Yanira Losoya, Stephanie Alvarez, Tianya Nie, Lauren Thompson

Lola & Lexi is a shoe company dedicated to the forgotten

female market segment in shoes. With the help of independent

shoe manufactures, specifically those who specialize in wide,

narrow, and large soles, they work with Lola & Lexi to produce

the best possible product for our customer. At our Lola & Lexi

boutique, our team is dedicated to serving customers with feet

that are large, wide, narrow, or a combination of these in order

to make them feel comfortable, confident, and welcomed. At Lola

& Lexi, shoes for everyone is our specialty.

Our Mission

Customer Profile

Annabelle, 52

•Buys for functionality and comfort •Prefers modern/classic styles •Active, enjoys golfing •Dining out with husband and/or friends •Shopping, buying organic foods

Location

•2,066 SF •$13,945/month •18 foot ceilings •Store front with window •Mahogany doors •Surrounded by high end shops and restaurants •5 minutes from Caltrain

323 University, Palo Alto, California 94301

Demographics: Palo Alto

•Median Age: 49.1 •Average income within 1-mile: $159,234 •Retail volume for women’s clothing stores within 1-mile: $3.8 million; within 5-miles: $47.0 million •Retail volume for shoes within 1-mile: $2..1 million; within 5-miles $28.0 million

Primary Research: Survey

•32 Respondents •77% of respondents over age 44 •The use of social media varied

Source of Hearing About New Brands

Magazines

Word of Mouth

Online

In Store

Pop Culture

0 2.75 5.5 8.25 11

Price

Comfort

Quality

Design

Brand Name

Trendiness

Sex Appeal

Heel Height

Country of Origin

0 7.5 15 22.5 30

Top 3 Responses

What are the most important factors in buying shoes?

How do you hear about new brands?

How we will achieve Success: In order to achieve a success, at Lola & Lexi, we plan on going above and beyond to give our customer our upmost attention in order to cater to their needs and provide them with the best shoe shopping experience to ensure they continue to shop with us for years to come. Objectives: 1. To create a customer experience that is memorable and

pleasing. Serve our customers with the best possible service to ensure they become loyal customers of Lola & Lexi.

2.To increase sales profits on a steady pace. With the help of satisfied customers we hope to increase our loyal customers by at least 30% yearly.

3.To keep in business by serving our customer with a product and experience they have been missing.

State of the Industry

•Women’s shoes alone controls 1/4 of the entire industry •Women’s shoes are getting larger; average shoe size has grown more

than one size in the last 3 decades •Demand for larger shoes has increased

Company Concept •Different styles ranging from size 5-16; width 4A-4E •Accurate measurements: foot, ankle, calf •Exceptional service •Online videos and instructions •Shoe guide, how to measure at home •Free shipping; 10% off first pair

Products

•High quality •Beautiful color options •Soft touch •Superior durability •Seven standards for our shoes: proper fit,

legibility, breathability, cushioning, wearability, arch support, fashion

Entry and Growth Strategy

•Rarely seen in the United States •Nordstrom carries wide and narrow shoes, but sold only online •Zappos sells wide and narrow shoes, but very unattractive •Shoes of Prey and Milk & Honey: customers design own shoes, online only •Based in Palo Alto, CA: high income and middle aged women

Growth

•5 years: expansive presence in Bay Area •Customizable shoes •Expand customer base to younger generations •Handbags and accessories

Market Size and Trends

•Women in their 40s and older have pain and deformities from wearing ill-fitting shoes •45% of women over age 35 have problems choosing shoes •National Shoe Retailers Association: in the past 30 years the average

shoe size has increased by one full size •In the next 5 years: wider •In the next 10 years: 1/3 size bigger than today

Competitors

Nordstrom Zappos.com Shoes of Prey

Strengths • Good reputation• Good quality• Excellent ads/e-

commerce/social media

• Well known• Good ads• Best e-commerce

• Customers make own shoes by choosing colors, materials, styles, heel heights

Weaknesses • High price points: $120-$1,000

• Online only• Ugly

• Online only• Australian

Exit Strategy

•Two options for buy-out plan 1. If at any time one of the joined owners wishes to leave the company,

she has the right to sell her business to another person 2.The remaining partner can buy the business from the leaving partner •Can be completed in 2 years

Product Line Sheet Fall/Winter 2014

‘Kerry’ Court Pump Wholesale Price: $159 Retail Price: $265

‘Minti’ Short Heel Pump Wholesale Price: $141 Retail Price: $235

‘Naria’ High Heel Sandal Wholesale Price: $159 Retail Price: $265

‘Tammy’ Flat Sandal Wholesale Price: $72 Retail Price $120

‘Ramona’ Soft Slipper Wholesale Price: $117 Retail Price: $195

‘Terri’ Flat Wholesale Price: $87 Retail Price: $145

‘Tillie’ Lattice Flat Wholesale Price: $105 Retail Price: $175

‘Harlow’ Slingback Bootie Wholesale Price: $195 Retail Price: $325

‘Brigham’ Moto Boot Wholesale Price: $210 Retail Price: $350

‘Everly’ Fringe Bootie Wholesale Price: $177 Retail Price: $295

‘Reina’ Slingback High Heel Wholesale Price: $165 Retail Price: $275

‘Rachel’ Slingback Peep Wholesale Price: $141 Retail Price: $235

Allen Edmonds

•Established in 1922, Lake Michigan, Wisconsin •provides handcrafted shoes that are small, narrow, wide and everything in

between.

Equipment/Labor• Metal Dyes • Hides • Sewing machines (single/double needle) • Eyehole punchers (lace-up shoes) • Insole die cutters • Ply-rib machines • Lasts (used to form the shape of the shoe) • Heat/stretch machines • Lasting tools (used to stretch the upper around

the last) • Goodyear welting machines • Sanding machines • Waxing wheels • Shoe bag and box

Equipment/Labor

•Replaced assembly lines with teams of people working in groups where each employee does several different jobs. •Helped improve the budget for the factory, reduced overtime, and made it

easier for when employees were absent.

Equipment/Labor

•Produce 36 pairs per 12 styles and within those 12 styles each size will contain 6 same size shoes. In total they will have 432 pairs produced by Allen Edmonds manufacture and will split that in half so that 216 will be for the store stock and the other half will be for their e-commerce stock •If the store does not have your size, no need to

worry, we could order them for you and offer shipping free of charge to have them here within three business days

Critical Risk and Problems

•Run out of money or mismanage money •Time commitment •Manufacturing risk •Marketing risk •Competitors cut their price •The industry growth rate drops •Design or manufacturing costs exceed your projection •Your sales projection is not achieved •Competitors up the ante by releasing a new, better product •Public opinion of your product or service changes

Product Improvement and New Product

•Every season having inner changing color pallets for that current season. • The style of the shoe will essentially stay the same but the material and color

will change. •Repair program for half of what you originally paid. •Keeping things simple but very fashion forward so that the shoes are worn more

than a handful of times •Future: •Adding new styles to our line sheet to play with current season •Adding embellishments and hardware