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is…. The first company to create a niche color cosmetic brand for this diehard fan base of 90 million females . - PowerPoint PPT Presentation

Transcript of is…

is… The first company to create a niche color

cosmetic brand for this diehard fan base of 90 million females.

Only color cosmetic brand to have licensed collegiate products. We sell department store quality lip gloss, nail polish and makeup sets that reflect the colors of each university.

Inspired by professional makeup artist & Co-Founder Stephanie Nash, a diehard K-State fan.

CEO/Director of Business Operations

Graduated from Kansas State UniversityOver 16 years experience as professional makeup artistAwarded sales managerObtained licensing agreements, product liability insurance, trademark, Fair Labor Association, royalty reportingMarketed and Negotiated with large retail accounts – Rally House/Kansas Sampler, Fanatics, Nordstrom, Dillard’sSought out professional advisors – marketing, design, fund raising

Director of Research & Product Development

Attended K-State & KU and has cosmetic industry experience for over 18 yearsWorked for artistry lines Chanel, Christian Dior, NARS, Bobbi Brown, Estee Lauder, MACChanel Regional Artist-collaborated with celebrity makeup artists for red carpet event looks and trendsStyled and created looks for HGTV commercialsSold Rumble to Halls, Hallmark & Sporting KCImproved product production, quality and cost of goods

Co-Founders Stephanie

MasonStephanie Nash

The Rumble Team

Stacey Walter Director of Finance

Masters in Business Administration. 20 years general business experience in retail and wholesale industries, with an emphasis on accounting principals and procedures. Developed internal accounts payable audit program to grow recoveries from 150k to 2million per year

Bob Peel Strategic Advisor Peel’s Beauty Supply acquired by L’Oreal 2012 Oversaw business operations of one of the most well respected distributorships in the country. Grew business to over $100 million in revenue. Advises Rumble cosmetics on budgeting, fund raising, fulfillment and distribution as well as business practices.

Jason WelchCreative Director

BFA in commercial art/illustration from the University of Central Missouri. 16 years of design, illustration and print production experience for key retail clients including Hallmark, Garmin, Sporting KC.

Linda Zappulla

Director of Marketing25 years of marketing experience. At Payless ShoeSource launched Champion footwear, its first major branded line, American Eagle footwear, and Brash, the edgy new line for teenage girls. Revlon launched The Color Studio line for department stores. Served in a number of strategic marketing and brand management functions for consumer products companies MBA from the Harvard Graduate School of Business Administration

Generating Revenue

$88K sold – 47% profit margin

80% profit margin post funding

80 retail locations

20 NCAA licenses

6 additional licenses approved &

pending payment

US Statistics 90 Million female fan consumers Women control 80% of household

income The US has a $9.1 Billion color

cosmetic market $4.3 Billion collegiate retail market $3.3 Billion NFL retail market

Market Penetration Average 400,000

female fans per school

Year 1 captures .5%

Year 5 Grows to 3% 1.4 million customers

Year 1 Year 2 Year 3 Year 4 Year 5Revenue$646,200

Revenue$7.3M

Revenue$12.6M

Revenue$20.6M

Revenue$29.7M

Expense$693,486

Expense$4.4M

Expense$6.6M

Expense$11.6M

Expense$16.3M

EBIT($47,286)

EBIT$2.9M

EBIT$6.0M

EBIT$9.0M

EBIT$13.4M

NCAA 604 Products

NCAA 906 Products

NCAA 1208 Products

NCAA 1208 Products

NCAA 1208 Products

Riot NCAA4 Products

Riot NCAA4 Products

Riot NCAA5 Products

Riot NCAA5 Products

NFL RUMBLE6 Products

NFL RUMBLE8 Products

NFL RUMBLE8 Products

NFL RUMBLE8 Products

NFL Riot4 products

NFL Riot5 Products

NFL Riot5 Products

Forecast

Competition

Officially Licensed

Quality Products & Packaging

(department store quality)

Cosmetic Brand

Design/Color Specific

KE Specialties* NFL

Low quality, not carried in ANY

stores

Hand sanitizers, coloring books,

bandages

All gloss one color regardless of team

colors

Piggy Paint X

Low grade generic packaging, sells to

Walmart & pet stores

Paint only for humans & pets

X

Non-licensed color

cosmeticsX X

Other licensed goods

X Some XPiggy Paint “Natural as

Mud” products for humans and

animals

*KE Specialties Lip gloss – Generic color for all teams, large oversized sticker, low quality container and fill, lid reflects more than the “mirror”, not retailing in ANY stores, inconsistent pricing.

Current Manufacturin

g Lip Gloss Nail DuoRUMBLE

BoxCost $4.27 $3.58 $22.09

Retail $14.95 $19.95 $39.95Retail Margin 71% 82% 45%

Wholesale $7.5 $9.5 $24.5Wholesale

Margin 43% 62% 10%

New Manufacturin

g Lip Gloss Nail DuoRUMBLE

BoxCost $.77 $1.25 $5.00

Retail $14.95 $19.95 $39.95Retail Margin 95% 94% 87%

Wholesale $7.50 $9.50 $21.00Wholesale

Margin 90% 87% 76%

Funding improves Profit Margins

Strategic Direction

Scalability - Brand will scale in 4 major ways1. Additional universities

2. Additional points of distribution

3. Additional products to the line

4. Additional sports leagues Create subsidiary brand “Riot” for mass distribution

channel Create barrier to entry

Strategic Direction

Source products from top global cosmetic manufacturers to lower COG by up to 77%

Retail in major retail chains – Nordstrom, Dillard’s, Kohl’s, Bed Bath Beyond

Obtain national exposure via social and sports marketing

Rumble app for easy online product purchase, fan following

Rumble Spokesmodel – Internship opportunity for marketing major to represent her university through events, social media

On the shelves…

SEEKING $350K FIRST ROUND CAPITAL

RAISE IN EXCHANGE FOR 15% EQUITY

KS ANGEL TAX CREDITS AVAILABLE

1 VOTING BOARD SEAT

ADVISORY SERVICES

USE OF FUNDSINVENTORY $170,000SALES EXECUTION & TRADESHOWS $62,300PERSONNEL $55,000MARKETING $42,000ADVANCED ROYALTIES $20,000

On the shelves…

Bobbi Brown Essentials Timeline

Rumble Cosmetics Timeline

Similar Stories = Similar Exit!

Acquisition Comps• Bobbi Brown Essentials: Founded in 1991

Acquired in 1995 by Estee Lauder $74.5 M

• Bliss: Founded in 1991Acquired in 1999 by MOET/Hennessy/Louis Vuitton for $30M

• Philosophy: Founded in 1996Acquired by Coty in 2010 for a reported $1B

• Urban Decay: Founded in 1996Bought out by L’Oreal for $350M in 2012 to for brand expansion

targeting a more edgy youthful buyer