Fernlea Flowers: Sales and Customer Relationship Strategy

The senior account executive of Fernlea Flowers Limited was considering a proposed sales and distribution relationship with Price Chopper. Fernlea had been proceeding with plans for a New York State greenhouse, warehouse, and shipping facility for some time now, and was counting on the production and distribution capabilities of the new facility to support its ambitious sales expansion strategy throughout the northeastern U.S. Now, the company has been approached by a major supermarket chain with a proposal for a unique long-term relationship that could require a significant portion of that capacity, and the Fernlea executive team must decide how to proceed. The proposed relationship with Price Chopper was understood to be fundamentally different than Fernlea's current customer relationship model. In the words of the chief operating officer at Fernlea, "In the present situation, it does not fit. We're just not sure that the present situation shouldn't be changed. This could be a unique opportunity for us."