edited calyx and corolla case ppt
TRANSCRIPT
Calyx & Corolla
Industry Analysis
• Growth Rate- 7.7% (1985)• Size- $9 bn (1998)
Problem Definition
• Business Growth for CC• Fragmented DISTRIBUTION system• Focused on Retention than Acquiring• Whether to proceed or not with the new
advtng campaign?
Creating Customer Value
• Efficient Distribution system• Relationship Marketing- Forward and Backward• Quality• Emotions• Service• Technology• Price• Information srvice
Product Market Matrix
Existing Market New Market
Existing Product Market Penetration Market Development
New Product Product Development Diversification
CC Comparison with FTDCompetitors Price Distribution
Margin to growers
Major Channel of Distribution
Revenue from the major channel of distribution
Present Strategy
Future Strategy
FTD $40 10% Yellow Pages(35% of Advtng Rev)
CC $23 20% Catalog 70% ????
Financials• Sales/Revenue Growth-• Opex-• Profit Growth-• Market Size• Cost of Customer Acquisition at present• Cost of Customer Acquisition under new campaign• Cost of Mini Catalog- $10.26 mn• No of Orders for CC- approxly 320600 in 1990• No of CUSTOMER for CC in 1990-
LOYAL CUSTOMERSPARTICULARS AMOUNT
Number of customers 100000
Total orders 60000
Response Rate 7.5%*100000= 7500
Number of orders per customer 60000/7500= 8
Catalog expenses per customer p.a 100000X12= 1.2 million
RECIPIENT AND RENTED LISTSPARTICULARS AMOUNT
Customers 500000
Catalogues sent 6*500000= 3 million
Remaining catalogs 12.055 million
TOTAL CATALOGS= 1.2+3+12.055= 16.255 MILLION
PER CATALOG COST
Using Exhibit 1
PARTICULARS AMOUNT
Selling & Advertising expenses (1990) $7021000
Share of catalogs 70%
Total 4914700
Cost per catalog 4914700/16.255= 30 cents
CUSTOMER ACQUISITIONPARTICLULARS AMOUNT
Potential Market 12.055 mn
Response Rate 1.5%
New customer acquisition 125325
Catalog Cost $4.5 mn
Cost per new customer $35.9
SWOT ANALYSIS
Cont…
Flower Market Segmentation
Product Attributes Personal Gift
Events(Wedding; Funerals
Corporate
fresh
unarranged
Floral variety
information
No sun/hol delivery
Come in fed Ex box
Matrix for Freshness and Willingness to assemble
Funerals Supermarkets
Florists C & C
Willingness to assemble
High
High
Low
Low
Demand for Freshness