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Calyx Notes

The document discusses Calyx & Corolla (C&C), a flower retailer that sells directly to consumers. It identifies strengths like freshness and variety, but also weaknesses like flowers arriving not fully bloomed. It questions if C&C is missing opportunities to market freshness for corporate clients. The document suggests ways for C&C to improve, including using databases to better target men and build customer engagement. It advises treating database marketing as more than just direct mail, and targeting opportunities like corporate accounts and continuity programs.

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88 views6 pages

Calyx Notes

The document discusses Calyx & Corolla (C&C), a flower retailer that sells directly to consumers. It identifies strengths like freshness and variety, but also weaknesses like flowers arriving not fully bloomed. It questions if C&C is missing opportunities to market freshness for corporate clients. The document suggests ways for C&C to improve, including using databases to better target men and build customer engagement. It advises treating database marketing as more than just direct mail, and targeting opportunities like corporate accounts and continuity programs.

Uploaded by

prakshi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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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?

1
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

2
Strengths

 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

3
- Have no consultation services for funeral/weddings

4
WHAT IS CALYX & COROLLA MISSING OUT ON?

 FRESHNESS PROPERTY

 Educates consumers on flower care, arrangements

 But not on “Freshness” Less important for


weddings, funerals

 Freshness Critical for corporate


and personal markets

 Yet “freshness” property not being taken advantage of to attack the

corporate market

 Focuses on catalog advertising single catalog targets everybody (Implication of

the internet)

 85% of Calyx customers are women

 Not reaching any men. A possible “reminder” service that is personalized

and targeted at men (Role of the Internet)

5
What should C&C do? Suggestions.

DATABASE STRATEGIES (Calyx & Corolla)

 “Dialogue”  Build “response devices”

 Increases consumer involvement

 Enriches the database

 Improves future targeting

 Attack corporate markets

 Tie-ins: Bloomingdale vases and Calyx & Corolla

Reduces advertising burden for C&C

 Cross promotions (Centac and C&C)

 Get space in retailer mail-orders

- to reduce acquisition costs

 Using the INTERNET

 Prospect for “continuity” programs

- which help tide over seasonality

THINK DATABASE MARKETING NOT JUST A MAIL-ORDER HOUSE

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