Innovative Strategies for Sustainable Growth in the Changing Consumer Landscape

BLUELAND LUSEM Consulting Group Johanna, Linn a, Peter, Premton September 2022 Presenting to: Sarah Paiji Yoo (CEO), John Mascari (COO), Executive team of Blueland

"Our home does not stop at our doorstep!" Sarah Piji Yoo (CEO Blueland)

Situation Analysis "Our home does not stop at our doorstep!" Alternatives Recommendation Implementation Finances Sarah Piji Yoo (CEO Blueland) Risks Conclusion

Your products are saving the planet how can you scale up that positive impact? RECOMMENDATION MAIN CHALLENGES CLEANING PRODUCTS How to build competitive advantage and ensure growth? SAVING THE PLANET ONE DROP AT A TIME PERSONAL CARE How to enter the beauty segment and where/how/to whom to distribute? TARGET GROUP PRODUCT CHANNEL PRICE Situation Analysis Alternatives Recommendation Implementation Finances Risks Conclusion

Climate change and covid are changing the ways that consumers shop,... MICROPLASTIC POLLUTION CONSUMER CONSCIOUSNESS US INDUSTRY POST COVID 5 billion plastic Increased consciousness Personal care market size in consumer behaviour of $81.1billion in cleaning bottles thrown away each year 2019 with a CAGR of 4.8% Willingness to spend more By 2050, the ocean Increased online (up to 10%) on purchasing (up to 49%) will contain more plastic sustainability than fish Situation Analysis Alternatives Recommendation Implementation Finances Risks Conclusion

...allowing space for new industry niches to develop,... Price High Clean Cult COMPETITIVE ADVANTAGE Lower price Ease of use Sustainability Low Truman's JAWS Most sustainable Force of Nature High Branch Basics BLUELAND Low Situation Alternatives Recommendation Implementation Finances Analysis Risks Conclusion

...but you have room to expand beyond your current competitive environment Price High COMPETITIVE ENVIRONMENT Clean Cult Expansion to personal care Sustainability Low Truman's JAWS segment Force of Nature High Larger market niche Branch Basics P&G Unilever BLUELAND Low Situation Alternatives Recommendation Implementation Finances Analysis Risks Conclusion

A brand with sustainability in the DNA Eliminate single-use plastic packaging, starting with personal care and cleaning products Eco-friendly Design Effective No microplastics Strong visual message Sustainability not compromising on quality Compostable packaging Feel-good Certifications Situation Alternatives Recommendation Implementation Finances Analysis Risks Conclusion

Three possible alternatives for future success Focus on Cleaning Products Establish Sub-Brand Category Expansion Focus on what you are good at Divide personal care products from cleaning products Leverage on more products in profitable areas Alternative explanation Further product expansion and add-ons Prevent negative spill- over effects Foods and Beverages Keep revolutionizing cleaning Enables effective operations by specializing Target group is already here Situation Analysis Recommendation Implementation Finances Alternatives Risks Conclusion

Three possible alternatives for future success Focus on Cleaning Products Establish Sub-Brand Category Expansion Avoiding negative spill-over effects Maintaining strong Eco-identity New category growth opportunities Situation Analysis Recommendation Implementation Finances Alternatives Risks Conclusion

Three possible alternatives for future success Focus on Cleaning Products Establish Sub-Brand Category Expansion Avoiding negative spill-over effects Maintaining strong Eco-identity New category growth opportunities Situation Analysis Recommendation Implementation Finances Alternatives Risks Conclusion

Creating a sub-brand to adapt to different customer behavior in the categories Blueland Jobs to be done An eco-friendly solution Careland By Blueland Customer behavior Context Target groups Competitive landscape Brand loyalty Perception Cleaning vs. personal care Situation Analysis Alternatives Implementation Finances Recommendation Risks Conclusion

Different strategies for the mother brand and sub-brand Blueland Careland Product Product Target group Target group Channel Price Channel Price Situation Analysis Alternatives Implementation Finances Recommendation Risks Conclusion

Different strategies for the mother brand and sub-brand Blueland Careland Product Product Target group Target group Channel Price Channel Price Situation Analysis Alternatives Implementation Finances Recommendation Risks Conclusion

The sub-brand keeps the brand values with increased trend focus Blueland Design Eco-friendly Effective Situation Analysis Alternatives Implementation Finances Recommendation Risks Conclusion

Keeping your current target group for the cleaning category... PARENTS MILLENNIALS ENVIRONMENTALLY-CONSCIOUS Situation Analysis Alternatives Implementation Finances Recommendation Risks Conclusion

...who is looking for a cleaning solution based on their family needs PAINS Bad for environment and child Need for storage Heavy to carry Convienice Low availability PRODUCT SERVICE GAIN CREATOR Eco-friendly Affordable Easy to use Situation Analysis Alternatives Implementation Finances Recommendation Risks Conclusion

Keeping existing portfolio but increasing convenience... PAINS Bad for environment and child Need for storage Heavy to carry Convienice Low availability PRODUCT SERVICE Keep existing portfolio Increase convenience GAIN CREATOR Eco-friendly Affordable Easy to use Situation Analysis Alternatives Implementation Finances Recommendation Risks Conclusion

...through channel expansion based on customer shopping behavior PAINS Increase availability Mass retailer stores Amazon Keep D2C for customer feedback Increase subscription plans Bad for environment and child Need for storage Heavy to carry Convienice Low availability PRODUCT SERVICE Keep existing portfolio Increase convenience GAIN CREATOR Eco-friendly Affordable Easy to use Maintain price point Situation Analysis Alternatives Implementation Finances Recommendation Risks Conclusion

Introducing the personal care sub-brand Careland by Blueland Careland Blueland Product Product Target group Target group Channel Price Channel Price Situation Analysis Alternatives Implementation Finances Recommendation Risks Conclusion

The sub-brand keeps the brand values with increased trend focus Careland by Blueland Design Eco-friendly Effective Situation Analysis Alternatives Implementation Finances Recommendation Risks Conclusion

A new target group for the personal care category GEN-Z BEAUTY AND SUSTAIANBILITY INTEREST TRENDY Situation Analysis Alternatives Implementation Finances Recommendation Risks Conclusion

... with new pains and gains PAINS Chemicals Perception Switching cost due to brand loyalty PRODUCT SERVICE GAIN CREATOR Cool brand Eco-friendly Innovative Situation Analysis Alternatives Implementation Finances Recommendation Risks Conclusion

Expanding the personal care portfolio through innovations PAINS Chemicals Perception Switching cost due to brand loyalty PRODUCT SERVICE Expand portfolio within personal care Innovate with new trendy products No beauty segment GAIN CREATOR Cool brand Eco-friendly Innovative Situation Analysis Alternatives Implementation Finances Recommendation Risks Conclusion

... and channel expansion based on competitive landscape PAINS Increase availability Beauty retailer stores Amazon Keep D2C for customer feedback Bad for environment and child Need for storage Heavy to carry Convienice Low availability PRODUCT SERVICE Expand portfolio within personal care Innovate with new trend y products No beauty segment GAIN CREATOR Eco-friendly Affordable Easy to use Increase price point to create quality perception and fit new channels Situation Analysis Alternatives Implementation Finances Recommendation Risks Conclusion

Different strategies for the mother brand and sub-brand Careland Blueland Product Product Target group Target group Channel Price Channel Price Situation Analysis Alternatives Implementation Finances Recommendation Risks Conclusion

Three-year implementation plan for success enabling future readiness YEAR 1 YEAR 2 YEAR 3 FUTURE Contract with Wholefoods Increase subscription services Increase subscription services Retailer store contracts Evaluate new channels Geographic expansion Beauty retailer store contracts CHANNEL Evaluate new channels Amazon presence Q1-Q2 Amazon presence Q1 R&D MARKETING CAPITAL Situation Analysis Alternatives Recommendation Finances Implementation Risks Conclusion

Three-year implementation plan for success enabling future readiness YEAR 1 YEAR 2 YEAR 3 FUTURE Contract with Wholefoods Increase subscription services Increase subscription services Portfolio expansion research (Add-ons, Mops) Portfolio expansion research (Add-ons, Creams) Retailer store contracts Evaluate new channels Geographic expansion Beauty retailer store contracts CHANNEL Evaluate new channels Amazon presence Q1-Q2 Amazon presence Q1 Reducing dissolvement time R&D Portfolio expansion into products for males Trend incorporation External trend research Certifications (Vegan) Beauty MARKETING CAPITAL Situation Analysis Alternatives Recommendation Finances Implementation Risks Conclusion

Three-year implementation plan for success enabling future readiness YEAR 1 YEAR 2 YEAR 3 FUTURE Contract with Wholefoods Increase subscription services Increase subscription services Portfolio expansion research (Add-ons, Mops) Portfolio expansion research (Add-ons, Creams) Retailer store contracts Evaluate new channels Geographic expansion Beauty retailer store contracts CHANNEL Evaluate new channels Amazon presence Q1-Q2 Amazon presence Q1 Reducing dissolvement time R&D Portfolio expansion into products for males Trend incorporation External trend research Certifications (Vegan) Beauty Store activation plan Store activation Q1 MARKETING Social media strategy Sub-brand campaign through Amazon Build on innovative marketing trends (live shopping) Launch social media strategy (influencers, TikTok) CAPITAL Situation Analysis Alternatives Recommendation Finances Implementation Risks Conclusion

Three-year implementation plan for success enabling future readiness YEAR 1 YEAR 2 YEAR 3 FUTURE Evaluate new channels Evaluate new channels Contract with Wholefoods Increase subscription services Increase subscription services Portfolio expansion research (Add-ons, Mops) Portfolio expansion research (Add-ons, Creams) Retailer store contracts Geographic expansion Beauty retailer store contracts CHANNEL Amazon presence Q1-Q2 Amazon presence Q1 Reducing dissolvement time R&D Portfolio expansion into products for males Trend incorporation External trend research Certifications (Vegan) Beauty Store activation plan Store activation Q1 MARKETING Social media strategy Sub-brand campaign through Amazon Launch social media strategy (influencers, TikTok) Bids and closing Initial meetings with investors CAPITAL Situation Analysis Alternatives Recommendation Finances Implementation Risks Conclusion

Building the equity story to attract growth investors EXPANSION Extensive expansion possibilities 1 Personal care: Online retailers (Amazon, Sephora) Cleaning: Expansion into the main retailers in current markets (US, CAN, AU, UK) Synergy effects 2 between mother- and sub-brand Long-term: Geographical expansion 3 Potential for high margins Situation Analysis Alternatives Recommendation Implementation Finances Risks Conclusion

Building the equity story to attract growth investors SYNERGY EFFECTS Extensive expansion possibilities 1 Maintain overhead organization including: Marketing, finance, HR etc. Synergy effects between mother- and sub-brand 2 R&D synergies 5% 3 Potential for high margins Situation Analysis Alternatives Recommendation Implementation Finances Risks Conclusion

Building the equity story to attract growth investors HIGH MARGINS Extensive expansion possibilities 1 Low transportation costs Transportation costs utilizing single manufacturing site Synergy effects between mother- and sub-brand 2 Higher prices in the personal space Expansion into personal care with higher CLTV 3 Potential for high margins Situation Analysis Alternatives Recommendation Implementation Finances Risks Conclusion

The overarching argument ESG Situation Analysis Alternatives Recommendation Implementation Finances Risks Conclusion

What investors would be beneficial to attract? POTENTIAL SHORT-LIST US/UK funds with a focus on ESG and sustainability: Growth Equity Investors (Series B and upward) Goldman Growth (US) KKR Growth equity (US/UK) Sprints Capital (UK) Tiger Global (US) Etc. Situation Analysis Alternatives Recommendation Implementation Finances Risks Conclusion

Summarizing the equity story to attract investors Extensive expansion possibilities 1 Synergy effects between mother- and sub-brand ESG 2 3 Potential for high margins Situation Analysis Alternatives Recommendation Implementation Finances Risks Conclusion

Risks are present but mitigatable Risks Mitigating factors Failing to adapt to market needs 1 Extensive research in market and customer data Failing to attract investors in current market climate 2 Bootstrapping until the opportunity to raise money in the market opens No brand awareness for sub-brand 3 Marketing efforts using social media, influencers and in-store initiatives Situation Analysis Alternatives Recommendation Implementation Finances Conclusion Risks

Scaling up your venture and your impact one drop and one brand - at a time RECOMMENDATION MAIN CHALLENGES CLEANING PRODUCTS How to build competitive advantage and ensure growth? SAVING THE PLANET ONE DROP AT A TIME PERSONAL CARE How to enter the beauty segment and where/how/to whom to distribute? Careland Blueland Product Product Target group Target group Channel Price Channel Price Situation Analysis Alternatives Recommendation Implementation Finances Risks Conclusion

"Our home does not stop at our doorstep!" Sarah Piji Yoo (CEO Blueland)