1. 1. https://youtu.be/FPMPJ40Y4NI
2. 2. Evolves vision is to be the global leader of branded footwear, offering the widest choice of ethically produced and stylishly designed shoes for ultimate performance.
3. 3. We enable people worldwide to express their individuality. express yourself
4. 4. Our global appeal, efcient manufacturing facilities and focus on understanding our customers changing needs, delivers a truly differentiated business model. global appeal efcient manufacturing understanding our customers
5. 5. By providing a constantly evolving footwear experience to a global audience, we will achieve and sustain an inimitable market leading position. constantly evolving global audience market leading
6. 6. May 7, 2017 CSR Strategy & Award - Figures
7. 7. May 7, 2017 CSR Strategy & Award - World Wide Ranking
8. 8. May 5, 2017 Competitive Strategy Internet - Year 10 to Year 18 Year Global Strategy 11&12 N/A 13 Models Offered & Celeb appeal 14 Advertising & Celeb appeal 15 Models Offered, Free Shipping & Celeb appeal 16 Models Offered, Free Shipping & Celeb appeal 17 Models Offered, Free Shipping, Celeb appeal & Advertising 18 Models Offered, Free Shipping, Celeb appeal & Advertising 19 & 20 SQ Rating & Price
9. 9. May 5, 2017 Competitive Strategy Internet - Year 10 to Year 18
10. 10. May 5, 2017 Competitive Strategy Wholesale - Year 10 to Year 18 YEAR NA LA EA AP 11&12 N/A N/A N/A N/A 13 Models avail, celeb appeal Models avail, celeb appeal Models avail, celeb appeal Models avail, celeb appeal 14 Advertising, celeb appeal, rebate, delivery time Advertising, del time, celeb appeal Advertising, celeb appeal, rebate, delivery time, retailer support Advertising, del time, celeb appeal 15 the above + increase in models availability Models, celeb appeal, outlets, del time, rebate (+) models, rebate, del time, celeb appeal Models avail, celeb appeal, outlets, del time, rebate 16 the above + retail outlets (+) the above and repeated it. the above + retail outlets (+) the above and repeated it. 17 the above + increased advertising (+) models, advertising, rebate & celeb appeal (+) models, rebate, del time, celeb appeal (+) models, advertising, rebate & celeb appeal 18 the above + decrease delivery time the above (-) del time. the above + advertising, reduced del time the above (-) del time. 19&20 Price & SQ Price & SQ Price & SQ Price & SQ Evolve
11. 11. May 5, 2017 Competitive Strategy Private label - Year 10 to Year 18 10-15 19-20 16-18 Build CSR Reputation Evolve with Market Differentiation CSR Evolve Core Models offered Bid Price Target 3 regions Positioning strategy Reduce models volume Withdraw from Private label if possible CSR Work life balance for work force no O/T Reduced models volume Low bid price Not target LA Reduce Over time in line with CSR
12. 12. May 5, 2017 Year 19 Year 20 Performance targets Performance Year 19 Year 20 EPS $5.92 $10.12 $5.95 $10.20 ROE 19% 22% 20% 23% Credit Rating A- A- A- A Image Rating 80 77 80 80 Stock Price $82.20 $173.00 $87.20 $177.00 Total Annual
13. 13. May 7, 2017 Year 19 Year 20 Performance targets
14. 14. May 5, 2017 Production strategy - Overview Plant Location Social People Development Costs North America Asia New location: Europe CSR culture Incentive pay Recycling Green material Diversity training Ethics training Six sigma/TQM training Best practice training Energy efciency Reduced overtime Foreign exchange uctuations intelligent distribution of goods Celebrity Endorsements Evolve Marketing spend
15. 15. May 5, 2017 Evolve Finance Strategy - Stakeholder Value Model Employee Engagement and training Investment in energy efciencies and green materials Y13: Stock buyback Y17: Dividend payment NA and EA: Plant investments Renance and consistent loan repayment
16. 16. May 5, 2017 Internet Global Market Share Achilles Zeus Evolve Flyte 23% 10% 26% 40% Evolve is driven by market share, therefore this is the KPI selected for competitive analysis EVOLVE STATUS: CHASING MARKET SHARE Closest Competitor FLYTE (Team D) Similar strategy: High No. Models with moderate S/Q rating focusing on all four regions Competitive Analysis - Year 18 Snapshot Internet Marketing
17. 17. May 7, 2017 Competitive Analysis - Year 18 Snapshot Internet Marketing Evolve Flyte Difference S/Q Rating 7 * 7 * = Models Offered 346 350 -4 Free Shipping Yes No Total Advertising Spend (m) 71 63 + 14% Global Celebrity Appeal 1,465 820 + 79% Average Price ($ per pair) $86.50 $72.49 + 19% Global No. Pairs Sold 1218 1678 -27% Global Market Share 26% 40% -14% Closest Competitor Analysis Competitive Advantages Free Shipping Switching costs Celebrity Appeal Barrier to entry Competitive Disadvantages Price Substitute threat No. models (marginal) Supplier power
18. 18. May 7, 2017 Wholesale Global Market Share Achilles Zeus Evolve Flyte 27% 22% 28% 23% Evolve is driven by market share, therefore this is the KPI selected for competitive analysis EVOLVE STATUS: DOMINANT MARKET SHARE Closest Competitor Achilles Different strategy: Low no. models with high S/Q rating focusing on AP and LA market Competitive Analysis - Year 18 Snapshot Wholesale Marketing
19. 19. May 7, 2017 Competitive Analysis - Year 18 Snapshot Wholesale Marketing Closest Competitor Analysis Competitive Disadvantages S/Q Rating Supplier Power Price Substitute Threat Global outlets used Supplier Power Retailer Support Supplier Power Evolve Achilles Difference Average Price ($ per pair) $63.46 $59.20 + 7% S/Q Rating 7 * 10 * - 3* Models Availability 350 50 + 300 Total Advertising Spend (m) 71 64 + 11% Rebate Offer $4 $2 + 50% Total Global Retail Outlets Used 11,084 13,762 -19% Retailer Support ($ per outlet) 550 600 -8% Delivery Time (weeks) 2 3 33% faster Global Celebrity Appeal 1,465 1,125 + 30% Global No. Pairs Sold 7008 6861 + 2% Global Market Share 28% 27% + 1% Competitive Advantages Model Availability Switching costs/ Supplier Power Advertising Barrier to entry Rebate offer Buyers bargaining power Delivery time Buyers bargaining power Celebrity Appeal Barrier to entry
20. 20. May 7, 2017 Private Label Global Market Share Achilles Zeus Evolve Flyte 5% 81% 14% 0% Evolve is driven by market share, therefore this is the KPI selected for competitive analysis EVOLVE STATUS: LOW MARKET SHARE Closest Competitor ZEUS Different strategy: Private-Label Focused more aggressive pricing across all regions meant Zeus secured market share Competitive Analysis - Year 18 Snapshot Private Label
21. 21. May 7, 2017 Competitive Analysis - Year 18 Snapshot Private Label Closest Competitor Analysis Competitive Disadvantages Price Substitute threat No. Pairs Offered Suppliers bargaining power No. Pairs Sold Buyers bargaining power Competitive Advantages n/a Evolve Zeus Difference Global Average Bid Price (if bid) 28.10 27.75 + 1% S/Q 7 7 = Total Models Offered 1563 3915 -60% Total Pairs Sold 767 3915 -80% % of Pairs unsold 49% 0 + 49% Global Market Share 14% 81% -67%
22. 22. May 7, 2017 Competitive Actions - Short Term InternetSegment DecisionOptions Investinshoequality (target8-9*S/Q) Increasemodelsoffered ReducePrice WholesaleSegment DecisionOptions Investinshoequality (target8-9*S/Q) ReducePrice Increasemodelsoffered Increaseno.ofretail outlets Increaseretailersupport Private-LabelDecision StrategyOptions ReducePricingtocapture marketshare StepawayfromP-L market DISTRIBUTIONS & OPERATIONS 1. Consider re-alignment of SBUs Production to meet demand 2. Build plant in Latin America protects business from potential externalities. LA plant because savings made for distribution to NA Pay back loans
23. 23. May 7, 2017 Lessons learnt 1. Focus: we tried to be too many things at the same time 2. Partnerships: Zeus (Partnership offered to Flyte in year 14) 3. Pricing Strategy: less aggressive
24. 24. May 7, 2017 Lessons learnt - Partnerships - Unicef
25. 25. May 7, 2017 Lessons learnt - Partnerships - Bobs for Dogs
26. 26. Thank you!