Heel to Toe provides a marketplace platform for consumers to lend and rent expensive shoes for short periods. These shoes are at the height of fashion and are generally rented for a week or less. A large percentage (60%-80%) of the shoes rented are not owned by the company. Consumers can create a profile post their own shoes up for rental or they can browse the available shoes to rent.Each posting of shoe available for rent will be linked to the renter so that buyers can review their credibility and past reviews. When clicked on a posting, the consumer can view various key information about the shoes (times worn, how old, original price, size). When the renter completes a transaction, Heel to Toe then emails the shipping label with prepaid return shipping to the shoe owner who has two days to get the shoes in the mail to the buyer.After the shoes are returned using the prepaid shipping from Heel to Toe (less than a week after received), the payment will be directly credited into the renter’s account after Heel to Toe takes 2.5% transaction fee plus a $5 service charge. Heel to Toe will encourage renters to charge around 15% of original retail price of the shoes. If the consumer rents a shoe out of Heel to Toe's inventory, the warehouse sends the shoe to the consumer and the consumer sends it back with a prepaid shipping label. The shoes are then cleaned and repaired if necessary (Exhibit 3). Shoe renters are responsible for cleaning their own shoes. If shoes are overly dirty/damaged, the renter may be charged a damage fee. This paper will detail various aspects of the company, such as the business concept, market definition, insights from customer feedback, value propositions, guerilla marketing strategy, marketing mix strategy, plan of action, contingency plan, and profitability of operations as well as media campaign.
Heel to Toe is a start-up that rents high-end designer women’s shoes to consumers via the internet. Its current team consists of three members withdifferent strengths: a marketing and sales specialist, finance and operations specialist, and a fashion and purchasing expert. Business Concept
Women often find themselves in situations where they need to dress up. Dressy outfits can be expensive especially when the person does not have appropriate shoes to match the outfit or desires to wear a luxurious pair of new shoes. This is out of many people’s price range, so a rental option can alleviate this pain point. Heel to Toe has an inventory of high fashion shoes that it rents out to consumers throughits marketplace platform. After the shoes have been rented out several times, they can be sold at a discounted price. By providing a marketplace and matching women with excess inventory of unused high end shoes with buyers who need affordable high end shoes, we can alleviate a huge pain point of our consumers. The company will only have 20% of in house inventory to hedge against higher fixed costs. By allowing individual users to post their own shoes, our product catalogue will be constantly expanding.The product category is shoe rental and it is an existing category. While there are services that rent out dresses and other expensive goods such as handbags,there are no big players in the field of shoe rentals. Heel to Toe’s competitive advantage is strong focuses on affordability, efficiency, lack of high inventory costs, and most importantly, superior variety of products due to the consumer to consumer rental option. Market Definition
Heel to Toe has two market segments that it targets. The first segment is young women aged 15-21 from high income households. This includes high school and college aged consumers. Women in this age group are heavily dependent on their parents for large purchases. In this segment, we target young women with affluent parents as these would be most likely to spend more on special occasions. We estimate based on surveys that up to 30% of these...