Group 18 Business Model- Revenue Side Bristol, Cuozzo, Holz, Lyman, Patibandla, Sexton

ShoeSkin Recap & Changes ShoeSkins Concept Benefits, Challenges Macro-Industry Analysis – low attraction – CROCS, Heelys – targeted success Target age was 5-12 – Change to 9-14

Agenda Core Strategy Customer Interface Strategic Resources Value Network Pricing & Revenue Forecasting Conclusion

Core Strategy Our mission is to be the leader in the Interactive Footwear for teens and tweens between the ages 9-14 in the United States and Canada Shoe Skins will be selling a “participatory footwear experience”- not a new kind of shoe

Differentiation Strategy Different from Existing Footwear Manufacturers Business model based on selling more Skins instead of shoes New business driven by existing users (networking) Different from Novelty/Custom Footwear The Shoe/skin system is unique Real as well as virtual communities among users

Some Sample Skins

Product Pricing Base shoe SRP: $39.99 – Includes 1 skin – registration code – 2 nd skin on website. Additional skins SRP: – $ 4.99 standard skins – $ 5.99 logo or branded – $ 6.99 custom skins (group discounts apply) Base shoe SRP: $39.99 – Includes 1 skin – registration code – 2 nd skin on website. Additional skins SRP: – $ 4.99 standard skins – $ 5.99 logo or branded – $ 6.99 custom skins (group discounts apply)

Customer Interfaces Shoe Skins Shoe Skins Shoe Skins Website Mall Kiosk Point of Sale Display

Fulfillment and Support Product Sizing Printable Fitting Guide User profile data ShoeSkin Size Skin Size Users profiles searchable for gift purchases. ShoeSkin SizeSkin Size

Core Competencies Creating, identifying and adapting to latest trends with our target segment Cultivating user communities Incomplete

Core Processes/Systems Eye-popping high quality designs Viral marketing Rapid “Design to Doormat” Superior customer experience Managing supplier/partner relationships Eye-popping high quality designs Viral marketing Rapid “Design to Doormat” Superior customer experience Managing supplier/partner relationships

Strategic Assets & Resources Shoe Skins S Online/Retail Presence IT Infrastructure Patents Culture at Shoe Skins Employees & Customers Online/Retail Presence IT Infrastructure Patents Culture at Shoe Skins Employees & Customers

Value Network – Suppliers Shoe manufacturing (outsourced) overseas Skin material manufacturing (outsourced) in the US Logistics (supply chain, shipping) Legal Shoe manufacturing (outsourced) overseas Skin material manufacturing (outsourced) in the US Logistics (supply chain, shipping) Legal

Value Network – Partners Third-party designers Boutique shops / retailers Schools and Fitness clubs that offer kids programs. Advertisers in strategic media markets. Third-party designers Boutique shops / retailers Schools and Fitness clubs that offer kids programs. Advertisers in strategic media markets.

Business Boundaries INTERNAL OUTSOURCE

Forecasting Method ShoeSkins is: – Novelty shoe – Bricks & mortar/website hybrid Found similar products –Heelys, Crocs –Webkinz Forecast Similar growth Geography and market size. ShoeSkins is: – Novelty shoe – Bricks & mortar/website hybrid Found similar products –Heelys, Crocs –Webkinz Forecast Similar growth Geography and market size.

Similar Products- Heelys & Crocs

Similar Model - Webkinz Webkinz geographical adoption pattern

Base Unit Sales Forecast Year 1Year 2Year 3Year 4Year 5 Conservative 5,341 36, , , ,000 Midrange 10,682 58, , , ,000 Aggressive 16,023 62, , ,000 1,440,000 Year 1Year 2Year 3Year 4Year 5 Conservative 10,682 73, , ,000 1,650,000 Midrange 21, , ,000 1,320,000 2,880,000 Aggressive 32, , ,000 3,780,000 7,920,000

Conclusion How are we different? What are we selling? How can we get there? – By securing a patent – Cultivating relationships with suppliers, customers and employees What are the limitations?