Calyx And Corolla Essay

Hoang Le 1000704240 Prof. Dewan LEC02
Problem Statement
Calyx & Corolla has enjoyed its excellent value chain that sets it apart from traditional companies. However, Calyx & Corolla should move forward in solidifying its position in the market by examining its current marketing techniques and also its target customer segments that will ensure the company’s long term prosperity and stability.
Company Analysis
Strengths
- Strong network with Fed Ex that helps deliver flowers faster than other competitors
- Low distribution expense and high profit due to efficient value chain
-Sophisticated customer database that keeps track of customer preferences
-Strong relationship with growers that restrict growers to provide service to other florists.
-Strong

Dewan LEC02
- Success of promotional tie-ins - Imitation of business structures
- Larger competitors such as FTD with large advertising budget will reach more consumers
Consumer Analysis
Flowers are purchased for many reasons such as events like funerals and weddings, holidays and corporate purposes. When buying flowers, the consumers take into consideration variety of aspects such as the freshness, longevity and more importantly, the delivery time. By mastering these three, Calyx & Corolla can certainly become very successful. In 1987, most customers preferred to buy flowers in stores due to freshness. Owades realized that she could take the consumer needs for fresh flowers to a new level by creating an opportunity for them to purchase them through mail order with fast delivery. This service had helped the company grew to $10 million by 1991.
In particular, active buyers for Calyx and Corolla tend to buy flowers at least twice a year.
Eighty percent of them are women from 30 to 55 years old. Majority of these women have a substantial income to spend. Corporate clients are also valuable to the company as they

Action Plan
In the short term, the company should consider target retail customers through promotional tie-ins. First of all, the company should negotiate a price with the stores and promote products in-store. Calyx & Corolla can set a 25% – 30% sales from retails to attract last minute shoppers and potential buyers who are unaccustomed to mail orders. For the next two to three years, Calyx & Corolla should acquire around 300 – 500 stores around U.S. Also, the company should limit the mailed catalogs as well as mailing lists and focus more on other media advertising such as television and print ads. These are good to capture broader customers as opposed to individual mailed catalogs. These will help Calyx & Corolla reduce the cost for advertising. With medium term, Calyx & Corolla should build up relationship with more delivery companies to be less dependable on Federal Express, due to its vulnerable situation in the peak season. However, to reduce the bargaining power of these new shipping couriers, they should be treated as alternate options when needed as opposed to regular basis. Also, Calyx & Corolla should renew the contract with 30 growers by adding policies such as financial penalties