watson scents columbia

Interviews since Thursday: 10Interviews to date: 55

WHERE WE STARTED

Graphic designers• We receive designs in exchange for

equity or cash

Web designers / masters• We receive ongoing support for

web design in exchange for equity or cash

Manufacturers• We receive products in exchange

for cash / commission

Marketing / Branding• Key element to successProduct development• Testing of new scentsBrand PartnershipsWeb development• Survey to select ideal profileSourcing / Manufacturing• Must be luxury quality

Direct-to-consumer, custom luxury home fragrance.• For the chronic overachiever,

Watson is the solution for those who deserve an easy, accessible way to make their home their own.

• Watson provides a fun and easy shopping experience, an open conversation with customers, and tailored luxury candles you never feel guilty burning.

Branding

Scent quiz / profile• Custom scents based on preference

Subscription service

Rotating collections• New scents each season

Gifting concierge

Direct-to-consumer (online)

Pop up shops• Can consider retail outlets in

select geographies

Graphic / Web designer• Need a designer to bring to life

IP on scent profiles

Financial investment• Marketing, initial orders

High frequency candle purchasers• Do not change behavior, just

stretch candle buying

22-35 yo affluent young professionals

High achieving, time poor• Too busy to make small

decisions, wants help shopping for items that resonate

Smart enough to buy the generics at the pharmacy• Enjoys value from direct-to-

consumer offering

COGS relatively low• Anticipate to be ~10-15% maxAnticipate marketing and branding to be highest cost• Ensure customers are reached via social media, influencers, etc., up to ~30% of retail

Sell at a slightly lower RSP than luxury candles• Offer same quality, added convenience, and can pass on savings to consumer to drive volumeMain streams are try at home ($10), and actual candle ($30-35)• Slight discount for B2B bulk purchases with strategic partners (Equinox, W hotel etc)Subscription service

DAY 1: VALUE PROPOSITION

Graphic designers• We receive designs in exchange

for equity or cash



Fragrance House• We receive development from

IFF (Jo Malone producer) in exchange for equity or cash

• Both gain prestige (Hawthorne for Men uses IFF competitor, Givaudan)



Marketing / Branding • Key element to success

Brand partnerships

Product and web development

Sourcing / Manufacturing• Must be luxury quality

Direct-to-consumer, curated, approachable luxury home fragrance

• Luxury craftsmanship, but at a price point she doesn’t feel guilty about through direct sales

• Accessible branding that resonates with her

• New path to sale through scent selection service and/or try at home to ensure she gets what she likes

Get• Acquire: Paid, earned media • Activate: Brand, scent quiz, try at

home, place an orderKeep• Subscription service• Include samples for next seasonGrow• Scarcity: limited quantity runs• New scents seasonally

Online, Direct-to-consumer• Capitalize on impulse purchase

behavior through ads online

Pop up shops and B2B (goal: awareness)

Graphic / Web designs



Overall: • 22-35 yo affluent young

professionals• High achieving, time poor• Appreciates “smart value” from

direct to consumer

Key segments:• “Religious” burners: want a

new candle experience / brand• “Social” burners: want

branding

Gifting• A non-impulse purchase

occasion: can be satisfied by gifting a try at home set

COGS relatively low• Anticipate to be ~10-15% max

Anticipate marketing and branding to be highest cost• Ensure customers are reached via social media, influencers, etc., up to ~30% of retail

Path to purchase: Scent quiz >> Try at home >> buy one time or order a custom subscription

Pricing: Sell at highest end of low threshold - where customers feel luxury but without guilt

Key insight

• Validated value proposition: people want a luxury brand at a reasonable price point

• Branding and seeing the actual product / experience is key in confirming proposition

TODAY’S CANDLE MARKET

LuxuryAccessibleDraft - not for distribution

DAY 2: CUSTOMERS


for equity or cash









Brand partnerships

















direct to consumer



branding







Key Insight

• Customer segmentation shifted from age and buying frequency to three distinct categories:

o Frequent burners: Burn candles on a daily or regular basis

o Social Burners: Burn candles when they have guests/dinner parties

o Gifting: Non-impulse buyers

VALUE PROPOSITION BY SEGMENTJenna: ”religious” burner Nat: “social” burner

Problem

Solution

• Because luxury candles are expensive, she often ends up leaving them unlit

• She is unsatisfied with the cheaper options she resorts to burning frequently

• Luxury craftsmanship, but at a price point she doesn’t feel guilty about



Problem

• Doesn’t have enough time to spend on selecting candles; usually an impulse buy

• Wants to convey status but luxury candles are a poor value (always buys on sale or leaves unlit)

Key value from Watson: new offering / experience

Key value from Watson: strong branding

DAY 4: PATH TO PURCHASE


for equity or cash









Brand partnerships

















direct to consumer



branding







Key insight

Channels:• Validated online as viable channel for luxury candles• Need to overcome need to smell before buying• Offer tea lights in traditional channels to capitalize on

impulse buys; can only purchase full size via Watson

Key insight

Customer Relationship (“Get”):• Learned specific paid / earned media required• Validated scent quiz and trial set is appealing

Key insight

Revenue Model:• Validated customers value single purchase option• Important to offer single buy and subscription

SIZE OF THE PRIZE

Draft - not for distribution

$6.1B home fragrance market

~$1Bdirect

Source: Kline, US Market (2015)

~$3Bluxury segment

20%annual growth

DAY 5: WHERE WE ENDED


for equity or cash









Brand partnerships

















direct to consumer



branding







WHAT’S NEXT

Continue to ”get out of the building” and test a more developed MVP• Requires: product concept design, mockup of web experience

Develop plan to acquire / hire key resources• Product designer• Web designer• Fragrance house• Manufacturer (+ supply chain)

Define marketing strategy, especially brand partnerships

Secure funding to carry out plans

watson scents columbia

Education