Company Name: Last Swab
Company Status: Post Launch Stage
Product Description: reusable cotton swab
Product Categories: Body Care
Date Started: 01/01/2018
Unique Selling Proposition/WOW Factors:
- Reusable cotton swab
- different end points for different applications
- Lasts for 1000 uses
Distribution Channels: Direct
Number of Distribution Points:
Marketing Strategies and Channels:
- Technology stack: Shopify
- Grass roots marketing: Kickstarter, social
- Co-marketing with other companies/partners
- Value prop and main copy and top message: Reusable cotton swab
- Basic call to actions
- Demographics/target customer:
- Offers – none
- Landing Pages/Funnel – appears to be no free shipping
Customer Retention Strategies: Email; UK on others without making purchase
Resource Sustainability Strategies: Product is about sustainability and reducing waste.
Risks: Copy cat products
Average SRP or Avg Order Value $; $24.00
Gross Revenue: $2,800,000.00
Gross Revenue Range: $2,000,000-$9,999,999
Returns %: 2.00%
Cost of Goods Sold (COGS) %: 15.00%
Marketing %: 40.00%
Return on as spend (ROAS): 2.50
Operations %: 40.00%
Customer Lifetime Value $:
Customer Acquisition Cost $:
Repurchase Rate %:
Units Sold Per Week: 5000
Funding Raised $: $1,600,000.00
Funding Structure: Crowdfunded
Monthly Burn Rate:
Additional Information and/or Summary:
- Average order value is probably low – under $75 for benchmark online operations to succeed, but product cheap to ship.
- Repeat purchase rate probably low due to long-life of product.
- Would it make sense to do more color combinations or decorations on the applicator and case to give it more “whimsy”, especially for the beauty market?.
- Could it capitalize on WOM marketing especially in beauty market.
- Product cheap to ship, small, so takes up less warehouse space.
- Reusable, multi-use swab in case produced in different colors.
- No IP so product can be copied.
- Due to risk of copying, company should try to diversify distribution through online and offline resellers/retail as quickly as possible. Travel/aiport stores and through hotels might be a great uncommon retail market to break into because people traveling/vacation tend to be more impulsive with money spending. Great way to spread the product geographically by selling at travel focal points (like airport gift stores).
- Partner with other companies selling products with swab uses may be a great fit to acquire customers and add value to another companies products.
- Looking to expand beyond Last Swab to include “Last Items”; this will help it create brand beyond single product.
- Company indicates mostly positive ROAS, so if breakeven ROAS is estimated at 2.0, then figure doing around 2.5 average, so back into the marketing spend from revenue.
- Early success with crowdfunding but this is rarely an indicator of long-term staying power (See https://edsoehnel.com/right-time-kickstarter-crowdfund-consumer-product-company/). Can company figure out how to appeal to broader market beyond the early adopter crowdfunding crowd? See above ideas for retail distribution and partnerships.
On point with trends in sustainability/less waste, great product with multi-uses in many colors to make it fun and personable, complete with carrying case. Potential for cross-marketing with other companies. Concerned about knock-offs, which can be mitigated if the company can get into offline retail distribution as fast as possible and/or develop more “last item” products.