The founder of Starfish Products is Pandora Truelove who started
by making jewelry as a hobby at home. Eventually Pandora began to
sell some of her jewelry at small craft fairs in the district where
she lives. Her jewelry proved to be very popular, especially
amongst the age group 14-18. It was low priced, but well-made and
very fashionable. Quite simply, Pandora discovered that not only
was she good at making jewelry, but she had a feel for the market
and jewelry fashions that would sell to younger customers.

From this humble beginning, in just three years Pandora has
expanded her business and sales to the point where she now works
full-time and employs three people helping her make the jewelry in
a small workshop. At the moment she is selling mainly through craft
fairs, but now at much larger national events. Pandora wants to
expand the business; demand is still strong and she has retained
her flair for judging the market. She has the option to move to
larger premises where she could take on more production staff. She
has a small budget for promoting her products.

Her main problem in relation to expanding the business she feels
is distribution. To expand quickly she must secure retail outlets
on a national basis through which she can market. Alternatively,
she has considered if franchising might be an answer, with sales
direct to customers in their own homes rather like Tupperware or
Ann Summers parties.

QUESTIONS:

1. What distribution alternatives might be available to Pandora
to expand her business, and what are the relative advantages and
disadvantages?

2. Please list the Advantages & Disadvantages: