Calyx and Corolla
Calyx and Corolla
Analysis and Recommendations
Our analysis confirms that Calyx and Corolla 's (C&C) concept of eliminating the middleman in the supply chain, thereby enabling the delivery of fresh flowers is unique, potentially game changing and if executed correctly, extremely profitable. We believe C&C’s target market consists of middle to high income men and women as well as very high income women and in order to succeed, C&C must establish itself as the top of mind provider among its targeted segment. Achieving this goal will require aggressive advertising and clever promotions that establish a luxury brand image while substantial new funding will be required in order to meet these goals. It is our recommendation that C&C implement market penetration strategy that includes both middle and high income adults in a concentrated effort to become the most recognized brand in its industry. The detailed analysis and recommendations for marketing strategy constitute the remainder of the paper.
The $9 billion fresh cut flower industry, which was growing at 7.7% per year, was a mature and competitive market when C&C was first established. The fragmented industry is composed of individual florists (59%), supermarkets (18%), and other retailers including wire services, FTD, and 1-800 Flowers (23%). In order to continue to grow and protect its initial success, C&C must focus consistently on a brand strategy that demonstrates the customer benefits by leveraging its key differentiators—freshness and longevity, reliable delivery dates, competitive pricing, convenience, and personalized and knowledgeable customer service (see competitor profile appendix).
C&C has successfully gained an understanding of its customers, order recipients, and potential future customers through its extensive databases and must use this information to enhance its market segmentation efforts. First of all, it should continue to penetrate the 30-55 year old working
Analysis and Recommendations
Our analysis confirms that Calyx and Corolla 's (C&C) concept of eliminating the middleman in the supply chain, thereby enabling the delivery of fresh flowers is unique, potentially game changing and if executed correctly, extremely profitable. We believe C&C’s target market consists of middle to high income men and women as well as very high income women and in order to succeed, C&C must establish itself as the top of mind provider among its targeted segment. Achieving this goal will require aggressive advertising and clever promotions that establish a luxury brand image while substantial new funding will be required in order to meet these goals. It is our recommendation that C&C implement market penetration strategy that includes both middle and high income adults in a concentrated effort to become the most recognized brand in its industry. The detailed analysis and recommendations for marketing strategy constitute the remainder of the paper.
The $9 billion fresh cut flower industry, which was growing at 7.7% per year, was a mature and competitive market when C&C was first established. The fragmented industry is composed of individual florists (59%), supermarkets (18%), and other retailers including wire services, FTD, and 1-800 Flowers (23%). In order to continue to grow and protect its initial success, C&C must focus consistently on a brand strategy that demonstrates the customer benefits by leveraging its key differentiators—freshness and longevity, reliable delivery dates, competitive pricing, convenience, and personalized and knowledgeable customer service (see competitor profile appendix).
C&C has successfully gained an understanding of its customers, order recipients, and potential future customers through its extensive databases and must use this information to enhance its market segmentation efforts. First of all, it should continue to penetrate the 30-55 year old working