Fenix Del Sur Case Analysis
Fe’nix del Sur, LLC
Case Analysis
Marketing Policies and Strategies
Tuesday, March 6, 2012
I. Problem Definition:
Should Fe’nix accept the contract to broaden its position and potentially add $4million in additional sales, given the constraints of dedicating a large percent of their business to replicas – which may have an effect on their relationship with current dealers?
II. Industry Analysis:
Product-Market Matrix
| Collectors | Non-Collectors/ Gift Buyers| Replicas | | | Authentic | Fe’nix Del Sur| |
According to the product-market matrix above, and after reading about the industry, it is apparent that Fe’nix del Sur competes in selling authentic artifacts to collectors. After some of their clients insisted on an expanded product line, Fe’nix del Sur started producing replicas of their authentic artifacts. The replicas, in return, have broadened the company’s market to include gift buyers and individuals looking for decorative items.
III. Organizational Analysis:
Fe’nix del Sur is a reputable importer of authentic Southwestern jewelry and pottery for collectors. They originally sourced Hopi and Navajo artifacts, but in recent years have expanded their product line to include pre-Columbian artifacts from Peru and Venezuela, along with tribal and burial artifacts from Africa.
If Fe’nix del Sur accepts the contract, their business definition would change. Since the company’s main focus in currently on dealing authentic artifacts to collectors (exclusively through specialty dealers, firm-sponsored showings and a few exclusive department stores), the loyal collectors who continually purchase their products may start to look elsewhere if the company fully expands their product line to include many replicas. The company would no longer be in just the authentic jewelry and pottery business, but rather also in the “replica” business. Therefore, their new business
Case Analysis
Marketing Policies and Strategies
Tuesday, March 6, 2012
I. Problem Definition:
Should Fe’nix accept the contract to broaden its position and potentially add $4million in additional sales, given the constraints of dedicating a large percent of their business to replicas – which may have an effect on their relationship with current dealers?
II. Industry Analysis:
Product-Market Matrix
| Collectors | Non-Collectors/ Gift Buyers| Replicas | | | Authentic | Fe’nix Del Sur| |
According to the product-market matrix above, and after reading about the industry, it is apparent that Fe’nix del Sur competes in selling authentic artifacts to collectors. After some of their clients insisted on an expanded product line, Fe’nix del Sur started producing replicas of their authentic artifacts. The replicas, in return, have broadened the company’s market to include gift buyers and individuals looking for decorative items.
III. Organizational Analysis:
Fe’nix del Sur is a reputable importer of authentic Southwestern jewelry and pottery for collectors. They originally sourced Hopi and Navajo artifacts, but in recent years have expanded their product line to include pre-Columbian artifacts from Peru and Venezuela, along with tribal and burial artifacts from Africa.
If Fe’nix del Sur accepts the contract, their business definition would change. Since the company’s main focus in currently on dealing authentic artifacts to collectors (exclusively through specialty dealers, firm-sponsored showings and a few exclusive department stores), the loyal collectors who continually purchase their products may start to look elsewhere if the company fully expands their product line to include many replicas. The company would no longer be in just the authentic jewelry and pottery business, but rather also in the “replica” business. Therefore, their new business