tespo sxsw-07-22-15

LIVE SIMPLY. LIVE WELL.

SXSW 2016

INDUSTRY PROBLEM SOLUTION CONSUMER BRAND STRATEGY BUSINESS MODEL FUTURE

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ABOUTLifeBoost

Driven by the passion of our founders, LifeBoost was formed in 2013 for the purpose of developing a patented in-home nutritional health maintenance system designed to provide consumers with the purest, most effective vitamin and nutritional supplement formulations available.

Our goal is to create a community of health conscious individuals that strive to live their best

For this community, we created tespo

We are launching in 2015, and are proud to say…

Background

Tespo is truly unique, with no other products in the health & wellness category available on the market today.


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WHAT WE DO

Premium products in an easy to use system that promotes daily compliance and superior absorption

Truly great nutritional supplements in an innovative package — free of harmful fillers, binding agents and inactive ingredients like sugars, artificial flavors, colors, etc.

Shipped directly to the consumer each and every month — Never having to remember to consumer or purchase your vitamins means never having the opportunity to forget

Initial cost of in-home Tespo dispenser with monthly subscription program for Tespo discs — subscription plans with considerations for easily canceling the program at any time

Driven by transparency, customer experience and selfless action — education and research driven philosophy providing agnostic, unbiased health & wellness support

EFFORTLESS SIMPLICITY PURE INGREDIENTS BALANCED NUTRITION LIVE PILL FREE


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HOW TESPO WORKS

A simple and efficient approach to daily vitamin consumption


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TESPO DISPENSER DETAIL

Simplicity driven innovation


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PHILOSOPHYPurpose + Mission

We’re fundamentally driven by a desire to help all people lead simple, balanced and healthy lives.

Above all, we understand humanitarian values and consider people at the heart of everything we do.

We believe in the principles of Knowledge, Transparency, Trust and Honesty

We understand that everyone is connected and our actions impact those within the global community

We are driven by the philosophy Give to Receive and consider the greater community impact before individual desires

We’re dedicated to providing reputable opinions and agnostic viewpoints that allow the consumer to make their own health decisions as opposed to being told what’s “best”

We believe that true success in innovation is achieved only when monetary profit is equal to mutual satisfaction and maximum communal benefit

Tespo exists to provide all people a quality-

driven health experience through greater

awareness, empathetic /thoughtful decision

making and via innovative products centered

around a balanced and healthful way of life.

Overall, we place the needs of our consumer at

the heart of everything we do.

Mission Principles


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Research and relevant statistics to illustrate the market opportunity within the Vitamin and Supplement industry

INDUSTRY


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INDUSTRYInforming Formula Decisions

This statistic depicts the most popular types of dietary supplements among U.S. adults. The statistic is based on a survey conducted in August 2014. Almost all adult supplement users surveyed took vitamins and minerals. The nutritional supplement industry has seen a large growth in the market, especially in protein supplements and vitamins.

0%

25%

50%

75%

100%

Vitamins + Minerals Specialty Supplements Herbals + Botanicals Sports NutriKon

19%26%

43%

97%

Most Popular Supplement Types Among U.S. Adults [in 2014]

Highest Market Share Nearly all users of VMS consume Vitamins and Minerals

MulKvitamin

Vitamin D

Calcium

Vitamin C

Vitamin B Complex

0% 20% 40% 60% 80%

21%

24%

24%

30%

75%

Top 5 Types of VMS Among U.S. Adults [in 2014]

Importance of Multivitamins Of the Vitamin users — Multivitamins serve the majority

SOURCE: Nutrition Business Journal: “Direct to Consumer Selling in the Nutrition Industry Report” 2014.

Vitamins and minerals are the leading selling segment with multivitamins leading both sales and consumer preference


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INDUSTRYInforming Formula Decisions

Higher Education A College Degree indicates a slightly higher propensity to consume VMS products

Female

Has College Degree

18-‐34 years

EducaKon Level

Gender

Age Group

0% 75% 150% 225%

74%66%

65%

67%

65%

71%

72%

Demographic Characteristics U.S. Adults [in 2014]

Male

No College Degree

35-‐54 years 55+ years

Gender Data suggests a slightly higher receptivity to VMS products with Female VMS consumers

Age Group The aging “Baby Boomers” demonstrate a greater usage percentage of VMS products relative to younger users

Nearly everyone consumes vitamins and supplements — regardless of age, gender or education


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INDUSTRYDirect-to-Consumer Sales

SOURCE: Nutrition Business Journal: “Direct to Consumer Selling in the Nutrition Industry Report” 2014.

Internet Leads Growth Internet continues to demonstrate double-digit growth with a YoY Growth Rate of 15.2% in 2013 - this steady double-digit growth has caused the channel to grow by thirteen-fold from 1999 - 2013

0

3,500

7,000

10,500

14,000

2007 2010 2013

Network MarketingPractitionerInternetMail/DRTV/Radio

Supplement Direct Sales by Channel in Mil. USD [2007 - 2013]

Internet leads Direct-to-Consumer Sales with consistent annual double-digit growth


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INDUSTRYAddressing the Market Perceptions

0%

12.5%

25%

37.5%

50%

NutriKonal Deficiency Improve Overall Health Targeted Benefit Convenience Affordable

5%

9%9%

25%

45%

2%

7%

21%

41%41%

Advantages of Nutritional Supplements Comparing Consumer/Physician Opinion

The tespo Response Our product places an emphasis on Quality, Convenience and Affordability addressing

the top needs expressed by both Physicians and Consumers

SOURCE: AccentHealth “Vitamins, Minerals & Supplements: The Role of the Physician” October 2014.

Examining the preferences of both Consumers and Physicians related to VMS consumption

Disadvantages of Nutritional Supplements Comparing Consumer/Physician Opinion

0%

10%

20%

30%

40%

Misuse/Abuse Inefficacy Product CharacterisKcs Unnecessary Adverse Effects Price Untrue Claims

13%

18%

12%

17%

4%

19%

36%

11%

7%10%

12%15%

19%

23%

The tespo Response Technologically-driven organization, an emphasis on effectiveness and an avoidance around making

outrageous claims positions tespo in direct response to the stated concerns


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INDUSTRYAligning with Industry Experts

Driving Awareness Integrating with partners (lifestyle health & wellness facilities), Natural Health Practitioners and Physicians

provides access to tespo through trusted authorities

SOURCE: AccentHealth “Vitamins, Minerals & Supplements: The Role of the Physician” October 2014.

Providing the consumer with the opportunity to taste, touch and feel

21% of physicians surveyed have VMS samples on-hand

Among physicians with access

to samples, 95% distribute

23% of consumers surveyed indicated having received a product sample, coupon, or product literature

Of those who received the above,

74% purchased the product as a result

Influenced by Samples65%

Influenced by Coupons57%

Influenced by Literature37%


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Qualifying the needs of the market and illustrating the market potential for Tespo

PROBLEM STATEMENT


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PROBLEM STATEMENTPositioning tespo’s Consumer Value

The current Industry is complicated by… 1. Lack of Innovation: No fundamental change for decades

2. Messaging Creates Confusion: Industry embraces disambiguation

3. No Trusted Authority: Varied and opposite viewpoints

4. Limited Differentiation: tespo improves compliance which is a significant industry issue

5. Pushes Pills: tespo makes it simple provide supplements to the family – “kids love to use it”

The current Consumer is seeking… 1. Purity: A consumer friendly nutrient delivery system

2. Honesty + Transparency: Liquid supplements provide better absorption – “get more for your money”

3. Reliable Information: tespo improves compliance which is a significant industry issue

4. Convenience: Lack of excipients will be a differentiating factor – “only what your body needs”

5. Technological Innovation: tespo makes it simple provide supplements to the family – “kids love to use it”

6. A simple, effective and convenient way to live a balanced life…

Industry consumers crave innovation and tech-driven solutions as consumer trends position a need for purity, convenience, transparency and customization

A demonstrated history of predatory marketing…


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COMPETITIVE DIFFERENTIATIONTrust Driven Consumer-centered Approach

Low barriers to entry coupled with a massive market size lead to limited, superficial methods of health focused product differentiation

VITAMIN INDUSTRY COMPETITIVE STRATEGIES

MAKING HEALTH CLAIMS

MEGA-DOSE FORMULAS “TRENDY” INGREDIENTS

LOWER PRICES

MULTILEVEL MARKETING


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COMPETITIVE DIFFERENTIATIONTrust Driven Consumer-centered Approach

Consumers are seeking a better way to live their best — introducing tespo

Key Factors influencing the tespo solution: 1. Pill Fatigue: a consumer-focused nutrient delivery system embodying No More Pills

2. Bio-availability: on-demand, liquid supplements providing better absorption – emphasizing value

3. Only active ingredients: lack of harmful additives will be a differentiating factor – delivering only what your body needs

4. Compliance: tespo makes daily use simple, efficient and effective - helping to build lifelong healthy habits

5. Convenience: tespo makes it easy and efficient to provide supplements for people of any age – as simple as pushing a single button

6. Mistrust and Predatory Marketing: trust, transparency and honesty drive tespo’s messaging

7. Innovative Product Design: consumer focused innovation x modern and thoughtful product formulations

Value Proposition and Messaging will change by demographic Overall, tespo is a trusted, efficient & effective, safe & convenient solution for consumers seeking premium ingredients in an organized, simple delivery system. Compliance, ease of use and user experience will be critical factors to enhancing our customer’s user experience and creating lasting value for their lives. Above all, staying true to our mission and philosophical brand values allow us to remain conscious of the collective tespo community and their ever-changing needs.


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Responding to consumer latent needs - tespo delivers a meaningful solution

SOLUTION


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OUR APPROACHInnovative Product + Consumer Direct

tespo dispenser Organized Vitamin Delivery System

Provides maximum efficiency and reminds consumers

Compliance with daily Vitamin consumption

Safe and effective

Smart design provides daily 0.5oz — 1.5oz dosage

Liquid Vitamin Product

Easy consumption

Higher Bioavailability

Mix with beverage of choice

tespo discs Convenient, highly pure daily vitamin

Contains only the active ingredient

Only what your body needs — no fillers or binders

Monthly Discs — 31-daily servings

Subscription Program — delivered to your door

Scheduled for added convenience

Recyclable and Sustainable Production

Enticing, fun shape and colors

tespo is simple, elegant and designed to make life easier


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PRODUCT EVOLUTIONConvenience Driven Product Delivery Methods

Todays consumer responds to custom products and convenient on-demand delivery systems

Greater Choice + Flexibility Added Convenience

Organized Individual Serving Convenient Delivery Method

Innovation-driven Convenience Technology meets Health Products

Lower Cost Environmental Sustainable

Only Active Ingredient More “Natural” Formula

Superior Product Formulation Easier Compliance + Organization

To each, their own… Every user within the home is able to make their own products, affording greater choice to a user group

On-the-go usage… Smaller containers allow for the user to consumer anywhere - no longer focused on bulk

Custom convenience… Access to only what you need - designed to make compliance simple, easy and efficient


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TESPOValue Proposition

transparency + trust

efficiency + economics

safety + subscription

purity of ingredients + absorption

organized system

community

Resources, consumer education, full disclosure and visibility of the complete value chain and product lifecycle

High quality product, delivered direct to consumer and priced at the middle of the market

Emphasis on optimal ingredient sourcing and the ease of compliance through at-home delivery

Highly bioavailable product with an emphasis on innovative ingredient delivery methods insure maximum benefit

Device serves to simplify and keep VMS consumption top of mind for the consumer and households

Lifestyle branding creates a relationship with consumers and supports total health & wellness


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BRAND FORMULATION STRATEGYCare About What’s Inside

Our brand formulas are fundamentally based in science with no unnecessary ingredients

Ingredients (SOURCE LIST): Magnesium Citrate, Citric Acid, Natural Flavor, Polydextrose, Ascorbic Acid (Vitamin C), Stevia, Zinc Citrate, D-‐

Alpha Tocopheryl Acetate (Vitamin E), Niacinamide (Vitamin B3), Manganese Gluconate, Calcium Pantothenate (Vitamin B5), L-‐

Selenomethionine, Lutein 5% Encapsulated, Cholecalciferol (Vitamin D3), Beta Carotene, Coenzyme Q10, Vitamin A Palmitate, Pyridoxine

Hydrochloride (Vitamin B6), Thiamine Hydrochloride (Vitamin B1), Zeaxanthin 5%, Riboflavin (Vitamin B2), Phylloquinone (Vitamin K), Boron

Citrate, Copper Gluconate, Chromium Picolinate, Folic Acid, Biotin, Potassium Iodide, Sodium Molybdate, Vitamin B-‐12 (As Cyanocobalamin).

A"en%on to Detail in Sourcing Ingredients

No Addi.ves or Binding Agents ONLY subtle flavoring

RDA: Though>ul Considera.ons without MEGA Dosing

Ingredients that are difficult for the body to fully absorb are raised above RDA; while ingredients

with potential for over consumption are slightly lowered.

Premium Ingredient Addi.ons for Total Formula Quality

Premium ingredients added to the formula to provide a complete Men’s Formula without

compromising quality or deceptive labeling/marketing.


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FORMULASStart with Basic

Launching with fewer products with a emphasis on quality — motivated to crawl before we walk

Focus

FOCUS

ENERGY

WOMENS

MENS

CHILDRENS SPORT


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Evaluation of the Target Market for tespo products

CONSUMER


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UNDERSTANDING OUR CONSUMERDemographic Personas

* SOURCE: Independent Survey of Consumer VMS Preferences and Willingness to Purchase. JUNE 2014

ACTIVE + HEALTH CONSCIOUSTECH SAVVY EARLY ADOPTERSBUSY CARETAKERS

PERSONAS Initial Targets

YOUNG AT HEART

54% of men 47% of women surveyed indicated an intent to purchase the proposed tespo device.*


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UNDERSTANDING OUR CONSUMERDemographic Personas | Details

PERS

ONA

S

Aging with Health and GraceWith a high income and a willingness to pay a premium for innovative health alternatives, the older crowd stands to benefit from an approach where quality is the

differentiator and the delivery method is “easier to swallow”. No longer is the older generation relegated to the Nursing Home, these aging consumers are often more active than their younger opposites — and with activity naturally comes an emphasis on Dietary Health and Longevity. Purchase decisions rest on value, efficacy, associated

experiential qualities and perception of advantages or benefits with products.

Motivated to lead a Healthy Life and Share with their NetworkDriven by a desire to express their opinions through lifestyle choices such as eating Organic foods and achieving mindfully driven fitness (Yoga, Pilates). Focused on understanding and incorporating healthy lifestyle choices and sharing their experience passionately with their networks, both friends and family. Purchase decisions

consider the environment and sustainability, an understanding of the consumer’s global impact and driven my both independent research and trusted opinion.

Young + Aspirational Lifestyle DrivenFor these individuals, leading a modern lifestyle balancing innovation and cost/benefit analysis is crucial. Driven by a desire to be an authority in the areas of technological

innovation - these consumers drive modern innovations such as Uber and new product subscription/awareness programs like Birchbox, Frank & Oak and Trunk Club. More driven by style and brand philosophy, health and wellness considerations are most relevant when they respond to the aforementioned topics. Active on social and

digital media, these consumers purchase new and innovative products and consider their buying habits to be a definition of their personal lifestyle.

Active Lifestyle with a Modern ApproachAs the head of household, these individuals strive to balance their busy lives seeking convenient solutions that strike a balance between necessity and health, or benefit. Schedule driven, these consumers approach every day seeking greater organization, flexibility (quick fitness options like a Pilates class) and need a solution that makes their life easier while placing a great importance on quality (Blue Apron). Purchase decisions must be driven by simplicity - yet, many in this group pride themselves on

their lifestyle choices and share their strategies openly through social channels and Word-of-Mouth throughout their personal networks, friends and family.

BUSY CARETAKERS

TECH SAVVY

ACTIVE + HOLISTIC

YOUNG AT HEART

Our proposed Target Consumer Personas are outlined below:


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How tespo will plan, set and reach brand goals during the initial year

COMMERCIAL BRAND STRATEGY


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COMMERCIAL APPLICATIONVitamins as the foundation for a complete health & wellness lifestyle

tespo Commercial Application is designed for improved frequency, efficiency and sustainability

commercial partnership support example

Custom molded, recyclable cups designed to fit neatly inside the tespo glass.

Matching tespo disc colors, these cups latch onto the mixing glass to ensure a precise

formula with each serving.

Simple, branded cup holder to keep things organized.


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tespo is focused on two distinct markets — Complete formula line for Consumer Direct and enhancement formulas for Commercial Partnerships

HEALTH CLUBS & PROFESSIONAL ENVIRONMENTS

Men’s Multivitamin

Women’s Multivitamin

Children’s Multivitamin FocusEnergy

Commercial Offerings Caffeine free Focus and a caffeine enriched Energy

In Home Offerings Daily blends of essential vitamins

Sport

SILENT GENERATIONBABY BOOMERSGENERATION XMILLENNIALS


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tespo is focused on two distinct markets — Complete formula line for Consumer Direct and enhancement formulas for Commercial Partnerships

LOCATION OWNER BENEFITS 1. Ambassador Program: Earn a lucrative stream of new revenue from in home purchases from affiliates members

2. Innovative: Remain a unique forward thinking club/studio/gym to new and current members

3. Manageable: Zero to minimum maintenance from onside employees

4. Sustainable: Tespo offers a simple recycling program for returning monthly discs

5. Customizable: Brand the Tespo machine and coinciding discs with your organization’s logos and colors

6. Inventory Management: Reduce counter space, shelf space, closet space etc. with smart tracking, door to door delivery

MEMBERS BENEFIT 1. Focus: Concentrate & outperform on daily routines

2. Morale: Provide enjoyable liquid vitamins to improve members health

3. Affiliate Program: Earn revenue by becoming an Affiliate after 3 months of owners by purchasing and selling in-home Tespo systems

4. Cost: Pay $1-$3 for a pre-work out 4oz. shot

5. Size: Tespo shots provide less liquid consumption compared to pre workout coffee, soda, sports or energy drink

6. Dispenser: Familiar with their Tespo home system, customers will trust a formula that provides them antioxidants and energy in a disc similar to their Multivitamin


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BUSINESS MODELThe following sections outlines the business model and three year forecast. Management has

developed the forecast using validated quotes for key cost components such as dispenser, disks, formulas, fulfillment, etc.

The revenue assumptions were developed using competitive product analysis, focus group studies and on-line surveys. Some of the key findings are provided in the following pages.


Positioned as a Premium Product focused on consumer value

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MARKET RECEPTIVITYSurvey Findings in Support of tespo

24% of females have difficulty swallowing pills, yet only 14% utilize non-pill form of supplements such as powders or liquid

36% of females and 41% of males pay in excess of $25 per month for their supplements

77% of the females and 80% of the male respondents did not know that liquid is more bioavailable than pills/tablets

47% of the female and 54% of the male respondents indicated they were “highly likely or very likely” to purchase a dispenser unit

26% of the respondents would be willing to pay more than $75 for the dispenser

76%

10%

14%

Difficulty Consuming Pills With 24%.of Females expressing concern, only 14%

utilize alternatives

24% of females have difficulty swallowing pills, yet only 14% utilize non-pill form of supplements such as powders or liquid

64%

36%

59%

41%

Willingness to Pay High percentages of both gender able and willing to

purchase tespo products

Women Men

36% of females and 41% of males pay in excess of $25 per month for their supplements

Developed using comparative product analysis, surveys and focus group results, the tespo pricing strategy is driven by the following key findings:


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FUTUREEvaluation of future potential for tespo as a connected home device

integrated with the user’s technological lifestyle


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CONVERGENCEIndustry Trends Support Customized Innovations

CUSTOMIZED Individual User-specific

Vitamin Servings

EXPANSION OF MARKETS Single-serving dispensers recently entered the Baby Formula marketSUBSCRIPTION PROGRAM

Numerous products are now delivered to consumer’s doors monthly adding

convenience

Appropriately positioned to capitalize on the convergence of technology and customization present in the VMS and pharmaceutical industries


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PLANNING THE FUTUREInnovation is Critical

We will have the ability leverage our hardware with wifi capabilities and software innovation to connect consumers electronically with LifeBoost

As we release the first version of tespo, we’re looking to create an even more positive impact on our consumer’s daily life

Our next iteration gives consumers a unique opportunity to select “custom” formulations produced specific to their needs and individual requirements.

By leveraging mobile applications, our next generation dispenser is designed to monitor and communicate with mobile devices - providing information related to usage, timed dosages, health goals monitoring and ideally nutritional deficiency analytics.

The pharmaceutical industry applications present a significant opportunity for an intelligent tespo system - able to assist in monitoring, dosage, etc. in a single tool.

focused on creating a more significant impact on individual lives


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PLANNING THE FUTUREConvergence of Technology, Convenience and Consumer Customization

COMPLIANCE AWARENESS

OF USE

tespo Nutrition

Awareness

GOALS Monitor Progress

INTERNET Connectivity


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CONTACT INFOLifeBoost

Justin Gauvin Head of Tespo Commercial System & Strategic Partnerships

(339) 222-1440

[email protected]

Be one of the first exclusive users of Tespo, we appreciate your feedback, contact us anytime

Tespo wants to be apart of your team, this is a WIN|WIN system that can benefit everyone

GetTespo.com

mailto:[email protected]?subject=

http://GetTespo.com

CARE ABOUT WHATS INSIDE

tespo sxsw-07-22-15

Health & Medicine

tespo dispenser

maximumcommunalbenefit

mission principles

principles of knowledge

greater awareness

empathetic thoughtful

mutual satisfaction

balanc aboveall