Freedom Footwear Free to Run April 27 th,2015 Brianne Hughes, Yuhua Cao, Nick Visco, Phuong Nguyen

Mission and Positioning Mission Statement : To bring a free and comfortable fit while maintaining durability and strength to active individuals around the world. Positioning Strategy : To active young adults who need to stay fit and healthy, Freedom Footwear is an athletic shoe that allows you to have a free and comfortable fit while maintaining durability and strength during athletic activities compared to competitive products.

Target Consumer Segments : Freedom Footwear targets active young adults who are both males and females. Their age ranges from and are living throughout the world. We accommodate collegiate students with little or no income as well as households with an annual income ranging from 15,000 to $75,000. We provide shoes to individuals who look to compete athletically as well as those who look to maintain their fitness and health on a regular basis. Not only are our shoes for daily activities, they are also durable and comfortable on all terrains. We supply various styles to match consumer’s personality and satisfy their needs

Points of Differentiation : Free fitting and comfortable Convenience of free shipping and returns Durable and reliable strength on all terrains Affordable price with high quality in style Made from high quality products

Product Development PeriodPriceProduct Version Level 1$1,500,000Basic 2$1,250,000Version 1 3$1,500,000Version 1 4$2,000,000Version 2 5$1,800,000Version 3 6$1,700,000Version 3 7$1,800,000Version 4

Product Pricing PeriodHomeDomesticForeign 1$100$850 2$90$800 3$88$800 4 $760 5$80$75$90 6$80$75$90 7$78$74$90

Promotion Home Market PeriodAdvertisingConsumer Promotion Sales PeopleDealer Promotion 1$1,500,000$2,300,0005$1,500,000 2 $1,700,0005$1,000,000 3$1,700,000$1,000,0005$800,000 4$1,900,000$1,000,0004$600,000 5$1,900,000$1,100,0004$700,000 6$1,700,000$1,100,0004$600,000 7$1,750,000$1,100,0004$600,000

Promotion Domestic Market PeriodAdvertisingConsumer Promotion Sales PeopleDealer Promotion 1$2,500,000$1,250,0007 2$1,700,000$1,300,0007$1,250,000 3$1,500,000$1, $1,100,000 4$1,300,000$1,000,0008 5$1,300,000$1,000,0007 6$1,300,000$1,000,0007 7$1,300,000$1,000,0007

Promotion Foreign Market PeriodAdvertisingConsumer Promotion Sales PeopleDealer Promotion $1,000,000 10$1,000, $1,000,000 7$850,000$700,00010$1,000,000

Competitive Analysis Market Research Average prices and sales people of our competitors Customer satisfaction Adjustment of prices Competitive advantage

Top Competitors  Our primary competitors throughout the simulations were: FlyKix Hyfeet Hermes Happy Feet  We remained consist with these four teams in net profit, cumulative net profit, cumulative unit sales and overall customer satisfaction.

Financial Analysis Total Revenue and Market Share

Home Market: Units Sold and Price per Unit

Domestic Market: Units Sold and Price per Unit

Foreign Market: Units Sold and Price per Unit

Profit Trend and Income Statement

Income Statement: Period 7

Cumulative Income Statement

Summary 1. We make and adjust our decisions based on average industry market research, so these data help us to understand better about the market and consumer’s perspective. 2. We learned that you can have a higher price in the foreign market as compared to the domestic and home markets. What we learned from the simulation : We should have taken a bigger risk in the beginning of the simulation, so that we could have gotten a better understanding of how to increase our profits. What would we do differently :