Better, Easier, Smarter Sun Protection

Jenny Chen: jenny.y.chen@rutgers.edu

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PROBLEMS

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• White cast on skin, residue left on clothing
• Missed spots, uneven application
• Unaware of when to reapply

SOLUTION

• Colored sunscreen that dries transparent = No residue, better coverage, safe protection�
• Sunscreen turns a golden color after a user experiences enough UV exposure, thus indicating that it is now time to re-apply.

COMPETITIVE ADVANTAGE

• First company of its kind
• No unnecessary sunscreen applications
• Qualified for patent
• Partnerships
• Low startup and maintenance costs

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BUSINESS MODEL: 3 KEY ELEMENTS

• Manufacturing and Bottling Company�-In charge of creating and bottling lotion for distribution.�
• Distributors�-Distribute products to retail locations for sale.�
• Niche retail stores�-Partner with coastal summer wear retailers to market our product to target audience

GO-TO MARKET PLAN: NORTH AMERICAN MARKET OVERVIEW

GO-TO MARKET PLAN: NORTH AMERICA

1. File and obtain patent, FDA approval
2. Establish Supply Chain System: Distribution, Manufacturing Relationships.
3. Set up physical retail store: Niche Market & E-Commerce Online Platform
4. Aggressive online & physical marketing (Google Adwords, SEO, Influencer, Social Media, partnerships with other venues etc.)

Competitive Analysis

MANAGEMENT TEAM

CEO: Jenny

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CTO: Kaylin

CFO: Kenneth

CMO: Christian

FINANCIAL PROJECTIONS

• We will conduct 1,170,820 sales in the first year with an expected 3% growth as per market growth.
• Ask: $8,542,000 for 27%; ROI: 5.6x
• CLV = 28.2 * 71% margin / 20% churn = $100.11 CLV
• CLV/CAC = $100.11 clv/23.94 cac = 4.18x CLV/CAC�

Timeline

• Now
• We currently have the developed & patented the formula for the sunscreen.
• We are currently engaging with niche stores and distributors to feature our product.
• We would need funding for the bottling and the distribution.
• Future (2019-22)
• Work with manufacturing and distribution partners to grow scope of market as we diversify and our offerings and grow customer base.

APPENDIX

1. MARKETING 4 P’s

Product: Color Changing Sunscreen in a Variety of Forms

• B2C�-Traditional Sunscreen (Cream/Emulsion-based)�-Aerosol Spray (Similar to Sunblock)�-Roll-on Stick�
• B2B�-As an added component for third party products

Price: Mid-Level, High End Range

• As individual sales (B2C)�-$19.99 for regular size (Permanent Premium Pricing)�
• As added ingredient in third party products (B2B)�-Customizable based on the %

Place: 2 Distribution Channels

• Sales�-Online Direct E-commerce Platform�-Physical Retailers and Partnerships�
• Logistics�-Central Base: branching out distribution

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Promotion: Online & Physical

• Social Media
• SEO & Analytics
• Celebrity Sponsorships/Promotion
• Advertising (Product Placement)
• Promotional partnerships with other venues, such as luxury tropical luxury resorts, “accompanying gift” from another product

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2. CONTRACT MANUFACTURER & DISTRIBUTION

As for our manufacturing and distribution partners. We have narrowed down to two distributors: Amazon and UPS. Additionally, we have narrowed down to two manufacturing/bottling partners: Etsy Manufacturing: 3D Brooklyn Bottling Service and Private Label Select (PLS). Final selection(s) Amazon, and PLS

Request For Proposal (RFP): (abridged)

Statement of Purpose: We are a sun care product company which developed a new patented formula for a new sunscreen product line. We are seeking a contract manufacturing service provider as well as a distribution partner to fulfil the demand for our new venture.

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• Background:
• We are a new company seeking to expand our brand by manufacturing and bottling our sun care product for distribution.
• Scope of Work:
• We aim to have an annual commitment with a company able to fulfil the growing demand for our firm. We anticipate the production and distribution of over a million units over the period of 12 months. Regional distribution eastern North America will be required for this venture.
• Budget:
• We are offering a budget of 7 million dollars to produce and distribute our product over the 2019 year
• Contract Term and Conditions
• Will be monthly reports regarding production
• Tracking implemented for the development
• RFP timeline and review process
• Seeking to begin the manufacturing within the next 1-2 month for distribution in late 2018�

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3.1 COMPANY ACQUISITION: HORIZONTAL INTEGRATION

Manufacturer and Distributor of Cosmetic and body Care Products since mid 1960's. They sell Trademarked Sun Care products...The business does Private Labeling and Manufacturing of moisturizing lotions, shampoos, perfumes, skin lighteners, skin toners, skin wrinkle creams, etc,

Specialty-private label cosmetic packaging manufacturer and high-end skin care distribution and manufacturing company. Since 2001 this unique operation has been thriving. This is a global business with manufacturing and production handled in the USA and China. The companies enjoy worldwide distribution through seasoned distribution channels along with in-house sales.

3.2 COMPANY ACQUISITION: VERTICAL INTEGRATION

5.1 FINANCIAL RATIOS: CLV/CAC, Ask & ROI

Key Assumptions and figures:

• Assumption:
• 80% retention (20% churn)
• 1.5 sales per customer per year
• 5% drop in CAC per year
• Figures
• Average CAC over customer lifetime is 23.94
• CLV(Average Annual Revenue per Customer * Gross Margin per Customer ÷ Annual Churn Rate)
• CLV = 28.2 avg revenue * 71% margin / 20% churn = $100.11 CLV
• CLV/CAC = $100.11 clv/23.94 cac = 4.18x CLV/CAC�

5.2 The “Ask” & ROI

• Investment = $8,542,000 USD
• Valuation (in 5 years) = 5x $35,826,119 = $179,130,595
• Valuation (today) =Pre-money Valuation = .13x $179,130,595 = $23,286,977
• Post Money valuation =$23,286,977 + $8,542,000 = $31,828,977
• Equity = $8,542,000/$31,828,977 x100% = 27%
• So the Ask is for $8,273,000 for 27% of the company
• In 5 years the 27% will be worth .27 x $179,130,595 = $48,365,260
• So the ROI = $48,365,260 /$8,542,000 = 5.6x

Put simply the ask is: $8,542,000 for 27% of the company which will result in a 5.6x ROI.

6. AngelList CROWDSOURCING

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We are a company that will produce a product that is first of its kind. Our sunscreen offers a unique trick, no leftover residue, better coverage, safer protection, and a reminder when reapplication is necessary. Our sunscreen applies purple, dries clear, and turns golden when reapplication is necessary. We offer a worry free experience. Through partnerships, low startup and maintenance costs we can get our product quickly into the hands of our customers.

We have a wide consumer base among millennials, health conscious consumers, parents, outdoor workers, athletes, vacationers, etc. We can reach them through our diversified streams of revenue both online and physical. We plan to later expand to a mass market customer segment which would add another channel of distribution. We plan to reach new customers in the future by advertising using google adwords and by using social media influencers.

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We are projecting 1,170,820 sales in our first year and to be profitable by the end of our second year. By selling through an ecommerce platform and physical retailers we plan to make over $35,000,000 in 5 years. Our ask is $8,542,000 for 27% of the company which will result in a 5.6x ROI. Sales will go up every year with the cost of goods also going down.

• BBQ Food and Drinks
• Customized Ice Cream Truck Rental
• Branded Giveaways
• Volleyball Tournament
• Build-A-Sandcastle Contest

7. Popup Venue

7.2 POPUP VENUE: COSTS

• Customized Ice Cream Truck Rental: $300
• Event Permit Application Fee: $80
• Refundable Clean-Up/Damage Deposit: $1500

8. GLOBALIZATION (Google Trends)

Countries to Expand: (NA: North American Market; EU: European Market; AP: Asian Pacific Market)

• Mexico (NA)
• Within NA making for easier market expansion
• Canada (NA)
• Within NA making for easier market expansion
• United Kingdom (EU)
• Interest high in UK via Google trends
• Strong EU market strength
• Good leverage into rest of EU market
• Australia (AP)
• Heavy Interest via Google trends
• Strong market
• Leverage in being able to expand to rest of AP market
• New Zealand (AP)
• Heavy Interest via Google trends
• Strong market
• Easier to expand if positive presence in Australia due to market similarity.�

9. CORPORATE SOCIAL PROGRAM

• Institute at St. John’s Health Center
• Conducts research on cause, diagnosis, control and cure of cancer
• Provides training for new generations of surgical scientists

*Would donate to further their Skin Cancer research.

10. PIVOTS

• Major�-Expanded the business sales from B2C to B2B�
• Minor�-Diversified the product lines

11.1 ADVERTISEMENT: BizBuySell

Established color-changing sunscreen brand. With our unique formula, we stand out against our competitors. Quality ingredients and FDA approved. Inexpensive packaging costs. Hands-on management. Staff hand-selected for competence and experience.

11.2 Tangible vs. Intangible Assets

Tangible

• Manufacturing factory in Miami, FL
• Being sold in over 20 niche markets and more recently, Walmart
• Online Market

Intangible

• Patented
• FDA Approved
• Exposure through John Wayne Institute BBQ Beach Party Fundraiser

Org Chart

CEO: Jenny

CTO: Kaylin

CMO: Christian

CFO: Kenneth

Investor Relationships, crowdsource funding, financial projections

Product development, research, etc

Market access, promotion and advertising

Logistics, distribution, resources and people -> product to market