Laura Lafitte
Calyx and Corolla Case Study
Q1) Comment on Calyx and corollas business model- how does it create values, and what are its
advantages?
They deliver flowers to homes with a wide selection of choices
More direct relationship, more personal
Reduces the time of delivery
Cuts out the Middle man in the process, making it more simple than traditional flower
company’s, allowing the consumer to pay less
Assurance that the flowers will be delivered on time
Consumer benefits- freshness, catalogue info, more variety, competitive prices, and
shipment info
Growers benefits- premium, accounting management, shipping material, retail response,
and notifying stock
FedEx benefits- steady demand, Saturday delivery, and a fixed rate
Q2) How would you evaluate calyx and corollas catalog marketing efforts? Are they doing their
Job good?
70% of revenues come directly from their catalogue, but doesn’t mean it is the best
approach
There are over 12 million catalogs mailed
100k x 12 catalogs to prior customers generate 60 k orders – 5% conversion to order rate
Important to have repeat orders vs. single purchases
Need to improve response rate, institute loyal programs
Response rates are low showing that fresh flowers are not for everyone
Not everyone wants flowers that are still buds