Calyx Flowers Case Study

Calyx Flowers Case Study

Problem:

Despite high margins and relatively low marketing expenses, Calyx Flowers is underperforming in sales to its current heavily female demographic

Segmentation & 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 longer

3. Target DYI bride demographic – new target market segment

+ Fast growing segment of bridal