Calyx & Corolla Case Summary

I. Goal
In the fresh flower market, there are three primary segments: (1) flowers for regular décor, (2) flowers for special occasions, and (3) flowers for last minute gifts. Each segment differs with regard to the amount of planning before purchase, the quality of flowers required, and level of service required to cater to the respective market. Calyx & Corolla, with its exclusive contracts with thirty quality flower suppliers and delivery with FedEx, is uniquely positioned to cater to “flowers for regular décor” segment by providing high levels of quality and service for a customer who plans their purchases in advance. Refer to Exhibit 1.

Calyx & Corolla should increase sales in its continuity program by x% over the next x years through
Impediment
The “flowers for regular décor” segment prefer cheaper, artificial flower arrangements rather than fresh flowers since they are durable, last forever, and can be easily changed.

III. Solution
The “flowers for regular décor” segment consists of both corporate and home customers. The corporate customers consist primarily of retailers, hotels, restaurants, and other professional offices that require regular storefront displays or arrangements. The home customer is typically a female aged 30-55 years with disposable who enjoys decorating her home. Calyx & Corolla should focus on the cross-section of these two groups that exhibit similar behavior in their preference for flowers.

To target this segment, Calyx & Corolla marketing should consist of: (a) television advertisement, (b) magazine advertisement, (c) in-store cross-promotional efforts at home decorating and furnishing retail stores, and (d) catalog mailing. Marketing expenditure should be x with an expected cost to acquire a new customer of x.

Television Advertisement – Calyx & Corolla should target HGTV network for a commercial advertisement that emphasizes its subscription
C&C should select from the best known home décor magazines House Beautiful, Martha Steward Living, Better Homes & Garden, and Elle Décor to advertise its continuity program. If possible, C&C should work with magazine to showcase the flowers in the context of a well-designed kitchen, bathroom, or living room area so that she is able to visualize the value of fresh flowers. This effort will provide visibility and credibility to fresh flowers as a recommended way to decorate homes.

Cross-Promotional Efforts – Calyx & Corolla should target retail stores that cater to home decorating and furnishing needs, such as Pier One, West Elm, IKEA, Home Depot, Pottery Barn, Bed, Bath & Beyond, et al. As part of the marketing strategy, Calyx & Corolla should incent the home furnishing retailer to subscribe to a 4-month, 6-month, or 12-month continuity program by providing a x% discount OR free one-time staging of products…

As part of the storefront display, Calyx & Corolla should stage the furniture with an assortment of flowers with C&C logo material to drive follow-up sales from the customer. C&C catalogs should also be available in-store. This strategy will provide a consistent source of revenue through the subscription-based services provided by the businesses plus it will also drive more sales from the