Giis Report Submission [Rijc Shoes]

8/4/2019 Giis Report Submission [Rijc Shoes]

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(shoe)TM

ENTREPRENEURSHIP PLAN

Raffles Institution (Junior College) One Raffles Institution Lane Singapore 575954 T (65) 6419 9888 F (65) 6419 9898 [email protected] www.rjc.edu.sg

!Raffles Institution (Junior College)Entrepreneurs Network
http://www.rjc.edu.sg/http://www.rjc.edu.sg/mailto:[email protected]:[email protected]


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ABSTRACT

The Idea

We live in a world that constantly seeks individual expression and customization. To fill this need, we see

(shoe), accurately read as Shoe Brackets, coming in as a largely untapped wearable footwear accessory.

We see a need for this product as consumers do not only want to see new shoes being designed, but also

trendy shoe accessories that will define their footwear and ultimately their personality. With our shoe accesso-

ries, consumers will also be able to customize their own shoes and they can choose to look different each timethey wear their shoe.

We uphold a firm philosophy of providing our customers with a voice in what they wear; we believe fashion

should be self-determined and a reflection of ones creativity and personality.

Thus, (shoe)TM accessories are largely kept as consumer-directed products. A significant portion of the accesso-

ries that eventually end up on the shelves are produced in accordance to the designs that the customers have

voted for. Shoe brackets and accessories will thus become an avenue in expressing community creativity, and

our consumers will be empowered to be the ultimate designers of their perfect outfits, down to the accessories

of their shoes.

Tapping into the consumers ideas and innovation opens us up to a whole range of possibilities, and (shoe)TM

hopes to progress towards a greater cause that our accessories can also give our consumers an opportunity

to advocate or demonstrate their support for social causes. This will also form part of our CSR practices,

launched after our firm reaches SME status.

Raffles Institution (Junior College)

GIIS - TIE Competition 2009 1


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Table of Contents

Product Information 5Overview 5Products Breakdown 6

(shoe) Platforms 6Customization and Personalization 6(shoe) Accessories 7

Market Research 8CUSTOMER PROFILING 8

Male Youths (Aged 14 - 25) 8Female Youths (Aged 15-34) 8

Environmental Analysis 10Internal Analysis 10Strengths 10

Advantageous Access to Key Distribution Channels 10Low Startup Cost 10High Profit Margin 10Transferability 10Timelessness 10

Weaknesses 11Lack of Patent Protection 11Constant Innovation and Market Research Required 11Limited Initial Manufacturing Capacity 11Low Customer Awareness 11




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External Analysis 12Opportunities 12

Strategic Alliances with Up-market Brands 12Increasing Purchasing Power of Target Consumer Groups 12Ease of Expansion of Target Consumer Group 12Novelty - First Movers Advantage 12

Threats 13Economic Downturn 13

Surge of New Entrants and Competitors 13

Shift in Consumers Tastes From Firms Products 13Strategies Developed - SWOT Matrix 14

Strength-Opportunity Strategies 14Weakness-Opportunity Strategies 14Strength-Threat Strategies 14Weakness-Threat Strategies 14

Marketing Strategies 15Price Breakdown 15Pricing of Products and Sales Breakdown 15Unique Selling Points (USPs) 15

Consumer-directed products 15Novelty (First Movers Advantage) 15

Marketing Strategies 16Online Marketing 16Telemarketing 16Catalogue Marketing 17




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Maximize Outreach 17Sustainability Plan 18

Timeframe 18Year 1 18Year 3 18

Measurable Key Performance Indicators (KPIs) 19Consumer Written and Verbal Feedback 19Market Survey 19

Quantitative Reviews of Sales Volume 19

Risk Assessment 20Commercial Viability 21

Overview 21Market Survey Statistics 21

Product Viability 21Product Potential 22Price Range 23

Financials: Statement of Forecasted Cash Flows 25




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Product Information

Overview

(shoe), accurately read as Shoe Brackets, is a footwear accessory. It is an innovative product intended for

initial launch in the youth market. Given current market trends that suggest a growing desire to customize ones

apparel, we have identified shoes as a largely untapped wearable that we can customize.

(shoe) is adjustable. (shoe) is removable. (shoe) is customizable.

The (shoe) platform will allow limitless creativity to flow in deciding what accessory to hang from the platform,

what colours to use to complement the shoes and what forms of customization are desirable.

We see a need for this product as consumers do not only want to see new shoes being designed, but also

trendy shoe accessories that will define their shoe and ultimately their personality. With our shoe accessories,

consumers will also be able to customize their own shoes and they can choose to look different each time they

wear their shoe.




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Products Breakdown

(shoe) Platforms

The (shoe) platform will be a molded structure designed to clip onto ones shoes: its designed features aimed

at complementing the overall shape of the shoe. A range of official accessories could be produced on a quarter-

year basis. The framework for such community-designed accessories would include a regular design competi-

tion where submission is done through an online platform, much similar to Apparel Sites like.com.

Customization and Personalization

With our shoe brackets and other shoe accessories, customers will be able to decide for themselves how they

want their shoes to look. However, that is not all.

For every shoe bracket purchased, customers will have the option of personalizing it. Their names, nicknames

etc. can be carved onto the shoe brackets, to give our customers even more of a personal identity.

Depending on the type of shoe, we will also offer customization of the shoe brackets. As such, shoe brackets

can come in different shapes and sizes all up to the customers discretion.




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(shoe) Accessories

Our designers will design shoe accessories for both sexes. We will take into account the preferences of each

sex and come up with trendy designs that will attract potential customers into buying our products. Through

consumers feedback, we will also be able to have a clearer idea of what customers want and hope to see in

our new designs.

The First Movers Advantage will allow us to establish a market for shoe accessories and we will be able to focuson establishing our brand, build a strong rapport with our customers. Feedback from customers will also be

taken into account when we develop new products. Our first movers advantage, solid marketing plans and

product differentiation will ensure that our business plan will be a success.

Range of Sh e Accessories

Mens Shoe Accessories Unisex Womens Shoe Accessories

Theme Functionality Theme Theme

Metallic: Recently the fad among

teenage males is to wear lots of

metal accessories, as it portrays apunk outlook and a sense of

identity. As such, one of our prod-

ucts will include shoe chains that

can be attached to the brackets.

For consumers

who go for practi-

cality rather thandesign, our

product range will

offer shoe acces-

sories such as a

Distance Tracker,

where joggers can

keep track of the

distance and time

they have ran, as

well as mini-

(shoe)TM

pockets to keep

money, house or

car keys, etc.

3D Paste-On:

Cartoon charac-

ters, symbols andicons can be made

into accessories

and be attached to

the shoe.

Consumers can

also change the

type of Paste-On

they want anytime.

As customers will

have an array of

designs to choose

from and given the

flexibility of such a

product, customer

satisfaction can be

guaranteed.

Jewellery: Through market re-

search we found out that many pairs

of women shoes are designed withaccessories that are permanently

attached to it. However our acces-

sories for womens shoes will include

a greater array of jewellery beads,

shoe straps.




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Market Research

CUSTOMER PROFILING

In our project, we have identified two main groups of customers whose needs we will be catering to.

Male Youths (Aged 14 - 25)

Firstly, we intend to target male youths within an age range of 14 to 25 years. With these youths comprising ap-

proximately 14% (493,524) of Singapores population (according to the General Household Survey 2005), we

believe that there is a huge customer market which we can tap into and sell our products. Furthermore, these

youths will usually own at least one basic pair of converse shoes, if not more, for everyday use. Thus, our idea of

selling (shoe) platforms and other accessories, designed especially to complement converse shoes, is very

much feasible and marketable.

Moreover, very often, such youths are impressionistic and tend to work towards projecting a cool image. They

long to be trendsetters and our products offer them just the way to achieve that goal. With youths placing

greater emphasis on fashion products and originality in style, our signature (shoe) platforms in their striking

design and colours, along with the customizable accessories that can go along with it, will most definitely be

attractive to these youths. In addition, our (shoe) platforms and accessories can be used as avenues for

youths to openly declare their support for certain groups [e.g. schools, CCAs, football teams, bands, idols, etc.].

Therefore, the transferability and attractive features of our products, as well as the concept of how our accesso-

ries can potentially be used up to the creativity of the youths, will greatly increase the appeal of our products to

youths.

Female Youths (Aged 15-34)

Secondly, we intend to target women with an age range of 15 to 34 years. According to the General Household

Survey 2005, such women in Singapore comprise approximately another 14% (486,839) of Singapores popula-

tion. Since every woman should own at least a few pairs of heels, women ranging from students to careerwomen alike, will find our shoe accessories, which they can mix, match and wear on the straps of their heels,

very attractive.

Furthermore, simple accessories work wonders to spicing up any outfit and are key to making women feel

unique and good about themselves. Also, women, generally being compulsive shoppers, will be taken away and

attracted by our large and colourful array of accessories and thus, urged to buy them. As such, women will

make up a large proportion of customers who are willing and able to buy our products. Moreover, our accesso-

ries can be used in many different ways [e.g. ribbons can be used to strap sandals to feet], and will set apart

women who are creative, original and up for revolutionizing the way heels and accessories are worn.




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By marketing our products as must-haves, our target customers - youths and women will be compelled to buy

our products. The transferability and eye-catching designs of our products serve to appeal to the spending na-

ture of our customers and the innovative aspect of using our products in any way customers want makes our

products all the more attractive and popular. Expanding our business to sell our (shoe) platforms and acces-

sories overseas is highly plausible due to the aforementioned reasons and also because converse shoes are in

high demand everywhere and heels are a must for almost every working woman.




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Environmental Analysis

Internal Analysis

Strengths

Advantageous Access to Key Distribution Channels

By positioning our products with Converse shoes, (shoe)TM accessories will be seen as fashionable items com-

plementary to Converse shoes. Due to the high appeal of Converse products with our target consumer group

(i.e. youths), (shoe)TM accessories will have a permanent competitive advantage over other firms in the industry.

Low Startup Cost

With a few basic designs and a moderate quantity of (shoe)TM accessories produced on top of the standard

operating costs, our firm can comfortably enter the market without involving a high investment. This also allows

our firm to break even early (estimated to be in Year 1, 2nd Quarter).

High Profit Margin

As we are entering into a niche market and (shoe)TM accessories are marketed as companions to popular and

stylish footwear, our products can be priced well above the cost of production, earning us a high profit margin.

Transferability

Since Converse shoes are largely similar in shape and the features of heels are generally similar (straps at the

side and occasionally in the front), (shoe)TM accessories can be transferred between shoes, or mixed and

matched. This allows consumers space for creativity, which increases the appeal of our products for a Do-it-

Yourself generation like our target consumer group.

Timelessness

Converse shoes have stood the test of time, while heels is likely to stay as a necessity for women. The timeless-

ness of footwear ensures a long market life span and sustainable demand for (shoe)TM accessories.




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Weaknesses

Lack of Patent Protection

A lack of patent protection before the launch of (shoe)TM accessories in the market renders them vulnerable to

imitations and similar products produced by other firms, which may have a negative impact on sales. This can

however be countered by the USPs our firm has identified for our products and strategy.

Constant Innovation and Market Research Required

Constant improvement and innovation in design is required to keep (shoe)TM accessories on the market. Our

company will therefore need to have a steady supply of designers and possibly Research and Development staff

to ensure sustainability.

Limited Initial Manufacturing Capacity

As a new startup company with limited capital and a need to keep startup costs low, our initial manufacturing

capacity will be restricted and has to be kept small to enable the firm to react quickly to changes in the strategic

environment. However, this will only be of concern for the first three quarters since our firms startup.

Low Customer Awareness

Since this is a niche industry, there will be a severe lack of awareness that (shoe)TM accessories firstly exist, how

they are used and why it should be used. The success of sales during the Introduction stage of our product will

thus heavily rely on our marketing strategies.




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External Analysis

Opportunities

Strategic Alliances with Up-market Brands

With enough capital and a sustained demand, (shoe)TM accessories may then be outsourced to other up-market

brands such as Nike, of which Converse is a subsidiary, and Charles and Keith, a successful local enterprise in

the shoe industry.

Increasing Purchasing Power of Target Consumer Groups

With the increase in the number of career women earning higher incomes, there will be a greater willingness and

ability to purchase fashion items such as (shoe)TM accessories. Similarly, the apparent social trend of an increas-

ing number of spendthrift youths on the streets will create a greater effective demand for (shoe)TM accessories.

Ease of Expansion of Target Consumer Group

Our target consumer group can easily be expanded to include children after successfully capturing the youth

and women market, allowing an increase not only in demand but also the number of product lines to cater to a

wider range of needs, creating a hike in revenue for our firm.

Novelty - First Movers Advantage

The novelty of (shoe)TM accessories will be a major attraction for todays consumers, who are always seeking

new things. As this is a niche industry with little or no competitors, we will be able to monopolize the market for

at least the first quarter since the companys startup.




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Threats

Economic Downturn

The recent and still ongoing economic recession may turn customers away from purchasing (shoe)TM accesso-

ries due to their increased consciousness of their expenditure and of the need to decrease their spending. The

promotional price our firm is launching in the first quarter will thus hope to attract potential customers and mini-

mise the impact of the economic recession.

Surge of New Entrants and Competitors

After our company introduces our products into the market, a surge of new entrants in the industry will create

stiff competition that may cause a significant drop in revenue for our company. New entrants will be attracted to

the industry due to a low startup cost and high profit margin, as well as the high demand that is likely to be gen-

erated. Product differentiation and customer loyalty will thus be important to avoid loss of revenue to rival firms.

Shift in Consumers Tastes From Firms Products

As (shoe)TM accessories are fashion items, tastes and preferences of our consumers play a huge role in deter-

mining its demand and thus the revenue generated by the company. Thus, should consumers tastes shift or

change, our products may be affected. To prevent this from happening, the range of products and product lines

will constantly have to be expanded and extended to cater to consumers fast-changing wants.




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Strategies Developed - SWOT Matrix

Strength-Opportunity Strategies

One key strategy that our firm will employ is to capitalise on the increasing purchasing power of our target con-

sumer groups and the First Movers Advantage as the novel nature and advantageous position of our product

renders it possible for us to enjoy a high profit margin. The transferability of (shoe)TM accessories between shoes

and different sizes of shoes also boosts the ability of our firm expanding to include new consumer groups, with

children being of greatest likelihood. By positioning our product as transferable and sharable between children

and adults, the expansion of our firm will bring in reasonably larger amounts of revenue year-on-year.

Weakness-Opportunity Strategies

To pursue the opportunities ahead of our company, the weaknesses of our product will have to be played down.

Thus, a strong and widespread marketing campaign will be introduced since the day of our product launch, in

order to capture the maximum amount of attention for (shoe)TM accessories and disallowing awareness to hinder

our sales. In addition, when the sales for our products have stabilised and there is enough capital, we will regis-

ter patents for the products, giving the firm greater negotiation power in tying up with more up-market brands.

Strength-Threat Strategies

Though (shoe)TM accessories are fashion items which can easily fluctuate in demand, the timelessness of itscomplementary good (i.e. Converse shoes and heels) guarantees the sustainability of the demand of our prod-

ucts. Furthermore, the advantageous access to Converse by positioning our products with theirs will reduce the

probability of consumers switching to other products.

Weakness-Threat Strategies

A defensive plan will be implemented to prevent the firm's weaknesses from furthering the potential impact of

external threats. This plan will include a strategic and careful introduction of different varieties of products to

consistently keep our customers interested in our products instead of switching to our rivals products, as well

as to invest in Research and Development and a patent as soon as it is viable to retain customers and maintain

our competitive advantage.




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Marketing Strategies

Price Breakdown

Shoe platform - S$9.60/piece for Year 1, 1st Quarter; S$12.00/piece for Year 1, 2nd Quarter onwards

Shoe accessories - S$9.60/piece for Year 1, 1st Quarter; S$12.00/piece for Year 1, 2nd Quarter onwards

Pricing of Products and Sales Breakdown

Our initial pricing model will be to pursue a promotional strategy to maximize our revenue in the short-run; this

would mean starting at a price of SS9.60 for both the platform and accessories for the first quarter of Year 1,

which will be vital in building up a large consumer base and also allowing buyers to serve as our walking adver-

tisements and increase our products popularity by the method of word of mouth marketing. This form of mar-keting is extremely viral, and if our product is good enough the Word of Mouth marketing will be automatically

executed by our customers, effectively acting as our marketing efforts and medium. When the trend has set in

by the end of the first quarter of Year 1, and the public demand for our shoe accessories has increased sub-

stantially, we will stop the promotional discount and price it at SS12.00, maximizing our profits while not com-

promising too much on the consumer number.

Another promotion strategy could be to employ freebie marketing, which will essentially consist of a week where

we give out a fixed quantity of shoe platforms to whoever visits our booth. Being an interrelated good with the

shoe accessories, consumers would naturally be unable to resist the urge to purchase a few accessories after

being given the platform free-of-charge. This method will not cause us to incur too heavy a cost too, since the

production price of the platforms is not high, and will be easily offset by the revenue from selling the accesso-ries, and in fact very likely garner net profits instead. This of courses also helps to promote awareness of our

product, and goes towards building up our consumer base since we can reliably tap on the flocking or herd be-

havior of people in general.

The shoe accessories and platform will be sold separately; however, we plan to have a special package

whereby buyers will get a special discount if they buy the shoe accessories or platform in one purchase from us.

This will encourage them to buy our products as a set and our profits will be greater as compared to selling only

either of the products singly. Joint promotions could also be introduced to get the public interested in our prod-

ucts, possibly even with the shoes sold by the shoe retailers we are co-operating with, which will result in a win-

win situation for both our company and the shoe retailers profits-wise.

Unique Selling Points (USPs)

Consumer-directed products

What our shoe accessories can offer for the customers is defined or decided by the very customers themselves.

Through means such as online submissions of their personal and innovative designs, the customer will truly be

able to have a say in personalizing the type of shoe accessories and ultimately the type of shoe that they wear.

Novelty (First Movers Advantage)

Our other USP is that, being the first of our kind in the industry to sell such products, we have an obvious ad-

vantage of being able to monopolise the market with our products for at least the first quarter; the novelty will




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keep consumers coming and will be sustainable since our products are consumer-directed, and new designs

and products are being churned out by the consumers themselves at a consistent rate periodically.

Marketing Strategies

Our company will adopt integrated direct marketing, which involves using carefully coordinated multi-stage

campaigns. The different forms that we will be employing include:

I. Online Marketing

II. Telemarketing

III. Catalogue Marketing

Online Marketing

This form of marketing could be done in partnership with the shoe retailers that our company is liaising with (that

is, we put up our advertisements on their websites), or we could set up a website of our own. Public awareness

of our website will be spread via existing communication networks such as Facebook, Friendster, blogs and e-

mail.

Besides the usual product information and details, we will also include a unique feature on our websitewhich

is an online competition for accessory designs. This is not only our unique selling point, but also serves as an

effective mode of marketing at the same time. The incentives of winning the competition will aid us in increasing

public awareness of our product as people will be motivated to get their friends together and come up with a

winning design.

Affiliate programs can also be used, which allows us to take advantage of the speed and extent at which our

marketing message can be dispersed to people across the globe or country. It also allows our company to track

and analyse the effectiveness of our online marketing campaigns and allow us to make changes where neces-

sary.

Our company will employ online marketing as its focus in Year 1. This is due to its cheap cost, its speed and its

viral characteristics, which aid us in increasing public awareness of our product as much and as fast as possi-

ble, on top of the advantage of requiring minimal resources or capital.

Telemarketing

Telemarketing now accounts for more than 39% of all direct-marketing media expenditures and 35% of direct-

marketing sales. As such, telemarketing is an extremely powerful marketing tool which will help us to under-

stand the wants and needs of our corporate customers.

As telemarketing is cost-prohibitive, especially for our company which starts out as a small-scale company, we

will only adopt telemarketing in Year 2 onwards. That is when we will have sufficient capital to finance and sus-

tain telemarketing efforts for the consecutive years. If our finances are able to support it, we could even incorpo-

rate celebrity branding for our products.

The telemarketing could be initiated in co-operation with the shoe retailers that our company is liaising with (that

is, we advertise our shoe accessories along with their shoes in one advertisement). Alternatively, our company

could launch our own advertisement when we set up our own specialty store.




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Catalogue Marketing

We will include all the necessary information about our shoe accessories in an online catalogue. This information

includes illustrations, detailed descriptions, miscellaneous information such as the range of colors offered and

the price. If customers should request, we will send them a copy of the catalogue. Otherwise, the existence of

the catalogue will be advertised via our other methods of marketing. We could again partner up with the shoe

retailers that we are selling our accessories in collaboration with to create a combined catalogue, which will go

towards boosting our relationship with the retailers.

A hard copy of the catalogue, which will be printed on recycled paper as part of our environmental efforts, could

be created in Year 2 onwards, where our profit greatly increases and we have more funds to channel towards

advertising. This catalogue will be given out to our targeted consumer groups from the public, by channels such

as mailboxes, firms, and schools.

Our reasons for adopting these 3 types of marketing are as follows:

Maximize Outreach

Almost anyone gets in touch with the media. For those who are not so technologically-savvy or used to watch-

ing television or using the internet, the catalogues will find their way into these peoples lives through their mails.




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Sustainabil ity Plan

Timeframe

As a small startup company, we recognize the need to maintain` public interest and market demand over a pre-

longed. The following timeline denotes the future prospects for our company over the next 5 years.

5 Years

Year 1

1st half of Year 1: Launch full-fledged marketing itiative and focus on viral marketing to ensure maximum out-

reach. We will also be coming up with new shoe accessories over the first 6 months, while testing out the con-

sumers response and feedback to our shoe accessories.

2nd half of Year 1: Continue to get feedback from consumers on how our shoe accessories can be improved to

meet their preference. Through their feedback we will be able to adjust our pricing strategies and improve on

our designs should there be a need to.

Year 2

1st half of Year 2: Now that we broke even and have reached out to a large audience, we will be on the lookout

for imitations of our product. While doing so, we will continue to develop shoe accessories and improve on our

marketing efforts. Additionally, we will outsource our product to include Nike shoes.

2nd half of Year 2: Expand to include different brands of footwear. At the same time, we will also be researching

and developing different accessories for different types of footwear. After which, we will test the market re-sponse to our new products and make any necessary changes.

Year 3

1st half of Year 3: Launch our new products and work on intense marketing for our new and existing products.

Through the launch of our new products, we will be able to review existing products and improve on our com-

pany, marketing, product and marketing structures. We will also begin to offer loyalty benefits to our customers.

2nd half of Year 3: We will set up an office and open our own shoe accessories shop. Now that we operate on

our own, we will have to step up on our marketing strategies.

Year 4

1st half of Year 4: Constantly review feedback from the consumers, review existing products and come up with

more designs and accessories.

2nd half of Year 4: Set up branch stores all over Singapore.

Year 5

1st half of Year 5: Set up branch stores in Malaysia or Inter-national markets

2nd half of Year 5: Explore other viable options for expansion




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Measurable Key Performance Indicators (KPIs)

In order to keep up with and increase sales volume, it is mandatory that we conduct surveys and market re-

search to find out what our customers want and think about our service and product. As such, we will adopt the

following KPIs:

Consumer Written and Verbal Feedback

Through comments from our customers, we will be able to find out more about how they feel about our product

and the kind of change they might want to see (eg. Specific accessories/designs they would like to see, cus-

tomer loyalty schemes). We will carefully assess the feedback and respond accordingly to better cater to the

wants of our consumers, thereby maintaining, if not increasing, sales volume.

Market Survey

A market survey will enable us to find out the different types of shoe accessories that may be present in the

market and different fashion trends. Through this we will be able to find out more about current fashion trends

and develop appropriate accessories that will meet the preferences of a large group of consumers.

Quantitative Reviews of Sales Volume

With the passing of each quarter or after the implementation of new schemes or products, we will review our

sales volume to gauge the effectiveness of our new schemes or products. Should sales volume be unfavourable

or not up to expectations, we will reanalyse our existing infrastructure and develop appropriate measures to re-

turn sales volume to normal levels and recapture our market share.




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Risk Assessment

The Risk Assessment was carried out with a systematic thought process, encompassing an evaluation of our

firms response to the scenario of a) Existing Market, Existing Product, b) Existing Market, New Product, c) New

Market, Existing Product and d) New Market, New Product.

The risks that the firm takes in pursuing growth opportunities involve a number of factors that would evaluated

through a Cost-Benefit Analysis. A key strength of our venture would lie in its advantageous access to key dis-

tribution channels, thereby bolstering confidence in expansion efforts beyond the existing market and the exist-

ing product.




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Commercial Viabil ity

Overview

The commercial viability of our firm is demonstrated in the following sections: our market survey and the proc-

essed statistics of our survey results, as well as our projected income for the first 5 years of our firm.

Market Survey Statistics

Product Viability

Figure 1 below suggests the popularity of Converse shoes with male youths, our first target consumer group.

Out of the 299 surveyed, all owned at least 1 pair and the average youth 2 pairs of Converse shoes. The

average number of pairs owned by youths in each age group decreases down the age group, which can be

attributed to the impressionistic and lackadaisical spending nature of younger male youths. The viability of our

products, which complement Converse shoes, is hence justified as the consumer base includes all male youths

and is shown to cater more to the younger youths who tend to spend more on products they perceive as cool.

Figure 1. Graph representing number of pairs of converse shoes owned by male youths aged 14-25

Figure 2 projects the popuarity of heels with our second target consumer group - women. Out of the 339

surveyed, all owned at least 1 pair and the average woman 4 pairs of heels. The average number of pairs

owned by women in each age group increases down the age group. This increase is accompanied by the rise in

purchasing power of the women who are older. Hence, the viability of our products, which complement heels, is

justified as the consumer base includes all women and there is a larger need for our products as womenspurchasing power increases.




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Figure 2. Graph representing number of pairs of heels owned by women aged 15-34

Product Potential

Figure 3 represents the number of male youths willing to purchase our products. 79.3% of male youths sur-

veyed indicated interest and willingness to purchase our products while only 12.4% indicated disinterest. The

remaining 8.4% of male youths were unsure as to whether or not to purchase our products if given the choice.

Hence, there is huge potential in the sale of our products to male youths. With the employment of marketing

strategies, we believe that those unsure of or disinterested in our products would find our products appealingand attractive.

Figure 3. Graph representing number of male youths willing to purchase our products (%)




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Figure 4 represents the number of women willing to purchase our products. 86.1% of women surveyed indi-

cated interest and willingness to purchase our products while only 3.8% indicated disinterest. The remaining

10.0% of women were unsure as to whether or not to purchase our products if given the choice. Hence, there is

huge potential in the sale of our products to women. With the employment of marketing strategies, we believe

that those unsure of or disinterested in our products would find our products appealing and attractive.

Figure 4. Graph representing number of women willing to purchase our products (%)

Price Range

Figure 5 represents the preferred price range of our products by male youths. As expected, many youths

(85.7%) found the lowest given price range of $8-$10 preferable. This is compared to 78.1% for $11-$13 and

56.1% for $14-$16. With the percentage of youths indicating preferable decreasing at an increasing rate as

price increases beeyond $13, a price range of $11-$13 would be best for profit maximisation on our part, while

ensuring that our customers will largely not be deterred by the high prices of our products.




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Figure 5. Graph representing preferred price range of products for male youths

Figure 6 represents the preferred price range of our products by women. 89.7% of women found the lowest

given price range of $8-$10 preferable. This is compared to 84.9% for $11-$13 and 77.1% for $14-$16.

Similarly, with the percentage of women indicating preferable decreasing at an increasing rate as price

increases beeyond $13, a price range of $11-$13 would be best for profit maximisation on our part, while

ensuring that our customers will largely not be deterred by the high prices of our products.

Figure 6. Graph representing preferred price range of products for women




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Financials: Statement of Forecasted Cash Flows

Fiscal Year End (SGD) 1 2 3 4 5

Revenues 54412.80 157152.00 261504.00 344640.00 416928.00

Shoe platforms 33504.00 95160.00 152520.00 192480.00 241920.00

20% revenue sharing to Converse 6700.80 19032.00 30504.00 38496.00 48384.00

Shoe accessories 34512.00 101280.00 174360.00 238320.00 279240.00

20% revenue sharing to partner companies 6902.40 20256.00 34872.00 47664.00 55848.00

Cost of Goods Sold 3089.00 8658.00 14528.50 19325.00 23189.50

Shoe platforms 1152.00 3172.00 5084.00 6416.00 8064.00

Shoe accessories 1937.00 5486.00 9444.50 12909.00 15125.50

Gross Profit 51323.80 148494.00 246975.50 325315.00 393738.50

Operating Expenses 13800.00 14860.00 15950.00 16810.00 17550.00

Shipping/Transport Cost 600.00 1660.00 2750.00 3610.00 4350.00

Pushcart Rental 13200.00 13200.00 13200.00 13200.00 13200.00Selling, General, and Administrative Expenses 2569.00 3504.00 1504.00 1504.00 1504.00

Official Site Hosting 504.00 504.00 504.00 504.00 504.00

General Marketing and Publicity 2000.00 3000.00 1000.00 1000.00 1000.00

Company Registration 65.00 0.00 0.00 0.00 0.00

Other Expenses 18375.00 108000.00 108000.00 126000.00 126000.00

Trademark Registration 375.00 0.00 0.00 0.00 0.00

Salaries for In-house Designers 18000.00 18000.00 18000.00 36000.00 36000.00

Salaries for Employees 0.00 90000.00 90000.00 90000.00 90000.00

Operating Profit / Earnings before Taxes 16579.80 22130.00 121521.50 181001.00 248684.50Income Taxes 0.00 0.00 10936.94 16290.09 22381.61

Net Income 16579.80 22130.00 110584.57 164710.91 226302.90

Year 1 Fiscal Term End (SGD) 1 2 3 4

Revenues 7372.80 13632.00 16320.00 17088.00

Shoe platforms 4224.00 8760.00 10320.00 10200.00

20% revenue sharing to Converse 844.80 1752.00 2064.00 2040.00

Shoe accessories 4992.00 8280.00 10080.00 11160.00

20% revenue sharing to partner companies 998.40 1656.00 2016.00 2232.00

Cost of Goods Sold 514.00 740.50 890.00 944.50

Shoe platforms 176.00 292.00 344.00 340.00


Gross Profit 6858.80 12891.50 15430.00 16143.50

Operating Expenses 3400.00 3450.00 3470.00 3480.00

Shipping/Transport Cost 100.00 150.00 170.00 180.00

Pushcart Rental 3300.00 3300.00 3300.00 3300.00

Selling, General, and Administrative Expenses 791.00 726.00 526.00 526.00

Official Site Hosting 126.00 126.00 126.00 126.00




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General Marketing and Publicity 600.00 600.00 400.00 400.00

Company Registration 65.00 0.00 0.00 0.00

Other Expenses 4875.00 4500.00 4500.00 4500.00

Trademark Registration 375.00 0.00 0.00 0.00

Salaries for In-house Designers 4500.00 4500.00 4500.00 4500.00

Salaries for Employees 0.00 0.00 0.00 0.00

Operating Profit / Earnings before Taxes -2207.20 4215.50 6934.00 7637.50


Revenues 21216.00 33504.00 48096.00 54336.00

Shoe platforms 13440.00 18720.00 26880.00 36120.00





Shoe platforms 448.00 624.00 896.00 1204.00


Gross Profit 20059.50 31625.50 45399.50 51409.50



Pushcart Rental 3300.00 3300.00 3300.00 3300.00


Official Site Hosting 126.00 126.00 126.00 126.00General Marketing and Publicity 750.00 750.00 750.00 750.00

Other Expenses 27000.00 27000.00 27000.00 27000.00



Operating Profit / Earnings before Taxes -11346.50 99.50 13713.50 19663.50

* Salaries for Employees start Year 2


Revenues 56256.00 61536.00 67680.00 76032.00

Shoe platforms 35280.00 36600.00 38160.00 42480.00





Shoe platforms 1176.00 1220.00 1272.00 1416.00


Gross Profit 53182.00 58132.00 63892.50 71769.00






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Pushcart Rental 3300.00 3300.00 3300.00 3300.00




Other Expenses 27000.00 27000.00 27000.00 27000.00



Operating Profit / Earnings before Taxes 21916.00 26806.00 32506.50 40293.00


Revenues 82080.00 84768.00 86880.00 90912.00

Shoe platforms 45480.00 46920.00 48840.00 51240.00





Shoe platforms 1516.00 1564.00 1628.00 1708.00


Gross Profit 77470.00 80006.00 82015.00 85824.00



Pushcart Rental 3300.00 3300.00 3300.00 3300.00

Selling, General, and Administrative Expenses 376.00 376.00 376.00 376.00Official Site Hosting 126.00 126.00 126.00 126.00


Other Expenses 31500.00 31500.00 31500.00 31500.00





Revenues 95616.00 100800.00 106272.00 114240.00

Shoe platforms 55440.00 58680.00 61320.00 66480.00





Shoe platforms 1848.00 1956.00 2044.00 2216.00


Gross Profit 90297.00 95197.50 100354.00 107890.00





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Pushcart Rental 3300.00 3300.00 3300.00 3300.00




Other Expenses 31500.00 31500.00 31500.00 31500.00





Documents

Giis Report Submission [Rijc Shoes]