BetaOdour Business Plan_Edited

Beta Odour Presents, Pommair
Smell better, Feel better. (Naturally)
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Table of Contents
1.0 Executive Summary ......................................................................................................................5
2.0 Beta Odour Profile
2.1 Mission Statement …..................................................................................................................6
2.2 Beta Odour Goals and Objectives .............................................................................................6
2.3 Business Philosophy …..............................................................................................................4
2.4 Unique Competencies ...............................................................................................................5
2.5 Keys to Success …....................................................................................................................6
2.6 Future Products and Services ….............................................................................................15
3.0 Product Profile
3.1 Technical Design …....................................................................................................................8
3.2 Description of Materials …..........................................................................................................9
3.3 Scientific Analysis (Research and Development) ....................................................................11
3.4 Proof of Concept …..................................................................................................................14
3.5 Health and Safety.....................................................................................................................15
4.0 Market Description
4.1 Industry Analysis …..................................................................................................................21
4.1.1 Industry Size .............................................................................................................18
4.1.2 Industry Trends (includes seasonality) .....................................................................19
4.2 SWOT Analysis …...................................................................................................................16
4.2.1 Strengths …..............................................................................................................17
4.2.2 Weaknesses ............................................................................................................18
4.2.3 Opportunities …........................................................................................................19
4.2.4. Competitive Advantage ….......................................................................................20
4.2.4.1 Direct Competition ….................................................................................21
4.2.4.2 Indirect Competition ..................................................................................20
4.3 PEST …...................................................................................................................................22
4.3.1 Political ….................................................................................................................22
4.3.2 Economic …..............................................................................................................21
4.3.3 Social …....................................................................................................................18
4.3.4 Technological …........................................................................................................17
4.4 Target market …......................................................................................................................20
4.5 Future Market Scenario ….......................................................................................................21
5.0 Marketing Strategy
5.1 Objectives …............................................................................................................................19

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5.2 Product Position …..................................................................................................................20
5.3 Channels of Distribution …......................................................................................................24
5.4 Pricing ….................................................................................................................................23
5.5 Promotion …............................................................................................................................26
6.0 Operation strategy
6.1 Manufacturing Process …........................................................................................................24
6.2 Suppliers …..............................................................................................................................26
6.3 Quality Control ….....................................................................................................................28
6.4 Regulatory Issues …................................................................................................................29
6.5 Proposed Operations Location …............................................................................................28
7.0 Human Resources
7.1 Management Members …........................................................................................................22
7.2 Board of Directors …................................................................................................................24
8.0 Financial Strategy
8.1 Start-Up Investments and Expenses …..................................................................................26
8.2 Funding …...............................................................................................................................88
8.3 Break-Even Analysis …...........................................................................................................29
8.4 Financial Statement Analysis …..............................................................................................30
8.4.1 First Year Balance Sheet ….....................................................................................00
8.4.2 Three Year Balance Sheet …...................................................................................50
8.4.3 Annual Income Statements …..................................................................................88
8.4.4 Annual Cash Flow Statements ….............................................................................46
8.5 3 Year Profit Projection ….......................................................................................................56
8.6 Projected Market Percentage Analysis …...............................................................................66
9.0 Exit Strategy
10.0 Appendices
Appendix I: Finance
a) Income Statement-2014 …................................................................................54
b) Balance Sheet-2014 …......................................................................................88
c) Cash Flow Statement-2014 …...........................................................................44
d) Income Statement-2015 …................................................................................59
e) Balance Sheet-2015 …......................................................................................88
f) Cash Flow Statement-2015 …............................................................................74
g) Income Statement-2016 …................................................................................56
h) Balance Sheet-2016 …......................................................................................80
i) Cash Flow Statement-2016 …............................................................................90

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j) Production Cost Breakdown …..........................................................................22
Appendix II: Product Diagram …........................................................................................44
Appendix III: The Executive Team- Qualifications ….........................................................56
Appendix IV: Bibliography …..............................................................................................88
1.0 Executive Summary
Beta Odour strives to create innovative products that will encourage a diverse range of people to use
safe and efficient human-powered transportation. The products themselves are directed towards the
advocacy for use of human-powered transportation, especially to commuters who do not currently
use this mode of transportation due to their insecurities of body odour resulting from sweat. Targeting
their fears, Beta Odour has come up with a one of a kind solution: Pommair.
Pommair, a revolutionary health product, allows the consumer to use human-powered transportation
without the negative factor of body odour. Using esterification, Pommair changes the smell of the foul
odour concerned with sweat. The offensive aroma is produced by the Staphylococcus Epidermidis on
the body - specifically the underarms. The most unique aspect of Pommair is that the substance does
not interfere with the body’s homeostasis but instead alters the odour of the acid (the by-product of
the bacteria breaking down the sweat through cellular respiration). By metabolizing the proteins and
lipids, specifically the LACTOSE, the Staphylococcus Epidermidis releases 3-methyl butanoic acid,
also known as isovaleric acid, which emits a sour and fermented-like odour.
Dissimilar to any other deodorizing products, Pommair will be utilizing chemical reactions to solve the
problem it targets. Instead of masking the pungent body odour like deodorants or preventing
perspiration itself, this product will change the foul odour of sweat into a natural, pleasing aroma to
improve the inclination towards using human-powered transportation by removing the insecurity and
discomfort of unpleasant odour after perspiring. Many individuals discourage themselves from
participating in aerobic activity due to this very reason. There are also health benefits from using
Pommair instead of deodorants and antiperspirants, for the product still allows the user’s body to
excrete toxins and lower body temperature. At the moment, the chemical research behind Pommair
will result in turning the unappealing odour of sweat into an appealing scent of a fresh, crisp apple.
The cosmetic industry is thriving and rapidly growing, allowing Pommair to enter the market at an
optimal economic time. Beta Odour will advertise this product and its unique functions as a long-
lasting, daily necessity, which can also be used even when not intensely perspiring. Also, very few
chemicals are required, and in small concentrations, making Pommair a hypoallergenic product.
Market strategies include promoting the naturality and safety of Pommair. Social media sites such as
Facebook and Twitter will be extensively targeted, and a website solely for Beta Odour will be
created. Advertisements in newspapers and health and fitness magazines will also be implemented.
The main portion of the target audience will be reached by advertising at bus shelters for those who
commute longer distances. This will encourage individuals to switch from using the public transit to

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using human-powered transportation. Promotional partnerships and campaigns to promote any type
of human-powered transportation will be offered.
Pommair will be available to purchase online from Beta Odour’s website before entering small
retailers in Canada within two to six months of operation. As the company grows, larger retailers will
be approached. This product will be manufactured in units of 6 000 for the betterment of efficiency
and pricing. Consumers will be able to purchase this moderate to high quality product for a low price
of $12. Future financial assessment will determine whether or not external funding is required.
Beta Odour’s main focus is to encourage human-powered transportation by eliminating insecurities of
personal odour associated with perspiration, but there are many possible future applications of
Pommair. Beta Odour plans to create additional products which will create new, natural scents
through the chemical reaction between the applicant and application - as well as a non-scented
product line. This will expand the unique process of esterification to be used in exercising products as
well as create an odourless solution to be used in health care facilities. The market will expand to
target other audiences like athletes, as well as expand across Canada, eventually leading into the
markets in the rest of North America in the company’s third year.
The following contents in the business plan will outline in detail how Beta Odour will strive to
accomplish its objectives with a new, innovative, and appealing product that will promote human-
powered transportation and extinguish an individual’s concern over their body odour, giving them a
newfound confidence.

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2.0 Company Profile
2.1 Mission Statement
Beta Odour aims to provide a safe and innovative solution for converting the foul odour associated
with perspiration into a pleasant aroma without causing harm to the skin, in order to encourage
individuals to use human-powered transportation in their daily lives.
2.2 Beta Odour’s Goals and Objectives
Beta Odour’s main purpose is to remove odour as an inhibition to using human-powered
transportation. The objective is to provide customers with confidence after any physical activity by
removing the repelling odour associated with perspiration. This will encourage individuals to
participate in a healthier and more environmentally friendly lifestyle by incorporating methods of
human-transportation to commute to school or work. Many commuters may not use human-powered
transportation because they are conscious of their body odour associated with perspiration. Instead of
covering the odour with an artificial scent, possibly disturbing other individuals in the surroundings,
Beta Odour will create an innovative experience for its consumers by transforming the odour of their
own perspiration into a pleasant aroma.
2.3 Business Philosophy
Beta Odour believes in contributing to society in order to make the transportation system better, safer,
and more efficient so that individuals can travel to their destinations without prohibitive factors such
as odour. Customer loyalty will be created through Beta Odour’s top quality products. Investing in the
present to enhance the quality for the future is the motto of Beta Odour as the company advocates for
communities to become better places to live and grow by encouraging human-powered
transportation. Customer satisfaction and sustainable growth lie in the heart of Beta Odour.
2.4 Unique Competencies
Pommair is revolutionary to the market. Instead of concealing odour, Pommair transforms isovaleric
acid into a pleasant, apple-scented aroma. Unlike deodorants, which mask odour, and anti-
perspirants, which prohibit the pores from releasing sweat, Pommair allows the body to healthily
sweat while creating a pleasant scent. By utilizing esterification1
, there will be an alteration of the
pungent smell of isovaleric acid, resulting in a sweet smelling ethyl ester2
. Safety concerns for this
chemical reaction will be minimized, providing the user with comfort and relief. To prevent the
reactant and catalyst from coming into contact before the application of the product, a distinctive
bottle with two nozzles separating the two chemicals has been created. An application to the
underarm region from both sections of the bottle is required for the reaction to occur.
1
removal of a hydroxyl group from the carboxylic acid and a hydrogen from the alcohol to produce water and
another product with an ester bond.
2
a compound produced by an alcohol and acid reaction.

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2.5 Keys to Success
Beta Odour takes great great pride creating its products to the very best of its abilities and the
company strives to deliver perfection as much as possible. The keys to success are treating the
customers as if they were a part of the company itself and supplying them with only the best. Beta
Odour has developed a healthy solution to the problem of odour, taking the bodies natural processes.
The high quality ingredients that go into Pommair are carefully measured for maximum performance
while maintaining an affordable price in the market. Because Pommair will be a one of a kind product,
Beta Odour believes that it will be a popular item to a majority of the market.
2.6 Future Products and Services
Pommair currently alters the chemical composition of isovaleric acid, a pungent byproduct of
Staphylococcus epidermidis in the axilla, to produce a more pleasant aroma. Since this bacteria and
isovaleric acid are common on all the skin of individuals, this product may be applied to other
products, possibly including gym chalk to reduce odours.
Due to time constraints, there has been a limit to developing the ester that produces the apple-
scented aroma. With further investigations, Beta Odour will be able to extend the product line to
produce aroma therapeutic scents, such as lavender and mint, as well to produce no odour so that it
may be used in hospitals and other locations where strong scents and fragrances are restricted.
Other catalysts such as phosphoric acid will also be investigated to provide a premium product both
in efficiency and safety to the customer and the environment.
The axilla accommodates many lipids and proteins, from perspiration, as well as a variety of bacteria.
These bacteria metabolize the lipids and proteins secreted by the apocrine glands thus producing
various acids and odours. Staphylococcus haemolyticus produces a sulphur compound which has a
stronger odour than the isovaleric acid produced by Staphylococcus epidermidis. However,
manipulating the sulphur compound is a more complex process, requiring additional time and
expertise. Further investigation to improve efficiency of the product will take place in the future.
The unique product bottles will be sealed, not allowing the consumer access to the reactant and
catalyst before they converge. A service improvement will include a bottle return policy at participating
retailers. With this service, customers may receive compensation for returning the unique bottles
which will be collected and forwarded to the manufacturer for recycling.

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3.0 Products Profile
3.1 Technical Design
Pommair will transform the smell associated with perspiration, chemically altering the odorous fatty
acids that are produced in the underarm, to result in creating an aromatic apple scent. Pommair will
not interfere with the body’s natural, healthy metabolic process of perspiring. Instead, Pommair will
result in changing the odour caused by the byproduct of bacteria that feed on the lipids and proteins
in the perspiration secreted by the apocrine glands3
.
The body is covered with bacteria, which are an essential part of maintaining a healthy body. In the
axilla (and other parts of the body) are apocrine glands (see Figure 3.1.1). These glands secrete
water, proteins, and lipids during perspiration because they are in the same area as the sebaceous
glands4
. The sebaceous glands secrete sebum5
, an oily solution that contains the fat content of
sweat. A strain of bacteria called Staphylococcus epidermidis metabolize the lactate lipids secreted
by the apocrine and sebaceous glands. The bacteria’s byproduct is isovaleric acid, which produces a
cheese-like odour, making up part of the odour associated with perspiration.
Figure 3.1.1: A cross sectional diagram of the skin’s sweat glands.
3
a sweat gland located in the groin and underarm, produces sweat that ‘smells’.
4
small glands of the skin that produce sebum.
5
a lubricate containing fat, secreted by sebaceous glands.

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To apply Pommair, the consumer would simply press down on nozzle A, followed immediately by
nozzle B before exercising. The first chamber will contain a very low concentration solution of ethanol
(0.05 M C2H6O). The second chamber will contain a very low concentration of sulphuric acid (0.1 M
H2SO4). (See Appendix II)
Perspiration is 99% water. The remaining 1% is composed of the protein and fats mentioned above.
The very low concentrations of both the ethanol and sulphuric acid can be safely used because there
is a very low occurrence of the lactate metabolized by Staphylococcus epidermidis; the isovaleric acid
is in trace concentration, but it can produce a great quantity of unpleasant odour.
The appeal of Pommair will not only be in its chemistry, but also in its ergonomically designed bottle,
which will be pleasing to hold as well as appealing to the eye. With a sum volume of 200 mL in the
two chambers (100 mL each), the custom bottle will be comfortable to hold and easy for the
consumer to bring with them almost anywhere. The development of the dual nozzle head, used to
prevent the reactant and catalyst from reacting before the scent change is to take place, will also be
very effective. The overall appearance will allow the user to have one small, efficient bottle as
opposed to two bulky containers. Produced with the best polyvinyl chloride (PVC), Pommair is a new
experience to enjoy.
Pommair can also ease self consciousness; consumers will not need to worry about their body odour
once they have applied Pommair.
3.2 Description of Materials
Ethanol is an ethyl alcohol with a chemical formula of C2H6O. Produced by fermenting sugars from
fruits and vegetables, it is used in a variety of industries such as the automobile industry and furniture
processing. It is a colourless water-soluble substance. Ethanol possesses the ability to form ethers by
reacting with organic acids and evaporates quickly.
Sulphuric acid is a strong, colourless acid with a chemical formula of H2SO4. Sulphuric acid is
produced more than any other industrial chemical and is used in fertilizers in high concentrations.
Sulphuric acid is typically used in esterification reactions between carboxylic acids and alcohols.
Isovaleric acid, also known as 3-Methylbutanoic acid, with the chemical formula of C5H10O2, can
sometimes be classified as a fatty acid. It creates the unpleasant smell that accompanies sweat.
Isovaleric acid is the byproduct of the bacteria Staphylococcus epidermidis, which resides on the skin
in the underarms.
Ethyl isovalerate is a clear liquid that is soluble in water and alcohol. It has the fruitful smell of
apples and chamomile. Ethyl isovalerate is often used to increase flavouring and the smell of foods

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and beverages.
Polyvinyl chloride (PVC) is one of the most commonly used plastics. It has a strong structure, but
also has flexible properties. It is nontoxic and is therefore used widely in manufacturing of toys and
hospital grade products.
3.3 Scientific Analysis
The reactants in this chemical reaction are carboxylic acid6
and alcohol. When these two specific
chemical compounds come together in the presence of an acid catalyst, the reaction process is called
esterification. This chemical process removes a hydroxyl group from the carboxylic acid and a
hydrogen from the alcohol to produce water (H2O) and another product with an ester bond.
An ester bond (See Figure 3.3.1) is created when a hydrogen of the carboxylic acid is replaced with
an alkyl group7
. Esters with ten or less carbon atoms are soluble in water and decreases in solubility
when more carbon is present.
Figure 3.3.1: The molecular structure of an ester bond.
The byproduct isovaleric acid is a carboxylic acid. Pommair contains both ethanol and sulphuric acid
catalyst to initiate this esterification reaction. The products of this reaction are water and ethyl
isovaleric acid (See Figure 3.3.2). The reaction equation is as follows:
H2SO4
C5H10O2 + C2H6O→ C7H14O2 + H2O
The hydroxyl group on carbon-3 is removed and the hydrogen is removed from the hydroxyl group off
6
an organic compound that contains a carboxyl group.
7
a molecule that generally follows this formula CnH2n+1.

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of the ethanol. The remaining carbon and hydrogen molecules from the ethanol are then attached to
the carbon-3 site of the isovaleric acid by the oxygen molecule. Water and ethyl isovalerate are
produced using sulphuric acid as the catalyst to speed the reaction,
Figure 3.3.2: ethyl isovaleric molecular structure.
To calculate the required concentrations of this reaction, the following calculations were performed:
Chemical Molar
mass
Concentration
(M)
Mass (grams), Volume (mL)
Ethanol 46.08 0.05 M mass:
[𝑒𝑡ℎ𝑎𝑛𝑜𝑙] = (𝑚𝑎𝑠𝑠 ÷ 𝑚𝑜𝑙𝑎𝑟 𝑚𝑎𝑠𝑠)
÷ 𝑣𝑜𝑙𝑢𝑚𝑒
[0.05 𝑀] = (𝑚𝑎𝑠𝑠 ÷ 46.08) ÷ 0.1 𝐿
𝑚𝑎𝑠𝑠 = 0.005 ×46.08
𝑚𝑎𝑠𝑠 = 0.2304 𝑔𝑟𝑎𝑚𝑠
Sulphuric
acid
98.07 0.1 M volume:
𝑚𝑜𝑙𝑎𝑟𝑖𝑡𝑦𝛼×𝑣𝑜𝑙𝑢𝑚𝑒𝛼
= 𝑚𝑜𝑙𝑎𝑟𝑖𝑡𝑦𝛽×𝑣𝑜𝑙𝑢𝑚𝑒𝛽
18 𝑀 × 𝑣𝑜𝑙𝑢𝑚𝑒𝛼 = 0.1𝑀 ×0.1 𝐿
𝑣𝑜𝑙𝑢𝑚𝑒𝛼 = 0.01 ÷ 18
𝑣𝑜𝑙𝑢𝑚𝑒 𝛼 = 0.00055 𝐿
𝑣𝑜𝑙𝑢𝑚𝑒 𝛼 = 0.5 𝑚𝐿
3.4 Proof of Concept
Pommair is a line of cosmetic products using few chemical ingredients to alter the way bacterial
byproducts from perspiration smell by utilizing the esterification process. The process and use of
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sulphuric acid
ethanol isovaleric
acid
ethyl
isovalerate water

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esterification and ester bonds is a common chemical process that produces good-smelling scents.
The majority of these scents are pleasant and fruit-like. There has not been an abundant amount of
research done specifically on isovaleric acid with ethanol to produce ethyl isovalerate, but current
research studies have provided the means to produce a reliable product.
Both chemical components of Pommair are well known reactants in esterification reactions. A 2011
study conducted by Matthieu Bandres, Pascale de Caro, Sophie Thiebaud-Roux, and Marie-Elisabeth
Borredon at the University of Toulouse, France, conducted research on green synthesis of bio based
solvents8
. In the study, it was found that a ratio of ethanol to the isovaleric acid of 1:2, respectively,
successfully produced the desired apple-scented ethyl isovalerate. Although other tests found that
higher concentration ratios of 3:1 ethanol to isovaleric acid, respectfully, produced more ethyl
isovalerate, these concentrations of sulphuric acid were not safe for daily or home use. The positive
aspect of using ethanol in this reaction is not requiring intermediate steps to create the desired ester
bond on the ethyl isovalerate. This allows for Pommair to contain less, safer ingredients that can bring
peace of mind to customers. In the conclusion of the report, it was found that co-products9
of
bioethanol are safe molecules to use in place of current products.
A second source, Industrial Solvent Handbook from 2003 by Nicholas P. Cheremisinoff, showed that
the use of ethanol is safer than other alcohols, such as methanol. This is due to ethanol being less
toxic. Therefore, utilizing ethanol is preferable for Beta Odour’s goals due to its safe properties.
These research conclusions have made Beta Odour proud and confident in Pommair. Further
research and development in this field will provide more efficient and creative pathways for Beta
Odour to follow (see 2.6 Future Products and Services).
3.5 Health and Safety
Safety is a vital concern when it comes to Pommair. Although the reaction (between the isovaleric
acid and ethanol using a small quantity of sulphuric acid as a catalyst) is safe in a laboratory, further
testing is required. Using minimal chemicals required for an effective solution, a stable final product
is the end goal. Although isovaleric acid is approved for use as food additives by the Foods and Drug
Act (FDA), more investigation will berequired for this reactant to be used in this cosmetic-type
product. However, before Pommair is made available in Canada, a Cosmetic Notification Form10
must be submitted to Health Canada. Figure 3.5.1 exemplifies the look of the label that will need to
be presented on the back of each bottle of product.
8
a product derived of plant or animal livestock.
9
products made of ethanol plants.
10
a document outline the products ingredients, and their concentrations.

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Drug Facts
__________________________________________________________________________
__
Active Ingredient Purpose
Sulphuric Acid (Diluted from 99.9%)...........................................................Catalyst
Ethanol (Diluted from 99%).…....................................................................Creation of ester
Use For prevention of unpleasant scent resulting from underarm sweat. Eliminates odour
created by bacteria at the source.
Warnings
Use only as directed.
_____________________________________________________________________________________________________________________
____
For external use only. Do not use on broken skin.
_____________________________________________________________________________________________________________________
____
If rash or irritation occur, discontinue use immediately, and cleanse area with lukewarm
water. If ingested, seek medical help or contact local Poison Control Centre
immediately. If product comes in contact with eyes, flush with lukewarm water.
Directions Apply to underarms only. Apply a single spray of product from nozzle A to each
underarm, followed by a second spray from nozzle B over top. Apply directly before profusely
sweating, or apply in the morning for all-day freshness.
Inactive Ingredient
Distilled water
Figure 3.5.1: Drug Facts label.
4.0 Market analysis
4.1 Industry Analysis
4.1.1 Industry size
“In 2010, the Cosmetics, Beauty Supplies and Perfume Stores industry generated $61.3 million in
profits, up from $27.1 million in 2001. This represented an average annual increase of 9.5%, with a
60.1% increase observed between 2009 and 2010.” (Source: Canadian Industry Statistics, Retail,

15
Revenues and Expenses, Cosmetics, Beauty and Perfume Stores, 2012). Since the health and
beauty industry is rapidly blossoming, Pommair is making its appearance at an ideal economic time.
Also, since Pommair will quickly become a necessity for its consumers, the relevance of the industry
size decreases. Beta Odour plans on marketing this product in a way that would portray it as a daily
staple that cannot be avoided. Pommair will become so prominent that it will be as routine as
brushing teeth in the morning for its users.
4.1.2 Industry Trends and Outlook
According to the National Household Survey of Canada, “in 2011, 880 800 commuters walked to work
(5.7%), and 201 800 cycled (1.3%). In the 2006 Census, 6.4% of commuters walked and 1.3%
cycled”. This statistic, based on a total of 15.4 million Canadians who commuted to work, indicates a
slight decrease in the number of commuters using human-powered transportation to travel to and
from work. Many factors could be responsible for this change, although the most prominent can be
identified as: societal structure, the prominence of suburbs, and the discomfort of sweat. In today’s
society, it is much more likely for a businessperson to drive to work, simply because of the
convenience of a personal vehicle, and the autonomy it provides. In addition, if one considers the
structure of the majority of major cities in Canada, it can be observed that commuting by personal
vehicle is the only viable option, as suburbs are located at 30 minutes to an hour distances outside of
major cities. Therefore, if one wished to commute to work using only his or her own power (cycling,
walking), this would not be compatible with his or her lifestyle. Beta Odour understands the societal
structure, and is aware that there will still be a large group of the population that will continue to use
fuel-burning methods to commute to work. However, Beta Odour targets the business class that lives
within reasonable walking or cycling distance from its work. It is to be assumed that if people do not
have to worry about the additional stress of unpleasant odour after exercising, more people will be
willing to use human-powered transportation to travel. Beta Odour plans on playing a large role in
encouraging the working class to find more environmentally friendly and physically beneficial way to
commute.
Seasonal trends:
Due to Canada’s harsh weather conditions, especially in the winter, it is understandable that there
would be a decrease in the amount of people who walk and/or cycle to work during the harsh winter
months. Beta Odour will take this decrease in commuting into consideration when forecasting sales.
However, because Pommair can also be used for daily indoor physical activity (such as gym time),
the increased gym use throughout the brutal winters will most likely compensate for the decrease in
commuters.
4.2 SWOT analysis
4.2.1 Strengths
Pommair has many distinct strengths that provide a large competitive advantage. Pommair is
hypoallergenic, thus reducing the risk of an allergic skin reaction and satisfying consumers with
sensitive skin. Although some brands of deodorants and antiperspirants claim to be hypoallergenic,

16
these specific products are often much more expensive and not as effective as they are advertised to
be. Pommair is composed of elements that are at the optimal concentration to ensure a chemical
reaction that is both safe and effective. The employees of Beta Odour are all educated, intelligent,
and hardworking. These attributes allow Beta Odour to operate in an effective way at all times, with a
lowered risk of error. In addition, Beta Odour is proposing a completely new concept for removing the
smell of sweat which gives it a clean slate upon which to build a reputation. Consumers are often
interested in experimenting with new products, and Pommair will therefore cater to consumers who
wish to try a new, effective, and revolutionary product. A great benefit of Pommair is that it can be
used by virtually anyone: age, race, lifestyle, gender and financial standpoint do not interfere with the
effectiveness of the product. Pommair will be sold at a price similar to the competition, although it
offers many more benefits. This high quality and affordability will encourage consumers to give it a
try.
As a corporation, Beta Odour has many unique advantages that are offered to its clientele: Beta
Odour is inexpensive, yet works like an extremely high-quality product. Pommair is a brand-new
product that has never been seen before and it will quickly become the safest way to prevent body
odour. It offers the option of smelling lovely without the negative side-effects of clogged pores, a
harsh chemical smell, or a harmful skin reaction. The advanced chemical composition of Pommair will
serve as a gateway for future development and research of smell-reducing products.
Many factors contribute to the guaranteed sales of Pommair, including excellent and effective
marketing based out of magazines, newspapers and social media. There is a broad market available
to Beta Odour as Pommair is not just for commuters, it is for every person that wishes to smell better
without having potential health risks such as clogging pores or masking smells with harsh perfumes.
The speed at which word is spread when an excellent product hits the market will gain Pommair
popularity in part by the word of mouth of consumers recommending this product.
In a society driven by automotive commuting, Pommair will provide an effective alternative to those
who wish to commute in a more ecological way, without the problem of body odour.
4.2.2 Weaknesses
Weaknesses in business environments are unavoidable. However, Beta Odour employees are
working very hard to come up with innovative, efficient solutions to solve the problems posed by
these weaknesses. Due to Beta Odour being a brand new enterprise, competitors will have the
advantage in the realm of popularity. For this reason, Beta Odour plans to invest a large portion of
funds toward the marketing segments within the first few years of operation; therefore more people
will be aware of the amazing advantages of Pommair over those of competing products. Over time
Pommair will become more widespread, thus solving the issue of lack of popularity among target
markets. As many of the members of the management team lack experience in the field of running
multi-million dollar companies, it will be a learning experience to run this type of operation,
especially within the first five years of sales. However, over time this problem will be solved, as

17
experience and expertise will be gained. Pommair has full confidence in the abilities of its
employees as they are all skilled, hardworking, and enthusiastic entrepreneurs. Nevertheless, as
most of these employees will be pursuing post-secondary education and may not wish to
compromise their educations, Beta Odour will be investing in the salaries of a Chief Executive
Officer, an accountant, and a research and development advisor. Beta Odour will be expanding to
the use of sales agents in the future years when Beta Odour will expand into the United States. As
a start-up business, it comes as no surprise that initial funding may be minimal. To solve this
problem the employees of Beta Odour are working very hard to propose creative ways to stretch
every dollar, and organize extremely detailed financial reports, in order to invest wisely in various
fields. The financial department will assess whether or not external funding is necessary in the
future; if so, Beta Odour will apply for a loan and/or other forms of financial aid.
As the chemical reaction that results in a pleasant scent is quite advanced, it is important that Beta
Odour takes this into account in marketing. Beta Odour must ensure not to reveal the complexity of
the chemical process in detail within the marketing component, as there is a trade secret agreement
and also because some consumers may feel overwhelmed with complicated scientific information.
However, it is to be ensured that all essential information that is not included in the trade secret
agreement regarding the specifics of the chemical process will be readily available on the Beta
Odour’s website, so that interested customers would be informed on the functions of the product.
Factors that may negate sales include price, prestige, skepticism, lack of selection, and time.
In comparison to perfumes, Pommair is a lot less expensive. However, a difference of several dollars
more than average deodorant or antiperspirant may dissuade certain consumers from purchasing
Pommair. This situation would likely arise facing an uninformed customer: therefore, the product must
be marketed in a way that clearly states the advantages of Pommair over the competition
(hypoallergenic, healthy, natural, etc.). If one observes the price of the average “hypoallergenic
clinical” deodorant/antiperspirant, he or she will notice that this price is usually around $11.50.
Pommair will therefore have a price similar to this, as it offers the hypoallergenic factor, on top of
being natural and safe for skin. In addition, the affordable price of Pommair could potentially result in
consumers thinking that the product is “cheap” in terms of quality even though it is simply sold at an
affordable price. A price of $12 ensures the impression of quality while maintaining the affordability of
Pommair.
As Pommair will be sold through mainstream retailers, some consumers may see this as a lack of
luxury and exclusivity. However, the fact that Pommair will be sold in these large facilities will greatly
increase Beta Odour’s profitability and increase its popularity.
Due to the complex chemistry of Pommair, certain consumers may be uneasy as to whether or not it
would be wise to apply chemicals to their skin. In marketing, it will be crucial to emphasize the safety
of the product, as well as the purity of the chemical process (because the reaction is completely

18
organic).
As the chemical process of Pommair is very advanced and relatively new, in the beginning of sales
there will be no option regarding the specific scent of the product. Therefore, the scent of Pommair
will not be gender specific when it is first launched, and will only release the aroma of apples. This
may be a weakness as not every consumer would wish to smell like apples, but with advancements in
Research and Development, the product will thrive and more scents will become available, for men
and for women. Marketing factors that need to be taken into account when dealing with a unisex
product include label colours, fonts, and wording, as well as advertisement styles and depictions.
Even with the aid of the catalyst, the reaction will take approximately 50 minutes to become effective,
beginning when the reactants come in contact with the sweat. However, this will not be a large
problem, as although sweat may be produced during those 50 minutes after application, the scent of
the bacterial excrement will not be present until quite a while after, at a point where the reaction will
have already been produced, and so the apple scent released.
4.2.3 Opportunities and Threats (PEST Analysis)
Offensive odour has been a burden to the human population for an extensive period of time.
Especially around the past decade, society has become more aware and self-conscious of its
personal hygiene. Moreover, the natural pungent odour of perspiration is unavoidable unless an
unnatural method such as deodorant or antiperspirant is applied. The main concern around those
products is their health-related concerns. The debate among many with healthy lifestyles people is
whether to smell or to use the unnatural methods to prevent smell. Pommair is prime for this market
because it is able to prevent body odour without any means of blocking the pores. Beta Odour is
competing with odour preventive companies such as deodorants, antiperspirants, and perfumes.
However, since Beta Odour is introducing a new approach, this provides an opportunity to step into
the market with assured success. This natural method promotes a healthy alternative option for the
working population, active population, and the general public. The working population needs this
quick and easy-to-apply product for physical activities prior to working hours.
4.2.3.1 Political
In order to effectively launch Pommair, the Beta Odour will have to adhere to all political standards
and regulations. Firstly, in the marketing field, Pommair will need to follow The Canadian Code of
Advertising Standards, which includes 14 specific clauses. Labelling must also conform to a specific
standard, known as the Consumer Packaging and Labeling Act. As outlined in section 7 of the act,
under Labeling 1.3, where it is stated that “The product must conform with any other claims made
which may, for example, relate to its type, quality, performance, function, origin, or method of
manufacture.”. This statement applies to Pommair in the way that if on the label Pommair claims to be

19
hypoallergenic and/or hypoallergenic, there would have to be substantial proof that these claims
would be correct. According to section 2, labels must absolutely demonstrate three main components:
A. Product Identity Declaration (Pommair: Odour Transformer), B. Net Quantity Demonstration (200
mL), C. Dealer Name and Place of Business (Manufactured for Beta Odour, Toronto, Ontario,
Canada). The product’s label must additionally be written concisely in both English and French.
Although there is no specific act that directly affects Pommair on the environmental scale, Beta Odour
has defined itself as an environmentally friendly enterprise, and will therefore provide safe disposal
measures for the used product containers. The plastic bottles will be completely recyclable, thus
encouraging a more environmental alternative. According to Earth911, deodorant/antiperspirant
containers contain multiple types of plastic, thus rendering them non-recyclable by most local
recyclers’ standards. As the Pommair bottle will be constructed of simple, recyclable plastic, it will be
deemed recyclable by most local recycling programs. As with any product sold in Canada, Pommair
is subject to sales tax. This tax is based on the General Sales tax (5%), plus the Provincial Sales Tax
(varies per province). However, this added charge has no direct impact on the Beta Odour, as the
proceeds go directly to the government of Canada and/or the province/territory.
4.2.3.2 Economic
In 2012, Canada’s Gross Domestic Product11
was $1.77 trillion, resulting in a GDP per capita of $41
500. These figures place Canada on a similar wavelength as the United States with regards to
economic trends and lifestyle. It is to be assumed that one with $41 500 annually would be willing to
slightly increase his or her spending in order to solve a pressing problem in the scope of physical
health and the environment. In 2013, Canada’s unemployment rate was 7.1%, which is relatively low,
in comparison to other powerful economic countries, such as France (11%), the United States (7.6%)
and the United Kingdom (7.9%). Also, one can observe that Canada’s unemployment rate is steadily
decreasing since 2009 (See figure 4.2.3.1). Due to Canada’s steady, predictable economy, Pommair
will thrive. Canada’s PPP indicates that the vast majority of Canadians could afford such an effective,
reasonably priced product.
11
total market value of all goods within Canada.

20
Figure 4.2.3.1: Canadian Unemployment Rate diagram
4.2.3.3 Social
The population of Canada is augmenting at a steady pace. Due to the fact that the largest age
bracket was in the 40-45 year range in 2010, Pommair will have to take into consideration the aging
of this group of citizens, as these individuals who now fit in the target market of commuters may not
be working 10-15 years from now. Therefore Pommair will need to compensate for this aging
population by introducing the product to consumers before they retire, so that they can continue to
use the product throughout their active retirements. In addition, a large market that should be targeted
is that of the youth, teenage, and adult population as obesity is a large problem in today’s society,
and this demographic is easily reached due to social media. The average businessperson 20 to 34
years old today lives a very different lifestyle than that of those 50 years ago. In a technology-driven
society, it is important as a Beta Odour to acknowledge the relevance of technology in consumer’s
lives. Advertising through social media platforms is the most effective way to reach the largest span of
consumers in the smallest measure of time. An observable trend in today’s society is the increase of
independence in young people. Generally, adults are not as rushed to get married and establish
families at a young age. Also, many adults after post-secondary education are deciding to semi-
permanently live with their parents while working, thus increasing their revenue vs. expenses ratio.
This increased amount of spending money would allow this demographic to spend the small increase
in price as opposed to the competitor’s for a odour improvement.

21
Figure 4.2.3.2: Canadian Demographic chart
4.2.3.4 Technological
As Pommair is a completely unique product, being the only application of this chemical reaction in the
health and beauty spectrum, the only large threat from the technological industry would be the risk of
further applications of this reaction, at a lesser cost. However, Pommair has the advantage, as it is
the leader in originality of applying this chemical process. In the scope of social media, it will be
imperative to have a control of the constant fluctuations in the popularity of certain social media
platforms, and the development of new platforms (such as Vine, Pinterest, etc.). It will also be very
important to advertise on not one, but several social media platforms, in order to spread the word
about Beta Odour and Pommair.
4.2.4 Competitive Advantage
4.2.4.1 Advantage Over Direct competitors
PRODUCT Hypo- Presents no Does not Changes Allows for Applied

22
allergenic side effects mask odour odour at
molecular
level
necessary,
healthy
perspiration
mainly to
underarms
Pommair
Liquid Spray
✔ N/A ✔ ✔ ✔ ✔
Degree
Deodorant
Stick
✘ ✘ ✘ ✘ ✔ ✔
Secret
Deodorant
Stick
✘ ✘ ✘ ✘ ✔ ✔
Gillette
Deodorant
Stick
✘ ✘ ✘ ✘ ✔ ✔
Axe Spray-
On
Antiperspiran
t
✘ ✘ ✘ ✘ ✘ ✔
Old Spice
Spray-On
Antiperspiran
t
✘ ✘ ✘ ✘ ✘ ✔
Figure 4.2.4.1: Advantage over direct competitors table
4.2.4.2 Advantage Over Indirect Competitors
PRODUCT
Hypo-
allergenic
Presents no
side effects
Does not
mask odour
Changes
odour at
molecular
level
Allows for
necessary,
healthy
perspiration
Applied
mainly to
underarms
Pommair
Liquid
Spray
✔ ✔ ✔ ✔ ✔ ✔
Dove Soap ✔ ✔ ✔ ✘ ✔ ✔
Nike Dry Fit
Clothing
N/A N/A ✔ N/A ✔ N/A
Axe Body ✘ ✘ ✔ ✘ ✔ ✘

23
Wash
Johnson and
Johnson
Body Lotion
✔ ✘ ✘ ✘ ✔ ✘
Figure 4.2.4.2: Advantage over Indirect Competitors table
The competitive advantage for Pommair over many other competitors such as Degree®, Secret®,
Mitchum®, etc. is that it simply does not “bandage” the smell of sweat like the currently available
deodorants do, nor does Pommair “avoid” the smell as antiperspirants do by preventing sweat
altogether. Pommair allows the necessary and essential cool down process the body uses, allowing
perspiration to occur without the unwanted smell. Pommair chemically modifies the by-products and
therefore the smell associated with bacterial breakdown at the molecular level to change the “bad”
smelling products into esters. Esters produce smells preferred by the human nose such as fruit.
Pommair will be sold at a competitive price, although it offers many more benefits. This affordability
will encourage consumers to give it a try.
An average deodorant (in this case, Speed Stick) contains the following ingredients: Propylene glycol,
aqua, sodium stearate, parfum, sodium chloride, stearyl alcohol, tetrasodium EDTA, blue 1, ext. violet
2.
In contrast, Pommair contains: Distilled water, ethanol, sulphuric acid.
Beta Odour uses simple ingredients with no additives or dyes, composing of many less artificial
ingredients making it organic. This is key in putting it on top of the competition as it is organic,
healthy, and natural.
4.4 Target Market
Primarily, Pommair’s target market consists of people who are currently commuting to work but are
insecure about the smell of their sweat and/or those who would like to commute but are, once again,
plagued by the insecurity created by their body odour. With these two groups in mind Pommair will
manage to simultaneously encourage human-transportation, and create new commuters, thus
reducing Canada’s carbon footprint by reducing fossil fuel emissions caused by cars. The following
case study will analyse a day in the life of a typical Pommair user, Zachary, both before and after
discovering the product.
Before:
Zach works at a 30-minute bike ride from his job. However Zach has ruled out the option of physically
commuting to work, due to the unavoidable sweat that would result from his exercise. As a conscious
consumer and an active environmentalist, Zach understands both the risks of antiperspirant, and the

24
lack of natural ingredients in deodorants. Also faced with sensitive skin, Zach feels it is unwise to
apply harsh chemicals on his skin that would either cover up his smell (causing a pungent scent) or
clog the pores underneath his arms. Consequently Zach resorts to driving to work, emitting CO2 into
the atmosphere daily and causing his physical health to gradually decline. Zach would really enjoy
cycling to work, but due to his insecurity facing his unpleasant armpit odour, he is anxious that he will
not be taken seriously in the workplace. This insecurity has taken its toll on both Zach’s wallet, due to
the price of gas, and his physical condition. Zach feels trapped by the retail industry’s lack of an
environmentally friendly and odour-reducing product, that is natural and safe for skin.
After:
With Pommair Zach is able to feel better about himself by commuting to work with his own power. He
feels accomplished, as he is able to reduce his personal carbon footprint all while benefiting his
personal health with the daily exercise. Zach is extremely motivated by his new lifestyle, and swears
by Pommair. He has mentioned the product’s effectiveness to all of his friends and colleagues, who
have taken his suggestion and have started commuting in a human-powered fashion more often as a
result.
As a secondary, more broad target market, Pommair is geared toward the active population in
general. This comprises the average gym goers (ie. runners, cyclists, the aging population who
wishes to remain active, and competitive and/or professional athletes). Pommair can also be used on
a daily basis by anyone who finds the smell of their sweat uncomfortable. The possibilities of potential
users are endless, thus greatly increasing the chances of sales within the more difficult first years of
sales. According to a study conducted by Statistics Canada between 2008 and 2012, the number of
people who engage in physical activity during leisure time has been gradually increasing. Males were
slightly predominant, and the most active age group was identified as citizens between 45 and 60
years old. Pommair would permit this age group to continue to exercise, without the discomfort of an
unpleasant sweat odour, and it would also encourage other age groups to increase their physical
activity. A market that will be greatly affected by the launch of Pommair will be undoubtedly that of
people from 20 to 34 years, as they are the working class that are trying to find their place in the
booming job market, and because they are the most environmentally aware and willing to create
societal change.

25
Figure 4.4.1: Canadian Physical Activity analysis chart
4.5 Future Market Scenario
As science advances and Pommair’s popularity reaches exponential levels, Beta Odour plans on
expanding the market in order to cater to an even greater demographic. Throughout the early years of
the business, the Research and Development Advisor will spend a great deal of time researching
alternative options for the products Beta Odour will sell. These alternatives will include but aren’t
restricted to: alternative scents, an odourless product, and a quick and high-efficiency sweat
absorption method. The first amplification of market will be an expansion into the United States sales
market, through retailers such as CVS Pharmacy, Walgreens, Target, and Walmart. Depending on
the efficacy of this expansion, Beta Odour is not ruling out the option of releasing Pommair and its
successors onto the global sales market. Another market that Beta Odour hopes to reach is that of
hospitals, hospices, medical clinics, and other sterile, “scent-free” environments. This market would
only be reached if the R&D Advisor would be able to formulate a reaction that would neutralize the

26
smell of sweat, therefore emitting no perfume-like odours into the air. This product would be ideal for
doctors, nurses, specialists, and many other professionals who cannot wear scents in their daily lives.
5.0 Market Strategy
5.1 Objectives
Year 1:
○ Inform the public about how Pommair works and how it is different from antiperspirants
and deodorants, through the website, social media, and bus stop advertisements.
○ Position Pommair as an efficient, safe, and environmentally friendly solution for those
who commute or wish to commute in an environmental way, but are self-conscious
about their body odour.
○ Sell Pommair through retailers as well as online.
○ Establish an audience and venture into the specific target audience.
○ Recruit the specific members for the team to run Beta Odour.
○ Manage a healthy, and long term relationship with manufacturer located in China.
○ Foster a healthy team dynamic for the personnel.
Year 2:
○ Extend marketing of Pommair to target groups other than commuters (eg. athletes and
people who suffer from excessive sweating), again through website and social media.
○ Maintain good relations with customers, and look into acquiring a toll-free number line.
○ Continue expanding into more retailers in more regions across Canada.
Year 3:
○ Expand into the United States, and begin targeting an even wider market, which would
include hospital staff and healthcare professionals. (Note: This market can only be
effectively targeted if the Research and Development Analyst manages to develop an
odourless solution).
○ Expand development team and look further into expanding different products.
○ Advertise in the US, marketing into major cities.
○ Maintain market relations.
5.2 Product Position

27

28
Figure 5.2.1: Price vs. Quality diagram.
Pommair will be positioned as a reliable, long lasting, natural product that is moderate to high in price,
and high in quality with many unique selling points that differentiate it from competing products. The
aim of the positioning is for Pommair to be seen as a healthy alternative to deodorants and
antiperspirants that allows professionals to commute actively without worrying about the odour of their
sweat. Positioning the product as natural will make it more attractive to the increasing market that is
trying to use products that are less artificial and more organic. The product will be marketed as a
hypoallergenic scent transformer, as opposed to a deodorant, which masks the smell, or an
antiperspirant, which blocks the body’s natural healthy processes. It will be marketed as a long lasting
product that only needs to be applied once before exercising.
5.3 Channels of Distribution
Online Sales
Beta Odour will create a website that gives details about the company, its products and future
developments as well as an e-store that sells Pommair. This direct distribution channel is convenient
for customers because it allows them to buy Pommair whenever they want from the comfort of their
own homes. The costs associated with this channel of distribution include setting up the e-store and
coordinating shipments. Customers will be able to pay with all major credit cards and online payment
services like PayPal. Online sales will make up approximately 60% of Pommair’s first year sales.
Retailers
Beta Odour will hire a sales representative who will be selling Pommair to Canadians retailers. Beta
Odour aims to get Pommair in Wal-Mart and Shoppers Drug Mart. This channel will be beneficial
because having Pommair in well-known retail stores will give consumers confidence about the quality
and efficacy of the product. These retailers will make up approximately 40% of Pommair’s first year
sales.
5.4 Pricing
The chemicals required to produce Pommair will be sourced from Sigma-Aldrich Co., a worldwide
chemical supplier that sells in bulk. This allows the material cost of Pommair to be low. The cost to
produce one 200mL bottle is $2.43 (see cost breakdown in Appendix I(j)). This cost includes
materials, manufacturing, shipping and marketing. Beta Odour is including marketing as a factor in
deciding the price because it is crucial that the company earns back the expense and not have it build
up year after year. Beta Odour will sell Pommair to retailers for $7 per bottle and will recommend that
the retailer sell it for $12 per bottle to remain competitive with related products. Beta Odour will

29
assume that the retailer would impose a clause that Pommair could not be sold online for less than
retail price. Therefore, it would be sold on the Beta Odour website for $12.
5.5 Promotion
Website
Beta Odour will begin promoting Pommair with a company website that explains Beta Odour’s values,
vision and mission, as well as information about how Pommair works and the benefits associated with
the product. The website will have a simple, streamlined design to communicate the clean and natural
quality of Pommair. Conveniently, visitors will also be able to purchase Pommair through the online
store on the website.
Social Media
Beta Odour will launch a comprehensive social media campaign simultaneously with the website. The
company has already created a Facebook page that promotes and explains Pommair. In fewer than
24 hours, the page has received greater than 100 likes, and this figure is on the rise. To complement
the Facebook page, Beta Odour will create accounts on many other social media platforms including
Twitter, Instagram and Pinterest. These particular platforms are most likely to appeal to our primary
target market: commuters using human-powered transportation or who could be using human-
powered transportation, as they are geared towards people of all ages. Other platforms oriented more
specifically towards youth would not be as effective and will therefore not be included in the
marketing. The chosen platforms will also be able to reach a wide range of other potential customers
because of their popularity.
The projected cost of the website and the social media campaign total $4 000 in the first year as well
as further investment in later years. The cost of incorporating and e-store and PayPal into the website
is also included in the above figure.
Bus Shelters
Beta Odour will invest in advertisements in bus shelters beginning in the Greater Toronto Area (GTA).
The goal of these advertisements will be to reach commuters who use any form of passive
transportation (eg. car, public transit, etc) to get to work and encourage them to switch to human-
powered transportation, whether walking running, or using Bixi bikes, with the help of Pommair. The
advertisements are ideal because they will be able to reach commuters while they are commuting,
either on public transit or by car, and encourage them to reconsider how they get to work everyday.
The posters will address commuters specifically, but because they will be at street level, they will be
visible to a large audience, extending Pommair’s promotion. Beta Odour will invest 1 000 in the first
year into the bus shelter advertisements with continued investments in the future.
Promotional Partnerships

30
Beta Odour plans to partner with an office in the GTA to promote Pommair in the beginning of the
second year. Beta Odour will give the employees in the office free samples of Pommair in exchange
for participating in the “Don’t Sweat the Commute” challenge. In the challenge, participants would use
human powered transportation to commute to work for the month and try out Pommair.Beta Odour’s
website as well as social media campaigns will be used heavily to promote this challenge,
encouraging others to both try Pommair and use human powered transportation in their daily lives.
Beta Odour will also benefit from word of mouth promotion as the participants tell their friends and
family about Pommair. Beta Odour is earmarking $2 000 in addition to the cost of the free samples.
The office with which Beta Odour will partner will also contribute to the promotion in return for being
positioned as a company that advocates for the health of their employees and the health of the
environment.
Newspapers and Magazines
In later years, Beta Odour will invest in advertisements in newspapers and health and fitness
magazines. Newspaper advertisements will allow Beta Odour to reach a very large audience,
including secondary and tertiary target markets. Promotions in health and fitness magazines will
reach and appeal to a very specific secondary target market. Both of these promotional methods will
help with Pommair’s expansion into other markets, increasing the potential customer base.
Newspaper and magazine advertisements are very expensive, and do not target the primary target
market, so this strategy will be implemented in later years when more marketing funds are available.
6.0 Operation Strategy
6.1 Manufacturing Process
For the manufacturing process, Beta Odour will take the ethanol and sulphuric acid purchased from
various suppliers and ship them to the manufacturing plant. From there, the manufacturer will
combine the chemicals and form the separate solutions for the Pommair product. Polyvinyl plastic will
also be imported into the manufacturing plant in order to produce the spray bottles, nozzles, tubes,
and caps for the containment and application of the solutions.
6.2 Suppliers
During the first production run, Beta Odour aims to manufacture 12,000 units of the Pommair product.
The first solution of the product will be made from ethanol alcohol. This material will cost $0.0467 per
gram and an order of 2.808 kg will be purchased from Sigma-Aldrich. The second solution will be
made from sulphuric acid. This material will cost $0.0407 per ml. Beta Odour will be purchasing the
sulphuric acid from Sigma-Aldrich, who will supply the company with 6 L for its first year.Sigma-
Aldrich has many different locations all over the world, one being in Shanghai, China. This will help to

31
reduce the cost of shipping, and keep the costs of Beta Odour products’ low. The main component of
the solution is water. Beta Odour will need 2400 L of water to produce its projected number of units
for the first year. For the bottles, the company will be using polyvinyl chloride plastic to manufacture
the different components of the bottle, such as the cap and bottle. Beta Odour will be purchasing the
materials for the bottle for $0.25 in total from Alibaba.com. More information can be found in the table
in Appendix I (j) Production Cost Breakdown.
6.3 Quality Control
In order to ensure the highest quality product to retailers, and indirectly to consumers, Beta Odour will
perform a variety of “tests” to approve the final product. After doing extensive background research,
Beta Odour will carefully select a manufacturing company that is trustable to produce the necessary
components of Pommair. The components should be made to scale and have very minimal
discrepancies with the ordered design. The quality of Pommair will be assessed by members of Beta
Odour through a first-hand evaluation. A sample of the final product will be shipped to Beta Odour
before it is put on the shelves of a retail store for consumers. This ensures that the product is made at
the optimal and necessary quality. As reputation plays a key role in the value, during the initial 6
months of product development, Beta Odour will research into the shelf life of the solutions to ensure
the best result from Pommair.
6.4 Regulatory Issues
Patents: Beta Odour is planning on patenting the application of the chemical formulas and reactions
to the exterior of the body with the purpose of chemically changing the odour generally associated
with sweating. Patents are anticipated to be filed in Canada, U.S.A., and China. The patents for the
U.S.A. will be filed closer to the third year for expansion purposes. The reason why a patent should
be obtained for China is because of the fact that the product is to be manufactured in China and
needs intellectual property protection to ensure that it is not taken and produced elsewhere. To abide
by the the Canadian patent laws and the Patent Cooperation Treaty (PCT), Beta Odour will submit all
required documentations and fees throughout the entire 18 month patent pending process, until we
get our patent approved. The patents for U.S.A., and China will be looked into in the near future when
required.
Copyrights: Beta Odour plans on copyrighting all of its brochures, pamphlets, documents, and
advertisements that it releases into the public. Thus that, all contents, designs, graphics, the
selection’s reproduction, modification, distribution, electronic transmission or republication without
prior written permission will be strictly prohibited. Doing so will ensure that Beta Odour’s contents will
be protected.
Trade Secret: The trade secret of Beta Odour will be the concentration of chemicals that are
contained within the solutions. This will ensure that competitors of Beta Odour will be unable to

32
replicate the exact chemical process, and will give Beta Odour a competitive advantage of being able
to “change” the unwanted smell rather than just masking it.
Trademark: Beta Odour will be trademarking all logos associated with itself. The company will legally
register the trademark during the third year, when it expands to larger grounds. Before that, Beta
Odour will still hold rights to legally seek out those who use its logo.
6.5 Proposed Operations Location
Beta Odour plans to distribute Pommair in populated places, such as cities and suburban areas, due
to the higher customer size in comparison to rural areas. This will result in an increase in units sold as
there will be a larger geographic customer base.Beta Odour plans begin marketing and selling
Pommair in the Greater Toronto Area and then expand out into the surrounding areas, and then all of
Canada.
Beta Odour’s manufacturing facility, where the assembly of different components will occur, will be
located in Guangzhou, China, due to the high density of manufacturing plants. Beta Odour is hoping
to use Ghangzhou YaYanQingZhao Cosmetics as a possible resource to manufacture our product.

33
7.0 Human Resources
7.1 Management Members
The staffing members will mainly comprise of: C.E.O, accountant/secretary, marketing assistant,
research/development team, human resources management officer and customer service.
The C.E.O will be the overseer of operations and will make sure that all tasks are carried out swiftly.
Seeing as Beta Odour is in new stages, and does not require extensive task management, a salary of
$70 000 seems reasonable.
Following the C.E.O. comes the accountant or secretary. He/she will be responsible for assisting the
C.E.O. and also be taking care of all accounting tasks, which include creating balance sheets,
managing data, and other tasks.
Then comes the research and development team, which will mainly consist of one personnel for the
first and second year. He/she will be responsible for the further research of the product, and also
possible expansions of other products. During the third year, Beta Odour will start expanding its team
in order to consist of another member, and he will be helping to develop more products. Some of
these products could include different scents, different formulas, and different tasks.
The marketing assistant will be responsible for researching possible target audiences, as well as new
methods of selling Pommair and other future products. The marketing assistant will also be assisting
the C.E.O. in researching and marketing.
Then, the human resources management officer will be responsible for allocating personnel, and also
recruiting new members if need be. However, the position would only need to be occupied starting in
the third year of the business.
7.2 Board of Directors
The Board of Directors for Beta Odour includes the following members:
Chairman:
Kaamil Ajmeri
Treasurer:
Jessica Liu

34
Secretaries:
Katherine Duncan
Jaena Kim
General Directors:
Shawn Khullar
Julia Grein
Sarah Margaret Ziegel
Tina Chen
Prarthi Parikh
Michael Xu
Adam Tweedle
Firas AlMomen
The main roles of the Board of Directors will include:
· Governing the entire company through the establishment of policies and objectives/goals
· Hiring and reviewing the performance of a Chief Executive Officer (CEO)
· Reporting to stakeholders about the performance of the company
· Accumulating adequate financial resources for further research and development
· Checking and approving annual budgeting
· Negotiating salaries and wages for company management
8.0 Financial Strategy
8.1 Start Up Investments and Expenses
Beta Odour will not invest in buildings, vehicles or land simply because the product and business do
not require these amenities. All of these investments under usual circumstances usually depreciate in
value. Seeing as the company has no profitable use for them, it has chosen to not invest in them.
The expenses for the first year will include a wide arrangement of costs. The first and most obvious
cost would be the product material fees. Beta Odour has specifically spiked the inventory cargo in
certain months because buying bulks will increase efficiency and decrease the overall cost of
shipping. The material itself will cost around $0.36, and this is tailored to Pommair.
The bottles will be purchased in bulk, and outsourced from inexpensive producers. After research, a
bottle manufactured in China, including procedures, handling and shipping, would have a cost at
$0.25. From the second year, after the company obtains more credibility, Beta Odour will increase the
bulk and as a result decrease the price per bottle. Another matter of cost regarding the product itself
is placement. During the first year, Beta Odour will want to place its products in a prominent position.

35
This amount will include market analysis as well, and Beta Odour plans it to be around $0.75. During
the second year, this value will increase as Pommair will have to research a broader audience. The
same trend can be said for the third year. The shipping cost, per bottle of Pommair, is placed around
$0.07 per bottle.
Another section of Beta Odour’s costs will be attributed to promotional fees. These fees will include a
large range varying from advertising in magazines to using social media platforms. Beta Odour will
concentrate its advertisements during the summer months, as Pommair will be fairly seasonal in the
first year (being geared specifically to commuters using human-powered transportation). One method
of advertisement will be through internet advertising, and through social media platforms. These ads
will cost approximately $900 per month. Beta Odour believes that investing in social media sites or
sites such as Bikeforum.com will be beneficial to the company’s overall sales. The final method of
advertisement will be through newspaper, which will be executed 4-5 days per month during the
summer months. These ads will likely be quarter size and black and white, which is around $1 000.
For its third year, Beta Odour plans on investing a significant amount of money into a trade show.
This trade show will be targeting the American audience, as it will be hosted in United States of
America. Approximate cost is $20 000 per month for two months.
Another expense that will come into play will be the fee paid to the patent adviser. The latter will
instruct the company on what to do and how to do it with regards to Pommair. The decision to patent
the formula or to keep it a trade secret will be based upon the patent advisor’s guidance. A usual
patent officer charges by the hour, making it safe to estimate an average of $4000 in the first month
as a comprehensive view.
There will also be a six month development expense, which will mainly be used to test, certify, and
research Pommair before it reaches the market. Within these four months Pommair will be absent
from the market but the company believes it is crucial for the development of Pommair.
There will also be an attorney cost, mainly to help Beta Odour sign contracts with retailers and deal
with any legal issues that may arise during the startup of the business. This attorney will be mainly
utilized for the negotiation during the beginning stages and taking into account that most lawyers are
charged by hour, a budget of $4 000 will cover this expense.
The products will be stored in the warehouse, which expected cost is approximated to be $2 500 per
month, as the company does not require a lot of space for the storage of small containers of
Pommair. From year two, Beta Odour plans to move to a bigger warehouse, as the number of its
sales will increase. Similarly, an expansion will be necessary in year three. With the expansion of the
warehouse, the company also plans to rent an office which would mainly be used for negotiations
with more retailers, and to house international relations with US corporations.
Moving on to the personnel, Beta Odour will set the wages for workers at 5% of sales, because in

36
order to make its product, all one will have to do is to create the substance in bulk, and pour it into
containers, apply a label, and close the cap. For the company’s first year, it will only be needing a
retailing manager, to ensure that its products are sold. This manager’s salary is estimated to be $27
000 with an annual $3 000 raise. In Beta Odours second year, it will hire a marketing assistant who
will assist in helping the company identify the main needs of the market. For its third year, because
Beta Odour will be focusing on a global scale, and receiving more trades. It will be hiring an
accountant to deal with the multitude of transactions. These figures are taken from the average
salaries of each of the occupations.
8.2 Funding
Beta Odour will opt to stray away from investments, as it will have quite a low startup cost compared
to other businesses. As a result, the company will resort to a bank loan in the first year as its primary
principle. The business will start with a principle of $50 000 loaned over three years with a total
interest rate of 12%. This amount will mainly be used to get Beta Odour past the first year at the
breakeven point. This amount will be borrowed from any major bank within Canada, and the high
interest rate of 12% will be mainly credited to the company’s lack of initial collateral. The prime rate
from RBC is 3%, and the premium amount added to it is approximately 0.6% - 6.9%. In this situation,
the company is prepared for the least desirable rate, which is 6.9%. Added together, Beta Odour has
around 10%. However, this is per business transaction. Thus, the fixed interest rate can be estimated
at around 12%. Beta Odour will also look into angel investors and potential kickstarter projects. These
values are not accounted for in the closing cash graph, as these values are arbitrary and are up to the
jurisdiction of chance. As a result, the closing cash graph does not take into account other
investments and funding from these sources.
8.3 Break Even Analysis
Beta Odour’s breakeven cost each year will increase as the company will be trying to expand, and as
a result the company’s fixed expenses will increase exponentially. Beta Odour does not foresee
reaching its breakeven point within the first year, as there will be many starting expenses that draw
back the business, such as development and lack of initial sales. In year two, through effective
advertising, Beta Odour will breach its breakeven. Following this trend, Beta Odour will also meet its
breakeven point in year three. Even though the company will have reached its breakeven point, there
will still be many costs that will prevent the company from reaching its full potential in the first three
years. However, by mapping a pro forma, a positive trend can be observed.

37
Year 1 Year 2 Year 3
8.4 Financial Statement Analysis
8.4.1 First Year Balance Sheet
A main theme to note is that there will be no inventory for the first six months, because during these
months, Pommair will be going through extensive testing and development to ensure the safety of
future consumers. In addition, the cash value will be decreasing. The cash value will be continuously
dropping as there will be many fees to cover such as salaries, promotions and other expenses. Beta
Odour will have no fixed assets for the first year as it plans to outsource its products from China, and
will place no investments into any sectors.
Refer to Appendix A (ii) .
8.4.2 Three Year Balance Sheet
A main thesis to point out is the trend in total assets. At the end of year one, Beta Odour will hold a
negative asset of -$256 966. Similarly, in the second year, there will also be a negative asset. This
value, however, is changed in the third year, where it will rise significantly to -$2 468. This increase in
assets will mainly be credited to the large increase in target audience. In addition, because Beta
Odour buys its inventory in bulk and in intervals, there will be fewer fees incurred. Beta Odour must
also build up a decent audience size that can greatly increase the company’s sales.
Refer to Appendix A (ii) (v) (viii).

38
8.4.3 Annual Income Statement
In the three first years of operation, the first year will have a sales of $102 749, the following $435 396
and the third year $1 261 924. Each year, the sales will exponentially increase. Similarly, the gross
margin will also increase exponentially. Besides sales, the operating expenses will additionally be
increasing with the expansion of Beta Odour. Starting with advertising, there will be a sharp increase
in the third year, mainly due to Beta Odour’s expansion into the U.S market, as many advertising
efforts will have to be performed. Some of the other expenses will be exclusive to the first year
including Patent Opinion, development cost, attorney cost, graphic design, and sales agent costs.
These expenses will all be a result of setting up the company, and will disappear as Beta Odour
moves towards its second and third year.
Refer to Appendix A (i) (iv) (vii).
8.4.3 Annual Cash Flow
The opening cash for the first year will look very crippling, as it quickly hits -$237 995 at the twelfth
month. This is a debilitating hit to a company, however these values may change as mentioned in
section 5.3 Funding, that Beta Odour may receive other forms of funding not mentioned in the graph.
Such a huge negative closing cash is credited to Beta Odours hard line on expansion; Beta Odour
believes in investing monetary values into creating a team that will last into the future. The company
believes in investing monetary values into advertising to build a strong target audience. These are
investments that run in the long run, and are potentially investments that will pay for themselves in the
long run as well. The total cash flow from operations will be in negative in the first year, as will the net
income. These negative values are because of the many expenses as mentioned above in section
8.1.
In the second year, the opening cash will still be in the negative, but clearly, will show a deceleration
of dropping. This is because Beta Odour has built up a target audience large enough to foster the
sales of Pommair. There will also be no more expenses that only affected particularly first year. The
net income also shows signs of turning, as during the peak months, the net income will rise to a
positive value.
In the third year, the opening cash will start to rise, as Beta Odour will have built up a strong audience
through effective advertising. Because of this, the company’s reputation will also improve. In addition
to this Beta Odour’s expansion into the U.S. market should greatly help sales. There will be a huge
positive increase in the closing cash during the 10th, 11th, and 12th month. This figure is because
Beta Odour has bought all of its raw material during the 7th month, and as a result, the company is
making pure profit in those months for its product. Also, these are the months where retailers will be
paying Beta Odour the majority of the money of the products that Beta Odour sold during the summer
months, which are the company’s peak months.
Refer to Appendix A (iii) (vi) (ix).

39

40
Pro Forma (5 years) Cash Balance/ Cash Flow
These pro forma graphs, show that within 2 more years, our product will rise to significantly new
heights. The cash balance will be positive and remain positive from year 5 onwards.

41
8.5 3 Year Profit Analysis
During the first year, Beta Odour’s sales will only reach a measly $96 328, which is far from enough
to cover the fixed expenses of the year. As a result, the first year operating profit will hit -$299 165 .
This is mainly because during the first year of sales there is a long period of testing and development
which is required for products like Pommair. In addition, there are also several other fees that are
incurred such as patent opinion fees, attorney fees, and sales agent fees.
During the second year however, Beta Odour will reach around $678 794 in sales, which is enough to
cover fixed expenses and create an operating profit of $97 119. The reason for such a large increase
is mainly credited to the expansion of the market into a broader target audience: people who are
athletic. In addition and unlike the first year, the second year will have a full twelve month selling
period.
Finally, during the third year, Beta Odour’s sales will hit $1 315 151, which will generate an operating
profit of $282 460. As clearly shown, Beta Odour shows signs of continual growth and expansion: it
expands into the United States. Only targeting major cities, Beta Odour should be able to capture a
large percentage of the audience within US.
Refer to Appendix A.

42
8.6 Projected Market Percentage Analysis
For the first year, Beta Odour will be mainly targeting Canadian commuters who travel to work by bike
or foot. The advertisements will be target this audience mainly, and as a result Beta Odour should
have approximately 2% market share, as there are no products similar to Pommair currently in the
market. There is also a good market for those who commute to work by walking. These will be mainly
targeted during the summer months, as chances of people sweating in summer are greater. This is
estimated to be 0.7-0.8% but the excel format used rounds it to 1%.
For the second year, the two target markets for year one both increased by 2% because Beta Odour
continues to focus on advertising and expansion. Beta Odour will also open to a new market: the
athletic population aged 24-34. Beta Odour originally expected a 0.5% market of 4 million people.
Athletes who usually train and workout, and after doing so, have to transfer to another method of of
occupation; this product will be perfect for them as they may require a shower in the middle, but do
not have the sufficient time to do so.
For the third year, the bike market will increase by 1% and the walking market will increase by 3%.
Beta Odour chose to focus more on commuters who walk because there is a larger market, and thus
more possibility for expansion. The athlete market will increase by 2% as the advertisements on the
internet will be targeted towards this audience. In addition, Beta Odour will also be expanding its
market into the U.S. There will be a 2% market expectancy on a 890,000 audience, which is the
number of bike commuters in major U.S cities. This 2% is expected because Beta Odour will be
investing $35 000 into the U.S. market and our product will serve as a product that can allow people
to commute to work more smoothly.
Refer to Appendix A
9.0 Exit Strategy
If the need arises for Beta Odour to change its current positioning, buyout and expansion will be
taken into consideration.
When Pommair has become successful, established and gained enough presence in the market,
companies will become aware of the profitability of Pommair and its potential for further expansion.
This will thereby place Beta Odour in an ideal position for buyout.
Once Beta Odour has become a profitable company and product awareness has grown dramatically
through social media and word of mouth, Beta Odour will continue expansion by entering into the
potential markets across Europe and China. This will provide a competitive background and force
Beta Odour to develop new strategies to gain a foothold in these new territories. However, to do so,
Beta Odour will require significant resources and money and will hence become a viable option once
the company has become profitable.

43
In addition to the above two strategies, Beta Odour will also be purchasing insurance in order to gain
protection from unforeseen circumstances. More specifically, Beta Odour will be purchasing business
interruption as well as casualty insurance. The business interruption insurance will protect the
company in case Beta Odour faces issues that may stop production and the flow of income. The
casualty insurance will protect Beta Odour in the case a customer is injured with the use of Pommair.
In this way, Beta Odour can continue running successfully in the case of unexpected events.
In the event that Pommair is an unsuccessful product Beta Odour will attempt to sell the idea to larger
producers of perfume products such as Old Spice.The CEO and the Board of Directors of the
company will be present to demonstrate the potential created by Pommair. They will show how a
larger company with more funding opportunities will add to the success of the product. In the case
that the company is unable to sell these rights, Beta Odour’s insurance will minimize the losses.

44
Appendix I: Finance
a)

45
b)

46
c)

47
d)

48
e)
e)

49
f)

50
g)

51
h)

52
i)

53
j)
Item Cost/Unit
Ethanol $0.00934/0.234g
Sulphuric Acid $0.35/0.5mL
Water* $0/199.266mL
Polyvinyl Chloride
Plastic + Components
for Bottle
$0.25/bottle
Additional Factors Cost
Equipment (Distiller)** $0.07
Manufacturing Fee $1.375
Advertisements*** $0.3785
Shipping $0.06
*Will be taken using utilities (plumbing), factored into manufacturing fee
**Pay off in 3 years, but is still factored into final price
***Used to ensure expense will be covered

54
Appendix III: The Executive Team- Qualifications
Individual Education Experience
Kaamil Ajmeri Grade 12 International
Baccalaureate student at
Turner Fenton Secondary
School, Brampton ON
- Minister of Leadership
Development of the 2013-
2014 PSPC Executive
Council
Firas Al Momen Grade 12 student at Najd
National Schools, Riyadh,
KSA
-National and international
mathematical olympiad team
in Riyadh
-Rescue SCUBA Diver
Tina Chen Grade 12 student at Havergal
College, Toronto ON
-Co-head of the Robotics
Club
-active volunteer at Cummer
Lodge, home for the elderly
-active volunteer at the Heart
and Stroke Foundation
Katherine Duncan Grade 12 student at École
Secondaire Georges-P.-
Vanier, Hamilton ON
-Student Council president
-Secretary of executive
committee of Children’s
International Summer
Villages,Waterloo chapter
-Excellence award recipient
in theatre at District and
Regional SEARS Ontario
Theatre festivals
-Mentor in Hamilton Health
Unit’s IDEAs program
(Informed Decisions
Empowering Adolescents)
Julia Grein Grade 12 Student at John
Diefenbaker Secondary
School, Hanover ON
- Student Council Public
Relations Officer
- Deep River Science
Academy co-op student at
Chalk River Laboratories
- active church youth member
Shawn Khullar Grade 12 Student at
Martingrove Collegiate
-Executive Member of
Robotics Club

55
Institute, Toronto ON -Active and Current Volunteer
at William Osler Health
System Hospital
-Executive Member of MCI
Environmental Club
-Attended Waterloo Unlimited
-Member of Student
Administrative Council
-Volunteer at Heart and
Stroke Foundation
-Active Member of MCI
Emergency Response Team
Jaena Kim Grade 11 Student at Dakota
Collegiate Institute, Winnipeg
MB
- Active Volunteer for
numerous charities and the
Children’s Hospital of
Winnipeg
- Musical debut at age 13
with the Winnipeg Symphony
Orchestra
- Attained many musical
examination diplomas from
the Royal Conservatory of
Music
Jessica Liu Grade 11 Student at École
Secondaire R.A. McMath,
Richmond BC
-Chair of REaDY (Richmond
Earth Day Youth) Summit
2013
-Captain of McMath Green
Ambassadors Team
(Richmond District Green
Team)
-Executive member of
McMath Natural Club
-26th Vancouver Youth
Parliament Representative
-Registered Royal
Conservatory of Music
Teacher (Piano)
Prarthi Parikh Grade 11 student
FAIPS, Ahmadi
Kuwait
-An active member of
toastmasters international
club
-Won many national level
debate and extemporary
competitions

56
Adam Tweedle Grade 11 Student at Cardinal
Newman Catholic Secondary
School, Stoney Creek ON
-Bronze Medal in the Bay
Area Engineering and
Science Fair
-Involved in the Ontario
Envirothon Competition
-Participant in Cayley and
MacMaster Math Contests
-Volunteer Volleyball Coach
Michael Xu Grade 12 student at Uhill
Secondary School,
Vancouver BC
-Vancouver District Student
Council Executive Board
-SDC Blue Ribbon
Foundation: Chief Financial
Officer
-Make A Wish Network:
Vancouver District Manager
-BC Provincial Debater
-President of MUN, Art and
Key Club
Sarah Margaret Ziegel Graduate of Fellowes High
School, Pembroke ON
- Student Council Secretary
- Representative for the
Renfrew County District
Health Unit’s ‘Love My Life’
campaign.
- Founder and member of
The Tolerance Club
- The Columbus House
volunteer
- Ottawa Snowsuit Fund
volunteer

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