Foxy Originals
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Table of Contents
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DECISION TO BE MADE
PROBLEM IDENTIFICATION
SITUATION ANALYSIS
MARKET ANALYSIS
SEGMENT ANALYSIS
CURRENT FINANCIAL POSITION
SWOT ANALYSIS
ALTERNATIVES
ALTERNATIVE #1: SELL ONLY AT FESTIVALS
ALTERNATIVE #2: SELL ONLY THROUGH RETAILERS
ALTERNATIVE #3: SELL THROUGH RETAILERS AND FESTIVALS
RECOMMENDATION
APPENDICES
APPENDIX A: SALES VOLUME AND ATTENDANCE RECORDS
APPENDIX B: IN-DEPTH SWOT ANALYSIS
APPENDIX C: SALES FIGURES FOR 1999
APPENDIX C-1: OVERALL SALES FIGURES FOR 1999
APPENDIX C-2: FESTIVAL SALES FIGURES FOR 1999
APPENDIX C-3: RETAIL SALES FIGURES FOR 1999
APPENDIX D: SALES FIGURES FOR ALTERNATIVE #1
APPENDIX D-1: FESTIVAL SALES FIGURES FOR 2000 AT 10% GROWTH
APPENDIX D-2: FESTIVAL SALES FIGURES FOR 2000 AT 15% GROWTH
APPENDIX D-3: FESTIVAL SALES FIGURES FOR 2000 AT 20% GROWTH
APPENDIX E: SALES FIGURES FOR ALTERNATIVE #2
APPENDIX E-1: RETAIL SALES FIGURES FOR 2000 AT 25 ACCOUNTS
APPENDIX E-2: RETAIL SALES FIGURES FOR 2000 AT 30 ACCOUNTS
APPENDIX F: SALES FIGURES FOR ALTERNATIVE #3
APPENDIX F-1: RETAIL SALES FIGURES FOR 2000 – WITHOUT NEW ACCOUNTS
APPENDIX F-2: FESTIVAL SALES FIGURES FOR 2000 AT 5% GROWTH
APPENDIX F-3: FESTIVAL SALES FIGURES FOR 2000 AT 10% GROWTH
APPENDIX F-4: OVERALL SALES FIGURES FOR 2000 AT 5% GROWTH
APPENDIX F-5: OVERALL SALES FIGURES FOR 2000 AT 10% GROWTH
Applied Marketing – Foxy Originals
Case Assignment #2 – Individual
Justin Perchaluk
DECISION TO BE MADE
Should Foxy Originals sell their lines of hand-made necklaces through retailers, festivals, or both?
PROBLEM IDENTIFICATION
Foxy Originals current retailers were upset that the same product lines they were offering were being sold at low-end festivals at the wholesale price.
SITUATION ANALYSIS
Market Analysis
Currently products are sold through retailers and at festivals. The primary target market is women between the ages of 15 and 40 that value jewelry designs that are unique and trendy. The majority of festival goers are teenagers and young adults, therefore sales at festivals come from women between the ages of 15 and 25. The majority of sales generated from craft shows come from the 25 to 40 year-old segment.
Segment Analysis (Marketing Mix)
Product
Floating Necklace – Necklace manufactured by hand from tiger wire and high quality glass beads from the Czech Republic.
Berlin Bead Necklace – Necklace manufactured by hand from black wire and synthetic beads manufactured in Berlin.
Price
Retail:
Floating Necklace – $30
Berlin Bead Necklace – $55
Festival:
Floating Necklace – $12
Berlin Bead Necklace – $22
Place
Both necklace lines are available at 21 retailers (14 in Toronto, 6 in London, 1 in Winnipeg, Manitoba), and 7 Festivals across Ontario (see Appendix A for sales figures of each festival)
Promotion
Currently promoting products through festivals – interacting with customers and promoting the image of hand-made high quality original necklace designs.
Current Financial Position
Foxy Originals made a profit of $6,631.44 (20% profit margin) in 1999 (see Appendix C-1 for 1999 income statement). At festivals, Foxy almost broke even, but experienced a net loss of $57.97. This is directly related to their high variable costs, along with an investment of $500 in a new booth (see Appendix C-2 for a festival income statement). Through retailers Foxy made a profit of $6,689.41 (32% profit margin) through a higher sales volume which is the direct benefit of selling all year round (see Appendix C-1 for sales broken down by channel, and Appendix C-3 for a retail income statement).
SWOT Analysis (for a more in-depth analysis please see Appendix B)
Strengths
Weaknesses
Age and sex of owners
Sara ONiels family business
Julie Kleins past jewelry experience
Delivery time
Opportunities
Threats
Sell only through retailers
Sell only at festivals
Sell through both retailers and festivals
Sell products via an internet website
Can create unlimited types of necklaces
Retailers selling channel preferences
Festival weather
ALTERNATIVES
Alternative #1: Sell Only at Festivals
Advantages
Disadvantages
Resources can focus on one distribution channel
Owners enjoy