Sustainable Personal Care and Cleaning Products Market Analysis

Blueland: Clean home, clean face, clean planet Yanna Inhaber, Imran Basha, Sylvia Wang, Nishtha Baranwal Presented to: Sarah Paiji Yoo, CEO and John Mascari, COO August 2022 H C Boston, MA

Conclusion| Implementation | Financials | Analysis | Recommendations | Introduction Company Mission & Vision Mission: Eliminate single-use plastic packaging, starting with personal care and cleaning products Sustainability plastic reduction Customer response Science-first H C Values 2

Conclusion| Implementation | Financials | Analysis | Recommendations | Introduction Executive Summary Problem: assist in presenting plan to investors Cleaning Products Beauty and Personal Care Retail Defend against competition by using social media influencers to connect directly with consumers Focus on online sales in the next 5 years Launch Forever Yoo brand to separate beauty and cleaning product images Re-evaluate retail entry at this time Impact: Capitalize on competitive advantages of consumer connection to market product aspects that competition is lacking Impact: Focus on beauty launch and defending position in cleaning market by connecting directly with consumers Impact: Ensure success of beauty products, grow sales, reduce plastic waste H C 3

Conclusion| Implementation | Financials | Analysis | Recommendations | Introduction Recommendation Cleaning Products Need to defend against growing competition in the cleaning products space Use your competitive advantages: consumer connection, affordability, and product formulas Connect directly with consumers by working with social media influencers in the lifestyle space Target Millenial and Gen X age groups Beauty and Personal Care Forever Yoo brand will create a distinct image from cleaning products Focus needs to be on product effectiveness Use competitive advantage of consumer connect by working with social media influencers in the beauty space Target Gen Z females Retail Focus on online sales for the next 5 years to ensure competitive position in cleaning space and successful launch of beauty brand H C 4

Analysis Imran will explain why our recommendation works H C

Conclusion| Implementation | Financials | Analysis | Recommendations | Introduction What is your competitive positioning? Environment Focused Affordability Product Formula Certifications Consumer Feedback 3Rs: Reduce, Reuse & Recycle Affordable and low cost offerings Patented powder Small, light, low cost Safe & Sustainable products Direct consumer connections The usual perception is that sustainable products are expensive and you proved that they can be affordable and this offering can t be replicated. H C Leverage your unique offerings that are innovative and sustainable with direct consumer connections! 6

Conclusion| Implementation | Financials | Analysis | Recommendations | Introduction Where did you start and where do you want to head? Where did you start? Where you are? Where do you want to head? Sustainable thought Face existing competition Become a global brand Tablet/powder form Want to diversify offerings Retain market position Cleaning products Explore selling products Live your values Feel-good choice Identify target consumers Not betray core values Strong mission Foray into beauty Meet the expectations H C 7

Conclusion| Implementation | Financials | Analysis | Recommendations | Introduction Why do you need a new brand for different offerings? Objective for a new brand To diversify offerings and promote affordable and targeted beauty products for a safe/ effective experience Why it is relevant? Target different consumers and products Different preferences Keep your focus Associate with the values of sustainability Cleaning Products Beauty Brand Forever Yoo H C A separate brand will help remove generalization and target different consumers differently. 8

Conclusion| Implementation | Financials | Analysis | Recommendations | Introduction What should be your customer profiling? Cleaning Products: Millennials and Gen X Have families and focus on household choices. Prefer a reliable and safe environment at home Blueland Beauty Products (Facial Cleanser and Bodywash) Cleaning Products Beauty Products: Gen Z and Women Lower brand loyalty and care about sustainability, social media presence, buying things from influencers, celebrity endorsements, prefer affordable Gen X Gen Z Women Millennials H C Keep your focus on a targeted market segment as a way to sell the products. 9

Conclusion| Implementation | Financials | Analysis | Recommendations | Introduction Physical Retail benefits and drawbacks Benefits of going into retail: People are used to buying during regular shopping trips Maximizes the environmental impact Blueland aspires to achieve because it makes the brand accessible to as many consumers as possible Drawbacks: Expensive No expertise Shoppers online trend in increasing H C Stay online and go to physical retail in the long run. 10

Conclusion| Implementation | Financials | Analysis | Recommendations | Introduction DTC Benefits and drawbacks DTC Benefits You know exactly what your consumers want Expertise Drawbacks of going into retail Resource Intensive H C 11

Conclusion| Implementation | Financials | Analysis | Recommendations | Introduction Why do you need influencers and what would be their profile? Cleaning Products 30-40 years women with kids, use brand to share her experiences with kitchen and house cleaning Beauty Products <20 Gen Z years women fashionable, sassy, good skin, promote sustainability Profile Mega Influencers Middle Influencers Milli Benefits of influencer Influencers 1. Mass Outreach 2. Promote diversified offerings 3. Better connections with consumers 4. Expand your business 500,000 (Avg Followers) 10,000 (Avg Followers) 1,000,000 (Avg Followers) Followers Affordable for mass outreach, volume of outreach and influence More outreach Represent you brand idea More volume of outreach and they are affordable Why? Channels YouTube Instagram Website Snapchat Tiktok H C Influencers will be a key promotions channels to sell your products. 12

Financials Sylvia will crunch the numbers H C

Conclusion| Implementation | Financials | Analysis | Recommendations | Introduction Projected Influencers-leveraged sales (in 2023) Assumptions: 4 videos/ influencers/year $100,000/video of mega influencers $50,000/video of middle influencers $10,000/video of milli influencers 10% of followers conversion of Forever brand 5% of followers conversion of Forever- Yoo brand $18 average price/order for Forever $16 average price/order for Forever-Yoo Average Followers How many to hires Cost Revenue Forever Influencer Types Mega Influencers 1,000,000 1 $400,000 $1,800,000 Middle Influencers 500,000 10 $2,000,000 $9,000,000 Milli Influencers 10,000 100 $400,000 $1,800,000 Average Followers How many to hires Cost Revenue Forever-Yoo Influencer Types Mega Influencers 1,000,000 1 $400,000 $800,000 Middle Influencers 500,000 10 $2,000,000 $4,000,000 Milli Influencers 10,000 100 $400,000 $800,000 By this influencer matrix, you can spend $5.6M marketing expense to leverage $12M revenue for Forever and $5.6M for Forever-Yoo in 2023. H C 14

Conclusion| Implementation | Financials | Analysis | Recommendations | Introduction Projected Unit Sales Assumptions: 20% growth rate in the first three years 5% growth rate in the next two years # Forever Unit Sales 8 Millions 7 6 5 4 Forever-Yoo 3 2 1 0 2022 2023 2024 2025 2026 2027 Cleaning Products(existing) Status Quo Cleaning Products(Incremental) Beauty Products(Incremental) H C Influencer marketing will be your new resource of revenue growth. 15

Conclusion| Implementation | Financials | Analysis | Recommendations | Introduction Projected Revenue Assumptions: 20% growth rate in the first three years 5% growth rate in the next two years $18 average price/order for Forever $16 average price/order for Forever-Yoo Forever Project Revenue $ 140 Millions 120 100 80 60 Forever-Yoo 40 20 0 2022 2023 2024 2025 2026 2027 Cleaning Products(existing) Cleaning Products(incremental) Beauty Products(incremental) Status Quo H C Influencer marketing will be your new resource of revenue growth. Revenue will go up to $120M/ year 16

Conclusion| Implementation | Financials | Analysis | Recommendations | Introduction Projected Expense and EBITDA Expense and EBITDA Assumptions: COGS = 25% of the price COGS of sample = 5% of revenue 25% COGS COGS of samples marketing expense SG&A expense 5% 57% wages expense R&D expense 7% 1% EBITDA 5% 0% H C In 5 years, you can gain $328M EBITDA, 57% of the revenue. 17

Conclusion| Implementation | Financials | Analysis | Recommendations | Introduction Projected Free Cash Flow Assumptions: NWC in 2023 $4.725M for inventory Growth Rate =5% Discount Rate = 20% FCFF $68 Millions $66 $64 $62 $60 $58 $56 $54 2023 2024 2025 2026 2027 NPV= $360M The positive NPV shows our strategy is feasible and the company value will increase to $360M after 5 years. H C 18

Conclusion| Implementation | Financials | Analysis | Recommendations | Introduction Projected Investment spending breakdown How to spend the $20M investment 27% 33% 3% 6% 31% marketing expense SG&A expense wages expense R&D expense Inventory H C With our strategy, the initial investment is only $17M in the first year. 19

Implementation Nishtha will explain how to get it done H C

Conclusion| Implementation | Financials | Analysis | Recommendations | Introduction What do you aim to achieve? How to keep on growing and innovating cleaning products line and disrupt personal and beauty care line? H C 21

Conclusion| Implementation | Financials | Analysis | Recommendations | Introduction What do you focus on ? NOT for 5 years H C 22

Conclusion| Implementation | Financials | Analysis | Recommendations | Introduction Organization Hierarchy (For Forever & Forever Yoo) For Blueland (CMO) Customer Service Manager (10-member team) Website Manager (3- member team) Marketing Manager (10-member team) Sales Manager (3- member team) Responsibilities: 1. Alliance with Marketing Manager & Customer service Manager to see the conversion rates 2. Tracking and contacting third- party platforms Responsibilities: 1. Develop website for Forever Yoo 2. Contact Influencers, bid price, Poster & Video Design and Examine content Responsibilities: 1. Focus on getting consumer feedback given it is the competitive advantage Responsibilities: 1. List and Unlist products on both the websites 2. Connect with warehouse & logistics team H C Hire in a year the team to take care of the marketing and operations in future. 23

Conclusion| Implementation | Financials | Analysis | Recommendations | Introduction Implementation &Timeline Phase 2 Phase 3 Phase 1 Hire Expansion of products Based on consumer feedback Post 5 years focus on global expansion and retail sales Develop a website 1.Sales & marketing team(Science message) 2. Consumer Service team 3. Social Media Influencers Work with Influencers Work on beauty brand H C Phase 1 is critical 24

Conclusion| Implementation | Financials | Analysis | Recommendations | Introduction Short term (0-1 year) 1. Hire CMO Over 6-month period hire CMO who is equally passionate about sustainability Understands the importance of connecting with consumers Understands the science backed products effectiveness for his conviction Contact with influencers 2. Hire a team for Blueland s Forever and Forever Yoo line: As explained earlier for establishing organization hierarchy Training them as per company s values and targeting wider outreach Tasks Responsibilities KPIs Yoo & Mascari Revenue Increase Hire CMO Increase visibility and revenue CMO Hire Team H C 25

Conclusion| Implementation | Financials | Analysis | Recommendations | Introduction Medium term (1-3 year) CMO will supervise launching the brand : Marketing Manager s tasks: Hire Mega, middle and Milli influencers (through CMO s existing relationships) Continue to monitor social media influencers Examine the content and pay through products and money Website Manager s tasks: Leverage the existing resources to create new website for Forever Yoo Customer Service Manager s tasks: Keeping up with the consumer feedback and keep offering the details Sales Manager s tasks: Alliance with the marketing team and website manager s team to see the conversion rate of sales on the websites Tasks Responsibilities KPIs Social media platform supervision Number of products sold CMO Number of clicks and conversion rates Keeping up with the revenue Build a website Mascari, COO Responding to consumer feedback Customer Service Manager H C 26

Conclusion| Implementation | Financials | Analysis | Recommendations | Introduction Long term Goal (3-5 year) Tasks Responsibilities KPIs 1. Continue focusing on consumer feedback Keep up with the working closely with the consumer feedback and leverage on the sustained competitive advantage Following up with consumer feedback Higher response from consumers and higher revenue CMO 2. Product expansion Expand more products in personal and beauty line as per the sales and the consumer feedback Yoo, Mascari based on CMO information Product expansion Higher revenue H C 27

Conclusion| Implementation | Financials | Analysis | Recommendations | Introduction Risks and Mitigation Risks Mitigation Hiring special marketing team will help overcome the risk 1 Forever Yoo doesn t work 1 Impact 3 Competition in the cleaning space 2 Product formula 2 Post 5 years think about retail line 3 Growing too quickly Likelihood H C 28

Conclusion Yanna will take us home H C

Conclusion| Implementation | Financials | Analysis | Recommendations | Introduction Company Mission & Vision Mission: Eliminate single-use plastic packaging, starting with personal care and cleaning products Sustainability plastic reduction Customer response Science-first H C Values 30

Conclusion| Implementation | Financials | Analysis | Recommendations | Introduction Executive Summary Problem: assist in presenting plan to investors Beauty and Personal Care Cleaning Products Defend against competition by using social media influencers to connect directly with consumers Launch Forever Yoo brand to separate beauty and cleaning product images Impact: Capitalize on competitive advantages of consumer connection to market product aspects that competition is lacking Impact: Ensure success of beauty products, grow sales, reduce plastic waste H C 31

Appendix H C

Conclusion| Implementation | Financials | Analysis | Recommendations | Introduction Forever Cleaning Products Line Average Followers How many to hires Price/video Videos/year Total cost Sales conversion Unit revenue Total revenue Mega Influencers 1,000,000 1 100,000 4 400,000 100,000.0 18 1800000 Middle Influencers 500,000 10 50000 4 2,000,000 500,000.0 18 9000000 Milli Influencers 10,000 100 1000 4 400,000 100,000.0 18 1800000 2,800,000 12,600,000 Beauty & Personal Products Line Average Followers How many to hires Price/video Videos/year Total cost Sales conversion Unit revenue Total revenue Mega Influencer 1,000,000 1 100,000 4 400,000 100,000.0 16 1600000 Middle Influencer 500,000 10 50000 4 2,000,000 500,000.0 16 8000000 Milli Influencer 10,000 100 1000 4 400,000 100,000.0 16 1600000 2,800,000 11,200,000 H C 33