Zephyr Kicks

Jennifer Thach, Yang Li, Will Taylor, Tae Shin and Andrew keys

Our mission is to provide a high quality, yet affordable shoe.

“For your everyday needs”

MISSION STATEMENT

Athletes Casual shoe consumers All demographics

TARGET AUDIENCE

OBJECTIVE & GOALSFrom the beginning of the semesterPenetrate as many markets as possibleOffer a shoe that is affordable, as well as attractive to

everyoneMaximize benefits by minimizing cost and increase

sales by offering a cheaper product than competitors

OBJECTIVE & GOALSDid we meet our goals?WITH FLYING COLORS!

Entered all 3 marketsOffered the lowest prices throughout the simulationPlaced 1st in NewShoesReached version 4 Reached 81.5% in Costumer Satisfaction Rating

MARKETING MIXPRODUCT

A high quality athletic and casual shoes

PLACE

Home, domestic, and foreign markets

MARKETING MIXPRICE

1 2 3 4 5 6

Price 103.45 95.17 92 92 92 95

Breakeven 91.45 79.17 59.44 57.08 49.81 55.94

$10.00

$30.00

$50.00

$70.00

$90.00

$110.00

Home

MARKETING MIXPRICE

1 2 3 4 5 6

Price 82.37 75 72 72 72 75

Breakeven 67.37 59.74 46.59 48.99 40.57 43.61

$5.00

$15.00

$25.00

$35.00

$45.00

$55.00

$65.00

$75.00

$85.00

Domestic

MARKETING MIXPRICE

4 5 6

Price 115 115 120

Breakeven 0 89.19 222.97

$25.00

$75.00

$125.00

$175.00

$225.00

Foreign

MARKETING MIXPROMOTION

1 2 3 4 5 6

Advertising 1750000 2000000 2000000 2000000 2000000 2000000

Consumer Promotion 1000000 1000000 1000000 1000000 1000000 1000000

Dealers Promotion 500000 500000 500000 500000 500000 500000

Product Development 1000000 1000000 1500000 1500000 1500000 1500000

$250,000.00

$750,000.00

$1,250,000.00

$1,750,000.00

$2,250,000.00

Home

MARKETING MIXPROMOTION

1 2 3 4 5 6

Advertising 1500000 1500000 1000000 1500000 1500000 1500000

Consumer Promotion 800000 800000 1000000 1000000 1000000 1000000

Dealers Promotion 800000 1000000 1000000 1000000 1000000 1000000

Product Development 1000000 1000000 1500000 1500000 1500000 1500000

$100,000.00

$300,000.00

$500,000.00

$700,000.00

$900,000.00

$1,100,000.00

$1,300,000.00

$1,500,000.00

Domestic

MARKETING MIXPROMOTION

4 5 6

Advertising 1000000 300000 750000

Consumer Promotion 500000 300000 500000

Dealers Promotion 1000000 700000 1000000

Product Development 1500000 1500000 1500000

$100,000.00

$300,000.00

$500,000.00

$700,000.00

$900,000.00

$1,100,000.00

$1,300,000.00

$1,500,000.00

Foreign

ADVERTISING MONEY SPENT TO UNITS SOLD

$1,700,000.00 $1,800,000.00 $1,900,000.00 $2,000,000.00 $2,100,000.0060

80

100

120

140

160

1

23

4

5

6

HomeAdvertising Spent to Units Sold

Advertising Spent

Units

Sol

d(in

1,0

00)

ADVERTISING MONEY SPENT TO UNITS SOLD

$800,000.00 $1,000,000.00 $1,200,000.00 $1,400,000.00 $1,600,000.00100

120

140

160

180

200

220

240

1

2

3

4

5

6

DomesticAdvertising Spent to Units Sold

Advertising Spent

Units

Sol

d(in

1,0

00)

ADVERTISING MONEY SPENT TO UNITS SOLD

$250,000.00 $500,000.00 $750,000.00 $1,000,000.00 $1,250,000.000

10

20

30

40

4

5

6

ForeignAdvertising Spent to Units Sold

Advertising Spent

Units

Sol

d(in

1,0

00)

PRICE PER UNIT TO UNITS SOLD

$90.00 $92.00 $94.00 $96.00 $98.00 $100.00 $102.00 $104.00 $106.000

20

40

60

80

100

120

140

160

1

23

4

5

6

HomePrice Per Unit to Units Sold

Price Per Unit

Units

Sol

d (in

1,0

00)

PRICE PER UNIT TO UNITS SOLD

$70.00 $72.00 $74.00 $76.00 $78.00 $80.00 $82.00 $84.000

50

100

150

200

250

1

23

4

56

DomesticPrice Per Unit to Units Sold

Price Per Unit

Units

Sol

d (in

1,0

00)

PRICE PER UNIT TO UNITS SOLD

$114.00 $115.00 $116.00 $117.00 $118.00 $119.00 $120.00 $121.000

5

10

15

20

25

30

35

4

5

6

ForeignPrice Per Unit to Units Sold

Price Per Unit

Units

Sol

d (in

1,0

00)

REVENUE & PROFIT BY PERIOD

-1 0 1 2 3 4 5 6

Total Revenue 9180000 19172000 20511296 26474656 24632080 33010748 26640632 32292980

Net Profit -2404180 -1218000 4749213 9155236 8401135 11141299 8864278 13029491

-$2,500,000.00

$2,500,000.00

$7,500,000.00

$12,500,000.00

$17,500,000.00

$22,500,000.00

$27,500,000.00

$32,500,000.00

Total Revenue & Net Profit

CUMULATIVE REVENUE & PROFIT

1 2 3 4 5 6

Cumulative Revenue 20511296 46985952 71318032 104628780 131269660 163562392

Cumulative Net Profit 4749213 13904449 22305584 33446883 42311162 55340654

$10,000,000.00

$30,000,000.00

$50,000,000.00

$70,000,000.00

$90,000,000.00

$110,000,000.00

$130,000,000.00

$150,000,000.00

$170,000,000.00

Cumulative Revenue & Profit

ROS & ROM

1 2 3 4 5 6

ROS 0.23 0.35 0.34 0.34 0.33 0.4

ROM 0.62 1.14 1.09 0.96 0.86 1.16

10%

30%

50%

70%

90%

110%

130%

Return on Sales & Marketing

INCOME STATEMENTRevenue Total % of Rev.Home sales 716,136 units $67,608,742 41.3%Domestic sales 1,172,881 units $87,195,670 53.3%Foreign sales 74,820 units $8,757,982 5.4%Total Revenue $163,562,392 100.0%Cost of Goods Sold

Total Cost of Goods 1,963,837 units $43,331,738 26.5%Gross Margin $120,230,654 73.5%Expenses Advertising $22,300,000 13.6%Consumer Promotions $12,900,000 7.9%Personal Selling $9,440,000 5.8%Dealer Promotions $11,500,000 7.0%Product Development $8,000,000 4.9%Market Research 0 0.0%Start-up $750,000 0.5%Total Expenses $64,890,000 39.7% Extraordinary Income/expense

0

0.0%

Net Profit $55,340,654 33.8%

AVERAGE

HOME DOMESTIC INTERNATIONALPRICE $96.07 $76.67 $117.50

ADVERTISING $1,805,555.56 $1,500,000 $700,000

CONSUMER PROMO

$1,277,777.78 $1,012,500 $450,000

SALES PEOPLE 5.2 9.6 9.5

DEALER PROMO $633,333.33 $975,000 $925,000

MARKETSHOME DOMESTIC INTERNATIONAL

Advertising Advertising Advertising

Consumer Promotions

Consumer Promotions

Consumer Promotions

Sales people Sales people Sales people

Dealer Promotions

Dealer Promotions

Dealer Promotions

MARTKET GROWTH & CUSTOMER SATISFACTION

1 2 3 4 5 6

Home 0.1 0.124 0.133 0.151 0.108 0.146

Domestic 0.143 0.154 0.133 0.198 0.141 0.162

Foreign NaN NaN NaN 0.137 0.039 0.082

Customer Satisfaction 0.729 0.789 0.781 0.815 0.762 0.803

5.0%

15.0%

25.0%

35.0%

45.0%

55.0%

65.0%

75.0%

85.0%

Market Share & Customer Satisfaction

MARKET SHARE

Home35%

Domestic57%

Foreign8%

Sales

PROJECTIONS

Period 6 7

Home Sales 132,793 130,670

Domestic Sales 213,191 208,170

Foreign Sales 30,736 36,654

Revenue $32,292,980 $32,424,880

Profit $13,029,491 $03,789,218

Market ForecastsHome Market drops by 1.31%Domestic Market drops by 9.79%Foreign Market rises by 19.18%Zephyr Kicks Period 7 Projection (assuming same market share)

PROJECTIONS

• Expand to fashionable shoe industry• Introduce consumer customization options• Become a leading click & mortar company