Eco-certified organic self-tanning brand in Waitrose, SuperDrug & Boots.
- Co Kildare, Ireland
Categories: Home & Personal Non-Digital B2C
- Social Media
- Company number
- Incorporation date
- 15 May 2015
- Investment sought:
- Equity offered:
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.
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
Boots UK 200 top stores: July 2015.
Waitrose UK: April 2015.
Superdrug Online: 2015
Wholefoods: Summer 2015 at contract stage.
www.ulta.com 2016: at final discussion stage.
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.
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.
Our target consumer cares about what they apply to their skin. They care about their appearance and are health conscious, diet conscious, anti-ageing and anti sun damage. They are professionals with a hectic lifestyle and high disposable income that like premium products and appreciate quality, especially in concert with service and selection. They like ethically produced products that use premium ingredients, and are drawn to unique solutions that fulfil their needs. Their busy lifestyle creates the need for indulgence and pampering and they like to look good and feel good.
Our product is also marketed towards those with very sensitive skin and specific reactive skin conditions i.e. eczema, psoriasis or vitiligo and who are very anti synthetic additives. Another key market is the market for pregnant or nursing mothers who want to continue using beauty products but only natural and organic products. We feel that TanOrganic fulfils these requirements and provides these customers with a totally organic, premium brand that delivers to their expectations.
We are working with some of the best producers and manufacturers globally to develop, and bring to market, high-quality products for sunless tanning/skin and body care.
Our experience has shown that, with the global awareness campaign to highlight the damage that results from overexposure to the sun and sunbathing, the Sunless tan market has grown significantly. Within this market, premium tans are in steady growth, as consumer’s are willing to spend more on a quality product that gives a premium result, without the associated dangers.
Characteristics of target market
Ireland and the UK have the second and third highest levels of self-tan use in the world respectively. We beleive TanOrganic is fully established in the Irish market.
TanOrganic is currently out-performing many of the major international brands in Ireland where we compete directly with them. Ireland however is not the biggest market for TanOrganic.
In the UK the self-tanning industry now has a retail value of more than £100million. It is one of the fastest-growing sectors of the cosmetics industry, which itself is thriving in a positively unseemly way compared to the rest of the economy. In the USA market the self-tanning industry was projected to generate around $775.3million in 2014.
In Australia the self-tanning market is valued at in excess of €20 million and similarly in Canada. With annual growth forecast in the US of between 2013 and 2018 to be 12.8%, it is clear to be seen that the future of TanOrganic is in the export market.
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. Different markets need different strategies and this approach allows us to adapt accordingly.
We were recently voted best tan on ITV's This Morning show and received coverage in many of the top UK publications including the Daily Mail. Emphasis will be placed on Digital marketing and social media to drive online sales which have increased significantly over the past two years and driving consumers to our store listings such as Holland & Barrett, Waitrose, Boots and Lloyds Pharmacy.
For the US, Australia and Canada, distribution will be slightly different due to the logistical challenges with being located so far away from these markets. Pharmacies, health stores, beauty concept stores, department stores and online will be the main channels to the consumers in these jurisdictions.
In order for TanOrganic to gain significant market penetration, a direct relationship with the large buying groups would be recommended. This would mean that a high level of margin could be generated by TanOrganic which could potentially be reinvested in marketing and merchandising, and on the ground sales support. We believe that these will be some of the key success factors to pulling sales through these channels along with commitment by senior executives from TanOrganic to visit the market 4 to 5 times annually. A broker will be appointed in each territory along with a 3PL (3rd Party Logistics) company for distribution and a PR agency.
TanOrganic has a strong focus on relationships with online beauty influencers and Beauty Blogging with Youtube tutorials having had a direct return on investment with online sales showing huge potential.
TanOrganic is an Eco-Certified Organic Sunless Tanning Brand. TanOrganic has a unique branding strategy which we feel sets it apart from all other tanning brands.Our packaging stands apart and our name says exactly what we are - “Organic Tan”. TanOrganic contains no synthetic ingredients such as perfumes or parabens and is 84% Aloe Vera based, resulting in a sunless tan that is a rich moisturising/anti-ageing treatment.
We outsource all of our manufacturing so that we can focus on new product development, sales and marketing, we are not bogged down with the nitty gritty pains of direct manufacturing and our team can remain compact with a better focus.
TanOrganic occupies a unique market position as we believe that we are the only Eco-certified self-tanning brand in the world, this is the most stringent certification in the market. R&D with Patent Potential: TanOrganic has recently been approved for an innovation partnership with Limerick Institute of Technology which is to be primarily funded by Enterprise Ireland. This project will grow natural sunscreen compounds which are oil/water soluble that may ultimately replace traditional chemical based sunscreen products.
This gives us a very strong advantage over competitors as we will be able to claim anti ageing on all our organic self-tanning products. We believe this has not been done before and we would have the global rights to a patentable natural sunscreen compound ingredient that can be licensed out to the major organic & sunblock manufacturers in this space.
Our name TanOrganic is trademarked and we come up number one organically for 'organic tan' searches, so in effect we have a very dominant presence in the organic tan space online.