Calyx & Corolla Case Study Notes (L2).docx

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Rotman Commerce
Claire I.Tsai

Calyx & Corolla Case Study Intro Notes  Company pioneered the concept of selling fresh flowers by mail  Owades and her two key associates, Fran Wilson and Ann Lee, were reassessing the firms long term growth strategy  Orders from customers were received by telephone, fax, or mail at the central office in San Francisco and then sent via fax or computer to the 30 flower growers who supplied Calyx and Corolla  Customers thus received much fresher flowers, often fresher by as many as seven to ten days  Owades launched Gardener’s Eden which was then sold to Williams-Sonoma Fresh Flower Industry  Retail flower and plant sales ere almost a $9 billion business in the United States in 1990, having grown at a rate of 7.7% since 1985.  Often industry participants would not confine themselves to a single role. For example, most growers distributed some flowers directly to local or more distant wholesalers and retailers.  A flower that a grower would sell for approximately $5, would cost the ultimate consumer about $40.  Flowers were purchased by consumers for a variety of occasions  Flowers varied in their perishability Calyx & Corolla  Represented a true departure from traditional channels of distribution by directly linking the consumer with growers and, through FedEx, growers with consumers  They were able to reduce very substantially the time it took to deliver flowers to the consumer’s do
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