Introduction
Established in 1998, Foxy Originals is a Canadian jewelry company founded by 2 partners, Jen Kluger and Suzie Orol. These 2 designers were passionate about jewelry design focusing on customers in the age group between 18 and 30. Starting their business by selling jewelry on the roads during various outdoor festival and summer concerts, they have always remained two steps ahead of their competitors and their jewelry could be found in 250 boutiques in Canada. Kluger and Orol personally sold their product and managed all the operations.
Major issues
With the growing popularity of the design, many stores have Foxy line of jewelries, which means that the market is coming to a cease. Given this scenario they want to expand their territory and would want to expand their business in US. While choosing to expand their business they are in dilemma on whether to obtain trade shows or hiring sales representative or both as best method of distributions.
Profitable distribution channel
From the calculation of different distribution methods we can conclude that with the worst effect on sales, distribution by representative will be more profitable as compared to distribution method by trade show. But when we compare the highest sales volume, trade show is more profitable channel of distribution as compared to sales representative channel of distribution.
Choose a distribution strategy
Considering both the option, distribution by trade show is more preferred. In this way they will have some profit at lower level of sales but as a designer they can gauge the trend and choice of US market in a better way by networking with the wholesalers in the major cities. They have been able to handle Canadian operations and supply chain and managed to double the sales for 3 consecutive years. They don’t have to rely on the capabilities of the sales representative to sale