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Calyx & Corolla Case Report. ... As a result of their efficient distribution system,
Calyx and Corolla changed the way flowers were distributed to consumers. ...
Calyx & Corolla. ... Positioning / Targeting / Product Differentiation Calyx & Corolla
has positioned themselves as a slightly upscale provider of flowers vs. ...
Calyx and Corolla. Executive ... etc. Also, Calyx and Corolla sought to engage itself
with the Corporates and several other promotional tie-ins. ...
Calyx & Corolla Report. Problem Statement Calyx & Corolla, as a company, has enjoyed
considerable success since its humble beginnings in 1988. ...
... Growers Distributors Wholesalers Traditional Outlets (Retail Florists, Supermarkets,
etc) Customers Appendix B - Catalog Sales of Calyx Corolla - Analysis of ...
Submitted by wcprice on October 7, 2006
Category: Business
Words: 1862 | Pages: 8
Views: 309
Popularity Rank: 23,140
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I. Problem Definition
Calyx & Corolla (Calyx) needs to determine whether it should change its current strategy and positioning as a mail order operation to compete more directly against more traditional outlets, such as florists, and wire services, such as FTD. How could Calyx attract the largest group of potential buyers who patronized florists or other retailers and were not accustomed to buying by mail order. Calyx needs to determine what actions it should take to make a profit and grow its business.
II. Solution Possibilities
Calyx’s objective is to position and market its flower business to fully utilize its competitive advantage to reach its profit and growth potential. To accomplish this objective, Calyx must determine whether it can effectively target potential buyers who patronize florists and other retailers versus mail order.
The retail plant and flower industry in the U.S. is a $9 billion per year industry. The industry has grown at a rate of 7.7% since 1985. The market landscape is broken into three areas. Twenty five thousand retail florists have 59% of the market ($5.31 billion) and supermarkets have about 18% of the market ($1.6 billion). Nurseries, mail order companies (seed companies) and other retailers accounted for the remaining 23%.
FTD is a member owned co-operative of 25,000 florists. Member florists take orders from local customers for delivery by member florists elsewhere. FTD positioned itself to target customers in a wide cross section of households with incomes greater than $35,000. FTD provided a service by allowing customer who desired to purchase flowers for someone in another location to conveniently use a local florist to make that purchase without a need to find a florist in another location. FTD processed 21 million orders with a total value of $700 million in 1990. FTD’s average order was $32 in 1990. (Ex. 3) FTD retained 7% of the sales while 20% went to the order...
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