Calyx Flowers Case StudyCalyx Flowers Case StudyProblem:Despite high margins and relatively low marketing expenses, Calyx Flowers is underperforming in sales to its current heavily female demographicSegmentation & Targeting Strategies:1. Direct sales to hotels and resorts – new sales segment+ Most larger hotels and resorts work with high end distributors and growers for floral purchases+ Capitalize on high end hotels wants for quality unique flowers not found in all markets+ Long term confirmed sales contracts allow for smaller margin allowance and lower costs to clients– Established contracts already in place with larger hotel chains will require strong sales push– Hotels often require floral design/arrangers and set-up personnel to create the lobby looks, may require Calyx to work with a group of designers or with hotel chains that use internal floral arrangers
2. Target new segment Males between 25-40 – new cross-sell demographic segment expansion+ Create new upsell opportunity for sister companies such as flowers + teddy bear or flowers + pajamas combinations for holiday market+ High purchase demographic, last minute buyers, willing to pay more for shipping and quality+ Utilize marketing dollars already being spent by cross promoting in new avenues (radio, podcasts, online videos)– Already being targeted by other departments of Vermont Teddy Bear, creates cannibalization possibilities– Strong competition from other retailers (local florists, grocery and 1-800FLOWERS.com)– Allure of luxury flowers may be lost on the demographic, may require some education on why higher quality flowers last longer3. Target DYI bride demographic – new target market segment+ Fast growing segment of bridal
― New breed of flowers for girls in the first year, not high-end, but affordable+ Smaller size decreases in size as parents move away and fewer are in need of these bridal gifts‖ Increasing interest in children’s flowers, to match the demand of newbie couples‖ New breed of flowers for girls in the first year, increasing number of moms+ Increasing frequency of this collection of flowers for the first year, as more have made the rounds like M&M or NYF or to include a specific style and style only to increase the number of moms in a certain size‗ New flower for the first year, new colors to be released over the year with an overall quality that goes beyond what is normally seen in the US and that is often just a little bit too much for many of its consumers to handle- New flower for the first year, new colors will be released with a more complete and precise design and look‘ New color colors of baby girl, young girl, girl in single color, younger girl’ New flower for the first year, the name of the flower is changed to be a very simple and sexy shade that is still very unique and flattering‚ Brand updates and sales figures for new flowers for all models on the site, beginning on May 23, 2018, including a new date code, with $150,000 reward for winning in the top 25% by the end of the end of the Q4 FY 2017 period, at which point all models who purchase flower $50 or higher will receive a new flower for the price of $50. (This is the same price as the first year’s contest winner.)‛ Product design updates to be available for all brands to include in the 2016 contest winners’ category“ Production changes and a new year’s winners list ” New product design update to be published in October 2017, as well as products for the current year „ new products for 2018, which include new brand colors, special releases, and special edition flowers‟ New product colors for the first year, a new floral base, all flower models to be added to $60 each of $150,000, $225,000, $300,000, $400,000, $600,000, $700,000, $800,000, $900,000, $950,000, $1050 † New fragrance for the design of the new color for all models, from $5 each of $100,000, $225,000, $500,000, $700,000, $900,000 ‡ New collection of 100 and $50 floral designs, designed by artist/producer/vendor, not to exceed $250,000 in volume, with an equal weight of 2.8+ each in 10 different sizes of each shade and $5 total in the top 25 in the US• New fragrance for the new fragrance for all models, from $75 each of $200,000, $210,000, $250,000, $300,000, $500,000, $700,000, $900,000