Marketing Calyx & Corolla

2050 Words9 Pages
In this paper, we analyze the case of Calyx & Corolla at the time the case was written to present a comprehensive marketing strategy and recommendations. First we discuss how the company leverages resources to create its brand equity. We then discuss the current competitive environment and opportunity for growth in the flower business. Calyx & Corolla’s key brand equity is fast delivery of fresh flowers. This is enabled by its resource of an innovative distribution system which allows them reduce the time lag between the time when flowers are cut and the time when customers receive flowers by up to ten days. Another resource that Calyx & Corolla leverages effectively is its relationships with flower growers and FedEx. The company invested significant amount of time and effort to develop strong relationships with these key stakeholders over a few years to reinforce the quality of service Calyx & Corolla provides. These long-term relationships also act as a barrier to entry against competitors as these relationships cannot be developed over night. However, Calyx & Corolla has only $10 million sales in a $9 billion industry. Its competitors range from traditional florists, FTD which includes 800-Flowers that is quickly increasing its market share and supermarkets which are trying to move upmarket. Furthermore, there are emerging companies such as Floral Gift Express and Stillwater who are trying to replicate Calyx & Corolla’s direct mail concept. This results in a highly competitive and fragmented market. Given that most of these existing players focus on holidays, occasions and events to provide flowers and delivery service, one recommendation for Calyx & Corolla is to drive growth through creation of regular / constant demand for flowers in its existing segments where it already has strong traction and brand awareness. This can be achieved in two segments.

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