I. Problem DefinitionCalyx & Corolla (Calyx) must consider whether it needs to change its current strategy and positioning as a mail order operation to compete more directly with more traditional outlets, such as florists, and courier services , such as FTD. How could Calyx attract the largest group of potential buyers who frequented florists or other retailers and were not accustomed to buying by mail order? Calyx must determine what actions to take to make a profit and grow its business.II. Solution Opportunities Calyx's objective is to position and market its floral business to fully utilize its competitive advantage to achieve its profit and growth potential. To achieve this goal, Calyx must determine whether it can effectively target potential buyers who frequent florists and other retailers rather than mail order. In the United States, the plant and flower retail industry is a $9 billion per year industry. The industry has grown by 7.7% since 1985. The market landscape is divided into three areas. Twenty-five thousand retail florists hold 59% of the market ($5.31 billion) and supermarkets approximately 18% of the market ($1.6 billion). Nurseries, mail order companies (seed companies) and other retailers made up the remaining 23%. FTD is a cooperative belonging to its members and bringing together 25,000 florists. Member florists take orders from local customers for delivery by member florists elsewhere. FTD has positioned itself to target customers across a broad spectrum of households with incomes above $35,000. FTD provided a service by allowing the customer who wanted to purchase flowers for someone in another location to easily use a local florist to make that purchase without needing to find a florist in a...... middle of paper..... .e sales currently represent 20% of Calyx's turnover and offer significant growth potential at lower marketing costs. Calyx offered discounted flowers as part of these promotions, but Calyx had little or no other sales and marketing expenses because the retailers paid the advertising expenses. Calyx should also reduce the number of catalogs it sends to recipients of previous orders, people who have asked questions and rented names. The cost of marketing to these groups is not productive. Marketing funds used for these catalogs should be redirected to ad placement in national magazines and newspapers. These advertisements should focus on the high quality, great value, freshness and longevity of its flowers with a guaranteed delivery date. Calyx should also continue to seek positive press about Owades and the company in order to generate new catalogs and enterprise customers..