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