Top Brush Club Final Doc

8/17/2019 Top Brush Club Final Doc

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Maryam Kaymanesh & Andrew Frawley


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Introduction

Top Brush Club is for users of the oral care industry who struggle to nd the me to purchaseproducts that specically meet their needs. The Top Brush Club is an online plaorm primarilybuilt for a male millennial. The plaorm uses a subscripon model to deliver to subscribers,every three months, a re-supply of their most important dental items such as fresh bristles for atoothbrush, new toothpaste, oss, mouthwash or even whiteners. In addion to this, Top BrushClub understands simplicity reigns king, our plaorm exclusively selects only the most perfectitems for the male millennial based on thorough research of the dental industry. This allowsthem the luxury of having the perfect products pre-selected and bundled to meet all of their

needs. More importantly, the user also has the luxury to switch items in and out of their ownbox as customizaon is huge for millennials.



Our Bus iness model

MARKET TYPE & SIZEThe Top Brush Club nds itself providing value to users who seek a dierenated experience within the dental industry. This

is a need for all types of people but we have honed into a niche focus. The Top Brush Club user is a male under the age of34 years old and above the age of 21. This user nds value in the convenience of a subscripon based model for his dentalcare and likes to do research on his purchases. This means we must build around the concept of subscripons in the dentalindustry which is relavely undominated and hardly invesgated at this me.

Market analysis & key trendsWhat we nd most intriguing about this industry is the future projecons. The Oral Care industry has simple projeconsthat are based on populaons. As the world’s populaon grows, so does the need for dental care. Parcularly in the UnitedStates demand is aimed to grow YoY by just about 2% equally an industry gain of nearly $200 million every year.

More importantly the millennial industry, which has recently claimed the crown of the United States’ largest populaon, isheavily cultured around spending and doing so with intense levels of research. In addion to this, the industry is shiingtowards newer products that aim to disrupt the tradional market behemoths;

Natural Toothpaste has grown 50% and the most purchasing user of that is the millennialAs the industry shis paired with a millennials need to research products, there is opportunity found for a trusted outlet toprovide curated experiences based on a model of convenience.

Mintel 2015 Oral Care Studyhp://clients1.ibisworld.com/reports/cn/industry/ataglance.aspx?end=319

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Competitive advantage

The Top Brush Club advantage is solely based on being ahead of the curve and building a service for a user whodesires fantasc products but would prefer to not do the research. Considering our service does not actually produce ourown products, our value is gained by cung out the research for our users and providing them a box of items, generatedfor their specic needs, bundled and shipped on a subscripon plan.

We do not need the infrastructure to create our own items saving us insane amounts of capital on overhead and moreimportantly, we will immediate gain market share as we bring in the products, assuming they t a user's needs, that they arecomfortable with. Eventually, the Top Brush Club service could evolve into a plaorm where BOGOBrushes are oered, ifthat item brings the most value to our users. The Top Brush Club model will succeed because we are the rst of its kind. We enable a user’s freedom to choose thetop items, while saving me on pick-up and research. It is a simple service that brings convenience and customizaon,some of the leading purchasing factors for a user.

competition

One of our nearest competors isBoka. Boka is an online toothbrushsubscripon model which has evolvedinto strictly natural toothpastes, man-ual brushes and sharp branding. Bokands its greatest strengths in theirinfrastructure. Having recently con-sumed a competor, GoodMouth, theyare far ahead the compeon when itcomes down to man power. The great-est dierence between the Top BrushClub and Boka brush is the customersegments. Boka focuses heavily onfamilies and providing a customizedexperience to them. Boka faces gravechallenges in this industry as they havecreated their own products from topto boom which will require heavyamounts of capital to break users awayfrom their family brands such as Crestand Colgate.

GoodMouth was the closest compe-tor to the Top Brush Club. GoodMouthwas an online service that allowedyou to order and create subscriponpackages of just about any item on themarket. Their compeve advantagewas found through having endlessopons similar to that of a conveniencestore. Unfortunately, this very featureled them to their ulmate demise asthis made them quite undierenatedto that of a convenience store. Theylacked tracon because the servicethey oered was simply a subscriponservice of a commodized product, ofwhich similar outlets such as Amazonhave one-click ordering. GoodMouthwas later consumed by Boka which ledBoka to a great surge in man power.

Quip is a competor of the Tob BrushClub because of their hold on the sub-scripon model in the electric brushmarket. While not an immediate com-petor for our rm based on productoerings, it may be realized their idealusers may nd overlapping value inboth of our services as both are basedon convenience. As the Top Brush Clubprogram develops with a luxury prod-uct line, it can be found electric brushusers and luxury brush users may havesimilar core needs and traits. Quip’sstrengths are based heavily on theirinfrastructure as with Boka but evengreater. Quip has received $45 mil-lion in funding of which has aordedthem the ability to intensely saturatethe market on channels of which ourpresence will be low at best in the be-ginning. Our strength versus Quip is adierenated service built on curaonof top er products, hand selected for

the users varying needs.

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Mintel 2015 Oral Care Stu



Value Proposition Canvas

We look to provide millennials who struggle to have their invenve dental needs met a service that brings to life the best opons forthem, delivered in neat bundles when they need them, allowing them to experience items matched to them while saving me.

Experiments and TestS

Customer personas

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Hypothesis People would want pre-set dental boxes People needed a cheaper opon

Best to target millennials People want things delivered and in one box

Results A predetermined box is not a good idea, people want

customizaon Price doess not have to be cheap We will focus on millennials Millennials want things delivered Millennials like customizaon and research their purchases Millennials perceive themselves as busy

Experiments Customer interviews Talked to densts

Talked to dental innovators Analyzed data

ActionWe concluded that millennials were the best inial user be-cause they love a service customized for them but they lackthe me to do research on small commodized productssuch a Oral Care. We also found, to no surprise, millennialswant their Oral Care delivered.

Carl

21 - 27 No me to shop for small items Wants convenience Desires a box Lazy

Bob

28 - 34 Single - Dang “Yuppie” Works in Finance Cares for quality Convenience

Pains: Inconvenient

Shiing industry with lots of opons Poor hygiene

Gains: Customized bundles

Delivered without thought Improved hygiene

hp://moosylvania.com/millennials/Moosylvania_Millennial_Study_2015.pdhp://www.goldmansachs.com/our-thinking/pages/millennials/



Customer Channels &

Relationships

Channels Top Brush Club subscripon bundles will be distributed through commercial delivery services such as FedEx, UPS andthe USPS. The alternaves are limited as we will be distribung a box of products that is based on strict delivery dates. The distribuon of our brand will be heavily built around social channels. We will be on all of the major social networkssuch as Facebook, Twier, Pinterest, Google+, Instagram and Snapchat, all the while generang users through inbound con-tent. We aim to have YouTube videos, blogs and other informaon on the industry that will drive users towards our service. The majority of our channel partnerships will come through our delivery. Partners will be excited to score the deliveryof us because that is how these companies secure the prots of their demands. We will have no partnerships based on ourproducts because the products are not being pushed on our web service based on the highest bidder, but rather quality andcuraon based on the needs of our user. Simply that.

customer acquis ition plan Our plan of acquision is very much based on an intricate strategy of reaching millennials. Customer acquisionwill begin with on the ground markeng. This model isn’t quite repeatable for scale but is it essenal to gain our inial earlyadopters. The grass roots markeng would be based on meeng users where they are at such as college campuses and busycies. Beyond that, building an ‘insanely great’ experience will be at the cornerstone of our success in referrals. We will

build in incenves to share the word of the service.In addion to this, as menoned, we will be implemenng a social campaign that is driven based on generang

awareness in the market of our presence.

hp://www.stasta.com/stascs/193099/us-toothbrush-sales-via-dierent-sales-channels-in-2010-and-2011/

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Hypothesis

We thought that the best channels to reach millennialswould be through social media We thought the best form of delivery would be through

FedEx

Results

We found using social network channels were the op-mal way to connect with millennials based on interviews andintensive levels of research.

We also found the best thing for us was in fact to forma partnership with FedEx because they catered very wellto businesses. They allow for boxes to be branded for thecompany and have a powerful infrastructure.

Experiments

Interview millennials Database research

Research FedEx, UPS and USPS shipping partnerships

Action

We know before forming any partnerships with any com-panies it is essenal for us to rst establish and validateour business model and processes. We aim to further hone

down on our customer,c then begin discussing partnershipswith FedEx.



Revenue ModelWe imagined Top Crush Club would have a producon and subscripon revenue model. Top Brush Club rst envisionedpatenng a unique toothbrush design that would help improve dental hygiene and plasc waste. The toothbrush was sup-posed to be sold through a subscripon service every three months with other products like toothpaste, mouthwash and

oss. This box would be all wrapped up in an aesthecally pleasing package for the customer and delivered to their doorfor their convenience. Cost of design, producon, packaging, and shipping would come up to about $12 per unit and weintended to sell them for $28.75.

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Hypothesis

We thought a producon and subscripon model would bebest for Top Brush Club

Results

We found this revenue model and pricing method would notbe as successful as we hoped. Businesses with similar rev-enue models, like bogobrush were not quite as successful.

Customers were confused by how we planned to operateand did not like the idea of a pre-made package. They want-ed customizable.

Experiments

We surveyed potenal customers, spoke with densts andconnued research individually.

Action

Aer furthering our research we concluded that Top BrushClub would be an E-tail and subscripon model. An E-tailmodel is a form of retail, but is based online. This model

is ideal for customers who do not want to travel to retailstores or for businesses who do not need a brick and mortarlocaon.Our service will only be provided online and sub-scribing will be oponal for the customer because we alsoencourage one me purchases. We will no longer focus onproducon and will focus on curang a rst class serviceinstead. We will sell brand name products like crest andcolgate, but maybe unknown brands if seen t at suggest-ed retail price. If the customer spends $40 or more at thecheckout, they will receive free shipping. This goes for singlepurchases and subscripons.

30 Business Model Cases (Board of Innovaon



Strategic Partners

Partnerships will be a key part of our processes as the necessies of having a development team and a delivery team readilyavailable to scale at any point is an important piece to growth. While this is unlikely, there is no extra cost incurred by hav-ing a team around.

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In the preliminary stages of our plan-ning we outlined some of our coreneeds for the process. While our part-nerships were limited, the early stagesof our success will rely heavily on the

powerful relaonships we are able toform in partnership. Being two found-ers who lack a hard skill background inweb development, our most importantpartnership will be under web design.Our rst partnership would be in thedevelopment of the website, the back-end, the analycs and a strong modelto allow for smooth transioning inthe user experience. The risks forthe development company would bebuilding a web design for reduced cost

and long-term cash equity. Buildingthis relaonship would require theessenals of winning the NRV venturecompeon.

Our next partnership would be in thesecuring of the products availability onour website. This is equally as dicultin our model as the shiing needs ofour users will require a sleight of hand

in reaching large companies such asColgate and Crest while also allowing

for enough me to smaller compa-nies such as Hello to be prepared forsurges in demand. The risk for thesepartnerships are very low of the otherpartners as our plaorm is simply justanother place for companies to selltheir product, further expanding theirbrand reach.

The next partnership would be withFedEx. Having a reliable and con-solidated shipping force would add

incredible value to our users. The valuefor FedEx would be generated through

the long-term value. This is a basicexample of economies of scale, where-in the partnership with FedEx outlinespotenal growth and discounng bya commitment to their services. Wewould obtain this three to six monthsaer our growth as users second oralboxes begin to ship o. Taking care ofthe rst round of boxes by hand aordus the ability to pay shorter long-termcosts as we prove our business modeland made condent projecons for thefuture. Starng a partnership beforehaving orders leaves us with low lever-age in bargaining, suggesng delayeddiscussions to be of value. The risk forFedEx in this situaon is minimal as itmay be assumed their business modelis accustomed to heavy partnershipsthat aord them the ability to winwhile maintaining protable marginswhen their services are sold at dis-count.

hp://www.stasta.com/stascs/193099/us-toothbrush-sales-via-dierent-sales-channels-in-2010-and-2011



Resources, Activities,

and Cost Structure

RESOURCESKey resources to the success of the Top Brush Club are going to come through working incredibly well with limited resourc-

es. Our success is heavily based on the ability to penetrate the market and build overwhelming trust with our users. Trustdoes not come easily so our most important in-house resource will be markeng. As a team with heavy experience in designand markeng, the two founders will allocate our abilies towards building a markeng campaign that is infused with thepassion of our visions. While our abilies may be strong in this eld, this leaves us with plenty of gaps that need to be lled. As menoned, ourpartnerships will be huge in ensuring we have a strong infrastructure that is capable of scaling. We will also require some resources such as Unbounce, Google Analycs , HotJar and other user tracking devices asdata will be a huge factor in understanding our ability to generate trust within those on our website.

ACTIVITIESThe team is currently only made up of the two founders, but we plan for our rst hire to be in the realm of customer suc-cess. This role is someone who can assist in the operaonal dues of building trust with our consumer. They will be avail-able for support and chat while also hosng the capabilies of building content to generate trac.

COST STRUCTUREThe costs of our company are mostly variable. The our sales are based on a mark-up from the wholesale price of the itemswe would be selling in our boxes. Below is an example of one dental box and the costs associated with it.

In addion to this you would have the overhead costs which are presented in the budget below such as rent, online webservices, employee salary and markeng. A huge factor for keeping our costs down would be economies of scale which willcome into play as we gain more tracon.

The next page shows an example of how our cost esmates for these resources have been outlined.

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hp://www.plascsindustry.org/


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Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 T

venues 1,000 2,000 4,000 8,000 20,000 36,000 44,000 48,000 80,000 84,000 120,000 136,000

Discounts (1,000) (500) (1,000) (2,000) (7,000) (5,400) (6,600) (7,200) (20,000) (21,000) (42,000) (34,000) (

Returns

t Sales 0 1,500 3,000 6,000 13,000 30,600 37,400 40,800 60,000 63,000 78,000 102,000

erhead Expenses

Salaries & Wages 1,800 1,800 1,800 2,500 2,750 2,750 3,000 3,500 3,500 4,500 4,500 4,500

Overtime

Employer Taxes 180 180 180 250 275 275 300 350 350 450 450 450

Employee Benefits 350 350 350 350 350 350 350 350 350 350 350 350

aff Expenses 2,330 2,330 2,330 3,100 3,375 3,375 3,650 4,200 4,200 5,300 5,300 5,300

affing Percent #DIV/0! 155.3% 77.7% 51.7% 26.0% 11.0% 9.8% 10.3% 7.0% 8.4% 6.8% 5.2%

counting Fees 100 100 100 100 100 100 100 100 100 100 100 100

vertising 5,000 2,500 2,500 2,500 2,500 1,000 1,000 1,000 4,000 3,000 2,000 2,000

to Expenses 50 50 50 50 50 50 50 50 50 50 50 50

nk Fees 25 25 25 25 25 25 25 25 25 25 25 25

mputer Expenses 5,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000

uipment

urance 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000

ernet Services 5,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000

gal Fees

arketing Expenses 2,000 2,000 2,000 2,000 2,000 1,000 1,000 1,000 2,000 2,000 2,000 2,000

eals & Entertainment 200 200 200 200 200 200 200 200 200 200 200 200

fice Supplies

one 100 100 100 100 100 100 100 100 100 100 100 100

eight 500 500 500 500 500 500 500 500 500 500 500 500

nt 400 400 400 400 400 400 400 400 400 400 400 400

les Commissions

les Expenses

avel 800 800 800 800 400 800 1,500

lities 200 200 200 200 200 200 200 200 200 200 200 200

n-Staff Expenses 20,375 10,875 10,875 10,875 10,475 7,575 7,575 7,575 12,375 10,575 11,075 9,575 n-Staff Percent #DIV/0! 725.0% 362.5% 181.3% 80.6% 24.8% 20.3% 18.6% 20.6% 16.8% 14.2% 9.4%

tal Overhead 22,705 13,205 13,205 13,975 13,850 10,950 11,225 11,775 16,575 15,875 16,375 14,875

tal Overhead Percent #DIV/0! 880.3% 440.2% 232.9% 106.5% 35.8% 30.0% 28.9% 27.6% 25.2% 21.0% 14.6%

ofit before Tax (22,705) (11,705) (10,205) (7,975) (850) 19,650 26,175 29,025 43,425 47,125 61,625 87,125

ofit before Tax Percent #DIV/0! -780.3% -340.2% -132.9% -6.5% 64.2% 70.0% 71.1% 72.4% 74.8% 79.0% 85.4%

($40,000)

($20,000)

$0

$20,000

$40,000

$60,000$80,000

$100,000

$120,000

$140,000

$160,000

Sales, Overhead & Profit before Tax

Rev en ues To tal Ov erh ead Pro fi t b efo re Tax

Profit

Sales

Overhead Expenses

-10

-8

-6

-4

-2

02

4

6

8

10

1 2 3 4 5 6 7 8 9 10 11

Key Financial Percentages

Total Overhead Profit Before Tax

Staff Expenses Non-Staff Expenses

Staffing,$44,790 , 26%

Non-Staff,$129,800 , 74%

Overhead Expenses by Category

Staf fing Non-Staf f

($100,000)($50,000)

$0$50,000

$100,000$150,000$200,000$250,000$300,000$350,000$400,000

Q1 Q2 Q3 Q4

Sales & Profit by Quarter

Sales Profit

One Page Budget Works



PrototyPE & LEssons

learnedThe beginning of Top Brush Club was jumbled mess.We took many of our ideas out to the public to seewhat they thought about them and we failed miserably.Top Brush Club started with the idea of solely selling

toothbrushes with replaceable bristles and that was all.We were certain the idea was going to be a winner but

we had to make sure. We pestered people at grocerystores, surveyed moms at soccer and volleyball games,talked to densts and mentors. Our business plan andproduct was not good enough and we had to x it. Wewere put to the test when we had to nd a soluon, butwe learned a lot.

We needed a more focused target marketOur revenue model was all over the place We needed more products to please dierent types

of customers Test, test, and test again

Below is our previous prototype we no longer decidedto focus on.

About the f inal PrototypeAt Top Brush Club, we are completely focused on ourcustomer’s experience. This is why we chose a verysimplied website to ensure a plaorm that is easy tonavigate so the consumer can purchase their dentalhygiene products headache free. The color pallet iscalm with neutral colors and the dark blue was chosento add masculinity in order aract the eye of our targetmarket. Blue is also oen a color that is familiarizedwith hygiene. The logo was created for both small andlarge prints. The original logo contains a lot of informa-on, like a seal for members of the Top Brush Club tobe proud to show o. The crossing toothbrushes andsans-serif type is clean and is easily recognized whenminimalized. We know with a few tweaks here andthere, our business model and sleek design promisesTop Brush Club a successful future.

Documents

Top Brush Club Final Doc