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Lauren Kilcoyne

on 11 February 2014

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Transcript of Copy of CALYX & COROLLA

Geory Kurtzhals
Lauren Kilcoyne
Lorna Karaj Resulaj
George Seban

Company Intro

Founded in 1988 by Harvard Business School graduate Ruth Owades, Calyx and Corolla (C&C) pioneered the concept of mail order flowers which were sent directly from the grower to the consumer through a partnership with Federal Express (FedEx).

By eliminating the numerous handlers seen in previous flower delivery methods, C&C was able to deliver the freshest product without heavy markups.

One reason C&C was able to break through the market was because they placed great emphasis on understanding the emotions that consumers were trying to convey through flowers

One reason C&C was able to break through the market was because they placed great emphasis on understanding the emotions that consumers were trying to convey through flowers

SWOT Analysis
3Cs & 4Ps
Company - positive image with high customer satisfaction
Competition - FTD, supermarkets, Stillwater
Customer - mail order and corporate; 85% women with disposable income

Product - high quality flowers picked shortly before overnight delivery
Price - competitive with conventional florist
Promotion - catalogs, partner advertisements, media, word of mouth
Place - catalogs: phone orders and tie-in promotions

Next Steps
Focus on corporate customers
Target weddings and life events
Embrace "word of mouth" through referral programs
Expand advertising concept used in Minnesota to other areas
Analyze "Floral Gift Express" for learnings
Identify threats within Stillwater business plan
1. Niche and mission

2. Sales and Projected Sales growing at a faster rate than cost of goods sold.

3. High rate of customer satisfaction

4. Catalogs

5. Good corporate culture

6. Relationship with Fed Ex

7. Relationship with growers

8. Quality employees

9. Continuity program

10. Corporate clients that advertise their products.

11. Senior leadership highly involved in the business

12. Quality product
1. Large dependencies on Fed Ex

2. Large dependencies on information systems/ technology

3. Grower vulnerability

4. Current selection of consumers may be a long term risk

5. Reliance on short - term staff during peak season

6. Lack of name recognition

7. Seasonal customers

8. Senior leadership balance of time
1. Greater expansion through media and advertisements by enhancing the share of market expenditure.

2. Advertise/grow continuity program.

3. Advertise/grow tie-in program.

4. Relationships with new growers less susceptible to weather changes.

5. Create a relationship with a new carrier.
1. Emergence of new competitors (including Stillwater)

2. Potential for dissatisfied growers

3. Reliance on FedEx

4. Pricing structure based heavily on FedEx and flower supplier rates

5. Changes in how customers make purchases
Full transcript