Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Lemolo - Final Presentation

142 views

Published on

Capstone project final presentation.

Published in: Business
  • Login to see the comments

  • Be the first to like this

Lemolo - Final Presentation

  1. 1. Juo Wei Chen | Travis Hammond | Marissa Herold | Steve McQuaide | Will Schuh
  2. 2. DURABILITY VS. WEIGHT
  3. 3. 3 Wild; untamed. (le-mo'-lo) Chinook Jargon VALUE PROPOSITION First brand to cater exclusively to the long-distance hiker, focusing on market priorities: lightweight, durable, comfortable MISSION STATEMENT We make durable and lightweight products that exceed the demands of the long distance hiking community, inspiring the exploration of their limits, themselves, and the planet.
  4. 4. 4 TARGET CONSUMER Ages: 23 - 31 Location: United States Occupation: Accountant, Massage Therapist Income: $60,000 - 80,000 Marital Status: Unmarried Education: Undergraduate Children: None ANDREW and KRISTEN
  5. 5. 5 CASUAL ENTHUSIAST OBSESSIVE 3M LDH $500M SAM 29M HIKERS 47M HIKERS 2008 2017 $2.51 BILLIONTotal sales of hiking/trail shoes & “Big 3” in 2017 TAM IN SALES TARGET – 2022 $20,925,000 IN SALES 83,912 UNITS SOLD
  6. 6. 6 STRATEGIC + FINANCIAL PROJECTIONS HORIZONONE HORIZONTWO HORIZONTHREE Brand + Product Development Product Line Launch Geographic Expansion
  7. 7. 7 2020 2021 2022 H1H2H3 HORIZON ONE HORIZON TWO HORIZON THREE - Brand + product development - Wear testing - Marketing activation - Key REI store + .com activation - Targeted REI Launch (35) - Product Launch - Full REI Launch - Product Expansion TARGETOBJECTIVES MAR DEC JAN DEC JAN DEC Shoe Shelter Backpack Sleep system Shoe Update Umbrella Stakes Trekking Poles Bivy Tarp Tent STRATEGIC TIMELINE
  8. 8. 8 COSTS + PERFORMANCE
  9. 9. PRODUCT LINE
  10. 10. ROOMY TOE BOX Feel a wide toe box is important 10 83% WHAT ABOUT WEIGHT? 95% Prefer lightweight footwear
  11. 11. 11 ARROW PRODUCT FEATURES • Lightweight • IntegraiterTM • Durable • GritKnitTM • Fit/Comfort • Wide-Toe Box FOB MSRP $35.01 $160.00 GPM 78%
  12. 12. ARROWPOSITIONING 12 PREMIUM VALUE HEAVY LIGHT
  13. 13. 13 THE BIG THREE
  14. 14. 14 THE LEMOLO LONGHOUSE • Dyneema® composite fabrics • Water resistant two-way zipper • Line locks on all perimeter tie-outs • Dual peak vents that can open and close FOB MSRP $120.09 $500.00 GPM 76%
  15. 15. 15 THE LEMOLO PASEESIE • 950 Sustainable Down • 20º F (-6º C) temperature rating • 20” Drawstring and zipper to open/close footbox as needed • 19.18 Ounces FOB MSRP $65.89 $250.00 GPM 73.5%
  16. 16. THE LEMOLO LESAK 16 • 100% Waterproof Dyneema® composite fabrics • Hardline with Dyneema® shoulder straps with 3/8” closed cell foam and spacer mesh • Adjustable sternum strap with self- tensioning elastic FOB MSRP $65.12 $250.00 GPM 74%
  17. 17. HORIZON THREE AND BEYOND VLP 17 UL Umbrella UL Tent Stake UL Trekking Poles
  18. 18. BRANDPOSITIONING 18 PREMIUM VALUE HEAVY LIGHT
  19. 19. MARKETING PLAN
  20. 20. PRIMARY | ATTRACT Hike Your Own Hike SECONDARY | ENGAGE Go Further, Faster, and Leave Fewer Footprints TERTIARY | CONNECT 21 The Lemolo Arrow is the first shoe built for the specific needs of the long-distance hiking community: Lighter More Durable Better Fit Hike farther with less fatigue More miles, fewer replacements Room for long-term comfort
  21. 21. APRIL 2020 REI.com Hype FB & IG Traffic Driving Ads $3000 4/1 – 6/1/20 22 BRAND BUILDING + PREP MARCH – AUGUST 2020 ONLINE MARCH 2020 Brand Launch FB & IG Impression Ads $1000 Mar 20 JUNE 2020 REI.com Content Marketing FB & IG Traffic Driving Ads $3000 6/1 – 8/30/20 OFFLINE JUNE 2020 Purchase and decal-wrap Sprinter van for grassroots experiential marketing $40,000
  22. 22. 23 SOFT LAUNCH SEPTEMBER – DECEMBER 2020 ONLINE SEPTEMBER 2020 REI.com Preorders FB & IG Traffic Driving Ads $5000 9/20 – 12/20 Banner Ads Brand Awareness + Retargeting $7,200 9/20 – 12/20 OFFLINE SEPTEMBER 2020 - Local PNW Van Tour - PCT Days Sponsorship and Experience - $5,000 Sponsorship - $7,500 Event preparation & party planning - $2,000 Digital ad support (FB + IG) DECEMBER 2020 - Key REI Class Demos - $5,000 event costs - SoCal Van Activations REI Locations - $2,000 brand awareness (FB+IG) * *
  23. 23. 24 FULL LAUNCH JANUARY – APRIL 2021 ONLINE JANUARY 2021 Drive DTC Sales FB & IG Conversion Ads $10,000 1/21 – 4/21 PPC Ads High purchase- intent keywords $24,000 9/21 – 12/21 OFFLINE APRIL 2021 - NoBo Trail Angel Campaign - Van activation to follow largest concentration of hikers - Branded experiences to target consumers - $20,000 over 4 months: gear, gas, supplies - Deep market research JANUARY 2021 - Retail Fixtures - Attract, Engage, Connect Elements - $10,000
  24. 24. THANK YOU
  25. 25. 26 ORGANIZATIONAL STRUCTURE Juo Wei Chen Chief Commercial Officer Will Schuh Chief Executive Officer Marissa Herold Chief Product Officer Steve McQuaide Chief Marketing Officer Travis Hammond Chief Creative Officer
  26. 26. 27 MARKETING ASSETSMOBILE WEBSITE
  27. 27. 28 Primary Image Facebook Ad Instagram Ad GDN Mobile Leaderboard GDN Desktop Leaderboard Outside Buyer’s Guide Print Ad Google AdWords Ad MARKETING ASSETSDIGITAL ADS
  28. 28. PRODUCT FEATURES Durability Lightweight Roomy Toe Box Target Price Point: $175-200 29
  29. 29. POINTS OF DIFFERENCE First company to cater to distance hikers 2x Durability 30
  30. 30. 31 THE LEMOLO ARROW
  31. 31. 32 FUNDING RECAP Angel Round • $200,000 • April 2019 ü Initial funding to launch brand ü Demonstrate revenue, support final development costs ü Domestic retail extension (REI), product line extension Kickstarter • $50,000 Goal • April 2019 Launch SEED Round • $1M - Safe • January 2020 • $100K - Revenue Run Rate Series A Round • $7M - Equity • April 2022 • $750k - Revenue Run Rate ü Support Lemolo until profitable growth phase/International expansion
  32. 32. Argentina & Chile
  33. 33. 34 LATAM EXPANSION ANALYSIS CONSUMER PRODUCT OPERATIONSMARKETPLACE
  34. 34. • President Mauricio Macri • Protectionist • Highest trade-waited import duties 35 TRIAD OVERVIEW • Devaluation of ARS • 45% inflation rate • 60% interest rate • FX: 1 ARS = $0.027 USD • 1-for-1 import to local production • Open Economy • FTA’s with US, EU, and emerging Asian markets • 3.1% inflation rate • 2.75% interest rate • FX: 1 CLP = $0.0015 USD • Sustainability-focused CHILEARGENTINA
  35. 35. 36 CASUAL ENTHUSIAST OBSESSIVE $67M $215 MILLION IN SALES TARGET – 2023 $5,100,000IN SALES 32,400UNITS SOLD Total sales of hiking shoes in 2017
  36. 36. 37 CHILEAN CONSUMER Age: 31 Location: Santiago, Chile Occupation: Financial Analyst Income: $30M CLP ($45,000 USD) Marital Status: Married Children: None Notes: Price is important but so is quality and technology, connected through mobile CRISTOBAL
  37. 37. 38 TOURISM CONSUMER Age: 61 & 59 Location: London, England Occupation: CPA & Grandmother Income: £115,000 GPB ($145,000 USD) Marital Status: Married Children: Two, 3 grandchildren Notes: Disposable income, values quality and convenience, conservationists PAUL and SUSAN
  38. 38. 39 ARGENTINE CONSUMER Age: 28 Location: Buenos Aires, Argentina Occupation: UX Designer Income: $1,800,000 ARS ($49,800 USD) Marital Status: Unmarried Education: Undergraduate degree Children: None Notes: Wants value for money, non- loyal, research before buying. LUCA
  39. 39. 40 LAUNCH STRATEGY Pricing Strategy Surgical Pricing MAP Policy Arrow Distribution CALZADOS BLANCO / KOMAX 30% wholesale discount Targeting high income locals + foreign adventure tourists $ Take-down Licensing Calzados Blanco SA $300k licensing fee + 7% Royalties Local manufacturing Marketing Strategy Differentiated strategy to address specific market segments
  40. 40. 41 * CHILE DISTRIBUTION *** ARGENTINA $180 USD/ $120,888 CLP $200 USD/ $7,567 ARS $100 USD/ $3,784 ARS ARROW COÑARIPE IMPORT DUTY 6% 35% DISTRIBUTOR
  41. 41. 42 CHILE FORECASTS ARGENTINA $32.86 UNITS WHOLESALE REVENUE LANDED ARROW ARROW COÑARIPE $46.22 Licensed $55.86 $78.57 Licensed 18,942 3,284 10,210 $1,058,000 $258,000 $336,000* *$300,000 licensing fee + 7% on units sold
  42. 42. ARGENTINA “Discubre La Madre Patria, discubre a tu mismo.” (Discover the motherland, discover yourself) CHILE “Somos juntos, somos la tierra” (We are one, we are the land) LOCALIZED MARKETING MESSAGES
  43. 43. ARGENTINA Web-based advertising TV spots CHILE Web-based advertising Tourism/travel magazines LOCALIZED MARKETING CHANNELS
  44. 44. Lemolo Income Statement Jan 2019 - Dec 2023 2019 2020 2021 2022 2023 Revenue Argentina - Scandinavian - Arrow $0 $0 $0 $ 30 014 $ 258 024 Argentina - Scandinavian - Conaripe $0 $0 $0 $ 8 260 $ 71 470 DTT Revenue $0 $ 26 960 $ 34 160 $ 43 200 $ 54 800 LemoloOutdoors.com $ 7 200 $ 87 660 $ 274 320 $ 860 760 $ 2700 360 Van Retail $ 18 720 $ 137 700 $ 135 000 $ 135 000 $0 KickStarter Revenue $ 76 680 $0 $0 $0 $0 Specialty Retail Revenue $0 $ 178 720 $ 581 280 $ 1844 160 $ 5808 000 Chile - Komax - Arrow $0 $0 $0 $ 187 578 $ 1058 100 Argentina Licensing Fee - Scandinavian$0 $0 $0 $0 $ 380 004 Total Sales $ 102 600 $ 431 040 $ 1024 760 $ 3108 972 $ 10330 758 (Less) Transaction Fees $ 778 $ 6 761 $ 12 280 $ 29 873 $ 81 011 Net Sales $ 101 822 $ 424 279 $ 1012 480 $ 3079 099 $ 10249 747 Cost of Revenue $0 $0 $0 $0 $0 Cost Per Unit - Arrow Chile $0 $0 $0 $ 174 355 $ 759 329 Cost Per Unit - Arrow Argentina $0 $0 $0 $ 28 749 $ 199 624 Cost Per Unit Sold $ 31 465 $ 196 757 $ 406 193 $ 1094 114 $ 3335 972 Total Cost of Revenue $ 31 465 $ 196 757 $ 406 193 $ 1297 218 $ 4294 925 Gross Income $ 70 357 $ 227 522 $ 606 287 $ 1781 881 $ 5954 822 Operating Expenses $0 $0 $0 $0 $0 Website Contracting - Hourly $ 6 300 $0 $0 $0 $0 Conaripe Developer - Hourly $0 $0 $ 25 000 $0 $0 New Hires $0 $0 $0 $ 400 030 $ 400 030 Salaries $ 65 400 $ 261 600 $ 261 600 $ 261 600 $ 261 600 Salary Pay Raise - 2022 $0 $0 $0 $ 405 000 $ 405 000 Increasing Marketing Spend $0 $0 $0 $ 150 823 $ 488 319 South America Market Development $0 $0 $0 $ 421 040 $ 631 560 Arrow Development $ 50 000 $0 $0 $0 $0 Conaripe Development Cost $0 $0 $ 100 000 $0 $0 WeWork Space Rental $ 3 500 $ 5 000 $0 $0 $0 Argentina - Blanco - Arrow $0 $0 $0 $ 10 000 $ 24 000 Argentina - Blanco - Conaripe $0 $0 $0 $ 5 000 $ 12 000 Direct-to-Trail $0 $ 12 000 $ 12 000 $ 12 000 $ 12 000 Van Retail - 2020 $0 $ 20 000 $0 $0 $0 LemoloOutdoors.com $ 5 000 $ 30 000 $ 30 000 $ 30 000 $ 30 000 Van Retail - 2019 $ 16 000 $0 $0 $0 $0 KickStarter $ 6 000 $0 $0 $0 $0 Specialty Retail - US $0 $ 60 000 $ 60 000 $ 60 000 $ 60 000 Van Retail - 2021 $0 $0 $ 15 000 $0 $0 Chile - Komax - Arrow $0 $0 $0 $ 10 000 $ 24 000 Van Retail - 2022 $0 $0 $0 $ 15 000 $0 Total Operating Expenses $ 152 200 $ 388 600 $ 503 600 $ 1780 493 $ 2348 509 EBITDA $ 81 843 $ 161 078 $ 102 687 $ 1 387 $ 3606 313 Interest Expense $0 $0 $0 $0 $0 Depreciation Expense $ 3 000 $ 2 163 $ 2 150 $ 2 150 $ 2 150 Income Tax $ 8 334 $ 2 115 $ 45 375 $ 36 667 $ 756 591 Property Tax $0 $ 1 413 $ 5 650 $ 5 650 $ 5 650 Net Income $ 93 177 $ 166 768 $ 53 813 $ 38 779 $ 2846 222

×