2. 1
Table of Contents
Executive Summary 2
Business Plan 3
Marketing Plan 4
Financial Projections 7
Resumes & Appendix 12
3. 2
Executive Summary
Introduction
Scentsibility is a student-run business that sells menthol-scented wax melts and warmers. The
wax melts can be melted on a warmer and will fill the air with a sinus-clearing menthol aroma.
These melts are designed to be safe for children and infants under the age of two.
Loan Request $600
Business Background
The idea for Scentsibility came from our chief executive officer, Jared McKinney, when his one
year old niece was sick and very congested. Due to her age she could not use topical menthol
ointments like Vick’s VapoRub. He and his mother then came up with the idea to administer the
same treatment through warming a wax melt. Scentsibility was conceived with the mantra:
warm and soothing cold symptom relief.
Structure
Jared McKinney (CEO/COO), Abby Carpenter (CFO), and Michaela Raffin (CMO/CIO) will
collectively run the business from January-May 2014 within the Butler Univerisity Real Business
Experience class. The wax melts will be sold to mothers of children 12 years and younger
through direct sales and the Scentsibility website.
Market Opportunity
Traditional topical menthol rubs like Vick’s VapoRub can cause skin
irritation and serious health risks if ingested. Scentsibility offers a unique
product that can solve this problem. The Indianapolis area is home to
numerous small gift shops and chain and local pharmacies. Additionally,
contacts within Butler’s College of Business and College of Pharmacy and
Health Sciences will be a great asset to our business.
Target Market
Our target market will be middle and upper class parents with children
between the ages of 0-12 and those that are looking for a safer and less
messy way of treating cold and flu symptoms.
Industry Overview
The pharmaceutical manufacturing industry is a large and growing
industry dominated by name brand cold relief products and generates an
annual revenue of $200 billion (Pharmaceutical manufacturing, 2013).
Scentsibility plans to enter the cough and cold preparations segment which
makes up 21.4% of the market (MarketLine, 2013). Scentsibility will also be entering the gift
and novelty item industry which generates $18 billion in annual revenue (First Research, 2013).
Projected Financial
Highlights
Operating Costs
$133
Sales
$3,510
Profit
$1,048
Breakeven Units
30
Breakeven Sales
$340.80
See spreadsheet in
appendix
4. 3
Business Plan
Business Structure and Opportunity
Business Opportunities
Scentsibility addresses the safety and health issues of menthol-based topical respiratory
treatments. According to Dr. Bruce Rubin, vice chairman of the department of pediatrics at
Wake Forest University School of Medicine, recommends that parents use these products only
on patients 2 years or older (Aleccia, 2009). Additionally, Nicole Van Hoey, a pharmacist and
medical writer/editor, says that Vick’s VapoRub “may cause local irritation directly on the skin
and surrounding areas. Camphor and menthol can irritate open skin...” (Van Hoey, 2011).
Scentsibility will address both of these safety issues and provide an alternative for consumers
who are affected by these issues.
The Indianapolis location contains over 100 small and large pharmacies, and 30 health-focused
retail stores which is where we plan to sell our product eventually. Also, Scentsibility intends to
operate during cold and flu season, which is when our product will be purchased and used the
most.
Business Threats
Scentsibility’s biggest threat is that it is a completely new product that some consumers may be
unfamiliar with. We plan to combat this threat with a thorough marketing strategy in which we
fully convey to consumers the benefits and uses of our product. Consumers are also unfamiliar
with the health and safety issues of the products they currently use for respiratory ailments.
Because of this, we will implement a marketing plan that educates consumers on our product’s
benefits and on the negative aspects of competitive products. Consumers who are loyal to other
respiratory health solution brads are also threats to the success of our business. By uniquely
branding the Scentsibility wax melts, we can guarantee customers a quality product and create a
recognition that allows customers to become loyal to our product.
Qualifications
Jared McKinney, CEO and COO: Jared McKinney is a sophomore at Butler University
majoring in Marketing and minoring in Strategic Communications. He is currently a member of
the Phi Eta Sigma Honor Society, Co-President of Butler’s Voices of Deliverance Gospel Choir,
and serves on the Diversity Center Council.
Abigail Carpenter, CFO: Abigail Carpenter is a sophomore at Butler University double
majoring in Finance and Spanish. She is an active member of the Alpha Kappa Psi Business
Fraternity and Kappa Alpha Theta social fraternity. Before Scentsbility, she interned at
WealthCare Financial Group, LLC, where she worked on tax returns and various office tasks.
5. 4
Michaela Raffin, CMO and CIO: Michaela Raffin is a sophomore at Butler University
majoring in Marketing and double minoring in Strategic Communications and Art. She is an
active member of Kappa Alpha Theta social fraternity. She also serves as president of Bulldogs
for Life. Before Scentsibility, Michaela served as marketing executive at Melaleuca Inc. The
Wellness Company where she was the youngest leadership director on the local team. She also
served as an events intern at Lighthouse Events and Marketing, LLC where she recruited and
managed volunteers and worked to increase attendance and promote upcoming events.
*See attached resumes for more qualifications.
Board of Advisors
● Paul Madden: former entrepreneur and successful businessman
● Zachary Finn: clinical professor and director of Davey Risk Management Program at
Butler University, former risk manager for J.M. Smucker’s Company
● Matthew Anderson: Indiana University business graduate, current entrepreneur with
Adproval
● Ed Friel, Executive in Residence at Butler University and former Marketing Director for
Cummins Crosspoint LLC
Marketing Plan
Market Research
According to market research conducted in Indianapolis, parents of children ages 2 and under are
receptive to the idea of a menthol-scented wax melt. One parent surveyed, who admitted to not
using wax melts, said, “If I saw the melts advertised, I would be more inclined to try them”
(Kelsey, 2013). None of the parents surveyed knew about the age restriction on Vick’s
VapoRub, nor of the health issues associated with it, except for one. Traditionally, parents fixed
this problem by using a vaporizer in their young child’s bedroom. However, another parent
surveyed claimed that “vaporizers are a hassle” (Duncan, 2013) and was very open to the idea of
a less messy solution.
Target Market
Demographic Information: Parents with children between the ages of 0 and 12 which is about
11% of Marion County’s 900,000 people.
Geographic Information: Indianapolis, Indiana, area
Psychographic Information: Desires a safe and healthy way of treating cold and flu symptoms
without the use of menthol topical ointments, or a less messy and hassle-free treatment
alternative.
6. 5
Competition
Direct Competitors: Vick’s VapoRub, the menthol topical cold symptom treatment. MV
Products, a company that sells menthol scented wax melts and holds the patent for a menthol
candle.
Indirect Competitors: All other wax melts and warmers on the market. Other cold symptom relief
products. Other gift and home decor items.
Competitive Advantage
Scentsibility has several competitive advantages:
The product is safe for use with children and can be used at night.
The pricing of Scentsbility’s menthol wax melts ($2.50/package) competes well with
other wax melt prices ($5.00 & up/ package).
Access to list of bloggers in the Indianapolis area who can help with promotion
Access to Butler University pharmaceutical contacts in the indianapolis area who can
help with product placement.
Product
Scentsibility will sell menthol-scented wax melts made with a high quality wax with
mentholyptus oil. We will be purchasing our wax melts from Aromas from Heaven, a supplier
located in Indianapolis. Our wax melts will come in a pack of two melts. On the front will be a
7. 6
small label with our name and full name logo (Appendix 1). Underneath each logo will be
“Menthol Scented Wax Melts” along with our website, contact information, and the Facebook
and Twitter logo for customers to know what social media sites we are on.
We will also sell two types of candle warmers. One will be an illuminated warmer, heated by a
light bulb on the inside. The other will be a small heated warming dish. Each type of candle
warmer will come in various designs and colors. We will purchase our warmers from a
wholesaler, Candle Warmers Etc.
Promotions & Sales
Our primary promotion strategy will be direct selling to parent groups. Our presentations will
educate consumers on our product and generate product feedback. We plan to present to 16
different parent groups throughout the semester and generate the 35% of our sales here. We will
also create promotional literature to hand out at these presentations so customers have something
to hand out to friends and a visual of who we are.
Scentsibility wax melts will be available through www.scentsibilitywaxmelts.bigcartel.com. Our
ecommerce presence is where we expect to generate 60% of our sales. This will allow customers
to easily purchase and repurchase inventory. In addition to online retail, Scentsibility will sell
directly to mom via parent group presentations.
In order to generate sales through our website, we have devised a mom blogger promotion
strategy. We will solicit mom bloggers to try our product by sending them a free sample which
they will use and then blog about in a review format. They will then be able to share our website
with their followers which will increase internet sales weekly. This will also generate positive
feedback and literature that can be shared, reposted, and tweeted about for weeks and months to
come. Our Facebook presence can be found at www.facebook.com/ScentsibilityWaxMelts and
our Twitter handle is @Menthol_WaxMelts.
Scentsibility wax melts and warmers will also be available at Details gift shop on Keystone
Avenue in Indianapolis, In. Five percent of sales are expected to be generated at this retail
8. 7
outlet. We hope to use this initial retail outlet to provide a solid foundation for other endeavors
in the brick-and-mortar retail placement.
Week Wax Melts Candle Warmers Revenue
1/13 8 5 $124
1/20 8 6 $143
1/27 20 16 $376
2/3 14 10 $241
2/10 10 7 $169
2/17 8 5 $124
2/25 20 16 $376
3/3 14 10 $241
3/10 10 7 $169
3/17 8 4 $106
3/25 20 16 $376
4/7 14 10 $241
4/14 10 7 $169
4/21 5 4 $94
4/28 5 4 $94
5/5 5 4 $94
Totals 179 131 $3,138
Future Opportunities
The ultimate goal of Scentsibility is to attain shelf space in the cold and flu sections of major
pharmacies like Walgreens and CVS Pharmacy. Other large retailers such as Wal-Mart are
another option. This will come with time and is a future possibility that our business is currently
looking into.
After the wax melts are completely developed as a successful medicinal product, Scentsibility
will sell alternative options. For instance, instead of a menthol-based melt, the company can
formulate a melt with chamomile or melatonin as a sleep aid. Alternatives like these products
will help to diversify Scentsibility’s brand and allow consumers to use Scentsibility wax melts
for all health needs. However, product diversity is difficult because the process can either help
or hurt a business. In order to properly diversify Scentsibility products, the company must be
sure the menthol-based products have proven successful and that loyal customers will buy a new
variety of wax melt products.
Financial Projections
Assumptions
Scentsibility plans to attend one parent meeting presentation per week during this time period.
At each meeting, there will be 10-15 audience members. We plan to sell wax melt units to 25%
9. 8
of each audience, which is about 4 units per meeting. We also plan to sell warmers to at least
10% of each audience, which is about 2 units per meeting.
For the first three months of the semester, we will send our products to 3 mom bloggers. The
company will also create a promotion for each mom blogger to advertise on her blog. Per mom
blogger, Scentsibility will generate sales of 10 wax melt units and 8 warmer units. If the mom
blogger approach reaches sales projections, we will utilize more mom bloggers for future
advertising.
Approximately 60% of our sales will be through our website using PayPal. Twenty-five percent
will be in person credit card charges using Square. The remaining 15% of our sales will be cash
or check. For this time period, we will have a beginning cash balance of $0, due to profit and
loan repayment after the Proof of Concept period.
Sales and Variable Expenses
During this time frame we will sell 179
units of wax melts at $2.00 each and 131
candle warmers at $16.99 each. Our wax
melt supplier, Aromas from Heaven will
charge us $0.70 per unit to produce and
package the wax melts. We purchased our
candle warmers wholesale from Candle
Warmers Etc. at $8.00 each. Including
shipping, our cost for the warmers is
$10.40 each. We estimate 60% of our sales will come from online orders. We will be using
PayPal for our credit sales which charges 2.9% plus $0.30 per transaction. This will cost us
approximately $62 total. We estimate 25% of our sales will be in person credit card charges.
We will use Square to process these charges which will cost 2.75% per transaction, $14 total.
The remaining 15% of our sales will be in cash or check. In total, variable expenses equal
$2,329. Therefore, total contribution margin from selling the melts and the warmers is $1,181.38
as seen on the table on the right.
10. 9
This graph shows the amount of sales made each week during next semester. Total revenue after
this semester of selling will be approximately $3,510 worth of both products. The three spikes in
sales are the weeks we sent our product to a new mom blogger. We expect that when the mom
bloggers post about our product, our sales will increase by 8 units. Towards the end of the period
our sales decline because flu season will be ending.
After taking into consideration the variable expenses and total revenue, Scentsibility’s gross
margin will be approximately $1,181.
Inventory
Inventory will be purchased at the beginning of the period. We will buy 179 units of wax melts
in order to complete projected sales for the period. At the beginning of this period we will also
purchase $280 of warmers, which brings our preliminary inventory purchase to a total of $405.
We will then purchase more warmers at the beginning of week 2/3. At this point we will
purchase $374 of additional warmer unit inventory. We will again purchase warmer inventory on
2/25, which will cost $629. Finally, we will have to purchase inventory again on 3/25 to finish
out the selling period. We will purchase $765 of warmer inventory. All wax melt inventory
purchased at the beginning of the time period will be sufficient for the selling period. If we sell
more than projected, inventory adjustments will be made further. Remaining cash will be paid to
shareholders at the end of the selling period. Inventory adjustments are highlighted within
financial spreadsheet.
11. 10
Fixed Expenses
Fixed expenses will come in the form
of advertising and promotional
expenses. Scentsibility will purchase 2
units of wax melts at the beginning of
the semester, in order to use for the 16
demonstrations during this time period
which will cost us $1.40. Additionally,
we will send a unit of wax melts and a
warmer to 3 mom bloggers for
advertising; one wax melt and warmer
will be purchased at the beginning of each month, then shipped to a mom blogger. This will cost
us $38.60 total. In total, this will come to $33.30 for these 5 months. For every demonstration,
we will print 20 brochures to hand out. At $0.25 per brochure, this will cost $5.00 for each
presentation, or $80.00 for the 16 presentations during the semester. All of these fixed selling
costs will come to a total of $114.70 for the time given. Including variable and fixed cost, total
expenses will be $1746. Therefore, Scentsibility’s net income will be $1,437.
BreakevenAnalysis
Scentsibility’s sales cycle will be
based on online retail from our Big
Cartel website, as well as personal
orders from parents after each PTO
presentation. Cash will be generated
through the in-person product orders.
The company will have a sufficient
amount of cash on hand at the end of
each week. Scentsibility’s
breakeven sales are 30 units or $340,
which the company will reach in the third week of operation. We predict that we will make $200
profit within the fourth week and $300 profit within the fifth. The graph shows the total revenue
and indicates when we will break-even.
12. 11
Scentsibility will also sell to various members of the Butler Community and generate more sales
accounted for in financial projections. In the future, we expect to get into at least one retail
outlet in the Indianapolis area. Additionally, Scentsibility will have sufficient funds to cover its
expenses and repay its loan. Starting during the week of January 20, Scentsibility will pay back
the loan in $150 increments at the end of every fourth week, to repay the loan in full.
*For more detailed financial information, see attached financial spreadsheet.
Conclusion
In conclusion, Scentsibility is a small start-up business that sells menthol scented wax melts and
various styles of candle warmers. We have committed ourselves to providing warm and soothing
cold symptom relief. We are asking for a loan of $600 in order to cover our initial operating
expenses. Scentsibility provides better way to treat cold and flu symptoms. By eliminating the
skin contact of the oils, we take away the risks of possible ingestions, skin irritation, and the
messiness of the ointment. We will do well on the market with our aforementioned marketing
and operations strategy. Scentsibility is a great investing opportunity because of the vast amount
of potential it holds. Our team is dedicated to this business and determined to see it succeed.
13. 12
Jared T. McKinney
Present Permanent
630 W Hampton Drive 792 North Walnut Hills
Indianapolis, IN 46208 Crawfordsville, IN 47933
Cell Phone (765) 267-0055
jtmckinn@butler.edu
SUMMARY OF QUALIFICATION:
Effective leadershipskills Creative critical thinker
Well organizedandeffectivetime
manager
Experience withWord,Excel and
MicrosoftPowerPoint
Detail oriented Energeticandoutgoing
EDUCATION
Butler Universityin Indianapolis
College of Business, Bachelor of Science, Marketing Major – Anticipated Graduation
May, 2016
Phi Eta Sigma Honor Society, Co-President of Voices of Deliverance Gospel Choir
GPA 3.68
North Montgomery High School in Crawfordsville
Honors Diploma, GPA 4.0, Valedictorian, National Honor Society, Director of Student
Publication Advertising Sales
EMPLOYMENT
March 2013 to Aug. 2013 – Substitute Teacher K-12
o NorthMontgomerySchool Corporation
Follow preset lesson plan
Interactwithstudent,faculty,andstaff
May 2013 to Aug. 2013 – Line Operator
o AcuityBrandsLighting
Assemble LED light fixtures per specifications
Complete inventory audit
June 2012 to Aug. 2012 – Sales Associate
o Big Lots
Stock and organize inventory
Prepare store for inventory audit
Assistcustomers
April 2012 to July 2012 – Package Handler
o UnitedParcel Service
Load and organize shipment cargo
14. 13
Michaela Raffin
mtraffin2012@gmail.com, mraffin@butler.edu
(219) 395-6346
825 W. Hampton Drive, Indianapolis IN 46208
EDUCATION
Marketing Major, Strategic Communications Minor, Art Minor May 2016
Butler University; Indianapolis,IN
Current GPA: 3.80/4.00
Courses: Freshman & Real Business Experience, Aesthetics and Design (Art/Marketing Focus),
Spanish,Accounting , Economics, and Dreamweaver, Excel, and Access Classes
Honors: Dean’s List, Butler University Scholars for the Advancement of Business Leadership
MARKETING EXPERIENCE
Events Intern June 2012-August 2012,May 2013-Present
Lighthouse Events and Marketing, LLC; Chesterton, IN
Recruited and managed 30 volunteers for City on the Lake Triathlon held in Michigan City, IN
Distributed marketingcommunications to increaseattendance at various events
Networked with event directors topromote upcoming events
Chief Marketing and Information Officer September 2013-Present
Scentsibility Wax Melts-Butler University Real Business Experience Student Run Business; Indianapolis, IN
Created professional presentation slides that consistently earn top grades
Decided overall color and design of wax melt product
Secured 3 parent group product presentation opportunities through networking
Marketing Executive July 2012-Present
Melaleuca Inc. The Wellness Company; Chesterton, IN
Enrolled 12 new customers
Maintained an 83% customer retention rate
Youngest Leadership Director on local team
Sales Associate June 2012-August 2012
BCBG Max Azria Outlet Store; Michigan City, IN
Achieved Lead Sales Associate in month of August by meeting customers’budget and style
needs
Outfitted customers and tailored looks specifically for their fashion needs
LEADERSHIP ROLES
Bulldogs for Life President May 2013-Present
Organized and executed 3 successful student meetings wheregoals were met
Raised awareness of group’s purpose and goals through strategic communications
Managed finances for various events
Future of Chesterton Program Participant September 2011-May 2012
Collaborated with a select team of fellow high school honors students
Researched and proposed various economic development and land development opportunities
for the Town of Chesterton,IN
ORGANIZATIONAL EXPERIENCE
Butler American Marketing Association - Member August 2012-May 2013
Kappa Alpha Theta Social Fraternity – Member March 2013- Present
17. 16
References
Duncan, Tina. (2013, September). Market Survey. Scentsibility RBE Team.
"InDepth Profile: Marion Indiana." STATS Indiana. Indiana Business Research Center, 2010.
Web. 08 Nov. 2013.
Kelsey, Anne. (2013, September). Market Survey. Scentsibility RBE Team.
MarketLine. (August 2013). OTC pharmaceuticals in the united states. Retrieved from
http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=aab66ce7-b0d2-46c0-88ca-
af2f449fc98f%40sessionmgr12&vid=15&hid=108
Pharmaceutical manufacturing. In (2013). First Research. LEARN. Retrieved from
http://mergent.firstresearch-learn.com/industry_full.aspx?pid=403
Van Hoey, N. (2011). Vick's vaporub warnings. Livestrong.com, Retrieved from
http://www.livestrong.com/article/112054-vicks-vapor-rub-warnings/
