Rebecca Day

Daniel Fuchs

Cassandra Kimsey

Jason Rawlins

Koeli Raychaudhuri

Susan Stawicki

Wunder ArmMarketing Plan

May 15, 2013

Chronically cross-armed in meetings?

Reluctant to reach out for a handshake?

Do you suffer from excessive underarm sweat?

We have a solution for you…

Introducing…Wunder Arm Disposable Underarm Sweat Absorbers

Discreet, long-lasting and comfortable with innovative

moisture control technology! The multi-purpose Wunder Arm comes in a variety of colors to blend in with any shirt or blouse! Available in

both unscented and scented versions, eliminating the need

for deodorant in addition to antiperspirant!

Now at a dry cleaner nearyou!

Package

• Convenient, 6”x4”x1” carton – easily fits in a handbag or briefcase; clean, simple colors and style

• Plastic tab on back to hang on in-store displays

• Clear labeling that conveys message at a glanceo Color of product indicated by color stripeo Shape of product indicated by small illustrationo Illustrated instructions are easy to understand

Wunder Arm Package - Front Panel

*Generic packaging sample

Wunder Arm Package – Back Panel

Positioning – “Cool & Confident”

• Primary Competitorso Kleinert’s: offering a wide selection of sweat

control products for both men and women in both stick-on and strap-on varieties

o Sweatex: sweat pads protect clothing from underarm stains and odors

See Appendix for more detailed information on competitors

• Differentiationo Appearance: color options to make them less visible through clothingo Performance: more absorbent than existing productso Materials: hypo-allergenic microfiber and moisture-wicking technologyo Packaging: more modern, youthful, and attractiveo Distribution channel: target customers directly through displays in dry

cleaners (Stage 1)

Product Description

• Thin, microfiber absorber with long-lasting adhesive for easy attachment to any fabric

• Moisture-wicking lining on top to keep customer feeling comfortable and dry even when absorber is saturated

Target Segment

• Men and women who are:o Concerned with the

embarrassment associated with hyperhidrosis (excessive perspiration), either regularly or on a one-off basis

o Business professionals across various fields or speak in public regularly

o 20-50 years oldo Live in New York City or other

major metro areas in the U.S.

Segment Characterization & Attractiveness

Potential Market Size & Prevalence:

• ~8 million people in the US suffer from hyperhidrosis1

• Up to 2/3 of people have hyperhidrosis in their family1

Demographics & Geography:

• The condition is most prevalent in 25-64 year olds.2

• Average onset is 26 years old and declines past age 50.2

Market Need for Discrete Solution:

• Only 40% of those who suffer from hyperhidrosis have discussed it with a health professional, possibly because of the stigma associated with it (suggests need for a more discreet solution)1

• 1/6 of those affected by hyperhidrosis found the condition to be intolerable or interfering with their daily activities2

Source: 1. WebMD, 2. Virtual Medical Centre

Ahas!

1. Increased demand during summer months due to warmer-weather commute• “In the summer it takes me at least a half hour to get down to regular temperature once I get to the office in the

morning. I kind of wish I could hide during that period. The best I can hope for is that coworkers don’t notice the sweat stains at my armpits.”

• “I don’t even have to dress up in formal business wear or even business casual at work, but so many of the casual shirts for men these days are pretty form-fitting, underarm stains are an issue.”

See Appendix for more detailed insights

Key consumer insights based on qualitative interviews with CPG professionals, dry cleaners (Stage 1 distribution channel), and New Yorkers in our target segment:

2. Men are more self-conscious about their sweating than they would likely admit• “I was in a store last weekend and I guess the temperature in the place was a little off.

I got in line for the dressing room and realized I had two Frisbee-sized pit stains under my arms. It was so embarrassing – I didn’t even realize I was that overheated.”

• “I get annoyed at my girlfriend when we’re walking down the street and she touches my back and inadvertently shows the world how sweaty I am”

3. Women’s dress shirts are roughly 2x more expensive to dry clean than men’s

Ahas! (cont.)

4. Many opportunities for future product enhancements and extensions

• Enhancements:o Offer different scents for men and women

o Provide a natural version with baking soda or other natural materials

• Extensions:o Women express need for sweat protection for sleeveless shirts

o Men interested in absorbers for back sweat

o Adding accompanying body sprays to product line in light of recent trend towards deodorants doubling as fragrances

See Appendix for more detailed insights

Cost & Pricing

• Wunder Arm will retail for $9.99/box, which is slightly below the premium price point

• The $9.99 box will consist of 15 pairs of absorbers (30 total)

o Equivalent of 3 work weeks

• Wunder Arm can be produced and packaged for $2/box

o Estimated COG of $.06 per absorber based off competitors’ pricing

• Wunder Arm can be wholesaled to retailers at $4.30/box based off competitor’ margins

• Limited switching/opportunity costs as product complements current sweat management techniques

Competitive LandscapeOverview of clothing shield market

Competitors Price Point Qty/Package Application Disposable (Y/N)

Sweatex $4.99 10 Clothes Y

Quickshields $9.99 1 Body N

Purax $19.90 30 Body Y

Garment Guard $15.95 15 Clothes Y

My Dry $8.49 20 Clothes Y

Snug $10.99 40 Clothes Y

Braza $14.88 20 Clothes Y

Hollywood $10.99 10 Clothes Y

Kleinerts $6.99 24 Clothes Y

Competitive LandscapePerceived Value

SweatexQuickshields

Purax

Garment Guard

My DrySnug

Braza

Hollywood

Kleinerts

Wunder Arm

PriceComfortApplication

• Price – consumer value based on cost at retail

• Comfort – consumer level of comfort• Application – ease of use

• The closer the lines are to the exterior of the graph, the higher the perceived value

• Upon launch, Wunder Arm aims to be at these points on the value map

Distribution: Local Market Strategy

NYC Dry Cleaners

• Initial sampling promotion at dry cleaner chains in Wall Street and Midtown

• Secure contracts for display racks in all locations

• Deal contingent upon gaining access to customers through limited run ‘return bag’ insert and/or hanger advertisement

NYC Laundromats

• Sidewalk sampling promotion at Laundromats, citywide

• Secure contracts for point of purchase display racks

• Wunder Arm flyers on Laundromat bulletin boards

Google Maps: NYC Dry Cleaners & Laundromat

Distribution: Local Market Expansion

• Use sales generated during proof of concept stage (at Dry Cleaners/Laundromats) to pitch pharmacy chains (Duane Reade, CVS, etc.)

• Place on racks between shelves in deodorant and/or laundry detergent aisle to reduce shelf space costs

Communications Plan

• Disruptive advertising: Offensive/shocking fliers where excessive sweaters have their faces blurred out – "The Wunder Arm Wall of Shame"

• Social Media: Submit pictures/videos of excessive sweating to "Wall of Shame" Tumblr to receive a free sample in the mail

• Celebrity Outreach: Send to celebrities/politicians in the tri-state area caught with pit stains in tabloids and hope they embrace/endorse them

• Community Outreach: o "Street Teams" hand out samples at college career fairs,

awards ceremonies and professional events; o “Street Teams” hand out at Wall Streeto Spokesmen walk around city in dress shirts with sweaty pits

and sandwich boards with “pits of shame” pictures

BudgetCommunications Plan:

• Disruptive Advertising: 10,000 Fliers - $700

• Social Media: Sampling program (postage/fees to send samples to 100 Tumblr “Wall of Shame” winners) - $130

• Celebrity Outreach: Sweaty-Celebrity-targeted press kits (i.e. Sending info/free samples to Halle Berry) - $500

• Community Outreach:o Social Media site maintenance (Facebook, "Wall of Shame", Twitter,

Pinterest, Tumblr) - Covered by marketing team at no costo Wall Street Sweaty Sandwich Board Reps - Covered by marketing team at

no costo “Street team” - Covered by marketing team at no costo Product sampling - $400

Stage 1 Distribution:• Dry Cleaner Sampling - $2,000

See Appendix for more detailed insights

Communications & Budget Timeline

2013 2014

Tactic Tasks May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

Community Outreach

Sweaty Sandwich Board                        

Social Media “Wall of Shame” Tumblr Contest

      ($130)                 

Social Media Facebook, Twitter, etc.                        

Advertising Fliers ($233) ($233) ($233)                  

Celebrity Outreach

Sweaty Celeb Press Kits     ($100) ($100) ($100) ($100) ($100)          

Sampling Street Teams ($100) ($100) ($100) ($100)                

Sampling Cleaners Sampling ($400) ($400)   ($400)   ($400)   ($400)    

Sales Cleaners Accounts

    $1,150 $1,702 $1,702 $1,702 $1,541 $1,541 $1,541 $1,763 $1,763 $1,763 Sales Pharmacy Accounts

              $1,541 $1,541 $1,763 $1,763 $1,763

Stage 1 Launch

Stage 2 Launch

Sales & Profit Projection  Q1 (May-Jul '13) Q2 (Aug-Oct '13) Q3 (Nov '13-Jan'14) Q4 (Feb-Apr '14)

Initial Order Quantity 2500 2500 2500 5000

COG $2 $2 $2 $2

Total ($5,000) ($5,000) ($5,000) ($10,000)

Sampling Expenses ($1,100)  ($900)  ($400)   Fliers & Contest Promo ($700)  ($130)    

Celebrity Outreach ($100) ($300) ($100)  

Total minus Marketing ($6,900) ($6,330) ($5,500) ($10,000) 

Sales in Units 500 2250 3350 4600

Sales in Dollars $1,150 $5,106 $7,705 $10,580

YTD Profits ($5,750) ($6,974) ($4,769) ($4,189)

Inventory in Units 1300 1050 0 0

Appendix

Appendix: Qualitative Interview Questions – Dry Cleaners and New York City Professionals

Dry Cleaners (Stage 1 Distribution Channel)

1. How often do customers bring in shirts with sweat stains per week?

2. Does one gender bring in more shirts with sweat stains than the other, or is it about equal? (That is, how many shirts do you receive from each gender, not how many customers of each gender)

3. Is it possible to clean these stains, or do these shirts generally need to be replaced?

4. If they can be cleaned, approximately how much do you charge for this?

5. Would you be interested in selling sweat absorbers on premises on commission? (via a small promotional display)

New York City Professionals:

1. How would you describe the way you perspire? (e.g. Below Average, Average, Above Average)

2. How do the products currently on the market to treat perspiration meet your needs?

3. Do you use over-the-counter products, medical treatments, or both?

4. Is there a single product on the market that meets all of your needs or do you require a combination of products to combat sweating?

5. How much would you estimate you are currently spending per month on anti-perspiration products?

6. How much would you estimate you are currently spending per month on clothing cleaning/replacement costs, due to sweat?

7. What are your top priorities with regard to anti-perspiration products? E.g. Cost, Efficacy, Long-Lasting, Scent, Health Concerns (e.g., hypo-allergenic, not containing aluminum, etc.), Privacy (e.g., prefer not to consult doctor), Aesthetics (e.g., should not be noticeable on/through clothes, should help to preserve clothes)

 

Drug Stores / Other Related Retailers (Stage 2 Distribution Channel if Stage 1 is successful)

1. Of all the anti-sweat products you offer, which type sells the best? Is there a difference in preference based on gender/age?

2. Have customers ever indicated to you that they were unsatisfied with the products available on the market today?

3. Do customers indicate that they have trouble cleaning sweat stains off of their clothing?

4. If yes to either 2 or 3, how often, and what are the gender/age of the customers who are making inquiries?

5. Based on the data we’ve shown you through our product trials at NY metro area dry cleaners and Laundromats, would you be interested in selling sweat absorbers for a trial period via a small promotional display?

Consumer Packaged Goods Contact List: Customer Insights

Name Company Subject Matter Expert Insights

Monica Bhanote Avon • There is a trend in the market towards deodorants doubling as fragrances (e.g. Axe Body Spray)

• It is very difficult to market a unisex deodorant. Men view as more functional, whereas women take a more emotional/holistic approach to deodorant purchase.

• Women are more likely to seek medical help for excessive sweating (i.e. Botox in underarms), but men are more likely to view sweat as "normal" and might gravitate more towards a quick fix.

• There is growing concern over aluminum use in deodorants causing cancer, especially in women. Baking soda and natural ingredients/products are growing in popularity.

Maribelle Orengo Avon

Helen Sung L’Oreal

Nicole Howard Estee Lauder

Vanessa Baier Estee Lauder

Jui Nasomyont Avon

Raheel Kahn Avon

NY Metro Area Dry Cleaners Contact List: Customer Insights

Name# of sweat-

stained shirts/week?

Men/Women

Charge per shirt Insights

Marcell’s Cleaners(212) 348-7121

n/a Men $3 (no extra charge for discoloration unless customers opt for whitening service ~$15-18)

• Discoloration due to deodorant plus sweat combination• This dry cleaner would be interested in a sampling

promotion at all of its locations

Seabreeze Cleaners(732) 671-2550

100 Women $5.70 • This dry cleaner was reluctant to speak more in detail about demand for sweat-stained shirt cleaning

Natural Cleaners(732) 957-0202

150 Men Declined to provide • This dry cleaner was reluctant to speak more in detail about demand for sweat-stained shirt cleaning

White Dove Cleaners(732) 530-0577

Didn't know Men $2.75 • This dry cleaner was reluctant to speak more in detail about demand for sweat-stained shirt cleaning

Seabreeze Cleaners(732) 291-4700

Less than 100 Mostly Men  $1.80 (men)/$5.85 (women) (no extra charge for sweat stains)

• Men bring in more shirts with sweat stains than women, but this may be because women clean their shirts more often and sometimes use sweat shields, which are effective

• Worst stains occur when men don't wear undershirts, use solid deodorant/antiperspirants, and/or wait too long to take their shirts to the cleaners

• Would love to carry sweat shields in his store if they were more easily accessible to him (he volunteered this information); he had once seen sweat shields in his supplier's catalog (www.cleanersupply.com). [Note:

could not find sweat shields on this website]

NYC Professionals Contact List: Customer Insights

Name Sex Occupation Insights

Adam Robertson

M Sales • Commuting/traveling from between client sites during warm weather months would drive usage

Michele Peters

F Product Mgmt. • Most concerned about health-related issues (aluminum in antiperspirants) but has had difficulty finding an effective “natural” product alternative

• Would use for one-off stressful situations, e.g. presentations to clients• Sweat protection most needed for sleeveless shirts

Joe Ancowitz

M Musician / Teacher

• Somewhat reluctant about the concept• Would wear for music gigs but mostly uses sport/suit coat to absorb sweat• Sweat from commute during warm weather months would drive usage

Mike Walter M Finance • Would wear for one-off stressful situations, e.g. presentations to clients• Sweat from commute during warm weather months would drive usage• Would be interested in similar product for back sweat

Warren Beishir

M Advertising • Sweat from commute during warm weather months would drive usage• Sweats more out of one underarm than the other• Would be interested in similar product for back sweat

Susan Schriver

F Mgmt. Consulting • Might be helpful for long work days (Mondays when flying from NYC to client site in another part of country and working full day)

• Would use for one-off stressful \ situations, e.g. presentations to clients• Sweat protection also needed for sleeveless shirts worn under suits

Brian Findley

M Architect • Would use daily, sometimes even on weekends (can get overheated during casual activities such as shopping, running errands)

• Would be interested in similar product for back sweat

2013 2014

Tactic Tasks May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

Advertising Fliers                        

Social Media “Wall of Shame” Tumblr Contest

                       

Social Media Facebook, Twitter, etc.                        

Celebrity Outreach

Sweaty Celeb Press Kits

                       

Sampling Street Teams                        

Sampling Cleaners Sampling                        

Community Outreach

Sweaty Sandwich Board

                       

Sales Cleaners Accounts                       

Sales Pharmacy Accounts                       

Communications & Launch Timeline

Stage 1 Launch

Stage 2 Launch

Budget DetailsCommunications Plan:

• Disruptive Advertising - $700o http://www.lbgrx.com/Night_Club_Flyers.html

• Social Media - $130o Online Tumblr “Wall of Shame” photo contest: 100 gift packages

• $.50/stamp = $50• Envelopes = $10• 10 absorbers/gift package – ($.07/absorber) = $70

• Celebrity Outreach - $500o Postage – target 50 celebrities ($10/mailing) = $500

• Community Outreach – sampling = $400

Stage 1 Distribution Plan:• Dry Cleaner Sampling:

o Ten 30-packs distributed among 100 locations – ($2/pack) = $2,000