TanOrganic

Idea

Introduction

TanOrganic is a Eco-certified Organic Sunless Tanning Brand. We have a unique branding strategy that we feel sets us apart from all other tanning brands.Our packaging and brand stands apart, and simply say what the product is - “Organic Tan”. TanOrganic contains no synthetic ingredients such as perfumes or parabens and is 84% Aloe Vera based for a premium tan that hydrates the skin.

We have recently been approved for an innovation project with a third level institute which is to be primarily funded for €95k by the Irish Government. This project will grow natural sunscreen compounds which are oil/water soluble that may ultimately replace traditional chemical based sunscreen products. With the sun care market being the fastest growing sector in the personal care cosmetic market growing at 6.5% p.a with a value of €7bn+ in 2013 the opportunity for a new patented natural ingredient which can be used in all sunscreens is clear to be seen.

Intended impact

Problem: Current problems we believe customers/users are facing or problems using services by competitors.

Up to 64% of what you apply onto the skin can be absorbed into the skin. If you care about what you eat you really should care about what you put on your skin, especially when you are leaving it on your skin for such long periods of time. TanOrganic has developed a natural organic tan that is a personal care beauty product designed to stay on the skin for 7-10 days. We have found most beauty products are applied and removed from the skin in less than 24 hours. Most people shower once or twice every day and use products such as shower gel, shampoo, conditioner, toothpaste, body lotion, deodorant, make-up, lipstick etc. In our experience many fake tans have a terrible burnt biscuit smell that lingers after application due to their synthetic additives.

Solution: How does our product/service/platform solves their problem.

If you are going to leave something on your skin for 7 – 10 days why would you not want the ingredients to be all natural and organic? Why would you choose to leave toxic ingredients, colours and fragrances on the largest organ of your body – your skin? TanOrganic has no nasty ingredients or chemicals and no horrific fake tan smell.

How it works: What are the steps involved in using your service.

TanOrganic is 84% Aloe Vera based meaning it is hydrating and moisturising. Using TanOrganic is like squeezing pure organic Aloe Vera juice on your skin. We feel that this also ensures the perfect fade off. TanOrganic uses a lot less product than conventional mousse’s and we feel are far less messy to apply, without the fake tan smell.

Changing the way people care about their skin:

Our skin is the largest organ of the body. On average women apply about 2 kilos of chemicals and ingredients on their skin each year from personal care products. You would never inject that amount of chemicals into any other of your vital organs. TanOrganic is the safe natural alternative to tanning without the sun.

Substantial accomplishments to date

UK 2015.
Boots UK 200 top stores: July 2015.
www.idealshopping.co.uk: 2014.
Waitrose UK: April 2015.
Superdrug Online: 2015
Wholefoods: Summer 2015 at contract stage.

USA 2016.
www.ulta.com 2016: at final discussion stage.

Australia 2015.
www.woolworths.com.au.
www.myer.com.au.

A few of our many Awards:
Reveal Best Green Tan 2015.
Best Self Tanner “The International Natural Health and Beauty awards 2015”.
Best Self Tanner “ITV This Morning Show May 2015”.
First ever Tan to win an award and be listed in the “The Ultimate Green Beauty Bible”.

We have been approved for an innovation partnership with an Irish Third Level Institute (primarily funded by Enterprise Ireland for €95k), to grow all natural sunscreen compounds which are oil/water soluble that may ultimately replace traditional chemical based sunscreen products from micro algae.

Monetisation strategy

TanOrganic uses a multi-channel concept, combining a national wholesale distribution network, an international distribution network with a retail strategy and e-commerce. By using this model it allows TanOrganic to reach all of its target market. This also facilitates diversification as different markets need different strategies.

In the UK market, TanOrganic look after the marketing and the PR. For the USA, Australia and Canada, distribution will be slightly different due to the logistical challenges of distance and timezones with these markets. In order for TanOrganic to gain significant market penetration, a direct relationship with the large buying groups would be recommended so that a high level of margin could be generated by TanOrganic.

1. Unique Market Position
TanOrganic will occupy a unique market position. In our knowledge we are alone in this space as we believe we are the only Eco-certified self-tanning brand in the world. The global market for natural and organic cosmetics is very promising.Natural and cosmetic products have grown significantly in popularity over the last 10 years. The European market alone is growing annually by 20%.

2. Market Penetration
We feel that interest and demand for TanOrganic from overseas markets has been phenomenal. We have 6 fully localised e-commerce websites with more in the pipeline for greater global penetration.

3. Attractive Margins
We feel that all of TanOrganics products have very attractive margins and through economies of scale and new packaging developments, management hope to continue to increase margins over the next 3 years.

4. Multi Channel Distribution
Using a national wholesale distribution network, an international distribution network with a retail strategy and e-commerce, TanOrganic has all areas of distribution so that all global customers can be targeted.

5 Online Sales
Our belief is that this channel has the biggest opportunity for growth with the highest margins.

Use of proceeds

TanOrganic is a rapidly growing manufacturer and distributor of an organic Eco Certified self tanning product. TanOrganic uses a multi-channel concept, combining a national wholesale distribution network, an international distribution network with a retail strategy and e-commerce. The company is expanding quickly and currently exports to 18 countries. This number is continuously increasing and in 2014/2015 distribution to potentially 2 of our biggest markets, the UK and Australia began. In 2016 we plan on targeting the US market. Due to this expansion, the company is now seeking capital to accelerate this growth through investment. These funds will be used to finance additional advertising, marketing, promotions, merchandising, staffing & stocking costs which will be needed to support accelerating sales growth in these new markets. We believe that these new funds will enable TanOrganic to reach high volume sales and profitability.