Foxy Originals Case Summary

Foxy Originals Case Summary

        This case covers a Canadian jewelry company that plans to enter the U.S. market. Foxy Originals was founded in 1998 by Jen Kugler and Suzie Orol who both went to the University of Western Ontario and had previous experience in the jewelry industry. The idea to do this started in June, 2004 and they wanted to achieve this goal by January, 2005. The partners were excited to start business in the U.S. but they also wanted to avoid concerns of an overly saturated market in Canada resulting in issues with carriers across the country. Once they knew that it was time to expand, the next thing to figure out was the proper method of distribution. The company has to decide which is more efficient between attending trade shows or hiring sales representatives.

The article states that each retail account took a significant time to develop because the partners would personally contact and meet with potential buyers. Kugler and Orol were already used to attending festivals and summer concerts to sell merchandise. Through personal selling, there is proven efficiency considering that sales doubled each year within the first 3 years of business. Without the use of sales representatives, the company has sold products to every retailer in Canada and they could be found in 250 boutiques across the country. The company has taken pride in a reputation built on staying ahead of trends while also effectively managing costs.

The company’s target market is described as both stylish and price conscious and it consists of women between the ages of 18 and 30. The three customer groups within the target market include the “reversible enamels ladies”, the “bridge ladies”, and the “chain-lovin’ ladies”. Both Kugler and Orol are involved in the design of the jewelry and the company releases 2 new collections every year. Product lines include necklaces, earrings, and rings. Each collection also has a theme to them.

Because the company is so healthy, it can fund an expansion into another country through internal controls. The key fashion hubs in the U.S. include Chicago, New York, Los Angeles, and Dallas. The U.S. market is 10 times the size of the Canadian market and the company plans to keep the same price offerings. U.S. trade shows are very large and the company plans on attending 10 with an average cost of $3,000 a show. The booth would cost $4,000 and the plane tickets and promotional materials would cost $2,000 and $2,800 respectively.