CALYX FLOWERS CASE STUDY

CALYX FLOWERS CASE STUDY

Student’s Name

Institutional Affiliation

Date of Submission

Key Reasons for Calyx Flowers’ Weak Financial Performance

Calyx Flowers’ weak financial performance’s main reason is underutilization of resources and an inefficient distribution to customers. Calyx Flowers uses catalogs sent to its existing and potential customers every year. Catalogs are an inefficient way of reaching out to its customers compared to its competitors. Some of its competitors, such as 1-800-FLOWERS.COM and Florists Transworld Delivery invest heavily in promoting their products. These Calyx Flowers’ competitors also use catalogs for advertising their services in their stores. The catalogs’ problem is that it is not a guarantee that the offers will reflect those in the catalog. These two firms, therefore, focus on advertising through televisions, radios, and in print. Their advertising messages are holiday-specific since the demand for flowers is higher during the holidays. Therefore, the catalogs that Calyx Flowers uses make it difficult for it to grow its market share. Using catalogs also makes it difficult for Calyx Flowers to adjust its operations based on demand seasonality. Catalogs are a static form of advertising. Calyx Flowers needs to adopt more relevant advertising methods to become relevant and build a stable customer base. First, it needs to consider its target market needs and find a platform that would easily reach them other than catalogs.

Best Option to Improve Financial Performance

Of the three options given at the end of the case study, Calyx Flowers should increase internet advertising to improve its financial performance. As discussed above, the use of catalogs is ineffective for Calyx Flowers. The other option would be mass media advertising using a traditional medium such as radio and television. Mass media advertising is what Calyx Flower’s competitors have been using. Their strategy has been successful and would be a good option for Calyx flowers. However, traditional media such as television, radio, and print and almost becoming outdated. With the advent of the internet and social media, most users of the traditional media are transitioning. A high percentage of the population depends on the internet for both entertainment and information. The usage of traditional media is declining. Increasing its usage in advertising the products would therefore be ineffective. The best option for Calyx Flowers to improve its financial performance is through internet advertising. Internet advertising will enable it to reach more people, both existing and potential customers. More customers will result in more sales hence higher profits. Calyx Flowers will also be more competitive since its competitors will not have shifted to internet advertising. Therefore, it will be the first to venture into internet advertising, and it will reap the benefits through excellent financial performance. A more aggressive advertising strategy will also enable Calyx Flowers to be more efficient in-service performance.

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