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Rafes Institution (Junior College) Entrepreneurs Network

(shoe) TM ENTREPRENEURSHIP PLAN

Rafes Institution (Junior College) One Rafes Institution Lane Singapore 575954 T (65) 6419 9888 F (65) 6419 9898 rjc@moe.edu.sg www.rjc.edu.sg

Rafes Institution (Junior College)

ABSTRACT
The Idea
We live in a world that constantly seeks individual expression and customization. To ll 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 dene their footwear 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. We uphold a rm philosophy of providing our customers with a voice in what they wear; we believe fashion should be self-determined and a reection of ones creativity and personality. Thus, (shoe)TM accessories are largely kept as consumer-directed products. A signicant portion of the accessories 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 outts, 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 rm reaches SME status.

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Table of Contents
Product Information
Overview Products Breakdown (shoe) Platforms Customization and Personalization (shoe) Accessories

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Market Research
CUSTOMER PROFILING Male Youths (Aged 14 - 25) Female Youths (Aged 15-34)

Environmental Analysis
Internal Analysis Strengths Advantageous Access to Key Distribution Channels Low Startup Cost High Prot Margin Transferability Timelessness Weaknesses Lack of Patent Protection Constant Innovation and Market Research Required Limited Initial Manufacturing Capacity Low Customer Awareness

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External Analysis Opportunities Strategic Alliances with Up-market Brands Increasing Purchasing Power of Target Consumer Groups Ease of Expansion of Target Consumer Group Novelty - First Movers Advantage Threats Economic Downturn Surge of New Entrants and Competitors Shift in Consumers Tastes From Firms Products Strategies Developed - SWOT Matrix Strength-Opportunity Strategies Weakness-Opportunity Strategies Strength-Threat Strategies Weakness-Threat Strategies

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Marketing Strategies
Price Breakdown Pricing of Products and Sales Breakdown Unique Selling Points (USPs) Consumer-directed products Novelty (First Movers Advantage) Marketing Strategies Online Marketing Telemarketing Catalogue Marketing

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Maximize Outreach

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Sustainability Plan
Timeframe Year 1 Year 3 Measurable Key Performance Indicators (KPIs) Consumer Written and Verbal Feedback Market Survey Quantitative Reviews of Sales Volume Risk Assessment

Commercial Viability
Overview Market Survey Statistics Product Viability Product Potential Price Range Financials: Statement of Forecasted Cash Flows

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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 identied 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 ow 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 dene 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 ofcial accessories could be produced on a quarteryear basis. The framework for such community-designed accessories would include a regular design competition 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 focus on 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 rst movers advantage, solid marketing plans and product differentiation will ensure that our business plan will be a success. Range of Shoe Accessories Mens Shoe Accessories Theme Metallic: Recently the fad among teenage males is to wear lots of metal accessories, as it portrays a punk outlook and a sense of identity. As such, one of our products will include shoe chains that can be attached to the brackets. Unisex Functionality Theme Womens Shoe Accessories Theme

For consumers 3D Paste-On: Jewellery: Through market rewho go for practi- Cartoon charac- search we found out that many pairs cality rather than ters, symbols and of women shoes are designed with design, our icons can be made accessories that are permanently product range will into accessories attached to it. However our accesoffer shoe acces- and be attached to sories for womens shoes will include sories such as a the shoe. a greater array of jewellery beads, Distance Tracker, Consumers can shoe straps. where joggers can also change the keep track of the type of Paste-On distance and time they want anytime. they have ran, as As customers will well as minihave an array of (shoe)TM designs to choose pockets to keep from and given the money, house or exibility of such a car keys, etc. product, customer satisfaction can be guaranteed.

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Market Research
CUSTOMER PROFILING
In our project, we have identied 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 approximately 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 denitely 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 accessories 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 population. Since every woman should own at least a few pairs of heels, women ranging from students to career women alike, will nd 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 outt 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 accessories 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 nature 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 accessories 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 complementary 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 rms 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 rm can comfortably enter the market without involving a high investment. This also allows our rm to break even early (estimated to be in Year 1, 2nd Quarter).

High Prot 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 prot 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-itYourself 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 timelessness 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 rms, which may have a negative impact on sales. This can however be countered by the USPs our rm has identied 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 rm to react quickly to changes in the strategic environment. However, this will only be of concern for the rst three quarters since our rms startup.

Low Customer Awareness


Since this is a niche industry, there will be a severe lack of awareness that (shoe)TM accessories rstly 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 increasing 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 rm.

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 rst 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 accessories due to their increased consciousness of their expenditure and of the need to decrease their spending. The promotional price our rm is launching in the rst quarter will thus hope to attract potential customers and minimise 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 signicant drop in revenue for our company. New entrants will be attracted to the industry due to a low startup cost and high prot margin, as well as the high demand that is likely to be generated. Product differentiation and customer loyalty will thus be important to avoid loss of revenue to rival rms.

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 determining 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 rm will employ is to capitalise on the increasing purchasing power of our target consumer 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 prot margin. The transferability of (shoe)TM accessories between shoes and different sizes of shoes also boosts the ability of our rm 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 rm 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 register patents for the products, giving the rm greater negotiation power in tying up with more up-market brands.

Strength-Threat Strategies
Though (shoe)TM accessories are fashion items which can easily uctuate in demand, the timelessness of its complementary good (i.e. Converse shoes and heels) guarantees the sustainability of the demand of our products. 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 rm'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 rst quarter of Year 1, which will be vital in building up a large consumer base and also allowing buyers to serve as our walking advertisements and increase our products popularity by the method of word of mouth marketing. This form of marketing 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 rst quarter of Year 1, and the public demand for our shoe accessories has increased substantially, we will stop the promotional discount and price it at SS12.00, maximizing our prots while not compromising 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 xed 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 accessories, and in fact very likely garner net prots 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 ocking or herd behavior 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 prots 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 products, possibly even with the shoes sold by the shoe retailers we are co-operating with, which will result in a winwin situation for both our company and the shoe retailers prots-wise.

Unique Selling Points (USPs)


Consumer-directed products
What our shoe accessories can offer for the customers is dened 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 rst of our kind in the industry to sell such products, we have an obvious advantage of being able to monopolise the market with our products for at least the rst 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. II. III. Online Marketing Telemarketing 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 email. 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. Afliate 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 necessary. 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 possible, 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 directmarketing sales. As such, telemarketing is an extremely powerful marketing tool which will help us to understand 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 sufcient capital to nance and sustain telemarketing efforts for the consecutive years. If our nances are able to support it, we could even incorporate 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 prot 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, rms, 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 watching television or using the internet, the catalogues will nd their way into these peoples lives through their mails.

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Sustainability Plan
Timeframe
As a small startup company, we recognize the need to maintain` public interest and market demand over a prelonged. 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-edged marketing itiative and focus on viral marketing to ensure maximum outreach. We will also be coming up with new shoe accessories over the rst 6 months, while testing out the consumers 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 response 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 company, marketing, product and marketing structures. We will also begin to offer loyalty benets to our customers. 2nd half of Year 3: We will set up an ofce 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 research to nd 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 nd out more about how they feel about our product and the kind of change they might want to see (eg. Specic accessories/designs they would like to see, customer 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 nd 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 nd 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 return 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 rms 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 rm takes in pursuing growth opportunities involve a number of factors that would evaluated through a Cost-Benet Analysis. A key strength of our venture would lie in its advantageous access to key distribution channels, thereby bolstering condence in expansion efforts beyond the existing market and the existing product.

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Commercial Viability
Overview
The commercial viability of our rm is demonstrated in the following sections: our market survey and the processed statistics of our survey results, as well as our projected income for the rst 5 years of our rm.

Market Survey Statistics


Product Viability
Figure 1 below suggests the popularity of Converse shoes with male youths, our rst 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 justied 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 justied as the consumer base includes all women and there is a larger need for our products as womens purchasing 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 surveyed 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 nd our products appealing and attractive.

Figure 3. Graph representing number of male youths willing to purchase our products (%) GIIS - TIE Competition 2009 22

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Figure 4 represents the number of women willing to purchase our products. 86.1% of women surveyed indicated 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 nd 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 prot 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 prot 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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Rafes Institution (Junior College)

Financials: Statement of Forecasted Cash Flows


Fiscal Year End (SGD) Revenues Shoe platforms 20% revenue sharing to Converse Shoe accessories 20% revenue sharing to partner companies Cost of Goods Sold Shoe platforms Shoe accessories Gross Prot Operating Expenses Shipping/Transport Cost Pushcart Rental Selling, General, and Administrative Expenses Ofcial Site Hosting General Marketing and Publicity Company Registration Other Expenses Trademark Registration Salaries for In-house Designers Salaries for Employees Operating Prot / Earnings before Taxes Income Taxes Net Income Year 1 Fiscal Term End (SGD) Revenues Shoe platforms 20% revenue sharing to Converse Shoe accessories 20% revenue sharing to partner companies Cost of Goods Sold Shoe platforms Shoe accessories Gross Prot Operating Expenses Shipping/Transport Cost Pushcart Rental Selling, General, and Administrative Expenses Ofcial Site Hosting 1 2 3 4 5 54412.80 157152.00 261504.00 344640.00 416928.00 33504.00 95160.00 6700.80 6902.40 3089.00 1152.00 1937.00 19032.00 20256.00 8658.00 3172.00 5486.00 152520.00 192480.00 241920.00 30504.00 34872.00 14528.50 5084.00 9444.50 15950.00 2750.00 13200.00 1504.00 504.00 1000.00 0.00 0.00 18000.00 90000.00 10936.94 38496.00 47664.00 19325.00 6416.00 12909.00 16810.00 3610.00 13200.00 1504.00 504.00 1000.00 0.00 0.00 36000.00 90000.00 16290.09 48384.00 55848.00 23189.50 8064.00 15125.50 17550.00 4350.00 13200.00 1504.00 504.00 1000.00 0.00 0.00 36000.00 90000.00 22381.61

34512.00 101280.00 174360.00 238320.00 279240.00

51323.80 148494.00 246975.50 325315.00 393738.50 13800.00 14860.00 600.00 2569.00 504.00 2000.00 65.00 375.00 0.00 0.00 1660.00 3504.00 504.00 3000.00 0.00 0.00 90000.00 0.00 13200.00 13200.00

18375.00 108000.00 108000.00 126000.00 126000.00 18000.00 18000.00 16579.80 22130.00 16579.80 22130.00 1 7372.80 4224.00 844.80 4992.00 998.40 514.00 176.00 338.00 6858.80 3400.00 100.00 3300.00 791.00 126.00 2 13632.00 8760.00 1752.00 8280.00 1656.00 740.50 292.00 448.50 12891.50 3450.00 150.00 3300.00 726.00 126.00

121521.50 181001.00 248684.50 110584.57 164710.91 226302.90 3 16320.00 10320.00 2064.00 10080.00 2016.00 890.00 344.00 546.00 15430.00 3470.00 170.00 3300.00 526.00 126.00 4 17088.00 10200.00 2040.00 11160.00 2232.00 944.50 340.00 604.50 16143.50 3480.00 180.00 3300.00 526.00 126.00

GIIS - TIE Competition 2009

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Rafes Institution (Junior College)

General Marketing and Publicity Company Registration Other Expenses Trademark Registration Salaries for In-house Designers Salaries for Employees Operating Prot / Earnings before Taxes Year 2 Fiscal Term End (SGD) Revenues Shoe platforms 20% revenue sharing to Converse Shoe accessories 20% revenue sharing to partner companies Cost of Goods Sold Shoe platforms Shoe accessories Gross Prot Operating Expenses Shipping/Transport Cost Pushcart Rental Selling, General, and Administrative Expenses Ofcial Site Hosting General Marketing and Publicity Other Expenses Salaries for In-house Designers Salaries for Employees Operating Prot / Earnings before Taxes * Salaries for Employees start Year 2 Year 3 Fiscal Term End (SGD) Revenues Shoe platforms 20% revenue sharing to Converse Shoe accessories 20% revenue sharing to partner companies Cost of Goods Sold Shoe platforms Shoe accessories Gross Prot Operating Expenses Shipping/Transport Cost

600.00 65.00 4875.00 375.00 4500.00 0.00 -2207.20 1 21216.00 13440.00 2688.00 13080.00 2616.00 1156.50 448.00 708.50 20059.50 3530.00 230.00 3300.00 876.00 126.00 750.00 27000.00 4500.00 22500.00 -11346.50 1 56256.00 35280.00 7056.00 35040.00 7008.00 3074.00 1176.00 1898.00 53182.00 3890.00 590.00

600.00 0.00 4500.00 0.00 4500.00 0.00 4215.50 2 33504.00 18720.00 3744.00 23160.00 4632.00 1878.50 624.00 1254.50 31625.50 3650.00 350.00 3300.00 876.00 126.00 750.00 27000.00 4500.00 22500.00 99.50 2 61536.00 36600.00 7320.00 40320.00 8064.00 3404.00 1220.00 2184.00 58132.00 3950.00 650.00

400.00 0.00 4500.00 0.00 4500.00 0.00 6934.00 3 48096.00 26880.00 5376.00 33240.00 6648.00 2696.50 896.00 1800.50 45399.50 3810.00 510.00 3300.00 876.00 126.00 750.00 27000.00 4500.00 22500.00 13713.50 3 67680.00 38160.00 7632.00 46440.00 9288.00 3787.50 1272.00 2515.50 63892.50 4010.00 710.00

400.00 0.00 4500.00 0.00 4500.00 0.00 7637.50 4 54336.00 36120.00 7224.00 31800.00 6360.00 2926.50 1204.00 1722.50 51409.50 3870.00 570.00 3300.00 876.00 126.00 750.00 27000.00 4500.00 22500.00 19663.50 4 76032.00 42480.00 8496.00 52560.00 10512.00 4263.00 1416.00 2847.00 71769.00 4100.00 800.00

GIIS - TIE Competition 2009

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Rafes Institution (Junior College)

Pushcart Rental Selling, General, and Administrative Expenses Ofcial Site Hosting General Marketing and Publicity Other Expenses Salaries for In-house Designers Salaries for Employees Operating Prot / Earnings before Taxes Year 4 Fiscal Term End (SGD) Revenues Shoe platforms 20% revenue sharing to Converse Shoe accessories 20% revenue sharing to partner companies Cost of Goods Sold Shoe platforms Shoe accessories Gross Prot Operating Expenses Shipping/Transport Cost Pushcart Rental Selling, General, and Administrative Expenses Ofcial Site Hosting General Marketing and Publicity Other Expenses Salaries for In-house Designers Salaries for Employees Operating Prot / Earnings before Taxes Year 5 Fiscal Term End (SGD) Revenues Shoe platforms 20% revenue sharing to Converse Shoe accessories 20% revenue sharing to partner companies Cost of Goods Sold Shoe platforms Shoe accessories Gross Prot Operating Expenses

3300.00 376.00 126.00 250.00 27000.00 4500.00 22500.00 21916.00 1 82080.00 45480.00 9096.00 57120.00 11424.00 4610.00 1516.00 3094.00 77470.00 4160.00 860.00 3300.00 376.00 126.00 250.00 31500.00 9000.00 22500.00 41434.00 1 95616.00 55440.00 11088.00 64080.00 12816.00 5319.00 1848.00 3471.00 90297.00 4300.00

3300.00 376.00 126.00 250.00 27000.00 4500.00 22500.00 26806.00 2 84768.00 46920.00 9384.00 59040.00 11808.00 4762.00 1564.00 3198.00 80006.00 4190.00 890.00 3300.00 376.00 126.00 250.00 31500.00 9000.00 22500.00 43940.00 2 58680.00 11736.00 67320.00 13464.00 5602.50 1956.00 3646.50 95197.50 4350.00

3300.00 376.00 126.00 250.00 27000.00 4500.00 22500.00 32506.50 3 86880.00 48840.00 9768.00 59760.00 11952.00 4865.00 1628.00 3237.00 82015.00 4210.00 910.00 3300.00 376.00 126.00 250.00 31500.00 9000.00 22500.00 45929.00 3 61320.00 12264.00 71520.00 14304.00 5918.00 2044.00 3874.00 4410.00

3300.00 376.00 126.00 250.00 27000.00 4500.00 22500.00 40293.00 4 90912.00 51240.00 10248.00 62400.00 12480.00 5088.00 1708.00 3380.00 85824.00 4250.00 950.00 3300.00 376.00 126.00 250.00 31500.00 9000.00 22500.00 49698.00 4 66480.00 13296.00 76320.00 15264.00 6350.00 2216.00 4134.00 4490.00

100800.00 106272.00 114240.00

100354.00 107890.00

GIIS - TIE Competition 2009

27

Rafes Institution (Junior College)

Shipping/Transport Cost Pushcart Rental Selling, General, and Administrative Expenses Ofcial Site Hosting General Marketing and Publicity Other Expenses Salaries for In-house Designers Salaries for Employees Operating Prot / Earnings before Taxes

1000.00 3300.00 376.00 126.00 250.00 31500.00 9000.00 22500.00 54121.00

1050.00 3300.00 376.00 126.00 250.00 31500.00 9000.00 22500.00 58971.50

1110.00 3300.00 376.00 126.00 250.00 31500.00 9000.00 22500.00 64068.00

1190.00 3300.00 376.00 126.00 250.00 31500.00 9000.00 22500.00 71524.00

GIIS - TIE Competition 2009

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