Calyx Case

Most Important Problem: The most important problem is that our brand awareness is lacking with the appropriate customer segment. Cause of the Problem: Calyx’s advertising approach does not put the Calyx brand in front of the appropriate customer segment when s/he is making the purchasing decision. It relies on the consumer having access to a catalogue. Proposed changes to Strategy: Instead of targeting the catalogue shopper, Calyx should target the customer who needs a gift relatively quickly for a special occasion (the majority of flower sales) but is also discerning about the quality of the product. This market is making decisions online or on the phone. As a company, Calyx should be leveraging the strength of their other special occasion products as a way to drive consumers to purchase their flowers from Vermont Teddy Bear Company as well.
-expand target customer base beyond upscale women to the broader umbrella of upscale. Proposed changes to Tactics: Re-brand Calyx to an offering that is more in line with the descriptive naming conventions of the rest of the Vermont Teddy Bear Company offering. Build that brand through mass communication that clearly identifies the value proposition of fresher, longer-lasting flowers. Create incentives (percentages off, free vase, free delivery) that drive consumers to consider and choose Calyx at the time of flower purchase.
-alter communications (ie cease catalogs to flower recipients and demographic lists)
-improve service to better serve our target customer/differentiate ourselves

Rationale: Calyx can direct their current catalogue funds to build brand awareness through mass marketing and to use for pricing incentives. These tactics will make Calyx a contender in the decision of what kind of flowers to purchase, while their value proposition will make them the right fit for the more discerning buyer. Conclusion: Calyx can build brand awareness through mass marketing that will present