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. 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)

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

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

10. Core Competencies Creating, identifying and adapting to latest trends with our target segment Cultivating user communities Incomplete

11. Core Processes/Systems Eye-popping high quality designs Viral marketing Rapid “Design to Doormat” Superior customer experience Managing supplier/partner relationships Eye-popping high quality designs Viral marketing Rapid “Design to Doormat” Superior customer experience Managing supplier/partner relationships

12. 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

13. 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

14. Value Network – Partners Third-party designers Boutique shops / retailers Schools and Fitness clubs that offer kids programs. Advertisers in strategic media markets. Third-party designers Boutique shops / retailers Schools and Fitness clubs that offer kids programs. Advertisers in strategic media markets.

15. Business Boundaries INTERNAL OUTSOURCE

16. Forecasting Method ShoeSkins is: – Novelty shoe – Bricks & mortar/website hybrid Found similar products –Heelys, Crocs –Webkinz Forecast Similar growth Geography and market size. ShoeSkins is: – Novelty shoe – Bricks & mortar/website hybrid Found similar products –Heelys, Crocs –Webkinz Forecast Similar growth Geography and market size.

17. Similar Products- Heelys & Crocs

18. Similar Model - Webkinz Webkinz geographical adoption pattern

19. 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

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