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

2. 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

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

4. 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

5. 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

6. Some Sample Skins

7. Customer Interfaces Shoe Skins Shoe Skins Shoe Skins Website Mall Kiosk Point of Sale Display Eric

8. Realtionship Dynamics Shoe Skins Website S ho e S ki ns Point of Sale Display Sh oe Sk ins Mall Kiosk Eric Virtual connection through Shoe Skins website Presence on social networking sites Virtual communities created by the users Face to face connection through Mall-based kiosks Specialty and gift stores

9. Fulfillment and Support Product Sizing Printable Fitting Guide User profile data ShoeSkin Size Skin Size Users profiles searchable for gift purchases. Eric ShoeSkin SizeSkin Size 3-53 6-86 9-119 12-1412

10. Information & Insight Users register on website to receive free skin. Website records user purchases. Sort data, demographics, designs, network, etc. – # of each design sold –where? – Design of the week – Most popular designs – Games unlock with purchase Collect Comments, Recommendations Delete Eric

12. Core Competencies & Processes/Systems Eye-popping high quality designs Cultivate a user community Rapid “Design to Doormat” Superior customer experience Managing supplier/partner relationships. Eye-popping high quality designs Cultivate a user community Rapid “Design to Doormat” Superior customer experience Managing supplier/partner relationships.

13. 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

14. 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 Update Eric

15. Value Network – Partners Third-party designers (kids and professionals) Boutique shops / shoe retailers (sales channel partner) Schools and Fitness clubs that offer kids programs. Advertisers to get into strategic media markets. Third-party designers (kids and professionals) Boutique shops / shoe retailers (sales channel partner) Schools and Fitness clubs that offer kids programs. Advertisers to get into strategic media markets. Combine with coalitions Eric

16. Value Network – Coalitions Trade associations Local communities Networking Visibility Find potential business allies Trade associations Local communities Networking Visibility Find potential business allies Delete Eric

17. Business Boundaries RETAIN INTERNALLY OUTSOURCE Eric

18. Pricing Structure Basic offering: Shoe System (includes pair of shoes & 1 skin & a code for a 2 nd skin) Additional Skins sold in stores/kiosks as well as online at an incremental price with bundle pricing for multiple skins or group orders Custom Skins at a small premium Shoe Skins site provides accessible Delete Eric

19. Product Pricing Base shoe SRP: $39.99 – Includes 1 skin and a registration code redeemable for a 2 nd skin on the Shoe Skins website. Additional skins SRP: – $ 4.99 for standard skins – $ 5.99 for logo or branded skins – $ 6.99 for custom skins (group discounts will apply) Base shoe SRP: $39.99 – Includes 1 skin and a registration code redeemable for a 2 nd skin on the Shoe Skins website. Additional skins SRP: – $ 4.99 for standard skins – $ 5.99 for logo or branded skins – $ 6.99 for custom skins (group discounts will apply) Eric

20. Forecasting Method Identified Shoe Skins as a combination of novelty footwear and bricks & mortar/web hybrid Found analogous products and looked at their growth –Webkinz –Heelys Identified target segment by geography to size overall market Identified Shoe Skins as a combination of novelty footwear and bricks & mortar/web hybrid Found analogous products and looked at their growth –Webkinz –Heelys Identified target segment by geography to size overall market Eric

21. Analogous Products- Crocs & Heelys Eric

22. Analogous Product- Webkinz Webkinz geographical adoption pattern Eric

23. Base Unit Sales Forecast Year 1Year 2Year 3Year 4Year 5 Conservative 5,341 36,646 120,000 240,000 600,000 Midrange 10,682 58,010 240,000 480,000 960,000 Aggressive 16,023 62,610 360,000 840,000 1,440,000 Eric

24. Skins Unit Sales Forecast Year 1Year 2Year 3Year 4Year 5 Conservative 10,682 73,292 240,000 600,000 1,650,000 Midrange 21,364 116,020 600,000 1,320,000 2,880,000 Aggressive 32,046 187,829 900,000 3,780,000 7,920,000 Eric

25. 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 Eric

26. Configurations Update Eric/SP

27. Conclusion Unique Business Model Website addresses real customer pain points of online shoe purchase User adoption pattern and expansion strategy defines the growth Our existence depends on Securing a patent Ability to cultivate relationships with suppliers, customers and employees SP Update

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

29. Appendix

30. Strategic Resources – Culture The values the firm is passionate about. – Passion for kids’ needs…it’s about the customer. – Childlike exuberance and fun – Innovation and design is our specialty – Teamwork… – People who love to have fun and play games – Love self-expression / individuality Update/Delete SP