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Foxy Originals Case Study

Sahil Bhutani

Capilano University

NABU 470/69

Juanita Lohmeyer
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Executive Summary

Jennifer Ger and Suzie Chemel's eventual decision to expand their online presence and make strategic

choices to boost revenue is the subject of the case study. Foxy Originals (Foxy) is a world-renowned

jewellery design and manufacturing firm headquartered in Toronto, Canada (Bond, 2016). The jewellery

is of excellent quality and fashionable design, created by the owner and sold to customers in the United

States and Canada. Foxy has a competitive edge in the jewellery sector as a result of this. Both partners

worked to grow their online sales or to continue gaining retailers interested in carrying their product

line. The company is at a loss as to how to boost product sales. Because their resources were restricted,

the company's partners were apprehensive about whether trade shows were feasible given the ten-year

investment. While the displays draw 75,000 visitors, firms should concentrate on boosting their online

shops as compared to potential customers. Foxy Originals has created brand recognition across Canada

and the United States via sales agents or merchants, who contributed significantly to 2005 sales totals.

Foxy's partners wanted to attend more trade shows since they were the company's main source of

success. They may, however, continue to purchase online. Collaboration with social media influencers

would draw potential customers from all around the globe, not only Canada and the United States.

Influencers having more over one million followers may convince their followers to buy Foxy products.

Foxy, on the other hand, is growing and has the potential to get better.

Issues

 Increase in sales approach: Foxy may increase income by selling online or attending more trade

exhibits and shows.

 Attracting more retailers: The partners may attract more shops by holding more trade shows and

attracting a more diversified collection of clienteles.

 Limited resources: The partners are getting married and will not have time to attend trade shows

while looking for new sales reps.

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Findings from Situational Assessment

To increase income, stakeholders must re-evaluate their strategies. Ger and Chemel attended

trade exhibitions that required a full-time commitment (see exhibit B) until they decided to seek into

other methods for increasing sales. During the financial year 2013, the online shop accounted for barely

15% of total sales. Besides the sales and retail personnel Ger and Chemel now have on their team,

hence, they need a fresh approach to attract first-time clients, as well as additional solutions to assist

them in selling their items. The two partners used to spend a lot of time together at trade events, but their

lives altered once they got married. To save expenses, businesses must either boost their online sales or

enlist more representative to help them with retail product distribution.

Strategic Option Identification and Analysis

The company's greatest accomplishment is its presence at trade events. Such functions allow the

company to grow beyond its current limits and assist the partners in promoting the product to a wide

range of people. However, the initial expenditures are prohibitively high. (See Exhibit A). To reduce

costs, it is feasible to form agreements with other firms that can execute the services by conveying its

products.

Foxy has a large business network. The Foxy partners are not limited to trade fairs only. They might

work with well-known social media personalities who have a large number of followers. This will

increase brand recognition and give Foxy more exposure.

However, the market may respond differently to the designs that Foxy has to offer. Foxy is now

recognized as a brand in the United States, and although consumer preferences in Canada and the United

States vary, Foxy may continue to create goods to boost customer pleasure.

Recommendations

Ger and Chemel, the company's proprietors, have done a fantastic job managing it. They are

dynamic and have both experience and expertise in the design and manufacture of jewelry, which
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benefits a highly diversified market in the industry. They give more preferences to women's fashion in

terms of market trends, which makes Foxy a unique and exciting company. The partners, on the other

hand, want to increase their income and gain a competitive advantage in the jewelry industry. They may

focus on online sales since they had a large network of trade shows. That is Foxy's main success, since

the proprietors directly push their goods to retail establishments. One thing they might do is partner with

renowned persons who have a high number of followers on social media. People on YouTube,

Facebook, and Twitter are well-known because they have a significant following of admirers who are

enthusiastic about what they do. This might boost online purchases while simultaneously promoting the

celebrity.

Implementation

Foxy has already began selling online since technology has evolved across many businesses. Ger

and Chemel's marketing strategies may be improved now that online purchasing is a prominent choice.

Buyers are often influenced by social media while making purchases. Partners may work with

influencers who have over one million followers. This will help them create their brand and may attract

new consumers. Customers who are interested in shopping online may use word-of-mouth to persuade

their sisters, friends, coworkers, and relatives, or even offer the item as a gift. They might also conduct

deals such as 15% off first-time purchases when utilizing the influencer's promo code. It effectively

establishes a favorable connection with the influencer. This procedure might be carried out online,

followed by improvement in the company's website that will attract customers to come and explore.

Furthermore, they might collaborate with online shops and encourage customers to provide feedback on

previous purchases. When they provide deals, companies may take into account the cost and markup for

each product. This is not restricted to customers in Canada or the United States, but is available globally.

Evaluation Criteria
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Ger and Chemel, the proprietors of Foxy Originals, founded their company with the goal of

having fun, getting publicity, and staying ahead of fashion trends (Bond, 2016). Looking back at

previous expenditures for conducting these trade shows (see Exhibit A), the total yearly spend is

$93,000. The total set price for the year is $9,433. That suggests that booths are used 30 times every

year. The projected profit from the trade exhibition may be $92,057.50 if the variable cost per item of

jewelry and the contribution margin of a weighted average are included (see exhibit A). The trade events

drew 75,000 guests, while online customers from all over the globe are in the thousands. The firm may

accomplish more online if they pay the yearly charge for trade fair tickets. They need to get a domain

that will make it easier for consumers to access their website. They should run more promotions to

attract new clients, and loyal customers will benefit the firm. Foxy has contributed to the brand's present

market reputation. They will be able to attract more clients if they can improve their marketing strategies

via the use of social media. As a result, they must concentrate on increasing sales on their website.
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Exhibit A

Cost of Trade Shows

Item Cost ($)
Registration 3000
Shipping 2500
Travel 2000
Product Samples 1800
Total 9300
Cost of 10 Trade Shows attended 93,000 (a)
One Time Investment Cost
Booths for Trade Shows 4000
No. of Usage 30
Cost per Usage 133.3 (b)
Total Fixed Costs (a) + (b) 93133

Trade Show Contributions

Item Sale Variable Cost CM CM Ratio
Necklace (Single) 17 8.05 8.95 0.53
Ear ring (Pair) 12 5.50 6.50 0.54
Foxy sells 12 pairs of Ear rings and 25 Necklaces, and the Shipping Cost would be $15
CM Weighted Average (6.50*12) +(8.95*25)-15 = 286.75

Profit Expected = CM per Order * Number of Orders – Fixed Cost

= 286.75 * 650 – 93133
= 93,254.5

Exhibit B

Swot Analysis

Strengths Weaknesses
 Innovation  Poor patent protection
 Research and Development  No transparent compensation system
 Flexibility  Limited utilization of blue ocean
 Accessibility to consumer data  Failure in new markets

Opportunities Threats
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 Strategic alliances and partnerships  Stiff competition

 Using market analytics  Price volatility
 Digital marketing  Market saturation
 Communicate clear value proposition  Government regulations and policies

References
Bond, J. (2016). Foxy Originals: The Online Expansion. Ontario, Canada: Ivey Publishing.