Leoa Business Model Canvas

Lean LaunchPad
Team #5
leoa
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
Da
1
#
y
Business Model Canvas
Key Partners
Pantyhose manufacturers
Wholesale channels
Shipping companies
Internet search engines
Lawyers (patents)
Key Activities
Control of production,
manufacturing
Manage website, online

orders, and distribution
Branding strategy
Marketing and promotion
Product and packaging

design
Value Propositions
Direct-to-Consumer
Pantyhose will last much

longer and save consumers
money in the long-term
Feet will not slip in heels
Machine washable
Easy-to-store packaging
Easy-to-wash laundry bag
Customer Relationships
Keep: Guarantee, product

quality
Grow: Word of mouth,

increased color/design
variety, subscription rewards
Key Resources
Physical: Web
infrastructure, retail outlets
Intellectual: Patents and

brand copyrights
Human Resources:
Marketing and operations,
development partner
Financial: Seed capital
Get: Free products at

professional conferences,
free branded accessories
(storage case and washing
machine bag), coverage from
fashion blogs, Search Engine
Optimization
Drive traffic to retail channels
Direct-to-consumer
Established retail outlets
Direct marketing
Social media
1-year guarantee that

pantyhose will not run
Cost Structure
Fixed: Product & packaging development, patent application, patent lawyers

fees, infrastructure (website), accounting system
Variable: Materials, manufacturing, packaging, distribution, marketing, operations
Direct-to-Consumer
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
Wholesale Channels
Customer Segments
Home shopping networks
Drug stores
Department stores
Revenue Streams
Direct-to-Consumer revenues
Wholesale to retailer revenues
Subscription revenues
Da
2
#
y
Key Partners
Pantyhose
manufacturers
Wholesale channels
Shipping companies
Internet search engines
Lawyers (patents)
Key Activities
Product development
Partner with quality

manufacturer
Control of production,
manufacturing

Value Propositions
Direct-to-Consumer

Machine washable
Branding strategy
Marketing / promotion
Packaging
Physical: Web

brand copyrights
Human Resources:
development partner

longer and save
consumers money in the
long-term
Key Resources
Get: Professional
conferences, trade shows,
free branded accessories,
fashion blogs, SEO,
magazines

quality

variety, subscription
rewards
Direct-to-Consumer
Targeting busy, female

business professionals
Employed females in the

age range of 20-30s 25-55

but currently buys
pantyhose at the drugstore
for convenience
Channels
Wholesale Channels
Drive traffic to retail
channels
Customer Segments
Wholesale Channels
Direct-to-consumer
Drug stores
Direct marketing
Social media
Mass retailers (Target,

Wal-Mart, Costco)

Department stores
Financial: Seed $
Cost Structure
Fixed: Product & packaging development, patent application, patent

lawyers fees, infrastructure (website), accounting system
Variable: Materials, manufacturing, packaging, distribution, marketing,

operations
Revenue Streams
Target price $20
Da
3
#
y
Key Partners
Pantyhose
manufacturers
Wholesale channels
Shipping companies
Lawyers (patents)
Key Activities
Product development

manufacturer

Branding strategy
Packaging patent
Value Propositions
Direct-to-Consumer

longer and save
consumers money in the
long-term
Machine washable
Physical: Web

brand copyrights
Human Resources:
development partner
Get: Professional
conferences, trade shows,
free branded accessories,
fashion blogs, SEO,
magazines

quality

variety, subscription
rewards
Key Resources
Direct-to-Consumer

age range of 25-55 25-40

Sometimes reads blogs
Tech savvy
Channels
Wholesale Channels
channels
Customer Segments
Wholesale Channels
Direct-to-consumer
Direct marketing

Wal-Mart, Costco)
Social media
Department stores .com

department store sites

Financial: Seed $
Cost Structure


operations
Revenue Streams
Target price $20 $15
Da
4
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y
Key Partners
Pantyhose
manufacturers
Wholesale channels
Shipping companies
Lawyers (patents)
Key Activities
Product development

manufacturer

Value Propositions
Direct-to-Consumer
Branding strategy (leos)
Machine washable
Packaging patent
Packaging doubles as
easy-to-wash laundry bag
Physical: Web

brand copyrights
Human Resources:
development partner
Pantyhose will last longer

and save consumers
Key Resources
Get: conferences, trade

shows, free branded
accessories, fashion
blogs, SEO, magazines,
graduate schools

quality, easy & painless
shipping & return (free)

age range of 25-40
(employed professionals
and graduate students)

(willing to pay a small
premium)
Tech savvy
Financial: Seed $
Channels


operations
Wholesale Channels
Direct-to-consumer
Established retailers
Direct marketing

Wal-Mart, Costco)
Social media and blogs
.com department store

sites
1-year Guaranteed that

satisfaction
Cost Structure
Direct-to-Consumer

more color/design variety,
add a kids/toddlers line
(for dance & normal wear)
Wholesale Channels
channels
Customer Segments
Revenue Streams
Target price $15
Da
5
#
y
Key Partners
Pantyhose
manufacturers
Wholesale channels
Shipping companies
Lawyers (patents)
Key Activities
Product development

manufacturer

Branding strategy (leos)
Value Propositions
Direct-to-Consumer
Eliminate the main pain

points women have with
pantyhose
Pantyhose will last longer
and save consumers
Key Resources
Physical: Web
Intellectual: Patents
Trademarks and brand
copyrights
Human Resources:
development partner
Financial: Seed $
Get: conferences, trade

shows, free branded
accessories, fashion
blogs, SEO, magazines,
graduate schools

quality, shipping & return
(free), loyalty program
Females in the age range

of 25-40 (employed
professionals and
graduate students)

(willing to pay a small
premium)
Tech savvy
Channels


operations
Wholesale Channels
Direct-to-consumer
Direct sales force
Direct marketing
Social media and blogs
Guaranteed
Cost Structure
Direct-to-Consumer

more color/design variety,
add a kids/toddlers line
(for dance & normal wear),
plus size line
Wholesale Channels
channels
Customer Segments

Wal-Mart)
.com department store

sites
Revenue Streams
Price $15 $20, 200% markup
~$5 cost = $15 profit
Price of $11.75
~75% gross margin
~$5 cost = $6.75 per pair
~57% gross margin
Key Learnings
What?
1
Messaging is key,
nice to have
features arent.
How did we find out?

Customers and CPG
experts
Women need to
know HOW and
WHY.
Customers and CPG

experts
Save the retail

channels for later.
Distributors and retail

outlet experts /
entrepreneurs
Build on an
emotional
experience.
Customers and CPG

experts
Implications?
Focus on core value prop: non-run

Non-slip feature removed
Storage box not valued
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
Add personalized messaging and

loyalty program
Target Working women and students
(ages 25-40)
Key Learnings Customer Archetypes

Allison
Grad Student, 27
Sonia
Lawyer, 32
Established or career-minded women

Aged 25-40
Shops online, tech savvy
Doesnt really watch TV but uses social media
Reads blogs, in step with the times
Goes to coffee shops regularly
Goes to occasional evening events
Key Learnings Buying Behavior

Current
Future
leoa
Purchasing only as needed (unplanned)
Planned purchase
Look for a low price tag because they

dont 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.
Final Business Model Canvas

Key Partners
Key Activities
Pantyhose
manufacturers
Branding strategy
(leos)
Shipping companies
Product development
manufacturer
Value Propositions
Eliminate the main pain Get: Conferences,

trade shows, blogs,
points women have with
SEO, magazines,
pantyhose
graduate schools
Pantyhose will last
Keep: Guarantee,
longer and save
shipping & return (free),
consumers money in
loyalty program
the long-term
color/design variety,
kids/toddlers line
(dance & regular),
plus size line
Manage website,
online orders, and
distribution
Key Resources
Customer Segments
Females in the age

range of 25-40
(employed
professionals and
graduate students)
Values quality over
price (willing to pay a
small premium)
Tech savvy
Channels
Physical: Web
Direct-to-consumer
Intellectual:
Trademarks and brand
copyrights
Direct sales force
HR: Marketing and

operations,
development partner
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, operations
Revenue Streams
Price $20
~$5 cost = $15 profit
~75% gross margin
The Product
Build trust.
Communicate LeoKnit quality

which will last longer and will not
run
LeoKnit
Provide an
experience.
Packaging
Personalization
New name leos
instead of pantyhose
Educate.
leoa
Machine washable bag

and instructions
Experience with leoa is
simple
With you for the long run.
l e o a
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
Distribution & Pricing

Direct-to-Consumer
Online mail orders
Free shipping and returns
Campus Sales Force

Take orders directly from students
On-site sales force during recruiting
season
Pricing
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

KEEP
Experiential Purchase
Personalized. Memorable. Educational.
Loyalty Program
l e o a R E W A RD S
C AR D
MON
TUES
WED
THUR
S
FRI
1st Pair
2nd
Pair
3rd Pair
4th Pair
5th Pair
FRE
E!
Pair for every work day
Refer 2 friends,
get 1 free pair!
Satisfaction guaranteed
Free shipping
Simple returns
Referral
Referral

GROW
Channels
Mass Retail
dotcom
Product
New colors
Designs
Feature variety (control
top, non-control top,
sandlefoot, reinforced
toe, etc)
People
Toddlers line with nonslip grips

Kids line (dancers)
Plus size line
Targeted ads for people
who dont wear
pantyhose at all
because they hate
whats out there
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
Appendix
Market Size
Total Addressable Market
Served Available Market
$1.5B
51.3M employed
females ages 18-54
Averaging $30 spent
on pantyhose per
year
IBISWorld Hosiery
Mills in the US,
November 2013
$471M
$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.
Discount stores &

mass
merchandisers
Department stores
Online
Competition
leoa
Fast
Fashion
Stores
Premium
Stores
Online
Brands
Department
Store
Brands
Drug Store
Brands
Brand Awareness
Affordability
Quality
Storage / Washing
Non-Slip Feature
Competition
Who They Are
What Theyre Missing
Retail / Online Stores

Affordability
Convenience
High price points
Reliability
Cant always find

basic print / colors
Stores are not

designed for
shoppers on the go
Drug Stores
Quality
Efficiency
Products are typically

cheap and likely
wont 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

Leoa Business Model Canvas

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Lean LaunchPad

The new pantyhose. With you for the long run.

Alanna Lopes Souza | Amy Kwan | August du Pont

Business Model Canvas

Internet search engines

Manage website, online

Marketing and promotion

Product and packaging

Pantyhose will last much

Feet will not slip in heels

Easy-to-wash laundry bag

Keep: Guarantee, product

Grow: Word of mouth,

Intellectual: Patents and

Financial: Seed capital

Get: Free products at

Drive traffic to retail channels

Established retail outlets

1-year guarantee that

Fixed: Product & packaging development, patent application, patent lawyers

Variable: Materials, manufacturing, packaging, distribution, marketing, operations

Targeting busy, female

Age range 20-30s

Values quality over price

Home shopping networks

Wholesale to retailer revenues

Business Model Canvas

Internet search engines

Partner with quality

Manage website, online

Feet will not slip in heels

Easy-to-wash laundry bag

Intellectual: Patents and

Pantyhose will last much

Keep: Guarantee, product

Grow: Word of mouth,

Targeting busy, female

Employed females in the

Values quality over price

Home shopping networks

Established retail outlets

Mass retailers (Target,

1-year guarantee that

Fixed: Product & packaging development, patent application, patent

Variable: Materials, manufacturing, packaging, distribution, marketing,

Target price $20

Wholesale to retailer revenues

Business Model Canvas

Partner with quality

Manage website, online

Pantyhose will last much

Intellectual: Patents and

Keep: Guarantee, product

Grow: Word of mouth,

Employed females in the

Values quality over price

Sometimes reads blogs

Home shopping networks

Established retail outlets

Mass retailers (Target,

Department stores .com

1-year guarantee that

Fixed: Product & packaging development, patent application, patent

Variable: Materials, manufacturing, packaging, distribution, marketing,