INTRA-KICKS 3-YEAR STRATEGIC PLAN

1. STRATEGIC DIRECTION

A. Mission Statement:

The mission of Intra-Kicks is to provide our customers with the highest quality product in the

world at a fair price. Our products are endorsed by the world’s biggest celebrities and worn by

people around the world and available around the world.

B. Vision Statement:

We are determined to carve out a reputation as the world leader in high quality footwear. Our

focus is the high quality segment and customers who are willing to pay slightly more for

superior footwear. We are already seen as a world leader in quality through yearly recognition

from the International Footwear Federation and their style quality rating in which we have had

the highest rating in the world for three straight years, and aim to continue that for at least

the next three. It is our goal to use our already strong brand, worldwide distribution network,

fair prices, strong marketing and leading celebrity imagine to provide exceptional returns for

our stakeholders and shareholders for the next three years.

2. STRATEGIC OBJECTIVES

A. Market Share Objectives:

a. North America:
1. Current: 7.9 %
a. Goals: Year 14-16 increase market share slightly through
expanded advertising and availability :
b. Year 14: 8.1 %
c. Year 15: 8.2%
d. Year 16: 8.3%

b. Europe:
1. Current: 7.8%
a. Goals: Year 14-16 increase market share slightly through
increased availability and advertising.
b. Year 14: 7.9%
c. Year 15: 8.0%
d. Year 16: 8.1%
 c. Latin America:
1. Current: 12.5%
a. Goals: Year 14-16 increase market share through our strong
brand, celebrity appeal, fair price, strong availability from North America
(no tariff) and advertising.
b. Year 14: 12.9%
c. Year 15: 13.2%
d. Year 16: 13.5%

d. Asia-Pacific:
1. Current: 15.3%
a. Goals: Year 14-16 increase market share slightly due to our
already second place market share using our strong S/Q rating,
competitive price, celeb appeal and marketing.
b. Year 14: 15.5%
c. Year 15: 15.7%
d. Year 16: 15.8%

B. Annual Financial Performance Objectives:

a. Current:
1. Share Price: $82.82
2. Credit Rating: A+
3. Earning Per Share: $4.84
4. ROE: 21.4%

b. Year 14:
1. Share Price: $87
2. Credit Rating A/A+
3. Earning Per Share
4. ROE: 22.2%
5. Note: Based on buying back shares, taking on no more debt, increased market share.

c. Year 15:
1. Share Price: $ 93
2. Credit Rating : A/A+
3. Earning Per Share: $5.15
4. ROE: 23%
5. Note: Based on buying back shares or offering a dividend, taking on no more debt
increased market share.

d. Year 16:
1. Share Price: $97
2. Credit Rating: A/A+
3. Earning per Share: $5.30
4. ROE: 25%
5. Based on increasing the dividend, a slight increase in market share and efficiency.
3. COMPETITIVE STRATEGY

We at Intra-Kicks have found that the most attractive competitive strategy for our company is

a focused, or market niche, strategy. We believe that this competitive strategy will work best

for our company because the margins are much higher in comparison to a low-cost provider per

unit. Our main objective is to find and retain those consumers that are willing to pay a higher

price for a superior product.

What makes our company unique is the brand/image of our company. Intra-Kicks as a brand

name tells our consumers that we are a hip, contemporary, and stylish footwear company

willing to take fashion risks and yet still set the trend in our modern era. The name of our

company also sounds a lot like the word “intricate” and, to no coincidence, many of our

footwear styles are by no means simple in nature. Another aspect to our distinctive company is

that we utilize only the best and most talented designers. Because we deal with superior

materials, we must also use superior talent. Also, along with materials and competencies from

our workforce comes our technological advantage. Our company has gone above and beyond to

acquire the most advanced production tools for our plants in the various regions.

To distinguish our company from our competitors, our first step would be to establish exactly

who is/are our competitor/s. In order to ascertain this crucial information we would have to

utilize the system of Strategic Group Mapping. Usually, the competitors that have two or more

similar competitive characteristics to ours are the ones that we must focus on in terms of

distinguishing ourselves from them. In the event that we discover direct competitors, we will

employ a team to compose research regarding that particular company through a series of

SWOT analysis, customer surveys and footwear reports from previous quarters of the year.

Upon discovery of any competitor shortcomings, we will look to capitalize on those particular

weaknesses whether they are struggling with their current fan base or simply have poor
advertisement. Our primary market is Asia-Pacific and Latin America. Our overall competitive

positioning is high-end, high quality product at a fair price.

4. FUNCTIONAL STRATEGIES

• Marketing

o Price – our goal is to minimize and keep the price level of our products at a fair

range without sacrificing the quality of our products.

o Product – our products will contain high-quality and superior materials that are

environmentally friendly and unique. We will also be providing better service and

more efficient logistic processes.

o Promotion – we will continue to invest in wholesale and internet marketing and

advertising, especially in Asia Pacific. We will continue to have our products

endorsed by world-famous celebrities to help maintain our high company image.

o Place – we will make our distribution channels, coverage, and transportation

methods more efficient. We will also continue to increase our inventory levels and

locations in all four regions.

• Finance

o We encourage the continuity, growth, and long-term prosperity of our company.

Therefore, we promote activities that help increase the value of our company, such

as distributing dividends and increasing share price.

• Production

o We will invest in warehouse maintenance and plant/equipment upgrades in order

to increase production capacity and worker productivity. In the long run, this will

facilitate our competitive ability and increase our market share.

• Human Resources

o We will secure the work position of our company by increasing employee wages.

Our functional strategies support our company’s global differentiation strategy by setting our

company footwear apart from rival brands based on such attributes as a higher S/Q rating,

celebrity appeal, unique models, and more style selections.

The risks of our strategy and the implications for our company if these risks become reality are:

• Higher prices for raw materials, fuel, and crude oil  decrease in profit

• Shortage of qualified labor  loss in productivity

• Change in customer demands  decrease in profit

• Threat of entry of new competitors is high  lower market share

• Projected economic recession  decrease in profit

• Increase in profit taxation  higher taxes

• Time demanding procedures for selecting suppliers  lost in productivity

• Loss of celebrity appeal  decrease in profit

• High bargaining power of the customers  lower market share