Pros: Kluger and Orol had established strong Foxy jewelry market in Canada but it is getting saturated. By expanding into the United States Foxy would be able to avoid oversaturation of the Canadian market. The U.S. jewelry market was almost 10 times larger than the Canadian market which offers great opportunity for their product exposure. With this expansion, Kluger and Orol could expand their production as well as possibly begin developing new product lines. Foxy is currently experiencing a steady growth period in sales so expansion to a new market at this time would be a good way to capitalize on this growth. By expanding into the US Foxy could potentially pull back a little on the volume growth in Canada to not drive the price down in the future.
Cons: Kluger and Orol have only done business in Canada. Both countries have very different market and very different taste, so creating jewelry line that will be successful in both countries will be very difficult. Establishing new business in new country with new marketing ideas and sales will result in large upfront cost. 2. Assess each distribution strategy from a qualitative point of view.
US Trade shows: Since the retailers personally get to meet the designers and see their products in the booths, it creates confidence in the product and its quality thereby enhancing the brand reputation. This also enables the retailers to take a good look at all the designs and choose certain signature designs of foxy thereby increasing the sales compared to the alternate strategy. As the foxy company itself ships the orders to the retailers they would ensure that the retailers get the original foxy jewelry. a lot of passion for the product. One of the main drawbacks is the amount of time that is being spent in the trade show and the lack of time to focus on the Canadian market. Also, by using the trade shows only the only direct