1. Discuss the pros and cons to launching the foxy brand in the United States. Pros | Cons | U.S. market is 10 times larger than Canada. With right business model and price, foxy would gain additional revenue and profit.
The brand seeks great opportunity to further develop the business, enhance product design as well as company’s brand image. | U.S market is different in terms of tastes for jewellery. American preferred the latest trend regardless of the product’s origin. It might take foxy some time to adapt to different customers and create new product to compete within that larger market. Foxy may face risk in controlling the business from far; where Foxy’s HQ based in Canada. These means that Foxy Original need to build their
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For each distribution strategy, calculate the unit contribution and contribution margin rate for each of the two products line (necklaces and pairs of earrings). What is the weighted average contribution margin for an order at a trade show and an order with sale representatives?
Trade Show | Sales ($) | Unit VC ($) | Unit Contribution Margin | Product Qty | Sales mix (Percentage) | Weighted-average contribution margin | Necklaces | 17 | 8.65 | 8.35 | 25 | 67.57 | 5.64 | Earrings | 12 | 6.75 | 5.25 | 12 | 32.43 | 1.70 | Total | | | | 37 | 100 | 7.34 |
S.R. | Sales ($) | Unit VC ($) | Unit Contribution Margin | Product Qty | Sales mix (Percentage) | Weighted-average contribution margin | Necklaces | 17 | 10.60 | 6.40 | 25 | 67.57 | 4.32 | Earrings | 12 | 7.30 | 4.70 | 12 | 32.43 | 1.52 | Total | | | | 37 | 100 | 5.84 |
8. Calculate Foxy’s breakeven point for each distribution strategy
Breakeven point for year 2005
a) Trade show
Breakeven point TS=94,333.337.34 =12,852
S(trengths) – Foxy Originals has saturated the Canadian market, which presents an opportunity for growth. The two owners have extensive experience in designing jewelry, having done so since they were in high school. They’re good at what they do and have had time to perfect their trade. They also have a firm grasp of who their target market is, so they are able to offer “fresh, fun, and funky” products at a reasonable price. With such a specific product (rather than just general jewelry), it creates a niche market that will generate loyal customers.
| Strengths 1. An international brand sensation. 2. Particular brand culture 3. With leading technology development ability and also well product quality 4. Marketing both online and offline
The foreign partner can also become a competitor by selling its production in places where the parental company is already in.
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
Our mission is to provide consumers with innovative products to increase efficiency and productivity while proving to have less impact on our environment and help our customers do so as well. We wish to prolong our current economic growth and protect our planet in the process. The integrity of our company is based on the quality of our products, our satisfied customers, the integrity and conscientiousness of our employees and our sincerity to innovative development and evolution.
Brand design plays a crucial role on the customers’ purchasing decision. The brand design is the tool to promote a product by any organisation that can either attract the customers or resist them to buy the product. The chosen topic is considered to evaluate the importance of branding for any product in UK and US. As opined by Kapferer (2012, p.76), Brand Design is important when trying to market a new product or service in the market, which is new or already exists.
Your Brand can either open doors for you filled with opportunities or closed doors for you leaving without opportunities.
The company’s main objective is to increase brand recognition in the domestic market as well as
Jewelry designed by Foxy has been approved by Canadian. However, there is uncertainty about the how responsive American customers would be. If American customers prefer other style, whether Foxy needs to play up to U.S. market by changing design style, or hiring new designers? Moreover, Foxy should pay much attention to logistics, because delivering abroad is more complicated. Foxy needs to find a reliable deliver partner who could be responsible for delivering goods on time.
Our goal is to be perceptive, and innovative with new ideas that improves the achievements customer satisfaction, and quality service and product excellence for our customers.
products, have attracted a lot of customers throughout the world. The company has a huge
The voluptuous and sultry foxy owner of a pirate radio station manages to stay always one step ahead from the Police who constantly tries to put her hot show-on-wheels out of business for good.
With the success in Canada, Foxy is now considering an expansion into the US market due to its much larger size than the Canadian Jewelry market. But the problem is American consumers might not be as brand loyal as Canadian
For any company, to maintain an already established brand name is as equally a challenging task as the creation of the brand. In today’s challenging market environment, any business is expected to continuously focus on organizational learning and continuous improvement and introduction of products and services to stay alive in the market.
The company’s brand recognition is visible globally. It also possesses strong capital resources and has exhibited positive results to its shareholders in the past.