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Calyx Flowers Marketing Case

In: Business and Management

Submitted By lukekang
Words 394
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My suggestion:
In order to attract more customers and improve their financial performance, Calyx Flowers (“Calyx”) should increase internet advertising.

Argument in support:
• The internet advertising requires less capital than other options do
• Internet advertising allows a more targeted market segmenting and higher target reach.
• Online advertising avoids expensive long-term contracts, can be placed in a short amount of time, and can be launched on demand. i.e. Calyx can run a mass of online ads in a short period of time such as before busy holidays like Valentine’s Day and Christmas even on a relatively tight budget.
• Calyx could differentiate their brand and products from other major competitors who have been advertising extensively through mass-media.
• Since Calyx has already received orders via their website, online advertising could make customers have a seamless shopping experience. And it could prevent customer secession and customer complaints.
• Calyx could track and receive more accurate feedback through internet advertising. With the information they received, they would be able to determine whether the current marketing and advertising strategies are succeeding or not.
• Calyx can collect the history of online purchases and adopt ono-to-one marketing strategies by analyzing the consumers’ behavior. So, they could pitch more personalized and effective advertisement to customers.

Pros and Cons of the other options:
• Increase the number of catalogs. o Pros: Because of their past experience, it is easy to execute and relatively easy to predict how much revenue they will get from an increase in catalogs. o Cons: Catalog mailings to prospective customers are explicitly ineffective and costly. So, this option does not address the underlying problem of not targeting new customers. Furthermore, Random customers who receive catalogs might…...

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