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INTRODUCTION
1 Company Profile 1 Executive Summary

SITUATION ANALYSIS
2 Consumer Analysis 3 Industry Analysis 3 Competitive Analysis

SWOT ANALYSIS
4 Strengths 5 Weaknesses 6 Opportunities 6 Threats

TARGET MARKET
7 Generation Y 7 YouTube Celebrities 7 School Organizations CREDITS Chairman of the Board Tory Listberger Board of Directors Eric Asence Elizabeth Aroyan Shannon Kula Jenny Nguyen Andy Pham Amber Santos Jen So Executive Director Jeremy Dunbar Editor-in-Chief Huong Chau Assistant Editors Anis Faqir Sara Jacobson

MARKETING TACTICS
8 Online/Print Advertising 9 Social Media 11 Company Website 14 Event Marketing 15 Crossover Promotions 17 Nontraditional Marketing 19 Point-of-Purchase Display 20 Distribution 21 Sales Promotion 22 Pricing and Packaging 23 Product Development

24 CONCLUSION 25 APPENDIX
26 Market Research 28 Survey Findings 33 References

Company Profile Shoeture (a portmanteau of shoe and couture) is a California-based company that specializes in sneaker accessories. It was founded in 2008 by Grant Hooks in Los Angeles, but has since relocated to Orange County. Grants product ideas began as simple charms and lace locks, eventually evolving into Shoetures current line of shoe jewelry. Shoetures products include metal lace covers, buckles, and eyelet pins currently sold at the manufacturers suggested retail price of $49.99, $24.99, and $4.99, respectively. Executive Summary Shoe jewelry is a small industry that has existed for centuries for both women and men to adorn and accentuate their feet. Lace locks were introduced during the Eighties and were the first products to resemble those of Shoeture. With sparse competition in the product category, Shoeture lacks the necessary attention and funds to promote the brand and its high quality products to many potential customers. Shoeture has had success within the dance community, but G. Hooks (personal communication, May 15, 2011) stated that his sales have plateaued in the last six months. Rather than continuing to penetrate a niche market that will easily adopt the product, Grant would like to not only expand into but also develop new markets.

The following marketing plan comprises cost-effective strategies to build brand awareness and increase sales for Shoeture in a wider U.S. market.
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Consumer Analysis The typical consumers of Shoeture are referred to as sneakerheads, which are those who collect athletic shoes and wear them for fashion instead of sports. Sneakerhead subculture began in the Eighties when hip-hop artists and break-dancers wanted to express their street credibility and status through fashion. Though still based in the hip-hop dance and music community, the fashion has become more widely accepted as part of popular culture since shows such as Americas Best

Dance Crew aired on MTV beginning in 2008. According to Wasserman (2009), [sneakerheads]
are the type of consumers who will wait in line for days for a sought-after new shoe, and though they are a tiny segment of the market, they are considered the primary vehicle for building buzz and hence get an inordinate amount of the sneaker companies' attention (p. 10). Simon Atkins, director of Adidas' Sports Style Division U.S. believes, the age of the sneakerhead has only begun and this type of consumer will continue to grow in the next two, five [or even] 10 years (p. 14). When considering expansion into broader markets, consumer preferences and tastes vary over time and affect both the type of jewelry purchased as well as the decision to buy at all. Due to the products non-essential nature, consumers tend to reduce purchases of these items during times of economic hardship. While some consumers have turned to gold and jewelry as a safe investment in light of the economic meltdown, overall domestic and global discretionary spending have been scaled back since 2005 (IBISWorld).

Industry Analysis With a weakened domestic economy, consumer demand for discretionary items, such as jewelry, has decreased. Industry revenue and profits are negatively affected by the increase in competition from imports and rising production costs, driven by increases in raw material prices. Thus, retailers are pressured to pass along the rising costs for commodities, foreign labor, and freight onto consumer products to maintain profits. Jewelry manufacturers compete by focusing on product differentiation. During a recession, it is an important basis to carry a minimum quantity of the broadest possible product range to satisfy most consumer tastes, and appeal to a wide income-earning spectrum to compete within this industry.

Competitive Analysis Although there are designer lace locks and other custom shoe bling, Sneakbars Kickbars manufactures products most similar to Shoeture. Its website has some references to street and hiphop culture such as its icon and music, but the products are shown in pictures on shoes, necklaces, anklets, bracelets and more worn by a variety of people with more diverse styles. The prices range from $49.99-$30,000, so even though the products are similar, they are not in the same market as Shoeture. On a broader scale, purchases of the Jewelry Manufacturing industrys products compete with a wide range of alternative discretionary expenditure items (table and glass wear, video and stereo equipment) and the relative price of jewelry, watch, and precious stones is important in this respect.

 Product Pioneer Shoeture is one of the few competitors of its product category, which is an advantage for price setting and brand recognition. Defined Brand Image The high-end brand image provides younger consumers the opportunity to afford a status symbol. Customization Various products, colors, and styles allow consumers to customize their shoes to their liking, define their personality, and express themselves. Limited Editions As a small business, creating small quantities of product allows for multiple limited edition lines, which is valued by sneaker collectors. Endorsements Popular dance crews have introduced the product on television, making it more acceptable and perceived as hip.

Poor Awareness Few people know about shoe jewelry, and few competitors exist to help advertise and increase demand for the product category.

High Price Point Having high priced discretionary products targeted towards a young audience with low incomes results in low sales volume, creating less buzz. This also reduces the likelihood of repeat purchases and acquiring different sets of the products. Name Most do not know that the name is a portmanteau of shoe and couture, so most would phonetically pronounce it like future, making it more difficult to spread awareness. Also, those in the fashion industry might say that associating the products with couture is inaccurate. Vague Product Description Materials used in manufacturing the products and the pricing of different quantities are not clearly defined.

OPPORTUNITIES
Online Opinion Leaders YouTube celebrities and bloggers are becoming more influential in fashion than advertisements. Cooperative Advertising Mutual relations can be formed with up-and-coming companies and businesses with similar markets to increase credibility and reduce advertising costs for both parties. Gift Purchasing Parents, grandparents, and other relatives may purchase Shoeture products for younger family members that may not be able to afford them or would not typically purchase them with their own money. Market Penetration Although Shoeture has been successful in the dance community, there are still many similar hip-hop and other urban communities that will be receptive to the product.

THREATS
Poor Economy When consumers have less disposable income, they are less likely to spend money on products with no utility such as luxury goods. Rising prices As the price of materials rises, so does the price for shoes, making sneakers and sneaker accessories more difficult to afford. Intricate Shoe Styles The amount of fabrics, graphics, designs, and opportunities to customize shoes has greatly increased, and consumers may feel that adding shoe jewelry would be unnecessary.

It is often difficult to exclude any member of the general population when choosing target markets, but with a limited budget, marketing to specific groups that would be receptive is most effective. Generation Y This group was born between 1980 and 1996 and is seen as more technologically savvy. Generation Y includes the youth and young adult market that marketers want to reach most because they are in the formative years of their brand relationships (Moriarty 2008). YouTube Celebrities and Bloggers Members of Generation Y are not as receptive to traditional advertising and voice their opinions in masses on the Internet. Young adults who produce blogs and videos have made full-time jobs and received free product to influence others about various topics, including fashion. The consumer is now directing the strategies of businesses and is more accessible than stylists and traditional industry leaders. School Organizations Student organizations are an integral part of campus life, especially when forming friendships that have an impact on ones interests, including fashion. Relevant groups are easily targeted and some receptive groups would include stepping crews, other dance organizations, and hip-hop clubs. The following marketing plan comprises cost-effective strategies to build brand awareness and increase sales for Shoeture in a wider U.S. market. Main Objectives

Penetrate Current Market Expand Into New Markets

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According to Nielsen data, spending for print among the top sneaker companies fell 31.8 percent and spending for TV fell 46.5 percent (Wasserman, 2009, p. 12). Placing advertisements on websites such as Complex.com, and Hypebeast.com would be more effective for reaching the target audience.

13.5 million unique visitors 200 million page views Elusive 20-something male Age 21+ 93%, Median Age 29 Single 74% Attended/Graduated College 77% Employed Full Time 78% Median Income $60,400

1.2 million unique visitors 16 million page views per month Designers PR/press Fashion enthusiasts

Other websites with opportunities to advertise include SneakerFreaker.com, SneakerFiles.com, Highsnobiety, and Nylonmag. The advertisements will introduce the product to an audience including both sneakerheads and broader markets with similar interests. Television advertising among sneaker companies dropped further than print advertising, so broadcast media will not be used. However, 55% of survey respondents stated they find latest trends relevant to their style in magazines/catalogs. Complex, SneakerFreaker, and Nylon Magazine have print magazines with advertising opportunities as well. Because the audience is mostly young adult males, humorous and sexually implicit advertisements would gain attention and create buzz.

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The following ideas can be developed through print or online media. Online Video A view from behind a couch shows a man who appears to be masturbating, but when the camera pans around, the viewer realizes the man is shining the Hooks on his shoes. During an evening scene, a camera pans around the shoes of a man or woman, and the scene turns into a party atmosphere when the Hooks are finally revealed. A woman opens her closet to find shoes to wear. She is clearly a fashionista because she has hundreds of heels, but instead she picks sneakers with Tangs to go out in. Similarly, a man with a large collection of dirty vintage sneakers in his closet is especially drawn to the one pair with Hooks. Online Banner/Print A man uses glossy Hooks on his shoes to look under a womans skirt because they are reflective. A woman is on her knees implicitly giving a man oral sex. However, the focus is on the pair of shoes with Hooks accompanied by the tagline Shoeture hooked me up. A limo pulls up at a red carpet event with many photographers. The close up shot is on one shoe with Hooks coming out of the limo, so no celebrity is needed. One dirty white pair of vintage sneakers with Hooks is displayed. Although the economy appears as a threat to Shoeture, the situation can be manipulated to make consumers feel they are saving money by upgrading their old shoes for $49.99 rather than buying a new pair for $100. The companys tagline Love your sneakers again would fit accordingly.

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YouTube Contests Interactivity and participation of fans is important for forming long lasting brand relations and is a good mass marketing tool. Contests allow the general public to win prizes for doing something that requires skill, and competition provides motivation and a memorable experience that stays with the participants and the general public. Asking fans to create their own design for a Shoeture product would engage consumers and provide Shoeture with ideas of consumer tastes. The best entry, whether based on votes or Grants choice, would be made into a limited edition set, encouraging creativity and connecting an individual and personality to a product. California is a hot spot for the entertainment industry, including dance, but there is talent in various locations across the nation. Because Shoeture has already been successful in the urban market, a YouTube contest for Midwestern dance crews would create a cost-effective way to involve and reach new markets. The rules of the YouTube contest would be posted on Facebook and require Midwestern dance crews to post a video of the groups best choreography as a video response, so no dance facilities nor paid sponsorships would be required. The crew with the most likes could win products or other prizes. Facebook Shoeture should focus on interactivity and connecting with its current Facebook fans, rather than increasing the number of fans. The company website currently has a gallery of user-submitted pictures but with only the shoes in the shot. If fans are asked to post up a picture of themselves wearing their Shoeture setup on Facebook, an experience based on individuals rather than products is created, which is the purpose of personalized fashion. Also, giving prizes to the person whose picture receives the most likes can act as an incentive to increase participation. Some prizes could include meeting Grant and dance crews who endorse Shoeture or being featured on the website and/or upcoming catalog.
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The company does not have a bricks-and-mortar store, and although Shoeture is available at some retail stores, the majority of sales are made online. Therefore, it is crucial that the website is userfriendly and frequently updated with accurate information. The following are some of the website issues and solutions to address them. Search Engine Optimization The majority of web traffic to Shoetures website comes from those who have already heard of Shoeture and directly type in the companys name. Hooks and Tangs are specific product titles, and there are no product descriptions on the website that have terms familiar to the general population. Some common search terms that produce similar results and can be added as tags to the website and advertised on Googles AdWords to increase web traffic are: lace locks, lacelocks, custom lace locks, shoe buckle, and sneaker accessories. There is also an entry in UrbanDictionary for Shoeture, and the previously stated tags are not yet included.

It is crucial that the website is user-friendly and frequently updated with accurate information because the majority of sales are made online.

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Organization Grouping the products by Hooks, Tangs, buckles, and pins would create a more organized website. Each category would have its own thumbnail, and viewers would be able to select different material and color options from the same quick view window. This would reduce navigation between multiple pages and make browsing less frustrating and confusing.

Thumbnails Currently viewers are able to zoom into products within the constraints of a small box by hovering over it with their mouse, but there is neither detailed information nor a quick view option to see a larger photo. Also, the pictures cannot be saved or copied and can only be manipulated by the screenshot function. This poses a problem for bloggers when they discover the site and want to post a picture and write about it. Since you cannot see the products as you would in a store, a 360-degree view of the products would also help to show how they look and fit on a shoe from different angles.

Vague Product Description The pricing for the Hooks and Tangs on the website is unclear. Some pictures show four Hooks on a shoe and some show five Hooks, but the pricing is the same throughout. All of them show 49.99 but do not explain that 10 are included with this price and come in two sets of five. In addition, a description of the product including the materials from which it is made is not displayed. This would allow customers to understand how durable and valuable the product is.

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E-Catalog Print catalogs should be made available on the website in electronic form and should be updated with seasonal lines. The current catalog includes dance crews modeling the products, but the website only has pictures of the products on empty shoes. Having models wear the products like many online clothing retailers instead, would assist the viewer in seeing how the products complement an entire ensemble. According to the survey, some respondents stated they would not purchase the products because they would not know how to wear them, so this would help them to better understand their application. Street Team Changing the name of the affiliate program to Street Team would better match the young urban audience and create a sense of community. Their current tasks include adding links to Shoeture on websites, mentioning Shoeture in blogs, and referring sales. As a member of the Shoeture Street Team, individuals would play a more active role in guerrilla marketing by putting up stickers, spraying on stencils, passing out flyers for sponsored events, and participating in flash mobs, which will be discussed later. After evidence is made of their active participation, members receive exclusive Shoeture gear, limited edition Shoeture Street Team pins, and there could also be a point system to redeem more expensive items such as Hooks or Tangs.

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Fashion Shows Fashion shows with live models are another way to communicate to the general public how the products of Shoeture complement an entire outfit on various individuals and styles. Fashion shows in malls would be relevant, but there are also opportunities at other locations such as school campuses. The University Student Union Program Council of California State University, Long Beach hosts the annual Rags 2 Rhythms Fashion Show. The urban couture fashion show was formed to feature underexposed clothing lines consisting of independent designers who do not have the resources available to open their own stores. By featuring these designers on the runway, underground lines that would not normally be seen in a large market are promoted. The Rags 2 Rhythms Fashion Show consists of three parts: a concert, fashion show, and vendor fair. Seventy models are selected that are culturally diverse, male and female students of all shapes and sizes (ASI, 2009). Attending this event would form impressions to a receptive urban audience but also a broader and more diverse audience. Shoeture Shoe Tour Putting a campaign in motion, literally, would gain publicity and provide opportunities to form relations with new distributors. Retailers should be contacted beforehand to ensure that they are permitting Shoeture to arrive at their store and requiring staff to wear Shoeture shirts and products for the entire day. The retailers benefits include increased store traffic and awareness because of a Twitter feed and tour posters listing the dates, stores, and addresses. Also, the staff could receive free pins and commission for sales of Shoeture products. Because Grant has more resources and connections in California, it would be cost-effective for the locations of the Shoe Tour to remain in the home state of Shoeture.

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Sponsorships As stated earlier, school campuses have a wide variety of people who fit in the target audience. Sponsoring campus organizations, especially stepping crews, other dance organizations, and hiphop clubs, would create Shoeture brand ambassadors. 60% of survey respondents stated they go to their friends and family to find the latest trends relevant to their style. Rather than the company, student peers would be making recommendations, thus increasing the credibility and awareness of the brand. The sponsorship could be a donation to the organization to promote the brand, but a more effective sponsorship would involve members of the organization receiving free Shoeture products to wear to school, meetings, and events. Partnerships Partnering with relevant brands such as Pastry Shoes and Vlado Footwear serves as an additional opportunity to form mutual relations, share advertising costs, and increase credibility. These upand-coming brands are not massive corporations, so negotiating a partnership would not be as difficult. They may even want a Shoeture product designed specifically for their brand and sold on their sneakers as value added.

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Endorsements Jayne ODonnell, retail and automotive reporter for USA Today and one of the authors of Gen Buy: How Tweens, Teens and Twenty-Somethings Are Revolutionizing Retail stated,

[Generation Y] is used to having their opinions heard and valued at home so

blogs are another way for them to speak out, just to a larger audience. It can help both sides. Because Gen Yers are so good at connecting and its so important to them, blogs become both a way for them to reach other Gen Yers and a way for fashion retailers and manufacturers to get real time reaction from young people (Minkoff 2009).

Contacting celebrities and stylists to endorse products proves challenging, and only 25% of survey respondents stated they go to celebrities and role models to find the latest trends relevant to their style. Sending products to well-known bloggers and YouTube celebrities instead would be more beneficial because they are more accessible, cost-effective, and influential opinion leaders. Tims Bakery is just one example of a YouTube fashion channel that gets more than 70,000 views per video. The videos simply involve one young man talking about what he is wearing and where he acquired it. He is also humorous, so he or similar individuals could help create one of the commercial ideas stated earlier. Scan the QR code below to see an example of a YouTube fashion channel.

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Guerilla Marketing A flash mob is a group of people who suddenly assemble in a public place to perform something in unison. When properly publicized on resources such as YouTube, flash mobs can be a form of viral marketing as they create buzz and widespread attention. Flash mobs are relatively inexpensive if the performers, film crew, and other minimal resources are Scan the QR above to view an example of a flash mob. available. Because Grant already has connections in the dance community, b-boys and other dancers could gather in public places and perform choreography wearing Shoeture gear and products. The same group would perform in multiple California locations such as piers and outdoor malls, for example The Block at Orange and Irvine Spectrum Center. Scan the QR below to view an example of reverse graffiti. Clean Advertising Reverse graffiti is an unconventional method for creating temporary images on walls, floors, and other surfaces by removing dirt using toothbrushes, gloves, pressure washers or any other cleaning supplies. Street graffiti is illegal, but reverse graffiti offers an ethical and interesting way to stay relevant to the urban audience. For example, placing the Shoeture logo and tagline Love Your Sneakers Again all over the city floors could attract the eyes of those walking by. Also, sneaker steps could spark interest and lead the audience to boutique stores that sell Shoeture products.

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Out of home Advertising Members of Generation Y such as students frequently use public transportation, especially in urban areas. Placing ceramic sneakers (similar to those at the Bubba Gump Shrimp Co.) at bus stops would be an unconventional and entertaining way for the general public to sample the products. People could put their own feet behind the ceramic shoes with Hooks or Tangs stuck to the ground, see how they would look on them, take pictures with for amusement and nostalgia, and possibly post them up on Facebook. The shoes could even have solar powered lights illuminating the Shoeture products to increase attention during the night.

SHOETURE
HOOKED ME UP

Top photo: Ceramic shoes with reflective Hooks and with an ad of a girl kissing a shoe with Shoeture in the back. Bottom photo: A guy waiting for the bus has his feet behind the ceramic shoes, and it appears that the girl in the ad is kissing him.

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The current point-of-purchase display is a three-tiered glass case with products scattered throughout. The bottom two tiers are low to the ground and difficult to see without the viewer bending down. The configuration makes the products less accessible and consumers may be uncomfortable asking a store associate if they can have a closer examination. A more horizontal table-like display would put the products directly in front of the customer at eye level and should be open to allow customers to hold and feel the product. The products could be installed on a variety of shoes and would be secured to a retractable cable. Most Americans prefer self-service shopping. By displaying the price on the point-of-purchase display, it would reduce the requirement for prospective customers to interact with employees when deciding to make the purchase or not. Additionally, a laminated catalog placed on the table with brochures would provide informative takeaways. Because cutout coupons and other discounts could reduce the brand image, a QR (quick response) code would be placed on the display, so people could access a coupon at the retail location by liking the Shoeture Facebook.

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Although Shoeture already sells products online and at some retail outlets, there may be other potential stores and websites at which to place the product in front of the target audience in a more credible fashion. Skateboarding and in-line skating culture have grown closer together with the influx of diverse styles and musical influence, but in-line skating especially has roots in hip-hop and sneaker culture. Although Hooks or Tangs probably would not fit on in-line skates, aggressive in-line skates have many customization options with a wide array of colors, so customizing shoes is a potential interest. Some possible locations to distribute and possibly advertise through are Urban Rolling skateboard and in-line skate shop in Long Beach, California; Aggressivemall in Sunnyvale, California; Inline Warehouse in San Luis Obispo, California; and Roller Warehouse in Rocklin, California. When expanding into broader markets, Kitson is one example of a boutique with locations in California that sells sneakers, accessories, and other items, but to an audience that does not fit the typical consumer profile of urban and hip-hop.

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Many have expressed concerns about the high prices of Shoeture products, and there are alternative methods for increasing perceived value while maintaining the image of a premium product. Free shipping is a sales promotion that could be applied online. The price of $49.99 is already expensive for some people, and does not include the additional costs of tax and shipping. Pins are currently the least expensive product of Shoeture, so offering free pins as a premium with purchases over a certain amount would make customers feel like they received a better value. The premium of the pin would serve as an opportunity to spread brand awareness and creates incentive for customers to spend the required amount. Many survey respondents stated they would buy Shoeture products as gifts, and demand for [jewelry] tends to be highest in the lead-up to special occasions such as Christmas and St Valentines Day (Shim 2010). A gifting promotion would gain the attention of those potential customers, and could include options such as free gift-wrapping and special notes. Trade-in Program The products of Shoeture are durable and expensive, so generating repeat purchases is a challenge. Instead of buying a new set, people may just want a new color, so with a trade-in program, they could send back their used products to Shoeture and receive credit towards another color. The traded-in products could be refurbished and used for flash mobs, store associates, dance crews, point-of-purchase displays and other giveaways.

Including a premium product for spending a large amount of money will make customers feel like they received a better value.
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Survey respondents stated they would expect to pay about $26.00 for the Hooks and Tangs, which is much lower than the current retail price of $49.99. If the price of the Hooks and Tangs were lowered, the reduced sales margin could be countered by raising the price of the pins. Survey respondents stated they would expect to pay an average of $21.00 for the small pins, which are currently only priced at $4.99. Raising the price of the pins to $9.99 would be a large increase for Shoeture and more than half the price people would expect to pay. Lowering prices is one option, but changing the packaging is another alternative. Many pictures on the website show only four Hooks on the shoe. Because Hooks and Tangs are currently sold in sets of five, customers must buy two sets to evenly distribute them among any pair of shoes. If the amount included in each set were reduced to four, then purchasing any number of sets would always equal an even amount. Having the option to buy only one set of four Hooks or Tangs and still have an equal number on each shoe offers a lower introductory price to consumers. Although it is the same value, it is perceived as a lower risk to sample the product, because less money is spent upfront. This also increases the likelihood of repeat purchases because, it would be easier and more affordable to customize, mix, and match different colors. Generation Y is more interested in altruism than earlier generations, so promoting greener packaging would create a positive image for Shoetures public relations (Moriarty 2008). Although the packaging of Shoetures products is attractive and continues to uphold the brands image, once the products are installed on the shoe, consumers will not use the packaging again. Also, creating more disposable packaging would save unnecessary costs.

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Although Grants primary concern at the moment is market development, the following are some product development suggestions to consider for the future. Pins are the least expensive Shoeture product and the most accessible. Many survey respondents stated they would purchase the pins, because they were a simple way of making shoes more individualized. Residents of urban cities are usually proud of where they came from, so besides the LA pin, more city pins could be added such as LB(C)(Long Beach City), SF (San Francisco), SD (San Diego), NY (New York), ATL (Atlanta), and Miami just to name a few. Engraving and etching is another possibility for adding value to the Hooks and Tangs, and much of these activities have been outsourced to low labor-cost countries like Hong Kong and India (Shim 2010). Personalized engraving similar to Apples free engraving service is an option. Another application of this technology could involve creating sets of Hooks and Tangs with pre-engraved words on each bar that can be rearranged. Grant mentioned the possibility of a cheaper or more accessible line that would appeal to mothers and their children. This would allow Shoeture to produce lower-end products at a less expensive price and experiment with different colors. Glow-in-the-dark products could even be something to look into. Although Grant talked about creating this line by Shoeture later, this might be a development that needs to be made sooner to reach a broader market. Grant stated that females usually buy the Tangs more often even though all Shoeture products are intended to be unisex. Using this as an advantage, Shoeture may want to develop some more colors for the Tangs that appeal to women such as pink, yellow, and baby blue.

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Although Grant Hooks would like to expand his business by developing new markets, it is advisable to focus on penetrating the current niche market that is more receptive to the brand and its products. With a limited budget, it is difficult to market to the general population because people have different tastes and preferences. Additionally, accommodating a broad market requires new product development. For now, Shoeture should focus on building its brand awareness before it decides to go mainstream.

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26 Market Research 27 Sampling Frame 28 Sampling Errors 29 Survey Findings

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This market research provides an assessment of the general markets opinions regarding Shoeture and its competitor, Sneakbars Kickbars, as well as the correlations between the demographics and consumer behavior towards shoe jewelry. We looked specifically at three areas for Shoeture to better understand the general market: Awareness of shoe jewelry General attitudes and perceptions towards fashion accessories and shoes General psychographics and lifestyles of the market

An online survey was conducted on Qualtrics.com and was distributed among friends and families via e-mail and Facebook. A screener question was asked to ensure that we only receive responses from US residents. There were a total of 196 respondents, however, only 137 surveys were completed. A nonprobability sampling technique was used, which means the respondents were not selected randomly.

This market research cannot be used to generalize the opinions and/or perceptions of the US population but can only represent the responses of the 137 respondents

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Sampling Frame A total of 196 respondents began the survey, but only 137 completed it. The survey was distributed among 35 White/Caucasians, 29 Asian Americans, 16 Hispanics/Latinos, six African Americans, three Pacific Islanders, and nine others/interracial. Sixty-one respondents identified themselves as females, and 37 as males. Four respondents were under the age of 13; two were between ages 13-17; sixty-two were between ages 18-25; 18 were between ages 26-34; three were between ages 35-54; four were between ages 55-64; five were 65 years of age or over. A bulk of the respondents is from the counties of Los Angeles, Orange, and San Bernardino, California. 3% S.Bernardino 3% Fresno 2% San Diego 1% Alameda

59% Los Angeles 16% Riverside 15% Orange

Age 3% under 13 2% 13 17 67% 18 25 15% 26 34 5% 35 54 3% 55 64 5% 65 and over Gender 66% Female 34% Male Ethnicity 37% White/Caucasians 7% African Americans 15% Hispanics/Latinos 29% Asian Americans 3% Pacific Islanders 9% other (interracial)

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Sampling Error The accuracy of market research is dependent on factors such as the dispersion and skewness of the populations responses (divergent opinions or characteristics versus similar opinions or characteristics), the sample size, and the size of the population. However, due to time constraints and limited resources, our group was unable to assess a large sample frame. We surveyed a convenience sample which included members of affiliation groups, friends/families, and random intercepts on our website. The objective was to collect as much data as possible within a time frame of three weeks regardless of where they came from. The following are various sampling errors of our online market research to note: Although there were 196 respondents, only 137 completed the survey, which may have skewed the numbers and percentages A small sample size of 137 respondents cannot produce an accurate picture of the true characteristics of the US population Because there were no incentives provided, there may be issues with response accuracy We were unable to distribute the survey proportionally across the US. Survey responses may be biased with the majority being from Los Angeles, California between the ages of 18-25. Note that 83% percent of the respondents are from Los Angeles, 67% are between the ages of 18-25

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Fashion Accessories 42% typically purchase fashion accessories 1 3 times a month 24% typically purchase only 1 3 times a year 72% typically spend $50 or less on fashion accessories Respondents were asked to rank order of importance when considering fashion accessories

48% respondents ranked style/design as their top priority when considering fashion accessories 22% ranked quality as their top priority 23% ranked price as their top priority *Trends, Color, and Brand were ranked least important when considering fashion accessories

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Where do you go to find the latest trends relevant to your style? Respondents were asked to check all that apply 60% said Friends and Family 55% said Magazines/Catalogs 52% said Internet/Social Media/blogs 33% said Television/Movies 25% said Celebrities/Role Models 17% said others Online Shopping In general, respondents enjoy going out to shop and seeing the products before purchasing, and although some respondents view online shopping as additional shipping costs, waiting, and unsecured credit card information, they still find online shopping convenient and enjoyable. Psychographics Toward Fashion In general, many respondents do not feel that customization is important to be different Only 17% care about customization 25% felt neutral about customization 33% are not afraid to be the first to wear something different in fashion Only 20% felt that shoes are one of the most important ways of expressing their individuality 60% did not care 20% felt neutral

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Products Sneakbars Kickbars Shoeture 2 Jewelry bars 10 glossy horizontal bars 10 matte horizontal bars 10 glossy diagnol bars Buckle Pin

Perceived Value $17.78 $28.50 $26.30 $25.23 $23.32 $21.90

Only 25% are familiar with the term shoe jewelry

Sneakbars Kickbars 17% respondents would purchase Sneakbars 41% would purchase for gifting 41% thought they are stylish/different 18% liked the anklet Shoeture 31% would purchase Shoeture 58% thought the products are cool/stylish 30% would purchase for gifting 12% felt that it adds a personal touch and individuality to their shoes

83% would not purchase Sneakbars 38% said it is not their style 27% saw no point in the products 20% felt that it was too much/tacky 7% do not wear sneakers regularly 6% felt the quality is low 2% did not know how they would wear it

69% would not purchase Shoeture 42% felt that it is not their style 33% felt that the products are too much or trying too hard 18% saw no functionality in the products 7% do not wear sneakers

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Respondents who said they would purchase Shoeture products Consumer Spending Habit 47.37% typically spends less than $25 on fashion accessories 21.05% typically spends $26-$50 39% of Los Angeles residents 14% of Orange residents 13% of Riverside residents 64% Female 36% Male 5% Under 13 5% 13 17 56% 18 25 24% 26 34 7% 35 54 3% 55 64 0% 65 or over 29% White/Caucasians 5% African Americans 20% Hispanics/Latinos 37% Asian Americans 5% Pacific Islanders 5% Others

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ASI program council CSULB. (2009). Rags 2 Rhythm Fashion Show. Retrieved from programcouncil.org Shim, J. (2010, December). Jewelry Manufacturing in the US Industry Report. Retrieved from IBISWorld database Jackson, A. L., Feld, A. (2011, June 1). Sporting-Goods Prices May Increase in Latest Sign of Consumer Inflation. Retrieved from bloomberg.com Minkoff J. (2009, September 25). Think You Know GenY? [Web log comment]. Retrieved from [Web log comment]. Retrieved from http://ingenyfashion.wordpress.com/ Moriarty, S., Mitchell, N., & Wells, W. (2008). Advertising: principles & practice. Upper Saddle River, NJ: Prentice Hall Wasserman, T. (2009, October 19). Sneaker Heads Rule [Electronic Version]. Brandweek,

10-14.

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