Foxy Essay

629 Words3 Pages
Decision To Be Made Foxy needs to decide on improving its distribution and pricing strategy. Should they continue selling at festivals and retailers at different prices or focus on a single distribution method and pricing strategy? Situation Analysis Overview of Background Foxy is a jewellery manufacturer selling exclusive hand-made necklaces at weekend festivals and to retailers located in southern Ontario. They offer two product lines: the Foxy Floating Necklace and the Berlin Bead Necklace. By the end of 1999, many retailers were getting upset that Foxy was selling at weekend festivals because the same product lines available in stores were being sold at low-end festivals could damage the retailers store’s image. They were also upset with the fact that Foxy was selling the necklaces at festivals at the wholesale price, which was less than half of the retailer’s selling price. It is evident that both distribution methods are successful but entails a list of pros and cons. At weekend festivals, detailed planning is required to secure vendor permits and project adequate production as well as long hours. Sales at festivals are also affecting depending on weather and consumers are also price sensitive so Foxy must price competitively. Despite the long hours, Foxy owners can connect with consumers so they would know the opinions and tastes of the consumers as to help with deigning the product line. At retailers, it requires time commitment. Some stores don’t put a large order to make up for the hard work but when they do, it is all worth it. Six accounts would place 3 orders of $300 and fifteen accounts would place 2 orders of $300. Retail accounts would provide sales volume all year round and provide exposure for the Foxy brand. Foxy has three options they are considering: 1. Focus on weekend festival sales only • Estimated annual sales

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