The Calyx Flowers
Decision
Mr. Gilbert, CEO of the Vermont Teddy Bear Company is going to choose a strategy for Calyx Flowers, one of its subsidiaries, in order to reach the full financial performance. There are three possible options proposed by marketing team: ‘Increase the number of catalogs’, ‘Increase mass-media advertising’ and ‘Increase Internet advertising’ I strongly recommend that Calyx Flowers choose ‘Increase Internet advertising’ option. I believe this option could not only be compatible with the company’s communication strategy and tactic but also maximize the purchase with the limited budget.
Reasons for the Decision
First of all, Internet advertising is effective to attract target customers. 57% of the company’s customers are woman ranging in age from 30 to 55 years old, with above average disposable income. The company is able to find and trace those potential target customers by using internet usage pattern. After that, the company could concentrate its advertising on the webpage where target customers most frequently visit, thereby enhancing customers to purchase its products.
In addition, this option is suitable with the nature in business of the company, occasion base business. Most flower is purchased special occasion such as anniversaries or Mothers’ Day. The company could easily execute occasion base marketing through occasion base segmentation. By using the Internet, the company could advertise specific flowers of which demand are peak a certain special occasion to the certain customers, according to customers purchasing pattern.
This also could emphasize on its various competitive edges and differences such as freshness, longevity, speed of delivery and variety. They are customers’ key buying factors. In addition, most competitors don’t have these capabilities. In fact, the competitive advantages come from its distribution system which reduces elapsed time from growers to customers by using Federal Express. The company could explain its competitive edges
Mr. Gilbert, CEO of the Vermont Teddy Bear Company is going to choose a strategy for Calyx Flowers, one of its subsidiaries, in order to reach the full financial performance. There are three possible options proposed by marketing team: ‘Increase the number of catalogs’, ‘Increase mass-media advertising’ and ‘Increase Internet advertising’ I strongly recommend that Calyx Flowers choose ‘Increase Internet advertising’ option. I believe this option could not only be compatible with the company’s communication strategy and tactic but also maximize the purchase with the limited budget.
Reasons for the Decision
First of all, Internet advertising is effective to attract target customers. 57% of the company’s customers are woman ranging in age from 30 to 55 years old, with above average disposable income. The company is able to find and trace those potential target customers by using internet usage pattern. After that, the company could concentrate its advertising on the webpage where target customers most frequently visit, thereby enhancing customers to purchase its products.
In addition, this option is suitable with the nature in business of the company, occasion base business. Most flower is purchased special occasion such as anniversaries or Mothers’ Day. The company could easily execute occasion base marketing through occasion base segmentation. By using the Internet, the company could advertise specific flowers of which demand are peak a certain special occasion to the certain customers, according to customers purchasing pattern.
This also could emphasize on its various competitive edges and differences such as freshness, longevity, speed of delivery and variety. They are customers’ key buying factors. In addition, most competitors don’t have these capabilities. In fact, the competitive advantages come from its distribution system which reduces elapsed time from growers to customers by using Federal Express. The company could explain its competitive edges