Case 1 Corrections.pdf - Katelyn Holmes Case 1 Corrections...

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Katelyn Holmes Case 1 Corrections Questions 1. Assess each distribution strategy from a qualitative point of view. Both distribution strategies seem to have their benefits and downsides. The trade show strategy allows for retailers and potential buyers to inspect the products in person. Once the retailers buy the goods, the customers can perhaps try on the different jewelry in the stores to see how it fits on their hands and ears, which may inspire them to buy it even more. However, this means that Foxy jewelry will be limited to the United States and Canada. On the other hand, the online distribution strategy can allow for Foxy jewelry to be shipped worldwide. Online distribution means that they can have a wider variety of customers from all countries. However, as was mentioned in the case, the potential customers may not be familiar with the jewelry's high quality since they cannot physically feel it. Despite this, marketing campaigns and free giveaways as samples could help boost the sales of Foxy jewelry should it choose to use the online distribution strategy. 2. Identify all costs, other than variable cost, for the trade show distribution strategy. Categorize these costs as investments or fixed costs (per trade show and for fiscal year (FY) 2014/2015) Investments: New Booth: $4,000 (Can use this booth for 30 shows) Fixed Costs: (They are attending 10 trade shows) Registration: $3,000 (per trade show) → 3,000 * 10 → per year = $30,000 Shipping of booth: $1,500 (per trade show) → 1,500 * 10 → per year = $15,000 Travel cost: $2,000 each and per trade show → (1,000 *2) * 10 → per year = $20,000 Promotional Materials: $2,800 (per trade show) → 2,800 * 10 → per year = 28,000

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