Mgmt 601 - Foxy Originals

Foxy Originals Business

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MGMT 601 | Foxy Originals

Executive Summary

oxy Originals(Foxy) is a Canada based jewelry company who offered high style andhigh quality designs at an affordable price point and targeted women between theages of 18 to 30. The company has been really successful in Canada from the dayit founded by Jen Kulger and Suzie Orol. Now, in 2004, with efficient internal funding, the twopartners are thinking about expand their business to the U.S. market due to the limited marketcapacity in Canada. The U.S. market is 10 times larger which, we believe, will give them greatopportunity to further develop the business, enhance their product design andboost thecompany¶s brand image. However, the U.S. market is quite different in terms of the tastes for jewelry, it might take Foxy some time and there might incur some launching costs such asSGA expenses for the company to adapt to the different appreciation between the Americanand Canadian customers. Based on the analysis of the pros and cons, set aside themanufacturing capacity issue to future, the partner believed it¶s worthwhile taking the risk toenter into the U.S. market

P a g e|

1

MGMT 601 | Foxy Originals

Executive Summary

oxy Originals(Foxy) is a Canada based jewelry company who offered high style andhigh quality designs at an affordable price point and targeted women between theages of 18 to 30. The company has been really successful in Canada from the dayit founded by Jen Kulger and Suzie Orol. Now, in 2004, with efficient internal funding, the twopartners are thinking about expand their business to the U.S. market due to the limited marketcapacity in Canada. The U.S. market is 10 times larger which, we believe, will give them greatopportunity to further develop the business, enhance their product design andboost thecompany¶s brand image. However, the U.S. market is quite different in terms of the tastes for jewelry, it might take Foxy some time and there might incur some launching costs such asSGA expenses for the company to adapt to the different appreciation between the Americanand Canadian customers. Based on the analysis of the pros and cons, set aside themanufacturing capacity issue to future, the partner believed it¶s worthwhile taking the risk toenter into the U.S. market.

The problems and value propositions

The problems in hand now are to decide on the best method of distribution----attending tradeshows, hiring sales representatives or both, and to evaluate the associated cost & benefitbehind the alternative strategies.

Trade Show

Trade-show distribution strategy is a good opportunity for the partners to learn about themarket trend and customers¶ preference; this information would facilitate the decision making

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