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BUDDIES Men’s Body Powder

Interviews since last class: 11Interviews to date: 69MVP samples out: 14

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BuddiesTEAM MEMBERS Phil Coleman Marco Casas Pat SchleckDegree program / Background

EMBA Global / BS, Business Management

EMBA Global / BA, Political Science

EMBA Global / PharmD, Pharmacy

LinkedIn profile Phil’s LinkedIn profile Marco’s LinkedIn profile Pat’s LinkedIn profile

Are you the subject matter expert for this team

Yes Yes Yes

Likely role within team (see the 4 descriptions below)

Hustler Picker Designer

Something interesting about me

Marketing genius behind the AOL free-

CD.

Almost joined the CIA after college.

Habla español; lives in Switzerland.

Buddies – Men’s Body PowderOne Team, One Dream…

What we thought on day one…

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Buddies – Men’s Body Powder

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Key Partners

- Manufacturer- Web developer- Natural product

suppliers- Social impact.

Shower to the people.

- Brand ambassadors

Key Activities

- Production- Marketing &

Advertising- E-commerce

Value Propositions

Talc-free powder designed to provide odor and sweat control for the groin area. All natural. Made in USA. Social impact.

After shower comfort. Jock itch, rash, friction relief for all seasons.

Problem: sweat, rashes, chafing, odorNeed: comfort, confidence, rewarding fresh feeling,

Sub-Hypothesis:-Unisex -Babies / children (little buddies)-Anti-rash from diaper

Customer Relationships

- Social Media & youtube- Google ad-words- Road show

- Contracts (b2b)- Subscription- Rewards

- More products

Customer Segments

- Millennial urban hygiene conscious dudes

- Dudes in warm conditions (construction, kitchen, athletes)

- Little buddies- Women

Key Resources

- Finance- Storage of inventory- Patents

Channels

- Virtual: Website for direct sale. Potentially online retailers.

- Physical: Barber shops, fashion retail, fitness centers,

- All natural stores- Pharmacies &

grocery

Cost Structure

- Variable: manufacturing, marketing & advertising, - storage, people,

Revenue Streams

- Direct sale- B2B- Subscription?

http://www.businessmodelgeneration.com

Buddies – Men’s Body PowderBusiness Model Canvas – Day 1:

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• Total men’s grooming market at $9.3bn: 2015 growth of 4% (Source: Euromonitor)

• Bath & Shower (incl. body powders) is a market of $925m and grew by 5.5% in 2015. (Source:

Euromonitor) • Deodorant (comparable market) represents $1.7bn market with growth of 11.4% in 2015.

(Source: Euromonitor)

Trends: 1) Male grooming projected to continue growing at 5.5%/yr through 2020 (Source: Technavio)

2) Natural & Organic growing by 10% YoY (source: GCI)

3) CSR: 51% of consumers globally say grooming/beauty products purchases influenced by how

environmentally friendly/socially responsible the brand is. (source: GCI)

4) Online sales has seen significant growth. In 2015, DSC had 3.5m subscribers and sales of

$153m. (Source: Euromonitor)

Buddies – Men’s Body PowderThe Opportunity – Market & Trends

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Men’s Powder Market Today Buddies – Men’s Body Powder

What we learned days 2-4…

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Buddies – Men’s Body Powder

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• Looked at “need creation” case studies: toothpaste & Feebreze (see picture): “positioned as the reward: the nice smell that occurs at the end of a cleaning routine.” (Charles Duhigg, The Power of Habit. 2012)

• For Febreeze:

Buddies – Men’s Body PowderFrom “nice to have” to “got to have”:

In Buddies case, routine => shower

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• Travis Peterson • Age: 29• Annual income: $105,000• Profession: Digital media copywriter • Rides his bike to work (for which he uses body powder for sweat absorption) • Sweetgreen gold status; craft beer aficionado/home brewer• Favorite TV channel: Viceland (show Weediquette)• Shops at Everlane, Warby Parker, Bonobos• Donates to: Planned Parenthood, 350.org• Regular grooming products: hair pomade, beard oil, natural shower gel

Buddies – Men’s Body PowderTarget Customer:

Source: Experian.com

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• Branding:- Brand Identity (our vision) vs. Image (customer associations) must be fully in

sync. Trademark/Brand Name/Packaging/Website should be tested to make sure associations = identity. i.e colors associated with all-natural.

- Brands take a lot to build and are extremely hard to change (i.e. Axe/ Dove campaigns).

- Initial customer value interviews show Brand & Functionality much more important than price within $10 range.

• Channels:- Amazon charges 10-20% commission per sale or 25-35% “all-in” for pick, pack,

and ship. Amazon shipping 50% cheaper than DIY. Competitors confirmed that majority of sales coming from amazon vs. direct web sales.

• Intellectual Property:- Patents: We thought we might need a patent for the formula, however it is not

actually worth the $ as ingredients are listed on package and competitors would only have to tweak 1 ingredient by 1% in order to avoid infringement.

- Trademarks on brand will be our key IP to acquire.

Buddies – Men’s Body PowderKey Lessons Learned Day 4-5

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• Channels:- Big retailers will take 40-60% SRP, want many SKUs & exclusivity,

would also include paying distributor (truck etc for delivery), and also tend to push back on pricing (Walmart).

- Women still doing majority of shopping at large brick & mortar.

• Manufacturing:- Manufacturers charge A LOT for custom packaging; not worth it without huge

need from customer.

• Get Strategy:- Adwords: Great for “problem” customers while facebook ads more relevant

for “need” customers.- Trademark:

Buddies – Men’s Body PowderKey Lessons Learned Days 1-4

Where we ended today…

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Buddies – Men’s Body Powder

Key Partners

- Manufacturers

- Web developer

- Natural product suppliers

- Social impact. Shower to the people

- Brand ambassadors

- Brand designers

- Music festivals (pop-up stands)

Key Activities

- Marketing & Advertising

- Production

- E-commerce

Value Propositions

Talc-free powder designed to provide odor and sweat control for the groin area. All natural. Made in USA. Social impact.

After shower comfort. Jock itch, rash, friction relief for all seasons.

Solving a problem: sweat, rashes, chafing, odor

Fulfilling a need: comfort, confidence, rewarding fresh feeling,

Innovative applicator?

Customer RelationshipsGet:- Social Media & youtube- Google ad-words- Road show- Early adopters / InfluencersKeep:- Contracts (b2b)- Subscription- RewardsGrow:- More products

Customer Segments

- Millennial urban hygiene conscious dudes

- Dudes in warm conditions (construction, kitchen, athletes)

- Little buddies

- Women Key Resources

- Finance

- Storage of inventory

- Patents; trademarks

Channels

- Virtual: Website for direct sale, and Amazon

- Potentially, online retailers.- Physical: Barber shops,

fashion retail, fitness centers,

- All-natural stores- LOHAS Grocery (Whole

Foods)- Pharmacies

Cost Structure

- Variable: manufacturing, marketing & advertising

- Fixed: storage, people

Revenue Streams

- Direct sale

- B2B

- Subscription?

http://www.businessmodelgeneration.com

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Buddies – Men’s Body PowderBusiness Canvas Model – Day 5

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• Continued interviews: We have a number of interviews set up over the next few weeks with competitors, cpg start-ups, and field experts.

• Branding: Test & finalize branding activities to ensure image/identity fit.. then website, commercials, etc.

• Production: Select manufacturer for initial production.• Roll-out: Kickstarter end of customer discovery & must be ready to meet potential demand.

Buddies – Men’s Body PowderNext Steps