Nautique2Dated xx/xx/xxxx
1. Executive Summary2. Elevator Pitch on what we do (our value proposition)3. Market and Opportunity4. What problem do we solve (customer needs)5. How do we solve it : our products / solutions 6. Sales & Marketing: how do we sell 7. Channels to market (partners, direct, agents)8. Our commercial model (how we make money) 9. Competitors and potential obstacles 10.The team to achieve this11.The financials to fund it12.Operations to support this13.Project Plan for implementation14.Core Assumptions and Key Metrics (KPI’s)
Nautique develops and sells a rage of top quality male cosmetics, branded as an outdoor sports lifestyle product, sold at an affordable price and accessible in main stream retail stores throughout Europe
Nautique will be the leading male cosmetics brand in Europe, based on quality and price
The Global market for male cosmetics is €XX billionUSA €XX b, Europe €XX b, ROW €XX b
The market is growing at a rate of XX% paTop 10 brands account for xx%, non branded xx%,
gap in mid market rage of branded cosmeticsNautique currently have XX% of Irish & UK market,
based on this they expect XX% of European MarketSell through major grocery and Pharmacy retailers
who represent XX% of all cosmetics sold using key distributors
Sales of Nautique cosmetics increased from 0 to XXk in XXX retail store in Ireland and UK currently represent xx% of male cosmetics with three products only (aftershave, shampoo, moisturiser)
Males want good quality cosmetics at an affordable price with good brand image (market growing)
Retailers want high margin mail cosmetics that are well branded and good quality so repeatable business
Nautique produce better quality male cosmetics at half the price of top brands with cool outdoor sports brand
Retailers make high margins, consumers get quality product at lower price and enjoy the brand image
Compelling brand, product quality and price in local retail stores (convenience)
There are no market leaders in this space, gap in the market
Our outsource manufacturer is a leading researcher and manufacturer of cosmetics
They can guarantee a better quality product by adding certain ingredients (e.g. more fragrance oil in aftershave)
We are targeting males aged between 20 and 40 who play / enjoy / aspire to out doors sports,
Products are functional to protect against weather (UV protection, moisturisers for wind etc)
Beautiful branding, easy to use packaging for outdoor life Available in all major retail stores at a very low price point Make it cool to use Male cosmetic but encourage through
outdoor protection from the weather No other brand has filled this gap in the market and
focused on the outdoor life (cosmetic and purposeful)
We distribute through major cosmetic wholesalers selling main stream cosmetics like J & J, target three in Europe (a,b,c)
Some smaller distributors on board today that will act as references (happy with products, sell through and margins)
Focused marketing, Point of sale promotions in store, outside store, and using demonstrators & testers (proven to work)
High margins given to all resellers, as opposed to high profit to Nautique, to win shelf space and retailer marketing budgets
Strong use of online marketing, blogs, social media, sports web sites using key influencers, sports stars and young outdoor leaders
High quality point of sale branded materials, sports & sailing gearMarket comms plans: PR, Guerrilla Marketing, AdvertisingSponsorships of sailing clubs, sports clubs, free grear, samplesPR around protection against skin cancer, wind burn, ageing etc
X, Y & Z Distributors reach x,xxx retailers across Europe, focused on countries a, b and c
We focus on selling our total value proposition to cosmetic distributors, pull & push through sales to consumers
Margins to Distributors 50%, retailers 50%Start in countries a, b and c, grow to x,xxx pm
before entering new countryUse local account manager for distributorsUse in-store promotions agency for pull throughAppoint PR agency locally, use local radio etc
50ml Aftershave: Cost to produce €2, sell to distributor for €4, they sell to Retailer €8 retails at €16 plus VAT = €20 (other brands €40)
Volumes per store through retailer x = 20,000 paTotal margin per store = €40k pa in store promotion
costs = €10k pa Ad Agent fees on per store basis €5kNet margin for business = €25kOther products similar commercials different price
points
Key competitors are top branded cosmetics (Polo, Boss, Gant, Prada)
We offer better products at half the priceThey cannot match our prices and will not
distribute through same channelsWe need top brand channels also for
credibility, they could block usThey could discredit our brand and productsThey could outspend our advertisingThey could create a new product to compete
Great team with lots of experience in cosmeticsOur head of R & D has worked with our outsource
partners, best for R & D in this areaNeed to hire a CMO with cosmetic retail experienceCommercial Head good contacts with key distributorsTeam have share options and 100% bonus packs Our vision is big the team enjoy the challenge
We have invested over €1ml in R & D to produce 5 key products (aftershave, moisturiser, balm, shampoo & shower gel)
Sales to date €1.5 ml Ireland, €2.5 ml UKNo Capital requirements going forwardAll costs are variable based on sales apart from salariesWill bring in new VC investment at value of €10ml to
accelerate sales in EuropeKey expenditure is marketing as we deploy new
distributors and retailers, cost per distributor up to €500kOnce operational a distributor will pay back initial
investment in 1 year and then contribute min €1 ml pa
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Year 1 Year 2 Year 3 Year 4
Revenue
Costs
Margin
Senior Management all home workersMeet once a month to coordinate strategyWe buy our unique fragrance from Grasse France (IPR)Outsource company supply all other ingredientsBottling and packaging supplier by outsource partnerDistributor takes order from retailers, drives production
on floor of factoryWe carry 10 months of stock, goods have 5 year life so
can store easily, held in Outsource factory (low cost of storage)
All other operations run using Cloud servicesLogistics managed by outsource company, one drop to
distributor HQ so very low cost per product
Sales per Store per day, week, month, year
Sales per region per day, week month, year
Sales per Distributor per day, week, month, year
Costs per store, region, distributor, country
Margin per store, region, distributor, country
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