Topics: Marketing, High-heeled footwear, Sales Pages: 29 (9871 words) Published: May 14, 2014

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Business Plan
Business Idea: Creating and selling a high heel shoe that converts into a flat shoe.

Team Members

Linn Baumgardt
Zach Hally
Amanda Hudson
Martine Jackson
Caitlin O’Malley
Colleen Pascarella


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Table of Contents
Table of Contents

Page 1

Business and Product Description

Page 2

Industry and Competitive Review

Page 2

Macro-Environmental Forces

Page 3

Market Segmentation

Page 3

Market Segment

Page 3 - 4

Target Markets

Page 4

Competition Analysis

Page 4 - 5

Positioning Strategy

Page 5 - 6

Strategy and Competitive Advantage

Page 6

Operations Strategy

Page 6 - 7


Page 7

Process Flow Chart

Page 8

Quality Assurance Plan and Operations Processes

Page 9

Recovery Plan and Reactive Quality Assurance

Page 10

Organizational Structure and Resource Allocation

Page 10 - 11

Marketing Mix

Page 11 - 15

Promotional Mix and Promotional Budget

Page 13 - 14

Market Forecast

Page 15 - 17

Contingency Plan

Page 17

Financial Narrative

Page 17 - 18


Page 18

Financial Statements, Ratios, and Assumptions

Page 18 - 23


Page 24 - 27


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Business and Product Description~
Eclipse Inc. designs a unique two-way convertible shoe that turns from a heel to a flat shoe for working women and college women. Eclipse aims to create a shoe that is convenient, comfortable, and that can be worn for day to day activities. In the first year, Eclipse will offer the Eclipse Executive and Eclipse Limelight, which are both closed toe heels available in sizes 6 to 11, including half sizes. Eclipse Executive is a 2" professional heel of higher quality that comes in black, tan, and brown. Eclipse Limelight is a 4" high heel that is made of a lower quality leather sold at a cheaper price and offered in grey, black, and red. In fall of year 4, the company will launch a 3" transformable boot called Eclipse Prestige. This will be available in all the same sizes and come in black, brown, and tan. Each fashion season, spring and fall, a change to each shoe product will be made according to the current fashion trend. Eclipse will completely outsource its manufacturing process through the manufacturer Amity Advance Co. Ltd, in Thailand, and use a third party distributor, Columbian Logistics Network in Michigan, to distribute the products to retailers in the U.S.A. Shoe design, marketing, promotion, and sales will run through Eclipse’s headquarters in Ann Arbor, Michigan. The ideal location of the corporate office allows easy access to major fashion cities, including New York, as well as easy access to the closely located Columbian Logistics. Industry and Competitive Review~

The footwear industry is controlled by large shoe companies, who are mostly-geared towards athletic footwear. The industry is controlled by 2,032 establishments that contribute to a total industry revenue of $29,172,000. While the industry has been experiencing a negative growth rate over the past two years, the growth rate is 1.4% in 2010, and is expected to increase over the next few years as the economy strengthens and buying power of consumers increase (IBISWorld, 2010). The top 10 footwear companies own 32% of the market share. These companies include Nike, Collective Brands, Adidas, Brown Shoe, and Sketchers (Mintelfootwear snapshots, 2008). Even though Eclipse is entering an organized, mature, and highly saturated industry with established companies, the company will use its niche strategy to break through the high barriers of entry in the footwear industry.


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Macro-Environmental Forces Refer to Table 1 for Macro-Environmental Forces. Table 1


 The nation's GDP increased 5.7% in the 4th quarter...

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The Average American Women
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Bright, Trent. (personal communication). Retirement Associate, Fidelity Investments. March 4,
Bureau of Economic Analysis. (2010, January) National Economic Accounts. Retrieved from
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Crocs Inc
Current Population Survey, Bureau of Labor Statistics, (2006) "Table 4. Employment status by
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Current Population Survey, Bureau of Labor Statistics, (2008) Employment Characteristics of
Families, "Table 5: Employment status of the population by sex, marital status, and presence and
age of own children under 18, 2006-2007 annual averages" (2008).
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Factors Influencing Consumption; Experimental Analysis of Shoe Buying. (1954). In
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Global working women on the rise. (2008). BBC News- UK- July 2008, Retrieved from
Heelys Inc. (2010). Company Financials from 2003 - 2008. Retrieved from Mergent Online
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Johnston, Michelle. (personal communication). CFO, Care Advantage, Inc. February 7 and 18,
and March 3, 2010.
IBISWorld. (2010, January). Footwear wholesaling in the US (42234).Retrieved from /industry/keystatistics
Marklein, M.B. (January, 26 2010). College gender gap remains stable: women 57%. USA
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Mintel Group. (2008, July) Attitudes of women aged 18-34- US. Retrieved from
Mintel Group. (2009, December) Foot care products- US. Retrieved from
Mintel Group. (2008, July) Footwear Snapshots- US. Retrieved from
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