M e g h a n C r o w l e y S a m a n t h a F a i l l e M a r i a T s e k e r i s

M a r y b e t h W a l l a n d e r

Overcome Any Challenge… Sport or Otherwise

"Our  vision  is  for  everyone  involved  in  Challenge  Footwear  to  share  a  common  set  of  values  and  goals  and  to  work  together  to  be  as  efficient  and  effective  as  possible.  

Challenge  Footwear  strives  to  provide  our  customers  with  a  wide  variety  of  footwear  options  at  an  affordable  price  while  

creating  dependable  and  growing  value  for  our  shareholders.  Through  increased  productivity  initiatives,  Challenge  strives  to  inspire  its  employees  to  become  as  passionate  about  our  product  as  our  customers  are  by  

providing  them  with  the  tools  to  efficiently  craft  Challenge's  footwear."  

  Strategy    Breakdown  of  the  Game    

  Key  Decisions      Company  Performance  

  Financial  Strategy    Acquisition      

  Promotion  and  New  Market    

Strengths • Low Price • Good Quality • Made for the everyday man/woman • Gold in Corporate Citizenship • Offer 200 different models • A+ Credit Rating • Strong Brand Equity

Weaknesses • Inventory Turnover • S/Q Rating • High warehouse expenses

Opportunity • Expansion into private label • Global Expansion

Threats · Exchange Rate risks from operations abroad  · Transportation costs of shipping shoes internationally  · Growing competition  

11   •  3rd  Place,  84  Points    

12   • 2nd  Place,  91  Points,  Bull’s  Eye  Award  

13   •  1st  Place,  99  Points,  Bull’s  Eye  Award    

14   • 2nd  Place,  81  Points    

15   • 2nd  Place,  96  Points    

 16     •  3rd  Place,  87  Points,  Bull’s  Eye  Award    

17   •  3rd  Place,  91  Points,  Bull’s  Eye  Award  

18   • 4th  Place,  90  Points,  Bull’s  Eye  Award  

19   • 4th  Place,  94  Points,  Bull’s  Eye  Award    

Final   •  3rd  Place,  99  Points    (Gold  Star  Year  17-­‐19)  

Challenge’s  Progression    

Year  20:  $7.36  Year  21:  $7.72  

Year  20:  18.79%  Year  21:  19.72%  

Year  20:  $118.57  Year  21:  $124.49  

Year  20:  A+  Year  21:  A+  

Year  20:  72  Year  21:  72  

  Dividend  increases  of  5%  annually    Year  16:  Total  increase  to  $1  due  to  excess  cash  

 Maintain  Credit  Rating:  Utilize  long-­‐term  debt  

  Stock  Repurchases:  Better  utilize  excess  cash  and  create  greater  value  for  remaining  shareholders  

  Looking  to  acquire  Famous  Fit    Valuations  Models  Used:  

  Residual  Income  Model    P/E  Model        P/S  Model    Free  Cash  Flow   Weighted  Valuation:  $900,000,000  

• UK  Market  • Dynamic  Marketing  Strategy    

• Mix  of  traditional  marketing  outlets  and  technology      

  Top  sports  are  Football  and  Rugby    Shoes  for  everyday  people  

  80%  of  the  population  lives  in  Urban  areas    Take  advantage  of  the  large  number  of  people  using  public  transportation  and  walking    

  Packaging  Changes      Packaging  and  Packaging  Waste  Directive  of  the  EU    

  Packaging  needs  to  be  minimized  and  designed  to  be  recovered  and  re-­‐used  

  Darker  Colors  

TRADITIONAL  OUTLETS    

  Commercial    Billboard    Sponsorship    Celebrity  Endorsements  

  Wayne  Rooney  (Football)    Owen  Farrell  (Rugby)    

MODERN  OUTLETS  

  QR  Codes    Social  Media  

Mix  of  traditional  and  modern  marketing  outlets  Adaptation  to  local  culture    

  Target  Market    Billboard/Print  Ad  Series  

  Use  a  marketing  campaign  that  features  both  our  celebrities  and  the  average  individual      Helping  to  create  brand  equity    

  “Overcome  Any  Challenge…  Sport  or  Otherwise”  Campaign    

  Facebook    Blog  

  http://challengefootwear.blogspot.com/    Allow  us  to  speak  directly  to  the  UK  market    Use  British  slang  and  make  cultural  reference    http://www.youtube.com/watch?v=in_OhiND_XM    

  Following  a  strategy  long  term  is  highly  beneficial   Make  a  plan  and  follow  it  from  the  beginning    

  Inventory  levels  can  inversely  affect  a  company  image  and  increase  expenses  

  Internet  prices  can  reduce  retailer  demand    Do  not  rely  on  private  label