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T y l e r & B r o w n & | & L a u r e n a & L a u & | & A n t h o n y & L e g a u l t & | & A n n i k a & R o b e r t s o n &

08!Fall&

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Executive)Summary)!Chaps&Lip&Balm&offers&a&specialized&line&of&cocktail6flavored&products&for&men&and&women.&By&creating&strong,&humor6based&branding&that&creates&a&sense&of&sophistication;&we&believe&that&we&can&convince&people&to&use&our&products&to&better&their&confidence&and&appearance.&!!

!The! problem!with! other! lip! balm! companies! is! that! they! are! boring,! female8focused,! and!only! built! around! their! product.! At! Chaps,! we! are! more! than! just! a! product;! we! are! a!lifestyle.! We! promote! our! key! values! of! sophistication,! classiness! and! confidence! by!constantly! engaging! our! customers! through! humor,! a! strong! desirable! messaging,! and!exciting!promotions.!For!example,!we!involve!our!customers!in!our!flavor!selection!process.!!!We!are!the!only!company!to!offer!a! line!of! lip!balm!that!has!the!initial!appeal!of!a!novelty!brand,! but! is! designed! for! function! through! its! all8natural! formula! and! appealing! flavor!choices.! Our! initial! flavors! are! based! on! cocktail! drinks! such! as! Hard! Cider,! Peppermint!Schnapps,! Absinthe,! and! Whiskey! Sour.! Our! Lip! Balm! products! are! made! with! vegan!ingredients!such!as!candela!wax,! jojoba!oil,!and!avocado!butter.!They!smell!great,!and!are!extremely!effective!in!healing!chapped!lips.!!We!source!all!of!our!raw!materials!from!local!suppliers,!which!results!in!a!fast!turnaround!cycle! and! lean! inventory!management.! Using! our! base! design,!we! can! announce,! develop!and!ship!a!new!flavor! in! less!than!7!days.!We!manufacture!the!product!ourselves,!and!are!capable! of! manufacturing! up! to! 500! tubes! per! 48hour! period.! We! sell! our! product! by!developing!special! flavors! for!key!social!media! influencers,!and!leveraging!their!audiences!to!sell!our!product.!Instead!of!earning!a!share!of!the!profits,!they!agree!to!donate!their!share!to!a!charity!of!their!choosing,!boosting!their!personal!popularity!and!image.!This!results!in!positive!PR!and!a!whole!lot!of!balm!!!!!

VC!Per!Tube:!$1.05! Selling!Price:!$4.50! Profit!Margin:!$3.45!

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The)Problem)Although! the! lip!balm!market! is!obviously!quite! saturated!with!products,! they!are!almost!exclusively!used!by!and!made!for!women.!When!it!comes!to!purchasing!lip!balm,!there!are!simply!not!many!choices!for!men.!This!is!not!surprising,!as!the!woman’s!Lip!care!industry!is!nearly! ten! times! larger! than! that! of! its! male! predecessor.! Furthermore,! the! fundamental!nature!of!lip!balm!can!be!of8putting!to!men:!they!are!made!to!make!the!lips!soft,!smell!nice,!and!even!shiny.!Men!are!still!human!–!their!lips!still!get!chapped.!So!the!question!becomes!what!would!it!take!for!a!man!to!buy!a!tube!of!lip!balm?!!Companies!such!as!Chapfix!and!Everyman!Jack!have!attempted!to!create!a!product!that!fit!this!solution,!but!have!failed!to!sell!their!product!because!they!assumed!a!sleek,!fashionable!product!would!be!more!attractive!than!a!humorous!one.!!!

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Our!original!solution!was!to!market!Lip!Balm!to!men!using!a!new!approach:!humor.!Men!love!humor,!especially!when!it!comes!to!skincare.!Encouraged!by!the!use!of!humor!in!the!recent!revivals!of!the!Old!Spice!and!Axe!brands,!we!creating!Chaps!Lip!Balm,!and!we!took!to!the!streets!to!test!the!interest!of!the!male!market!in!our!flashy!product.!!

!After! conducting! in8person! interviews! and! online! surveys! with! young! adult! males!throughout!the!United!States,!we!gained!two!valuable!pieces!of! information:!1)!men!loved!the!branding,!however!2)!they!weren’t!always!motivated!to!make!the!purchase.!This!lead!to!our!most!important!insight:!men!simply!don’t!see!lip!balm!as!a!necessity.!Occasionally,!their!lips! get! chapped,! in! which! case! they! go! to! their! nearest! drug! store! and! purchase! the!cheapest!balm!they!can!find.!As!a!premium8quality!product,!we!did!not!want!to!go!the!route!of!competing!on!price.!Too!many!lip!balms!are!already!competing!on!this!level,!and!there!is!no!way!a!small!startup!would!be!able!to!operate!on!small!margins.!We!were!stuck,!until!a!focus!group!with!a!UW!sorority!changed!everything.!!

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Solution!It!was!only!by! luck! that!our! impromptu! focus!group!ever!occurred.!Originally,! one!of!our!team!members!was!with!his!fraternity!on!an!exchange!(planned!co8ed!event!with!a!sorority)!when!a!girl! caught! sight!of! the! lip!balm!he!happened! to!be!using.!As! soon!as! she! saw! the!little!monocle!and!mustache,!she!instantly!lit!up.!She!immediately!showed!her!friends,!and!wanted! to! know! where! he! had! purchased! it! so! she! could! buy! some! for! herself! and! her!boyfriend.!Tyler!wasted!no!time!in!conducting!a!focus!group!with!the!girls,!and!after!a!few!minutes,!he!had!the!answers!he!was!searching!for.!!

Despite!it’s!masculine!branding,!our!Lip!Balm!is! extremely! popular! with! women! because!they! see! it! as! a! great! gift! idea! for! their!significant! other.! Furthermore,! they! also! see!the!brand!as!being!a!great!fit! for!themselves.!Going! back! to! our! previous! insights,! it!seemed!to!make!a! lot!of!sense.!Guys!love!the!fact!that!they!are!getting!a!lipbalm!that!is!not!the! basic,! inexpensive! product! they! usually!have!on!them,!and!girls!have!been!longing!for!something! they! haven’t! seem! before.!Although! men! are! unlikely! to! purchase! our!lip! balm! on! their! own,! they! are! extremely!

excited! to! receive! it! as! a! gift.! To! men,! having! a! Chaps! Lip! Balm! is! not! just! a! matter! of!function,! it! is! a! statement! of! social! superiority! –! it! means! they! are! important! enough! to!someone!to!have!received!such!a!gift,!and!it!is!also!a!great!social!icebreaker.!A!man!receiving!a!Chaps!is!the!equivalent!to!a!woman!receiving!flowers.!But!women!aren’t!only!interested!in!purchasing!our!product!for!their!significant!other;!they!want!one!for!themselves!as!well.!!!Purchasing!a!tube!of!Chaps!is!more!than!just!a!great!gift! idea.!Our!product!gives!women!a!chance!to!not!just!care!for!one!man,!but!for!all!the!important!men!in!their!lives.!Today,!there!are!countless!fundraisers!that!are!excellent!in!raising!awareness!for!women’s!health!issues.!Men! are! even! supporting! a! significant! portion! of! these! fundraisers,! such! as! through! the!National!Football!League’s!partnership!with!Breast!Cancer!Awareness!Month.!With!the!help!of! a! philanthropic! partnership,! we! will! offer! select! products! that! will! give! women! the!opportunity! to! return! the! favor! to! men! by!raising!awareness!to!support!for!men’s!health!issues.! Women! can! feel! even! better! about!their! purchase! knowing! that! their! money! is!going! towards! an! organization! that! betters!men’s!health.!!!Engaging! branding,! an! active! lifestyle,! and!strong! philanthropic! cause! make! Chaps! Lip!Balm! the! classiest,! silliest,! and! ultimately!most!attractive!choice!on!the!lip!balm!market.!!!)))

Girls)really)like)moustaches)

The)NFL’s)Breast)Cancer)awareness)merchandise)

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Business)Model)It!is!no!secret!that!there!are!several!choices!when!it!comes!to!Lip!Balm.!That’s!why!branding!is!exceptionally!important!with!our!company.!Not!only!should!our!brand!have!a!great!look!and! feel,! it!needs! to!be!bold!enough! to! cut! through! the!marketing! clutter.!This! is!why!we!have! chosen! to! create! flavors! exclusively! after! cocktails.! This! allows! us! to! maintain! a!consistent! style! while! having! the! flexibility! to! create! any! type! of! flavor! we! would! like.!People! love! trying! out! new! drinks,! and!we! believe! that! this! enthusiasm!will! translate! in!their!choice!of!lip!balm.!!!

Initially,!we!will!be!offering!two!products.!Out! first!product! is! called! the! “Frostbite!Pack”! that! features!sweet,! delicious! flavors! such! as! Peppermint!Schnapps! and! Hard! Cider! targeted! towards! girls!that! want! lip! balm! for! themselves.! Our! second!product!called!“Top!Shelf”! is!a! themed!pack!of! two!lip! balms! featuring! flavors! such! as! Absinthe! and!Whiskey!Sour!and!is!targeted!for!girls!who!want!to!buy! something! fun! for! their! significant! other.!Knowing! that! the! Top! Shelf! pack! will! likely! be!viewed! as! a! gift! idea,! we! chose! flavors! that! are!masculine,! bold,! and! likely! to! cause! a! few! laughs.!With! the! Frostbite! pack,! we! focused! more! on!making! the! flavors! sound! really! good,! as!we! knew!that! women! are! much! more! interested! in! actually!using!the!product.!!!One! advantage! of! our! company! is! that! it! is!extremely!easy!for!us!to!come!out!with!new!flavors.!We! have! a! solid! design! that! only! needs! color!modification!and!a!slight!tweak!to!our!base!formula.!Due! to! the! fact! that! we! also! create! the! formula!ourselves,! we! are! able! to! create! new! flavors! in! a!short!amount!of!time.!!

!Another!advantage!of!our!company! is! that!we!source!our!production!materials! from! local!Seattle!distributers.!We!purchase!our! formula! ingredients!and!essential!oils! from!a!Zenith!Supplies,! located! only! three! miles! away! from! the! University! of!Washington! Campus.!We!source! our! tubes! in! bulk! from!SKS!bottle,! located! in! downtown! Seattle.!We!purchase! our!shipping!material!from!U8Line!shipping!supplies!in!Auburn,!WA.!Our!special!holiday!&!retail!packaging!is!sourced!from!the!Revere!Group!in!downtown!Seattle.!Additional!materials!are!only!a!short!drive!away,!enabling!us!to!maintain!a! lean! inventory!without!worrying!about!delaying!shipping!or!customer!back8ordering.!!!A!quick!turnaround!ability!and!flexibility!with!flavors!allows!us!to!target!niche!markets!with!special!flavors.!Limited!edition!themed!flavors!are!a!perfect!way!to!continue!to!drive!repeat!sales!from!established!customers!as!well!as!new!sales!from!niche8customers.!We!can!create!capitalize! on! holidays! such! as! Valentine’s! Day,! New! Years,! 4th! of! July,! etc.! Long! term,!we!want!to!make!custom!celebrity!flavors!to!tap!into!the!massive!following!associated!with!A8List!Hollywood!actors.!!

The)Frostbite)pack)is)targeted)at)girls)

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)Underlying)magic!Our! formula! is!made! from!only! the! finest!and!safest!natural!oils,!butters,! and!wax.!Unlike!other! lip! balm! companies,! you!will! not! find! any! chemicals! or! artificial! ingredients! in! our!product.!We! document! all! of! our! attempts! and! test! them!with!males! and! females! before!moving!forward!with!any!flavor.!Our!hand!crated!lip!balm!is!safe!for!everyday!use!and!will!not!come!with!the!skin!side!effects!of!other!lip!balm!companies!due!to!artificial!ingredients.!Consumers!can!feel!good!about!purchasing!and!using!Chaps!Lil!Balm,!and!our!data!supports!that! having! “avocado! butter”! (in! our! base! formula)! increases! the! likelihood! of! a! sale! for!certain!customers.!Just! like!every!other!Lip!Balm!company,!we!are!required!by!the!FDA!to!disclose! our! ingredients! on!our!product.! This! strengthens! our!brand! image,! as! customers!see!they!are!getting!the!best!quality.!!!While! disclosing! our! ingredients! on! our! tube! does! give! away! some! of! our! formula,! it! is!important! to! point! out! that! our! exact! proportions! are! not! disclosed,! and! that!we! are! not!required!to!disclose!the!exact!flavor!oils!we!use!to!scent!our!product.!!We! create! our! flavors! from! scratch! in! the! kitchen,! using! proper! equipment! and! clothing.!Safety!precautions!and!sanitation!practices!are!taken!to!ensure!safe8use!and!freshness.!!

While! our! formula! is! fantastic! in!itself,! it! is! not! our!primary! selling!point.!The!true!magic!of!Chaps!Lip!Balm! is!our!brand! image,! and!our!relationships!with!key!influencers.!We!have! strong!evidence! that!our!mustache! design! is! socially!preferred!and!appealing!to!a!large!market.! The! logo! as! depicted! on!the! tube! includes! a! sleek,!monopoly8man! style! monocle,! a!groomed! mustache,! and! a! bowtie!to! represent! our! lifestyle8brand!image:! to! combine! classy! and! fun.!Our! flavors! are! terrific! and! allow!consumers! variety! and!excitement.! The! design! ensures!the! ongoing! experience! for! the!consumer.! Eventually,!we!want! to!make! our! product! even! more!special!by!creating!custom!top8hat!caps! for! our! tubes.! Doing! so! will!allow! us! to! maintain! more!protection!over!our!design,!as!it!is!distinct!and!unique!!

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3D)rendering)of)our)proposed)custom)topNhat)cap)

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!Marketing)and)Sales)We!plan! to! promote! Chaps! Lip! Balm! and! distribute! our! product! using!multiple! channels.!During!the!holiday!season,!our!primary!channel!will!be!through!selling!our!product!at!retail!stores.!We!have!already!contacted!stores!in!Seattle!including!the!UW!Bookstore,!Fuego,!and!Fireworks.!We!plan!on!contacting!more!stores!and!boutique!shops!that!we!believe!would!be!a!great!place!to!reach!our!customers.!Other!retail!stores!we!plan!on!contacting!include!Art!of! Shaving,! Etsy,! Spencers,! Urban! Outfitters,! Sole! Food,! and! Target.!We!will! measure! the!effectiveness!of!these!methods!by!looking!at!our!profits!and!determining!how!many!tubes!of!Lip! Balm! we! see! fit! to! sell! in! each! store.! As! of! now,! we! are! experiencing! success! in!partnership!with!the!UW!Bookstore!to!sell!our!product!in!their!stores!on!University!Way!in!Seattle,!the!HUB!on!Seattle’s!campus,!and!possibly!the!bookstore!at!the!UW!Tacoma!campus.!!!

Another! strategy! we! will! focus! on!includes! selling! to! people! through! the!Internet!and!social!media!platforms!such!as! Facebook! and! Twitter.! We! have!created! a! Facebook! page! that! includes!photos,! promotions,! classy! quotes,! and!flavors!for!our!product.!Furthermore,!we!have! created! a! website! for! our! product,!through!which! our! customers! are! easily!able!to!order!the!lip!balm!and!learn!more!about! the! company.!We!plan!on!offering!exclusive! flavors! only! though! our!website! to! further! drive! traffic! on! this!platform.!During!the!start!of!online!sales!we!are!going!to!provide!a!promo!code!to!our!customers!to!buy!Chaps!lip!Balm!at!a!discounted! price! ($5! per! 28pack! instead!of! $9).! Additionally,!we! have! recognized!

that! an! initial! target! market! for! our! product!includes! college! age! women! in! the! Greek!Community.! Thus,! in! order! to! show! them! our!product! we! will! go! to! sororities! and! give!presentations! to! them! about! Chaps! Lip! Balm.!This! allows! us! to! interact! directly! with! the!customer,! and! we! can! provide! them! with!promo! codes! as! an! incentive! to! order! the! lip!balm! on! the! website.! We! have! already!promoted! our! product! to! Alpha! Chi! Omega!sorority! and! have! received! strong! interest! in!the!brand.!We!will!begin!accepting!pre8sales!for!out!products!the!last!week!of!November.!!!)

Screenshot)of)our)website)

Screenshot)of)our)Facebook)Page)

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)Competition)Our! direct! competitors! are! novelty8flavored! lip! balm! items! available! via! the! Etsy!ecommerce!community.!This!community!features!products!such!as!frog!flavored!lip!balms.!These!products!are!often!made!by!single!business!owners!and!feature!ineffective!branding!as! well! as! little! to! no! promotion.! Despite! this! fact,! these! lip! balms! are! still! selling! at!impressive!rates.!Due!to!our!strong!branding!and!specific!target!market,!we!believe!that!the!perceived! value! of! Chaps! Lip! Balm! will! be! much! greater! than! the! perceived! value! of!individual!Etsy!items.!Outside!of!Etsy,!the!main!novelty!brand!is!Accoutrements,!a!supplier!of!Bacon!Balm!and!Pickle!Balm.!This!company!targets!online!sales!and!some!retail,!with!a!large! presence! in! joke! shops.! The! main! difference! between! these! flavors! and! our! own!product! is! that! they! are! only! intended! to! be! humorous,! while! ours! is! also! designed! for!serious,!repeated!use.!!!

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!Our!other! competitors! are!Burt’s!Bees!and!EOS.!These!are!other! lip!balm!brands! that! are!very! popular! among! our! target! customers.! Instead! of! placing! our! product! in! retail! stores!that!sell!many!brands!of!lip!balm,!we!are!targeting!boutiques!that!would!want!our!product!because!of!its!uniqueness!in!being!a!cocktail!flavored!lip!balm.!!Other!popular!brands!of!lip!balm!that!are!competitors!include!Nivea,!Palmer’s,!and!Blistex.!!Other!competitors!include!any!type!of!gift!idea!for!a!significant!other.!Such!products!could!include!I8phone!cases,!funny!toys,!bottle!openers,!key!chains,!lights,!etc.!!)))

Hurraw!)Lip)Balm.)Our)High)Quality)Vegan)competitor)

Scotch)flavored)lip)balm.)An)Etsy)BestNseller)

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)Management)Team)

Tyler) Brown! is! the!Chief!Executive!Officer! and! idea!man!behind!our! product.! A! Cinemedia! major! and! Entrepreneurship! minor,!Brown!brings!an!incredible!combination!of!design!and!drive!to!the!team.!Chaps!Lip!Balm!was!conceptualized!when!he! saw! the!need!for!a!manly!lip!balm,!and!his!creativity!has!enabled!him!to!see!the!product! in! different! ways,! especially! as! our! market! expands! to!women.!Brown!is!the!head!of!the!graphic!design!component!of!our!product,!generating!digital!proofs,!labels,!and!website!graphics.!In!building! our! website! he! has! brought! an! exciting! interactive!element! to! our! product.! He! keeps! legal! and! FDA! issues! in! check!and!provides!direction!and!leadership!within!the!team.!!!Laurena) Lau! is! the! Chief! Marketing! Officer.! A! Communications!major,! Entrepreneurship! minor,! and! Sales! Certificate! contestant,!Lau! is! well8prepared! for! her! role! on! this! team.! She! has! worked!tirelessly!to!create!a!marketing!plan!for!the!entire!team!to!execute!under!her!direction.!She!has!coordinated!face8to8face!meeting!with!Greek! chapters! and! meetings! with! retail! stores! in! the! area.!Together! with! Chief! Financial! Officer! Anthony! Legault,! the! two!have!been!able!to!form!contracts!with!the!UW!bookstore.!Lau!is!a!well8organized,!creative!team!player.!!!Anthony) Legault,! Chief! Financial! Officer! has! undertaken! much!more! than! managing! our! finances.! Legault! is! also! our! in! house!manufacturer,! creating! the! formulas,! flavors,! and! assembling! the!tubes.!Because!he!handles! the! raw!materials,!he!knows! the!exact!budget! we! need! to! produce! our! lip! balms.! He! and! our! CEO! put!together! a! preliminary! budget! this! quarter! in! order! to! move!forward! with! our! product.! Legault! has! made! a! huge! effort! in!market!research!in!partnership!with!CMO!Laurena!Lau.!His!tireless!efforts! to!make! our! product! better! is! a! driving! force! behind! the!presale!success!of!Chaps!Lip!Balm.!!!Annika) Robertson! is! the! Chief!Operations!Officer! for! Chaps! Lip!Balm.! She! handles! the! logistical! side! of! the! company,! managing!public! relations,! paperwork,! and! partnerships.! Most! recently!Robertson! has! undertaken! forming! a! partnership! with! a!philanthropic! organization.! She! is! in! the! process! of! securing! a!marketing! and! sales! percentage! deal! with! the! Fred! Hutchinson!Cancer!Research!Center.!This!partnership!is!projected!to!be!a!part!of! the!February!marketing! campaign! that! she! is! collaborating!on!with!Lau!and!her!contact!at!the!Fred!Hutchinson!Cancer!Research!Center.! Robertson! has! precise! attention! to! detail! and! a! strong!passion!for!giving!back!to!the!community.!Her!effort! to! tie!Chaps!Lip! Balm! in! with! a! charity! are! positively! branding! the! company!and!exposing!the!product!to!a!larger!market!of!consumers.!!!

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!Financial)Projections))Our!main!channels!of!distribution!are!online!and!in!retail!stores.!In!retail!locations,!we!will!offer!a!standardized!main! line!of! lip!balm!products! in!boxes!containing!12!tubes!each!and!four!different!flavors.!We!are!aiming!to!split!revenues!with!businesses!around!a!50/50!rate.!We!suggest!an!MSRP!of!$4.50!per!lip!balm!tube!in!retail!locations.!The!average!cost!to!make!each!tube!is!$1.05.!If!we!scale!up,!we!believe!we!can!drive!this!price!down!by!15%.!For!now,!we!are!looking!to!sell!each!box!of!tubes!to!retailers!for!a!wholesale!rate!of!$2.25!per!tube.!We! are! currently! working! to! finalize! an! initial! test! order!with! the! UW! bookstore! of! 144!tubes! to! be! sold! in! 3! locations! including! UW! Seattle,! UW! Tacoma.! We! are! planning! on!working!out!similar!quantities!with!local!retail!chains!of!similar!size!such!as!Fireworks!and!local!urban!outfitter!chains.!All!in!all,!we!hope!to!have!our!product!in!10!retail!locations!by!the!holiday!season,!each!purchasing!an!average!of!three!to!four!boxes!of!sixteen!units.!This!translates!to!revenues!of!$144!per!retail!location.!!!We!will!also!be!selling!our!product!packs!online,!offering!limited!edition!flavors!that!are!not!available!in!retail!locations.!Because!we!do!not!have!to!go!through!a!retail!chain,!we!are!able!to!turn!much!higher!profit!margins!($5.05!gross!margin!per!pack!that!sells!for!$8).!We!will!charge!$2.00!for!shipping,!which!is!sufficient!to!break!even!with!our!shipping!costs!on!a!per8unit! basis.!We! estimate! online! sales! to! come! from! sorority! girls!we! present! to! as!well! as!friends!and!family!we!advertise!to.!Out!of!the!80!girls!we!presented!to!at!Alpha!Chi!Omega!sorority,!46!said!they!would!purchase!our!pack.!Although!these!are!encouraging!numbers,!we!expect!to!see!10%!sales!rate!to!sorority!girls!we!present!to.!Applying!this!percentage!to!sororities!we!have!presentations!scheduled!with!helps!us!refine!our!projected!sales!in!units.!!!In!February,!we!are!launching!a!partnership!with!the!Fred!Hutch!Cancer!Research!Center!in!which!we!will!make!a!special!pack!of! lip!balms!themed!around!Men’s!health!and!donate!a!percentage!of!our!revenue!to!the!organization.!Fred!Hutch!has!agreed!to!promote!the!pack!through! their! twitter! feed! (11,100! followers)! and! their! Facebook! Page! (15,500! likes).!Additionally,! they! will! be! promoting! the! pack! through! direct! sales,! and! outlets! of!supporters.!!!We!also!anticipate!the!possibility!of!gaining!significant!sales!numbers!through!PR!channels!such! as! news! websites.! ! One! particular! website! we! have! identified! is! Seattle’s! D8List!Magazine,!a!magazine!that!prides! itself! in!being!Seattle’s!premiere! life8style!magazine.!We!are! also! looking! into! a! partnership!with!D8List!where!we!would! offer! tubes! as! give8away!items!at!exclusive!D8List!events.!!!Long! term,!our!goal! is! to! steadily! increase! the! influencers!we!partner!with.!Currently,!we!have! a! strong! connection! to! Will! Ferrell! through! his! non8profit! organization! Cancer! For!College.!His!board!is!interested!in!pursuing!the!idea!of!creating!a!“Ron!Burgandy”!flavored!Lip!Balm!back.!This!is!a!huge!deal!for!our!company,!as!a!successful!campaign!with!one!A8list!celebrity! will! likely! lead! to! successful! partnerships! with! others.! We! envision! one! day!offering!a!themed!lip!balm!back!for!multiple!celebrities!who!we!believe!embody!our!vales!of!classiness! and! sophistication.! These! partnerships! would! require! a! sound! manufacturing!process,!so!we!are!waiting!to!move!forward!until!we!have!found!a!way!to!meet!estimated!demand!requirements.!We!anticipate!beginning!the!scaling!process!in!March!as!we!exit!the!Create!a!Company!Class!and!establish!ourselves!as!our!own!legal!entity.!!!

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! Feb.)2015:)Partnership!with!Fred!Hutch!to!support!Men’s!Health)! March)2015:)Secure!additional!investment!for!up8scale))! April)2015:)Will!Ferrell!shares!Ron!Burgundy!pack!with!10m!Facebook!fans!! May)2015:)First!Major!retail!store!deal!complete:!Urban!Outfitters!)! June)2015:)Second!celebrity!pack!released.)Summer!flavors!released)! July)2015:)Forth!of!July!promotion.!Additional!National!retailer)! Aug)2015:)Third!celebrity!pack!released)

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$0!$20,000!$40,000!$60,000!$80,000!

!!!!Retail!Revenue!

!!!!Online!Revenue!!

Total!Revenue!

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Current)Status)As!of!11/13/14!we!have!one!retailer!verbally!agreed!to!purchase!12!cases!of!tubes!(144!tubes).!This!retailer!is!the!UW!bookstore!and!they!want!to!test!4!cases!at!each!of!their!locations!(University!Way,!the!HUB,!and!UW!Tacoma).!We!have!a!list!of!potential!retailers!and!constantly!add!to!it.!The!month!of!November!and!December!will!see!a!strong!push!in!retail!development.!Some!of!the!potential!locations!include!Fireworks,!Art!of!Shaving,!Fuego,!and!other!stores!and!boutiques!that!align!with!our!target!market.!Our!first!four!flavors!are!Peppermint!Schnapps,!Hard!Cider,!Whiskey!Sour,!and!Absinthe.!Pre8ordering!begins!on!11/25/14.!!