Calyx Flower Case Essay

643 Words3 Pages
Situation Overview
Our customers care about the following buying factors: longevity, presentation, speed of delivery, ease of ordering, freshness, and price. Our customers are 57% women between 30-55 years of age with high disposable income who want to send not only flowers, but love. Calyx offers our customers premium mail-order gifts. We differentiate ourselves from competitors (FTD, by delivering our product directly from growers to customers, ensuring we offer the freshest flowers with the most longevity.

Problem Identification: The Awareness Gap
While we have gross margins of 50%, and a premium product compared to our competitors, we do not reach full revenue potential. We have a desirable return on direct mail
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* Cons: Internet advertising is not a premium media, so it lessens the premium feel of our high-end product. Similarly, we have little control over which other products are advertised alongside ours, which may also compromise the premium feel. Overall, Internet advertising may not effectively communicate the benefits and quality of Calyx Flowers.
Option 3: Increase mass-media advertising. * Pros: Mass-media advertising reaches a wider audience and is a premium media, which aligns with our brand perception. Customer targeting is possible, and we can also target by time (ex: additional commercials close to Christmas, Valentine’s Day, etc). Mass-media marketing has been successful in the past with other Vermont Teddy Bear brands and also used extensively by competitors. * Cons: Mass-media is the most expensive advertising. There is a higher risk of spending money to reach customers who are not interested in Calyx Flowers.

Preferred Strategy: Mass Media Advertising
Mass-media advertising would entail print, television, and direct-response radio ads focusing on the premium quality, freshness, and longevity of Calyx Flowers. While mass-media advertising is expensive, we have 50% margins right now, providing sufficient leverage to mitigate cost risk. Mass-media advertising best addresses the problem of stagnating growth caused by a customer awareness gap of the existence and value of Calyx Flowers

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