Investment Plan for Blueland: Maximizing Profit, Environmental Impact, and Long-Term Growth
Blueland, founded in 2019, offers a range of eco-friendly cleaning and personal care products direct to consumers. The challenge is to create a business investment plan that ensures profitability, positive environmental contributions, and sustainable growth. Key considerations include maximizing the triple bottom line, choosing sales models wisely, and defining product categories strategically. Blueland's core values of environmental care, high-performance products, innovation, and customer satisfaction drive its mission. The analysis aims to understand Blueland's resources in terms of value, rarity, and ability to be imitated.
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Blueland Cleaning the planet
INTRODUCTIONS WE ARE: YOU ARE: University of Alberta Consulting Team Blueland Board of Directors Classification: Protected A
AGENDA OPPORTUNITY ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION CONCLUSION Classification: Protected A
COMPANY OVERVIEW Founded in 2019 by Sarah Paiji Yoo(CEO) and John Mascari (COO). (Yoo leads Marketing / Development, Mascari leads Operations). 15 different products (cleaning, personal care). Direct to Consumersales model. 10 million productstoover 1 million customerssince 2019. Expansion into Canada in 2021;ship to UK, Australia and New Zealand. Strong Corporate Social Responsibility (Cradle to Cradle, B Corp, USDA Biobased Preferred) Classification: Protected A
PRODUCTS Cleaning Supplies Personal Care Cleaners Laundry Dish Toilet Soap Multi- Surface Cleaner Laundry Starter set Toilet Cleaner Botanical Hand Soaps Dish Duo Cloud Cloth Body Wash Bathroom Cleaner Oxi Laundry Booster Foaming Hand Soaps Facial Cleaner Glass + Mirror Cleaner Laundry dryer balls Natural Collection Mickey and Friends Hand Soap Kit Classification: Protected A
KEY CONSIDERATIONS 2 3 1 Maximize Triple Bottom Line (People, Profit, Planet) Which sales model(s) to use (D2C, B2B, Retail, Online, etc) Which product categories to pursue Classification: Protected A
COMPANY VALUES ENVIROMENTAL CARE & SUSTAINABILITY HIGH PERFORMING PRODUCTS INNOVATION CUSTOMER LOVE Classification: Protected A
THE CHALLENGE To form a business investment plan that positions Blueland to maximize profit, positive environmental impact, and long-term growth of the company. Classification: Protected A
VRIO Understanding Blueland's resources Valuable? Rare? Inimitable? Organized? Environmentally friendly cleaning products First mover advantage, patents Customer relationships High customer lifetime value, strong customer love High quality products Strong brand image Y Y Y N Y Y N Y Y Y Y N N N Y Y Classification: Protected A
VRIO Understanding Blueland's resources Valuable? Rare? Inimitable? Organized? Environmentally friendly cleaning products First mover advantage, patents Customer relationships High customer lifetime value, strong customer love High quality products Strong brand image Y Y Y N Y Y N Y Y Y Y N N N Y Y KEY TAKEAWAY: Opportunity to convert temporary to sustainable competitive advantage Classification: Protected A
PORTERS FIVE FORCES Understanding the cleaning products industry Buyer power Supplier Treat of substitutes Threat of new entrants Competitive rivalry power Weak Moderate Weak/moderate Weak Strong Low switching costs for consumers Patented chemical formulations Consumers will always need cleaning supplies Natural products such a as vinegar Industry leading consumer goods companies can deter entrants Consumers make decisions on price KEY TAKEAWAY: Moderately attractive industry - incumbents with a niche are best positioned for success Classification: Protected A
PORTERS FIVE FORCES Understanding the beauty and personal care industry Buyer power Supplier Treat of substitutes Threat of new entrants Competitive rivalry Power Strong Moderate Moderate/Strong Weak Strong High switching costs for consumers. Tend to have high brand loyalty Patented chemical formulations Some personal care products are essential items. Consumers can opt out of some beauty products High barriers - Industry leadingconsumer goodscompanies candeter entrants Consumers are price sensitive and have high brand loyalty KEY TAKEAWAY: Highly concentrated and low profitability industry. Niche product and strong brand awareness needed to attract customers to switch brands Classification: Protected A
ALTERNATIVES Decision Criteria Revenue Growth Environmental Impact Product Accessibility Easy to Implement Classification: Protected A
ALTERNATIVES Revenue Growth Positive Environmental Impact Y Y Y Y - Product Accessibility Easy to Implement 1 Do nothing / status quo N N Y Y Y N Y Y Y N Y N Y Y Y 2 Grow beauty industry business 3 Move into commercial cleaning 4 Distribute via large physical retailers Stand-alone retail store 5 Classification: Protected A
ALTERNATIVES Revenue Growth Positive Environmental Impact Y Y Y Y - Product Accessibility Easy to Implement 1 Do nothing / status quo N N Y Y Y N Y Y Y N Y N Y Y Y 2 Grow beauty industry business 3 Move into commercial cleaning 4 Distribute via large physical retailers Stand alone retail store 5 Classification: Protected A
GOAL: Bringing bold, sustainable products accessibly to all people, everywhere. Classification: Protected A
A STRATEGY COMBINING Moving into commercial cleaning Distribute via large physical retailers Classification: Protected A
CLEANING THE PLANET 4 P's of Marketing for both Physical Retail and Commercial Sales Position Place Product Price Classification: Protected A
CLEANING THE PLANET 1 Place Current DTC Business (online via website) Commercial CleaningSales Physical Retail Stores Cleaning companies Building management organizations Big box stores (Target, Costco) Grocery stores Department stores Classification: Protected A
CLEANING THE PLANET 1 Place US/Canada Sales Team VP of Sales Commercial Sales Manager Physical Retail Sales Manager Commercial Sales Associate Retail Sales Associate Commercial Sales Associate Retail Sales Associate KEY TAKEAWAYS: Headhunter is recommended for VP and management roles Priority on recruiting candidates with connections and experience in industry Classification: Protected A
CLEANING THE PLANET 2 Promotion Current DTC Business Commercial Cleaning Sales Physical Retail Stores Current social media and marketing promotion Direct sales and conversationsvia company sales team POS displays in retailer Paid social and YouTube ads QR feedback survey on packaging Targets shoppers who are unaware of the brand at point of purchase Targeting repeat customers Targets building managers, owners of cleaning companies and large corporation operations manager Classification: Protected A
CLEANING THE PLANET 3 Product Commercial Cleaning Sales Physical Retail Sales Phase One 1 Gallon reusable storage made from recyclable acrylic Commercial Steel Tins Multi-surface cleaner Bathroom cleaner Glass and mirror cleaner Current Product Lines in New Sustainable, Cardboard Packaging that MinimizesShipping Costs Package Sizes: 5 tab small pack 10 tab large pack 25 tab warehouse bulk pack Phase Two Commercial steel tins (200 tablets) Laundry detergent Dish Detergent Toilet cleaner Refillable commercial bathroom soap dispensers (24oz) Classification: Protected A
CLEANING THE PLANET 4 Price Product Price Price per tablet 5 tab pack $10 $2 10 tab pack $18 $1.80 25 tab pack $40 $1.60 200 tab commercial tin $300 $1.50 1 gallon commercial storage $25 Classification: Protected A
CLEANING THE PLANET Timeline 2022 Q4 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Complete Investment Round Engage Headhunter Hire VP of Sales Build Commercial Product Offering Hire Commercial Sales Manager Build Commercial Sales Team Initiate Commercial Sales Build Physical Retail Product Offering Hire Physical Retailer Sales Manager Hire Physical Retailer Sales Team Initiate Physical Retailer Sales Classification: Protected A
CLEANING THE PLANET Implementation costs Action Costs (2 year runway) Headhunter Fee $ 50,000.00 VP Sales $ 1,000,000.00 Commercial Sales Manager $ 200,000.00 Commercial Sales Associates x 2 $ 240,000.00 Key Takeaway: Target Investment Round Raise of $15.5 million to include a 20% contingency Commercial Product Development $ 200,000.00 Physical Retail Offering $ 500,000.00 Physical Retail Sales Manager $ 200,000.00 Physical Retail Sales Associates $ 240,000.00 Physical Retail Product Development $ 200,000.00 Marketing Campaign $ 10,000,000.00 Total $ 12,830,000.00 Classification: Protected A
IMPLEMENTATION Revenue Growth Key Takeaway: Target 1oX growth in 3 years, slightly increase customer lifetime value by increasing accessibility Classification: Protected A
RISKS: IMPACT VS. LIKELIHOOD Risk Response 2 Accept. Leverage first mover advantage and unique selling features. Strong Competition 3 Mitigate. Build retail presence as presented; leverage existing sales channels. 1 Challenges to Retail Presence Impact Mitigate. Train sales staff; price competitively; less shipping cost. Environmental vs. Price-Sensitive for Commerical Sales Likelihood Classification: Protected A
SARAH PAIJI YOO: " it comes back to our mission of maximizing the environmental impact we can have, and in order to do that we need to make the brand as accessible to as many consumers as possible." Classification: Protected A
TRIPLE BOTTOM LINE Maximizing impact for people, planet and profit PEOPLE PROFIT PLANET Healthy cleaning supplies (vegan, hypoallergenic, non- GMO, gluten-free) Reduce single use plastics. Increase sales through retail presence Produce environment- friendly products New target market with commercial / industrial cleaning Contributes to CSR initiatives / reporting for companies. Reduce shipping emissions. Classification: Protected A
SUMMARY Blueland has been very successful quickly unique product, engage consumers COVID-19 expanded products and markets Given evaluation criteria, focusing on cleaning supplies Physical retailers Commercial leaning Do NOT focus on beauty and personal care (for now) dilute resources stronger growth opportunities in cleaning supplies Build on your strengths. Convert a temporary competitive to a sustainable competitive advantage. Classification: Protected A
CLEANING THE PLANET Marketing Campaign Costs Marketing Cost Breakdown Televison Ad Campaign $4,000,000 Online Advertising Campaign $2,000,000 Social Media Campaign $2,000,000 Expand Customer Feedback Capabilities - Third Party $1,000,000 In Store Promotional Materials $1,000,000 Total $10,000,000 Classification: Protected A
