfaction in the top three box, and the mean (7.4) is more than one-half point below the top three. • The qualitative research also found moderate to high praise for education at Fun N Sun, but seemingly less than here since the subject arose only upon probing rather than in the open-ended portion of the question. + non-owner + 1-20 years in bus Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

15. Biennial Fun N Sun Convention • Ratings for the importance of networking with peers, colleagues, etc., at Fun N Sun are high. Nearly three-quarters (70%) rated importance in the top three box, and the mean (8.2) is in the top three. Plus, more than one-third (40%) gave the highest possible rating. • Those in the middle ranges for length of membership are more likely to consider networking with peers etc., important, probably due to a combination of good, longstanding relationships and the wisdom of continuing to expand their networks. • Ratings for satisfaction with networking with peers, colleagues, etc., at Fun N Sun are high, but are somewhat lower than ratings for importance. Nearly two-thirds (62%) rated satisfaction in the top three box, and the mean (7.8) is close to the top three. • The qualitative research found networking at Fun N Sun to be very important, but more so for meeting current and potential customers, than peers, colleagues, etc. + -6-20 years mbr Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

16. Biennial Fun N Sun Convention • Ratings for the importance of networking with customers at Fun N Sun are high. Three-quarters (76%) rated importance in the top three box, and the mean (7.9) just misses the top three. Plus, and perhaps more importantly, more than half (57%) gave the highest possible rating, indicating a key value driver. • Ratings for satisfaction with networking with customers at Fun N Sun are moderate to high, and (as noted earlier) show a troubling lag below importance. More than half (58%) rated satisfaction in the top three box, and the mean (7.1) is almost one full point below the top three. • As noted in the previous page, the qualitative research found networking with customers at Fun N Sun to be of very high value, and that likely is reflected in the high percentage of ’10’ ratings here, and in the indication that active members (served) are more likely to rate importance and satisfaction as high. + floral, served + served Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

17. Biennial Fun N Sun Convention • Ratings for the importance of the Fun N Sun location are moderate to high. More than one-half (56%) rated importance in the top three box, and the mean (7.6) is within one-half point of the top three. However, more than one-third (35%) rated importance in the moderate range (5-7). • Ratings for satisfaction with the location of Fun N Sun are moderate to high, and higher than ratings for importance. Two-thirds (65%) rated satisfaction in the top three box, and the mean (7.8) is close to the top three. • The qualitative research found higher support for the Fun N Sun location, including praise for it rotating to different areas of California, and including vacation destinations popular with individuals and families. The younger member focus group indicated high value for vacation destinations such as beach accessable areas. However, that research also found concerns about travel costs for long in-state differences, and perhaps that sentiment helped somewhat subdue findings here. Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

18. Biennial Fun N Sun Convention • Ratings for the importance of time of year for Fun N Sun are moderate to high. Nearly two-thirds (63%) rated importance in the top three box, and the mean (7.5) is one-half point below the top three. • Ratings for satisfaction with time of year for Fun N Sun are moderate, and slightly higher than ratings for importance. More than two-thirds (70%) rated satisfaction in the top three box, and the mean (7.6) is close to the top three. • The qualitative research found stronger support for the time of year for Fun N Sun, based on the right time to visit farms, and a slower time of year in the industry. Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

19. Biennial Fun N Sun Convention • Ratings for the importance of the cost of attending Fun N Sun are moderate to high. Nearly two-thirds (64%) rated importance in the top three box, and the mean (7.4) is more than one-half point below the top three. Plus, more than one-third (37%) rated importance in the moderate range. • Ratings for satisfaction with the cost of attending Fun N Sun are moderate. Only one-third (33%) rated satisfaction in the top three box, and the mean (6.3) is moderate. Plus, nearly half (47%) rated satisfaction in the moderate range. • As noted earlier, the lag between importance and satisfaction with the cost of attending Fun N Sun is large, and that finding, plus the moderate to high ratings for importance indicate a concern for CalFlowers’ future planning. • The qualitative research did not specifically query the cost of attending Fun N Sun, but concerns arose anyway, especially for people who live far from the venue (either within or outside California). + floral Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

20. Biennial Fun N Sun Convention • Ratings for the importance of the cost of exhibiting at Fun N Sun are moderate, but with a wide range. Half (51%) rated importance in the top three box, and the mean (6.1) is moderate, but more than one-quarter (27%) rated importance in the bottom three box. • Ratings for satisfaction with the cost of exhibiting at Fun N Sun are moderate to low. Less than one-quarter (22%) rated satisfaction in the top three box, and the mean (4.6) is below the scale mid-point. Plus, more than one-third (35%) rated satisfaction in the bottom three box. • As noted earlier, the cost of exhibiting at Fun N Sun has the biggest lag between importance and satisfaction found in this survey, and that is a concern for CalFlowers, but the moderate level of overall importance somewhat softens the issue. + >20 years in bus, floral + floral Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

21. Biennial Fun N Sun Convention • Ratings for the importance of exhibiting at Fun N Sun are moderate, but with a wide range. Nearly one-half (41%) rated importance in the top three box, and the mean (5.7) is moderate. Plus, more than none-quarter (28%) rated importance in the bottom three box. • Ratings for satisfaction with exhibiting at Fun N Sun are moderate, and are nearly identical to ratings for importance. Nearly one-half (41%) rated importance in the top three box, and the mean (5.7) is moderate. Plus, one-quarter (25%) rated importance in the bottom three box. + floral Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

22. Member Meetings in Off Years of Fun N Sun • Ratings for the importance of the member meetings during off years of Fun N Sun are moderate. One-third (34%) rated importance in the top three box, and the mean (5.4) is nearly at the scale mid-point. Plus, one-third (33%) rated importance in the moderate range, and one-fifth (21%) rated importance in the bottom three box. • Further evidence of the low importance of the member meetings is seen in the nearly two-thirds (62%) who said CalFlowers should not have more member meetings and education in the off years of Fun N Sun, while only more than one-third (38%) said yes. • The qualitative research found stronger interest in the member meetings, including for the business of CalFlowers and for the recently added informative roundtable discussions, though also found much less enthusiasm for them versus Fun N Sun. Adding farm visits was thought to be an enhancer for off year offerings as well. + floral, served Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

23. Transportation Services Mean Ratings for Importance and Satisfaction, and the lag (0 – 10 scale where 10 means very, and 0 means not at all) • This chart previews the 0 – 10 rating scale questions where importance and satisfaction were queried and compared for the three CalFlowers transportation programs. It shows mean ratings for importance and satisfaction, and the lag between them for three items. • The lag of more .8 points for the FedEx Program stands out here for three reasons. • First, any lag of .8 is at the beginning of the ‘range of concern.’ • Second, the very high overall mean for importance would shine a spotlight on nearly any lag between satisfaction and importance. • Third, findings (importance, satisfaction, lag) for the other two transportation programs are quite pale in comparison with the FedEx Program • Due to its importance, and the lag between satisfaction and importance, the FedEx program remains a short-term priority for CalFlowers. • Detailed findings, including graphs and discussion for each of the eight items are in the pages that follow. Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

24. Transportation Services • Ratings for the importance of the CalFlowers FedEx Program are quite high (in this survey and in comparison to many surveys across the professional association sector). More than four-fifths (87%) rated importance in the top three box, and the mean (9.0) is well within the top three. Plus, more than three-quarters (78%) gave the highest possible rating, and that is rare among these kinds of surveys. • Ratings for satisfaction with the CalFlowers FedEx Program also are high, but as noted earlier, are somewhat of a lag below ratings for importance. Three-quarters (76%) rated satisfaction in the top three box, and the mean (8.2) is in the top three (though near the bottom edge of it). • It also is somewhat important to note that while very few respondents rated importance or satisfaction in the bottom three box, there is a small and moderately noticeable segment who disagrees with the otherwise dominant findings here but spread among segments. • The qualitative research also found the FedEx program to be very important and a key driver of member satisfaction and value, though also found overall strong interest in any services that effectively helps get flowers to their destinations faster and fresher. Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

25. Transportation Services • Ratings for the importance of CalFlowers’ exclusive air rates with six airlines are moderate. Just more than half (53%) rated importance in the top three box, and the mean (6.5) is half way between the top three and the scale mid-point. Also, nearly one-quarter (23%) rated importance in the bottom three box, including one-fifth (20%) who gave the lowest possible rating.’ • Ratings for satisfaction with the exclusive air rates also are moderate, and are quite similar to ratings for importance. Half (49%) rated satisfaction in the top three box, and the mean (6.6) is (basically) half way between the top three and the scale mid-point. • As noted in the previous page, the qualitative research found strong interest in any transportation services, and while that certainly includes better relationships with airlines, that research indicated some disappointment with CalFlowers work with airlines in general and in comparison to the obvious and perhaps imbalanced focus on FedEx. That disappointment likely is reflected in the findings here about satisfaction. Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

26. Transportation Services • Ratings for the importance of the CalFlowers OnTrac program are moderate. Half (49%) rated importance in the top three box, and the mean (6.0) is moderate. Plus, nearly one-third (29%) rated importance in the bottom three box, including more than one-quarter (27%) who gave the lowest possible rating. • Ratings for satisfaction with OnTrac are moderate and are quite similar to ratings for importance. Nearly half (41%) rated satisfaction in the top three box, and the mean (6.0) is moderate. + floral, served, longer mbr + floral Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

27. Other CalFlowers Products and Services Mean Ratings for Importance and Satisfaction, and the lag (0 – 10 scale where 10 means very, and 0 means not at all) • This chart previews the 0 – 10 rating scale questions where importance and satisfaction were queried and compared for eight other CalFlowers products and services. It shows mean ratings for importance and satisfaction, and the lag between them for the eight items. • Two important findings are seen here. • First, the highest lag is only .3, so no short-term priorities are indicated here. • Second, only the member directory and the weekly newsletter have moderate to high ratings for overall importance, while the other six have moderate to low ratings for importance • Detailed findings, including graphs and discussion for each of the eight items, and the other areas of inquiry are in the pages that follow. Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

28. Other CalFlowers Products and Services • Ratings for the importance of the CalFlowers member directory are moderate to high. Nearly two-thirds (61%) rated importance in the top three box, and the mean (7.4) is not far from the top three. Plus, more than one-third (35%) gave the highest possible rating, indicating a segment for whom the directory is quite valuable. • Ratings for satisfaction with the member directory also are moderate to high, and are quite similar to ratings for importance. Nearly two-thirds (63) rated importance in the top three box, and the mean (7.6) is close to the top three. Plus (again), one-third (32%) gave the highest possible rating, indicating (again) a segment for whom the directory is quite valuable. • The qualitative research seemed to find even higher value ratings than here for the member directory, primarily for helping to find specific types of members and growers of specific flowers, and helps customers find suppliers. + floral + floral Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

29. Other CalFlowers Products and Services • Ratings for the importance of the CalFlowers weekly newsletter are moderate. Just more than half (52%) rated importance in the top three box, and the mean (6.7) is approximately half way between the top three and the scale mid-point. Plus, one-third (34%) rated importance in the moderate range. • Ratings for satisfaction with the weekly newsletter are moderate and quite similar to ratings for importance. Half (50%) rated satisfaction in the top three box, and the mean (6.9) is more than one full point below the top three. Plus, more than one-third (35%) rated satisfaction in the moderate range. • The qualitative research found moderate to high value ratings for the newsletter, with many specific comments about the link between relevance to specific interests and value, and mixed (positive and negative) findings about the value of the emphasis on highlighting specific companies and individuals. + 6-20 years mbr Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

30. Other CalFlowers Products and Services • Ratings for the importance of the CalFlowers Box Standardization Program are moderate. Nearly half (41%) rated importance in the top three box, and the mean (5.7) is quite close to the scale mid-point. Plus, nearly one-third (30%) rated importance in the moderate range, and nearly one-quarter (22%) rated importance in the bottom three box. • Ratings for satisfaction with the box standardization program are moderate. Only just over one-quarter (28%) rated satisfaction in the top three box, and the mean (5.4) is quite close to the scale mid-point. Plus, nearly half (46%) rated satisfaction in the moderate range. • The qualitative research found stronger interest in box standardization, but it was accompanied by a combination of praise for progress and pessimism and uncertainty over how much more can be done even though more is needed. Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

31. Other CalFlowers Products and Services • Ratings for the importance of CalFlowers’ affiliation with the United Agribusiness League (UAL) are low. Only just over one-quarter (27%) rated importance in the top three box, while nearly half (44%) rated importance in the bottom three box, including one-third (33%) who gave the lowest possible rating. Plus, the mean (4.2) is slipping toward the low range. • Ratings for satisfaction with the UAL affiliation are low and are quite similar to ratings for importance. One-fifth (20%) rated satisfaction in the top three box, while nearly half (40%) rated satisfaction in the bottom three box, including nearly one-third (30%) who gave the lowest possible rating. Plus, the mean (4.0) is quite low for these kinds of survey ratings. • The qualitative research found very little awareness of the UAL, and found respondents have preferred alternatives for the kinds of insurance and information benefits UAL offers. Those two findings likely are reflected in the low ratings shown here. + floral - <1 year to 5 years mbr + floral Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

32. Other CalFlowers Products and Services • Ratings for the importance of Hortica Insurance are quite low. The percentage of bottom three box doubles those in the top three (45% vs. 23%), and the mean (3.9) is low for these kinds of survey findings. Plus, nearly half (42%) gave the lowest possible rating. • Ratings for satisfaction with Hortica insurance also are low, and are quite similar to findings for importance. • The qualitative research also found either low awareness or lack of interest in Hortica Insurance, except among one respondent for whom it is an excellent product at a good price. Those findings likely are reflected here. + floral, longer members, > 20 years in bus + served, > 20 years in bus Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

33. Other CalFlowers Products and Services • Ratings for the importance of CMA Business Credit Services are low. More than three times as many respondents rated importance in the bottom three box as the top three (54% vs. 14%), and the mean (3.1) is low for these kinds of survey findings. Plus, nearly half (44%) gave the lowest possible rating. • Ratings for satisfaction with CMA Business Credit Services also are low, and are quite similar to findings for importance. • The qualitative research found stronger interest in the CMA Business Credit Services (several high and moderate value ratings), but also found low awareness of it and that likely is reflected here. + floral + floral Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

34. Other CalFlowers Products and Services • Ratings for the importance of CalFlowers’ partnership with ADP are low. The percent of bottom three box ratings overwhelms the amount of top three (55% vs. a very low 10%), and the mean (2.9) is very low for these kinds of survey findings. Plus, nearly half (48%) gave the lowest possible rating. • Ratings for satisfaction with the ADP partnership also are low, and are quite similar to findings for importance (though with more than half giving the lowest possible rating). • The qualitative research also found either low awareness or lack of interest in the ADP partnership, except among one respondent for whom it is an excellent product at a good price. The lack of interest or awareness likely is reflected here. + floral + floral, served Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

35. Other CalFlowers Products and Services • Ratings for the importance of the Hertz Rental Car benefit are low. The percent of bottom three box ratings overwhelms the amount of top three (57% vs. a very low 11%), and the mean (2.8) is very low for these kinds of survey findings. Plus, nearly half (46%) gave the lowest possible rating. • Ratings for satisfaction with the Hertz Rental Car benefit also are low, and are quite similar to findings for importance. • The qualitative research also found either low awareness or lack of interest in the Hertz benefit, and that finding likely is reflected here. Many associations have found low ratings for these types of benefits as members can find better deals by themselves and they look negatively at the association for not being able to get the best deal. These types of benefits are also “off mission” and take up the associations energy to administer. Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

36. Legislative and Regulatory Advocacy Q19. Statement agree with most (Advocacy) • Findings about CalFlowers role in legislative or regulatory advocacy are quite clear, as four fifths (89%) agree most with the statement about working with other organizations, while nearly none agree most with the statements about doing advocacy on its own, or not at all. • The qualitative research found strong opposition to CalFlowers direct involvement in advocacy, in part because of how its diverse membership base would make it difficult to establish and promote specific positions, but also as is reflected here because it is better for other organizations to take the lead, and perhaps CalFlowers can be an information resource in support of the effort. • Two issues stand out as important for advocacy regardless of who takes the lead, as trade, import/export, etc., and commercial and freight transportation each were cited by approximately two-thirds (70% and 65% respectively). • Each of the other three issues shown here was cited by more than half of respondents, and therefore the findings here illustrate the industry’s legislative and regulatory agenda. • These issues were derived from the qualitative research. CalFlowers should not be involved in legislative & regulatory advocacy. Q20. Important advocacy issues, regardless of who advocates for them Trade, import and export policies such as tariffs, duties, taxes, inspections, etc. - < 1 year to 5 years mbr Commercial and freight transportation laws, regulations, infrastructure, etc. Labor issues such as wages, working conditions, etc. + floral Immigration policies regarding foreign workers + higher revenue Environmental laws, regulations, etc., such as water use, fertilizers, pesticides, etc. Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

37. Geographic Reach Q21. Statement agree with most (geographic reach) • While no single position about CalFlowers’ geographic reach dominates, more than one-third (35%) say the focus should be mostly on California with some focus on the rest of the U.S. • Given the second most popular statement here also says the focus ‘mostly’ should be on California, that sentiment stands out the most in these findings. • Further, since the third item is about exclusive focus on California, and the two items about equal focus on California and elsewhere were cited by so few (15% and 6% respectively) it appears the survey has found a much stronger preference for California, with some interest in either the rest of the U.S. or in the rest of the Western U.S. • The qualitative research found mixed results about CalFlowers geographic reach, including uncertainty over whether a focus beyond California would strengthen or dilute the association and its benefits. The key exception to uncertainty is how the FedEx program should be national. • From an international perspective, the qualitative research indicated that CalFlowers should review the possibility of acknowledging the importance of imported flowers since market demand exists year round (shippers / wholesalers). CalFlowers should focus its efforts, programs, MOSTLY on California but also on the rest of the United States. CalFlowers should focus its efforts, programs etc., MOSTLY on California but also include the rest of the Western U.S. CalFlowers should focus its efforts, programs, etc., EXCLUSIVELY on California. CalFlowers should focus its efforts, programs, etc., about EQUALLY on California and the rest of the U.S. CalFlowers should focus its efforts, programs, etc., about EQUALLY on California and the rest of the Western U.S. Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

38. Other Memberships Q22. Membership in other organizations (choose all that apply) • No single organization dominates as far as respondents’ memberships, but the Society of American Florists and the California Cut Flower Commission were cited by approximately half (52% and 48% respectively). • Three other organizations are fairly prominent here (all around 40%), while three others are quite low. • The findings here reinforce the dominant finding about CalFlowers engaging in legislative or regulatory advocacy in conjunction with the top two organizations cited here and consideration may be given to supporting the others as well. • These findings also indicate the potential for some competitive pressure for CalFlowers from two, or perhaps five organizations, for the time and attention of its membership base. Society of American Florists California Cut Flower Commission + > 20 years in bus, longer members, floral Wholesale Florist and Florist Supplier Association + non-owner, > $5 million revenue, served Farm Bureau + > 20 years in bus, longer members, floral Produce Marketing Association. + > 20 years in bus, > $5 million revenue American Institute of Floral Designers Floral Suppliers of America Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

39. Communications • Findings are good for frequency of CalFlowers communications with members as nearly three-quarters (72%) said the communications are the right amount. • However, the tendency for respondents from smaller companies to disagree with the predominant finding here, and for them to be more likely to say communications are not frequent enough, indicates CalFlowers should do more to keep people from those types of companies informed about its activities, efforts, etc. • The qualitative research also found strong praise for CalFlowers communications, including for being informative, timely, and easy to access. • The qualitative research also found a suggestion for more segment-specific communications, to ensure relevance and interest among recipients. • And, the qualitative research found some criticism for lingering uncertainty over the organization’s name change. • Ratings for the importance of CalFlowers communications to the general public are moderate to high More than half (53%) rated importance in the top three box, and the mean (7.1) is within one point of the top three. Plus, one-third (32%) gave the highest possible rating. • The qualitative research found mixed results about whether CalFlowers should communicate to the general public, though not surprisingly found interest in the association helping to promote the benefits of flowers. This is a monetary issue for the association, as PR campaigns are very expensive, hard to measure and likely are forgotten with tomorrow’s news on this scale. - lower revenue + lower revenue + lower revenue, 1-20 years in bus Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

40. Website Q17. Components of the CalFlowers website (Visited at least once in past year, N=49) • Although only a small number of respondents visited the CalFlowers website in the past year, ratings are moderate to high for the site. However, while combined ‘excellent’ and ‘good’ ratings from nearly four-fifths (77%) to more than four-fifths (85%), they are much more ‘good’ than ‘excellent.’ • Plus, each attribute received a ‘fair’ rating from at least 10%, but more importantly the quality and relevance of information on the site was rated as fair by nearly one-fifth (18% and 22% respectively) • It is good that ‘poor’ ratings are almost completely absent here. • The qualitative research also included general or lukewarm praise for the website, including how it frequently is only for information about the Fun N Sun or other events, or for transportation information. • The qualitative research also found acknowledgement and praise for recent improvements to the CalFlowers website, but also suggestions to enhance the site further to make it a centralized, 24/7 resource for easy access to information by members and the general public, and a preferred alternative to information push to people who may not want it overall or at specific times. Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

41. Professional Staff Q23. CalFlowers professional staff attributes (Contacted staff at least once in past year, N=61) • Although only a small number of respondents interacted with the CalFlowers professional staff in the past year, their ratings are very good for three of the four attributes, and good for the fourth. • It is good that nearly all gave a combined ‘excellent’ and ‘good’ rating for the two highest rated attributes, though would be better for the knowledge and resources attributes for more ratings to be excellent than good. • The qualitative research found strong praise for the staff, including for recent changes and improvements. Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014

42. Summary Question Q28. Going forward, what else should CalFlowers know about or address to ensure members receive value and to help your industry succeed? (N = 30) • No specific item dominates the findings, so it is further evidence of strong demand for information, progress on packaging, and cooperation with other organizations. • It also gives some additional weight to the issue of transportation, and the need for stronger communications. Confidential – CalFlowers Strategic Direction Survey - AMMR – June 2014