Foxy Originals - Expansion Into the U.S. Market
Foxy Originals 1. Discuss the pros and cons to launching the Foxy brand in the United States.
To determine the pros and cons, we conducted a SWOT analysis:
S(trengths) – Foxy Originals has saturated the Canadian market, which presents an opportunity for growth. The two owners have extensive experience in designing jewelry, having done so since they were in high school. They’re good at what they do and have had time to perfect their trade. They also have a firm grasp of who their target market is, so they are able to offer “fresh, fun, and funky” products at a reasonable price. With such a specific product (rather than just general jewelry), it creates a niche market that will generate loyal customers.
W(eaknesses) – Although saturating the Canadian market presents an opportunity for growth, it also puts a burden on the company because they have no choice but to expand, which can cost a lot of time and money. They must take time away from the company to conduct market research and decide where to launch their products. They have to decide on retail outlets, price points, and they have to compile an estimate of the financial information, including exporting costs, transportation, etc.
O(pportunities) – Jewelry designed for a specific type of woman can definitely create a niche market since the jewelry industry in the United States is so huge. It sets them apart from most U.S. sellers and makes their product truly unique. Setting it at a lower price point also makes it more attractive to initial buyers, which when they establish brand loyalty, they can raise their price to gain more revenue in the long-run and make up for the high initial cost of exporting. Also, given that they offer their jewelry to mostly college-aged women, they can implement a more specific marketing initiative, which could include hiring sales reps on the thousands of college campuses throughout the U.S., creating significant awareness.
T(hreats) – The U.S. market
To determine the pros and cons, we conducted a SWOT analysis:
S(trengths) – Foxy Originals has saturated the Canadian market, which presents an opportunity for growth. The two owners have extensive experience in designing jewelry, having done so since they were in high school. They’re good at what they do and have had time to perfect their trade. They also have a firm grasp of who their target market is, so they are able to offer “fresh, fun, and funky” products at a reasonable price. With such a specific product (rather than just general jewelry), it creates a niche market that will generate loyal customers.
W(eaknesses) – Although saturating the Canadian market presents an opportunity for growth, it also puts a burden on the company because they have no choice but to expand, which can cost a lot of time and money. They must take time away from the company to conduct market research and decide where to launch their products. They have to decide on retail outlets, price points, and they have to compile an estimate of the financial information, including exporting costs, transportation, etc.
O(pportunities) – Jewelry designed for a specific type of woman can definitely create a niche market since the jewelry industry in the United States is so huge. It sets them apart from most U.S. sellers and makes their product truly unique. Setting it at a lower price point also makes it more attractive to initial buyers, which when they establish brand loyalty, they can raise their price to gain more revenue in the long-run and make up for the high initial cost of exporting. Also, given that they offer their jewelry to mostly college-aged women, they can implement a more specific marketing initiative, which could include hiring sales reps on the thousands of college campuses throughout the U.S., creating significant awareness.
T(hreats) – The U.S. market