MISSION STATEMENTInsane Kicks’ mission is to be the global leader in
quality, variety, and innovative styling for the athletic shoe market.
We are committed to continuously strengthening our brands and products to improve our competitive position.
We are consumer focused and therefore we continuously improve the quality, look, feel and image of our products and our organisational structures to match and exceed consumer expectations and to provide them with the highest value.
We are committed to providing our employees with a dynamic and interesting work environment that offers opportunities for improvement and growth.
We are committed to increasing value for our shareholders through smart and effective business practices while maintaining a reputation of ethical and socially responsible behavior.
INSANE KICKS STRATEGIC VISION STATEMENT
To provide top quality and innovation for the footwear market by using quality materials and extensive training to provide excellent quality for the value.
To maximize shareholder value through cash flow generation, managing costs, and above average earnings per share, return on investment, and stock price through value enhancing growth, improved products, and a focus on continuous improvement.
To capitalize on the growing internet market by gaining increased market share.
To increase wholesale segment market share through increased spending on advertising and improved target market advertising.
To better our employees through added training and learning opportunities, allowing for growth and opportunity within the company
INSANE KICKS’ STRATEGY?
DifferentiationWe want to provide the top quality shoes with more features, styles, and models than the competition.
HOW WILL WE ESTABLISH DIFFERENTIATION?
Followed a Differentiation Strategy Utilize above average marketing budgets, Six
Sigma, TQM, and Best Practices Training to increase productivity, product awareness
Increase SQ Rating, Image Rating, and number of models to separate our products from the competition.
Continue to invest in the business through upgrades, expansions, and increased construction
Higher than average price Utilize Retail Support
BEGINNING STRATEGY YEARS 11-13
Improve productivity through plant upgrades Increase SQ Rating Increase advertising budget Increase Capacity Increase number of models available Increase Retailer Support Increased % of Superior Materials Increased Six Sigma/TQM expenditures Increased Best Practices Training Pay Dividends
IMPA
CT Y
EA
RS
11-
13 Ins
ane Kicks
Built Latin America Plant in Year 12
SQ Rating 5 7
Advertising Budget $7,000 $11,000
Models Available 200 350
Retailer Support 400 600
Superior Material Usage 54% 74%
Six Sigma/TQM Expenditures $.50 $1.60
Best Practices Expenditures $1,000 $2,900
ENDING STRATEGY YEARS 14-18
Maintain strategy’s from Years 11-13 Increase Celebrity Appeal (Identified Weakness)
Increase Market Share Repurchase Stock to increase EPS, ROI, &
Stock Price Invest in expansion Reduce expenses More competitive pricing by region rather
than across the board pricing strategy Yearly inventory sales to manage inventory
costs
IMPA
CT Y
EA
RS
14-
18 Ins
ane Kicks
Expanded capacity Years 14,15,16, & 17
SQ Rating 8 9 (AP & EA) 10 (NA & LA)
Advertising Budget $12,000 $19,000
Models Available 350 350
Retailer Support 700 700
Superior Material Usage 84% 100%
Six Sigma/TQM Expenditures $1.70 $2.50
Best Practices Expenditures $4,333 $4,667
IMPA
CT Y
EA
RS
14-
18 Ins
ane Kicks
Celebrity appeal Year 14: 70 Year 15: 265 Year 16: 265 Year 17: 155 Year 18: 55
Market Share Improved Overall Repurchased Stock in years 13,
15, 16, &18 Expanded Capacity Years 14-17 Reduced Expenses
Best In Industry Expenses and/or Profit each year
Adjusted pricing according to region & competitors highest price
Inventory Ranged from 16-44 days
Rate each competitor as: 1 = weakest, 10 = strongestThe higher the number, the stronger their standing.
Numbers based on year 18
Competitive Factor A B C D E F G H I J
Cost Control 6 8 7 10 5 3 2 4 9 1Quality 8 7 9 6 4 3 5 1 10 2
Brand Image 7 8 6 9 4 2 1 5 10 3
Models 6 10 7 8 5 4 1 3 9 2Product Availability 7 1 10 2 3 5 4 6 9 3Retail Outlets 9 10 6 7 4 2 3 4 8 8Inventory Control 4 10 9 8 7 3 2 5 6 1Production Capacity 5 7 6 10 8 4 2 3 9 1SUBTOTAL 52 61 60 60 41 26 20 31 70 19
AVERAGE (Add column then divide by the number of factors)
6.5 7.6 7.5 7.5 5.1 3.3 2.5 3.9 8.8 2.4
CLOSEST COMPETITION (BASED ON YEAR 18)
More models available (NA)
More retail support Free Shipping Lower Prices
Higher revenues Year 18
Market Share-wholesale
Private Label market share
More retail support Lower Prices
AirMark Destroyer Shoes
CLOSEST COMPETITION (BASED ON YEAR 18)
Celebrity Appeal More pairs sold Higher wholesale
market share Lower Prices
Higher retailer demand
More pairs sold Higher wholesale
market share Lower Prices
Cicks Athletic Shoes Bionic!
YEA
R 1
9 &
20
C
OM
PETIT
IVE A
CTIO
NS
Insane Kicks
Increase Celebrity Appeal Reach a 10 in my Asia Pacific SQ
Rating Increase Capacity Produce More Private-Label Build EA plant
LESS
ON
S L
EA
RN
ED
Insane Kicks
Take Risks!Stay true to your strategy
Pay attention to details
Monitor profit margins closely
Establish goals each year
It takes a lot of time to do well!!