Calyx & Corolla Report

2504 Words Feb 12th, 2006 11 Pages
Problem Statement
Calyx & Corolla, as a company, has enjoyed considerable success since its humble beginnings in 1988. As we move forward, our goal is to solidify our presence in the flower market by evolving our current business model. By examining our current marketing techniques and market environment, our aim is to develop a new and successful business approach which will ensure long-term financial growth and stability. Our foundation on the creativity of Ruth Owades has set us apart from traditional retailers, and our greatest asset has been our ability to be there for our clients for the simple and meaningful moments in their lives. Our long-term prosperity will entail engaging in a new and different marketing campaign, which will
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The FTD business model is based on receiving orders at an originating florist, and transmitting the order to a florist local to the delivery address. There are several key differences between FTD and Calyx & Corolla. FTD retains about 7% of the final sale price, with the majority going to the receiving and delivering florists. By comparison, Calyx & Corolla retains 80% of the price of the flowers, with 20% going directly to the grower. However, the principle difference between Calyx & Corolla is that while FTD retains over 20,000 florists within the United States, Calyx & Corolla is not directly affiliated with florists, but has strong ties to the fresh flower growers themselves. Calyx & Corolla have decided to go the other way from the traditional model of selling fresh flowers, somewhat side-stepping direct competition with major retail players.

Traditional retail stores cannot strictly be classified as competitors, because of their different operating methods. While retailers rely on consumers setting foot into their stores, Calyx & Corolla reaches out to its target market by way of catalogs, telemarketing, and in some cases, promotional tie-ins with selected retail stores. Even the approach of FTD follows more closely the traditional retail model than that of Calyx & Corolla. It is precisely for this reason that Ruth Owades saw an opportunity to delve into an unexplored market. However, while Calyx & Corolla enjoy a much higher operating gross per sale,

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