Calyx And Corolla

Calyx And Corolla

Marketing analysis (the 5 C’s)
1. Customer needs:
- fresh flowers for various occasions (holidays, family events, business related, …)
- the flower selling business increased at a rate of 7.7% since 1985, until 1990 to almost $9 billion
2. Company skills:
- Ruth Owades graduated from HBS, and worked as marketing director; she launched and consolidated a successful direct mail business (Gardener’s Eden) which she sold it after;
- Fran Wilson, graduate from HBS; worked in Gardener’s Eden;
- Ann Hayes Lee – 20 years of experience in catalog business
3. Competition:
- FTD (pluses: worldwide cooperative with 25000 florists; minuses: longer times between flower’s cut and delivery to consumer, thus the flowers were kept by the consumer only for few days)
4. Collaborators
- Growers
- Federal express
5. Context: - deliveries only Monday – Saturday, Sundays and legal holidays not.
Marketing segmentation
- Demographic: female mostly
- Geographic: continental US
- Customer behavior: quality oriented
Target market selection
- Individuals, companies
Product and service positioning
- Fresh flowers delivered in one or two days after the cut, and in the precise date requested by customer
Marketing Mix
1. Product and service: fresh flowers beautifully wrapped
2. Place/channels: catalogue sent to hundred thousand of individuals, magazines, stores
3. Promotion:
3.1 Market: individuals, companies
3.2 Mission: increase popularity / awareness, thus increase sales
3.3 Message: fresh flowers, anytime, anywhere
3.4 Media: catalogue, TV, radio, newspapers, magazine
3.5 Money: …..
3.6 Measurement: analysis of the customer database
4. Pricing: lower than competitors, as the growers were selling directly to the customer
Customer acquisition
- Catalogue, magazines, word-of-mouth, programs
Customer retention
- Quality, delivery on time, price