Executive Summary of Calyx $ Corolla Essay -- essays research papers

Executive Summary Calyx & Corolla is a young company that offers a very unique choice for customers who are interested in buying fresh flowers. Fresh flowers industry valued approximately $9 Billion in the United States in 1990 with steady market growth rate of 7.7% since 1985. However, the market potential did not reach the top yet. US fresh flowers market still has more room to grow. Per capita consumption of flowers and plants in the US was $36 per year, while the average in Europe was $60. Since a flower diminished its value everyday due to lacking of freshness, efficient distribution is the key to the flower industry. Calyx & Corolla has a distinctive way of delivering flowers to the consumers. Calyx & Corolla links its customers directly to the growers via the reliable delivery service of FedEx, whereas other companies rely on the traditional distribution channel which contains at least four layers: growers to regional distributors, regional distributors to wholesalers, wholesalers to retailers / florists, and florists to end-users. Thus, Calyx and Corolla can deliver fresher flowers to its customers bypassing those distribution processes. Calyx and Corolla also earns higher profit margin than its competitors due to its uncomplicated cost structure. For instance, Calyx and Corolla does not have to spread its profit to distributors and wholesalers. FTD was the biggest player in the fresh flowers market. FTD was a member-owned, worldwide cooperative of 25,000 florists. Florists usually used FTD to provide delivery service beyond their service area. The florists who originated the order received 20%, the florists who delivered the order 73%, and FTD 7%. The powerful network of 25,000 florists was the main advantage of FTD to penetrate the fresh flowers market. However, its price structure was not so flexible. â€Å"800-Flowers† was the largest member of FTD network and it was becoming more and more popular. 800-Flowers received 25% fee of the flower order from the delivering florist. Its revenues were about $16 Million in 1990. Another channel that we need to keep our eyes on was supermarkets. Supermarkets were becoming more popular and more powerful in the fresh flowers market. The average annual sales for supermarket floral departments were $104,950, having grown almost four times in the past ten years. However, supermarkets had two major... ...ing sufficient business customers can offset the sales of off-peak period. Business customers are more predictable with a special care. Calyx and Corolla has to build a long term relationship with them to ensure the steady sales, thus corporate account team is very important to ensure the long term growth. (iiii) Fund research for development of flowers growing techniques Differentiation point is very important especially in the business like flowers where many customers perceive that all flowers are the same. Funding research for new growing techniques, for instance, how to grow more durable flowers in cold weather can help Calyx and Corolla develop a closer relationship with its growers and also help Calyx and Corolla gain competitive advantage over others once the research is successful. Calyx and Corolla can also ensure its flowers quality to the customers and it also gives the image that Calyx and Corolla really cares about their products. Moreover Calyx and Corolla can also gain a positive image to the brand to the fact that they give something back to the community by funding research to universities. (especially in the town/state that the funded universities located)