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Shoe Skins. Group 18 Business Model- Revenue Side Bristol, Cuozzo, Holz, Lyman, Patibandla, Sexton. This maps show the progression of…. Projected path of swine flu Geographic dispersion of Babson MBAs after graduation Tom and Gisele’s travel schedule None of the above
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Shoe Skins Group 18 Business Model- Revenue Side Bristol, Cuozzo, Holz, Lyman, Patibandla, Sexton
This maps show the progression of…. Projected path of swine flu Geographic dispersion of Babson MBAs after graduation Tom and Gisele’s travel schedule 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 What’s Hot or Not Network Trends Shoe Skins Customer Feedback Demographics Wish Lists/ Ideas Custom Designs
Fulfillment and Support Product Sizing • Printable Fitting Guide • 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
Similar Adoption - Webkinz Webkinz geographical adoption pattern
Revenue Forecast Conservative Mid Range Aggressive Sailaja Core Competencies
Core Competencies Incomplete • Creating, identifying and adapting to latest trends with our target segment • Culture at Shoe Skins • Cultivating user communities Images, runway , kids following trends
Core Processes/Systems Eye-popping designs Insights from data Rapid “Design to Doormat” The Virtuous Cycle Customer communities 3rd Party relationships Viral Marketing
Strategic Assets & Resources • IT Infrastructure • Onlineand Store Presence • Patents • Employees & Customers Shoe Skins SS Eric Value Network
Value Network – Suppliers • 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.
Conclusion Incomplete • 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?
Product Pricing • Base shoe SRP: $39.99 • Includes 1 skin • registration code • 2nd skin on website. • Additional skins SRP: • $ 4.99 standard skins • $ 5.99 logo or branded • $ 6.99 custom skins (group discounts apply)