Jellio, Maker of Whimsical Furnishings, Considers Growth. Start by asking yourself, who is the customer for this product, not who is currently buying it. There is a difference. Then, where would they expect to buy it?
Answer and debate the questions:
1. Outsource production to China.
2. Build a manufacturing facility in the US.
3. Come up with an option of your own.
What are some of the considerations that should play a role in the decision? Make sure these are known and clearly stated.

here are pics of the case study

Transcribed Image Text:

1 of 4 SMALL BUSINESS CASE STUDY Meeting the Demand for Quirky Objects By ADRIANA GARDELLA MAY 30, 2012 Mario Marsicano and Chris Lenox founded Jellio in 2005. The company, which is based in New York, makes whimsical home furnishings. THE CHALLENGE To maximize growth, Jellio must figure out how to increase production to keep up with demand while reducing production costs. THE BACKGROUND Mr. Marsicano, a former advertising agency account director, had long collected old toys - Rock 'em Sock 'em Robots were among his favorites. He collected so many that he decided to experiment with embedding some in a table made of Lucite. When his friends started asking for their own Rock'em Sock 'em tables, he figured he might be on to something. He introduced Jellio with a Web site in 2005 and left his ad agency job in 2008 to focus on the company full time. So far, Mr. Lenox, Jellio's creative director, has kept his day job in advertising. and Kevin Champeny, Jellio's production manager, has kept his in production. As of summer 2011, Mr. Marsicano believed Jellio was on track to double its 2010 revenue, which was $450,000. At that time, Jellio- in most cases, Mr. Champeny - made each product individually, resulting in high costs and a maximum weekly output of 25 pieces. When the team had an idea for a new product, which occurred regularly, Mr. Lenox drew a three-dimensional rendering. Mr. Champeny, a sculptor and caster, fashioned the products made of polyurethane (like Jellio's $125 Gummi Bear candy- inspired GummiLights) and acrylic (like the company's $600 Rubik's Cube tables). Jellio, Maker of Whimsical Furnishings. Considers Growth-The... 7/30/15, 10:43 AM http://www.nytimes.com/2012/05/31/businessmalbinssjell For products made of other materials, Mr. Marsicano hunted down manufacturers. For example, with Mr. Lenox's drawing of an ice cream sandwich bench in hand, he searched online for local upholsterers. The finished product sells for $900. About 75 percent of Jellio's work was custom made for business clients - including Nike, Toyota and Sony- that used the company's products for special events, set design, and office décor. Google bought 20 lava lamps. The remaining customers were consumers, who bought products on Jellio's Web site and at four boutiques in Manhattan. The GummiLights were its most popular product. Mr. Champeny made them along with other consumer pieces at his studio in Bronxville, N.Y. 1 of 4 SMALL BUSINESS CASE STUDY Meeting the Demand for Quirky Objects By ADRIANA GARDELLA MAY 30, 2012 Mario Marsicano and Chris Lenox founded Jellio in 2005. The company, which is based in New York, makes whimsical home furnishings. THE CHALLENGE To maximize growth, Jellio must figure out how to increase production to keep up with demand while reducing production costs. THE BACKGROUND Mr. Marsicano, a former advertising agency account director, had long collected old toys - Rock 'em Sock 'em Robots were among his favorites. He collected so many that he decided to experiment with embedding some in a table made of Lucite. When his friends started asking for their own Rock'em Sock 'em tables, he figured he might be on to something. He introduced Jellio with a Web site in 2005 and left his ad agency job in 2008 to focus on the company full time. So far, Mr. Lenox, Jellio's creative director, has kept his day job in advertising. and Kevin Champeny, Jellio's production manager, has kept his in production. As of summer 2011, Mr. Marsicano believed Jellio was on track to double its 2010 revenue, which was $450,000. At that time, Jellio- in most cases, Mr. Champeny - made each product individually, resulting in high costs and a maximum weekly output of 25 pieces. When the team had an idea for a new product, which occurred regularly, Mr. Lenox drew a three-dimensional rendering. Mr. Champeny, a sculptor and caster, fashioned the products made of polyurethane (like Jellio's $125 Gummi Bear candy- inspired GummiLights) and acrylic (like the company's $600 Rubik's Cube tables). Jellio, Maker of Whimsical Furnishings. Considers Growth-The... 7/30/15, 10:43 AM http://www.nytimes.com/2012/05/31/businessmalbinssjell For products made of other materials, Mr. Marsicano hunted down manufacturers. For example, with Mr. Lenox's drawing of an ice cream sandwich bench in hand, he searched online for local upholsterers. The finished product sells for $900. About 75 percent of Jellio's work was custom made for business clients - including Nike, Toyota and Sony- that used the company's products for special events, set design, and office décor. Google bought 20 lava lamps. The remaining customers were consumers, who bought products on Jellio's Web site and at four boutiques in Manhattan. The GummiLights were its most popular product. Mr. Champeny made them along with other consumer pieces at his studio in Bronxville, N.Y.

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