Name: Mohammad Rafiuddin RafinID: 1811105Course: ACN-202Section: 02AssignmentFaculty : Md. Safiuddin Sir
Table of contentsTopicsPage no.Cover Page01Table of contents02Description about ‘Foxy Originals’03Assessment of their distribution strategies from a qualitative point of view 04-05Identification of all costs, except variable costs for Trade Show distribution06The total available increased amount for the online marketing campaign for FY 2014/15 if Foxy Originals decide not toattend trade shows & sell jewelries online07 The difference in variable costs for both products (necklacesand pairs of earrings) from trade shows and online sales08The variable costs per order incurred at a trade show and the variable cost per order in online order09The unit contribution and the contribution margin rate for each of the two product lines & Weighted average contribution margin foran order10-11Foxy’s Break-even point for Trade Shows & Online Sales12Which distribution channel is projected to be more profitable in 2015?13-14As per Ger and Chemel, perform relevant analysis and give a final decision. Support your decision with relevant justifications15References16
Description about ‘Foxy Originals’Foxy Originals started in the year 1998 by Jen Kluger & Suzie Orol. Both the founders met eachother when they were doing their course in “University of Western Ontario”. Both of them had apassion for designing because both of their families were doing business related to metal andjewel designing and manufacturing. Initially, they were selling the jewels to their college friendsand others and then started to sell to retail shops. In three year of operation, the companydoubled its sales every year and were in the fast-growing phase. The products the company wasselling are necklaces, earrings, bracelets, and rings. Their target customers are women in the agegroup between 18 to 30. They categorized their customer into three categories. They arereversible enamel ladies, chain loving ladies, and bridge ladies based on their interest in thejewels & fashion. Their current market in Canada is matured and they wanted to start theirbusiness in the US market which is 10 times bigger than the Canadian market. For the newmarket, they have to decide whether trade shows or sales representative method to get to buyers.
1) Assessment of their distribution strategies from a qualitative point of viewFoxy Originals started it’s business by offering/ distributing jewelries to their customer usingphysical platforms such as tradeshows in the Canadian Market. Later they used the onlineplatform for distributing jewelries.Trade Shows:Since Foxy Originals’ main target customers were retailers & wholesalers, it waswise to sell their jewelries in Canadian and US tradeshows because most of theretailers would be encouraged to visit such trade shows.