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

This maps show the progression of…. A.Projected path of swine flu B.Geographic dispersion of Babson MBAs after graduation C.Tom and Gisele’s travel schedule D.None of the above WebKinz Adoption Pattern

Shoe Skins Recap Shoe Skins Concept Benefits, Challenges Macro-Industry Analysis – low attraction – CROCS, Heelys – targeted success

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 market for teens and tweens between the ages 9-14 in the United States. 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

Sample Shoe Skins Eric Customer Interfaces

Customer Interfaces Shoe Skins Shoe Skins Shoe Skins

Information and Insight Wish Lists/ Ideas Demographics Network Trends Customer Feedback Customer Feedback What’s Hot or Not Custom Designs Shoe Skins

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

Forecasting Method ShoeSkins is: Novelty shoe Bricks & mortar/website hybrid Found similar products –Heelys, Crocs –Webkinz Forecast Similar growth Geography and market size. Shoe, 1 Skin, + 1 Free - $39.99 Skins $4.99 – $6.99 ShoeSkins is: Novelty shoe Bricks & mortar/website hybrid Found similar products –Heelys, Crocs –Webkinz Forecast Similar growth Geography and market size. Shoe, 1 Skin, + 1 Free - $39.99 Skins $4.99 – $6.99

Similar Products- Heelys & Crocs

Similar Adoption - Webkinz Webkinz geographical adoption pattern

Revenue Forecast Year 1Year 2Year 3Year 4Year 5 Conservative $ 266,893 $ 1,831,197 $ 5,996,400 $ 12,591,600 $ 32,227,500 Midrange $ 533,785 $ 2,898,767 $ 12,591,600 $ 25,782,000 $ 52,761,600 Aggressive $ 800,678 $ 3,441,028 $ 18,887,400 $ 52,453,800 $ 97,106,400 Sailaja Core Competencies ConservativeMid RangeAggressive

Core Competencies Creating, identifying and adapting to latest trends with our target segment Culture at Shoe Skins Cultivating user communities Images, runway, kids following trends Incomplete

Core Processes/Systems Rapid “Design to Doormat” Eye-popping designs Insights from data Customer communities 3 rd Party relationships Viral Marketing The Virtuous Cycle

Strategic Assets & Resources Shoe Skins S IT Infrastructure Online and Store Presence Patents Employees & Customers IT Infrastructure Online and Store Presence Patents Employees & Customers Eric Value Network

Value Network – Suppliers OUTSOURCE Shoe manufacturing (overseas) Skin manufacturing (US) Internal over time Logistics (shipping) Legal OUTSOURCE Shoe manufacturing (overseas) Skin manufacturing (US) Internal over time Logistics (shipping) Legal

Value Network – Partners Third-party designers Kids Celebrities Malls Boutique shops /specialty shops Advertisers in strategic media markets. Third-party designers Kids Celebrities Malls Boutique shops /specialty shops Advertisers in strategic media markets.

Conclusion How are we different? What are we selling? How can we get there? – Data mining, trend analysis, create trends – Cultivating relationships with suppliers, customers and employees What are the limitations? Incomplete

Extra Slides

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

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)