business model, business model canvas, columbia, customer development, lean launchpad, lean startup, steve blank

1. Interviews since Thursday: 10
Interviews to date: 55

2. WHERE WE STARTED
Graphic designers
• We receive designs in exchange for
equity or cash
Web designers / masters
• We receive ongoing support for
web design in exchange for equity
or cash
Manufacturers
• We receive products in exchange
for cash / commission
Marketing / Branding
• Key element to success
Product development
• Testing of new scents
Brand Partnerships
Web development
• Survey to select ideal profile
Sourcing / Manufacturing
• Must be luxury quality
Direct-to-consumer, custom luxury
home fragrance.
• For the chronic overachiever,
Watson is the solution for those who
deserve an easy, accessible way to
make their home their own.
• Watson provides a fun and easy
shopping experience, an open
conversation with customers, and
tailored luxury candles you never feel
guilty burning.
Branding
Scent quiz / profile
• Custom scents based on preference
Subscription service
Rotating collections
• New scents each season
Gifting concierge
Direct-to-consumer (online)
Pop up shops
• Can consider retail outlets in
select geographies
Graphic / Web designer
• Need a designer to bring to life
IP on scent profiles
Financial investment
• Marketing, initial orders
High frequency candle
purchasers
• Do not change behavior, just
stretch candle buying
22-35 yo affluent young
professionals
High achieving, time poor
• Too busy to make small
decisions, wants help shopping
for items that resonate
Smart enough to buy the generics
at the pharmacy
• Enjoys value from direct-to-
consumer offering
COGS relatively low
• Anticipate to be ~10-15% max
Anticipate marketing and branding to be highest cost
• Ensure customers are reached via social media, influencers, etc., up to ~30% of retail
Sell at a slightly lower RSP than luxury candles
• Offer same quality, added convenience, and can pass on savings to consumer to drive volume
Main streams are try at home ($10), and actual candle ($30-35)
• Slight discount for B2B bulk purchases with strategic partners (Equinox, W hotel etc)
Subscription service

3. DAY 1: VALUE PROPOSITION
Graphic designers
• We receive designs in exchange
for equity or cash
Web designers / masters
• We receive ongoing support for
web design in exchange for equity
or cash
Fragrance House
• We receive development from
IFF (Jo Malone producer) in
exchange for equity or cash
• Both gain prestige (Hawthorne for
Men uses IFF competitor,
Givaudan)
Manufacturers
• We receive products in exchange
for cash / commission
Marketing / Branding
• Key element to success
Brand partnerships
Product and web development
Sourcing / Manufacturing
• Must be luxury quality
Direct-to-consumer, curated,
approachable luxury home
fragrance
• Luxury craftsmanship, but at a price
point she doesn’t feel guilty about
through direct sales
• Accessible branding that
resonates with her
• New path to sale through scent
selection service and/or try at home
to ensure she gets what she likes
Get
• Acquire: Paid, earned media
• Activate: Brand, scent quiz, try at
home, place an order
Keep
• Subscription service
• Include samples for next season
Grow
• Scarcity: limited quantity runs
• New scents seasonally
Online, Direct-to-consumer
• Capitalize on impulse purchase
behavior through ads online
Pop up shops and B2B (goal:
awareness)
Graphic / Web designs
IP on scent profiles
Financial investment
• Marketing, initial orders
Overall:
• 22-35 yo affluent young
professionals
• High achieving, time poor
• Appreciates “smart value” from
direct to consumer
Key segments:
• “Religious” burners: want a
new candle experience / brand
• “Social” burners: want
branding
Gifting
• A non-impulse purchase
occasion: can be satisfied by
gifting a try at home set
COGS relatively low
• Anticipate to be ~10-15% max
Anticipate marketing and branding to be highest cost
• Ensure customers are reached via social media, influencers, etc., up to ~30% of retail
Path to purchase: Scent quiz >> Try at home >> buy one time or order a custom subscription
Pricing: Sell at highest end of low threshold - where customers feel luxury but without guilt
Key insight
• Validated value proposition: people want a
luxury brand at a reasonable price point
• Branding and seeing the actual product /
experience is key in confirming proposition

4. TODAY’S CANDLE MARKET
LuxuryAccessible
Draft - not for distribution

5. DAY 2: CUSTOMERS
Graphic designers
• We receive designs in exchange
for equity or cash
Web designers / masters
• We receive ongoing support for
web design in exchange for equity
or cash
Fragrance House
• We receive development from
IFF (Jo Malone producer) in
exchange for equity or cash
• Both gain prestige (Hawthorne for
Men uses IFF competitor,
Givaudan)
Manufacturers
• We receive products in exchange
for cash / commission
Marketing / Branding
• Key element to success
Brand partnerships
Product and web development
Sourcing / Manufacturing
• Must be luxury quality
Direct-to-consumer, curated,
approachable luxury home
fragrance
• Luxury craftsmanship, but at a price
point she doesn’t feel guilty about
through direct sales
• Accessible branding that
resonates with her
• New path to sale through scent
selection service and/or try at home
to ensure she gets what she likes
Get
• Acquire: Paid, earned media
• Activate: Brand, scent quiz, try at
home, place an order
Keep
• Subscription service
• Include samples for next season
Grow
• Scarcity: limited quantity runs
• New scents seasonally
Online, Direct-to-consumer
• Capitalize on impulse purchase
behavior through ads online
Pop up shops and B2B (goal:
awareness)
Graphic / Web designs
IP on scent profiles
Financial investment
• Marketing, initial orders
Overall:
• 22-35 yo affluent young
professionals
• High achieving, time poor
• Appreciates “smart value” from
direct to consumer
Key segments:
• “Religious” burners: want a
new candle experience / brand
• “Social” burners: want
branding
Gifting
• A non-impulse purchase
occasion: can be satisfied by
gifting a try at home set
COGS relatively low
• Anticipate to be ~10-15% max
Anticipate marketing and branding to be highest cost
• Ensure customers are reached via social media, influencers, etc., up to ~30% of retail
Path to purchase: Scent quiz >> Try at home >> buy one time or order a custom subscription
Pricing: Sell at highest end of low threshold - where customers feel luxury but without guilt
Key Insight
• Customer segmentation shifted from age and
buying frequency to three distinct categories:
o Frequent burners: Burn candles on a
daily or regular basis
o Social Burners: Burn candles when they
have guests/dinner parties
o Gifting: Non-impulse buyers

6. VALUE PROPOSITION BY SEGMENT
Jenna: ”religious” burner Nat: “social” burner
Problem
Solution
• Because luxury candles are expensive, she
often ends up leaving them unlit
• She is unsatisfied with the cheaper
options she resorts to burning frequently
• Luxury craftsmanship, but at a price point she doesn’t feel guilty about
• Accessible branding that resonates with her
• New path to sale through scent selection service and/or try at home to ensure she gets what she likes
Problem
• Doesn’t have enough time to spend on
selecting candles; usually an impulse buy
• Wants to convey status but luxury candles
are a poor value (always buys on sale or
leaves unlit)
Key value from Watson:
new offering / experience
Key value from Watson:
strong branding

7. DAY 4: PATH TO PURCHASE
Graphic designers
• We receive designs in exchange
for equity or cash
Web designers / masters
• We receive ongoing support for
web design in exchange for equity
or cash
Fragrance House
• We receive development from
IFF (Jo Malone producer) in
exchange for equity or cash
• Both gain prestige (Hawthorne for
Men uses IFF competitor,
Givaudan)
Manufacturers
• We receive products in exchange
for cash / commission
Marketing / Branding
• Key element to success
Brand partnerships
Product and web development
Sourcing / Manufacturing
• Must be luxury quality
Direct-to-consumer, curated,
approachable luxury home
fragrance
• Luxury craftsmanship, but at a price
point she doesn’t feel guilty about
through direct sales
• Accessible branding that
resonates with her
• New path to sale through scent
selection service and/or try at home
to ensure she gets what she likes
Get
• Acquire: Paid, earned media
• Activate: Brand, scent quiz, try at
home, place an order
Keep
• Subscription service
• Include samples for next season
Grow
• Scarcity: limited quantity runs
• New scents seasonally
Online, Direct-to-consumer
• Capitalize on impulse purchase
behavior through ads online
Pop up shops and B2B (goal:
awareness)
Graphic / Web designs
IP on scent profiles
Financial investment
• Marketing, initial orders
Overall:
• 22-35 yo affluent young
professionals
• High achieving, time poor
• Appreciates “smart value” from
direct to consumer
Key segments:
• “Religious” burners: want a
new candle experience / brand
• “Social” burners: want
branding
Gifting
• A non-impulse purchase
occasion: can be satisfied by
gifting a try at home set
COGS relatively low
• Anticipate to be ~10-15% max
Anticipate marketing and branding to be highest cost
• Ensure customers are reached via social media, influencers, etc., up to ~30% of retail
Path to purchase: Scent quiz >> Try at home >> buy one time or order a custom subscription
Pricing: Sell at highest end of low threshold - where customers feel luxury but without guilt
Key insight
Channels:
• Validated online as viable channel for luxury candles
• Need to overcome need to smell before buying
• Offer tea lights in traditional channels to capitalize on
impulse buys; can only purchase full size via Watson
Key insight
Customer Relationship (“Get”):
• Learned specific paid / earned media required
• Validated scent quiz and trial set is appealing
Key insight
Revenue Model:
• Validated customers value single purchase option
• Important to offer single buy and subscription

8. SIZE OF THE PRIZE
Draft - not for distribution
$6.1B
home fragrance market
~$1B
direct
Source: Kline, US Market (2015)
~$3B
luxury segment
20%
annual growth

9. DAY 5: WHERE WE ENDED
Graphic designers
• We receive designs in exchange
for equity or cash
Web designers / masters
• We receive ongoing support for
web design in exchange for equity
or cash
Fragrance House
• We receive development from
IFF (Jo Malone producer) in
exchange for equity or cash
• Both gain prestige (Hawthorne for
Men uses IFF competitor,
Givaudan)
Manufacturers
• We receive products in exchange
for cash / commission
Marketing / Branding
• Key element to success
Brand partnerships
Product and web development
Sourcing / Manufacturing
• Must be luxury quality
Direct-to-consumer, curated,
approachable luxury home
fragrance
• Luxury craftsmanship, but at a price
point she doesn’t feel guilty about
through direct sales
• Accessible branding that
resonates with her
• New path to sale through scent
selection service and/or try at home
to ensure she gets what she likes
Get
• Acquire: Paid, earned media
• Activate: Brand, scent quiz, try at
home, place an order
Keep
• Subscription service
• Include samples for next season
Grow
• Scarcity: limited quantity runs
• New scents seasonally
Online, Direct-to-consumer
• Capitalize on impulse purchase
behavior through ads online
Pop up shops and B2B (goal:
awareness)
Graphic / Web designs
IP on scent profiles
Financial investment
• Marketing, initial orders
Overall:
• 22-35 yo affluent young
professionals
• High achieving, time poor
• Appreciates “smart value” from
direct to consumer
Key segments:
• “Religious” burners: want a
new candle experience / brand
• “Social” burners: want
branding
Gifting
• A non-impulse purchase
occasion: can be satisfied by
gifting a try at home set
COGS relatively low
• Anticipate to be ~10-15% max
Anticipate marketing and branding to be highest cost
• Ensure customers are reached via social media, influencers, etc., up to ~30% of retail
Path to purchase: Scent quiz >> Try at home >> buy one time or order a custom subscription
Pricing: Sell at highest end of low threshold - where customers feel luxury but without guilt

10. WHAT’S NEXT
Continue to ”get out of the building” and test a more developed MVP
• Requires: product concept design, mockup of web experience
Develop plan to acquire / hire key resources
• Product designer
• Web designer
• Fragrance house
• Manufacturer (+ supply chain)
Define marketing strategy, especially brand partnerships
Secure funding to carry out plans