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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 OMalley Colleen Pascarella


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Table of Contents Table of Contents Business and Product Description Industry and Competitive Review Macro-Environmental Forces Market Segmentation Market Segment Target Markets Competition Analysis Positioning Strategy Strategy and Competitive Advantage Operations Strategy SIPOC Process Flow Chart Quality Assurance Plan and Operations Processes Recovery Plan and Reactive Quality Assurance Organizational Structure and Resource Allocation Marketing Mix Promotional Mix and Promotional Budget Market Forecast Contingency Plan Financial Narrative Conclusion Financial Statements, Ratios, and Assumptions Bibliography Page 1 Page 2 Page 2 Page 3 Page 3 Page 3 - 4 Page 4 Page 4 - 5 Page 5 - 6 Page 6 Page 6 - 7 Page 7 Page 8 Page 9 Page 10 Page 10 - 11 Page 11 - 15 Page 13 - 14 Page 15 - 17 Page 17 Page 17 - 18 Page 18 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 Eclipses 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

Economic Environment:
The nation's GDP increased 5.7% in the 4th quarter of 2009, regardless of the United States current recession. (Bureau, 2010). The current recession has caused a decrease in disposable income, but customers will be more likely to purchase Eclipse shoes because they would be buying two shoes in one. Eclipse will also save costs by outsourcing its manufacturing to a developing country. Most of the top footwear industries focus on athletic footwear. This provides Eclipse with an easier entrance into the market. Refer to Strategy and Competitive Advantage on page 5 for further insight in the competitive environment. The technological advances from the internet have revolutionized the way shoes are distributed, advertised, and sold. Although the development of mass production drastically changed shoe manufacturing, technological advances are irrelevant to the manufacturing process. With many shoe companies outsourcing their products, they have to follow international regulations and US customs policy. Eclipse is contracting Columbian Logistics who is familiar with the frequently changing laws. Womens fashion has changed dramatically over the years and still changes from season to season. Eclipses Graphic designer will keep up to date with the changing shoe trends each season and adjust the products as needed.

Competitive Environment: Technological Environment: Political Environment: Sociocultural Environment:

Market Segmentation~ Market Segments Refer to Table 2 for potential market segments. Table 2
Working Single Women:
Single women make up 44.5% of the 25 to 34 year old population. Unmarried women over the age of 16 make up 54% of the employed labor force. A growing number of young adult women in their early thirties are postponing or choosing not to have children so they can work. Between 1976 and 1998, the percentage of women without children increased from 15.6% to 27.4% (Global, 2008). Even in the recession, women are still buying products that offer convenience. In 2008, 40.1% of females agreed that they would pay more for products that make life easier as opposed to 38.9% in 2007 (Mintel-footcare, 2009). Eclipse shoes will work great with working single women because they can wear the shoe as a heel while at the workplace, but can easily convert it into a flat when they have a night out on the town. As of 2000, 61% of women over the age of 16 were in the work force, compared to 74% of men. This includes 80% of mothers with kids aged 6 to 18, 75% of mothers with children aged 3 to 5, and 50% of mothers with infants. The overall labor force participation rate of parents with children under 18 in 2007 was 71.0% for mothers (Current Population, 2008). Eclipse shoes can be beneficial for working mothers because they can wear the heel while at work, and convert the shoe to a flat when they have to perform their family errands such as grocery shopping or going to a soccer game. Not only will the shoe be more suitable, but it will also increase the womens, as well as their childrens safety while driving. Of the 3.2 million youth who graduated from high school between October 2007 and October 2008, 2.2 million (68.6%) were attending college in October 2008. College enrollment rates were 71.5% for women and only 65.9% for men. In 2009, 57% of all college students were women. Experts believe that by the year 2018, 59% of all college students will be women (Marklein, 2010). Women ages 18 to 24 have a desire to purchase a number of shoes, but are usually without the funds to do so. They also consider shoe shopping to be a pleasure and will buy shoes they want, but do not need (Patricia, 2008). Eclipse shoes can help college women so when they enjoy a night out, they can look stylish with a fashionable heel and then turn the shoe into a flat when they need to walk home.

Working Mothers:

College Women:


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Women Baby Boomers: HealthConscious Women:

Traveling women:

Women over 65 are more likely to have bought just 1 pair of shoes in the past year, which may be due to the lack of comfort of fashionable footwear. Women over 55 usually consider their feet hard to fit, with 39% of these women claiming that this was a problem (Mintel-foot, 2009). Eclipse shoes allow these women to still look up-to-the-minute, and also allow them to be comfortable with the touch of a button Women who wear shoes with good or average support, such as sneakers, are 67% less likely to report foot pain later in life than those individuals who wear shoes that offer poor support, such as high heels (Mintel-foot care, 2009). Eclipse shoes will offer comfort, but will be more practical and useful for women of all ages since the pain can be reduced by switching to the flat shoe. Frequent travelers need to consider strict package size and weight requirements when flying. However, even when traveling by car, train, or bus, the space available for luggage is restricted. Eclipse shoes will provide convenience for traveling women so they dont have to pack more shoes then needed and add extra weight to their luggage.

Eclipses Target Markets Working Single Women and Working Mothers For the first time in history, there are more business women than men. As of January, 2010, women make up a record breaking 50.3% of the total workforce (Mintel-Women, 2010). A woman's week now is a day longer than it was 5 years ago. Over the last decade, the number of working women grew by 200 million (Global, 2008). This trend means that more women will need to look professional in the workforce, but still be able to accomplish all their other roles and duties, whether it may include being a mother, friend, wife, socialite, etc. This increases the sales of Eclipses shoes since women are looking for style, comfort, and convenience. College Women Over the years, more women are beginning to attend higher education universities. In 2009, 57% of college attendees were women; the highest percentage in history (Marklein, 2010). Also, according to the U.S Census Bureau, 31% of women between ages 20 and 25 obtain a bachelor's degree compared to 26% of men (U.S. Census, 2008). This increase in college women means that more women will be going into the professional workforce, and will need a comfortable but stylish shoe when giving a presentation for class or for the night life. Another important factor among college women is the increasing buying habits of women ages 18-24. In a 2007 survey, women ages 18-24 reported that 77% of women have bought at least 1 pair of non-athletic footwear in the past 12 months ("Recent purchase," 2007). This makes college women a very attractive market to focus on. Competition Analysis~ Camileon Heels is a direct competitor that has a similar product and target market. They offer a shoe that has different inch heels which are interchangeable, but do not convert to a


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completely flat shoe. The chance of misplacing a heel is at their disadvantage. An indirect competitor is Rollasoles who offer a disposable flat shoe from a vending machine placed in clubs that is inexpensive and convenient, but only targets the socialite market. Eclipse also views Aldos, Nine West, Kenneth Cole, Michael Kors, Steve Madden, Guess Shoes, Forever 21, Charlotte Russe, etc. as indirect competitors. These companies are at an advantage because they are well established, and have broad product lines that give their consumers choices. However, many of these companies are very large and not as innovative. They are also at a disadvantage since they are not transformable. Eclipses biggest strengths are the ease of the innovative heel that flips in instead of being removed like Camileon Heels, as well as the lower price (refer to price strategy on page 13). Weaknesses of Eclipse are customers initial distrust in the flip mechanism of the heel and low initial brand loyalty among consumers. Complementary products to Eclipse shoes include companies that provide other transformable clothing, appeal, and accessories such as the 100 ways dress by Victorias Secret, transformable bags like the Bagjack messenger bag, and transformable belts, which switch different colors on either side. Shoes that are seen as substitutes include the indirect competitor, Rollasoles, and other kinds of womens shoes like wedges, sandals, and other brands of heels. Positioning Strategy~ Eclipse is differentiated from the direct and indirect competitors listed above through versatility as well as convenience, comfort, and design. The shoes are top fashion trends and produced with top quality that are made for everyday tasks. Eclipse will differentiate from Camileon Heels, by offering the heel of the shoe to flip in with the push of a button instead of removing the heel completely, creating the ultimate competitive advantage. In Figure 1, Eclipse product lines are the most versatile shoes in the womens fashion Figure 1 footwear industry. Since Camileons heels are removed from the shoe and are more costly, they are less versatile. Rollasoles, are only slightly versatile, but they are the cheapest in the market. The indirect competitors all range in low versatility, but have varying costs


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from the low cost Forever 21 to the higher end Michael Kors. Eclipse product lines are reasonably priced compared to the competitors falling in the middle range; however, they are more versatile than any of the competition. Eclipse's products are "Transforming the footwear industry one flip at a time," which tells customers the shoe is extremely versatile. The campaign theme is The shoe that never sleeps, which emphasizes that the shoes can be worn all day, any day. Strategy and Competitive Advantage~ Eclipses competitive advantage is the avoidance by niche strategy that focuses on growing the transformable shoe market. Eclipses innovative technology is protected by a patent for 20 years which increases the companys competitive advantage by keeping competition from making a similar product. Within the targeted market segment, Eclipse will gain a competitive advantage through its pricing strategy. Even the higher priced Executive ($153) is 27% less expensive than the lowest priced model sold by the sole direct competitor, Camileon Heels ($210) (Camileon, 2008). Eclipse will stay competitive by seasonally modifying the products in terms of color and design according to the current trend in the shoe market and introducing the Prestige in year 4. Amity Advance and Columbian Logistics are also essential to Eclipses competitive advantage. Outsourcing the manufacturing process to Amity Advance in Thailand reduces production costs while providing Eclipse with a high quality product. Eclipse chose Amity Advance because they have a history of producing high quality women shoes (Amity Advance, 2010). Refer to Contingency Plan on page 16 for more information on Eclipses backup manufacturer and third party distributer. Amity Advance is joined with SATRA, who is the largest international research organization, to better improve their products. SATRAs testing procedures ensure the reliability of the flip mechanism. Refer to Quality Assurance Plan on page 8 for further details on SATRAs certain testing procedures. Operation Strategy~ Eclipse uses a "producer-wholesaler-retailer-consumer channel" distribution strategy. Once shoes are produced from Amity Advance, they are shipped to Columbian Logistics Network for packaging, storage, and distribution to retail stores. The retail stores that will carry the product include Nordstrom's, Macy's, Lord and Taylor's, JCPenny's, DSW etc. Since Eclipse


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is working with retailers all over the US, the company does not have a strict territory. The retailers will have the choice of which stores to sell the shoes in. Eclipse will use a contractual vertical marketing system because Amity Advance, Columbian Logistics, and retailers are independent firms that are joined by a contract. Through contracts, each member of the distribution channel will have a vertical relationship with one another to ensure cooperation between them. This will help the company increase its efficiency, which will reduce costs incurred in various channel activities. As Eclipse grows, the company will rely more on Amity to produce greater amounts of shoes to meet the higher demand. Eclipse will seek cooperation and advice from both Amity Advance and Columbian Logistics on manufacturing issues and logistics concerns so Eclipse can improve the relationships with them. The main cooperation issue the company faces is the ultimate power the retailers have over Eclipse. The company will work with well established department stores and retailers to stock the shoes, but since Eclipses brand name is new, it may prevent retailers from buying. In order to cooperate with retailers, Eclipse will seek feedback through semi-annual customer satisfaction survey check sheets, which evaluate delivery time, responsiveness, and relationships. SIPOC Refer to Figure 2 for Eclipse SIPOC Diagram. Figure 2


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Process Flow Chart Refer to Figure 3 for the Process Flow Chart. Figure 3 Figure 3


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Quality Assurance Plan and Operations Processes See Figure 3 on page 7 for Process Flow Chart. Eclipses shoe design will be electronically sent to Amity Advance (F1) who will develop the prototype and contact Eclipse, with tracking information (Q1), once they have shipped out the model (F2). Once Eclipse approves the model, the order is electronically sent to Amity (F3), who will again confirm the order; thus reducing the likelihood of communication issues (Q2). To keep quality issues to a minimum, several proactive quality control mechanisms are set in place. First, SATRA, who offers a variety of quality control measures, will ensure that Amity manufactures Eclipse products to exact specifications through a durability test and wear trials (Q4). Second, Eclipse requires that every manufactured order undergoes several in house quality controls, including flipping the heel 300 times. As the reliability of the flip mechanism may be a concern for the customers, a machine will apply a pressure of 280 pounds, which is twice the weight of the average American women, on a sample of 10% of the shoes manufactured to ensure that the flip mechanism is intact and can hold the weight (Average America, 2010). Third, Eclipses Director of Operations and Finance will visit Amity Advance semi-annually to ensure that the quality controls are in place, and the manufacturing process operates as negotiated in the contract (Q3). Columbian Logistics will coordinate transportation of the finished shoes to their warehouse in Michigan (F5). The contract with Columbian Logistics includes insurance for damaged and lost items which guarantee that Eclipse will be compensated for any issues related to transportation (Q5). The Director of Operations and Finance will regularly visit Columbian Logistics warehouse which is located 20 minutes from Eclipse headquarters to ensure that the shipped shoes are undamaged (Q6). To assure that retailers will receive the correct order, Eclipse will input the data and send it back to the ordering retailer. Eclipse will then take the order and forward it to Columbian Logistics (F6) who sends a confirmation to Eclipse (Q7). The transportation from Columbian Logistics to the retailer is also covered by insurance (F5)(Q8). Eclipse will use a Fixed Interval, Variable Quantity approach for its inventory. To calculate safety stock, Eclipse will use the average variability for monthly shoe sales to estimate sigma for a six month period (831.5) and convert it to daily sigma (151.823) (Factors Influencing Consumption). Lead time is 2 months (60 days) and the order interval is once a month (30 days) (Barattiero, 2010). Eclipse will have a 97.725% service level (Z=2). Therefore, Eclipse will maintain a safety stock of 2,892 pairs of shoes. Columbian Logistics will monitor the distribution


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patterns to forecast necessary inventory adjustments in advance. Eclipse will also communicate with retailers to make order quantity adjustments to ensure enough products are being manufactured. Recovery Plan To reduce customer skepticism, Eclipse will offer a warranty for any issues related to the flip mechanism. Claims can be filed on Eclipses website or by calling customer service. The customer will send the broken item to the headquarters. Once Eclipse verifies that the shoe is covered under the warranty, Eclipse will send a pair of shoes from the safety stock stored at Columbian Logistics warehouse. Within a week, Eclipses Customer Representative will contact the consumer to make sure the replacement product satisfies the customer. Reactive Quality Assurance Eclipses reactive quality assurance consists of three components. Eclipse will use Pareto Charts for all three components to identify and prioritize major quality issues. First, if former or prospective retailers indicate that they are not interested in purchasing Eclipse products, they will be asked to indicate why (R1). Second, a survey is made available on Eclipses website, which will provide insight from the customers. Third, all products that are sent back to Eclipse due to warranty claims will be inspected for the cause of the product failure. Organizational Structure and Resource Allocation~ Refer to Figure 4 for Eclipses Organizational Chart. Figure 4 Eclipse, Inc December 31, 2010
Linn Baumgardt President

Amity Advance Co, LTD Manufacturing

Colleen Pascarella Director of Operations and Finance

Amanda Hudson Director of Sales, Marketing and Design

Martine Jackson Accountant

Caitlin OMalley Sales Representative

Graphic Designer

Zachary Hally Customer Service and Sales Representative

The six founders operate the company in every aspect other than the shoe and web design. Eclipse employees will dedicate a minimum of 40 hours per week. The Graphic Designer leads to a competitive advantage by creating a unique and current shoe design each spring and fall that appeals to the target market, and by keeping the website up to date. At the end of year 2,


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an additional Customer Service and Sales Representative will be hired to accommodate for the growing amount of customer calls and new store contracts. Outsourcing the manufacturing process increases the production capacity, and allows for an inexpensive production increase as the company grows and demand rises. Eclipses main focus is on the sales and marketing of the final product. Because of this, it would be beneficial for the company and the employees to be paid on a salary basis. Refer to Table 3 for salary and compensation breakdown. Table 3
Eclipse, LLC
President Director of Operations and Finance Director of Sales, Marketing, and Design Accountant Sales Representative Graphic Designer Customer Service and Sales Representative

December 31, 2010

Salary Range (25% - 75%)
$102,080 - $170,000 $62,900 - $137,020 $65,350 - $141,270 $45,900 - $78,210 $36,460 - $75,120 $32,600 - $56,620 $23,590 -$38,000

Projected First Year Salary

$103,000 $65,000 $66,000 $46,000 $37,000 $44,000 $24,000

Mandatory Payroll Deductions~

SS: $6,386 WC: $195.70 SUTA: $243 FUTA: $434 SS: $4,030 WC: $123.50 SUTA: $243 FUTA: $434 SS: $4,092 WC: $125.40 SUTA: $243 FUTA: $434 SS: $2,852 WC: $87.40 SUTA: $243 FUTA: $434 SS: $2,294 WC: $70.30 SUTA: $243 FUTA: $434 SS: $2,728 WC: $83.60 SUTA: $243 FUTA: $434 SS: $1,488 WC: $45.60 SUTA: $243 FUTA: $434

Standard Benefits* $7,204` Standard Benefits* $6,824` Standard Benefits* $6,834` Standard Benefits* $6,634` Standard Benefits* $6,544` Standard Benefits* $6,614` Standard Benefits* $6,414`

Total Benefits
$102,945.30 $66,993.50 $67,939.60 $49,017.60 $40,502.70 $47,125.40 $28,203.40

*Refer to financial note 22 and 35 on page 22 for a breakdown of the benefits and calculations. Through employee salaries, standard benefits, and additional service benefits, Eclipse hopes to maintain employee satisfaction, and have a low employee turnover. Management will evaluate each employee annually, and decide upon potential salary increases. To keep employees motivated and enthusiastic, bonuses will be awarded when deemed appropriate. Marketing Mix~ Eclipse starts in the introduction stage of the Product Life Cycle. The company is making a small profit due to the fact that Eclipse is recovering from research and development costs as well as heavy spending on promotion and advertising. In the first year, Eclipse starts with two product lines, the Eclipse Executive (targeting working women) and the Eclipse Limelight (targeting college women). In year 4, the Eclipse Prestige (targeting working women) will be added. Refer to Business and Product Description on page 1 for product details. Each year in the spring and the fall, all three shoes will come out in a slightly different design including an additional color, a different print, or an added feature including a strap, button, bow, etc. to keep


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up with current fashion trends. Eclipse will provide a display sample in retail stores to convince women to try the product, and show that it is a safe, convenient, and comfortable shoe. Even though Eclipse is using a premium pricing strategy, the pricing is still low compared to Camileon heels, who are pricing their heels from $210 to $325, and considering the shoes are 2 shoes in 1. With the launch of Eclipse Prestige in year 4, Eclipse moves to the early growth stage with a 23.5% growth. New competitors are starting to enter the market, but marketing brand loyalty and the heavy advertising of Eclipse Prestige will keep the customers interests. Pricing remains constant since the new competitors entering the market justifies the low pricing used in the introduction stage. Sales start to increase more rapidly, and will still increase after year 5. A multi-product and a multi-branding strategy will be used for the three shoes. The multiproduct strategy enables customers to clearly recognize the Eclipse brand on all Eclipse shoes. While the company is marketing multiple products under the same brand name, Eclipse is also using a multi-branding strategy to aim the individual shoes to their target markets. The size of the shoe packaging is just big enough to fit the shoes when the heel is flipped in to save on material and shipping costs. The box will be designed similarly to other companies shoe boxes, but will stand out with its classy but fun look. Eclipse Executive will be packaged in a black box with red script writing, and Eclipse Limelight will be in a black box with green script writing. Eclipse Prestige's black box with gold script writing will be larger since it is a boot. The boxes will be made from cardboard and C2S art card (Shanghai, 2010). Packaging will not play a big role in promoting the shoes because an actual shoe will be on display. The size, company name, shoe model, color, and logo will be displayed on all sides of the box so its visible. Distribution strategy A selective distribution strategy is appropriate since the shoes are considered a shopping product. The end consumers may spend time comparing alternatives, such as other high heel shoes, boots, or flats. Eclipse will be selling the shoes through various retail outlets (Refer to SIPOC on page 6). Selective distribution reduces competition, and allows suppliers to have higher sales. The company will use a "push strategy" to convince the target retailers to offer the shoe in their stores. Eclipse will rely on its Sales Representative visiting the retail locations to push them to purchase a trial run. Eclipse will also use a pull strategy since the company will be


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using its marketing strategy to create instant awareness of the shoes, and encourage the end customers to seek them out in retail stores. Communication strategy Through the introductory phase, it is especially important that Eclipse creates awareness through an immense advertising campaign. This will create interest for the product by providing a solution for the need of convenience, comfort, and style. It is essential that Eclipse drives the product into the public eye and educate the target market on this unique product. Each year, Eclipse will spend 24% of its revenues on promotional activities, which is referred to in total promotional budgeting in Table 5 on page 13. This large initial budget will be crucial for creating a positive buzz about the shoes. Advertising expenses will peak in the months leading up to spring and fall because many women shop during the change of seasons. While shopping, women will be more likely to try on the shoes if they have previously heard about them. Additionally, with the launch of a new product in the fall of year 4, Eclipse will increase the promotional budget to 32% in order to raise product awareness for the new merchandise. Refer to Table 4 below for promotional activities. Table 4




Research shows that respondents aged 18 to 34 are likely to use Internet as the primary source of entertainment. Eclipse will rely heavily on online advertisement to spread the word about Eclipse its product to as many women as possible. Eclipse will use Facebook to gain recognition about the product through creating and modifying a "Fan Page." Essentially, Eclipse will have the ability to generate awareness, connect with customers, and build relationships with supporters of Eclipse all at no cost. Eclipse will also use banner ads on Facebook to reach out to the target market. Facebook's technology will allow Eclipse to place banner ads on the pages of women ages 18-40 who are living in the US; totaling 35,795,900 active Facebook members (Facebook.com, 2010). The top two search engines that women ages 18+ use are Google and Yahoo, which Eclipse will use to advertise Eclipses website through search engine results. As web-users identify keywords, like high heel, the companys website will be provided in the search results. Google and Yahoo track and report data so Eclipse can monitor results. Eclipse will purchase 5 full page ads per year in 5 different magazines including Vanity Fair, Glamour, Cosmo, Self, and InStyle, which were all ranked within the top 10 magazines for women ages 18-34 in July 2008. The magazines selected will provide a wide range of women readers in the ages of the target market (Mintel- foot, 2009). Eclipse will install Tall Boys into 14 malls in major cities across the US. The Tall Boys will be located in the pathways of the mall to grab the attention of the shoppers. They will be up for month long periods, 5 months a year (On-Mall, 2010). Tradeshows are a fundamental element to Eclipses promotional mix. Tradeshows will allow Eclipse to set up exhibits to show the products, give away free samples, distribute information to consumers about the innovative flip mechanism, and network with retailers and others in the industry.


The bulk of the company's promotional budget will be in the beginning months of the business before the shoes are launched. The Internet, magazines, and tradeshows will be the main areas of mass advertising. Refer to Table 5 on page 13 for the promotional budget.


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Units of Costs No Cost $.64 per click Flat Fee Frequency of Use No Limit Average 79 clicks per day 500,000 Max Annual Search Query Limit 5 months per mall location per year 5 ads per year 5 ads per year 5 ads per year 5 ads per year 5 ads per year 25 show exhibits per year Total Cost of Activity Per Year No Cost $18,454.40 $750

Table 5
Promotional Activity Online Facebook Fan Page Facebook Banner Google Search Engine Click Malls in Major Cities and Suburban Areas Tall Boys Magazines Vanity Fair Glamour Cosmopolitan Self InStyle Tradeshows Total $7,000 per issue $5,000 per issue $5,000 per issue $5,000 per issue $5,000 per issue $10,000 per show exhibit $35,000 $25,000 $25,000 $25,000 $25,000 $250,000 $456,704.40

$750 per banner


Personal selling will be an important part of the promotional mix as Eclipse aims to attract many retail stores. Eclipse will be using a personal sales force where the Sales Representative will primarily be in charge of direct marketing to the local retail stores, colleges, and businesses. The Director of Marketing will also be involved with personal selling in the first 6 months to help establish and build support for the company. While costly, personal selling provides the company with the ability to communicate directly with retailers, and the companys sales force will be able to modify the sales message according to the particular customer. The Sales Representative will obtain direct feedback, allowing Eclipse to continuously improve. Price strategy Eclipse is using product line pricing with a premium pricing strategy. Eclipse Executive and Eclipse Prestige are the more expensive, premium products and Eclipse Limelight is more economically priced. Offering a premium pricing strategy will allow the company to reach both target markets who have different buying powers. The typical retailer markup in the footwear industry is 72%. The markup for Eclipse products will be 80% due to the company being a new a company and its need to compensate for research and development costs (Shoe Stores, 2010). Refer to Table 6 for the pricing of each shoe. Table 6
Eclipse Executive Eclipse Prestige Eclipse Limelight Price to Retailer $85.00 $100.00 $50.00 Price to End Customer (with mark-up) $153.00 $180.00 $90.00

Business women have a stronger buying power and are more likely to be willing to buy higher priced shoes. Eclipse Limelight is sold for a cheaper price because it is made of a cheaper


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leather product than the Eclipse Executive and Eclipse Prestige. The selling price to retailers and wholesalers will not fluctuate over the 5 years, but the industry markup and prices to the end customers may fluctuate slightly. Constant prices from year to year are the industry norm for the footwear industry (IBISWorld, 2010). After the first 3 months of initial selling in 2011, Eclipse will offer business to business discounts depending on the size of the retailers and wholesalers order. If a retailer or wholesaler increases their order by 25%, they will receive a 5% discount. Eclipse will start this discount after the first 3 months, causing the trial runs to be excluded, where the increase in order size could be the largest. The 5% discount will encourage the stores to increase their order so they may receive the discount, while still allowing Eclipse to make a larger profit. Market Forecast~ 5-years sales forecast The market potential for Eclipse consists of working women and college women in the United States. According to the U.S. Census Bureau in 2008, there were 66.9 million working women and 6.4 million college women. Therefore, the total market potential in 2011 would be roughly 73.3 million women (US Census, 2008). Refer to Table 7 for the 5-years sales forecast. Table 7
2011 2012 2013 2014 2015 75,854,234 (69,254,915 73,300,000 73,930,380 74,566,181 75,207,450 Target (66,900,000 working; (67,498,437 working; (68,078,923 working; (68,664,402 working; working; 6,599,319 Market* 6,400,000 college) 6,431,943 college) 6,487,258 college) 6,543,048 college) college) Market Share** Unit Sales Unit Price 0.034107% 25,000 (18,750 Executive; 6,250 Limelight) $85.00 Working $50.00 College 0.03408% 25,195 (18,896 Executive; 6,299 Limelight) $85.00 Working $50.00 College 0.0369912% 0.045295% 0.05344%

34,065 40,537 27,583 (23,164 Executive; (23,106 Executive; (20,687 Executive; 7,494 Limelight; 3,407 8,107 Limelight; 9,324 6,896 Limelight) Prestige) Prestige) $85.00 Working $50.00 College

$85.00 Working $85.00 Working $50.00 College $50.00 College $100.00 Prestige $100.00 Prestige $2,684,340 $3,301,851 $1,906,250 $1,921,110 $2,103,195 ($1,968,940 working; ($1,964,101 Executive; Total ($1,593,750 working; ($1,606,160 working; ($1,758,395 working; $374,700 college; $405,350 Limelight; Revenue $312,500 college) $314,950 college) $344,800 college) $340,700 Prestige) $932,400 Prestige)

*In Table 7, Target market growth is based on estimated population growth of women, which was reported at 0.86% annually. After finding the growth of Eclipses entire target market, the company multiplied the target market by the percentage of the market that is working women (91.3%) and college women (8.7%) to break down the target market (U.S. Census Bureau, 2008).


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**Market share is calculated by taking the total target market and linking that to unit sales (target market x market share = unit sales). Eclipse is occupying less than 1% of the target market because the market is very large and some working women do not or cannot wear heels to work. -See financial note 11 on page 22 for explanations of unit sales, unit price, and total revenue. First year sales by month Refer to Table 8 for the first years monthly sales. Table 8
2011 Jan Feb Mar April

















Since Eclipse is established in January 2011, in Table 8, January, February, and March sales are $0 because it takes 3 weeks to manufacture the shoes, 4 weeks to ship the shoes from Amity Advance to Columbian Logistics, and another 3 to 5 weeks to ship the shoes to Eclipses various retailers (Barattiero, 2010). April sales are low since it is the first month of sales. Sales increase in May and peak in June. Sales decrease in July due to some of the retailers dropping Eclipses product lines after the trial run was not successful. Typical monthly sales peaks will occur in December for the Holidays and also April and September due to numerous fashion trade shows being held in February and August, and the new fashion being sold for the upcoming season. Fixed and Variable Costs See Financial Notes on page 22, note numbers 13, 17, and 18 for explanations of Eclipses variable costs in Table 9. Table 9 Table 10

See Income Statement on page 19 and financial notes for explanations in Table 10 of Eclipses Fixed Costs. Breakeven Analysis In Table 11, [32.85(.25)] + [58.995(.75)] = 52.458 923,260(Fixed Cost)/52.458 = 17,600 Pairs of shoes to breakeven (4,400 Limelight and 13,200 Executive). Eclipse will need .024% (17,600/73,300,000) of the target market to purchase a pair of shoes in order to breakeven. According to the first years monthly sales forecast, Eclipse will sell 17,600 total pairs and therefore breakeven by October 2011. Table 11


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Contingency plan~ In case an issue arises, resulting in a breach of contract between Amity Advance, Columbian Logistics, or one of the major retailers, Eclipse has developed alternative contingency plans. Eclipse has selected Bata Shoe of Thailand to be the backup manufacturing company because of their strong reputation for over 110 years. Eclipse will rely on Evans Distribution Systems in Michigan as the alternate third party logistics supplier, who offer innovative and flexible supply chain management solutions. If Eclipse should lose the business of a major retailer, Eclipse will temporarily redirect the focus of the sales team from maintaining the previously established relationship to finding new potential retailers. If an issue with custom regulations or inclement weather occurs, Eclipse will use the safety stock to satisfy demand. Financial Narrative~ Capital Formation Our debt, a $13,600 loan from Bank of America makes up 3.0% of our initial investment. The founders of Eclipse each contribute $10,000, totaling $60,000 which makes this contribution 13.1% of the total amount of capital that needs to be raised. Eclipse needs $382,783 from investors which makes up 83.9%. This amount will give investors voting control. The total money needed to start Eclipse is $456,383. Competitive Advantage Eclipse will gain a competitive advantage through the patented heel flip technology which allows Eclipse to compete based on a niche strategy. Eclipse has a high growth potential due to the patent issue which will increase barriers to entrance in the niche market for competitors. Based on our sensitivity analysis, our best case shows us selling 10% more goods and our worst case shows us selling 5% less goods, which exemplifies low investment risk Our IRR, (277.5%) is well above our weighted average cost of capital (28.4%) in both scenarios and even with a decline in sales our net present value is still positive ($1,112,511) which means value is added. In Eclipses best case scenario, net present value increases by over $300,000 ($360,793). Low risk is also demonstrated by a short payback period of only 1.14 years. Exit Strategy Eclipse plans to continue operations after year 5 due to a large growth potential. Eclipse plans to grow .86% each year after year 5 which makes the terminal value $3,991,464. Eclipse will continue to pay out dividends that are greater or equal to the percentage in year 5 (refer to financial note 28 for the percentage of dividend distributions). Business Evaluation NPV: $1,422,691, Terminal Value: $3,502,858, WACC: 28.45%, IRR:


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230.3%, MIRR 121.2%, Payback Period: 1.14 years. Our IRR and MIRR are so high because of our continuing cash flows after year 5. Conclusion~ Eclipse will be competing with well established companies in the mature footwear industry. However, Eclipse will use its patented flip heel technology to gain a competitive advantage allowing it to compete based on a cost focus strategy. The information provided shows that Eclipse has the means necessary to breakeven after only 10 months of operations, and continuous growth is present during and after the first 5 years of operations. Eclipses sales revenue increases from $1,906,250 in year 1 to $3,301,851 in year 5 and dividends to investors increase from 24% of net earnings in year 1 to 55% in year 5. The womens footwear market is expected to grow, giving investors an excellent opportunity to invest in a company that has a differentiated and economically priced product which gives Eclipse a competitive advantage in the footwear industry. Financials~


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Financial Assumptions~
Marketing Operations Management Finance 11,12,19 2,17,24,30 21,22 1,3 - 10,13- 16,18,20, 23 -29, 31- 35 Legal Entity: Eclipse, Inc. is an S Corp because we need to raise a large amount of capital in addition to the founders contribution. Also, a SCorp is taxed on a personal income level. Since Eclipse is a small company it will be unlikely that we will have more than 100 stockholders, which is the legal limit. Due to the need to raise enough initial capital, the founders had to give up their 51% ownership. 1 Cash: Our target cash balance is $412,703 and it consist of research and development expense, 2 months of supplies, 3 months of prepaid rent, utilities, telecommunication, employee taxes, website expense, and loan principal and payment, and 4 months of salaries and wages and marketing and promotion. Our total cash for each year (excluding inception) consist of cash and T Bills. Any cash amount above $236,957 (this is 1/2 of our target cash and will cover 2 months of expenses in the case no revenue is generated) will be distributed evenly into these accounts (6 month T Bill yields 4.5 %). Policy: Conservative, due to only moderate and predictable seasonality of the business. Eclipse, Inc. is an S Corp because we have fewer than 100 investors who own multiple shares (our share price is $50) and we wanted to benefit from not being taxed at the corporate level. The amount of contributed capital by investors is $442,703 ($60,000 of which was contributed by the founders). 2 Inventory: the manufacturer will charge 25% of our sales price per pair of shoes (Amity Advance). Our inventory is based off of the projection that Eclipse will buy 27,892 pairs of shoes during the first year of operations (6,973 of Eclipse Lime Light and 20,919 of Eclipse Executive) and sell 25,000 shoes (the extra 2,892 shoes are safety stock). 75% of the sales will come from Eclipse Executive while the remaining 25% will stem from Eclipse Limelight (see note 11). Eclipse sells 6,250 pairs of Limelight which equates to $78,125 that needs to be paid to Amity Advance for manufacturing or $12.50 per shoe. Additionally, Eclipse will sell 18,750 pairs of Executive which equals a manufacturing cost of $398,438 or


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$21.25 per shoe. Inventory is purchased one month in advance because it takes 3-4 weeks for the shoes to be transported to the ordering retailer. In year 4, Eclipse Prestige will be purchased for $25 (3,407 pairs in year 4 and 9,324 pairs in year 5). Returns and Allowances are also added to inventory. For each year we estimate that 0.1% of each shoe purchased will be return and added back to inventory. 3 A/R and ADA: Eclipse terms are net 15 with an interest of 2% for all outstanding balances compounded monthly until complete payment is made. 90% of sales are collected on account. We expect not to collect 1% of sales and will expense these sales and place them into our contra asset account, allowance on doubtful accounts. 4 Supplies: We expect each employee to use $343 of supplies each year and we keep an additional months worth of supplies on hand at all times. 5 Prepaid Rent: Rent is always prepaid a month in advance and is currently $1280 a month (Swisher, 2010). 6 Total Long Term Assets (P, P and E): Furniture and fixtures include 7 desks @$229.99 each, 7 desk lamps @$76.00 each, 7 desk chairs @$149.99 each, 7 filing cabinets @$129.99 each, 7 storage units @$169.99 each, 14 shelving units (2 shelves per employee) @$57.99 each, 1 conference table @$1,599.99, 10 conference chairs (extra chairs to accommodate guest or additional employees)@$189.99; Office Equipment includes 1 specialty Mac computer (for the designer to design shoes) @$1,199, 7 phones @$59.99, 1 laser printer @$1,599.99, 1 copier@ $499.99, 1 fax machine @$99.99, and 6 dell computers (1 for each employee except the designer) @599.98 each. Our Depreciation method is straight line and everything will fully depreciate in 5 years. In year 2 an additional employee is added and an additional phone, dell computer, desk, desk lamp, desk chair, filing cabinet, and 2 shelves are added. A patent is added at business inception and this it does not depreciate. Since our building is rented, all lease hold improvements will be completed by the owner. 7 A/P: 2/5 net 15 is our creditors, Columbian Logistics, Credit Policy. In our first year, Amity Advance did not extend a line of credit because Eclipse is a new company without payment history. Therefore, Eclipse buys inventory with cash the first year. 8 Accruals: Salaries are accrued on the 1st and 15th of each month 9 Long Term Debt: Our long term debt is 80% of furniture and fixtures and office equipment (see note 6). It was issued from Bank of America, has a monthly payment of $8,175, and has an interest of 8%. 10 Common Stock: $60,000 of common stock is the investment from the founders. Only common stock is issued since we are an S Corp. There are 90 units owned and each owner owns multiple units of stock. Each share is $50. We purposely gave the stockholders the majority vote so the investors can have a voice in the company. 11 Revenue: For the first year, the company is estimating sales to be 25,000 pairs of shoes for the 9 months the shoes are being sold. Using Crocs financials, they sold 45,000 pairs of shoes in the first 9 months. However, they had 11 employees and since they were bigger than Eclipse, we divided 45,000 by 11 and multiplied that by 7 to get a rough idea of how many pairs of shoes could be sold with our 7 employees. This gave an approximation of 28,500 pairs of shoes. With this number we decided to aim conservatively in the first year with 25,000 shoes (Crocs, 2010).Refer to the SIPOC diagram on page 6 for the number of stores our shoes are sold at. -The other years sales volumes are taking from Nine West; a similar high heel shoe company that fits more closely to Eclipse. This is because Crocs growth exploded in the first years. Nine Wests growth in their first 5 years of business was 0.78% in year 1, 9.48% in year 2, 23.5% in year 3, and 19% in year 4 (Nine West, 2010). -For the first 3 years of business, Eclipse is estimating that 75% of total sales will be from Eclipse Executive and that 25% will consist of Eclipse Limelight. These assumptions were made because the market for the Executive is much bigger than that of the Limelight. Although college women are only 9% of the size of the market of working women, Eclipse noted that not all professions require women to wear high heels. -Eclipse Prestige is launched in the fall of year 4 and is estimated to only take up 10% of total sales in 2014. Even though the company will only be selling the Prestige for the last 4 months of 2014, the company is confident that with the great amount of money going into advertising for Prestige it should make up 10% of our total sales. In 2015, it is predicted that selling the Eclipse Prestige will make up of 23% of our total sales. With this increase in sales, the percentage of sales for the Executive and the Limelight will drop to 57% and 20% of total sales, respectfully. Unit price is taken from adding a 75% markup to how much we pay for manufacturing. 12 Returns and Allowances: See note 2. The difference in the revenue and cost of goods sold for each shoe are recorded in this section. 13 COGS: The Eclipse Limelight cost $12.50, the Eclipse Executive cost $21.25 and the Eclipse Prestige cost $25 to manufacturer. 14 Depreciation: See note 6. In year 2 an additional employee was added so the additional depreciation is added due to the extra equipment. 15 Doubtful Accounts: See note 3. Doubtful accounts are expensed the year after they occur. 16 Utilities: Includes gas, water and electric utilities and were collected from Swisher Commercial Real Estate Agency with $150 as the monthly approximation. The cost of living in Ann Arbor, MI is the cheapest of all the cities in the U.S. and this is why the utilities expense is so low. 17 Warehouse and Distribution: For each pair of shoes sold, a cost of $4.50 is charged to store and distribute those shoes. See note 13 for COGS. (Nik Prabhakar from Capacity LLC, 19 Feb. 2010) 18 Liability Insurance: See unit cost of liability insurance in Marketing Section. Unit costs are applied to each shoe sold, See note 13 for COGS. 19 Marketing and Promotion: 24% of revenue for that year. 20 Research and Development: A onetime contracting fee for an engineer to create the flip mechanism on the heel of our shoes. 21 Salaries: See Pay and Benefits on page 10. In year 2 an additional customer service representative is added . 22 EmployeeBenefits: Standard Benefits costs include: $4,824 health insurance, 1% disability, $1,350 IRA. Does not include $5000 IRA employee contribution or cost for vacation, personal, or holiday paid days off. If a worker takes all 24 days off, this will cost the company: President: $9,516. Director of Operations: $6,000. Director of Sales: $6,092.40, Accountant: $4,246.08. Sales Rep: $3,415.44, Designer: $3,046.08, and Customer Service: $2,215.44 Standard Benefits include: flexible scheduling; Paid Holidays- employees have off New Years Eve, New Years Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Black Friday, Christmas Eve, and Christmas Day; paid personal days- 5 days (can accumulate up to 20 days over 4 years before the employee starts losing unused days); paid vacations- 10 days (2 work weeks); lunch breaks- 30 minutes a day; health insurance- $4,824 (includes life, illness, and dental) single coverage for all employees with $634 deductible and co-pays including- $20 physician/primary care visit, $217 hospital admission, $110 outpatient surgery; life insurance- $10,000 (included in Health Insurance Coverage); disability insurance- 1% of annual salaries; and simple IRA- we will match employee contributions up to $1,000 annually. Service Benefits include: expense reimbursement- mileage: $0.36 per mile will be reimbursed for business related travel; company credit cards- company credit cards will be given to the President, Director of Operations and Finance, Director of Sales, Marketing and Design, and Sale Representative; direct deposit- Eclipse will incur a $36 flat fee for direct payroll deposit for all employees. See note 21 for the number of employees. 23 Telecommunication: A Verizon monthly plan that cost $350 per month and includes high speed internet, 6 phone lines and 1 fax line. 24 Travel: Includes 2 trips to Thailand for the President to inspect manufacturing facility. Includes a flight $1,899 roundtrip, 5 night stay in a hotel $180.85 ($36.17 per night), meal price in hotel is $4.00 for breakfast, $7.00 for lunch and $8.00 for dinner (including snacks this roughly equals


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$25 a day for 5 days equaling $125) 25 Interest Income: Additional cash is invested the year following its excess. See note 1 for investments and percentages. 26 Interest Expense: Interest on 5 year Bank of America Loan is 8% is compounded monthly. 27 Net Income: Steadily increases each year. 28 Dividends: Dividends increase each year and they start at 24% of net earnings in year 1, increase to 34% in year 2, 36% in year 3, 45% in year 4 and 55% in year 5. 29 Current Ratio: Test the liquidity of our company. Compared to the industry average we are very liquid due to a high amount of current assets (inventory) and a low amount of current liabilities, most of our liabilities are long term which leads to the high liquidity. 30 Inventory Turnover: Shows how often our inventory turns over. Our inventory does not turnover as much as the industry average. 31 Average Collection Period: Shows how many days on average we collect our accounts receivable. Our collection period is very low compared to the industry due to our account receivable policy. See note 3. 32 Debt Ratio: Shows the portion of total assets financed by creditors. Our debt ratio is fairly low but the industry average is unavailable to compare it to. 33 ROE: Shows what return is earned on the common stockholders investment. Compared to the industry average we are doing sufficient. 34 Founders: Each founder contributed $10,000 dollars (6 founders X 10,000= $60,000) 35 Employee Taxes: Include SS: 6.2% of annual salaries. WC: 0.19% of annual salaries. SUTA: 2.7% for first $9,000 earned. FUTA: 6.2% for first $7,000 earned for each employee. See note 21 for number of employees.


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Amity Advance. (2010). Retrieved April 11, 2010, from http://www.amityadvance.com/ The Average American Women. (2010). Retrieved from http://www.inch aweigh.com/dietstats.htm.
Provided Eclipse with information on the weight for the average American woman.

Barattiero, Paul. (personal communication). President, Synergy Rehab Technologies, Inc. February 18, 2010.
President of medical shoe company that outsources their manufacturing to China. Received information on the outsourcing of the manufacturing including time of shipping and inventory.

Bright, Trent. (personal communication). Retirement Associate, Fidelity Investments. March 4, 2010.
Provided information through instant messaging on Fidelity website about the administrative costs for setting up Simple IRA retirement funds for employees.

Bureau of Economic Analysis. (2010, January) National Economic Accounts. Retrieved from http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm Online report giving GDP of the footwear industry. Camileon Heels. (2008). Retrieved March 8, 2010, from http://www.camileonheels.com/ Crocs Inc. (2010). Company Financials from 2003 - 2008. Retrieved from Mergent Online Educational Database. Retrieved from http://www.mergentonline.com/compdetail. asp?company=113414&type=compdetail
Mergent Online database gave annual reports of all financial statements for Crocs Inc. since they have been a publicly traded company. This information helped make financial statements. Also, Eclipse looked through annual reports to get a sense of a professional report and gather some ideas for the plan from this successful shoe company.

Current Population Survey, Bureau of Labor Statistics, (2006) "Table 4. Employment status by marital status and sex, 2006 annual averages"
The Bureau of Labor Statistics provided statistical information on working women according to their marital status. This information helped with the market analysis of single working women and working mothers.

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).
The Bureau of Labor Statistics gave statistical information for the market analysis of working mothers.

Current Population Survey, Bureau of Labor Statistics, (2008) Employment Characteristics of Families, "Table 6: Employment status of mothers with own children under 3 years old by single year of age of youngest child and marital status, 2006-2007 annual averages"
The Bureau of Labor and Statistics offered more statistical information on women who are mothers in the workplace.


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Employee Health Benefits Annual Survey. (2009). The Kaiser Family Foundation and Health Research & Educational Trust. Retrieved from, http://ehbs.kff.org/pdf/2009/7936.pdf
Report providing information on employee health benefits.

Factors Influencing Consumption; Experimental Analysis of Shoe Buying. (1954). In Construction and evaluation of estimates of monthly shoe sales. (Vol. 1 pp.82). Global working women on the rise. (2008). BBC News- UK- July 2008, Retrieved from http://newsvote.bbc.co.uk/mpapps/pagetools/print/news.bbc.co.uk/2/hi/business/7282920.stm
News report from BBC News giving information on the number of employed women and rate of increase in employed women.

Heelys Inc. (2010). Company Financials from 2003 - 2008. Retrieved from Mergent Online Educational Database. Retrieved from http://www.mergentonline.com/compdetail.asp? company=116290&type=compdetail
Mergent Online Database gave all of Heely's (a shoe company with a wheel in the heel) annual reports and financial statements. We used this information to help formulate financial statements.

Johnston, Michelle. (personal communication). CFO, Care Advantage, Inc. February 7 and 18, and March 3, 2010.
Sought information over several phone calls regarding financials and office size. Assisted in square foot estimate for office space, and ballpark figures that is a reasonable cost for rent, utilities, and telecommunications. Used Care Advantage's Workers Compensation percentage per employee (similar administrative office jobs).

IBISWorld. (2010, January). Footwear wholesaling in the US (42234).Retrieved from http://www.ibisworld.com /industry/keystatistics. aspx?indid=969
Online Report on Footwear wholesaling industry. Received data on industry number and revenues. Provided information key competitors, industry conditions, and market characteristics which were used for the financial statements.

Marklein, M.B. (January, 26 2010). College gender gap remains stable: women 57%. USA Today, Retrieved from http://www.usatoday.com/news/education/2010-01-26genderequity26_ST_N.htm.
USA today article that gave information about the growing gap of the amount of men and women attending college.

Mintel Group. (2008, July) Attitudes of women aged 18-34- US. Retrieved from http://academic.mintel.com/sinatra/oxygen_academic/search_results/show&/display/id=295898
Report from Mintel showing women ages 18-34 travel more frequently than older women. Discusses that they are also more likely to spend money and how education links to the desire to travel more.

Mintel Group. (2009, December) Foot care products- US. Retrieved from http://academic.mintel.com/sinatra/oxygen_academic/search_results/show&/display/id=393614.
Report from Mintel providing research and data about the number of women who wear high heels even though they cause pain. It breaks the women up through age brackets.

Mintel Group. (2008, July) Footwear Snapshots- US. Retrieved from http://academic.mintel.com/sinatra/oxygen_academic/search_results/show&/display/id=384556/ display/id=384556/display/id=385593#hit1
Gave information on the market share and strong competitors in the footwear industry.


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Mintel Group. (2010, June) Women now a majority in the workplace- US. Retrieved from http://academic.mintel.com/sinatra/oxygen_academic/search_results/show&/display/id=295898/ display/id=295898/display/id=295898/display/id=506327
This report by Mintel looks at how the number of women in the workplace has continued to grow over the years and provides relevant information about the target market.

Mintel Group. (2007, June) Womens dress and casual footwear - US. Retrieved from http://academic.mintel.com/sinatra/oxygen_academic/search_results/show&/display/id=226576.
This report by Mintel examines the buying habits of teens and shows that older teens are more likely to buy heels than younger girls. It also includes what women think about while shoe shopping as well as information regarding the market size of the footwear industry from 2002-2007. It examined the purchase history of the entire footwear industry in terms of the number of shoes purchased, the types of shoe, the cost, brand, and location purchased.

Nine West. (2010). Company Financials from 1989 - 1999. Retrieved from Mergent Online Educational Database. Retrieved from http://www.mergentonline.com/compdetail.asp? company=73205&type=financials&DataType=AsReported&DataPeriod=Annuals&DataArea=P L&DataRange=15&Currency=AsRep&Scale=AsRep&Submit=Refresh
Used Nine West's financial statements for their first 5 years to help us make our sales forecast for our first 5 years.

On-Mall Advertising Rates. (2010). Cambridge Side. Retrieved from http://mallimages. mallfinder.com/images2/Cambridge/mall-csg/mimages//csg.pdf
Gathered rates on mall advertising posters, floor decals, elevator doors, etc. and used pricing for Tall Boy posters.

Patricia, E., Bungert, J., & Arsen, J. (2008). Shoes, Non-Athletic. Encyclopedia of products and industries - manufacturing. Retrieved (2010, February 8) from http://go.galegroup.com/ps /retrieve.do?sgHitCountType=None&sort=RELEVANCE&inPS=true&prodId=GVRL&userGro upName=viva_jmu&tabID=T003&searchId=R3&resultListType=RESULT_LIST&contentSegm ent=&searchType=AdvancedSearchForm&currentPosition=1&contentSet=GALE%7CCX28311 00107&&docId=GALE|CX2831100107&docType=GALE&role=.
Online Encyclopedia of the entire women's footwear (non athletic) market. Everything from manufacturing, industry leaders and trends, to the market itself. This report gave information on what women consider when purchasing a pair of shoes.

Profile of major media types. (2007). Retrieved from www.iesmallbusiness.com/ resources/Major_Media_Types.doc

Provided Eclipse with a dollar figure for the media types such as magazines, billboards, and online media.

Shanghai Qianhe Packing Products Co., Ltd. (2010). Shoe packaging products. Retrieved from http://shanghaiqianhe.en.made-in-china.com/product/EbwmTojCfike/China-Shoe-Box-PaperShoe-Box-Shoe-Packaging-Box-shoe-box-paper-shoe-box-.html
Gave information on shoe box material and sizes.

Shoe Designer. (2010, February) Universities and Colleges. Retrieved from http://www.school sintheusa.com/careerprofiles_details.cfm?carid=1123.
Used for financial statements to estimate the average salary of a shoe designer.


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Shoe Stores. (2010). The Retailer Owners Institute. Retrieved from http://retailowner.com /StoreBenchmarks/ApparelAccessoriesStores/ShoeStores/tabid/121/Default.aspx
Calculated 2009 industry footwear markups for retail stores.

Stoops, N. U.S Census Bureau, Economics and Statistics Administration. (2004). Education attainment in the united states (P20-550). Washington, DC: Retrieved from http://www. census.gov/prod/2004pubs/p20-550.pdf
This report by the U.S. Census Bureau gave information on the percentage of women attending college, as well as the increasing trend of women attending college.

Swisher Commercial (2010). Oak Valley Office Suites in Ann Arbor. Retrieved from http://swishercommercial.catylist.com/jsp/listings/listing_overview.jsp?listingID=1970196.
Real Estate Company in Ann Arbor Michigan which provided the lease terms, utilities, address, and location information for corporate office.

Trade show handbook. (2007). Retrieved from www.tradeshowhandbook.com/trade-showcosts.html

This website gave Eclipse the dollar figure for going to a tradeshow.

Treasury Direct (2009). T Bonds. Retrieved April 8, 2010, from http://www.treasurydirect .gov/instit/marketables/tbonds/tbonds.htm U.S. Census Bureau, (2008). United states employment status Retrieved from http://factfinder.census.gov/servlet/STTable?_bm=y&-geo_id=01000US&qr_name=ACS_2008_3YR_G00_S2301&-ds_name=ACS_2008_3YR_G00_&-redoLog=false
Used this table to find out how much of the women in the United States were employed, and used that figure to help figure out the size of the target market.

U.S. Census Bureau, (2008). United states population by age and sex Retrieved from http://factfinder.census.gov/servlet/STTable?_bm=y&-geo_id=01000US&qr_name=ACS_2008_3YR_G00_S0101&-ds_name=ACS_2008_3YR_G00_
Used this table to find out how the population of women in the U.S. This helped formulate the target market.

U.S. Census Bureau, Population Department. (2000). Projected population of united states by age and sex: 2000 - 2050 Retrieved from http://www.census.gov/population /www/projections/usinterimproj/
We used the projections chart for the U.S. population by age and sex to get the projected population growth of females for the next 5 years. From that number Eclipse calculated about how much are target market would grow and used that figure in our five year sales forecast.

U.S. Census Bureau, Population Department. (2008). United states educational attainment Retrieved from http://factfinder.census.gov/servlet/STTable?_bm=y&-geo_id=01000US&qr_name=ACS_2008_3YR_G00_S1501&-ds_name=ACS_2008_3YR_G00_&-redoLog=false
Used this table to find out on average how many women were attending college over the years, and used these figures to help calculate the size of the target market.