Ateneo de Manila University

John Gokongwei School of Management

Project Information Cataloging Sheet

Class Project Information and Cover Sheet

Name of Student/s: School Year: 2016-2017 Sem: 1st

Subject Code: LS 126

Course Name: Strategy Formulation

BUENO, Zia Dominique
CALLEJA, Zed Chino Teacher: Karen Roa
CO, Theodore Christopher
Matthew
FAUNI, Nicole Louise (Information below this line and in this column for use by
MENDOZA, Beatrice Natividad
Rosario Faculty &/or PICS staff only.)
TAN, Samantha Jae
Grade:

Project Title: Functional Area:

Yapak Designs

Client: Comments:
Students, Athletes, and
Working class, Aged 15-29

Industry Category:
Footwear

Abstract (150 words or less)

Yapak Designs is a foldable sandals footwear designed for the convenience of the
customer. Its lightweight and compact design allows for more space in the bag. The style of the
sandals is fashionable and suits the overall looks of the customer.

Author(s) Recommended Key Words

Sandals, Foldable, Compact, Footwear, Stylish
I. Executive Summary

Capitalizing on the fast-paced lifestyle of most female millennials today, Yapak Design

is a local brand that provides comfortable, portable, and stylish sandals. Yapak Designs

combines both elements of fashion and function by offering portable products that fit into the

bags most women bring everyday and by creating a minimalist and monochromatic aesthetic

that is in line with current fashion. Yapak Designs aims to keep its users confident and

comfortable. Furthermore, the brand is committed to creating a Filipino brand, by partnering up

with a local shoe-maker enterprise in Marikina City, Philippines for the production of their

footwear line.

Yapak Designs entry strategy initially involves establishing itself within the Ateneo de

Manila University community via digital marketing campaigns; eventually, it will expand to

outside markets by participating in selected bazaars held externally from the university. Aside

from establishing online marketing campaigns, Yapak Designs will also use online services to

reach customers in areas where they are not physically present, create a convenient and smooth

platform for transaction, provide customer service, and gain valuable customer feedback and

insight, which is vital for product innovation in the future.

The brand will then coordinate with its suppliers to communicate the desired

improvements or adjustments -- this will further the brands goal of enhancing the outlook on

local shoemakers as capable and efficient manufacturers. Through meaningful local partnerships

and innovative product design, the brand hopes to empower women one step at a time.

As a startup, Yapak Designs will need an initial capital investment of Php 96,000 to

cover costs for its prototype, initial production, and other related operating. Capital will be

collected from the 6 founders and managers of Yapak Designs; each will contribute Php 16,000

without liabilities. On its first year, the company aims to sell 200 sandals (to be sold at Php

899/unit), obtain total gross sales of Php 26,970, achieve net sales of Php 26,071 after discounts,

and consequently, earn a net profit of Php 13,521.

Table of Contents:

II. Business Model and Envisioned Future1

A. Value Proposition...1
B. Target Market Segment..1
C. Elements in the Value Chain..1
D. Defined Cost and Profit..2
E. Position in Value Network.2
F. Vision/Mission...2
G. Objectives...3
III. Industry Study and Marketing plan with Competitive Strategies3
A. Market and Industry Background...3
B. Market Trends4
C. Current Market Leaders Data: Strengths and Weaknesses...5
IV. Marketing Plan with Competitive Strategies...6

A. Unique Value Proposition..6

B. Competitive Strategy..7
C. Positioning Statement.....7
D. Pricing Strategy..7
E. Strategy Required Competencies for Development...8
F. Marketing Plan...9
G. Above the Line and Digital Advertisements..9
H. Below the Line.10
I. Direct Marketing..11
J. Distribution Channels..12
K. Required Competencies to Ensure Sustainability12
V. Design and Development Plan13
A. Rationale for the Design of This Development....13
B. Product Development Plan...13
C. Product Development Goals.14
D. Market Testing and Development Activities14
E. Supplier Network Development...15
F. Distribution Network Development.15
G. Pre-Operations Schedule......15
H. Risk Assessment...................16
VI. Management and Financial Plans...16

A. Organizational Structure during the Development Phase.16

B. Financial Plan & Projections16

Appendix21

Works Cited...59
II. Business Model and Envisioned Future

Value Proposition

Yapak Designs aims to create affordable and compact footwear that provides convenience,

comfort, and confidence to its users everyday.

Target Market Segment

Mainly females, 15-29 years old, SEC ABC1, with the following professions:

1. Students. Students can wear this trendy and stylish footwear to school or even to other

places such as malls. With different designs, the sandals can be easily integrated into their

personal style and aesthetic while providing comfort and functionality. Given the sandals

compact and lightweight features, they can also easily be stored in their hand bags.

2. Fitness Enthusiasts. People who engage in sports and workouts typically change clothes and

footwear after they exercise; with foldable sandals, they may be able to fit more easily their

after-gym clothes and footwear in their bags. Furthermore, aside from the convenience

and functionality provided, fashion and style are not sacrificed, given the trendy style of the

footwear.

3. Working Class. Many working women now change into sandals throughout the day because

they feel tired from wearing uncomfortable heels to the office and want their feet to rest.

With foldable sandals kept in their bags, they will be able to slip on a pair of sandals after a

long day at work.

Elements in the Value Chain

1. Outsourced Manufacturing. Operations will be outsourced from the business; manufacturing

and supply partners will handle production and logistics.

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 2. Delivery. By utilizing the Internet, the company will provide a platform for its current and

potential customers to conveniently and smoothly purchase products and have them

delivered to their doorstep.

3. Marketing. Marketing activities need to be focused on increasing brand awareness for

Yapak Designs. Customers need to be educated about the product and the brand. The scope

of marketing activities in the business would include brand management, market research,

marketing communications, and social media marketing.

Defined Cost and Profit

Revenues

Revenues will be generated from product sales via retailers and other activation avenues

such as bazaars and online transactions.

Cost Structure

Direct costs to be incurred by the company will come from outsourced production and

marketing, while overhead costs will come from bazaar rent expenses and market testing

activities after production.

Position in Value Network

The company will rely on local manufacturers and suppliers for operations, and on bazaar

organizers and e-commerce companies to widen the distribution of the product and to strategically

and effectively reach the target audience.

Vision/Mission

The vision of Yapak Designs is to become a local leader in the provision of high function

and fashionable footwear that will empower women one step at a time.

Our mission is to create an exceptional customer experience through the production of

sandals that helps modern women move conveniently and comfortably in style.
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Objectives

Within 1 year, Yapak Designs aims to:

1. Create 3 sandal designs tailored to the preferences of the target audience.

2. Generate from the brands social media accounts at least 2, 500 Facebook likes

and 500 Twitter followers.

3. Participate in at least 3 bazaars.

4. Strive for sales target of 200 units

III. Industry Study and Marketing Plan with Competitive Strategies

Market and Industry Background

The footwear industry has been a robust and progressive one over the years, with a sizable

market of young consumers with greater disposable incomes and a wide array of international and

local brands scattered in various distribution channels (Footwear in the Philippines). In 2015, the

womens footwear was able to achieve a 9% increase in current value sales (Footwear in the

Philippines), outperforming the childrens and mens footwear. Two fashion trends that are

currently making rounds in the market are athleisure and urban streetwear (Footwear in the

Philippines), which the major players such as Nike Philippines and New Balance had been

capitalizing on for the past years (Footwear in the Philippines).

The industry, gathering from a Porters Five Forces assessment (as seen in Appendix 1),

may be seen as an unattractive industry to venture into due to the stiff competition with different

established brands both locally and globally and the unfavorable bargaining power of suppliers and

buyers over the industry. Moreover, there is an apparent opportunity in this industry to create a

unique and valuable offering of portable and simple footwear that is not made available by most

global brands in the market.

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Market Trends

Fragmentation of the Market

International brands had been entering the Philippine market over the past few years,

bringing in countless of variants in footwear in order to meet the demands of middle to high income

earning consumers (Footwear in the Philippines). This had led to the local brands to create

product line and pricing strategies to compete with the international brands in order to attract its

consumers while addressing the needs of the mass consumers in the market (Footwear in the

Philippines).

Increase in Consumer Spending

The countrys robust economy paved the way for creating high paying jobs in the IT and

BPO industries, which also led to the increase in disposable incomes for the consumers (Apparel

and Footwear in the Philippines). With the rise of disposable incomes and increase in purchasing

power, consumers tend to join the bandwagon of the growing interest in global brands (Footwear

in the Philippines, Appendix 2).

Domination of Western Trends

In relation to the growing presence of international brands and the Westernized culture in

the market, Filipino consumers tend to become conscious of the brands they had been purchasing

(Footwear in the Philippines, Appendix 2) and to follow the trends globally such as the trend of

minimalism from tiny houses to micro-apartments to monochromatic clothing to interior-

decorating trends (New York Times) spreading in the West. This may potentially lead to

consumers showing preference for Western brands and aesthetics over the local brands, which may

have been in the case of the clothing industry with the apparent fast fashion and minimalist trend.

Supply and Demand Characteristics

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 With the growing presence of international brands in the market, there is an abundant supply

of footwear - wherein consumers may enjoy a wide array of choices for footwear that will cater to

their preferences and needs.

In addition, the demand for footwear is expected to increase further as the purchasing power

among young professionals rises and the number of middle-class consumers increases in the next

few years (Footwear in the Philippines, Appendix 2).

Current Market Leaders Data: Strengths and Weaknesses

Yapak Designs, which is classified as part of the footwear market in the Philippines, will be

competing alongside brands that sell all types of shoes, sandals, flip flops and slippers. Nike is the

current market leader based on Euromonitors February 2016 study, followed by Otto Group as they

hold a total of 6% market share in the footwear market.

Yapak Designs closest competitor among the top brands listed would be brands that have a

core product line of sandals. The brands currently leading in this segment of the footwear market

would be Parisian (which enjoys a 1.6% market share), Havaianas, and FitFlop. Other brands aside

from the aforementioned are accounted for in others category which have a total of 80% market

share based on a Euromonitor study.

Key strengths of the top 3 brands in the womens sandals category would be:

1) Strong delivery channels. Parisian, as part of SM Retail Inc, enjoys presence in the SM

Department Stores, which provide accessible purchasing points for its customers.

2) Well-known brand. All three products have a strong brand presence in the market.

Havaianas international presence allows it to compete with Parisian despite not being a

subsidiary of SM Retail Inc. Fitflop, on the other hand, also enjoys the same privilege as

Havaianas.

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 3) Trusted Brand and Quality. All three brands are recognised not only as price friendly,

but also brands that have high quality produce. As seen by their steady growth in market

shares, these brands are able to generate loyalty with their customers.

There are two key weaknesses which Yapak Designs aims to address: (1) all brands have not

made a big step in innovating their products - albeit the constant rolling out of new designs, there

are no new features of which they offer; and (2) they are not able to actively relate themselves to

good causes in line with their Corporate Social Responsibility in comparison with Yapak Designs,

which uses materials found locally to not only create products of high quality, but also provide

returns to the growth of local enterprises.

IV. Marketing Plan with Competitive Strategies

Unique Value Proposition

Yapak Designs is all about portability and style. The designs of the sandals are created to

help the modern woman in her daily life based on her needs, which are durability, comfort, and

quality. This is captured in the tagline Bring style anywhere, one STEP at a time, and the product

offering concisely summarised in four words:

Sophisticated. The product is going for a minimalist style and monochromatic color scheme

in line with the brands guiding principle of less is more.

Trendy. Despite its simple design, it can still capture the attention of its young target market

because of its fusion of high-functionality and fashion.

Empowering. The product provides the benefit of self-expression for the target audience and

gives them confidence as they go through the different aspects of their lives.

Portable. The product is unique as it applies forward thinking in its design as something that

is foldable and compact that you can bring anywhere.

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Competitive Strategy

The competitive landscape of Yapak Designs (Appendix 19 and 20) consists of both local

and international brands of footwear in the Philippines that are well-received in the target audience

of Yapak Designs - including Renegade Folk, Call It Spring, Aldo, and Celine.

Based on the Competitive Profile Matrix (Appendix 21), Yapak Designs scored high

compared to other local start up shoe brands but has failed to match with established brands such as

Primadonna, Celine, Aldo, and Birkenstock due to their established brand image and globalized

operations. In comparison to the established global brands, Yapak Designs may capitalize on quality

of the product and its features to strengthen further its positioning as highly functional yet stylish

footwear. Thus, Yapak Designs will focus more on its product development in order to meet the

needs of the female millennials who want style and functionality at the best value available. Yapak

Designs positioning against its direct competitors is mapped out in Appendix 22.

Positioning Statement

To the modern Filipina women who thrive in fast paced lives, Yapak Designs is a simple yet

classy brand that produces designs based on the needs and wants of these women - comfort,

portability, style.

Pricing Strategy

Through a comparative analysis of the competitors prices and surveys to determine the

target markets ideal purchasing price for the product, the company has decided to price the

product, along with its pouch, at Php 899 - averaging the 2nd to the lowest priced competitor and

the price the market is willing to pay based on our survey found in Appendix 5. The price is beyond

that the market is willing to pay given the portability function of the product, but not over the 2nd

lowest priced competitor considering that Yapak Designs is a new entry in the footwear market. The

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reason why it is at 899 is that if made into 900, the product will be perceived to be more expensive

to the consumers.

2nd to the lowest (Primadonna) Php 1200

Price Market is Willing to Pay Php 600

Price of the Product Php 899

Strategy and Required Competencies for Development

Refer to IFE (Appendix 3) and EFE (Appendix 4) in the Appendix section for a

comprehensive evaluation on the factors Yapak Designs had taken into consideration prior to the

identification of the key issues to be addressed in its first year.

YAPAK DESIGNS Strategy

Key Issues Strategy Points Objectives (1 year) Required Competency

Demand for 1. Constant feedback Create and produce Market Research

portability in gathering and research three sandal designs Discovering consumer
products on the insights gained for the year insights
among 2. Online (social media) Research and
consumers and physical (bazaars) Development
feedback and product Innovating and developing
surveys new product concepts

Limited Selective Distribution 1. Sell at at least 3 Sales

distribution Channel Choices bazaars Communication with
channels but 1. Online 2. Aim for sales target bazaar organizers
growth in 2. Lifestyle and fashion of 200 units for the Public Relations
internet bazaars first year of 1. On ground promotions
retailing operations. 2. Social media
communication
Supply Chain
Efficient and quality
production
Marketing
Promotions that shows
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 product presence in the
distribution channels

Low brand 1. Create brand Gain 2,500 Facebook Marketing

loyalty awareness and establish page likes and 500 1. Brand Marketing
positioning of the brand Twitter followers for 2. Traditional and non-
2. Advertising the brands social traditional promos to
campaign media accounts generate product
awareness
Advertisement
Management
Brand campaigns
Marketing Plan

Yapak Designs brand message is to bring style anywhere, one step at a time. Leveraging on

the trend of less is more in the market, brand collaterals will take on a minimalist look - using

neutral tones such as black, white and tan (Appendix 13). Emphasizing its core concept of style and

functionality, Yapak Designs marketing campaign goes back to basics through focusing on the

product itself. Aside from that, the portability of the product would be highlighted in different

monochromatic scenic views and flatlays (Appendix 14). The campaign will be digitally-centered,

with several diverse non-traditional promotions executed in three phases:

Above the Line and Digital Advertisements

Social Media

Yapak Designs will be having its own Facebook page and Twitter account. These social

media accounts will be the main outlet of Yapak Designs in posting new updates, product

promotions, and other digital advertisements. It will also keep a constant connection with its

customers by being available to address product concerns and inquiries and placement of orders

through private messaging.

Themed Posters

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 A series of posters, either in Portable Network Graphics (.png) or Graphics Interchange

Formation (.gif) file (Appendix 15), will be blasted through Yapak Designs social media accounts

such as Facebook, Twitter, and Instagram, highlighting how it can be conveniently used anytime

and anywhere. The company will be keeping a minimalist theme to highlight the product, following

a social media calendar plan to ensure constant appearance and strong follow through every time.

Hashtags

The company will be asking their customers to use their hashtag #OneStepAtATime every

time they purchase a pair of sandals for bigger market reach. People will be inclined to do this

because they will have the opportunity to be featured in Yapak Designs social media accounts.

Through this, the market, being inclined with modern technology, will be more knowledgeable

about Yapak Designs brand, its products, and what it stands for. After all, with the hashtag you are

one click away from being brought to Yapak Designs collection of its lookbooks, customer

feedbacks, and the different customer experience Yapak Designs has provided its consumers.

Online Pricing Promotions

Aside from being present in various avenues for selling, will Yapak Designs employ a pull

marketing by releasing special promotions online to increase demand and scope of awareness, and

to keep the market engaged. Yapak Designs will be executing guerilla movements by having limited

edition promotions where people could get the chance to win a free or a discounted pair of sandals.

Engaging them on several social media contests would be done to keep the hype and spark the

interest of other potential customers.

Below the Line

Slipper Donation

For every Yapak Designs purchase, the company would be donating a pair of slippers to

children from a community that they would be able to partner with. Yapak Designs is currently
10
working with their partner organization of the United Nations in Ateneo de Manila University--

Barefoot Philippines. Through this, the company will be able to spread social awareness, to uphold

a corporate social responsibility, and to tap on its target market emotionally.

Brand Ambassadors and Fashion Bloggers

The company will be capitalizing on several social icons who are deemed to be social media

influencers, or those having a growing number of followers on social media with well-received and

highly visited fashion blogs. Influences such as Vina Guerrero, Lauren Uy, Kim Cruz, etc.

(Appendix 16) would be tapped into in order to reach Yapak Designs target market further and to

spread its brand image online and word of mouth. Posters, pictures, and blogs of these icons will be

shared in Yapak Designs Facebook page and Twitter account for more publicity and to show a

more personal connection with the companys product.

Direct Marketing

Customer Database

Once initial retail commences, the company will create an online customer database in order

to track of several customer data such as when they buy, what they buy, where they live, and how to

contact them. This will enable the company to reach out to customers for feedback, and other

pertinent information that will help the company develop its positioning further in the market.

Loyalty Cards

As a supplement to the customer database, the company shall be offering a loyalty system

that will encourage its customers to buy frequently and at high volumes. The loyalty card system

will allow the customer to avail of certain benefits such as promos, special offers, bazaar

invitations, etc. and allow them to receive discounts on their fifth (25% discount) and tenth (50%

discount) purchase. Through this, the company aims to initiate a system that develops brand loyalty

11
and ensures that customers are constantly rewarded and satisfied not just by the product but by the

overall customer service the company offers.

Distribution Channels

Lifestyle Bazaars, Direct, and Online Selling

Following the minimum input, maximum output principle Yapak Designs will be entering

the market slowly but surely through lifestyle bazaars and online selling. These would only require

the company to spend enough amount of time and rent in order to sell numerous amounts of their

products. Through distribution channels such as bazaars, the consumers may be able to experience

the comfort and portability of the product first-hand. Moreover, since the target market are the

millennials, most of them can easily purchase Yapak Designs products online through online

channels such Facebook and Instagram.

Partnerships

Capitalizing on the growth of online retailing, the company considers eventually entering

into various partnerships between established shopping sites, like Zalora, to help sell the products

and elevate Yapak Designs brand awareness.

Required Competencies to Ensure Sustainability

Feedback Engagement

With the tight competition in the shoe industry, emergence of a new demand for multi-

purpose and trendy items will most likely occur. Yapak Designs aims to have a consumer-centric

culture, and as such, collaboration through feedback concretizes such demand, and allows Yapak

Designs to further product innovation while keeping up with the latest trends. Online surveys will

be conducted after market entry during the first two months of operations, and respondents are

rewarded with a chance to win one of two free Yapak Designs sandals. Product warranty will also

be given to Yapak Designs customers within 3 days of purchase.

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V. Design and Development Plan

Rationale for the Design of This Development

Online surveys were designed to capture the insights of the target market on their

preferences and overall perception of the product. Since Yapak Designs aims to release 6 stock

keeping units (SKUs) of two styles and three variants of colour, shortlisted styles and color variants

of the sandals were included in the survey to tailor the product to the overall preferences of the

market. On the other hand, a brief description of the product under development had been provided

for the perusal of the respondents, which they had given their feedback regarding the product and

their willingness to pay for the product.

Overall, 94% of the respondents were most concerned of the durability of the product since

the material to be used for the pair of sandals must be foldable and lightweight. They have also

expressed comfort as one of their top reasons on purchasing the pair of sandals, which will be taken

into account as well in developing the product further. For the complete tabulated results of the

survey, refer to Appendix 5.

Product Development Plan

The product development plan for Yapak Designs sandals is based on 2 key elements that

make it unique from other brands in the market - a highly-functional design and a minimalist

fashionable style.

Highly-Functional Design

The sandals are designed in such a way that they are portable and can be easily

brought to any location. The materials used are leather for the body of the sandals while the

soles are made of rubber. Yapak Designs therefore is light, easily foldable while preventing

creases at the same time. The product can also conveniently fit within a drawstring pouch

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 bag made of environmentally-friendly kacha. This is so that the modern woman can move

from one aspect of her life to another without the worrying or stressing over her footwear.

Minimalist Style

The sandals are made to look sophisticated and chic through minimalist styles in

monochromatic colors, a classic look that can be matched with any outfit and the wide range

of activities that the modern woman goes through in her daily life.

Product Development Goals

Planning long term is essential to a companys success in order to be able to concretely

obtain the companys goals and objectives. The table below contains steps and measurements on

keeping track of the companys progress starting from the product ideation, production, and

execution. A visual representation would be found in Appendix 17, and a more detailed description

would be found in Appendix 18.

Goals Timeline

Brand Image September 26- September 30, 2016

Product Ideation September 26- October 4, 2016

Initial Production (Prototype) October 18- November 8, 2016

Feedback Engagement October 18- November 8, 2016

*Product Revision Between October 18- November 8,

2016

Mass Production November 1- December 20, 2016

Market Testing and Development Activities

The company conducted online surveys and interviews for a broader reach, validating or

negating information gathered by the company prior to initial production. Focus group discussions,

consisting of around 5-10 people, will be conducted once the initial prototype has been received in
14
order to capture genuine insights from the participants through predetermined questions. All

information gathered in the discussion will account for in the revision of the product.

Supplier Network Development

One of the important aspects of creating Yapak Designs is their relationship with the

manufacturer. The manufacturer provides the direct labor and raw materials.

Below is the summary of the supplier network plan with their respective schedules.

Appendix 7 shows a more detailed plan on the supplier network development.

Goals Timeline

Contact foldable sandals and pouch manufacturer October 4-November 15

Start producing foldable sandals and pouch November 1-December 20

Distribution Network Development

The selection for the distribution channels will be based on the cost, location, and the

markets consumer behavior. The table of the criteria for evaluation is located in Appendix 8, while

the list of bazaars targeted for participation is located in Appendix 9.

Pre-Operations Schedule

A thirteen-week schedule will be followed, from contacting the supplier down to the

execution and selling phase. Appendix 11 shows a more detailed gantt chart of the companys

operational activities. The companys goal is for production capacity to be two hundred (200)

pieces of sandals and pouches. The company also took into account the lead-time for each activity

and it is equal to the production capacity for contingency planning.

Once the supplier delivers the products, Yapak Designs will start selling online and on a

direct selling basis. Yapak Designs also would contact bazaars 5 to 8 weeks in advance in order to

check the availability, location, and cost of the bazaars.

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Risk Assessment

Detailed prevention and contingency plans have been laid out to address possible issues,

such as concerns with the manufacturing partner and dissatisfaction of customer, the company may

experience throughout the business year found in Appendix 12.

VI. Management and Financial Plans

Organizational Structure during the Development Phase

Shown above is the chart of the companys organizational structure. The structure, definition

and scope of each role is found in Appendix 10.

Financial Plan & Projections (March 15, 2017)

Initial Capital Investment Required

To kickstart Yapak Designs operations, the company will require all 6 of the founders to

give capital contributions based on the expenses and costs the business will initially incur.

Prototypes will first be ordered from manufacturers and suppliers, and the cash needed to cover for

the expenses is computed using the prices agreed upon by the company and the manufacturers. The

initial production expenses will also be incurred right away, given that the management team

wishes to order and have finished goods produced as soon as possible (as the suppliers might not be

able to accommodate orders during the busy holiday season.) Again, the prices listed above were

agreed upon by both Yapak Designs and the manufacturing partner. Promotional and marketing

expenses will also be incurred to increase brand awareness and introduce the product into the

market, and rent expense will also have to be covered, since the brand plans to join bazaars as soon

as the finished goods are ready for selling. Cash allowance is also included for the capital

requirement, which will cover any unforeseen or emergency expenses. In total, the company will

need Php 96,000 which will require each of its 6 founders to contribute Php 16,000.

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Income Statement

Sales: By selling our products at Php 899/unit and offering 10% discounts to customers who utilize

their loyalty cards, our company will incur net sales of Php 26, 970 on its first month of selling via

online marketing, Php 44, 501 on its second month, and so on and so forth. Appendix 26.

Cost of Goods Sold: The table above shows the breakdown of the direct costs associated with the

production of the sandal and the pouch provided by the suppliers. Appendix 27.

Promotional Expenses: The company, to cover for the printing of tarpaulins, posters, and calling

cards, will incur the promotional expenses listed above.

Rent Expenses: Rent expense will not be paid monthly, given that Yapak Designs aims to

participate in select bazaars only. On the months where it will not participate in bazaars, the

company will rely on online sales for revenues.

Prototype Expenses: Yapak Designs first batch of sandal prototypes was free of cost. However, the

company had a supplier manufacture a sample pouch, which cost Php 125. For its second batch,

costs will already be incurred for the manufacturing of sandals. For its second round of prototypes,

Yapak Designs will receive a sandal prototype for each style in all 3 colors (2 designs x 3 colors = 6

prototypes total); only one prototype pouch will be produced, given that the brand will only offer 1

uniform color and size for all orders.

Transportation Expense: Transportation expense will be incurred from renting a simple SUV (to be

provided by one of the managers/founders of the brand) to pick up the finished products from the

manufacturer (when needed) and transport them from storage to bazaars, etc.

Miscellaneous expenses: Miscellaneous expenses cover other additional activities such as printing

business plans, paying for other petty cash expenses, etc. For example, a miscellaneous expense of

Php 125 was incurred last October 2016 to pay for the printing.

Cash Flow Statement

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 On its first month, Yapak Designs paid out cash to cover for the transportation, rent, and

gasoline needed for visiting and contacting potential suppliers and manufacturers. Since there were

no finished goods available for sale during its first month, Yapak did not receive cash from

customers or spend for marketing, rent, and promotional expenses. To print its first business

proposal draft, the company had to shell out money which was recorded under miscellaneous

expenses. Lastly, to obtain its first prototype for the products pouch, the management needed to

pay the potential supplier a fee.

The company only engaged in investing activities during the month of November, wherein

capital was collected from its 6 founders and fixed assets were purchased. During its second month

of actual operation, Yapak Designs also paid in full the price demanded by suppliers for the

manufacturing of the first and only batch of sandals.

Yapak Designs began selling and operating December 2016 (since this would be when

finished goods would be available for pickup from manufacturers.) Revenues were received from

customer transactions that took place online and in bazaars. Furthermore, rent would usually be paid

for the month before the actual bazaar/event, and marketing, miscellaneous, and transportation

expenses would also be incurred as necessary for selling and operation activities.

Throughout the period, Yapak Designs will have no financing activities, given that they are

not planning to obtain loans or any other liabilities. Investing activities primarily contain the capital

to be contributed by each founder and the shelling out of cash for product development and

purchasing of fixed assets.

This statement allowed us to obtain the ending cash balance for each month, which will be

plugged into the companys balance sheet. Appendix 24.

Balance Sheet Statement

18
 The balance sheet contains the cash balance values solved from the cash flow statement, the

companys fixed assets/booth fixtures (assuming no depreciation,) prepaid rent, and its inventory

value. The inventory was computed by multiplying the number of units leftover in storage (obtained

by subtracting from a total of 200 the projected number of units sold) to the direct costs associated

to the manufacturing of each unit (provided by the supplier.) Furthermore, prepaid rent is only

recorded and considered an asset when the company shells out money for its payment and again, the

company will obtain no liabilities throughout the period. Appendix 25.

19
 Appendix

APPENDIX 1: Porters Five Forces Model for Footwear Industry

FORCES FACTORS ASSESSMENT AND OVERALL

DESCRIPTION ASSESSMENT

Number of Competing HIGH. International

Firms brands had been
capitalizing on the
opportunity to grow their
businesses in the country.

Size of Competing HIGH. Most competing

Firms firms are internationally
known brands that have
Rivalry
expanded globally.
Among MID-HIGH
Competing Similarity of Products MID. Products available
Firms in the market are foldable
ballet flats.

Falling Product Prices MID. This has been a

strategy for local brands
in order to attract the
customers of the
international brands.

Barriers to Entry to the LOW. International

Market brands had been entering
the market recently.

Brand and Customer LOW. Consumers are

Loyalty driven by the bandwagon
or trends of the industry.
MID
Capital Requirements MID. Industry requires
labour and capital-
intensive equipment.

21
 Lack of Distribution LOW. Number of
Threat of Channels distribution channels
New present, with the
Entrants opportunity to venture
into internet retailing.

Saturation of Market MID. International brands

had been coming in, but
consumers enjoy a variety
of brands in the market.

Price of Substitute HIGH. Substitute

Products products are sneakers,
flats, and heels; which are
Threat of relatively expensive
Substitutes compared to sandals. LOW

Switching Costs for LOW. Sandals are one of

Consumers the cheapest footwear in
the market.

Number of Suppliers LOW. Suppliers are

limited since the product
offering is unique, i.e.
foldable sandals.

Bargaining Switching Costs for HIGH. Possibility of not

Power of Raw Materials retrieving quality inputs HIGH
Suppliers for the product.

Substitution of Raw LOW. Materials must be

Materials foldable and apt for the
product to provide
comfort and durability.

Switching Costs to LOW. Most brands would

Bargaining Competing Brands or price their products
Power of Substitutes competitively. HIGH

22
Consumers Number of Buyers HIGH. There is a sizable
market for sandals.

Differentiation of MID. Products have little

Product to no product
differentiation, except for
lifestyle footwear offered
by the likes of Nike and
portable footwear.

Volume of Purchase LOW. Erratic buying

patterns for sandals since
this is not a necessity for
all.

APPENDIX 2: Euromonitor Market Data

23
24
25
 APPENDIX 3: Internal Factor Evaluation

Strengths Rate Rating Weighted

Score

1. Unique functional design 0.15 4 0.06

2. Relatively new positioning as 0.12 4 0.48

portable sandals

3. Aligned branding 0.1 3 0.03

4. High team morale 0.08 3 0.24

5. Up-to-date sandal design 0.09 3 0.27

Weaknesses

1. Limited distribution channels 0.1 2 0.2

2. No established loyal 0.08 1 0.08

customers

3. Long production time (2 0.09 2 0.18

months)

4. No company website 0.09 1 0.09

5. Cost of material is relatively 0.1 2 0.20

high (given that it includes a
pouch)

Total Weighted 1 1.83

APPENDIX 4: External Factor Evaluation

Opportunities Rate Rating Weighted

Score

26
1. High demand for portability. 0.12 4 0.48

2. Increasing demands for 0.1 3 0.3

convenience and services.

3. Square Demographic Scenario 0.12 3 0.36

in the Philippines.

4. Fast growth in internet 0.09 3 0.27

retailing.

5. Increased spending power 0.11 3 0.33

across SEC ABC1

Threats

1. Limited choices for supplier. 0.08 2 0.16

2. Rainy season in the 0.1 1 0.1

Philippines.

3. Existing big brands in the 0.13 2 0.26

footwear industry.

4. Fast moving trends. 0.09 3 0.27

5. Technological advancement in 0.06 3 0.18

the footwear industry.

Total Weighted 1 2.71

27
 APPENDIX 5: Summary of Survey Results

A. Consumer Behavior and Preferences

1. Choose your top 3 reasons why you would but a pair of sandals.

Comfort 103 93.6%

Style 95 86.4%

Need/Necessity 74 67.3%

Following the Trends 26 23.6%

Brand 19 17.3%

Out of Impulse 9 8.2%

Other 4 3.6%

2. How much are you willing to spend for a pair of sandals?

More than PHP 700 35 31.8%

PHP 401-500 20 18.2%

PHP 501-600 18 16.4%

PHP 601-700 18 16.4%

PHP 300-400 12 10.9%

Less than PHP 300 7 6.4%

TOTAL 110 100%

3. Which brand(s) would be your go-to places to buy a pair of sandals?

28
 Payless 13 11.8%

Charles and Keith 12 10.9%

H&M 12 10.9%

Zara 11 10%

Forever 21 8 7.3%

Topshop 7 6.4%

Aldo 6 5.5%

Rubi 6 5.5%

CLN 5 4.5%

Parisian 5 4.5%

Cotton On 5 4.5%

FitFlop 5 4.5%

Birkenstock 4 3.6%

Call It Spring 4 3.6%

Naturalizer 4 3.6%

Steve Madden 4 3.6%

4. Choose your 5 preferred styles for a pair of sandals.

Style 2

86 72.8%

29
Style 7

74 67.3%

Style 9

54 49.1%

Style 5

54 49.1%

30
Style 11

50 45.5%

Style 4

40 36.4%

Style 13

40 36.4%

Style 12

31
 39 35.5%

Style 8

37 33.6%

Style 6

29 26.4%

Style 1 27 24.5%

Style 10

13 11.8%

32
 Style 3 7 6.4%

5. Choose your 6 preferred colors for a pair of sandals.

Black 100 90.9%

White 91 82.7%

Brown 80 72.7%

Beige 77 70%

Light Brown 69 62.7%

Bone 67 60.9%

Gray 43 39.1%

Salmon Pink 41 37.3%

Cherry Red 26 23.6%

Olive Green 19 17.3%

Serenity Blue 17 15.5%

Mint Green 13 11.8%

Pastel Pink 12 10.9%

Pastel Blue 5 4.5%

B. Product Research on Foldable Sandals

33
1. Willingness to Pay

PHP 501-600 29 26.4%

PHP 401-500 23 20.8%

PHP 601-700 21 19.1%

PHP 300-400 18 16.4%

More than PHP 700 11 10%

Less than PHP 300 8 7.3%

TOTAL 110 100%

2. What are your concerns for the product?

Durability 63 57.3%

Comfort 19 17.3%

Quality 14 12.7%

Material Used 14 12.7%

Suitability to 8 7.3%
Weather Conditions
(i.e. Rain)

Style 5 4.5%

Other 5 4.5%

3. Likelihood of purchasing the product

Yes 98 89.09%

No 12 10.91%

34
 APPENDIX 6: Demand Forecast

The target market of Yapak Designs is women aged 15--29 of classes AB-C1 living in

Metro Manila. Since there is no data on the projections in population of 2016 in Metro Manila,

the data on year 2015 will be used to derive the estimation of the annual demand in 2016.

Presented below is the data on Metro Manila population during 2015 and age group of 15--29

years old. The Philippine statistics authority provided data of the population of each age group

for Metro Manila.

Projected 2015 Population by Age Distribution (Metro Manila)

Total Number of Women Aged 15--29 in Metro

Manila (2015)

Age Group Number of People

15--19 561,000

20--24 520,100

25--29 469,300

Total 1,550,400

Furthermore, Yapak Designs caters to the A, B, and C1 class because of the large buying

powers of these individuals especially that they are students, millennials, working professionals

and exposed to social media most of the time. According to the social research institution, Social

Weather Station, about 10% families of the total population in Metro manila have a monthly

income of 50,250 pesos. As shown in the tables below, 10% of the population in Metro Manila

35
are from class AB-C1. An estimation was calculated to get the total number of people aged 15-

-29 that are in families who earn a monthly income of 50,250 and up.

Total Number of People Aged 15-29 That Are in Families Who Earn a Monthly Income of
50,250 and Up

# of people aged 15-29 that are in families

who earn a monthly income of 50,250 and
up

Total (1,550,400x .10) 155,040

Based on the survey results of Yapak Designs, the respondents were asked if they are

willing to buy Yapak Designs based on the product description. Findings show that 89.09% of

the total respondents were willing to buy Yapak Designs. From this, the total estimated market

based on the number of people aged 15-29 who are from class A to C1 can be concluded that

138,125.14 of them are willing to buy Yapak Designs. Also based on the questions asked in the

survey such as How frequent will you buy the product? the average purchase units of Yapak

Designs totaled to 5.99. This is then translated to the total demand of Yapak Designs, which is

827,369.57 sandals annually. Below is the annual demand table of Yapak Designs.

Annual Demand of Yapak Designs

Total percentage of the target market that are willing to use the
product (based on survey results)

Total percentage of the target 89.09%

market that are willing to use the
product

36
 Total 138,125.14

Total market of the product

Average annual purchase of the 5.99

product

Total demand 827,369.57

Below is the annual demand forecast that is calculated based on the survey results, Yapak

Designs objective, and target for the market share in the industry. Ideally, the group wants to

target a 1% market share. With this, the group concludes that the ideal total demand of Yapak

Designs is 8,274 units. The units demand for Style 2 is 4,299 and Style 7 with 3,975 pairs.

Annual Demand Forecast Based on Survey and Target Market Share

Year Annual Demand Estimate (units) Product Mix (units)

Total Target Total Style 2 Style 7

Market Market Demand (51.96%) (48.04%)
Share

2016 827,369.57 1% 8,273.70 4,299.01 3,974.69

Based on the demand forecast, the target units of sandals is ideally 8,274 units. However, due to

the lack of capital and market reach, the company will produce an initial unit of 200 sandals for the first

year to be adjusted based on the demand.

APPENDIX 7: Supplier Network Development

Goals Timeline

Contact foldable sandals and October 4-November 15

37
 pouch manufacturer

Start producing foldable sandals November 1-December

and pouch 20

Foldable sandals manufacturer

Procedure Results/Desired Results

Research for foldable sandals manufacturer The group is targeting on looking for
Marikina-based suppliers to capitalize on the
idea of style, durability, price, and comfort.

Contact at least two Marikina shoe and pouch Both Teana Shoe Manufacturing and Tambuli
suppliers Shoe Shop provide handmade sandals and
bags.

Compare and negotiate with the two suppliers Selection will be based on the quality, and
price of the sandals and pouches. A plant visit
will also be scheduled.

Start prototyping for both sandals and pouch Both suppliers were given the same style and
for the two manufacturers color for the sandals and bags. The prototypes
were both sent back to the group for decision-
making.

Selection of supplier Quality and overall looks of the pouches were

both the same for the two brands. However,
Teana Shoe Manufacturing was not true to
their words and decided to increase their
prices on the group. Based on material
flexibility, quality, and comfort of the sandals,
the group decided Tambuli Shoe Shop to be
the supplier for both sandals and pouches.

38
 APPENDIX 8: Criteria for Distribution Channels

Category Criteria Weight

Cost Rent Expense 0.20

Consignment fees 0.08

Location Distance from consumer 0.08

demographics 0.09
Accessibility 0.15
Image/Reputation

Consumer Profile Foot traffic in the venue 0.15

Consumer demographics 0.13
Consumer geographic 0.12

APPENDIX 9: Bazaars List

Name Location Date

Silver Bells Century Mall: Events December

Place 17-18, 2016

Noel Bazaar SMX Convention Center, December

Pasay 15-18

Piazza Bazaar Zen Garden, Ateneo de February 27-

Manila University March 3

APPENDIX 10: Definition of Roles in the Organizational Structure

39
CEO (Chief Executive Officer)

In charge of overseeing the activities of the business, making key executive decisions,

and providing strategic direction in the company.

COO (Chief Operating Officer)

Tasked to oversee the supply chain and production management of the company,

ensuring efficiency and quality of the operations.

CMO (Chief Marketing Officer)

In charge of all marketing activities, including but not limited to brand management and

product activation efforts, to create awareness of the brand.

CFO (Chief Financial Officer)

Responsible for recording and monitoring the inflow and outflow of cash in the

organization, forecasting financials of the business, and making financially sound decisions

beneficial for the company.

CIO (Chief Information Officer)

Responsible for the information management activities of the company such as social

media management, data gathering from focused group discussions, etc.

CSO (Chief Sales Officer)

40
 Tasked to seek for avenues to distribute the products such as bazaars and online retail and

to spearhead creative and sustainable sales promotion strategies to influence customer purchase.

41
 APPENDIX 11: Gantt Chart of Activities
Week (From October 4 to January 3, 2017)
Activities 1 2 3 4 5 6 7 8 9 10 11 12 13
(Oct 4- 11) (Oct.11- (Oct.18-25) (Oct.25- (Nov. 1-8) (Nov.8-15) (Nov.15-22) (Nov.22-29) (Nov.29-Dec.6) (Dec.6-13) (Dec.13- (Dec.20-27) (Dec.27-Jan. 3)
18) Nov.1) Dec.20)
Contact
Supplier
Prototyping
FGD
Production
Bazaars
Selling
42
 APPENDIX 12: Risk Assessment

Risk Degree of Degree of Prevention Plan Contingency Plan

Probability Risk

Delivery High Mid Order 1-2 weeks in Create forms to

Delays advance for emergency accommodate orders and
stock. personal delivery.

Manufacturer Low High Create an online form for

backs out interested buyers
to accommodate pre-
orders.

Contact back-up
Constantly establish a
suppliers.
communication through
Manufacturing Mid High asking for updates on Outsource materials from
Production production. different suppliers.
Delays

Low demand High High Aggressive promotional Create promotions such

for the product and marketing efforts as 15% off for 3 days
and initiatives to create only.
awareness.
Tapping into influencers
to promote the product.

Insufficient Low Mid Preparing for Create an online form for

Supply of emergency stock based interested buyers
Finished on reordering point to accommodate pre-
Goods from forecasts. orders.

High Number Low High Coordination with Product warranty or free

of Dissatisfied suppliers for quality replacements for any
Customers inspection of the defects.
products.

43
APPENDIX 13: Monochromatic color scheme

APPENDIX 14: Scenic views and Flatlay

APPENDIX 15: Themed Posters

44
APPENDIX 16: Fashion bloggers

45
 APPENDIX 17: Product Development Gantt chart

Goals Timeline

Brand Image September 26- September 30,

2016

Product Ideation September 26- October 4, 2016

Initial Production (Prototype) October 18- November 8, 2016

Feedback Engagement October 18- November 8, 2016

*Product Revision Between October 18- November

8, 2016

Mass Production November 1- December 20,

2016

Month (per week) September October November

Task 1 2 3 4 1 2 3 4 1 2 3 4

Brand Image

Product Ideation

Initial Production

Feedback Engagement

*Product Revision

Mass Production

APPENDIX 18: Product Development Plan

Brand Image

46
 Procedure Results/Desired Results

Come up with Brand name Come up with a brand name that encapsulates
the brands product and identity in a catchy
one/two word Brand name
Brand name: Yapak Designs

Conceptualization of theme Have a general overarching theme for all

posters, designs, layouts, etc.
Theme: Minimalistic theme

Production of Logo Stick with the minimalistic theme

Logo:

Collection of pegs Gather different style pegs to pattern all the

promotions with
Pegs: Monochromatic backgrounds and
sceneries, and Flatlays

Product Ideation

Procedure Results/Desired Results

Conceptualization of product Came up with a concrete product to innovate,

produce, and sell
Product: Sandals

Study the market and the competitors Recommend the positioning and marketing
strategies based on the consumers needs

Research on available sandal designs Come up with unique designs that tailor to the
demands of the consumers as well

47
 Research on available sandal materials Find quality and durable materials that can
provide style and comfort when assembled

Research on available pouch designs Come up with a multifunctional and compact

design that could fit a foldable sandals

Research on available pouch materials Find quality and durable materials that can be
used for style and functionality

Survey dissemination Better grasp on the consumer behaviour and

demand

Initial Product Development Adjust the initial product design and features
based on the survey results

Study product demand Define the production capacity based on

willingness to buy of the market

Initial Production

Procedure Results/Desired Results

Find supplier Partner with a supplier that can provide the

companys needs at a low cost

Produce a sample Produce a prototype to ensure that the product is

what the company desires

Feedback Engagement

Procedure Results/Desired Results

Tap on random sample of target market and ask Learn about the strengths, weaknesses, and
for feedbacks opportunities of the prototype

*Product Revision

48
 Procedure Results/Desired Results

Adjust the necessary features needed from the Come up with the best version of the product
Feedback Engagement before mass production and selling

* Repeat if needed.

Mass Production

Procedure Results/Desired Results

Bargain with supplier Compromise with supplier on a lower cost for

production of the sandals

Produce desired amount of sandals with consistent Have sufficient amount of sandals to sell in the
quality various channels of the company

APPENDIX 19: Direct Competitor Layout

Brand Brand Message Description of Products Target Market Price

Renegade Everyday leather Synthetic leather Simple and Casual Php 1,800
Folk sandals handcrafted in materials Women, Middle
Manila. Designed and crafted by Class SEC BC1,
local artisans Students and
Light Working women
Flat and hard soles
Plain and patterned
designs
More variations of style
and color

49
Call It Spring Home to the latest Synthetic leather Simple and Classy Php 1,800
footwear, Call It materials Women, SEC BC,
Spring reflects up to Designed and produced Students and
the minute trends that internationally Millennials
are easy on the pocket Light
book. Slim and flat soles
Simple and classy
designs
Some have heels
More variations of style

Birkenstock High-quality materials Latex and cork Casual Women, Php 4,500
for unforgettable materials SEC AB1, Students
comfort Designed and produced and Millenials
internationally
A bit heavy
Thick and hard soles
Plain and simple
designs
More variations of color

Primadonna Primadonna is a Leather and suede Classy Women, Php 1,200

strong and competitive materials SEC BC, Working
shoe brand that Designed and produced women
always carries the internationally
seasons latest trends Light
and must-haves. Slim and thin soles
Feminine and classy
designs
Some have heels
More variations of style

50
Aldo ALDO specializes in Leather, plastic, and Elegant Women, Php 2,000
high-quality fashion suede materials SEC AB, Working
footwear and Designed and produced women
accessories offering internationally
an unparalleled Light
shopping experience Slim and thin soles
with an energetic vibe. Simple and elegant
Built on the core designs
values of Love, Some have heels
Integrity and Respect, More variations of style
the company places a
premium on working
to enrich the
communities in which
its employees live and
work.

Celine CLN continues to Leather, plastic, and Fashion savvy and Php 1,500
deliver comfortable suede materials Classy Women,
and fashion-forward Designed and produced SEC ABC1,
pieces spanning internationally Students and
footwear, apparel and Light Working women
accessories. Slim and thin soles
Feminine and classy
designs
Some have heels
More variations of style

Tonic Tonic's bags and Leather and Fashion bloggers Php 890
shoes take pride in Plastic/Jelly materials and Trendy
celebrating the beauty Designed and crafted by Teenagers, SEC
& excellence of local artisans BC, Students and
Philippine taste and Light Millennials
workmanship. Thick and rubbery soles
Trendy designs
Some have heels
More variations of style

51
 Melissa Melissa Shoes are for Plastic/Jelly materials Fashion bloggers Php 3,250
Shoes walking and for Designed by popular and Trendy
dazzling. artists Teenagers, SEC
Heavy AB1, Students and
Thick and high soles Millennials
Futuristic and trendy
designs
More variations of style

Yapak Designs Bring style Synthetic leather Simple and On-the- Php 899
anywhere, one step materials go Women, SEC
at a time. Designed and crafted by ABC1, Students,
local artisans Millennials,
Light Working class,
Flat and foldable soles Fitness Enthusiasts
Simple and minimalistic
designs
Adjustable straps
through hook
Portable

APPENDIX 20: Indirect Competitor Layout

Brand Brand Message Description of Products Target Market Price

Fitflop At Fitflop, we believe EVA materials Casual yet Classy Php 5,250
that for a shoe to Internationally designed Women, SEC AB,
really be cool, its got
Light Students and
to be comfortable.
Thick and Shock- Working women
absorbent soles
Casual and Sleek
designs

52
 Payless Pay less for style! Leather, plastic, latex Simple Men and Php 1000
materials Women, SEC BC, (Sandals)
Internationally designed Students and
Various styles and Working Adults
designs (Sandals, Heels,
Rubber Shoes, etc.)
Cheap

Shoebox&me Express yourself Synthetic leather Simple and Cutesy Php 600
through your shoes. material Women, SEC BC,
Locally designed Students
Mostly Doll Shoes
Light
Casual designs

Sanuk Sanuk provides Cotton and cloth Laid back Men and Php 2,500
creatively inspired materials Women, SEC BC1,
yet distinctively Internationally designed Students and
designed footwear Light Working Adults
products for the Espadrilles
global outdoor Simple designs
community.

Toms With every pair of Cotton and cloth Laid back Social Php 2,200
shoes you purchase, materials Advocates, SEC
TOMS will give a Internationally designed ABC1, Students
pair of new shoes to Light and Working
a child in need. One Espadrilles women
for one. Simple designs
Social entrepreneurship

Havaianas Havaianas are the Rubber material Chill and outgoing Php 1,500
best rubber flip-flops Internationally designed Men and Women,
in the world! Light SEC ABC1,
Slippers Students and
Simple and Sleek Working women
designs

53
Butterfly Give your busy feet a Synthetic leather and Simple and On-the- Php 800
Twists break with Butterfly cotton materials go Women, SEC
Twists ballerinas. Internationally designed ABC, Students and
Redefining style and Light Working women
comfort, these chic Doll shoes
shoes are ideal for Casual and Simple
any situation. designs
Portable

APPENDIX 21: Competitive Positioning Matrix

CPM

Renegade Folk Annie and Lori Call it Spring Aldo

Weight
Rating Weighted Rating Weighted Rating Weighted Rating Weighted
Score Score Score Score

Advertising 0.2 3 0.6 2 0.4 2 0.4 4 0.8

Product Quality 0.2 2 0.4 2 0.4 4 0.8 4 0.8

Price 0.1 2 0.2 2 0.2 2 0.2 2 0.2

Competitiveness

Management 0.05 2 0.1 2 0.1 2 0.1 3 0.15

Customer Loyalty 0.1 2 0.2 1 0.1 3 0.3 4 0.4

Brand Awareness 0.1 1 0.1 1 0.1 2 0.2 4 0.4

Sales Distribution 0.1 1 0.1 1 0.1 2 0.2 3 0.3

Customer Service 0.1 2 0.2 2 0.2 2 0.2 2 0.2

Responsiveness 0.05 1 0.05 2 0.1 2 0.1 2 0.1

TOTAL 1 1.95 1.7 2.5 3.35

54
 CPM

Primadonna Celine Melissa Shoes Tonic

Weight
Rating Weighted Rating Weighted Rating Weighted Rating Weighted
Score Score Score Score

Advertising 0.2 3 0.6 4 0.8 1 0.2 2 0.4

Product Quality 0.2 3 0.6 3 0.6 3 0.6 2 0.4

Price 0.1 2 0.2 2 0.2 3 0.3 1 0.1

Competitiveness

Management 0.05 2 0.1 3 0.15 2 0.1 3 0.15

Customer Loyalty 0.1 3 0.3 4 0.4 2 0.2 2 0.2

Brand Awareness 0.1 4 0.4 4 0.4 2 0.2 1 0.1

Sales Distribution 0.1 3 0.3 3 0.3 1 0.1 1 0.1

Customer Service 0.1 2 0.2 3 0.3 1 0.1 2 0.2

Responsiveness 0.05 2 0.1 3 0.15 1 0.05 2 0.1

TOTAL 1 2.8 3.3 1.85 1.75

CPM

Birkenstock Yapak
Weight
Rating Weighted Rating Weighted
Score Score

Advertising 0.2 2 0.6 3 0.6

Product Quality 0.2 4 0.8 2 0.4

Price 0.1 1 0.1 3 0.4

Competitiveness

Management 0.05 3 0.15 3 0.15

55
Customer Loyalty 0.1 4 0.4 2 0.3

Brand Awareness 0.1 4 0.4 1 0.1

Sales Distribution 0.1 2 0.3 1 0.2

Customer Service 0.1 2 0.2 2 0.3

Responsiveness 0.05 1 0.1 4 0.2

TOTAL 1 3.05 2.65

APPENDIX 22: Competitive Positioning Grid

APPENDIX 23: Initial Capital Investment

56
 APPENDIX 24: Cash Flow

APPENDIX 25: Balance Sheet

57
 APPENDIX 26: Income Statement

APPENDIX 27: COGS

APPENDIX 28: SWOT Analysis

STRENGTHS WEAKNESSES

Unique and functional design, Long production time of 2 months

No loyal customer base
offering portable footwear Costs of raw materials are high
Lack of substitutes for raw

58
 Styles are in line with the current
minimalist trend in the market
Material used is durable
OPPORTUNITIES
Increase spending power for middle
class consumers
Growth of internet retailing
Steady increase in sales for
womens footwear
materials
Limited supplier network
Limited distribution network
THREATS
Growing presence of international
brands
Growing trend of brand-
consciousness
Preference for affordable sandals
Preference for athleisure wear
59
 Works Cited

Chayka, Kyle. The Oppressive Gospel of Minimalism. The New York Times, 26 July

2016. Web. 20 October 2016.

Passport: Apparel and Footwear in the Philippines. February 2016. Euromonitor

International. Web. 2 October 2016.

Passport: Footwear in the Philippines. February 2016. Euromonitor International.

Web. 30 September 2016.

Philippine Statistics Authority. Projected Populations by Five -Year Age Group and Sex, by

Region and Province, and by Five -Calendar Years: 2000-2040 (Medium Series) [PDF].

Retrieved from https://psa.gov.ph/sites/default/files/attachments/hsd/article/Table%204.pdf

Social Weather Station. Family Income Distribution in the Philippines, 1985-2009: Essentially

the Same [PDF]. Retrieved from

https://www.sws.org.ph/pr20110321%20-%20Family%20Income%20Distribution%20by

%20Mr%20Tomas%20Africa_FINAL.pdf

59