Manitobah Mukluks In Finland

INTERNATIONAL BUSINESS PLAN MANITOBAH MUKLUKS

ADUSEI FOFIEH TINISHA RAMJEET DILPREET SEKHON ZAHID SYED

“Stitch by stitch, bead by bead, we tell the story of the people.”

- Manitobah Mukluks

Company Profile

Legal Name: Blue MooseClothing Company Ltd.

Operating Name: ManitobahMukluks

Est. 1990 by Sean McCormick

3

Product Description

4

Market Analysis- WHY Finland?

5

Similar climatic conditions to Canada

Ranked 10th on World Bank Doing Business Report

Access to the latest Research fromthe extensive cooperationbetween Finnish Universities andthe private sector Business

Freedom

Protection of foreigninvestment 56 BilateralInvestment Conventionssigned by Finland

PoliticallyStability

One of the least corruptcountries- TransparencyInternational

Market Analysis (con’t)

6

Market Size & Share Market Trends

The industry continue to be negatively influenced by weak economic growth

Retailers have adopted multi-channel approach (Online & Store)

Number of retailer outlets declined by 3% as at 2015

Industry growth of -2% as at 2015

1%

99%

Market Analysis (con’t)

7

Competitiveness Prospects

Online sales is expected to grow at 3% from 2015

Industry is expected to grow by 2% from 2016

Majority of Finns are still likely to buy luxury brands

23 Major retailer/players are in the industry

Leading brands or companies are of domesticor Scandinavian origin- Absent of NorthAmerican brands

Leading player, H&M has 11% of total retailvalue sales

Sales of luxury brands outperformed theoverall retailing market

Premium/Luxury Brand

Authentic Canadian Brand Women 18-34

8

Market Positioning

9

SWOT Analysis

Weaknesses

Less presence on Social media

Expensive

More labour intensive

Strength

Culture and design

Authenticity and quality of the footwear

Exclusive production technique- handmade

Uniqueness of footwear

10

SWOT Analysis (Con’t)

Opportunity

Must increase its presence and engagementon social media to engage and share theAboriginal story on footwears

Majority interest in the aboriginal culture asembodied in footwear

Threats

Negative effects of globalization poses a potential threat

Probable loss of Intellectual Property

There are a lot of competitors selling similar styles in the Finnish market- UGGs & Sorel

Competitive Advantage

11

heritage brand built on the models of the

aboriginal communities

technological sole that withstands urban

environments with different climate

exclusive production technique- hand made

Marketing & Sales Strategy

12

Product Strategy

Product Value Prepositionbuilt on a heritage brandquality technological soleexclusive production technique- hand made

Product Designmade from sealskin, moose hide etc.hold the story of how the aboriginal ancestors lived, worked & playeddesigned on the traditional styles, leather, and colours of red, green, blue and yellow

Packaging and labellingEU technical requirementsColours of blue-clean or water, yellow-heart/warmth, red- strength/quality with white (peace) writings

Marketing & Sales Strategy

13

Pricing Strategy

Market Skimming Strategy (Premium Pricing)Brand PositioningParticular Segment of the market

Marketing & Sales Strategy

14

Distribution Strategy

Direct to Consumer Model

Manitobah Mukluks www.manitobah.ca

Directed to Retail Stores website

Stockmann

Sent to customers

Intermediary Model

Distributer: Stockmann

Marketing & Sales Strategy

15

Distribution Strategy

Intermediary Model

Transportation Cost- CAD23,881Insurance - CAD6,250

Marketing & Sales Strategy

16

3PL

Tri-ad International Freight Forwarding Ltd.

Bankers

Marketing & Sales Strategy

17

Promotion Strategy

Agency- San Francisco OY80%

90%

1,927,000

70%

CAD78,284

CAD63,684

CAD63,684*

CAD 90,840

Financial Overview

18

Sales Forecast

2017 2018 2019

CAD CAD CAD

Selling price per pair 250 250 250

Budgeted sales in Pairs (Units) 10000 10500 11000

Total Revenue 2,500,000.00 2,625,000.00 2,750,000.00

Bank of Canada Exchange Rate of 0.69 as at

July 29, 2016 0.69 0.69 0.69

Total Revenue in Euros 1,725,000.00 1,811,250.00 1,897,500.00

Summary of Pro Forma Income Statement

2017 2018 2019

CAD CAD CAD

Sales 2,500,000 2,625,000 2,750,000

Cost of Goods Sold (45% of Sales) 1,125,000 1,181,250 1,237,500

GROSS PROFIT 1,375,000.00 1,443,750.00 1,512,500.00

Operations Expenses 1,389,131.00 1,116,837.55 1,112,294.10

NET INCOME BEFORE TAX (14,131.00) 326,912.45 400,205.90

TAX (26.5%) (3,744.72) 86,631.80 106,054.56

NET INCOME AFTER TAX (10,386.29) 240,280.65 294,151.34

2017 2018 2019

CAD CAD CAD

CASH INFLOW

Collections from Sales 2,500,000 2,625,000 2,750,000

Total Outflows 1,369,131 1,096,838 1,092,294.10

NET CASH INFLOW 1,130,869 1,528,162 1,657,706

Summary Statement of Cash Flow

Risk Management Analysis

19

RISK IMPACT LIKELIHOO

DMITIGATION PLAN

Fluctuation of foreign exchange rates

Medium High

Probable Market hedges or forward contracts

Suppliers bankruptcyMedium High

Occasional

Manitobah Mukluks would have a secondary/ back up suppliers or contractors on dealings with sub-contractors

Non- Payment Medium Occasional

• Credit check• Irrevocable letters of credit• Insurance from Gov. of Canada

- Credit Insurance

Risk Management Analysis (Con’t)

20

RISK IMPACT LIKELIHOO

DMITIGATION PLAN

Breach of contract/Non-Performance Sub Contractors

Medium Occasional

Manitobah Mukluks would have a secondary/ back up suppliers or contractors on dealings with sub-contractors

Transfer/Shipping RiskMedium -High

Probable

The company would insist that theshipper take appropriate measures inlading, stowing and securing withpenalties for default. Sign up forinsurance to mitigate risk arising fromshipping.

Political RiskMedium

lowRemote

Signing up for political risk insurancewould allow Manitobah Mukluks toleverage against any damage caused byany possible actions of the Finnishgovernment including confiscation,expropriation etc

Implementation Blocking Chart

21

MANAGEMENT

22

Sean McCormick, President & Founder

Board of Directors

Josh Fine, Vice President

Nelson A. Leong P. Eng, COO

Jason McNish, Operations Manager

Tara Barnes, Brand & PR Manager

Debbi Kravetz, Sales and Marketing Manager

23

Canadian Manufacturers & Exporters (CME) Emerging Award winner 2016

Canada Post’s E-commerce Innovation Award winner 2015

Start-up Canada Award For International Trade 2015

Canadian Aboriginal and Minority Supplier Council Small Business of the

Year Award 2014

24

Innovation, Science and Economic Development Canada. Canadian Company Capabilities. Government of Canada, 06 June 2016. Web. 6 June 2016.

"Company Profile." Manitobah Mukluks. Web. 29 May 2016.

Manitobah. CAPE Fund L.P. Announces an Equity Investment in Manitobah Mukluks. Cape Fund, 14 July 2010. Web. 04 July 2016.

"Sami in Finland" Sami in Finland. Research Centre of Wales, n.d. Web. 04 July 2016.

Bryan Lee. "The Role of Customs Broker in Global Trade World." Regulations. More Than Shipping, 03 Sept. 2013. Web. 04 July 2016.

Innovation, Science and Economic Development Canada. Canadian Company Capabilities. Government of Canada, 06 June 2016. Web. 6 June 2016.

Our Team. Metis Economic Development Fund, 2016. Web. 6 June 2016.

Nelson A. Leong P. Eng. LinkedIn, 2016. Web. 6 June 2016.

http://sheepskinshoes.com

Birnbaun, Elisa. Social Entrepreneurs like Manitobah Mukluks Finding Their Way in Nascent Impact Investment Scene. Financial Post Social Entrepreneurs like Manitobah Mukluks

Finding Their Way in Nascent Impact Investmentscene Comments. N.p., 3 July 2014. Web. 28 May 2016.

Winnipeg's Manitobah Mukluks Uses $3.5 M EDC Loan Guarantee to Grow Its International Export Program - Export Development Canada (EDC). Web. 29 May 2016.

"Apparel and Footwear Specialist Retailers in Finland." Euromonitor International. N.p., 18 Jan. 2016. Web. 18 July 2016.

Economies and Consumers Quarterly Data: Finland; Euromonitor International. N.p., 2016.

Web. 23 June 2016.

Country Analysis Report: Finland, In-depth PESTLE Insights; MarketLine. N.p., 01 July 2015.

Web. 23 June 2016.

"Terms of Use.”Manitobah Mukluks. Web. 29 May 2016.

Bradford, Jackson. "The Difference Between Mukluks and Moccasins." Ezinearticles, 16 July 2012. Web. 23 June 2016

"Country Analysis Report: Finland, In-depth PESTLE Insights." MarketLine. N.p., 01 July 2015. Web. 23 June 2016.

Doing Business Report 2015. Rep. 12th ed. Washinton DC: Word Bank Group, 2014. 4. Print.

"Economies and Consumers Quarterly Data: Finland." Euromonitor International. N.p., 2016. Web. 23 June 2016.

"Shoes & Leather Goods – Finland: Statista Market Forecast." Statista. N.p., n.d. Web. 23 June 2016

Works Cited

25