The marketing channel of distribution that C&C is part of is formed of the growers, Calyx & Corolla and Federal Express. Let's describe the role each plays in the distribution process.
The growers were located generally in California, Florida and Hawaii and ranged net sales from under $1 million to $100 million. They worked only with C&C, as the contracts specified that they were not allowed to supply any other mail order retailers. As the growers provided the flowers, C&C provided the shipping boxes that were needed, with cards, labels, vases, etc. basically anything that was needed to ensure the concept of gift flowers.
The coordination between C&C and its suppliers was essential. Indeed, demand forecasts were generally sent to the growers in order to ensure that the company would be able to cover any request in the future. The account manager provided from C&C to each grower would ensure and supervise the selection and packing of flowers, as well as the additional features involved, such as gift messages.
The second important part of the distribution channel was Federal Express. Federal Express would provide the trucks at each grower in part and would replace them when full. The relationship with Federal Express had improved over the years and now included Saturday deliveries and an extra attention and care when delivering the flowers to the customers. The computer terminals that C&C used permitted the tracking of each...
The market is not yet a mature one and people still have to get used to the idea of ordering the gift flowers from a catalogue rather than buying them themselves at the flower shop. One opportunity for the company is to capture more gift business and divert consumers' options from traditional florists. On the other hand, the second opportunity, closely tied to the flower market, but with ramifications into
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