Microeconomics 290 Spring 2016 Case CompetitionFriday, April 8, 2016Zach Becker | Sean Chokshi | Henry Cobbs | Ben Feighenbaum

Analysis

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What is Holding Mad Hats Back?

• Lack of popular products• Lack of distribution

opportunitiesProducts and Distribution

• Inadequate technology and poor websiteTechnology and E-

Commerce

• Saturated 18-24 market, untapped Generation Y market

Marketing and Demographics

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Cohesive Strategy to Reach MAD HATS’ Potential

YAdded focus toward

generation-yIncrease brand

exposureMore reliable and

engaging technology

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MAD HATS 5 Year Goals

Revenue GrowthGrow top line revenues at least 20% per year until December 2019

Leadership through Social EntrepreneurshipDemonstrate leadership through social entrepreneurship

Products with ImpactOffer products that positively impact global communities

Enhance the Customer ExperienceEnhance the customer experience by offering seamless transactions, diversified products, and friendly customer service staff

Develop more Effective Teams Develop high performing, motivated and capable teams

MAD HATS

Revenue Growth

Leadership through Social

Entrepreneurship

Products with Impact

Enhance the Customer Experience

Develop More

Effective Teams

Recommendations

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Overview of Recommendations

1. Products and Distribution

Increase marketing and diversify target demographics

3. Marketing and Demographics

Expand Mad Hat’s product line and brick and mortar retail program

2. Technology and E-Commerce Implement Site 2.0 and overhaul mobile app

Recommendation Part 1: Products and Distribution

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Expanding Executive-Level TeamFashion-Forward Products

1. Products and Distribution

2. Technology and E-Commerce

3. Marketing and Demographics

Add Chief Design Officer Position Add Design-Marketing Team

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Expanding the Product Line

Introducing theMAD HATS5-Panel

1. Products and Distribution

2. Technology and E-Commerce

3. Marketing and Demographics

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Expansion of Retail Distribution NetworkNew Brick and Mortar Retailers

Existing Retail Partners:

Proposed Expansion to Program:

1. Products and Distribution

2. Technology and E-Commerce

3. Marketing and Demographics

Recommendation Part 2: Technology and E-Commerce

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Smart and Robust Tools and InfrastructureSite 2.0

Search engine optimization fuels traffic

High capacity, flexible backend infrastructure keeps site running, regardless of traffic

Email marketing tools keep customers returning

Customer rewards programs incentivizes loyalty

1. Products and Distribution

2. Technology and E-Commerce

3. Marketing and Demographics

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Site 2.0: E-Commerce taken to the Next Level

1. Products and Distribution

2. Technology and E-Commerce

3. Marketing and Demographics

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User accounts track past orders, demographics, and billing + shipping information

1. Products and Distribution

2. Technology and E-Commerce

3. Marketing and Demographics

Site 2.0: E-Commerce taken to the Next Level

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Chat feature for instantaneous, free customer service

1. Products and Distribution

2. Technology and E-Commerce

3. Marketing and Demographics

Site 2.0: E-Commerce taken to the Next Level

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Product suggestiontools drive sales

1. Products and Distribution

2. Technology and E-Commerce

3. Marketing and Demographics

Site 2.0: E-Commerce taken to the Next Level

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1. Products and Distribution

2. Technology and E-Commerce

3. Marketing and Demographics

Site 2.0: E-Commerce taken to the Next Level

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Ratings and reviews vouch for our quality

1. Products and Distribution

2. Technology and E-Commerce

3. Marketing and Demographics

Site 2.0: E-Commerce taken to the Next Level

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Product suggestion

tools, ratings and

reviews, and chat for

help carried over from

desktop site

Blog style news-feed

delivers pictures, videos,

and articles about our

donation work, cultural

exploration, and product

announcements

Overhauling Our App: Harnessing the Potential of Mobile

1. Products and Distribution

2. Technology and E-Commerce

3. Marketing and Demographics

Recommendation Part 3: Marketing and Demographics

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FutureSpecial Release Dates

Celebrity Recognition

Humanitarian Promotions

Age Demographics

1. Products and Distribution

2. Technology and E-Commerce

3. Marketing and Demographics

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1. Products and Distribution

2. Technology and E-Commerce

3. Marketing and Demographics

Demographics: Defining Our Target Customer

Current age demographic, industry:

-40% generation X

-31% baby boomers

-23% millennials

Current age demographic, MAD Hats:

-22.3% ages 0-18

-45.1% ages 18-28

-10.1% ages 38-48

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1. Products and Distribution

2. Technology and E-Commerce

3. Marketing and Demographics

Marketing: Creating Original Content on YouTube to Engage Customers

Sponsor high-profile YouTube filmmaker to create short film

Emphasize our humanitarian efforts and Ecuadorian culture rather than product

Model after Patagonia documentaries and Casey Neistat’s work with Nike, Fox, J-Crew…

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1. Products and Distribution

2. Technology and E-Commerce

3. Marketing and Demographics

Marketing: Using New Media to Reach Our Audience

Casey Neistat YouTube Film for 20th Century Fox

Casey Neistat YouTube Film for J-Crew

Casey Neistat YouTube Film for Nike:

Patagonia YouTube Channel:

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1. Products and Distribution

2. Technology and E-Commerce

3. Marketing and Demographics

Marketing: Using Snapchat and Instagram to Reach Customers

Tom’s Shoes and People Water use Instagram to show customers how their purchases are helping others

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1. Products and Distribution

2. Technology and E-Commerce

3. Marketing and Demographics

Marketing: Sending MAD HATS Care Packages to Public Figures

Beats found success sending complimentary headphones to musicians and athletes often photographed and televised

Apple sent watches to public figures ahead of the launch

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Special Release Dates: − Release products on Ecuadorian Holidays − Promote culture behind products

Celebrity Recognition:− Send products to celebrities to represent brand for charity − Free brand promotion

Future:− Plan to attain sponsors− Other methods of marketing

1. Products and Distribution

2. Technology and E-Commerce

3. Marketing and Demographics

Results

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Expected 5 Year Revenue ForecastThe 5-Panel

Expected Market Share

• 0-18: 25% / 18-28: 25% / 28-38: 10%

• 38-48: 5% / 48+: 1%

Unit Sale Price

• $30− Same as the rest of the product line

5 Year Revenue

• $146,751,458.40

Yearly Revenue

• $29,350,291.68

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Forecast Model

Revenue GrowthGrow top line revenues at least 20% per year until December 2019

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