View Calyx and Corolla Marketing Case Analysis.pdf from MBA 507 at Alabama A&M University. Marketing Strategy Case 1: Calyx & Corolla Problem Statement: Calyx & Corolla (C&C) faces the challenge of. Calyx & Corolla. PDF Hardcopy Black & White. Access to case studies expires six months after purchase date. Publication Date: October 31, 1991. Describes a new entry into the $8 billion flower industry in the United States. Combining the use of overnight air freight (Federal Express), information technology,.

Calyx and Corolla is a new company in the fresh flowers market. They have pioneered the concept of selling fresh flowers by mail.

In its short lifetime, C&C has established strong relationships with many large growers, who cut flowers when ordered, thereby increasing the life of the buds tremendously over typical florist shops whose buds may already be a week old when purchased. They have also developed a strong relationship with Federal Express, who is their primary distributor. Federal Express has a well-established brand name, known for speedy, on- time, and reliable delivery, giving C&C’s promise for freshly delivered flowers credibility among customer who are u nfamiliar with C&C’s brand. C&C reaches customers through a catalogue, which is mailed out to repeat customers and rented mailing lists. Individual consumers are more familiar with competitors such as FTD, who has a national network of florists. C&C’s top executives, however, are no strangers to the mail-order business, which gives them at least somewhat of an edge. Instead of going for a full summary we would take up different models to split open the case.

Firstly we try to look at the Calyx and Corolla in light of Porter’s frameworks. Fresh flower industry in US stood at $9 billion and has been growing at a very healthy rate. Maj ori ty of flo wer s (60%) are imp ort ed fro m Col umbi a. A typ ica l dis tri but ion net wor k in traditional flower market in US has the following structure – From the above distribution channelwe can see that the price of a flower sold for Rs.

Igo Map S Windows Ce Services. X to the distributor costs around Rs.8X-12X. This chain typically provides 10% of the total sales value to the grower s. The chain has high mar k ups but it rem ain s very inef fic ien t wit h reg ard s to freshness of flowers which might be 7 to 10 days old before reaching to retailer. FTD, member owned 25,000 strong cooperative is the major competitor of C&C in the US markets.

This network is mainly used by retailers to distribute flowers in the region remote to retailer’s own shop. Of the deliveries made through all the three parties involved benefitted in varying proportions. A ty pical FTD working model is shown as below –.

In above structure a retailer takes an order from the consumer and if the recipient is more than 7 miles radius from the store, it relegates the requirement to FTD which in turn located the nearest retailer to recipient who in turn delivers the actual product. In this originating retailer gets 20%, FTD 7% and rest 73% b y delivering retailer. Another emerging retailer was in the form of Supermarkets. Free Download Driver Modem Telkomsel Flash Indonesia. Supermarkets bought directly from the wholesaler or distributor and sold them directly in their outlets.

However, they lacked finesse required for the business and shop design also posed a severe constraint in maintaining the freshness of the flowers. C&C does not follow the traditional mode of buying and selling. For efficient distribution it de vel op ed a wh ol e new co nce pt and th is di st ri but io n ch an nel bec am e th e si ng le bi gg es t contributor in C&C’s rise. The network typically is given as below – The beauty of the C&C distribution channel is evident from above diagram.

It effectively removes all the intermediaries and links the producer to the market. FedEx is a strategic partner in this venture and its goodwill is mighty important in the success of C&C. Relationship with grower has also been a pioneering effort of C&C.

Growers who previously merely packed all their stuff in bunches were trained to carefully pack the flowers in special packs as per given specifications. In this new framework growers got almost 20% of the sales value which was on.