Interflora Spain. Growing the Online Channel

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Interflora, a company that provided remote purchasing and delivery services to nearly 50,000 florists in more than 150 countries, had pioneered the concept of selling fresh flowers at home. That concept was simple: a buyer would choose a bouquet, either at an associated florist, either through the digital channel or the Interflora call center. Once the bouquet was chosen, your order was transmitted to the closest florist of the place of delivery, who made it and carried out its delivery to the indicated recipient. An incipient economic crisis, which was expected to be deep and lasting, together with the growing digital transformation of business and society, was negatively affecting the sale of fresh flowers in Spain. Reflecting the crisis, Interflora Spain's total sales in 2010 were only 80% of those that the company had achieved just four years earlier. A private equity, owner of Interflora France, had recently acquired a majority stake in the capital of Interflora Spain. As a result of this operation, a reporting and control system for Interflora Spain's business was established, whereby Interflora France operated as the parent company and set the annual targets to be met. The new owners demanded an urgent change of course in the evolution of the business. The management in Spain had extensive experience in the flower sector, but recognized important shortcomings in key areas to face pending challenges such as the management of digital channels. What priorities should be set?
Bibliographic citation: FERRANDIZ, L., INIESTA, F. (2021). Interflora Spain. Growing the Online Channel. IESE, M-1387-E.
Date: 01/10/2021
Author(s): Luis Ferrandiz; Francisco Iniesta
Document type: Case
Department: Marketing
Languages: English
Year of the events: 2010
Geographic area: Spain
Learning objective The case is appropriate for courses in marketing, entrepreneurship, strategy, digital marketing and digital transformation. Some of the specific objectives of the case are: - Study the convenience or not of making an investment in technology and evaluate its impact on the digital transformation of the organization - Evaluate the composition of sales and the digital funnel - Appreciate the management of digital marketing campaigns in terms of generating quality traffic - Analyze ways to optimize ad spend and choose which media mix to use (to achieve, for example, more or less organic traffic vs. paid traffic) - Assess the importance of digital channels in customer acquisition