Calyx Flowers Essay

420 Words2 Pages
1. What should Calyx Flowers do?  Chose Strategy3 “Increase Internet Advertising” Frist, to compare three strategy, I made some assumptions. -Additional promotions budget (cost) is same in each strategy -Response rate could improve by 25% in Strategy2, by100% in Strategy3 -Orders from customers consist of 60% by phone and 40% by Web in each customer.  Although we need more information such as the relation between advertising cost and customer response rate, based on my assumption this strategy could be most profitable. (Please see the attachment.)  By analyzing web transaction data, Calyx Flowers could more precisely focus potential customers. To make this strategy success, I recommend that they use search engine optimization (SEO), the process of affecting the visibility of a website or a web page in a search engine's "natural" or un-paid ("organic") search results. 2. Why should Calyx Flowers choose the strategy?  Strategy 3: Increase Internet advertising I assumed that this strategy could effectively focus on the target customers by Web marketing and the response rate on the Web could improve more. If the response rate on the Web is increase by 100%, as four times as that of Strategy2, the profit could be higher than that of other strategies. Someone may argue that the assumption is promising observation. However, because other competitors haven’t focus on Internet advertising, there is room that Calyx Flowers’ internet advertising could stand out. 3. Why should Calyx Flowers give up other strategy?  Strategy 1: Increase the number of catalogs If the response rate of the additional 3million catalogs is as same as that of the initial catalogs, the increasing margin is only $1,200,000 while advertising cost increase by 2,200,000. This is less profitable situation than the original condition. However, if the response rate is better than current

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