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Calyx & Corolla

1. Gap in market structure
2. Strengths/Weaknesses
3. Strengths and weaknesses of Calyx and Corolla versus a conventional retailer?
4. Markets/Benefits (recall class discussion)
5. What are they missing out on? Are they under-marketing?
6. Is Database Marketing the same as Direct Mail? How is database marketing different from conventional mass marketing?
7. What should Calyx & Corolla (C&C) do?

Market Structure

1. Why does the gap in the market for C&C arise?
2. Long distribution channel Grower $5 ( Distributor (50% markup) ← $7.5 Wholesaler (100% markup) ← $15 Florists (150% 59 200% markup) $37.50 to $45.00
3. - Perishability/Freshness a critical business dimension - Stock at store seven days old on average - “Fresh” flowers have a premium
• Freshness: • Longevity: (longer house life) • Information: Catalog provides information about flowers not available with an FTD florist • Information on arrangement/care • Suggestions on vases/display accessories • Variety: 30 geographically dispersed growers • Personalization: Hand-written card • Database: • Focus on lifetime value • Acquisition then retention • Dialogue with consumer

Weaknesses - Flowers arrive in a bland FedEx package - May not be in full bloom on receipt - Unable to provide Sunday delivery - Vulnerable to bad weather - Have no consultation services for funeral/weddings WHAT IS CALYX & COROLLA MISSING OUT ON? • FRESHNESS PROPERTY • Educates consumers on flower care, arrangements • But not on “Freshness”

• Freshness

• Yet “freshness” property not being taken advantage of to attack the corporate market

• Focuses on catalog advertising single catalog targets everybody (Implication of…...

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