Kombo Komfort
-
Upload
damon-giambrone -
Category
Documents
-
view
65 -
download
2
Transcript of Kombo Komfort
Kombo Komfort
True Komfort For You
100% Certified Authentic Kombo Butter
Alvand Yarahmadi Damon Giambrone
Christopher Wyckoff Ryan Boyd
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
2
True Komfort For You
Confidentiality Agreement
The undersigned reader acknowledges that the information provided by Kombo Komfort Inc. in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of Komfort Inc. It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to Kombo Komfort Inc.
Upon request, this document is to be immediately returned to Kombo Komfort Inc.
Name (printed)__________________________ Signature_______________________________ Date___________________________________
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
3
True Komfort For You
Table of Contents EXECUTIVE SUMMARY .......................................................................................................................... 5 THE COMPANY ........................................................................................................................................ 6 MISSION STATEMENT ................................................................................................................................................ 6 PRODUCTS AND SERVICES ......................................................................................................................................... 6 MARKET FORECASTS .................................................................................................................................................. 7 PAIN MANAGEMENT MARKET .................................................................................................................................. 7 HOMEOPATHIC & HERBAL REMEDY MARKET ...................................................................................................... 9 HEALTH AND WELLNESS MARKET ....................................................................................................................... 11 PRODUCT ................................................................................................................................................................... 12 CUSTOMER IDENTIFICATION AND SEGMENTS .................................................................................................... 12 GREEN BEHAVIOR .................................................................................................................................................... 14 LOCATION .................................................................................................................................................................. 15 READING & VIEWING BEHAVIORS ........................................................................................................................ 15 SWOT ANALYSIS ..................................................................................................................................................... 16 COMPETITION ........................................................................................................................................................... 17 MAIN COMPETITORS ............................................................................................................................................... 17 COMPETITOR ANALYSIS .......................................................................................................................................... 17 NICHE ......................................................................................................................................................................... 19 MARKET STRATEGY ................................................................................................................................................. 20 CONTENT DEVELOPMENT PHILOSOPHY .............................................................................................................. 20 CONTENT STRATEGY ............................................................................................................................................... 21 MARKETING TEAM STRUCTURE ............................................................................................................................ 21 CONTENT TEAM WORKFLOW ................................................................................................................................ 22 MOBILE APP ............................................................................................................................................................. 22 POSITIONING ............................................................................................................................................................. 23 PRODUCT DESCRIPTION ......................................................................................................................................... 23 PRODUCT LINE ......................................................................................................................................................... 23 PRICING ..................................................................................................................................................................... 23 CUSTOMER PERSONA .............................................................................................................................................. 24 TEST LAUNCH ........................................................................................................................................................... 25 MARKETING OBJECTIVES ....................................................................................................................................... 25 PROMOTION .............................................................................................................................................................. 25 COMMUNITY SERVICE ............................................................................................................................................. 26 STAGE DEVELOPMENT & DISTRIBUTION CHANNELS ....................................................................................... 27 SALES FORECAST ..................................................................................................................................................... 27
OPERATIONAL STRATEGY ............................................................................................................... 28 PRINCIPLE ................................................................................................................................................................. 28 SUMMARY OF OPERATIONS BY YEAR ................................................................................................................... 28 QUALITY CONTROL .................................................................................................................................................. 29 CUSTOMER SERVICE ................................................................................................................................................ 30 INVENTORY CONTROL ............................................................................................................................................. 30 FACILITY .................................................................................................................................................................... 30 ACCESS & FACILITY OPERATION .......................................................................................................................... 31 EQUIPMENT .............................................................................................................................................................. 31 SHIPPING ................................................................................................................................................................... 33 USDA ORGANIC ....................................................................................................................................................... 34
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
4
True Komfort For You
PERSONNEL ............................................................................................................................................................... 34 INVENTORY ............................................................................................................................................................... 35 SUPPLIERS ................................................................................................................................................................. 35
FINANCIALS ........................................................................................................................................... 36 FINANCIAL ASSUMPTIONS ...................................................................................................................................... 36 EXIT STRATEGY ........................................................................................................................................................ 37 INCOME STATEMENT ............................................................................................................................................... 40 BALANCE SHEET ...................................................................................................................................................... 41 STATEMENT OF CASH FLOWS ................................................................................................................................ 42
MANAGEMENT ..................................................................................................................................... 45 PROJECT MANAGER-‐ DAMON GIAMBRONE ......................................................................................................... 45 MARKETING-‐ ALVAND YARAHMADI ..................................................................................................................... 45 OPERATIONS-‐ RYAN BOYD ..................................................................................................................................... 46 FINANCES-‐ CHRISTOPHER WYCKOFF ................................................................................................................... 46
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
5
True Komfort For You
Executive Summary
Pain is an unwanted feeling we all experience at some point during our lives and
unfortunately some experience pain more often than others. Living in pain can
dramatically decrease one’s quality of life and a common source of pain is the
inflammatory response resulting from a disease or injury. We at Kombo Komfort can
relate to and sympathize with these individuals. It is for this reason we have developed
our product Kombo Komfort to help provide individuals with relief from pain produced
from inflammation. Our product Kombo Komfort, is a plant based all natural topical
ointment that has been proven to show anti-inflammatory and antioxidant properties. Our
product is derived from the African Nutmeg seed that is grown in West Africa. We have
formed relationships with United States and African suppliers to provide us with a semi-
refined kombo butter that we will further refine through a patented process. Kombo
Komfort has obtained exclusive rights to license proprietary technology developed by Dr.
Jim Simon and Rutgers University that identifies the components of the African Nutmeg
seeds that produce the anti-inflammatory and anti-oxidant effects, as well as a process to
concentrate these compounds. We believe we belong to the Pain Management,
Homeopathic & Herbal Remedy, and the Health & Wellness markets. We will target the
45 and older demographic due to the prevalence of arthritic and inflammatory conditions
common among these individuals. Our company will reach this population through
initially starting out with tabling demonstrations while our social media campaign grows
to draw attention to our online sales website. The social media campaign will provide
individuals with lifestyle interventions utilizing a blog to promote health and wellness.
This will not only promote our product but build a brand as well. Now more than ever,
customers are becoming more pro-active when it comes to their personal health and
wellness. Consumers are seeking all natural alternatives to provide relief from pain
caused by inflammation and we believe Kombo Komfort satisfy this need.
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
6
True Komfort For You
The Company
Kombo Komfort is owned and operated by Damon Giambrone (CEO),
Christopher Wyckoff (CFO), Ryan Boyd (COO), and Alvand Yarahmadi (CMO).
Kombo Komfort will function as an S-Corporation. The legal governing board will
consist of the four co-founders and two representatives appointed by future investors. Our
scientific advisory board will include a retired lawyer, the patented inventor of our
product, and a well-established consultant in the sports business field.
Mission Statement
Our company was created to empower people by keeping them in motion. More
than one of our co-founders struggle from painful inflammatory conditions that have
greatly impacted their lives, therefore we are personally committed to this cause. At
Kombo Komfort, we offer a quality all-natural product at an affordable price to
customers who can benefit greatly from our unique anti-inflammatory topical ointment.
Rather than masking pain, our product helps naturally treat joint and muscle pain at its
source. With our Ghana Appreciation campaign, we devote 5% of all sales to Ghana for
community development, intellectual research, and crop sustainability.
Products and Services
Kombo Komfort will offer a line of products to provide customers with an all
natural topical ointment to help ease pain caused by inflammation. Kombo Komfort is
unique through enhancing the efficacy of kombo butter through the use of concentrated
kombo butter extracts, which specifically help to reduce inflammatory markers in the
body. The active ingredients of our product are sargaquinoic acid (KB-1),
sargachromenol (KB-2), and sargahydroquinoic acid (KB-3), which have been shown to
act as antioxidants through reducing iNOS, and COX-2 inflammatory markers while also
functioning as nitric oxide scavengers. Kombo Komfort provides a safe alternative for
prevention and treatment of inflammatory and associated arthritic conditions. Customers
can seek natural relief from Kombo Komfort.
Current remedies for pain resulting from inflammation include oral medications
and topical ointments. Oral medications subject the body to high doses of anti-
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
7
True Komfort For You
inflammatory drugs systemically. This can result in development of drug dependence
among users and side effects, such as GI distress. Topical ointments currently on the
market only mask pain rather than treating the source. Kombo Komfort uniquely
addresses pain by helping to reduce inflammation and allow for specificity and ease of
application.
Our 4-ounce product will retail for $19.99 and we believe this price is competitive
with other joint and arthritis products on the market. We will compete with other topical
anti-inflammatory ointments produced by Blue-Emu and Australian Dream. Kombo
Komfort has a customer friendly return policy providing full refunds for unopened
products. Customers that belong to our loyalty program will be able to subscribe for
periodic orders and will receive discounts on products in exchange.
Market Forecasts
Kombo Komfort, our all natural anti-inflammatory topical ointment, is a part of
the pain management, homeopathic & herbal remedy, and health & wellness markets.
Using the following market trends described below, we are able to predict the future
performance of our product line.
Pain Management Market
The pain management market’s largest segments are in the United States and
Europe. It is estimated that 1.5 billion people globally suffer from chronic pain of varying
degrees. Market projections vary, but Episicom has estimated that the global pain
management market was worth $46.4 billion in 2011. The United States makes up nearly
half of this market, at 48% (Figure 1). Despite the pain management market being a
mature market, analysts still believe that there is room for growth. According to Global
Industry Analysts, Inc. (GIA), they anticipate a 9% compound annual growth rate
(CAGR) for pain management therapies specifically in Latin American countries. The
Pain Management: A Global Industry Report has documented the future and potential
growth in Latin American markets. GIA further predicts that the global pain management
market will grow to reach $60 billion by 2015. The reasoning for these optimistic
predictions by GIA is multifaceted. The prediction of growth in the global pain
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
8
True Komfort For You
management market can be attributed to an aging global population, increasing number
of surgical procedures, personal lifestyle changes, and even the rise of medical conditions
such as cancer1. Other factors that attribute to projected growth of the global pain
management market are that consumers are influenced to buy over-the-counter (OTC)
pain management drugs and the removal of reimbursements for commonly used
prescribed pain-killers2. Although the pain management market is mature and
competitive, Kombo Komfort could find success due to the global pain management
industry growing from an estimated 46.4 billion in 2011 to $60 billion by 2015 according
to Episicom. Additionally, Kombo Komfort will further differentiate itself from existing
products in this market through its all natural ability reduce pain produced from
inflammation. Future opportunities and continuing growth can be found in the Asia/
Pacific market which is projected to be the fastest growing regional market during the
2007-2015 period3.
Figure 1 Projected U.S. Pain Management Market Revenue Growth The following figure shows steady growth with U.S. market generating ~ 40 billion by 2019 (Global Industry Analysts, Inc.).
1 http://www.genengnews.com/gen-‐articles/pain-‐management-‐market-‐ripe-‐with-‐immediate-‐opportunities/4123/ (3/29/15) 2 http://www.prweb.com/releases/2011/1/prweb8052240.htm (3/29/15) 3 http://www.prweb.com/releases/2011/1/prweb8052240.htm (3/29/15)
20
25
30
35
40
45
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
US Dollars (Billions)
Year
Projected U.S. Pain Management Market Projected Revenue
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
9
True Komfort For You
Homeopathic & Herbal Remedy Market
Homeopathic & herbal remedy is a niche market that Kombo Komfort fits into.
According to a market research report on herbal supplements and remedies, Europe
makes up the largest region for the herbal remedy and supplement market4. The United
States homeopathic and herbal remedy market grew from 2005 to 2009 by 17% to $5.9
billion. It was previously believed that this market would grow by 2.6% from 2011 to
2012. This projected growth was attributed to increasing healthcare costs and lack of
insurance. Customers are said to be more pro-active when their health and wellness is at
risk5. Projected growth from 2011-2012 was as predicted. It was found that the United
States’ retail sales in the homeopathic and herbal remedies market reached $6.4 billion in
2012. Actual growth rate was up almost 3% from the previous year of 2011. Mintel, a
Chicago based market research firm, reported a growth of 16% over the previous 5 years
from 2007 to 2012. Mintel expects a steady growth rate of 3.5% for the homeopathic and
herbal remedy market through 20156 (Figure 2). In 2017, Mintel forecasted the
homeopathic and herbal remedy market sales to increase to $7.5 billion7.
Global medicinal plant production, according to the market research report on
herbal supplements and remedies, estimates it to be worth $50 billion with an annual
growth rate of nearly 16%. Even the International Trade Centre estimated that medicinal
global plant exports were worth $2.83 billion in 20138.
It was reported that 30% of respondents who stated that they had an ailment
within the last year claim to have used a homeopathic or herbal remedy to treat it9. Now
more than ever, customers are becoming more pro-active about their personal health and
wellness. Additionally, customers are also using more organic and natural products, 4 http://www.nutraceuticalsworld.com/issues/2014-‐07/view_features/botanical-‐boom/ (3/29/15) 5 http://store.mintel.com/homeopathic-‐and-‐herbal-‐remedies-‐us-‐march-‐2013 (3/29/15) 6 http://store.mintel.com/homeopathic-‐and-‐herbal-‐remedies-‐us-‐march-‐2013) (3/29/15) 7 http://www.nutraceuticalsworld.com/issues/2013-07/view_industry-news/us-sales-of-homeopathic-herbal-remedies-reach-64-billion/ (3/29/15) 8 http://www.nutraceuticalsworld.com/issues/2014-07/view_features/botanical-boom/ (3/29/15) 9 http://www.nutraceuticalsworld.com/issues/2013-07/view_industry-news/us-sales-of-homeopathic-herbal-remedies-reach-64-billion/ (3/29/15)
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
10
True Komfort For You
which aids in the growth of herbal and homeopathic remedies10,11. The GIA reported
continued growth globally of the homeopathic and herbal remedy market. According to
the global report, the GIA estimated that the market would reach $107 billion by 201712.
It has been determined that Kombo Komfort’s current and future market outlook are
favorable.
Figure 2. The following figure represents the continued growth of the U.S.
Homeopathic and Herbal Remedy Market Revenue at a rate of 3.5% CAGR through 2015.
10 http://store.mintel.com/homeopathic-and-herbal-remedies-us-march-2013 (3/29/15) 11 http://www.nutraceuticalsworld.com/issues/2013-07/view_industry-news/us-sales-of-homeopathic-herbal-remedies-reach-64-billion/ (3/29/15) 12http://www.prweb.com/releases/herbal_supplements/herbal_remedies/prweb9260421.htm (3/29/15)
6
6.5
7
7.5
8
8.5
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
US Dollars (Billions)
Year
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
11
True Komfort For You
Figure 3. Represents the combined markets of the US Pain Management and Homeopathic & Herbal
Remedy markets with their expected growth projections.
Health and Wellness Market
Customers have become more aware of the importance of maintaining a healthy
lifestyle. The health and wellness market needs to be taken into account for the overall
outlook and success of Kombo Komfort. Euromonitor International, a global research
company, has released information in regards to the health and wellness industry.
Euromonitor International reported a 6.75% growth in current value terms, reaching a
value of $774 billion in 2014. Emerging markets are the driving force for growth in the
health and wellness market, adding 87% absolute growth from 2009-2014. Even though
emerging markets are driving this new growth, pre-existing, developed markets still
encompass 60% of the total global health and wellness retail sales13. A major focal point
for Kombo Komfort is to serve customers who are improving their health. Evaluating the
global health and wellness market aids in defining the opportunity Kombo Komfort has
as a product for health and wellness market customers.
13 http://www.nutraceuticalsworld.com/issues/2014-‐11/view_industry-‐news/global-‐health-‐wellness-‐sales-‐reach-‐774-‐billion/ (3/29/15)
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
12
True Komfort For You
Product
Our product provides our customers with an all-natural topical ointment as an
alternative for painful inflammatory conditions. These anti-inflammatory properties can
benefit those suffering from osteoarthritis, rheumatoid arthritis, fibromyalgia, chronic
back pain, postoperative pain/inflammation, and orthopedic conditions. Orthopedic
conditions can be classified as pathology of the joint, muscle, and tendon resulting from
overuse. Safety and side effects are a major concern for customers and our all-natural
topical ointment provides safe and effective treatment for reducing pain and
inflammation. This is accomplished through concentrating key compounds found in the
African Nutmeg seeds that have been found to reduce inflammatory markers, which
represent a reduction in inflammation.
Customer Identification and Segments
Prospective customers that would purchase Kombo Komfort are those that have
interest or are current customers of homeopathic & herbal remedy market. Currently,
baby-boomers represent a major portion of the herbal supplements and remedies14. Those
interested in our product would be seeking an alternative anti-inflammatory and pain
management product to treat their chronic condition. It has been estimated that 52.5
million adults in the United States have reported being told by a doctor that they had
some form of arthritis, rheumatoid arthritis, gout, lupus, or fibromyalgia.
Those that suffer from these chronic inflammatory conditions are in the 45 or
older demographic. Approximately, 30.3% of people between the ages of 45 and 64, and
49.7% people 65 or older report having a case of doctor diagnosed arthritis. The
diagnosis of arthritic conditions by doctors is projected to experience continued growth.
By 2030 an estimated 67 million Americans age 18 or older are projected to have doctor
diagnosed arthritis (Figure 4). Approximately 1 in 3, or 31% of people with arthritis
report arthritis contributing towards their work limitation15. Kombo Komfort would be an
alluring option for customers who want pain relief through the use of a natural ointment. 14http://www.prweb.com/releases/herbal_supplements/herbal_remedies/prweb9260421.htm (3/29/15) 15 http://www.cdc.gov/arthritis/data_statistics/arthritis_related_stats.htm (3/29/15)
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
13
True Komfort For You
Customers that suffer from chronic pain conditions may truly find relief in the use of
Kombo Komfort.
According to experimental and clinical studies, elderly people are more
susceptible to severe or persistent pain. The elderly’s inability to tolerate pain increases
as they age. The reasons for this population’s occurrence of pain can be attributed to joint
pain, post-surgical pain, chronic disease, and conditions associated with aging16. This
population demographic will look towards a product such as Kombo Komfort based on
its all natural properties for a pain relieving effect. The National Health Interview Survey
conducted in 2007 found 44% of people aged 50-59 use some form of complementary or
alternative medicine, compared to the average adult user rate at 38%17. This suggests that
the use of complementary or alternative medicine among the 50 or older population is
prevalent.
The 45 and older population is the age demographic that we will target. However,
women of this age demographic are possibly the most appealing option to keep in mind.
Roughly 26% of women and 19% of men report doctor diagnosed arthritis. Conditions
such as fibromyalgia affect 6 million patients in the United States and are nine times
more likely to be diagnosed in women than men18. Middle-aged women are a large group
16 http://www.ncbi.nlm.nih.gov/books/NBK92516/ (3/29/15) 17 http://www.nih.gov/news/health/apr2011/nccam-‐13.htm (3/29/15) 18 http://www.cdc.gov/arthritis/data_statistics/arthritis_related_stats.htm (3/29/15)
50%
30%
13%
7% 65 and older
Ages 45-64
Unreported/Unaccounted for
Ages 18-44
Figure 4. The figure above represents the breakdown of doctor- diagnosed cases of arthritis in the United States (Center for Disease Control and Prevention)
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
14
True Komfort For You
contributing to the rising awareness of health and wellness currently occurring19. Women
have been found to report conditions of pain more frequently than men. Women report a
higher prevalence of chronic pain than men across multiple nations according to a study
conducted by Croft et al. Women have been found to show lower pain tolerances and
thresholds when compared to men, resulting from hormonal differences20. Overall an
estimated 25% of Americans experience chronic pain, with a disproportionate amount of
them being women. A review, published by the Journal of Pain in 2009, found that
women were facing a substantially greater risk of developing pain conditions21. The
demographic containing middle-aged women is a very important target demographic for
Kombo Komfort. This is a result of middle-aged women having an increased risk of
developing inflammatory conditions more frequently then men, and they have also been
found to have lower pain tolerances. Women continue to comprise the majority of
customers in the marketplace accounting for 85% of all customer purchases22.
The middle-aged baby boomer generation fits Kombo Komforts target marketing
demographic because of medical and inflammatory conditions associated with increased
age. Baby boomers possess the disposable income to spend on a premium all natural
homeopathic and herbal remedies. Our targeting of customers goes beyond standard
demographics. Psychographics are used to evaluate customer’s lifestyles and behaviors,
specifically, their interests and values towards green products23.
Green Behavior
Kombo Komfort encompasses all natural properties as a homeopathic and herbal
remedy product. Keeping that in mind, we realize the importance of green customers.
Green customers provide a loyal following for Kombo Komfort’s brand. These customers
19http://www.prweb.com/releases/herbal_supplements/herbal_remedies/prweb9260421.htm (3/29/15) 20 http://www.ncbi.nlm.nih.gov/books/NBK92516/ (3/29/15) 21 http://www.nytimes.com/2013/03/17/opinion/sunday/women-‐and-‐the-‐treatment-‐of-‐pain.html?_r=0 (3/29/15) 22 http://she-‐conomy.com/facts-‐on-‐women (3/29/15) 23 http://ecopreneurist.com/2008/04/16/how-‐to-‐reach-‐green-‐consumers-‐using-‐psychographics-‐to-‐define-‐your-‐target-‐market/ (3/29/15)
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
15
True Komfort For You
can be properly assessed by using psychographics for green behavior. The green
customers we are targeting tend to fit under a number of descriptive conditions. The ideal
green customers are very progressive on environment and society. These super green
customers are more concerned about the impact a product has on the environment and are
willing to pay a premium to ensure preservation of the environment25. Super green
customers account for 5% of United States adults, with 76% of them having annual
household incomes of $150,000 or greater24. Kombo Komfort offers an environmentally
friendly product to solve the pain management needs of environment conscious green
consumers.
Location
Kombo Komfort’s target market customers reside in middle to upper class
neighborhoods in both urban and suburban settings. Online sales will comprise the
majority of Kombo Komfort’s total sales early on. At an early stage, offline sales will
occur on the east coast of the United States. This region provides a large demographic, as
well as a green and environmentally conscious consumer base to target. These factors
have an early impact on a homeopathic and herbal remedy product’s success.
Reading & Viewing Behaviors
Our target age demographic tends to read magazines and articles that reflect their
own personal health interests. Popular health and wellness magazines are Remedy’s
Healthy Living, Men’s Health, and Women’s Health25. These magazines are read by the
45 and older age demographic and help represent our company’s foundational beliefs of
health and wellness. Tweny-three million Women are found to read Women’s Health and
Remedy’s Healthy Living magazine26. Remedy’s Healthy Living Magazine has larger
female following at 63% compared to men at 37%26. Men on the other hand, tend to read
Men’s Health Magazine, and encompass over 13 million readers. The median age of
24 http://www.organicspamagazine.com/media-‐kit/super-‐green-‐consumer/ (3/29/15) 25 http://www.cision.com/us/2013/05/top-‐10-‐fitness-‐health-‐magazines-‐2/ (3/29/15) 26 http://www.remedyhealthmedia.com/sites/www.remedyhealthmedia.com/files/RHL-‐Thrive50_MediaKit_2014_LR.pdf (3/29/15)
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
16
True Komfort For You
these male subscribers is 40 years old27. Women 45 and older watch television shows
such as HGTV, OWN, and Dr. Oz. On the other hand, men 45 and older view sports
channels such as ESPN and Golf Channel. We recognize that these forms of media will
be effective platforms to reach our target demographic to promote the use of Kombo
Komfort.
SWOT Analysis
Strengths
● Premium all natural product ● Provides a safe option to mitigate pain and discomfort by reducing inflammation ● Low production costs ● Unique patent-protected refinement process ● Building a Health and Wellness brand ● Growing macro and micro economies in our target market ● Inflammatory conditions are on the rise ● No added ingredients or preservatives ● Management team experience
o Knowledge of human anatomy, physiology, and biology o Personal training and athletic training backgrounds o Knowledge of social media
Weaknesses
● Importation of semi-refined kombo butter ● No preexisting customer base ● Long distance shipping ● Shipping costs ● Enrichment process ● Access into U.S. distributors ● Finance and accounting expertise
Opportunities
● Targets the increasing popular all natural market ● Provide a natural remedy as an alternative to traditional medicine ● Appeal to green customers ● Safe pain management alternative
Government Regulation & Potential Threats
● Competition 27 http://www.menshealthmediakit.com/audience/ (3/29/15)
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
17
True Komfort For You
o Large pharmaceutical companies o Other topical analgesic products
▪ (Bengay, Flexall, Biofreeze, Icy Hot, Blue-Emu, Australian dream) o Genetically engineered solutions to inflammatory disease
● U.S. & International Government Regulation o FDA policy change o Importation of a foreign botantical o Potential USDA certification hurdles o U.S.-African relations
● Environmental o Economical or environmental disaster effecting West African distributors
of semi-refined kombo butter (raw material)
Competition
Our competitors consist of Blue-Emu, Australian Dream, BioFreeze, Bengay, Icy
Hot, and Flexall. Large pharmaceutical companies such as Pfizer, Merck, Johnson &
Johnson, and Eli Lilly are also competitors in the pain management market. The most
similar products to ours on the market are Blue-Emu and Australian Dream. Based on
competitor pricing for 4 oz. units, we believe that Kombo Komfort should retail at price
of $19.99. We believe this offers customers a discounted price for a premium, all natural
product that can help to reduce pain and inflammation.
Main Competitors
Blue-Emu Made by NFI Consumer Products 501 5th St, Bristol, TN 37620 Australian Dream Distributed by: Nature’s Health Connection Inc. PO Box 609 Campton, KY 41301
Competitor Analysis
Kombo Komfort Strength Weakness Blue-Emu Australian Dream
Importance to Customer
Products All-Natural Topical Anti-Inflammatory Plant-based CMO
All-Naturally Derived
Limited
Raw material acquisition and
execution of simplistic
Original Super Strength
Arthritis Pain Relief
Arthritis Pain Relief Cream
Back Pain Cream 2
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
18
True Komfort For You
ointment Ingredients
Scientifically research proven
and tested
supply chain. Pain Relief Spray
Anti-Itch
Pure Emu Oil
Lip Balm
Foot Therapy
Price 4oz. jar $19.99 Competitive and
reasonable pricing
Not set apart from
competitors in price
4 oz. jar $12.50
12 oz. jar $26.99
lowest price*
2oz. $17.99
4oz. $22.99
9 oz. $42.99
lowest price*
2
Quality
All natural w/ limited ingredients
No Dyes
Earthy/ Nutty Scent
Non-irritating
All natural look, feel, and scent
customers know what they are getting due to
limited ingredients
Natural scent
Oily feel
Not oily
Unscented
Non irritating
Not oily
Does not burn or irritate skin
Unscented
No Dyes
1
Selection 4 oz. jar
Providing a standard size as
compared to competitors
Price point is competitive
Wide range of sizes
Different forms of product
2oz. spray, 4 oz., 12 oz. jars
128oz. pump
Single use wipes
Kits
Wide array of Blue-Emu branded products
2 oz., 4oz., 9oz. jars 2
Service All natural topical anti-inflammatory
Unique product that decreases inflammation
Competitors are formulated and act differently
Does not cause pain relief by
increasing blood flow to
treatment area.
Topical for pain relief of muscle and joint
pain
Topical for pain relief of arthritis 1
Product
Stability 2 years Long shelf life
Shorter shelf life than
competitors 3 year shelf life 3 year shelf life 3
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
19
True Komfort For You
Niche
Today’s customers are using more natural products, which help to promote the
growth of homeopathic and herbal all natural therapies. Customer’s needs are becoming
Expertise
Patented by Rutgers University Dr. Jim
Simon to provide an effective natural
solution for arthritis and inflammatory
conditions.
Research expertise
Research proven
Patent protected
Lack of wide spread use by
customer
Maker of currently the #1 selling OTC
muscle and joint cream (Original Super
Strength)
Developed in 1998 for treatment of
arthritis. Created oil and scent free
solution
2
Company Reputation
Provides an all natural solution for
pain and inflammation such as
arthritis
New and different product
for pain relief
Not well known
Not trusted Sells the #1 muscle and
joint cream
Provides an oil and scent free solution
for treatment of arthritis pain
2
Location Lincoln Park, NJ
Close proximity to shipping ports for shipping in
the future
Not prime location for early start of
business
Bristol, TN Campton, KY 4
Product
Appearance
Reddish-brown
color
container:
Smooth look and feel
Similar product container
Blue color
container:
White color
container:
3
Sales Method
Online, private distributors on east
coast of U.S.
Sold online on own website
Sold with private distributors
Not sold in big box stores
Not sold on major websites
Mass merchandiser retailers, supermarkets,
drug stores, online, own website.
Walmart, Target, Walgreens, CVS, Kroger and other retail pharmacies
Online at retailer websites
1
Advertising
Content Marketing-
Balance between traditional, social, and digital media
Real-time feedback on brand data
Target demographic may not be
social media savvy
Facebook, Twitter, Google Plus, Television
Television 2
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
20
True Komfort For You
more economical due to escalating prices, tighter budgets, high healthcare prices, and
lifestyle costs. They are also more health conscious creating a desire for safer product
options to treat conditions of pain and inflammation. Growing alternative medicine and
dietary supplement use are examples of methods being utilized by customers seeking
relief from inflammatory conditions. Kombo Komfort provides a safe and helpful
alternative to reduce pain and inflammation.
Market Strategy
Our company’s approach for acquiring customers will focus on content marketing
to build a brand and an online following. We will provide our content on the web via our
blog and social media platforms such as Instagram, Facebook, and Twitter. Rather than
spamming product information on the products we sell to the masses, Kombo Komfort
will be shifting its focus on specific customers. For example, the 10,000 people seeking
our brand are more important to us than the 10 million people not seeking our brand.
There will be active involvement by the founders of the company to convey a
down-to-earth, helpful atmosphere. We will be involved in real time marketing by
exploiting current events and connecting with followers on platforms like Twitter using
their newly acquired Periscope application. Feedback data will be analyzed frequently to
serve our customers’ needs and ensure that they are heard and valued. In addition,
testimonials from customers will be periodically posted on the social media outlets and
eventually broadcasted on television through creative commercials and on billboard
advertisements. Ultimately, our goal is to have our customers spread our message through
word of mouth, because the majority of the public trusts recommendations from their
peers over advertisements. Limited-time promotions will be offered seasonally and our
products will be accessible through Amazon.com to increase product growth and
awareness. Through customer satisfaction and science, Kombo Komfort will be a product
that is associated with authenticity.
Content Development Philosophy
To provide the best content we will use customer-centric, “voice of the customer”,
language while tracking marketplace changes and audience needs. Content will be
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
21
True Komfort For You
produced following the 80/20 rule, limiting the amount of product information we push
onto the customer. Our content must always reinforce the brand, contain news value, start
conversations, and engage the audience. We are aiming to deliver real benefits to help our
customers learn something new and refer others to learn about our brand.
Content Strategy
We will structure our content in a way that will effectively target our
demographic through forming a representative customer persona. Kombo Komfort aims
to educate its customers on health and wellness while informing them about our product.
Together, these elements will contribute to the building of our Kombo Komfort brand.
Furthermore, we will reach our audience through balanced tactics of traditional, social,
and digital media.
Marketing Team Structure
● Editor/Editorial Board- ensures high quality content that reinforces brand
● Designer- focuses on customer experience across all channels
● Content Curator- finds great content and creates exposure
● Search Engine Optimizer (S.E.O.)- improve online visibility of the brand through
utilizing keywords (see Mobile App below)
● Publisher- manages editorial calendar and deadlines
● Channel Manager- identifies proper channels to market content
● Content Creator- writes blogs and develops high-quality content
● Our team will collectively contribute to the publication process, which can be
visualized in Figure 5.
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
22
True Komfort For You
Content Team Workflow
Figure 5. Team brainstorm → Contributor writes content → In review/In revision → If content is approved → Scheduled for Publish → Posted to Social Channels → Content Performance Analytics
Mobile App
Recent reports in the media explain that Google, being a model for innovation,
has decided to rank companies according to their mobile capabilities because most
searches occur on mobile devices. This project is dubbed “Mobilegeddon” and it is
reported to have a huge impact on the order of company website listings within Google’s
search engine results. Therefore, we created a mobile app with interactive features. For
example, users will be able to calculate max heart rate and target hear rate based on
intensity and age inputs. We will be able to evaluate provided information on prior
injuries and offer specific modifications to popular exercises. We cyclically offer sample
high-intensity interval training (HIIT), outdoor cardio, resistance training and flexibility
exercises. The mobile app will also present a feature that allows people to contact a
service associate to ask questions about general fitness and product benefits along with
any other technical questions.
True Komfort For You
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
23
True Komfort For You
Positioning
Kombo Komfort is positioning itself as an all natural, plant-based product that
helps to relieve joint pain at the source of inflammation. We are able to isolate specific
kombo butter compounds using our licensed patented process developed by Rutgers
University’s Agricultural Laboratories. Together with Agribusiness in Sustainable
Natural African Plant Products (ASNAPP), Kombo Komfort will be providing quality
product in a transparent and eco-friendly.
Product Description
Kombo Komfort’s topical ointment is a natural plant-based Cerasomal cis-9-
cetylmyristoleate (CMO) product developed by Dr. Jim Simon at Rutgers University, the
State University of New Jersey. Our licensed technology concentrates the active
ingredients that are naturally found in the African Nutmeg seed to provide relief from
inflammation. We accomplish this without the need for chemical additives and
preservatives. CMO products have gained recognition for treating autoimmune illnesses
such as rheumatoid arthritis. Our patented extracts reduce the production of nitric oxide
(NO), iNOS protein, iNOS mRNA, COX-2 protein, and COX-2 mRNA in cells
experiencing inflammation. This added technology enhances our product over other
traditional kombo butter anti inflammatory ointments currently on the market (US Patent
#7,371,413, Dr. James Simon, 2008).
Product Line
Our product line will feature our 4-ounce original Kombo Komfort blend, which
will also be available in a 2-ounce travel size, as well as a 9-ounce value size. Kombo
Komfort will also produce an extra strength formula designed to combat an acute flare-up
of inflammation.
Pricing
The suggested retail price for our feature 4oz. Kombo Komfort product will be
$20, which is $3 less than our leading competitor, Australian Dream. We have a free and
incredibly easy return policy. Just send our product back and you will be fully refunded!
Unopened products accepted with specification of reason for return. Customers that
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
24
True Komfort For You
belong to our loyalty program will be able to subscribe for periodic orders and will
receive discounts on products in exchange. Available products and their prices are listed
below:
● Kombo Komfort 4oz. - $19.99
● Kombo Komfort 2oz. - $9.99
● Kombo Komfort 9oz. - $29.99
● Kombo Komfort Extra Strength 4oz. - $34.99
● Other Kombo Enriched well-known CMO Products- TBD
Customer Persona Name: Nancy
Occupation: Public School Teacher
Information: Nancy is 45 years old, has two children in college,
drives a compact car, adopted a Labrador Retriever, enjoys
exercising, and suffers from mild rheumatoid arthritis.
Buying Stage: In search of a product to provide inflammatory relief
Needs: To be able to do all daily tasks without being hindered with pain
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
25
True Komfort For You
Interests: Light to moderate jogging/running, walking her dog, shopping in the mall with
her children, and swimming
Pain Locations: lower extremities radiating into the lower back with the occasional
arthritic flare-ups in the wrists
Brand Value Proposition: Special blend of all-natural ingredients that fight inflammation
rather than covering pain and avoid GI distress produced from chronic use of oral
medications
Media Habits: Pinterest, Facebook, LinkedIn, Twitter, (Google+), and blogs written by
industry leaders and influencers
Test Launch
Our test market will include the east coast of the United States. We will begin by
introducing our product at local gyms and areas where our target market of middle-aged
individuals congregate. We will do so by setting up different tables with a thought
provoking backdrops and lure people through the offering of free samples.
Marketing Objectives
● Increase brand awareness through social media and company website ● Facilitate market penetration through distinguishing our brand with patented
science and authenticity ● Build a following to support a potential USDA Organic Certification campaign by
year 6 ● Work with other well known products to enhance our brand and increase our
profits and industry relations ● Create a customer-driven continuous improvement culture in real time through
interactive social media campaigns ● Gain a significant market share for homeopathic herbal remedy market by 2020
Promotion
Early in operations, Kombo Komfort will be advertised and sold through direct
marketing via our website or Amazon.com. Social media outlets will feature quirky
themes for different days of the week. For instance, we plan to set aside a range of hours
on specific days where our customers can communicate directly with the founders via our
Facebook page and ask any general or specific questions. This promotion called Founder
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
26
True Komfort For You
Fridays will give the opportunity for the company’s founders to stay in touch with the
customers and gain feedback from the community. We will also feature Hump Day
Humor, which means that every Wednesday, our social media pages will provide funny
cartoons or memes to brighten our customers’ days. You can find us on:
We will provide a loyalty program for our frequent customers. This includes 10%
savings at the end of every season for our members who regularly buy and use our
products. Being a loyalty member also means that we will send that customer a gift on
their birthday to show our appreciation for their business.
Another way that we will reach our customers is by attending appropriate
conventions and gatherings. There we will set up booths and tables that will allow us
spread the awareness of our product line. Kombo Komfort will invest in travel expenses
to send our sales representatives to these conferences. Each stand will have a beautiful
and eye-catching set-up, which will include a colorful cardboard backdrop, interactive
spin wheel, and handouts such as pens, keychains, Kombo Komfort water bottles, and
product samples.
After years 4 and 5, Kombo Komfort will introduce television and billboard
advertisements into our marketing strategy. Strategically placed television advertisements
will be aired during prime-time hours of shows that appeal to the baby-boomer
demographic. Billboards will be placed in highly trafficked areas to reach those that
commute to work.
Community Service
Kombo Komfort will sponsor the Ghana Appreciation Campaign, which involves
a donation of 5% of net sales to the under-developed areas from which our product is
grown. This campaign will focus on increasing three key areas: intellectual research,
community development, and agricultural sustainability. Our donation to this initiative
fulfills our licensing agreement with Rutgers University, as well as aligns with our
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
27
True Komfort For You
company philosophy. We hope to limit our environmental impact to maintain our eco-
friendly reputation.
Stage Development & Distribution Channels
After the pre-launch phase, we will be sending sales representatives to certain
conventions and local strategic areas on the east coast of the U.S. increase product
awareness. Along with the promotional tables and branded stationary give-aways, we will
be able to market and sell our product directly through the web. Our product will be
featured on our own website and available for purchase on Amazon and Ebay. In Stage 2,
we will ask for additional funding to establish distribution channels with retailers such as
Vitamin Shoppe, GNC, Walgreen, CVS, Rite Aid, and Target. During stage 3, we will
consider realigning our brand to meet USDA Organic Certification standards. This will
support our authentic all natural standing and allow us to surface in other retailers such as
Whole Foods and Trader Joes. This will further expand our brand while reinforcing our
all natural eco-friendly image. Our projected sales are depicted in the following figure
(Figure 6).
Sales Forecast
Figure 6. As pictured above, represents the expected sales growth for Kombo Komfort’s product line
0
200
400
600
800
1000
1200
Year 1 Year 2 Year 3 Year 4 Year 5
US Dollars (Thousands)
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
28
True Komfort For You
Operational Strategy
Principle
At Kombo Komfort, we rely on our highly-skilled personnel and firmly
established network of industry partners to effectively produce and distribute our product.
With careful strategic planning, we have formulated a streamlined business model that
allows for quick, efficient, cost-effective operation of our company. By combining our
skilled personnel and industry relationships with our precise operational strategy, we at
Kombo Komfort expect to possess a large portion of our target market.
Summary of Operations by Year Year 1 - 2016 (Initial Production)
The method for producing our Original Kombo Komfort anti-inflammatory
topical ointment is quite simple and extremely efficient. The production process on our
end begins after acquisition of semi-refined kombo butter at a price of $3/kg from our
suppliers. This semi-refined butter will be shipped to our manufacturing and processing
facility in New Jersey where it will be processed into 4-ounce containers and sold
through our distribution channels. The total cost of semi-refined kombo butter amounts to
approximately $0.10 per ounce. In our first year, we project the sale of 2,500 units
retailed at a price of $19.99 a unit amounting to $50,000 of net sales.
Year 2 - 2017
After extensive marketing and a successful year 1, our company will expand the
supply chain by purchasing semi-refined kombo butter directly from West Africa
suppliers. Through expanding our supply chain we look to mitigate the risk associated
with limited suppliers of our raw materials. Such risks include price gouging, natural
disaster interrupting our supply, shipping complications, government interference and
instability.
Our new source of semi-refined kombo butter will be transported overseas from
West Africa to ports in New York where it will then be shipped directly to our New
Jersey manufacturing facility. In addition to the expansion of our supplier base in year 2,
Kombo Komfort will be adding smaller and larger versions of its original 4-ounce
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
29
True Komfort For You
product. This will not require any alterations to the original Kombo Komfort formula. At
this point, our product will be available to customers in three sizes for individual
convenience.
Year 3 - 2018
By year 3 of development, Kombo Komfort plans to have established firm
connections with a minimum of three suppliers. We will be working with ASNAPP sales
representatives in Africa to purchase our raw materials from multiple direct sources. We
will purchase our year’s supply of semi-refined kombo butter in bulk. If we were to
purchase smaller quantities of our raw materials frequently throughout the year we are
exposed to the risk of having our supply interrupted. By doing so we also greatly reduce
our shipping costs. Due to the inexpensive cost and long shelf life of our semi-refined
kombo butter, large purchases do not pose a risk to our company resulting from spoilage.
In year 3, Kombo Komfort will begin the manufacturing of its extra strength
product. To support the expansion of the product line, special equipment, personnel, raw
materials, and additional space within our processing facility will be required. Therefore,
our company will be seeking an investment of $100k for additional funding to support
this expansion as well gain access into additional distribution channels.
Years 4 & 5 - 2019 & 2020
In years 4 and 5, Kombo Komfort plans to secure itself as a major force in the all
natural, anti-inflammatory, and pain relief markets. By this stage, Kombo Komfort will
have developed an extensive network of raw material suppliers as well as nationwide
distributors to retailer our product. Our company expects to reach over $1 million in net
sales by the end of the second stage 2 and in stage 3, will potentially pursue a
transformation into a USDA Certified Organic Company.
Quality Control
At Kombo Komfort, we are determined to provide our customers with the highest
quality and the most effective products at an affordable price. We apply an extensive
system of quality control that functions as follows:
1) Initial raw material inspection - Upon receiving our shipments of semi-refined
kombo butter, the butter is first examined visually, then manually strained to
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
30
True Komfort For You
ensure removal of contaminants. All plastic containers are visually examined as
well for imperfections prior to product packaging. All imperfections or instances
of contamination are immediately recorded and managed.
2) Post-packaging inspection - After meeting quality control requirements for
packaging, our kombo butter processed, packaged, and sealed. Prior to shipment,
each unit is individually inspected to ensure that there are no defects. Appointed
staff accomplishes inspection visually.
3) Facility/Equipment inspection - On a monthly basis, appointed staff will conduct
thorough inspections, as well as clean the entire facility and all equipment.
Customer Service
In addition to our strict quality control system, Kombo Komfort ensures customer
satisfaction by offering top-notch customer service. With our customer service system,
our goal is to provide extensive support for our current and future customers. Our
customer service includes support for our customers before, during, and after a purchase.
Kombo Komfort understands the importance of accessibility and therefore provides its
customers with multiple methods of communication. Our company can be contacted
during business hours via telephone, email, and live chat through our online website.
Inventory Control
All inventory will be stored and managed at the Kombo Komfort
manufacturing/processing facility in Lincoln Park, New Jersey. All final products will be
tracked and managed using a QR code identification system. Each item will have a
unique QR code that can be scanned via a hand held device for immediate access to
inventory counts. This assists in the monitoring of movement of inventory to and from
customers.
Facility
Kombo Komfort Inc. 6 Frassetto Way Lincoln Park, NJ 07035
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
31
True Komfort For You
Physical Attributes
Kombo Komfort will operate out of a single manufacturing/processing facility in
New Jersey. Due to the minimal processing and space required for operations, we will
rent 1,000 SF of space in a 38,000 SF warehouse in Lincoln Park, New Jersey at a rate of
$6.80/SF/year28. This will result in a total facility rental cost of $6,800/year. As our
company grows and sales increase, we will add rental space as needed. As shown in our
financials, as production increases, we will incur higher costs for utilities, insurance, and
maintenance. Our facility is beautifully suited for Kombo Komfort as it is equipped with
plenty of office space as well as a single loading dock for convenient delivery of raw
materials and shipment of final product.
Access & Facility Operation
Kombo Komfort’s business hours will run from 9:00 AM to 5:00 PM Monday
through Friday. Our facility is located in close vicinity to nearby highways including
Route 23, I-80, I-287, and Route 46 making it widely accessible for movement of product
and materials to and from suppliers and customers.
Equipment
At Kombo Komfort, we manufacture all of our products in house using several
machines and processes. Listed below is the equipment used to manufacture Kombo
Komfort products along with brief descriptions of their associated uses.
28 http://www.loopnet.com/Listing/19096196/6-Frassetto-Way-Lincoln-Park-NJ
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
32
True Komfort For You
Vertical Tube Evaporator -
As pictured above, a vertical tube evaporator will be used to extract our
key anti-inflammatory acids from our semi-refined kombo butter. This
process will then enable us to produce our extra-strength product.
High Speed Container Filler -
After processing either our Kombo Komfort Original or Extra-Strength
formulas, we will be using a container filler (pictured above) to precisely
fill our containers with product.
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
33
True Komfort For You
High Speed Container Labeller -
Prior to filling, each one of our product containers will be sent through our
high-speed labeller. The labeler will apply our custom-designed Kombo
Komfort labels. This machine is able to apply labels to units at a rate of 30
units per minute.
Shipping
Our semi-refined kombo butter will be shipped by land and sea from several
suppliers to our manufacturing facility in New Jersey. All overseas shipping of raw
materials will be executed by AMID Logistics, LLC29. Specifically, AMID Logistics,
LLC. will be loading our raw material from ports in Ghana, Africa and transporting it to
ports in New York, NY. All land transport including shipping from our US supplier as
well as from NY ports to our manufacturing facility will be executed by the United States
Postal Service30. Due to the nature of our raw materials, our company does not require a
special permit for foreign import into the U.S.
29 http://www.amid-logistics.com/ 30 https://www.usps.com/
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
34
True Komfort For You
USDA Organic
Following year 5 of development, Kombo Komfort will entertain plans to
transform into an organic company. There are several steps that would be taken to
accomplish this. First and foremost, our company would aim to secure a certified organic
supplier of unrefined Kombo butter in Africa. Once we have established a reliable source
of our raw organic material, we would proceed to convert our manufacturing/processing
facility in New Jersey to a certified organic establishment. At this time, we would also
ensure that our processing techniques, shipping, packaging, waste removal, etc. are
admissible by USDA Organic standards.
Following the physical transformation of our company, Kombo Komfort would
begin the process of obtaining an organic certification from the USDA. Specifically, we
would locate a USDA certifying agent and provide them with all of the required
application information and fees31. Kombo Komfort would be sure to abide by USDA
Organic standards on a yearly basis by executing annual inspections of facilities and
processes. This would streamline the USDA annual recertification process. The complete
process of converting our company to an organic product retailer would begin after
Kombo Komfort has firmly established itself in the all natural pain relief management
and homeopathic and herbal remedy market.
Personnel
Our company will maintain a highly-skilled and well-trained core group of
individuals to ensure smooth management of operations. Initially, the Kombo Komfort
team will be operated by the founders. As our company expands, the following positions
will be filled:
Accountant and Financial Advisor - will manage all finances within our
company
Sales Representatives - will address all incoming sales inquiries and manage
relationships with customers and distributors
31 http://www.ams.usda.gov/AMSv1.0/NOPFAQsHowCertified
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
35
True Komfort For You
Lab Technician - will oversee the manufacturing and processing of our products
as well as maintain a safe laboratory environment
All Kombo Komfort employees will be responsible for adherence to their
individual employment schedules and responsibilities. Failure to comply with the above
mentioned conditions would result in termination of employment from the Kombo
Komfort team.
Inventory
As previously mentioned, all inventory including raw materials, supplies, and
finished product will be stored at our manufacturing and processing facility in Lincoln
Park, New Jersey. Due to the low cost of production of our product, we will purchase
enough inventory to produce the projected sales for the current year as well as carry
excess inventory. This will prevent concern regarding meeting demand if and when a
large order of our product is placed.
Suppliers
Our semi-refined kombo butter and packaging containers will be purchased in
bulk from the listed suppliers. Importantly, we have secured alternative suppliers for all
of our required materials in case we have issues with our primary suppliers. Although
current supplier prices are stable, these alternative suppliers will be useful if material
prices begin to fluctuate.
Suppliers:
Pelham Healthcare Limited Supplier Representative: Oliver Felstead
Established: 2012 Spearson Supplier Representative: George Morgan Dadzie
Location: Ghana Established: 1995 Response Products LLC. 44523 Rd 795 Broken Bow, NE 68822
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
36
True Komfort For You
Phone: 308-872-6919 Packaging: Uline 12575 Uline Drive Pleasant Prairie, WI 53158 Phone: 1-800-295-5510 ASNAPP representatives: Ghana Juliana Asante-Dartey Country Director, ASNAPP Ghana (West Africa) T:+233-302-505617 F:+233-302-505617 Email: [email protected] Senegal Mr. Babou Diouf Country Director ASNAPP Senegal T:+221-8645-101 F:+221-8645-102 Email: [email protected]
Financials
Our company will operate for the first 2 years utilizing an investment of $45,000.
This investment will be evenly divided among the founding members producing an equal
distribution of equity. In year 3 of operations, Kombo Komfort will seek an investment of
$100,000 for a 25% stake in the company to support the expansion of the product line, as
well as expedite the formation of national distribution channels. The net present value of
the company at the end of year 2 is valued at $386,000 using a risk adjustment coefficient
of 30%. Kombo Komfort may seek an additional investment in year 5 to fund a potential
transformation to become USDA certified organic and gain additional resources provided
by an experienced investor.
Financial Assumptions
The following financial statements are a subjective projection of the revenues and
expenses Kombo Komfort will produce from operations. The resulting graphs and charts
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
37
True Komfort For You
that include, but are not limited to, an income statement, balance sheet, and cash flow can
be located below. The projections were determined through a detailed market analysis
derived from public information from multiple relevant industries, government studies,
and comparable companies. These statements were not prepared for release to the public
and are not audited.
o We assume that we can operate as a cash-only business. We will operate as an
online-based business initially with all sales purchased via cash or credit card
payment. The payment periods of major credit cards are very minimal and we
believe we will receive our cash payments within a few days. Because of this, we
will have minimal accounts receivable.
o We can pay our operating expenses in full with cash on hand.
o We assume our tax rate to be 20% and remain constant in years to come.
o We assume that the global and U.S. economies will continue to show growth
without interruption.
Kombo Komfort will retain all earnings in years 1 and 2, and a majority of
earnings thereafter, however, we will also be paying dividends in years following year 2.
This conservation of cash is in preparation to pursue several available options. If our
sales are exceeding expectations, we will look to begin the transformation of our
company into a USDA organic certified organization. Alternatively, we can pursue the
further enhancement of our product through R&D, build our patent protection, or expand
into foreign markets and open new facilities.
Exit Strategy
We at Kombo Komfort will consider all acquisitions and merger offerings.
However, we plan to be acquired by approximately year 5 during our transformative
stages to a USDA certified organic organization. We would expect to be acquired by a
large nutriceutical company within the homeopathic and herbal remedy market.
According to our calculation using a risk coefficient of 30%, our company would be
valued at $2.3 million pre-USDA organic and have a higher evaluation after becoming
USDA organic certified.
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
38
True Komfort For You
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
39
True Komfort For You
Figure 7. The figure pictured above, represents the results of our breakeven analysis. The breakeven point
is projected to occur between months 6 and 7 of year one.
0
2000
4000
6000
8000
10000
0 1 2 3 4 5 6 7 8 9 10 11 12
US Dollars
Month
Product Breakeven Analysis
Sales
Cost
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
40
True Komfort For You
Income Statement
Income'StatementKombo'Komfort'Pro0Forma
Year%1 Year%2 Year%3 Year%4 Year%5Revenues
Online Sales 36,500$''''''' 240,000$''''''' 500,000$''''' 700,000$''''' 850,000$''''''' Tabling Sales 13,500$''''''' 18,000$''''''''' 25,000$''''''' 25,000$''''''' 25,000$''''''''' Small Distributor Sales -$''''''''''''' -$''''''''''''''' 75,000$''''''' 100,000$''''' 150,000$''''''' Large Disributor Sales -$''''''''''''' -$''''''''''''''' -$''''''''''''' 125,000$''''' 200,000$''''''' Product Waste Disposal -$''''''''''''' -$''''''''''''''' 1,080$''''''''' 1,485$''''''''' 2,160$''''''''''' Other Income -$''''''''''''' -$''''''''''''''' -$''''''''''''' -$''''''''''''' -$''''''''''''''' TOTAL REVENUES 50,000$''''''' 258,000$''''''' 601,080$''''' 951,485$''''' 1,227,160$'''
Expenses
Materials COGS -$''''''''''''' 20,775$''''''''' 64,101$''''''' 50,542$''''''' 70,779$'''''''''Salaries 1,500''''''''''' -''''''''''''''''' 68,240''''''''' 135,849''''''' 180,689'''''''''Utilities -''''''''''''''' 12,000''''''''''' 12,000''''''''' 24,000''''''''' 24,000''''''''''' Total Cost of Goods Sold 1,500$''''''''' 32,775$''''''''' 144,341$''''' 210,391$''''' 275,468$'''''''
Gross Profit 48,500$''''''' 225,225$''''''' 456,739$''''' 741,094$''''' 951,692$'''''''
Selling Expenses 13,600$''''''' 74,600$''''''''' 155,000$''''' 197,100$''''' 202,200$''''''' General and Administrative Expenses 27,600$''''''' 65,300$''''''''' 99,400$''''''' 99,800$''''''' 105,800$''''''' 5% Ghana Initiaive 2,500$''''''''' 12,900$''''''''' 30,054$''''''' 47,574$''''''' 61,358$''''''''' Total Operating Expenses 43,700$''''''' 152,800$''''''' 284,454$''''' 344,474$''''' 369,358$'''''''
Operating Income 4,800$''''''''' 72,425$''''''''' 172,285$''''' 396,620$''''' 582,334$'''''''
Other Expenses Interest Expense -$''''''''''''' -$''''''''''''''' -$''''''''''''' -$''''''''''''' -$'''''''''''''''
Pre-Tax Income 4,800$''''''''' 72,425$''''''''' 172,285$''''' 396,620$''''' 582,334$'''''''
Income Taxes (20%) 960$'''''''''''' 14,485$''''''''' 34,457$''''''' 79,324$''''''' 116,467$'''''''
NET Income 3,840$''''''''' 57,940$''''''''' 137,828$''''' 317,296$''''' 465,867$'''''''
Income'Tax'Rate 0.2 0.2 0.2 0.2 0.2Income'Tax 960$'''''''''''' 14,485$''''''''' 34,457$''''''' 79,324$''''''' 116,467$'''''''
Gross'Margin 48,500$''''''' 225,225$''''''' 456,739$''''' 741,094$''''' 951,692$'''''''Net'Operating'Profit 4,800$''''''''' 72,425$''''''''' 172,285$''''' 396,620$''''' 582,334$'''''''EBITA 5,760$''''''''' 86,910$''''''''' 206,742$''''' 475,944$''''' 698,801$'''''''Net'Profit 3,840$''''''''' 57,940$''''''''' 137,828$''''' 317,296$''''' 465,867$'''''''
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
41
True Komfort For You
Balance Sheet
Balance'SheetKombo'KomfortBalance Sheet (pro forma) End of T0 T1 T2 T3 T4 T5TOTAL Assets $45,000 $87,308 $368,427 $719,968 $1,127,030 $1,623,504Current 45,000 87,308 368,427 719,968 1,127,030 1,623,504 CASH 35,037111 20,437111111 78,402111111 42,268111111111 86,332111111111 288,3351111111A/R 4111111111 50,000111111 258,0001111 601,0801111111 951,4851111111 1,227,1601111Inventory 4111111111 4111111111111 4111111111111 4111111111111111 4111111111111111 4111111111111111
4111111111 4111111111111 4111111111111 4111111111111111 4111111111111111 4111111111111111Regular1Strength1Inventory 6,81311111 2,27111111111 6,92511111111 10,525111111111 13,188111111111 18,331111111111Extra1Strength1Inventory 4111111111 4111111111111 4111111111111 3,59511111111111 4,31811111111111 5,52411111111111
Total1Inventory 6,81311111 2,27111111111 6,92511111111 14,120111111111 17,506111111111 23,855111111111Prepaid1expenses 3,15011111 14,600111111 25,100111111 62,500111111111 54,200111111111 60,300111111111
Noncurrent Assets - - - - - - Leased1Plant,1Property,1and1Equipment 4111111111 4111111111111 4111111111111 4111111111111111 4111111111111111 4111111111111111Depreciation 4111111111 4111111111111 4111111111111 4111111111111111 4111111111111111 4111111111111111Net1PPE 4111111111 4111111111111 4111111111111 4111111111111111 4111111111111111 4111111111111111Investments 4111111111 4111111111111 4111111111111 4111111111111111 4111111111111111 4111111111111111Patents1/1IP 4111111111 4111111111111 4111111111111 4111111111111111 4111111111111111 4111111111111111Goodwill
TOTAL Liabilities - 38,468 161,647 475,360 665,126 795,733 Salaries/Dividends - 38,468 161,647 475,360 665,126 795,733 A/P 4111111111 38,468111111 161,6471111 475,3601111111 665,1261111111 795,7331111111Bank1loan1payable 4111111111 4111111111111 4111111111111 4111111111111111 4111111111111111 4111111111111111Accrued1liabilities 4111111111 4111111111111 4111111111111 4111111111111111 4111111111111111 4111111111111111Estimated1tax1liability 4111111111 4111111111111 4111111111111 4111111111111111 4111111111111111 4111111111111111Current1portion1of1LT1debt 4111111111 4111111111111 4111111111111 4111111111111111 4111111111111111 4111111111111111
Noncurrent Liabilities - - - - - - Long4term1debt 4111111111 4111111111111 4111111111111 4111111111111111 4111111111111111 4111111111111111Deferred1income1taxes 4111111111 4111111111111 4111111111111 4111111111111111 4111111111111111 4111111111111111
TOTAL Equity 45,000 48,840 206,780 244,608 461,904 827,771
Common1stock 45,000111 45,000111111 45,000111111 45,000111111111 45,000111111111 45,000111111111Other1paid4in1capital 4111111111 4111111111111 100,0001111 4111111111111111 4111111111111111 4111111111111111Retained1earnings 4111111111 3,84011111111 57,940111111 137,8281111111 317,2961111111 465,8671111111Dividends (100,000)111111 (100,000)111111 (100,000)111111TOTAL Liabilities + Equity 45,000 87,308 368,427 719,968 1,127,030 1,623,504
BALANCE: Assets - (Liabilities + Equity) - - - - - -
Some indicatorsWorking1capital: 45,000$1 48,840$1111 206,780$1 244,608$11111 461,904$11111 827,771$11111Current1ratio: #DIV/0! 2.27 2.28 1.51 1.69 2.04Debt1ratio:1 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Return1on1Equity: 0.00 0.09 0.40 0.95 2.19 3.21Return1on1Investment: 41 0.914111111111 1 0.291111111111 2.061111111111111 6.051111111111111 9.351111111111111Gross1Margin 0.00 0.97 0.87 0.76 0.78 0.78Profit1margin 4111111111 8% 22% 23% 33% 38%Collections1lag1(days) 4111111111 4111111111111 4111111111111 4111111111111111 4111111111111111 4111111111111111
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
42
True Komfort For You
Statement of Cash Flows
Cash%Flow%Statem
entT3
T2T1
T0M1
M2
M3
M4
M5
M6
M7
M8
M9
M10
M11
M12
Year 1 TotalC
ash from O
perations N
et Earnings
-
- -
-
320
320320
320320
320320
320320
320320
3203,840
Depreciation
-
- -
-
-
- -
- -
- -
- -
- -
- 0
Am
ortization-
-
-
-
- -
- -
- -
- -
- -
- -
0 O
ther Non-cash C
harges-
-
-
-
- -
- -
- -
- -
- -
- -
0 C
hanges in Assets/Liabilities
-
68133150
99636731
67316731
67316731
67316731
67316731
67316731
673180,776
Cash P
rovided by Operations
06813
31509963
70517051
70517051
70517051
70517051
70517051
70517051
84,616
Cash from
Investing Loan C
osts-
-
-
-
- -
- -
- -
- -
- -
- -
0 P
urchases of Property &
Equipm
ent-
-
-
-
- -
- -
- -
- -
- -
- -
0 C
ash Used in Investing
00
00
00
00
00
00
00
00
0
Cash From
Financing A
DV
S(P
MTS
) on Revolver
-
- -
-
-
- -
- -
- -
- -
- -
- 0
Paym
ents on Long Term D
ebt-
-
-
-
- -
- -
- -
- -
- -
- -
0 P
ayments on D
ividends-
-
-
-
- -
- -
- -
- -
- -
- -
0 P
urchase of Treasury Stock
-
- -
-
-
- -
- -
- -
- -
- -
- 0
CapE
x Loan-
-
-
-
- -
- -
- -
- -
- -
- -
0 P
rogress Paym
ents on Lease-
-
-
-
- -
- -
- -
- -
- -
- -
0 A
ccr'd Int(Pm
ts) on Sub-D
ebt-
-
-
-
- -
- -
- -
- -
- -
- -
0 C
ash Provided by Financing
00
00
00
00
00
00
00
00
0
Change in C
ash0
68133150
99637051
70517051
70517051
70517051
70517051
70517051
705184,616
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
43
True Komfort For You
Cash%Flow%Statem
ent
Cash from
Operations
Net Earnings
Depreciation
Amortization
Other N
on-cash Charges
Changes in Assets/Liabilities
Cash Provided by O
perations
Cash from
Investing Loan C
osts Purchases of Property & Equipm
ent C
ash Used in Investing
Cash From
Financing AD
VS(PMTS) on R
evolver Paym
ents on Long Term D
ebt Paym
ents on Dividends
Purchase of Treasury Stock C
apEx Loan Progress Paym
ents on Lease Accr'd Int(Pm
ts) on Sub-Debt
Cash Provided by Financing
Change in C
ash
Year 2 Quarter 1
Year 2 Quarter 2
Year 2 Quarter 3
Year 2 Quarter 4
Year 2 TotalYear 3 Q
uarter 1Year 3 Q
uarter 2
14,48514,485
14,48514,485
57,94034,457
34,457-
-
-
-
0
-
-
-
-
-
-
0-
-
-
-
-
-
0
-
-
101,075101,075
101,075101,075
404,298166,314
166,314115,560
115,560115,560
115,560462,238
200,771200,771
-
-
-
-
0-
-
-
-
-
-
0
-
-
00
00
00
0
-
-
-
-
0-
-
-
-
-
-
0
-
-
-
-
-
-
0-
-
-
-
-
-
0
-
-
-
-
-
-
0-
-
-
-
-
-
0
-
-
-
-
-
-
0-
-
0
00
00
00
115,560115,560
115,560115,560
462,238200,771
200,771
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
44
True Komfort For You
Cash%Flow%Statem
ent
Cash from
Operations
Net Earnings
Depreciation
Amortization
Other N
on-cash Charges
Changes in Assets/Liabilities
Cash Provided by O
perations
Cash from
Investing Loan C
osts Purchases of Property & Equipm
ent C
ash Used in Investing
Cash From
Financing AD
VS(PMTS) on R
evolver Paym
ents on Long Term D
ebt Paym
ents on Dividends
Purchase of Treasury Stock C
apEx Loan Progress Paym
ents on Lease Accr'd Int(Pm
ts) on Sub-Debt
Cash Provided by Financing
Change in C
ash
Year 3 Quarter 3
Year 3 Quarter 4
Year 3 TotalYear 4 Total
Year 5 Total
34,45734,457
137,828317,296
465,867-
-
0
00
-
-
00
0-
-
0
00
166,314166,314
665,254596,828
627,081200,771
200,771803,082
914,1231,092,949
-
-
00
0-
0
00
00
00
00
-
-
00
0-
-
0
00
-
-
-100,000-100,000
-100,000-
-
0
00
-
-
00
0-
-
0
00
-
-
00
00
0-100,000
-100,000-100,000
200,771200,771
703,082814,123
992,949
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
45
True Komfort For You
Management
Project Manager- Damon Giambrone
Damon’s primary responsibilities consist of analyzing the markets for our product
as well as overseeing the project. His knowledge of digital marketing has provided him
the skill set to understand and identify market trends. He has the ability to define target
customers for Kombo Komfort, which is especially true when it comes to the introduction
of a new product market. With knowledge of the nutraceutical and all natural supplement
industry, he can identify and define the specified markets for our product. Damon
possesses the ability to recognize the competitors in the marketplace, while defining
Kombo Komfort’s unique services as a company. Damon has previous experience
working at a start-up company, Wrightstown Health and Fitness. He is experienced in the
field of health and wellness with a background in athletic training and masters in human
anatomy and physiology. His athletic training background provides him with knowledge
in the area of injuries, injury prevention, and the inflammatory response to injury. His
leadership quality will be an asset to the Kombo Komfort team.
Marketing- Alvand Yarahmadi
Alvand is a Certified Strength and Conditioning Specialist and an active member
in the National Strength and Conditioning Association. Alvand has built a vast amount of
knowledge and an extensive social network in the bodybuilding community, culminating
from his several years of competitive experience. Furthermore, Alvand currently works
for one of the fastest growing exercise companies, Fitness & Wellness Plazas, with
known affiliates such as Robert Wood Johnson Hospital and the F&WP center in
Maywood with direct connections to the New York Giants of the National Football
League.
Alvand will contribute to the Kombo Komfort team through managing the
marketing strategies of the company. He is an influential figure in the bodybuilding
community with a well-established and extensive network in the health and wellness
industry, including ties to the NFL. Alvand plans on utilizing his networks to connect
with influential persons in the field of health and wellness. He is firmly committed grow
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
46
True Komfort For You
Kombo Komfort’s recognition and brand name. With his networking capabilities and pull
in the community, he is an asset to our young developing company.
Operations- Ryan Boyd
Ryan has spent over a decade supervising fitness and sports camps. In addition to
his work in management, Ryan holds a personal interest in the human inflammatory
process. Specifically, he focuses on addressing inflammation using natural remedies. In
application, he has worked with hundreds of clients as a personal trainer while offering
specific anti-inflammatory diet and supplementation remedies.
At Kombo Komfort, Ryan will be responsible for the management of the
facilities, product development, and supply chain. Ryan has experience in the organic
healthcare industry, along with exposure to new product development and supply chain
management. He is a very goal driven and detail-oriented individual for management of
the facilities and he will make a great addition to the Kombo Butter team.
Finances- Christopher Wyckoff
Christopher has accumulated years of athletic experience competing at the
national level for Rutgers University’s Division I Track and Field program as a pole-
vaulter and team captain. He has committed his time and effort to focus his studies on
expanding his knowledge of exercise and nutrition to provide lifestyle interventions for
individuals to help improve their athletic performance, health, and increase their ability to
perform activities of daily life. Christopher’s goal is to treat existing injuries and also
provide preventative interventions to mitigate risk for injury and re-injury.
As a member of the Kombo Komfort team, Christopher will lead the financials.
His responsibilities will also include contributions to research and development to drive
innovation and ensure the continued growth of the company. He is a valuable member of
the team because of his competitive nature, along with his extensive knowledge of
physiology. Christopher’s tenacious determination and experience secure his vital role as
a member of the Kombo Komfort team.
Kombo Komfort
*Confidential Information* Reference date May 9, 2015 [email protected]
47
True Komfort For You