Calyx & Corolla

Mar – 5805

Problems and Methods in Marketing Management

HBS Case# 9-592-035

EMBA 11 - Team 7

Who are Calyx and Corolla's main competitors?

• Conventional Gift Retailers, Online Gift Retailers

• Conventional and Online Florist, Supermarket Chains

• Other Direct Marketing startups (Stillwater, Floral Gift Express)

How should Calyx and Corolla be positioned vis-a-vis the competition?

Leverage

• Direct Marketing

• Efficient Distribution

• Superior Pricing

Deliver

• Exceed competition quality and service

• Reliable freshness

• Meet consumer demands

Whom should Calyx and Corolla target?

• Traditional brick and mortar customers

• Online/Telephonic customers

• Holiday customer market

• Year round floral consumer market

• Corporate Customers

• Specific target markets

How does Calyx and Corolla fare in terms of sustainable competitive advantage?

Pro’s

• Resource relationship path dependency

• Brand/Reputation

• Pricing

Con’s

• Complex and fragile system

• Easily copied

• Skills Maintenance

• Variety challenges

How should Calyx and Corolla grow?

Current Customers

• Related Products

• Parallel Products

• Continuity Programs

New Customers

• Targeted Marketing

• Unrelated Products

How fast does Calyx and Corolla need to grow?

Current Projected

Sales 10,259 15,163

Cost of Goods Sold 2,452 3,487

Gross Margin 7,807 11,676

Sales and Marketing 7,021 10,104

General and Admin 1,213 1,459

Net Profit (Loss) (427) 113

Summary P&L Statement (000)

• Market Penetration• Name Recognition• Sustain projected growth• Improve operational efficiencies• Sales and Marketing cost