Notional, new product development class final presentation. This is just the slides and much more information was discussed during the presentation. High accolades from our professor. She commented that we should have gone first so that the class could see how this project was to be done.

3. You need These:
Barrier Glove
The minimalist trail racing /obstacle racing shoe
Keep the Outside…Outside.

4. So What is a Minimalist shoe anyway?
• Zero Drop

5. Minimal Construction
Mesh uppers.
Blue line is padding.
Black is the actual sole. Average 2-5mm
Cross section of a New balance NB Minimus prototype
http://birthdayshoes.com/new-balance-minimus-evolution-of-a-barefoot-running-shoe

6. Promotes a Mid-foot Strike
There is significant evidence that a mid-foot strike reduces
injuries to the foot, ankle, knee, and lower back.
McDougall, C. (2009). Born to Run. New York: A. Knopf.

7. Target Market

8. Chosen Targets
M 18-24 M 25-34 M 35-44 F 35-44

9. MALE 18-24(Simmons)

10. Male 18-24 Demographic
• Over two-thirds of men cannot live without the internet
when compared to TV
• Sixty-three percent say that they also own a
smartphone and one in four use their device to connect
to the internet
• 59% of the men also said that they notice online Ads
• 47% have made a purchase as a result of an online ad
• 35% like ads that allow them to play some sort of a
game.

11. Male 25-34(Simmons)

12. Male 35-44(Simmons)

13. Female 35-44(Simmons)

14. Shared Interests(Simmons)

15. Primary research shows increased
minimalist participation in Obstacle Races
and Trail running
• Of the respondents who identified themselves as a Minimalist
runner,
• 56% have competed in an Obstacle Race .
• 72% run on trails at least once a month
• 32% Have experience debris in the shoe that impedes their run at
least once a month.
• 68% have had this experience at least once
• 54% would be at least somewhat likely to purchase a shoe that keeps
debris from entering it.

16. Survey Supported Target
The survey supported our findings of the general
description of our target from the Simmons data
collected.
 Male dominated
 College educated
 Employed and financially
secure

17. Competitive
Advantage

18. Gap Map
Minimalist
Standards
NO ONE ELSE DOES BOTH!!
High Debris Low Debris
Protection Protection
Conventional
Trail Running

19. Feature, Function, Benefit – Merrell Barrier
Glove
Feature Function Benefit
Additional Top- Glove Protection No need to stop during a run
to “clean out” shoes
Vibram outsole with zero Encourages a mid- Strengthens muscles, aligns
drop foot strike posture and leads to
“minimalist-shoe-feel”
Microfiber Fabric Allows foot to No socks required; shoes will
breathe not start to smell bad
Wide Toe Box Runner can splay Allows a more natural
toes wider “barefoot” feel in the shoe

20. Media Plan & Budget

21. Media Vehicles Used
Traditional Media Digital Mobile OOH
• Magazines • Social Media • Coherent with • Events
• Newspapers • Blogs Digital • Sponsorships for
• Merrell Advertising Projects
Homepage Campaign
• (Magazine)
Websites
• Hulu

22. MRI

23. Geographices & Awareness(Simmons)

24. Media Budget
$ 2M Allocated for Internet Advertising. (10% of $20M)
Internet
Youtube
Hulu
24

25. Media Budget Print
$10M Allocated for Print (50% of $20M)
Magazines Magazines
Backpackers Runner’s World
Outside Buyer’s guide Men’s Fitness
Men’s Journal Men’s Health
Women’s Health Shape
25

26. Budgeting con’t
• The budget for digital press will be up to 15%
which equals to $3M
• And lastly 25%, which means up to $5M will
be dedicated to:
– Events
– Sponsorships
– Outdoor

27. Total Budget
Medium Amount Allocated
TV $0
Print Press $ 10,000,000
Digital Press $ 3,000,000
Sponsorship $ 1,666,666
Events $ 1,666,666
Internet $ 2,000,000
Outdoor – Billboards, Buses, Gas Stations $ 1,666,666
TOTAL $ 20,000,000
27

28. Digital + Mobile Campaign

29. Relevance of Social Media
• 18-34-Year-Olds are Most Active in the Social Media World1
• 95% of our target market (who use the Internet) engaged in Social
Media in 20102
• Active Adult Social Networkers are 47% more likely to be heavy
spenders on clothing, shoes and accessories1
1Nielsen's
Social Media Report for Q3 2011
2The 2011 Social Media Consumer Report

30. The Barrier Glove’s Social Media Plan
Facebook Twitter Youtube Blogs
• Event + Sales • Create • Viral Videos • Promote
Promotions
constant • Educational Merrell Blog
• Creative conversations Material • Partnership
Competitions
• Thought with Barefoot
Leadership and Minimalist
Experts
Same channels targeted in Mobile Campaign.

31. The Barrier Glove
and Facebook
• Creation of an ongoing dialogue with fans
• Daily updates
• Promotion of Merrell’s sponsored events
• Encouraging fans to post pictures with Barrier Glove
• Creative Competitions
+

32. Magazine Websites
Besides print ads for the chosen magazines, we will also advertise in their digital editions.
Outside Buyers Magazine Website Shape Magazine Website
• 400,000+ unique visitors per
month • 1 Million Monthly Unique
(OutsideBuyers.com) Visitors (on average)
• 700,000+ Newsletter Subscribers
(Shape.com)

33. Youtube & Hulu
Ads on both sites
• Pre-roll Ads
• Show amazing adventures possible with the Barrier Glove
• Promoted educational material on how to run minimalist

34. Growth Potential of the Mobile Market
94% of the Trail Gloves Target Market owned a mobile phone in 20101
(based on demographic parameters)
Year Smartphone Owners* Tablet Owners*
2011 103 Million2 34 Million3
2014 133 Million3 87 Million3
*Of Total U.S. Population
1Mobile Consumer Report Simmons 2Understanding Mobile Ads 3New Media Trend Watch Smartphones

35. Mobile Media Plan
Smartphones and Tablets
• Merrell Application
• Geographic targeting
• Banners on Search Engines
and Websites
• Rich Media

36. Mobile App
• Based on Barefoot Training App
• Educational Material on Trail Running
• Offers Diary-like entry platform to follow personal training progress

37. Mobile Advertising
• Banner and graphical ads
• On Search Engines
• Magazine Websites
• Promotions will be sent based on location (geo) targeting

38. Forecasting &
Longevity

39. Pricing
– Men: between $ 85 and $ 170 – in average
$110
– Women: between $ 85 and $ 130 - in average
$100
– Competitors: Montbell Stretch Gaiter : $29.85
Our attractive price:$124.99

40. Increased Popularity in Obstacle Races
• Top three promotions: Spartan Race, Warrior
Dash, Tough Mudder
– 50,000 participants combined in March
– YTD top three 116,000
– Participation increases in the warmer months
– Est. 2M participants by Year End ‘12 in the top
three promotions alone
http://www.myexercisecoach.net/50000-participate-in-top-3-obstacle-races-in-march-spartan-race-raises-the-bar-with-marathon-
distance-obstacle-race/

41. Trends in sales
In the below chart shows the gross sales compared to percentage of growth over five
years for the FOOTWEAR category.
Graph: Datamonitor’s Industry Profile “Footwear in the United States”, June 2010. Ref# 0072-0619 .

42. Past sales and market segment
performance is encouraging for future
Lightweight Running Gear Sales
• Merrell year end 2011 = 500,000,000.00
400,000 pairs of 450,000,000.00
“Barefoot” line of shoes 400,000,000.00
sold. 350,000,000.00
• Around $100 per pair 300,000,000.00
• $40,000,000 worth of 250,000,000.00 Lightweight Running
Gear Sales
shoes moved 200,000,000.00
150,000,000.00
100,000,000.00
50,000,000.00
0.00
•Q3 ‘10 •Q4 ‘10 •Q1 ’11 •Q2 ‘11
http://www.sportsonesource.com/news/weekly/sgbwee ZMUDA, NATALIE. "Marketers Sprint To Join Lightweight-Running Craze." Advertising Age 82.31 (2011):
10. Business Source Premier. Web. 25 Feb. 2012.
kly/reader/sgbw_1108.asp http://web.ebscohost.com.rlib.pace.edu/bsi/detail?vid=6&hid=108&sid=11ae03ed-d7fc-40cf-928a-
2f44a549c55e%40sessionmgr12&bdata=JnNpdGU9YnNpLWxpdmUmc2NvcGU9c2l0ZQ%3d%3d#db=buh&AN=652
17038

43. Longevity
• On track for $1.8B in sales of shoes in the “Lightweight” category YE 2012.
• "It's such an important new idea in footwear that in a couple of years, we
probably won't be talking about lightweight anymore, because everything
will be lightweight…" - Matt Powell, SportsOneSourse
• "Once you've made the transition [to a minimal or lightweight product] it's
difficult to go back…What will happen in the more mainstream channels
remains to be seen, but in performance and specialty channels, it's here to
stay.“ - Katherine Petrecca, collection manager for New Balance's minimal
line.

44. CSR

45. Soles4Souls
 In the aftermath of the 2004 tsunami that hit Southeast Asia
 Wayne Elsey - the Founder
 Soles4Souls collects new shoes to give relief to the victims
of abject suffering and collects used shoes to support
micro-business efforts to eradicate poverty.
 Soles4Souls’ other two divisions, Clothes4Souls and
Hope4Souls, provide the same relief and support through
clothing and other necessities.

47. Event Promotion: Down & Dirty
 Even the littlest enthusiasts can partake in the fun with
Adventure Kids presented by Paul Mitchell, a one-mile
mud run or a shorter adventure dash, all ending in the
massive mud pit to crawl to victory.
 The series has raised over $100,000 for Operation
Gratitude, a non-profit organization that sends personalized
care packages to military personnel deployed overseas.

48. Event Promotion: Down & Dirty
 Since the series’ premiere in 2010, thousands of athletes
have taken on the military-inspired courses across the
country!
 The 2012 tour will take on 10 cities around the country!
Will be in New York on September 30th
 Racers will compete on either 5K or 10K courses that
include military-style obstacles, mud crawls, and new
strength challenges

49. Home Page of Down& Dirty:
 Simmons:
 With an index of 137 – Asian people are 37% more likely to
buy jogging or running shoes in the past 12months.
 With an index of 159 - males between 18 to 24 are 59% more
likely to buy jogging or running shoes in the past 12months.

50. Marketing &
Promotion

51. 3 Phases of Launch Marketing
Pre-Launch Launch Post-Launch
• Build Buzz • Maximize • Sustain Interest
• Tease Early Product- • Promote Cost
Adopters and Awareness Effectively
Experts in the • Drive Consumer
Field
Engagement

52. Distribution plan
Different way to buy their shoes:
– Merrell shops
– Online
– Retailers (more than 89 in NYC)
Julie Lefeuvre

53. Packaging
• The usual Orange and brown Merrell shoes
box
Julie Lefeuvre

54. Homepage Promotion

55. Barefoot Section (on website)

56. Barefoot Section (on website)

57. Facebook Promotion
Facebook Game:
 For the first time ever, our followers can participate in a
Facebook simulation game
 Simulates a hike up a mountain of choice, where you have
to run and jump in order to pick up reward items
 After playing the game and successfully finishing
tutorial, players are able to get $5.00 off Barrier Glove
Must be a fan of our page to play.

59. Printed Ad
 Simmons:
Males & Females 24 to 34
Male
150%
100%
Male
50%
0%
Target shooting Jog/run
Female
80%
60%
40%
20%
0% Female
Target shooting Mountain/ rock Jog/run Hike
-20% climbing
-40%
-60%
-80%

60. Printed Ad

61. Thank you!!!
Questions?