Calyx Flower Case Study

811 Words4 Pages
Memo To: Mr. John Gilbert From: Janvi Desai, Annie Dineen, Zahi Francis, Yun Liu, Shuqi Zhu Team: MMG Section: 005 Date: February 24, 2008 Re: Calyx Flowers Recommended Action Plan Executive Summary To address the problem of not effectively targeting the desired consumer base of upscale, high-spending businesses and businesspeople with the best positioning for their need for a superior, high quality product, we recommend a high increase in internet advertising and an enhanced focus on mass-media advertising, with a shift away from traditional catalogs. This advertising should be particularly targeted to outlets with a demographic match to our desired target. Situation Overview The primary problem faced by the company is that while they have a competitive advantage among online/phone floral retailers in that their product remains fresher longer, they lack market share compared with competitors 1-800-FLOWERS and FTD because customers aren’t aware of their product. While traditional retail florists are still the dominant way that consumers order flowers, internet sales represent a growing percentage of sales, but Calyx has not most effectively positioned their product based on their competitive advantage to their target market. The primary cause of the problem is in large part a lack of targeted marketing as well as weak positioning regrading Calyx’s competitive advantage, freshness. Consumers don’t currently associate Calyx flowers with their freshness. Because Calyx may not be the cheapest or most convenient option, consumers see the brand as simply another distributor. While the brand has been successful, they have not reached their maximum potential because potential consumers in their target demographic are not aware of this advantage. Recommended Course of Action I recommend that the company make the following changes
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