In the fresh flower market, there are three primary segments: (1) flowers for regular décor, (2) flowers for special occasions, and (3) flowers for last minute gifts. Each segment differs with regard to the amount of planning before purchase, the quality of flowers required, and level of service required to cater to the respective market. Calyx & Corolla, with its exclusive contracts with thirty quality flower suppliers and delivery with FedEx, is uniquely positioned to cater to “flowers for regular décor” segment by providing high levels of quality and service for a customer who plans their purchases in advance. Refer to Exhibit 1.
Calyx & Corolla should increase sales in its continuity program by x% over the next x years through the promotion of 4-month, 6-month, or 12-month flower subscriptions. Calyx & Corolla should launch a $x marketing campaign to acquire new continuity customers who fall in the “flowers for regular décor” segment.
The “flowers for regular décor” segment prefer cheaper, artificial flower arrangements rather than fresh flowers since they are durable, last forever, and can be easily changed.
The “flowers for regular décor” segment consists of both corporate and home customers. The corporate customers consist primarily of retailers, hotels, restaurants, and other professional offices that require regular storefront displays or arrangements. The home customer is typically a female aged 30-55 years with disposable who enjoys decorating her home. Calyx & Corolla should focus on the cross-section of these two groups that exhibit similar behavior in their preference for flowers.
To target this segment, Calyx & Corolla marketing should consist of: (a) television advertisement, (b) magazine advertisement, (c) in-store cross-promotional efforts at home decorating and furnishing retail stores, and (d) catalog mailing. Marketing expenditure should be x with an expected cost to acquire a...
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