Calyx & Corolla

Group 3
When you buy flowers…

  You convey emotions

  You want beautiful fresh flowers that last long

  Low price

  Guaranteed on-time delivery

  Ability to send flowers anywhere in USA

  Attractive floral arrangement

  $9 bn industry ; 7.7% growth rate

  Imports from over 50 countries (60% from Columbia)

  Extremely fragmented market

  Family-owned businesses have the majority of the market share

Grower Distributor Wholesaler Retailer Customer

3
Around flowers

  Growers
  Distributors
  Individuals
  Wholesalers Collaborators   Corporations
  Express delivery Customers
Customers   Retail stores

Company
Company

Context
  Family owned florists
  Seasonal business Competitors businesses (59%)
  Sales peak during (Retailers)   Supermarkets (18%)
special days   Nurseries & Mail order
businesses (23%)

4
Here comes Calyx & Corrola

“We deliver the freshest and finest cut flowers directly

Company
  Established in 1988   Founded by a

  Pioneered fresh Calyx &

flowers delivery by Corolla   Service-oriented

5
Reaching out to customers

Joint promotional
Direct marketing
 Advertising

campaigns 

•  6-12 catalogs a year •  Newspapers
 •  Bloomingdale

•  Calling campaigns •  Publications
 •  SmithKlime
•  Mails Beecham
•  Discount coupons

C
R
I   Coincide with available resources   Be profitable
T
E   Fit with the company image   Not aggravate seasonal peaks
R   Open new business opportunities   Do a good job
I
A
6
Calyx & Corolla, the success
Grower Distributor Wholesaler Retailer Customer

+175%
+50% +100%

$30 $45 $90 $247.5

Grower Calyx & Corolla Customer

+725%

$30 + Cost $247.5

Gross margin adj.: 82.2%

7
How did they make it

Product
•  Higher quality product in terms of freshness and longevity

benefit

Services
•  Convenient ordering process and timely delivery

benefit

Personal
•  Time saving and greater outreach

benefit

Image
•  Convey emotions
benefit

Understood
 Customer

Calyx
&
 Matched

customers‘
 perceived

Corolla
 needs

needs
 value

8
What to do next!

•  Try to appeal to other market segments:

  Younger women (18 – 30)

  Attached men

•  Convince more traditional clients through focused marketing:

  Targeted coupon distributions

  Mini catalogs

•  Increase B2B sales:

  Nationwide hotel chains

  Wedding Planners

•  NO TV campaign
9
Not so fresh anymore…

•  1999: Sold to Gerald Stevens, a florist consolidator

•  2001: Sold to Equity Resource Partners

•  2003: Sold to Vermont Teddy Bear (public company)

•  2005: VTB sold to Mustang Group (PE firm)

•  Today: Internet sales are replacing catalog sales

•  International suppliers
10