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

2. 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

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

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

5. 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

6. 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

7. Sample Shoe Skins Eric Customer Interfaces

8. Customer Interfaces Shoe Skins Shoe Skins Shoe Skins

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

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

11. 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

12. Similar Products- Heelys & Crocs

13. Similar Adoption - Webkinz Webkinz geographical adoption pattern

14. 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

15. 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

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

17. 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

18. 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

19. 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.

20. 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

21. Extra Slides

22. 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 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

23. 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)