Calyx & Corolla Mar – 5805 Problems and Methods in Marketing Management

Calyx & Corolla Mar – 5805 Problems and Methods in Marketing Management

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?
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•
•
•
•
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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?
Summary P&L Statement (000)
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
• Market Penetration
• Name Recognition
• Sustain projected growth
• Improve operational efficiencies
• Sales and Marketing cost