The Strategy of Using Catalogue Marketing - Coursework Example

Marketing decisions, case study Table of Contents Question 3 Question 2 5 References 8 Question In order to improve the total sales and profitability, most of the organizations desire to offer highest concentration over marketing. Among varied forms, catalogue marketing is one of the most effective techniques to attract a wide range of customers towards the products by presenting varied types of printed catalogues. In this marketing technique, the exact catalogue of the product might be easily viewed by the customers, prior purchasing it and so, it is highly preferred by the organizations of this age. Keeping this idea in mind, the organizations, Calyx and Corolla used catalogue marketing technique to sell its fresh flowers and bouquets to its end customers. However, the organization of Calyx and Corolla presented catalogues of flowers of four colors, so as to make the appropriate selection by the customers. However, by viewing the catalogues, the customers might easily order them as per their preferences and the order reaches the growers of C&C network immediately. Then, the grower picks and parcels the ordered flowers to the destination with the help of FedEx. Therefore, the customers might get the exact type of flower bouquets or fresh flowers within a very small period of time. Thus, this strategy of catalogue marketing acts as a catalyst for the organization of Calyx and Corolla that amplifies the reliability and trust of the customers. Moreover, due to improvement of the reliability, the brand value and profitability of the organization of Calyx and Corolla increased to a significant extent as compared to many other rival players such as FTD Florists. Furthermore, in order to implement the concept of catalogue marketing in an effective way, information technology is used within the organization of Calyx and Corolla. Therefore, due to the implementation of information technology, the range of customers increased that amplified its demand and brand image in the market among many other rival players. Besides, utilization of the strategy of catalogue marketing, the level of relationship with the customers enhanced to a significant extent that increased its portfolio and uniqueness in the market as compared to many other existing contenders. In addition, the organization of Calyx and Corolla also tried to offer varied colored fresh flowers to its customers at a quite competitive price. This strategy proved extremely effective for the organization that amplified its customer base and demand in the market as compared to many other rival players. Moreover, the organization of Calyx and Corolla used the concept of catalogue marketing rather than newspaper and magazine advertisements or run-of-press as it required a huge amount of investments like $34. But, in case of catalogue marketing, varied types of catalogues might be easily displayed in front of the customers that may amplify the demand and loyalty of the product lines of Calyx and Corolla in the market among others. Thus, the strategy of catalogue is extremely useful for the organization of Calyx and Corolla as it improved the intensity of orders and also its total sale from $ 756 in the year 1988-1989 to $ 24, 431 in the year 1992 to 1993. The strategy of using catalogue marketing is considered as one of the best techniques or decisions by the management of Calyx and Corolla as it generated almost 20 percent of the total revenues. However, the 20 percent of the revenues is attained through corporate clients and promotional links and so this also amplified their relationship with the organization of Calyx and Corolla. Moreover, the remaining revenues arise with the help of telemarketing procedure from the existing as well as new customers. Thus, from the above mentioned information and facts, it might be clearly evaluated that the concept of catalogue marketing proved extremely effective for the organization of Calyx and Corolla in this age of competitiveness and extreme bargaining rivalry (Nag, 2000). In addition to this, in order to improve the relationship and loyalty with the customers, the organization of Calyx and Corolla offered varied types of promotional gifts with the catalogue ordered. This strategy also proved extremely effective for the organization of Calyx and Corolla to amplify its customer base and productivity in the market among many other rival players. Furthermore, the process of promotional gifts also offered significant advantage for the organization of Calyx and Corolla that increased its chances for incremental sales. However, the opportunity of incremental sales helped the organization to amplify its total revenue and operating income that increased its prosperity and equity in the market. Besides this, Bloomingdale displayed varied types of vase full of flowers in front of the customers that amplified the total sale and profitability of the organization of Calyx and Corolla. This became possible only by presenting varied types of discounts on the vases along with vases to the customers. Hence, from the above mentioned facts it might be stated that the organization of Calyx and Corolla is doing a good job by utilizing the concept of catalogue marketing in spite of newspaper or television advertising as it amplified its total profit margin and loyalty in the market. Thus, catalogue marketing increased the prosperity and portfolio of the organization of Calyx and Corolla in the market that enhanced its competitiveness and position as compared to other rival players (Koekemoer, 2004). Question 2 In the test market of Minnesota, the total size is 3,610,700 with households estimated to 1352400. However, among the total households, the population with age groups less than 25 years is 1344600 and 737,400 for individual within 35 to 49 years. However, as the age group of the individual within 25 years is quite higher as compared to other age group individual, so the concept of introducing television advertising might prove effective for the organization of Calyx and Corolla as compared to many other rival players. But it might increase the range of customers and total sale of the organization of Calyx and Corolla in numerous new markets and regions that may amplify its brand image and productivity to a considerable extent. Furthermore, the after tax disposable income of the individual of the test market is approximately is 26.9 percent for the age groups of 20 to 35 years and 21 percent for the 35 to 40 years. This means the buying power of the target customers of the region of Minnesota is quite high as compared to many other regions. But, in order to attract the interested customers towards the brand of Calyx and Corolla, it is extremely essential to increase their awareness about the products or catalogues. Then, the interested customers might get fascinated to purchase varied types of designed flower bouquets, with both competitive and premium prices as well. Therefore, due to improvement of the level of consciousness, the demand and profit margin of the organization might get increased. However, due to improvement of the profit margin, the consistency and equity of the brand may get enhanced resulting in amplification of its trust within the minds of the customers (Kumar, 2009). Hence, if the level of trust of the customers might be attained by an organization, in this age of extensive rivalry, the rate of switchover costs might get reduced and its productivity may be improved consistently. Thus, due to these reasons, the management of the organization of Calyx and Corolla might try to offer more attention over the idea of television advertising in Minnesota region. Hence, it might be clearly revealed that, the concept of television advertising might prove extremely effective for the organization of Calyx and Corolla in this age of extreme competitiveness. The prime reason behind such notion is that, in the test market of Minnesota, numerous customers might get aware about the different catalogues of flowers offered by the organization of Calyx and Corolla as compared to other existing contenders. However, due to improved awareness of the customers, the demand of the catalogues of bouquets of flowers presented by Calyx and Corolla might also get improved. Therefore, the status and position of the organization within the region of Minnesota may get improved among others. So, improved position might prove effective for Calyx and Corolla to reduce the upcoming threat of new entrants and substitute products. In addition, if the organization of Calyx and Corolla implements television advertising along with catalogue marketing, then the popularity and dominance of the organization might get enhanced. However, due to improvement of the dominance of the organization, the inner strengths and opportunities might get improved such as expansion in many other neighboring markets or regions. This might help the organization of Calyx and Corolla to develop a distinctive and differentiated image for itself thereby amplifying its market share and operating income (Ferrell & et. al. 2012). Moreover, in the procedure of television marketing, varied types of feedbacks of the customers might also be attained by the organization of Calyx and Corolla. Such feedbacks might prove effective for the organization to tackle the changing preferences and likings in an efficient way that may amplify its position and competitiveness. Additionally, in spite of introduction of information technology, maximum extent of the individual is quite un-aware about its procedures. Still, they desire to utilize the toll-free numbers presented in the television screens so as to book or order any sort of materials (Samuel, 2009). Therefore, due to these causes, it might prove effective for the organization of Calyx and Corolla to implement the procedure of television advertising within the region of Minnesota, along with catalogue marketing through online sites. In addition, through television advertising, varied types of inventive bouquets of flowers might be promoted that may increase the demand and sale of the product lines. By showing varied types of inventive designed bouquets for various occasions such as anniversaries, birthday’s, marriages, corporate parties etc, the level of responsiveness of the target customers increases. But, in case of catalogue marketing, improvement of the awareness of the customers towards the designed bouquets may not get enhanced, as it is not accessed at every point of time. Therefore, this acts as one of the main cause for the organization of Calyx and Corolla to implement the concept of television advertising within the region of Minnesota. Conversely, it might be depicted that, television advertising is extremely essential for Calyx and Corolla in order to amplify its individuality and reputation among the target group of customers of Minnesota. This might enhance its market value and total revenue thereby increasing the craze and affection for flowers as compared to other gifts. References Ferrell, C. O. & et. al. 2012. Marketing Principles. US: John Wiley & Sons. Kumar, A. 2009. Marketing Management, 1E. London: Sage. Koekemoer, L. 2004. Marketing Communications. New York: Cengage Learning. Nag, A. 2000. Marketing Successfully: A Professional Perspective. London: Sage. Samuel, R. L. 2009. Brought to You By: Postwar Television Advertising and the American Dream. USA: Springer. Read More