Foxy Originals

Table of Contents

Item Page

DECISION TO BE MADE 1

PROBLEM IDENTIFICATION 1

SITUATION ANALYSIS 1

MARKET ANALYSIS 1

SEGMENT ANALYSIS 1

CURRENT FINANCIAL POSITION 1

SWOT ANALYSIS 2

ALTERNATIVES 2

ALTERNATIVE #1: SELL ONLY AT FESTIVALS 2

ALTERNATIVE #2: SELL ONLY THROUGH RETAILERS 2

ALTERNATIVE #3: SELL THROUGH RETAILERS AND FESTIVALS 2

RECOMMENDATION 3

APPENDICES 4

APPENDIX A: SALES VOLUME AND ATTENDANCE RECORDS 5

APPENDIX B: IN-DEPTH SWOT ANALYSIS 6

APPENDIX C: SALES FIGURES FOR 1999

APPENDIX C-1: OVERALL SALES FIGURES FOR 1999 7

APPENDIX C-2: FESTIVAL SALES FIGURES FOR 1999 8

APPENDIX C-3: RETAIL SALES FIGURES FOR 1999 9

APPENDIX D: SALES FIGURES FOR ALTERNATIVE #1

APPENDIX D-1: FESTIVAL SALES FIGURES FOR 2000 AT 10% GROWTH 12

APPENDIX D-2: FESTIVAL SALES FIGURES FOR 2000 AT 15% GROWTH 13

APPENDIX D-3: FESTIVAL SALES FIGURES FOR 2000 AT 20% GROWTH 14

APPENDIX E: SALES FIGURES FOR ALTERNATIVE #2

APPENDIX E-1: RETAIL SALES FIGURES FOR 2000 AT 25 ACCOUNTS 15

APPENDIX E-2: RETAIL SALES FIGURES FOR 2000 AT 30 ACCOUNTS 16

APPENDIX F: SALES FIGURES FOR ALTERNATIVE #3

APPENDIX F-1: RETAIL SALES FIGURES FOR 2000 - WITHOUT NEW ACCOUNTS 17

APPENDIX F-2: FESTIVAL SALES FIGURES FOR 2000 AT 5% GROWTH 18

APPENDIX F-3: FESTIVAL SALES FIGURES FOR 2000 AT 10% GROWTH 19

APPENDIX F-4: OVERALL SALES FIGURES FOR 2000 AT 5% GROWTH 20

APPENDIX F-5: OVERALL SALES FIGURES FOR 2000 AT 10% GROWTH 21

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 O'Niel's family business

* Julie Klein's 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