Leo columbia univ jan 2014
 

Leo columbia univ jan 2014

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    Leo columbia univ jan 2014 Leo columbia univ jan 2014 Presentation Transcript

    • Lean LaunchPad Team #5 The new pantyhose. With you for the long run. The first branded, non-run pantyhose brand on the market aiming to make things simpler for women. Alanna Lopes Souza | Amy Kwan | August du Pont MBA 2015 MBA 2015 Day 5 Customer Interviews: 40 Total Running: 103 Surveys: 66 MBA 2015
    • Business Model Canvas Key Partners • Pantyhose manufacturers • Shipping companies • Internet search engines Value Propositions • Control of production, manufacturing Direct-to-Consumer • Manage website, online orders, and distribution • Wholesale channels • Key Activities • Feet will not slip in heels • Marketing and promotion • Machine washable Product and packaging design • Easy-to-store packaging • Lawyers (patents) Branding strategy Easy-to-wash laundry bag • Pantyhose will last much longer and save consumers money in the long-term • • • Customer Relationships • • Physical: Web infrastructure, retail outlets • Intellectual: Patents and brand copyrights • Targeting busy, female business professionals • Age range 20-30s • Values quality over price (willing to pay a premium) but currently buys pantyhose at the drugstore for convenience Wholesale Channels Channels • Home shopping networks Established retail outlets • Drug stores Direct marketing • Department stores • Social media • Financial: Seed capital Direct-to-consumer • Drive traffic to retail channels • • Human Resources: Marketing and operations, development partner • • Grow: Word of mouth, increased color/design variety, subscription rewards Wholesale Channels • Direct-to-Consumer Keep: Guarantee, product quality Key Resources • Get: Free products at professional conferences, free branded accessories (storage case and washing machine bag), coverage from fashion blogs, Search Engine Optimization Customer Segments 1-year guarantee that pantyhose will not run Cost Structure Revenue Streams • Fixed: Product & packaging development, patent application, patent lawyer’s fees, infrastructure (website), accounting system • Direct-to-Consumer revenues • Wholesale to retailer revenues • Variable: Materials, manufacturing, packaging, distribution, marketing, operations • Subscription revenues
    • Business Model Canvas Key Partners • Pantyhose manufacturers • Shipping companies • Lawyers (patents) • Partner with quality manufacturer • Control of production, manufacturin g Value Propositions Product development Internet search engines • • Wholesale channels • Key Activities Direct-to-Consumer • Customer Relationships • Pantyhose will last much longer and save consumers money in the long-term • Feet will not slip in heels • Manage website, online orders, and distribution • Machine washable • Branding strategy • • Targeting busy, female business professionals • • Employed females in the age range of 20-30s 25-55 • Values quality over price (willing to pay a premium) but currently buys pantyhose at the drugstore for convenience Grow: Word of mouth, increased color/design variety, subscription rewards Marketing / promotion • Direct-to-Consumer Keep: Guarantee, product quality Easy-to-wash laundry bag • Get: Professional conferences, trade shows, free branded accessories, fashion blogs, SEO, magazines • Easy-to-store packaging • Customer Segments Packaging Key Resources • Physical: Web infrastructure, retail outlets • Intellectual: Patents and brand copyrights • Human Resources: Marketing and operations, development partner • Channels Wholesale Channels • Wholesale Channels • Direct-to-consumer • Home shopping networks • Established retail outlets • Drug stores • Direct marketing • • Social media Mass retailers (Target, WalMart, Costco) • Drive traffic to retail channels 1-year guarantee that pantyhose will not run • Department stores Financial: Seed $ Cost Structure Revenue Streams • Fixed: Product & packaging development, patent application, patent lawyer’s fees, infrastructure (website), accounting system • Target price $20 • Direct-to-Consumer revenues • Variable: Materials, manufacturing, packaging, distribution, marketing, operations • Subscription revenues • Wholesale to retailer revenues
    • Business Model Canvas Key Partners • Pantyhose manufacturers • Shipping companies • • • Partner with quality manufacturer • Value Propositions Product development Manage website, online orders, and distribution Wholesale channels • Key Activities Lawyers (patents) Direct-to-Consumer • Branding strategy • Marketing / promotion • Packaging – patent • Feet will not slip in heels • Machine washable • Physical: Web infrastructure, retail outlets • Human Resources: Marketing and operations, development partner • Direct-to-Consumer • Values quality over price (willing to pay a premium) • Sometimes reads blogs • Grow: Word of mouth, increased color/design variety, subscription rewards Employed females in the age range of 25-55 25-40 • • Tech savvy Channels Wholesale Channels Intellectual: Patents and brand copyrights • Get: Professional conferences, trade shows, free branded accessories, fashion blogs, SEO, magazines Keep: Guarantee, product quality Easy-to-wash laundry bag • Customer Segments • Easy-to-store packaging Key Resources • • Pantyhose will last much longer and save consumers money in the long-term • • Customer Relationships Wholesale Channels • Direct-to-consumer • Home shopping networks • Established retail outlets • • Direct marketing Mass retailers (Target, WalMart, Costco) • Social media • • Drive traffic to retail channels 1-year guarantee that pantyhose will not run Department stores .com department store sites Financial: Seed $ Cost Structure Revenue Streams • Fixed: Product & packaging development, patent application, patent lawyer’s fees, infrastructure (website), accounting system • Target price $20 $15 • Direct-to-Consumer revenues • Variable: Materials, manufacturing, packaging, distribution, marketing, operations • Subscription revenues • Wholesale to retailer revenues
    • Business Model Canvas Key Partners • Pantyhose manufacturers Key Activities • Product development • Partner with quality manufacturer • Value Propositions Direct-to-Consumer Feet will not slip in heels Branding strategy (leos) • Machine washable Marketing / promotion • Easy-to-store packaging • • • • Shipping companies Manage website, online orders, and distribution Packaging – patent • Packaging doubles as easy-to-wash laundry bag Wholesale channels • • Pantyhose will last longer and save consumers money in the long-term • • • Customer Relationships Lawyers (patents) Key Resources • Physical: Web infrastructure, retail outlets • Human Resources: Marketing and operations, development partner • • Get: conferences, trade shows, free branded accessories, fashion blogs, SEO, magazines, g raduate schools • Keep: Guarantee, product quality, easy & painless shipping & return (free) Employed females in the age range of 25-40 (employed professionals and graduate students) • Values quality over price (willing to pay a small premium) • Sometimes reads blogs • Tech savvy Grow: Word of mouth, more color/design variety, add a kids/toddlers line (for dance & normal wear) • Direct-to-Consumer Channels Wholesale Channels Intellectual: Patents and brand copyrights • • Customer Segments Wholesale Channels • Direct-to-consumer • Home shopping networks • Established retailers • • Direct marketing Mass retailers (Target, WalMart, Costco) • Social media and blogs • • Drive traffic to retail channels 1-year Guaranteed that pantyhose will not run satisfaction .com department store sites Financial: Seed $ Cost Structure • Fixed: Product & packaging development, patent application, patent lawyer’s fees, infrastructure (website), accounting system • Variable: Materials, manufacturing, packaging, distribution, marketing, operations Revenue Streams • Target price $15 • Direct-to-Consumer revenues • Wholesale to retailer revenues
    • Business Model Canvas Key Partners • Pantyhose manufacturers • Shipping companies • • • Partner with quality manufacturer • Manage website, online orders, and distribution Value Propositions Product development Wholesale channels • Key Activities Lawyers (patents) • • • Pantyhose will last longer and save consumers money in the long-term • Eliminate the main pain points women have with pantyhose Branding strategy (leos) • Direct-to-Consumer Customer Relationships • Marketing / promotion • Key Resources • Physical: Web infrastructure, retail outlets • Wholesale Channels Intellectual: Patents Trademarks and brand copyrights • Drive traffic to retail channels Human Resources: Marketing and operations, development partner • • X Customer Segments Get: conferences, trade shows, free branded accessories, fashion blogs, SEO, magazines, g raduate schools • Keep: Guarantee, product quality, shipping & return (free), loyalty program Females in the age range of 25-40 (employed professionals and graduate students) • Values quality over price (willing to pay a small premium) • Sometimes reads blogs • Tech savvy Grow: Word of mouth, more color/design variety, add a kids/toddlers line (for dance & normal wear), plus size line Channels • Direct-to-consumer • Direct marketing • Social media and blogs • Wholesale Channels Direct sales force • Direct-to-Consumer Guaranteed • Mass retailers (Target, Wal-Mart) • .com department store sites • Home shopping networks X Financial: Seed $ Cost Structure Revenue Streams • Fixed: Product & packaging development, patent application, patent lawyer’s fees, infrastructure (website), accounting system • Price $15 $20, 200% markup • Wholesale to retailer revenues • ~$5 cost = $15 profit • Price of $11.75 • Variable: Materials, manufacturing, packaging, distribution, marketing, operations • ~75% gross margin • ~$5 cost = $6.75 per pair • Direct-to-Consumer revenues • ~57% gross margin X
    • Key Learnings What? How did we find out? Implications? 1 Messaging is key, “nice to have” features aren’t. 2 Women need to know HOW and WHY. Customers and CPG experts Save the retail channels for later. Distributors and retail outlet experts / entrepreneurs 3 4 Build on an emotional experience. • • • Focus on core value prop: non-run Non-slip feature removed Storage box not valued • Customers and CPG experts Educate through channels: brand values, easy care Trademark slogan and quality standard - LeoKnit™ • Focus on direct web sales first .com retailers and mass retailers are part of growth • Customers and CPG experts • • Add personalized messaging and loyalty program Target Working women and students (ages 25-40) •
    • Key Learnings – Customer Archetypes Allison Grad Student, 27        Sonia Lawyer, 32 Established or career-minded women Aged 25-40 Shops online, tech savvy Doesn’t really watch TV but uses social media Reads blogs, in step with the times Goes to coffee shops regularly Goes to occasional evening events
    • Key Learnings – Buying Behavior Current s Future s s s s • Purchasing only as needed (unplanned) Planned purchase • Look for a low price tag because they don’t last Value purchase, trust • Frustration leads to cycle of last-minute buying before interviews or parties Strong experience leads to long-term relationship Creating BRAND EQUITY is key.
    • Final Business Model Canvas Key Partners Key Activities • Pantyhose manufacturers • Branding strategy (leos) • Shipping companies • Marketing / promotion • Product development • Partner with quality manufacturer • Manage website, online orders, and distribution Value Propositions Customer Relationships • Eliminate the main pain • Get: Conferences, trade points women have with shows, blogs, SEO, ma pantyhose gazines, graduate • Pantyhose will last schools longer and save • Keep: consumers money in Guarantee, shipping & the long-term return (free), loyalty program • Grow: Word of mouth, color/design variety, kids/toddlers line (dance & regular), plus size line Channels Key Resources • Physical: Web • Values quality over price (willing to pay a small premium) • Sometimes reads blogs • Tech savvy • Direct sales force • HR: Marketing and operations, developmen t partner • Females in the age range of 25-40 (employed professionals and graduate students) • Direct-to-consumer • Intellectual: Trademarks and brand copyrights Customer Segments • Social media and blogs • Direct marketing • Guaranteed • Financial: Seed $ Cost Structure • Fixed: Product & packaging development, infrastructure (website), accounting system • Variable: Materials, manufacturing, packaging, distribution, marketing, opera tions Revenue Streams • Price $20 • ~$5 cost = $15 profit • ~75% gross margin • Direct-to-Consumer revenues
    • The Product Build trust. • Communicate LeoKnit™ quality which will last longer and will not run LeoKnit™ Provide an experience. • • • Educate. • Packaging Personalization New name “leos” instead of pantyhose • Machine washable bag and instructions Experience with leoa is simple With you for the long run.© l e o a
    • The Website Key features  Simple design  Educate consumers about our quality and care instructions  Blog component and customer reviews to create sense of community http://lopessouzaalanna.wix.com/leoa
    • Distribution & Pricing Direct-to-Consumer Campus Sales Force  Online mail orders  Free shipping and returns  Take orders directly from students  On-site sales force during recruiting season Pricing Sale Price Manufacturing Cost $20.00 $5.00 Profit per Pair $15.00 Gross Margin 75%
    • Get, Keep, Grow Strategy GET Social Media Internet / Press  Blogs  SEO  Magazines Viral Videos what happens when your tights run (leoa) leoa In Person  Graduate school direct sales force  Trade shows  Professional conferences
    • Get, Keep, Grow Strategy KEEP Experiential Purchase Loyalty Program Personalized. Memorable. Educational. MON TUES WED THURS FRI 1st Pair 2nd Pair 3rd Pair 4th Pair 5th Pair FREE!  Pair for every work day Refer 2 friends, get 1 free pair!  Satisfaction guaranteed  Free shipping  Simple returns Referral Referral
    • Get, Keep, Grow Strategy GROW Channels Product  New colors Mass Retail  Designs  Feature variety (control top, non-control top, sandlefoot, reinforc ed toe, etc) dotcom Economics Sale Price Price to Retailer Manufacturing Cost Markup Profit per Pair Gross Margin $20.00 $11.75 $5.00 70% $6.75 57% People  Toddlers line with nonslip grips  Kids line (dancers)  Plus size line  Targeted ads for people who don’t wear pantyhose at all because they hate what’s out there
    • Next Steps… Immediate Medium Stage 1 • • • • • Talk to marketing industry experts Develop marketing strategy Develop website Partner with manufacturer Research quality assurance methods / risks Long Term Stage 3 Stage 2 • • YouTube ad campaign Test non-slip grips on the market, patent if successful • • Seek out retail partners (Target, Walmart) after initial sales Look into channels, product, and people expansion
    • Appendix
    • Market Size $1.5B Total Addressable Market $471M Served Available Market $334M Target Market Sources: IBISWorld; “Hosiery Mills in the US, November 2013” U.S. Census Bureau, Current Population Survey, Annual Social and Economic Supplement, 2011. • 51.3M employed females ages 18-54 • Averaging $30 spent on pantyhose per year • IBISWorld “Hosiery Mills in the US, November 2013” • Discount stores & mass merchandisers • Department stores • Online
    • Competition leoa Fast Fashion Stores Premium Stores Online Brands Department Store Brands Drug Store Brands Brand Awareness Affordability Quality Storage / Washing       Non-Slip Feature    /  
    • Competition What They’re Missing Who They Are Retail / Online Stores Affordability Convenience • • High price points Reliability • Can’t always find basic print / colors Stores are not designed for shoppers on the go Drug Stores Quality • Efficiency Products are typically • cheap and likely won’t last longer than their initial use Despite the low price tag, multiple purchases add up Department Stores Simplicity Convenience • • • Product offering can be overwhelming Wide range in both quality and price • Concentrated in shopping districts Few are located in financial districts