1. Lean LaunchPad
Team #5
The new pantyhose. With you for the long run.
The first branded, non-run pantyhose brand on the market aiming to make things simpler for women.
Alanna Lopes Souza | Amy Kwan | August du Pont
MBA 2015
MBA 2015
Day 5
Customer Interviews: 40
Total Running: 103
Surveys: 66
MBA 2015

2. Business Model Canvas
Key Partners
•
Pantyhose manufacturers
•
Shipping companies
•
Internet search engines
Value Propositions
•
Control of
production, manufacturing
Direct-to-Consumer
•
Manage website, online
orders, and distribution
•
Wholesale channels
•
Key Activities
•
Feet will not slip in heels
•
Marketing and promotion
•
Machine washable
Product and packaging
design
•
Easy-to-store packaging
•
Lawyers (patents)
Branding strategy
Easy-to-wash laundry bag
•
Pantyhose will last much
longer and save consumers
money in the long-term
•
•
•
Customer Relationships
•
•
Physical: Web
infrastructure, retail outlets
•
Intellectual: Patents and
brand copyrights
•
Targeting busy, female
business professionals
•
Age range 20-30s
•
Values quality over price
(willing to pay a premium) but
currently buys pantyhose at
the drugstore for
convenience
Wholesale Channels
Channels
•
Home shopping networks
Established retail outlets
•
Drug stores
Direct marketing
•
Department stores
•
Social media
•
Financial: Seed capital
Direct-to-consumer
•
Drive traffic to retail channels
•
•
Human Resources:
Marketing and
operations, development
partner
•
•
Grow: Word of
mouth, increased
color/design
variety, subscription rewards
Wholesale Channels
•
Direct-to-Consumer
Keep: Guarantee, product
quality
Key Resources
•
Get: Free products at
professional
conferences, free branded
accessories (storage case
and washing machine
bag), coverage from fashion
blogs, Search Engine
Optimization
Customer Segments
1-year guarantee that
pantyhose will not run
Cost Structure
Revenue Streams
•
Fixed: Product & packaging development, patent application, patent lawyer’s
fees, infrastructure (website), accounting system
•
Direct-to-Consumer revenues
•
Wholesale to retailer revenues
•
Variable: Materials, manufacturing, packaging, distribution, marketing, operations
•
Subscription revenues

3. Business Model Canvas
Key Partners
•
Pantyhose
manufacturers
•
Shipping companies
•
Lawyers (patents)
•
Partner with quality
manufacturer
•
Control of
production, manufacturin
g
Value Propositions
Product development
Internet search engines
•
•
Wholesale channels
•
Key Activities
Direct-to-Consumer
•
Customer Relationships
•
Pantyhose will last much
longer and save
consumers money in the
long-term
•
Feet will not slip in heels
•
Manage website, online
orders, and distribution
•
Machine washable
•
Branding strategy
•
•
Targeting busy, female
business professionals
•
•
Employed females in the
age range of 20-30s 25-55
•
Values quality over price
(willing to pay a premium)
but currently buys
pantyhose at the
drugstore for convenience
Grow: Word of
mouth, increased
color/design
variety, subscription
rewards
Marketing / promotion
•
Direct-to-Consumer
Keep: Guarantee, product
quality
Easy-to-wash laundry bag
•
Get: Professional
conferences, trade
shows, free branded
accessories, fashion
blogs, SEO, magazines
•
Easy-to-store packaging
•
Customer Segments
Packaging
Key Resources
•
Physical: Web
infrastructure, retail outlets
•
Intellectual: Patents and
brand copyrights
•
Human Resources:
Marketing and
operations, development
partner
•
Channels
Wholesale Channels
•
Wholesale Channels
•
Direct-to-consumer
•
Home shopping networks
•
Established retail outlets
•
Drug stores
•
Direct marketing
•
•
Social media
Mass retailers
(Target, WalMart, Costco)
•
Drive traffic to retail
channels
1-year guarantee that
pantyhose will not run
•
Department stores
Financial: Seed $
Cost Structure
Revenue Streams
•
Fixed: Product & packaging development, patent application, patent
lawyer’s fees, infrastructure (website), accounting system
•
Target price $20
•
Direct-to-Consumer revenues
•
Variable:
Materials, manufacturing, packaging, distribution, marketing, operations
•
Subscription revenues
•
Wholesale to retailer revenues

4. Business Model Canvas
Key Partners
•
Pantyhose
manufacturers
•
Shipping companies
•
•
•
Partner with quality
manufacturer
•
Value Propositions
Product development
Manage website, online
orders, and distribution
Wholesale channels
•
Key Activities
Lawyers (patents)
Direct-to-Consumer
•
Branding strategy
•
Marketing / promotion
•
Packaging – patent
•
Feet will not slip in heels
•
Machine washable
•
Physical: Web
infrastructure, retail outlets
•
Human Resources:
Marketing and
operations, development
partner
•
Direct-to-Consumer
•
Values quality over price
(willing to pay a premium)
•
Sometimes reads blogs
•
Grow: Word of
mouth, increased
color/design
variety, subscription
rewards
Employed females in the
age range of 25-55 25-40
•
•
Tech savvy
Channels
Wholesale Channels
Intellectual: Patents and
brand copyrights
•
Get: Professional
conferences, trade
shows, free branded
accessories, fashion
blogs, SEO, magazines
Keep: Guarantee, product
quality
Easy-to-wash laundry bag
•
Customer Segments
•
Easy-to-store packaging
Key Resources
•
•
Pantyhose will last much
longer and save
consumers money in the
long-term
•
•
Customer Relationships
Wholesale Channels
•
Direct-to-consumer
•
Home shopping networks
•
Established retail outlets
•
•
Direct marketing
Mass retailers
(Target, WalMart, Costco)
•
Social media
•
•
Drive traffic to retail
channels
1-year guarantee that
pantyhose will not run
Department stores .com
department store sites
Financial: Seed $
Cost Structure
Revenue Streams
•
Fixed: Product & packaging development, patent application, patent
lawyer’s fees, infrastructure (website), accounting system
•
Target price $20 $15
•
Direct-to-Consumer revenues
•
Variable:
Materials, manufacturing, packaging, distribution, marketing, operations
•
Subscription revenues
•
Wholesale to retailer revenues

5. Business Model Canvas
Key Partners
•
Pantyhose
manufacturers
Key Activities
•
Product development
•
Partner with quality
manufacturer
•
Value Propositions
Direct-to-Consumer
Feet will not slip in heels
Branding strategy (leos)
•
Machine washable
Marketing / promotion
•
Easy-to-store packaging
•
•
•
•
Shipping companies
Manage website, online
orders, and distribution
Packaging – patent
•
Packaging doubles as
easy-to-wash laundry bag
Wholesale channels
•
•
Pantyhose will last longer
and save consumers
money in the long-term
•
•
•
Customer Relationships
Lawyers (patents)
Key Resources
•
Physical: Web
infrastructure, retail outlets
•
Human Resources:
Marketing and
operations, development
partner
•
•
Get: conferences, trade
shows, free branded
accessories, fashion
blogs, SEO, magazines, g
raduate schools
•
Keep: Guarantee, product
quality, easy & painless
shipping & return (free)
Employed females in the
age range of 25-40
(employed professionals
and graduate students)
•
Values quality over price
(willing to pay a small
premium)
•
Sometimes reads blogs
•
Tech savvy
Grow: Word of
mouth, more color/design
variety, add a
kids/toddlers line (for
dance & normal wear)
•
Direct-to-Consumer
Channels
Wholesale Channels
Intellectual: Patents and
brand copyrights
•
•
Customer Segments
Wholesale Channels
•
Direct-to-consumer
•
Home shopping networks
•
Established retailers
•
•
Direct marketing
Mass retailers
(Target, WalMart, Costco)
•
Social media and blogs
•
•
Drive traffic to retail
channels
1-year Guaranteed that
pantyhose will not run
satisfaction
.com department store
sites
Financial: Seed $
Cost Structure
•
Fixed: Product & packaging development, patent application, patent
lawyer’s fees, infrastructure (website), accounting system
•
Variable:
Materials, manufacturing, packaging, distribution, marketing, operations
Revenue Streams
•
Target price $15
•
Direct-to-Consumer revenues
•
Wholesale to retailer revenues

6. Business Model Canvas
Key Partners
•
Pantyhose
manufacturers
•
Shipping companies
•
•
•
Partner with quality
manufacturer
•
Manage website, online
orders, and distribution
Value Propositions
Product development
Wholesale channels
•
Key Activities
Lawyers (patents)
•
•
•
Pantyhose will last longer
and save consumers
money in the long-term
•
Eliminate the main pain
points women have with
pantyhose
Branding strategy (leos)
•
Direct-to-Consumer
Customer Relationships
•
Marketing / promotion
•
Key Resources
•
Physical: Web
infrastructure, retail outlets
•
Wholesale Channels
Intellectual: Patents
Trademarks and brand
copyrights
•
Drive traffic to retail
channels
Human Resources:
Marketing and
operations, development
partner
•
•
X
Customer Segments
Get: conferences, trade
shows, free branded
accessories, fashion
blogs, SEO, magazines, g
raduate schools
•
Keep: Guarantee, product
quality, shipping & return
(free), loyalty program
Females in the age range
of 25-40 (employed
professionals and
graduate students)
•
Values quality over price
(willing to pay a small
premium)
•
Sometimes reads blogs
•
Tech savvy
Grow: Word of
mouth, more color/design
variety, add a
kids/toddlers line (for
dance & normal
wear), plus size line
Channels
•
Direct-to-consumer
•
Direct marketing
•
Social media and blogs
•
Wholesale Channels
Direct sales force
•
Direct-to-Consumer
Guaranteed
•
Mass retailers
(Target, Wal-Mart)
•
.com department store
sites
•
Home shopping networks
X
Financial: Seed $
Cost Structure
Revenue Streams
•
Fixed: Product & packaging development, patent application, patent
lawyer’s fees, infrastructure (website), accounting system
•
Price $15 $20, 200% markup
•
Wholesale to retailer revenues
•
~$5 cost = $15 profit
•
Price of $11.75
•
Variable:
Materials, manufacturing, packaging, distribution, marketing, operations
•
~75% gross margin
•
~$5 cost = $6.75 per pair
•
Direct-to-Consumer revenues
•
~57% gross margin
X

7. Key Learnings
What?
How did we find out?
Implications?
1
Messaging is
key, “nice to have”
features aren’t.
2
Women need to
know HOW and
WHY.
Customers and CPG
experts
Save the retail
channels for later.
Distributors and retail
outlet experts /
entrepreneurs
3
4
Build on an
emotional
experience.
•
•
•
Focus on core value prop: non-run
Non-slip feature removed
Storage box not valued
•
Customers and CPG
experts
Educate through channels: brand
values, easy care
Trademark slogan and quality
standard - LeoKnit™
•
Focus on direct web sales first
.com retailers and mass retailers are
part of growth
•
Customers and CPG
experts
•
•
Add personalized messaging and
loyalty program
Target Working women and students
(ages 25-40)
•

8. Key Learnings – Customer Archetypes
Allison
Grad Student, 27







Sonia
Lawyer, 32
Established or career-minded women
Aged 25-40
Shops online, tech savvy
Doesn’t really watch TV but uses social media
Reads blogs, in step with the times
Goes to coffee shops regularly
Goes to occasional evening events

9. Key Learnings – Buying Behavior
Current
s
Future
s
s
s
s
•
Purchasing only as needed (unplanned)
Planned purchase
•
Look for a low price tag because they
don’t last
Value purchase, trust
•
Frustration leads to cycle of last-minute
buying before interviews or parties
Strong experience leads
to long-term relationship
Creating BRAND EQUITY is key.

10. Final Business Model Canvas
Key Partners
Key Activities
• Pantyhose
manufacturers
• Branding strategy
(leos)
• Shipping companies
• Marketing / promotion
• Product development
• Partner with quality
manufacturer
• Manage
website, online
orders, and distribution
Value Propositions
Customer Relationships
• Eliminate the main pain • Get:
Conferences, trade
points women have with
shows, blogs, SEO, ma
pantyhose
gazines, graduate
• Pantyhose will last
schools
longer and save
• Keep:
consumers money in
Guarantee, shipping &
the long-term
return (free), loyalty
program
• Grow: Word of
mouth, color/design
variety, kids/toddlers
line (dance & regular),
plus size line
Channels
Key Resources
• Physical: Web
• Values quality over
price (willing to pay a
small premium)
• Sometimes reads blogs
• Tech savvy
• Direct sales force
• HR: Marketing and
operations, developmen
t partner
• Females in the age
range of 25-40
(employed
professionals and
graduate students)
• Direct-to-consumer
• Intellectual:
Trademarks and brand
copyrights
Customer Segments
• Social media and
blogs
• Direct marketing
• Guaranteed
• Financial: Seed $
Cost Structure
• Fixed: Product & packaging development, infrastructure
(website), accounting system
• Variable:
Materials, manufacturing, packaging, distribution, marketing, opera
tions
Revenue Streams
• Price $20
• ~$5 cost = $15 profit
• ~75% gross margin
• Direct-to-Consumer revenues

11. The Product
Build trust.
•
Communicate LeoKnit™ quality
which will last longer and will not
run
LeoKnit™
Provide an
experience.
•
•
•
Educate.
•
Packaging
Personalization
New name “leos”
instead of pantyhose
•
Machine washable bag
and instructions
Experience with leoa is
simple
With you for the long run.©
l e o a

12. The Website
Key features
 Simple design
 Educate consumers about our quality and care instructions
 Blog component and customer reviews to create sense of community
http://lopessouzaalanna.wix.com/leoa

13. Distribution & Pricing
Direct-to-Consumer
Campus Sales Force
 Online mail orders
 Free shipping and returns
 Take orders directly from students
 On-site sales force during recruiting
season
Pricing
Sale Price
Manufacturing Cost
$20.00
$5.00
Profit per Pair
$15.00
Gross Margin
75%

14. Get, Keep, Grow Strategy
GET
Social Media
Internet / Press
 Blogs
 SEO
 Magazines
Viral Videos
what happens when your tights run (leoa)
leoa
In Person
 Graduate
school direct
sales force
 Trade shows
 Professional
conferences

15. Get, Keep, Grow Strategy
KEEP
Experiential Purchase
Loyalty Program
Personalized. Memorable. Educational.
MON
TUES
WED
THURS
FRI
1st Pair
2nd Pair
3rd Pair
4th Pair
5th Pair
FREE!
 Pair for every work day
Refer 2 friends,
get 1 free pair!
 Satisfaction guaranteed
 Free shipping
 Simple returns
Referral
Referral

16. Get, Keep, Grow Strategy
GROW
Channels
Product
 New colors
Mass Retail
 Designs
 Feature variety (control
top, non-control
top, sandlefoot, reinforc
ed toe, etc)
dotcom
Economics
Sale Price
Price to Retailer
Manufacturing Cost
Markup
Profit per Pair
Gross Margin
$20.00
$11.75
$5.00
70%
$6.75
57%
People
 Toddlers line with nonslip grips
 Kids line (dancers)
 Plus size line
 Targeted ads for
people who don’t wear
pantyhose at all
because they hate
what’s out there

17. Next Steps…
Immediate
Medium
Stage 1
•
•
•
•
•
Talk to marketing industry
experts
Develop marketing
strategy
Develop website
Partner with manufacturer
Research quality
assurance methods / risks
Long Term
Stage 3
Stage 2
•
•
YouTube ad campaign
Test non-slip grips on the
market, patent if
successful
•
•
Seek out retail partners
(Target, Walmart) after
initial sales
Look into
channels, product, and
people expansion

18. Appendix

19. Market Size
$1.5B
Total Addressable Market
$471M
Served Available Market
$334M
Target Market
Sources: IBISWorld; “Hosiery Mills in the US, November 2013”
U.S. Census Bureau, Current Population Survey, Annual Social and Economic Supplement, 2011.
• 51.3M employed
females ages 18-54
• Averaging $30
spent on pantyhose
per year
• IBISWorld “Hosiery
Mills in the US,
November 2013”
• Discount stores &
mass
merchandisers
• Department stores
• Online

20. Competition
leoa
Fast
Fashion
Stores
Premium
Stores
Online
Brands
Department
Store
Brands
Drug Store
Brands
Brand Awareness
Affordability
Quality
Storage / Washing






Non-Slip Feature



/



21. Competition
What They’re Missing
Who They Are
Retail / Online Stores
Affordability
Convenience
•
•
High price points
Reliability
•
Can’t always find
basic print / colors
Stores are not
designed for
shoppers on the go
Drug Stores
Quality
•
Efficiency
Products are typically •
cheap and likely
won’t last longer than
their initial use
Despite the low price
tag, multiple
purchases add up
Department Stores
Simplicity
Convenience
•
•
•
Product offering can
be overwhelming
Wide range in both
quality and price
•
Concentrated in
shopping districts
Few are located in
financial districts