Student’s name
Institution
 
 
 
 
1.0 Executive Summary
Footwear Exclusive is a productive enterprise with Return on Investment worth $20 million annually. The company plans to expand its territories and explore its supply chain to African countries as a technique of market expansion. Currently, Footwear Exclusive supplies South Americans.
The expansion in supply will see the firm investing $ 9 million more to capture the targeted market. The company will adopt digital marketing strategies, especially through social media such as Instagram, Facebook, and Twitter so as to capture the targeted market. The ROI is expected to increase substantially.
1.1 Model
The Footwear Exclusive will implement online auction model. The online auction will be supplemented by the social media-based ad techniques. The customers from Africa including big retailers and individual buyers will be expected to join the online community. Therefore, active links will be implemented in the ad platforms such as Facebook, Instagram, and Twitter so that the interested persons can make online purchases that are delivered to their premises.
The online auction will not only target African market, but the expectation is high as other nations far much beyond Africa and America is expected to join the online community and make purchases. The next mission will entail capturing the whole world. Specific positive reviews will be updated in the online platforms as a way of encouraging members to develop a likeness for our goods.
1.2 Purpose
The created online auction model will have many positive outcomes. It will result in increased customers and ROI. The mission is to go beyond African market. The African market is not captured by most competitors in the footwear industry. Also, online auctioning is not much covered by local competitors. Therefore, it is a gap Footwear Exclusive would like to utilize to maximize its returns.
1.3 Competitors
The online auction and fast delivery process expected to hit the market will make Footwear Exclusive high-class. The fast delivery ad on the firm’s website and social platforms will act as a technique of luring other interested customers to the company. Also, the feeling of being part of the online enterprise community will be a plus in the industry.
1.4 Market Overview
The expected market is big with the use of the online platform. Even though African countries are the primary target, other nations are expected to follow suit and adopt the use of our footwear. The target audience is people between age 16 and 45, which forms the most active range of buyers to footwear products. The footwear industry is rapidly growing. Therefore adoption of online auctioning is a certain way of ensuring positive ROI. About prices, we will maintain average prices for our products as a way of luring customers.
1.5 Market Analysis
(Facts, 2009).
The global footwear is forecasted to increase in coming years. Therefore the need to upgrade tactics so as to capture the market is necessary.
(Facts, 2009).
The footwear retail market is predicted to decrease in coming years. Therefore, it poses a serious concern. Based on the statistics, the Footwear Exclusive plans to improve its online strategy and improve the outcome.
(Facts, 2009).
Going by the chart, women makes the majority of consumers. Therefore, regarding gender, we will produce more women, then men, and lastly children as a technique to capture more market.
1.6 Brief Statement of Financial Request
The Footwear Exclusive will set aside $9 million in expanding its retail business and establishing online auction. That would involve setting up a user-friendly website, which more dynamic to increase the experiences of consumers with the company.
2.0 Business and Industry Analysis
2.1 Industry Profile
The Footwear Exclusive is a company venturing in footwear products. The company by rate is medium in size. However, the plan is in place to make it world class and to begin competing with other companies such as Adidas, Nike, and Puma. The company has shown positive trends regarding ROI for the past decades. Also, Footwear enterprise has lots of South American retailers who buy in bulk and sell locally. Therefore, the urge to expand the market and compete with first class companies is underway.
The company started five years ago. It started off as a local footwear retail. Later on, it picked up to sell beyond its borders and invaded the South American nations, Brazil being the principal target. The same way it captured South American continent, the same is expected to be applied for the African continent. The trend is yet to move on until it captures the worldwide market.
2.2 Competitor Analysis
The footwear industry has giants including Adidas, Nike, and Puma. The competition is, therefore, very stiff. Nike specifically, has achieved a lot in the footwear industry. For example, their logo is even known by children. It is common everywhere. The same applies to Puma and Adidas. However, the companies fail to form an online based community in which consumers share their views on the taste of the product. Also, the companies lack the online based auction, which is accompanied by fast deliveries.
Therefore, the void to adopt online auction is an opportunity that the firm plans to adopt so as to compete with top notch companies. The rate of growth as indicated in the past five years is positive; thus the trend is expected to continue for years to come.
3.0 Product and Market Analysis
3.1 Product Description
The footwear will be an exclusive product and intends to improve consumer’s experience by far. The taste for women will be given priority. The shoe produced are of high quality and lasts longer than usual. Therefore, it saves a lot for the consumers. They are made in a sexy mode to compliments women’s beauty. Men’s footwear is efficient, durable, and strong. As a result, men who walk long distance can use them safely without friction or fatigue. Furthermore, various brands are decorated to fit exactly the costume per individual’s taste and fashion.
3.1 Target market
Women, in specific, needs more elegant commodities. Putting their need in mind, Footwear Exclusive produces trendy products to fit into the women’s needs. The large target group is concentrated on age group between sixteen-year-old and 45-year-old individuals. Therefore, trendy products are the principle idea behind Firm’s productions and marketing. The company intends to expand its horizons beyond imaginations. Therefore, the company expects to make its brand world recognized.
3.2 Promotion
The main marketing plan for Footwear Exclusive is social media based ads. Creating an online community and referral programs is a sure way of capturing market beyond imaginations. As a result, the largest retailers in various parts of the world will be captured and sales will be great. Also, through our websites, the user-friendly and dynamic interface will act to lure customers. Footwear Exclusive will implement different logo so as to identify itself to consumers all over the world.
3.3 Manufacturing information
The Footwear uses a mixture of materials to capture a variety of consumer’s experiences and tastes. Polyester, which is accrued from Malaysia is one of the abundant raw material in the footwear products. Rubber is also one significant raw material used in the manufacture of various footwear, and it is sourced from Thailand. Synthetic leather and the leather raw material is sourced from China. Synthetic leather is used widely since it has a light texture and consumers tend to have a positive attitude towards it. Also, cotton is widely used to complete the customers’ experiences.
4.0 Financial Feasibility Analysis
4.1 Expected Revenues
The expected revenue is positive, and it ranges based on sex. The forecast gives women high purchasing value, followed by men, and lastly children.

Africa Market Target
sex Pricing plan
(By average price)
Projected sales ($)
women $ 100 105
Men $ 80 90
children $ 50 50

4.2 Expected Expenses
The probable expenses are on website creation and maintaining online platforms apart from general expenditure used in manufacture. The website creation and maintenance will cost $20, 000 per annum, the spending on production is in the region of $ 20 million and other miscellaneous expenditure totaling to $ 3 million.
4.3 Proforma Income Statement
The expected assets at the end of the year are $240 million. The expected liability and equity are in the region of $220 million. Therefore, the projected ROI when the African market is captured will be $ 20 million. Considering the forecast, the plan is expected to accrue more revenue during the period so as to gain more ROI.
4.4 Ratio Analysis
The Footwear Exclusive Company spends a fixed amount worth $220 million on its productions. The expected sales at the end of the year are 240 million. Other variable expenses are estimated to be around $3 million. Therefore, the break-even point on sales is calculated as follows.
The contribution margin ratio = (sales – variable expenses)
240 – 3 = 237
Break-even point = (fixed expenses/contribution margin ratio)
220/237 = 0.92
 
 
References
Facts, P. (2009). The Global Footwear Market: Athletic and non-Athletic Shoes. Packaged Facts.