Frank Juhasz, Ronnie Olesnovitch, Macy Camara, Dan Valko December 2, 2014

Mission Statement Our mission here at Kin is to provide a high-quality, affordable shoe that’s designed with our consumers in mind. Our goal is to inspire individuals to become more energetic in their lives and be better today than they were yesterday by pursuing a more active everyday lifestyle.

Positioning and Target Consumers ● To the active individuals seeking new heights, Kin provides a high- performing, yet affordable shoe that's designed with you in mind. At Kin, not only are you a friend, you're family to us. With your Kin, run, and redefine your boundaries. ● Our Target consumers are individuals who are passionate about being active and living better, healthy lifestyles.

Points of Differentiation ● Customer satisfaction and building a strong relationship with our customers plays a huge role on our points of differentiation. o People: Employees focus on building effective relationships with the customers. o Services: Consumer-oriented business with a positive experience for our customers o Product: We keep our consumer’s wallets in mind!! o Image: “Run With Friends.”

Pricing ● Strategies for each market were the same ● Different pricing strategies used o $.98 o Market Penetration ● Market Research helped learn about competitors’ pricing o Used that knowledge to plan pricing actions for next period

Home Pricing ● Average: $98.24 (8 Periods) o High-Low Periods Price

Domestic Pricing ● Average: $80.24 (8 Periods) o Stationary around 80 Periods Price

Foreign Pricing ● Average: $96.58 (5 Periods) o High 90s Periods Price

Product Development ● Version Reached: 3 ● Determined expenditures based on percentage towards next level ● Used new version to increase price of shoe ● Expense Range: $100,000-$2,000,000 ● Expense Average: $1,107,591

Promotion ● Beginning of simulation: Tried different combinations of numbers in each of the different promotion categories to see how they worked ● Then: Read through Markets descriptions in the Startup section to decide which promotion categories needed more money than others

Home Market Promotions ● Categories we focused spending more on: ○ Advertising ■ Avg. spending between periods 1-8: $1,662,500 ○ Consumer Promotion ■ Avg. spending between periods 1-8: $1,075,000 ● Categories that are only marginally effective: ○ Dealer Promotion ■ Avg. spending between periods 1-8: $837,500 ○ Sales People ■ Sales people working between periods 1-8: 4

Domestic Market Promotions ● Categories we focused more on: ○ Dealer Promotion ■ Avg. spending between periods 1-8: $1,043,750 ○ Consumer Promotion ■ Avg. spending between periods 1-8: $1,068,750 ○ Sales People ■ Sales people working between periods 1 & 2: 8 ■ Sales people working between periods 3-8: 9 ● Category that we did not monitor as much: ○ Advertising ■ Avg. spending between periods 1-8: $1,537,500

Foreign Market Promotions ● Categories we focused more on: ○ Dealer Promotion ■ Avg. spending between periods 3-8: $1,266,667 ○ Sales People ■ Sales people working between periods 3-8: 10 ● Category that we did not monitor as much in Foreign Market: ○ Advertising ■ Avg. spending between periods 3-8: $875,000 ○ Consumer Promotion ■ Avg. spending between periods 3-8: $500,000

Competitors ● Beginning of the simulation: All of the teams were our primary competitors ● Simulation went on: Shadowbolt and Posterize were our main competitors o T hey were teams that were one above, Shadowbolt, and one below, Posterize, us in cumulative net profit for most of the simulation

Market Research ● Market research helped us learn about competitors pricing o Used this knowledge to help us come up with our own pricing for next period ● Used almost every period but for different categories

Revenue and Dollar Market Share

Price and Units Sold by Market

Income Statement

Summary ● Two things we learned were that : o Market research is a huge aspect on the business strategy and operations, which people do not generally think of when dealing with marketing. o What would work in one market might not work in another market and understanding the target environment. ● One thing that we could have done differently would be not missing the first decision. This affected our cumulative profit because we lost revenue rather than gained.