Calyx Flowers Essay

601 Words3 Pages
Problem: • Low revenues • Target not defined/identified correctly • Calyx needs to better understand what are the drivers behind their current customer orders • Attempt to increase the frequency of their purchases, both the higher end and the lower end • Determine if there are synergies within their other product lines that could help drive revenue • Lack of clearly defined market segment that is being targeted Incongruity between Calyx Flowers business model and the parent company’s original goal Goal: • Bottom Line: o Maintain 50% gross margin while increasing orders from current customer, and lower the cost of obtaining new customers o Increase Revenue by 20% o Gross-profit margin by 20% in the next year o Maintain gross margin while gaining incremental sales revenue from additional segments Increase the yield from current customers , recipients by 50% • Intermediate: o Increase frequency of purchases by prior customers o Reduce cost per customer on recipients and mail listings o Shift discipline of Calyx Flowers from Operational Excellence model to one that is Customer Intimate o Build the customer relationship with previous customers (women, 30-55 years old, with disposable income) o Generate more repetitive business throughout the year. Go after the customer lifetime value. o Clearly delineate and discuss Calyx Flowers service and product offering to avoid conflict with parent company’s business model o Calyx needs to work on measures to expand its market share in a mature market Impediment: • No understanding of why current customers use Calyx over other flower sources • High cost of obtaining order from new customers (low yields) and no defined target market (segments) • Prior customers are already receiving catalogs and influencing them to increase their frequency (i.e. maintaining yield) will not be easy •
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