Foxy Original Essay

-------------------------------------------------
Group Case #2 - Foxy Originals
Decision to be Made
Partners Sara O’Neil and Julie Klein of Foxy Originals need to decide whether to continue selling at festivals as well as to retailers at different prices or to focus on a single distribution method and pricing strategy.
Situation Analysis
Background: Retailers started to feel that the lower (wholesale) prices that Foxy Originals were offering at the festivals was cannibalizing their stores’ sales. The retailers were also upset that the same merchandise they were selling in their stores were being sold at low-end Festivals which was damaging to their stores’ image.
Current Financial Situation: To determine Foxy Original’s current financial
Festival Costs: Floating Necklace | Berlin Bead Necklace | Variable Costs (CAD$) | 1,526.84 | Variable Costs (CAD$) | 1,719.81 | Fixed Costs (CAD$) | 1,706.67 | Total Costs(CAD$) | 4,953.32 |

Festival Sales:
Revenue (based on sales volumes before tax) = $12, 766
Current Profit:
$12,766 - $4,953.32 = $7,812.68
$12,766 - $4,953.32 = $7,812.68

2. Retail Costs: Floating Necklace | Berlin Bead Necklace | variable Costs (CAD$) | 2,475.36 | Variable Costs (CAD$) | 2,775.66 | Fixed Costs (CAD$) | 1,260.00 | Total Costs(CAD$) | 6,511.02 |

Retail Sales:
Revenue (based on 21 accounts) = $20,700

Current Profits:
$20,700 - $6,511.02 = $14,188.98
$20,700 - $6,511.02 = $14,188.98

3. Current profits based on both revenue streams is
Key Success Factors 1. Popular in retailers because accessible target market has more disposable income. (Higher in the TM age range: 25 – 40 = majority of sales) vs. festivals that only attract the younger crowd, teenagers and young adults, who don’t spend as much on jewellery. 2. The partners strive to stay current, and are always looking for trendy and new designs. 3. Opportunity to charge lower prices
Distribution Issues 1. Two week delivery