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Sneakers 2013MemorandumExecutive SummaryNew Balance Is a one of the largest shoe manufacturing company in United States. Company’s brand iswell known around the world. High quality and wide varieties of shoes being manufactured to satisfy themarket demand. New Balance produce mostly athletic shoes and also used some of famous athleticfigures to endorse their product.Currently, the senior VP of product development, Monte Holiday, saw an opportunity in the 12-to 18-year-old male market segment, which most of the competitors had ignored. However, New Balance didnot have the resource to compete in this segment. However, New Balance saw an opportunity to target ayounger consumer if they could craft and effective marketing and advertising campaign around the rightathlete. A potential young athlete was spotted, a young promising phenomenon from Grenada, KiraniJames, a gold medal winner in the 400-meter dash in London. Since he is still young, he could still beimproved and made him an excellent athlete which will appeal to younger audience. Competition were fierce as competitor will come out with new products. The shoe market is still growingsteadily despite economic downturn. Michele Rodriquez was asked by the VP to provide analysis on twodifferent products, Sneakers 2013 and Persistence. Recommendation was also needed in order for theVP to choose which option is better suited to start the project. 1.Sneakers 2013 Table(in millions)Year 0Year 1Year 2Year 3Year 4Year 5Year 6Revenues$138.00 $184.00 $161.00 $276.00$207.00$103.50-Cannibalization$35.00 $15.00 Net Revenues$103.00 $169.00 $161.00 $276.00$207.00$103.50-Variable Costs