I. Problem DefinitionCalyx & Corolla (Calyx) must decide whether to change its current strategy and positioning as a mail order company to compete more directly with more traditional retail outlets, such as florists, and telephone services, such as FTD. How could Calyx appeal to the largest group of potential buyers who frequented florists or other retailers and were not used to buying via mail order? Calyx must determine what actions to take to make a profit and grow its business.II. Solution Possibilities Calyx's goal is to position and market its flower business to fully leverage its competitive advantage and 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. The plant and flower retail industry in the United States is worth $9 billion a year. Since 1985 the sector has grown at a rate of 7.7%. 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 accounted for the remaining 23%.FTD is a cooperative owned by 25,000 florists. Member florists take orders from local customers for delivery by member florists elsewhere. FTD has positioned itself to target customers from a broad range of families with incomes above $35,000. FTD provided a service allowing the customer who wanted to purchase flowers for someone in another location to conveniently go to a local florist to make the purchase without the need to find a florist in the middle of paper... Sales currently represent the 20% of Calyx's revenues and offer significant growth potential at lower marketing costs. Calyx offered flowers at a discounted price as part of these promotions, but Calyx had little or no other sales and marketing expenses because retailers paid the advertising costs. Calyx should also decrease the number of catalogs sent to recipients of previous orders, people who made requests and rented names. The cost of marketing to these groups is not productive. Marketing dollars used for these catalogs should be redirected to placing ads in national magazines and newspapers. These advertisements should focus on the high quality, high 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 to generate new catalog and enterprise customers.