F.Y.MMS 2012                                  Introduction to Heely’sWe are a designer, marketer and distributor of innova...
F.Y.MMS 2012                                        Target MarketThe growth and longstanding popularity of skateboarding, ...
F.Y.MMS 2012                                   Business Strengths:Heely’s company contributes their strengths towards:    ...
F.Y.MMS 2012   Focus on Innovation with Intellectual Property Protection.Our innovative HEELYS-wheeled footwear is highly ...
F.Y.MMS 2012   Compelling Value Proposition for Retail Customers.We believe that our differentiated product offering and b...
F.Y.MMS 2012                              Heely’s Marketing StrategyOur marketing strategy is to position our products and...
F.Y.MMS 2012 Point-of-Purchase DisplaysCertain of our retail customers have committed valuable floor space to POP display...
F.Y.MMS 2012Conclusion                      Page | 8
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Introduction to heely

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Introduction to heely

  1. 1. F.Y.MMS 2012 Introduction to Heely’sWe are a designer, marketer and distributor of innovative, action sports-inspired products underthe HEELYS brand targeted to the youth market. Our primary product, HEELYS-wheeledfootwear, is patented, dual-purpose footwear that incorporates stealth, removable wheel in theheel. HEELYS-wheeled footwear allows the user to seamlessly transition from walking orrunning to skating by shifting weight to the heel. Users can transform HEELYS-wheeledfootwear into street footwear by removing the wheel. Our distinctive product offering has drivenour growth, and we believe that our HEELYS brand is becoming synonymous with anincreasingly popular lifestyle activity. We believe that the growing exposure of our HEELYSbrand will allow us to selectively introduce additional product categories in the future by takingadvantage of our expertise in product development and sourcing, strong retail relationships andknowledge of our target consumer.We were initially incorporated as Heeling, Inc. in Nevada in 2000 and were reincorporated inDelaware in August 2006 and changed our name to Heely’s, Inc. Through our general andlimited partner interests, we own 100% of Heeling Sports Limited; a Texas limited partnership,which was formed in May 2000. Page | 1
  2. 2. F.Y.MMS 2012 Target MarketThe growth and longstanding popularity of skateboarding, inline skating, roller skating andscooter riding in the United States reflect consumers’ interest in wheeled sports activities. Forexample, skateboarding and inline skating have remained a part of youth culture for more than40 and 25 years, respectively. Our HEELYS-wheeled footwear, which we believe has broadpatent protection relative to other wheeled sports products, appeals to many of these sameconsumers. While the market for HEELYS-wheeled footwear has grown significantly since ourfirst product was introduced in 2000, we believe this market continues to have growth potential.Our products appeal to a broad range of young, active consumers around the world who enjoywheeled sports activities. Our primary market is six to fourteen year-old boys and girls, an agegroup in the India. Page | 2
  3. 3. F.Y.MMS 2012 Business Strengths:Heely’s company contributes their strengths towards: Strong Brand Recognition. We believe that our brand awareness is a significant competitive strength. We have positioned the HEELYS brand to represent a fun, youthful and active image and we believe it now defines an emerging lifestyle activity with a following among consumers in our target market. According to data collected by NPD, a retail and apparel industry research group, HEELYS-wheeled footwear had a 51.0% market share in retail sales dollars and a 37% market share in units sold for skateboard-related footwear brands for the quarter ended December 31, 2006. Appealing, High-Quality Products. We strive to provide high-quality, stylish products. We carefully select our independent manufacturers and diligently monitor their manufacturing process to ensure the quality of their finished goods. To stimulate demand for our products and encourage repeat purchases by consumers, we endeavor to consistently offer a line of wheeled footwear that combines style, comfort and high-quality components including ABEC-rated bearings, specially formulated polyurethane wheels and abrasion-resistant outsoles and upper materials. We have generally introduced more than 20 standard styles each year in an attempt to respond to changing consumer tastes and preferences. Page | 3
  4. 4. F.Y.MMS 2012 Focus on Innovation with Intellectual Property Protection.Our innovative HEELYS-wheeled footwear is highly differentiated from other wheeledsports products and athletic footwear. We believe that our patents and pending patentapplications enable us to maintain this differentiation. We own more than 80 issued patentsand pending patent applications in more than 25 countries, of which more than 55 are relatedto our HEELYS-wheeled footwear. We also have more than 75 registered trademarks andpending trademark applications in more than 30 countries. We believe that our experienceintroducing HEELYS-wheeled footwear to the market and our growing brand awareness willallow us to successfully develop and introduce additional products incorporating innovativedesigns and technologies that appeal to our target consumers. In-Depth Understanding of Our Target Market.We employ a grass-roots marketing model that enables us to regularly interact with andmaintain an in-depth understanding of our target market. In 2006, our event marketingmanagers, or “EMMs,” coordinated more than 3,000 in-store clinics and demonstrations,allowing us to communicate our brand message in an interactive, fun environment. Inaddition, our EMMs use online marketing techniques such as hosting message boards andcontributing to skate-oriented chat rooms. We also sponsor “team riders” to showcaseHEELYS-wheeled footwear in high-traffic, public areas. Through these multifacetedinteractions with our target consumers, we continually refine our understanding of theirevolving preferences. We intend to use this insight to develop new HEELYS-wheeledfootwear models, strengthen and extend our HEELYS brand and offer additional productcategories. Page | 4
  5. 5. F.Y.MMS 2012 Compelling Value Proposition for Retail Customers.We believe that our differentiated product offering and brand name represent a compellingvalue proposition for our retail customers. Our products have historically enabled our retailcustomers to achieve high sales volumes at or near our suggested retail prices, rapidinventory turns and attractive margins. These results have allowed us to develop strongrelationships and expand our product offerings with our retail customers, and add new retailcustomers. Flexible and Efficient Sourcing Model. By outsourcing manufacturing, we eliminate the need to purchase raw materials and limit the amounts we are required to spend on working capital, capital expenditures and overhead. This enables us to focus our resources on developing new products and brand- enhancing activities. We do not have any long-term manufacturing contracts, choosing instead to retain the flexibility to change our manufacturing sources if necessary. We have developed systems and procedures that enable us to actively monitor product quality, control product costs and facilitate timely product delivery. Senior Management Team with Deep Industry Experience.Our senior management team, which has overseen our company since its inception, has beeninstrumental in developing our HEELYS brand, establishing strong relationships with retailcustomers and international distributors and directing our growth. Our Chief ExecutiveOfficer has approximately 30 years of experience in the branded footwear and action sportsindustries and has held senior level positions at the Rollerblade division of Benetton GroupS.p.A. and L.A. Gear. Our Senior Vice President—Global Sales has more than 25 years ofsales and marketing experience in the athletic apparel and footwear industries and has heldexecutive level and sales positions at L.A. Gear, Kaepa, Nike, Stride-Rite and WilsonSporting Goods. Page | 5
  6. 6. F.Y.MMS 2012 Heely’s Marketing StrategyOur marketing strategy is to position our products and the HEELYS brand to represent alifestyle that includes excitement, individuality and the unique culture of action sports. Topromote awareness of our HEELYS brand, we utilize a multi-faceted strategy that includesevent marketing activities, television advertising, point-of-purchase, or “POP,” displays andproduct placement and public relations opportunities. While we fund the cost of theseactivities domestically, our independent distributors are solely responsible for these costs intheir markets.  Event Marketing Activities We employ a team of six EMMs that enables us to reach consumers at the grass-roots level and help drive foot traffic to our retail customers’ locations. EMMs increase consumer awareness of our products by hosting in-store product clinics and demonstrations, teaching store personnel how to use our products, employing “guerrilla” marketing methods such as arranging for our sponsored “team riders” to skate in high traffic public areas and using online marketing techniques such as hosting message boards and contributing to skate-oriented chat rooms. EMMs educate retail sales personnel on techniques to maximize sell-through of our products and to promote product awareness and safety.  Television Advertising Television advertisements are an important and highly effective tool for increasing awareness of our brand and products among our target consumers because these advertisements allow us to show consumers HEELYS-wheeled footwear in action. Advertisements air in selected regions of the United States during our primary selling seasons on cable channels such as ABC’s Family Channel, Nickelodeon and The Cartoon Network. As part of our regional television advertising strategy, we feature the name of a local retail customer at the end of our television advertisements. This tactic is intended to drive consumers to specific retail customers and allows us to evaluate the effectiveness of our advertising. Page | 6
  7. 7. F.Y.MMS 2012 Point-of-Purchase DisplaysCertain of our retail customers have committed valuable floor space to POP displays weprovide to enhance the presentation of our products. Through the use of these POPdisplays, we are able to present the HEELYS brand message to consumers in a consistentmanner and increase our shelf space in our retail customers’ locations. EMMs ensure thatour merchandise is effectively featured using POP displays. Page | 7
  8. 8. F.Y.MMS 2012Conclusion Page | 8

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