Calyx & Corolla

Calyx & Corolla formula 1. What are the strengths and weaknesses of the Calyx & Corolla formula? Strengths ?Through working closely with the supplier or grower Calyx & Corolla provides a much fresher product to the customer than their competitors. Through Federal Express Calyx & Corolla have an excellent relationship with the growers. Calyx & Corolla uses 30 quality growers to supply their flowers. The top eight of these growers supply close to 80% of their orders, however no one grower supplies more than 25% of its products to Calyx & Corolla (Wylie and Salmon, 1999).
Calyx & Corolla has exclusivity agreements with all growers they do business with. The management of Calyx & Corolla works very closely with the growers on a continual basis to ensure that quality arrangements and packaging are achieved. Growers are paid wholesale prices and an extra surcharge to provide the extra services of arranging and packaging the flowers. To accomplish these extra services or retail responsibilities, the growers employ additional people.
Calyx & Corolla senior managers stay in close contact with representatives from each grower they do business with to collaborate on availability of flowers, arrangements, schedules, accessories and packaging supplies. Calyx & Corolla’s relationship with their shipper, Federal Express, is just as strong and critical as their relationship with the suppliers. They have a special contract with Federal Express that includes special handling of the packaged flowers. During peak periods, Federal Express provides trailers to the growers to expedite the shipping process. During adverse onditions, such as extreme weather, Federal Express provides extra delivery services by not leaving packages in situations where the flowers could be damaged or ruined. To help track shipments and provide better customer service, Federal Express provides computer terminals to both Calyx ; Corolla and the suppliers. Because the majority of their business is realized during peak periods, around holidays, Calyx ; Corolla is working to help alleviate the peaks. By offering continuity programs, promotional tie-ins and corporate client business, they can offset slow periods and lessen the mpact of sudden demand during peak periods. The management team at Calyx ; Corolla works very closely with their own staff. Realizing the importance of a high quality sales and customer service staff, they hire serviceoriented people with a genuine interest in flowers and plants. Senior managers are personally involved in the training and daily working environment of their employees. Calyx ; Corolla had nearly an 80% margin of flower sales (Wylie and Salmon, 1991), and possessed an experienced and dedicated management team and a sophisticated information system and customer database to analyze sales.

Calyx ; Corolla appears to have a strong potential for a bright future, but the company also had some apparent weaknesses in their business. Weaknesses 1. Why has Calyx ; Corolla been successful? 2. What are the potential sources of channel conflict in the Calyx ; Corolla system? 3. What steps should Ms. Owades and her associates take next to more fully develop Calyx ; Corolla? 4. How would you determine the life-time value of a customer? 5. Visit their website. How has this helped Calyx ; Corolla? It can effectively target potential buyers who patronize florists and other retailers versus mail order.