2. 2
Lipstick Effect
Customers Crave: Low cost luxury goods that lift their spirits and deliver big bang
for their buck
U.S. retail sales of cosmeceuticals at $9.7 billion
with ongoing annual sales gains expected to boost the market to
$11.7 billion by 2016
4. Applicator
supplied by
manufacturer
can’t reach all
the lip gloss
4
The Problem Solved by Swoon
• Average tube of
prestige lip gloss costs
$22.50
• $4.50 worth of product
wasted
• 25 million units shipped
annually
• 100 million units sitting
in homes today - $450
million saved!
20% of lip gloss is paid for
& not enjoyed by consumer
5. 5
Swoon is an Overdue Product
“Don't you hate it when you're almost out of lip gloss and
you can see more inside the tube but can't reach it with
the applicator? Me too. I taught myself this trick back in
high school so I could remove the stopper and scrape every
last bit of lip gloss off the sides of the bottle."
"I cut the tube in half with a pair of scissors and use a cosmetic
spatula... Usually I can use this for a couple more weeks!"
"I would definitely go with a Q-tip. My next thought was a pipe
cleaner but that might hurt!"
“The trick, she told me, is to remove the 'wand wiper' which
allows the wand to reach further to the bottom and closer
to the side walls."
6. Keisha Wright, Founder & CEO
Lip Gloss Lover | Marketing Executive
• Decided to solve the problem
• BA from Stanford and years of marketing experience at Macy’s, the
NBA and Nickelodeon
• Leads overall company vision, product strategy, marketing and
customer support
Anthony Franklin, President & COO
Guy Who Loves Girl Who Loves Gloss | Business Development Expert
• BS from Stanford, MBA from University of Houston Bauer
• Over 20 years experience in business growth and sustainability,
mergers & acquisitions and project management
• Leads operations including product quality, supply chain
management, legal, finance, and business development
Inception
6
Swoon’s founder is a self-proclaimed lip gloss lover. She loves its sheen, shine and the way it makes her pout
perky. Despite her love for gloss, it caused her a significant point of pain. No matter the brand, the applicator
never reaches to the bottom of the tube, causing her to toss tubes that still contained valuable product
inside, until now…
7. 7
Introducing Swoon
A revolutionary, patent pending cosmetics tool for
use in retrieving and applying every bit of gloss
from a lip gloss tube
Flexible
application
neck
Elegant and
easy to hold
Designed to reach
every spot
Non-porous, easy-to-
clean and flexible tip,
shaped like a fine
calligraphy pen
8. 8
The Market
• According to the NPD Group, the
lip color segment generated $548
million dollars in 2012
• 8% vs. 2011
• Lip applicator sub-segment
outpaced growth of the lip color
segment , 9% YOY
$390 million
U.S. Market
105 million
women in
U.S.
80 million
wear
lip gloss
26 million
experience
point of pain
9. 9
Launching Swoon
PR Campaign
pitching beauty
blogger, short
lead press
Holiday Gift list
story
Launch
Indiegogo
campaign/
website
Indiegogo
fulfillment
PR Campaign
pitching trade
publications,
promoting
Cosmoprof
exhibit
Cosmoprof
order
fulfillment;
Consumer
PR, digital
marketing
Release to
manufacturing
Cosmoprof
Trade Show,
Las Vegas
seeking
distribution
at Specialty
retailers
10. 10
Swoon Buzz
“OK, this is genius. And I totally JUST threw three Chanel
gloss tubes away that still had gloss in them and I was
cursing as I did… Send me one”
-Melissa Stone Mangham, VP Marketing, Style Network
“Keisha Wright thought that it would be a good idea to create a
solution to this age old problem by simply creating a longer
wand (duh right?). Meet Swoon- The product that will allow
your gloss to be great to the last drop.”
-Glitter, Gloss, Garbage Beauty Blog
“Swoon is a genius invention… a universal lip gloss wand
that is part spoon, part applicator and allows makeup
wearers everywhere to finally use every ounce of their lip
gloss ...”
“XO Swoon is clever”
– Jacqueline Laurita, Real Housewives of New Jersey
11. Business Model
B2CB2B
Revenue | 85%
Beauty retailers
Specialty online aggregators
15%
www.getswoon.com
Market to and become beauty brand of choice
among glam gals who want the most puck for their
buck and a voice in future product development
11
12. 12
Swoon Pricing
The closest comparable
product is the lip brush,
which are designed to
enhance application but
do not save money.
Lip brushes range in
price from $10 for a
store brand to $40 for
a prestige brand.
$15
- $1
$14
93%
Price
COGS
Gross
Margin
Margin %
$7.50
- $1
$6.50
87%
Retail Wholesale
13. Selling Swoon
Indiegogo
Blogosphere
Glitter, Gloss, Garbage
Daily Beauty Review
Examiner.com
Wiles online magazine
Social Media
@StyleQuickTips
YourStyleJourney.com
PR
Huffington Post
People Style Watch
Inside Edition
SEO
INCREASE AWARENESS CREATE BUZZ & DEMAND DRIVE SALES
SEO
Paid display ads
Social media
Blogosphere
Website
Beauty Peeves Blog
E-newsletter
Video tips
Giveaways
Jones Magazine
MadameNoire*
StyleBlazer*
Events
PR
Trade publications*
Blogosphere
Industry influencer seeding
Web Promotions
Free shipping
More Puck for Your Buck
(GWP)
Seasonal multi-unit
incentives
New products
Trade shows
Cosmoprof – 7/2013*
ECRM – 2/2014
HBA – 6/2014
1:1 Buyer meetings
Ricky’s
Ulta
Sephora
Trymbl.com
Joyus.com
Birchbox
13
* Denotes confirmation
16. 16
Major Milestones Achieved
1. Friends & Family $55,000 funding round successfully completed.
2. Finalized design of company’s flagship product.
3. Successful launch of the company’s website.
4. Provisional utility patent granted by USPTO.
5. Successful prototype development phase concluded.
6. Manufactured first 500 units of Swoon lip gloss applicator for product seeding and
awareness driving
7. Formal launch of Swoon, indie beauty company, and first namesake product at the
largest beauty trade show in North America; recognized as Top 10 show innovation
8. Serious discussions with national retailers interested in launching our
groundbreaking product nationally and internationally.
17. 17
Use of Funds
Use of Funds %of Total
Product Design & Development Expenses $ 49,930 22%
Initial Inventory (N=10,000) $ 9,420 19%
Injection Molds $ 39,510 79%
UPC Code $ 1,000 2%
Sales & Marketing Expenses $ 122,500 55%
Digital Marketing & PR $ 77,500 63%
Company/Product Brand Development $ 40,000 33%
Trade Show Fees & Collateral $ 5,000 4%
General & Administrative Expenses $ 52,250 23%
Payroll $ 27,000 52%
Inventory & Fullfilment Management $ 6,000 11%
Intellectual Property Management $ 5,000 10%
Travel $ 9,000 17%
General Legal Services $ 2,500 5%
Accounting Services $ 1,500 3%
Office Supplies $ 750 1%
Business Insurance $ 500 1%
Total $ 224,680 100%
19. 19
Future Product Development
Future product development will be guided by the “lip stick effect,” the
theory that consumers are more willing to purchase lower cost luxury goods
that lift their spirits and deliver big bang for their buck, and the success of
“cosmeceuticals” which deliver curative and preventative benefits on top of
cosmetic ones.
• Disposable Swoon
• Swoon Perfect Pout Lip Scrub
• Smooth as Silk Shave Oil
• Pedi Pick Me Up – A soothing salve for
use between pedicures