Foxy Originals - Expansion Into the U.S. Market Essay

1737 WordsDec 14, 20117 Pages
Foxy Originals 1. Discuss the pros and cons to launching the Foxy brand in the United States. To determine the pros and cons, we conducted a SWOT analysis: 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. W(eaknesses) –…show more content…
Worst and best case scenarios Trade Shows | Sales Representative | Worst Case | 400 Orders | Worst Case | 480 Orders | Revenue | $227,600.00 | Revenue | $273,120.00 | Cost | $112,900.00 | Cost | $66,488.00 | Profit | $114,700.00 | Profit | $206,632.00 | Best Case | 900 Orders | Best Case | 720 Orders | Revenue | $512,100.00 | Revenue | $409,680.00 | Cost | $254,025.00 | Cost | $86,972.00 | Profit | $258,075.00 | Profit | $322,708.00 | 3. Identify all costs, other than variable costs, for the trade show distribution strategy. Categorize these costs as investments and fixed costs (per trade show and for fiscal 2005). Entry | $3,000 | Fixed Cost | Booth ($4,000/30) | $133 | Investment | Shipping | $1,500 | Fixed Cost | Travel | $2,000 | Fixed Cost | Merchandise | $2,800 | Fixed Cost | Cost/trade show | $9,433 | | 4. Identify all costs, other than variable costs, for the sales representatives’ distribution strategy. Categorize these costs as investments and fixed costs (per sales representative and for fiscal 2005). Rental Space/Year ($200/month) | $2,400.00 | Fixed Cost | Sample Boards (2@$1,450 each) | $2,900.00 | Fixed Cost | Catalogs and Promotion Material | $600.00 | Fixed Cost | Bookkeeping (12 hours @$40/hour) | $480.00 | Fixed Cost | Cost per representative per year | $6,380.00 | | 5. Do the variable costs for

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