VTC Calculation

Incremental 60
Total cost 87
Competition (Nike) 100
Substitue (AllBirds) 135
Price 130
VTC 143

https://coresight.com/research/deep-dive-athleisure-update-a-ma
Athleisure Footwear US SAM

Closest Competitor - Reference Value $135

Saving On Return Courier Charges $8
Additional Saving due to High
Durability*(Longer life) $20
VTC $163
* Dependent on different factors inc. weight/useage/terrain etc
 Production Labor $ 2.8
Material $ 52.5
Rent Equipment $ 3.0
Manufacturer's Operating Profit $ 1.8
incremental cost Factory FOB Cost $ 60.0
Sea Frieight & Insurance $1.0
Duty $4.00
Landed Cost $65.00
SG&A $ 22
Total Cost/shoe $87.00
Markup 50%
Retail Price $130.00

Forecasted Target
SOM $ 100,000,000
-athleisure-update-a-market-in-transition/ % Market Share after Year 1 2%
37 billion SAM Revenue at Year End $ 2,000,000
$ 37,000,000,000 # of Pairs sold @$130 15,385

Marketing Spend Amount

Budget = 10% of Expected Reve $ 200,000
Facebook & Instagram 110000
Public Transit Ads 30000
Local Campaigns/Sponsorships 40000

Print Media/Flyers 20000

ht/useage/terrain etc
 Expense Type Amount # Type Cost/Shoe
Marketing $ 200,000 a) Material Cost
Admin & Overhead $ 137,000 Merino Wool $ 20
Total $ 337,000 Tencel $ 15
SG&A expense/shoe $ 22 Misc. $ 17
Total Material Cost $ 52
b) Labor cost $ 3
c) Rent Equipment $ 3
d) Manufacturer's Operating Profit $ 2
Factory FOB/Incremental Cost $ 60
e) Sea Frieight & Insurance $ 1
f) Duty $ 4
g) SG&A $ 22
Total Cost per shoe $ 87
Markup 50%
Retail Price $ 130

Revenue $ 2,000,000
COGS $ 1,000,000
Gross Margin $ 1,000,000
SG&A $ 337,000
Operating Profit $ 663,000

% Share

55%
15%
20%

10%