Footwear Industry

David Conely, Rachel Dietsch, Wasilios Kapsalis, Luc

Holden, Bobby White, and Michael Manos
SBU 220 02
New Shoes
Fall 2020
Professor: Dr. Giunta
 Target Market (Bobby)

Target Market:
Recreational athletes of all ages who
are looking to buy a quality pair of
shoes at an affordable price.

Segmented Approach:
Working class people that live an
active lifestyle and have a household
income of around $70,000 per year.
 Our Goals (Everyone)

David: Increase unit sales by 3,060 (3%) units per period. During period three this goal was changed to
10,200 (10%) unit sales increase per period.

Rachel: Increase customer satisfaction by 3 - 4% per period. After period two, the goals were changed for
each period depending on the previous period’s outcome.

Wasilios: Increase return on sales by 2% per period to have a high ROS and see the company’s
operational efficiency progress positively.

Michael: Increase the amount of cost of goods sold by about 7% each period to help our company.

Luc: Increase revenue by 5% each period through increased product development over the 6 periods.

Bobby: Net Profit. Our main goal was to increase our net profit by 3% per period in order to have steady
rise in net Profit.
 Goal was met

Period 1 (Everyone) Best period for

performance measure

Goal was not met

Planned Actual Rank Change

Unit Sales 105,060 units 120,366 1 18,366 units

Cost of Goods $4,500,000 $5,243,143 3 $743,143

Sold

Return on 4.4% -2.43% 2 12%

Sales

Customer 55% 75.9% 2 75.9%

Satisfaction

Product Level +5% +8.8% 1 +8.8%

(Based on $9,980,378
Revenue)

Net Profit $1,000,000 $(242,000) 2 81.7%

 Goal was met

Period 4 (Everyone) Best period for

performance measure

Goal was not met

Planned Actual Rank Change

Unit Sales 226,461 units 291,524 units 1 75,263 units

10,200 units

Cost of Goods $7,500,000 $7,888,639 3 $388,639

Sold

Return on 10% 23.8% 1 5.9%

Sales

Customer 82% 76.4% 1 5.8%

Satisfaction 75%

Product Level +5% +29.6% 1 +29.6%

(Based on $23,098,847
Revenue)

Net Profit $5,000,000 $5,498,548 1 72.3%

 Goal was met

Period 6 (Everyone) Best period for

performance measure

Goal was not met

Planned Actual Rank Change

Unit Sales 291,524 units 275,991 units 3 (6,049) units

10,200 units

Cost of Goods $6,000,000 $6,231,877 1 $231,877

Sold

Return on 14% 33.07% 1 -0.3%

Sales

Customer 90% 73.8% 2 -1.4%

Satisfaction 76%

Product Level +5% -3.8% 3 -3.8%

(Based on $21,327,377
Revenue)

Net Profit $8,000,000 $7,202,178 1 -4.8%

Price (Michael)
Promotion (Luc)
Product (Rachel)
Benchmarking (David)

Using market research, we were able to

recognize that SHU’s Shoe Garden, and later All
Soles Matter, caught up to us in product level. This
led to them overtaking us in terms of unit sales. It
was then necessary for us to decrease our prices
to remain competitive with them. This was
especially important in the home and domestic
markets where we typically underperformed. As a
result we had a decrease in our share of unit sales.
However if we would have recognized this earlier
we would have continued to spend aggressively in
product development to meet the needs of our
customers.
 Competitive Analysis
(Bobby)
Period 3

● Market Research: Domestic/Forgein

Markets and paid $15k/$10k
● Competitors: It was found that the
leading team’s –All Soles Matter– Period 3 Period 4
domestic price was $5.49 lower than
our set price of $73.99. Also, our price
was set $2.83 higher than the industry
average.
● Our Response: This information
prompted our team to lower our
domestic price. In hopes of increasing
our market share and unit sales in the
following period.
 Lace ‘Em Up
BCG Matrix (Wasilios)
Market Growth Rate
All Soles Matter

Star Question Mark

Cash Cow Dog

Relative Market Share

 Catholic Social Teaching Principles
(Luc) Participation: Each member of our team was encouraged to participate in all
simulation decisions throughout the six periods of the simulation. This inclusive environment
agrees with Catholic Social Teaching Principles because it illustrates the value that each
individual brings to our team and to the world in general (Giunta, 2020, November 12).

(Wasilios) Rights and responsibilities: Additionally, each member of our team had rights
and responsibilities in regards to the simulation. This included duties that were assigned at
the beginning of the simulation, as well as updating the performance measures tracking
sheet periodically. By embracing these rights and responsibilities, we were adhering to
Catholic Social Teaching principles.

(Rachel) Mindset: Overall, our team went into the simulation wanting to create a high quality
shoe to satisfy our customers needs and wants, in an organized and efficient group effort.
We wanted to be optimistic throughout the entire simulation.
 References
Armstrong G, Kotler P, (2020) Marketing By The Numbers, Marketing an introduction.

Harlow. Pearson. Bobby

Armstrong, G., & Kotler, P. (2020). MyLab Marketing with Pearson eText -- Access Card -- for Marketing: An Introduction. In Appendix

3: Marketing by the Numbers (14th ed., p. 576). Pearson. Wasilios

Armstrong, G., Kotler, P., Opresnik, M. O. (2020). External Idea Sources, Marketing an introduction.

Harlow. Pearson. David

Armstrong, G., & Kotler, P. (2020). Marketing: An Introduction. In Postpurchase Behavior (14th ed., p. 151). Pearson.
Rachel

Armstrong, Kotler, & Opresnik, 2020; The Profit and Loss Statement Budget , p 577., para 1. Michael

Lecture: Giunta, C. (2020, The Digital Age, Fall). SBU 220 02, Marketing, Greensburg, PA: Seton Hill University. David
 References
Lecture: Giunta, C. (2020, Differentiation & Positioning, Fall). SBU 220 02, Marketing, Greensburg, PA: Seton Hill

University. David

Lecture: Giunta, C. (2020, Distribution & Place Strategy, Fall). SBU 220 02, Marketing, Greensburg, PA: Seton Hill University.
David

Lecture: Giunta, C. (2020, Market Evolution Model, Fall). SBU 220 02, Marketing, Greensburg, PA: Seton Hill University. Rachel

Lecture: Giunta, C. (2020, Market Share, Fall). SBU 220 02, Marketing, Greensburg, PA: Seton Hill University. Rachel

Lecture: Giunta, C. (2020, Pricing Strategy, Fall). SBU 220 02, Marketing, Greensburg, PA: Seton Hill University. David

Lecture: Giunta, C. (2020, Marketing Concept, Fall) SBU 220 02, Marketing, Greensburg, PA: Seton Hill University. Bobby