Capstone project final presentation.

1. Juo Wei Chen | Travis Hammond | Marissa Herold | Steve McQuaide | Will Schuh

2. DURABILITY
VS.
WEIGHT

3. 3
Wild; untamed.
(le-mo'-lo)
Chinook Jargon
VALUE PROPOSITION
First brand to cater exclusively to the
long-distance hiker, focusing on
market priorities: lightweight, durable,
comfortable
MISSION STATEMENT
We make durable and lightweight
products that exceed the demands of
the long distance hiking community,
inspiring the exploration of their limits,
themselves, and the planet.

4. 4
TARGET CONSUMER
Ages: 23 - 31
Location: United States
Occupation: Accountant,
Massage Therapist
Income: $60,000 - 80,000
Marital Status: Unmarried
Education: Undergraduate
Children: None
ANDREW and KRISTEN

5. 5
CASUAL
ENTHUSIAST
OBSESSIVE
3M
LDH
$500M
SAM
29M
HIKERS
47M
HIKERS
2008 2017
$2.51
BILLIONTotal sales of hiking/trail
shoes & “Big 3” in 2017
TAM
IN SALES
TARGET – 2022
$20,925,000 IN SALES
83,912 UNITS SOLD

6. 6
STRATEGIC + FINANCIAL PROJECTIONS
HORIZONONE HORIZONTWO HORIZONTHREE
Brand + Product
Development
Product Line
Launch
Geographic
Expansion

7. 7
2020 2021 2022
H1H2H3
HORIZON ONE HORIZON TWO HORIZON THREE
- Brand + product development
- Wear testing
- Marketing activation
- Key REI store + .com activation
- Targeted REI Launch (35)
- Product Launch
- Full REI Launch
- Product Expansion
TARGETOBJECTIVES
MAR DEC
JAN DEC
JAN DEC
Shoe
Shelter
Backpack
Sleep system
Shoe Update
Umbrella
Stakes
Trekking Poles
Bivy
Tarp Tent
STRATEGIC TIMELINE

8. 8
COSTS + PERFORMANCE

9. PRODUCT LINE

10. ROOMY TOE BOX
Feel a wide toe box is important
10
83%
WHAT ABOUT WEIGHT?
95% Prefer lightweight footwear

11. 11
ARROW PRODUCT FEATURES
• Lightweight
• IntegraiterTM
• Durable
• GritKnitTM
• Fit/Comfort
• Wide-Toe Box
FOB MSRP
$35.01 $160.00
GPM
78%

12. ARROWPOSITIONING
12
PREMIUM
VALUE
HEAVY LIGHT

13. 13
THE BIG THREE

14. 14
THE LEMOLO LONGHOUSE
• Dyneema® composite fabrics
• Water resistant two-way zipper
• Line locks on all perimeter tie-outs
• Dual peak vents that can open and close
FOB MSRP
$120.09 $500.00
GPM
76%

15. 15
THE LEMOLO PASEESIE
• 950 Sustainable Down
• 20º F (-6º C) temperature rating
• 20” Drawstring and zipper to
open/close footbox as needed
• 19.18 Ounces
FOB MSRP
$65.89 $250.00
GPM
73.5%

16. THE LEMOLO LESAK
16
• 100% Waterproof Dyneema® composite
fabrics
• Hardline with Dyneema® shoulder straps
with 3/8” closed cell foam and spacer mesh
• Adjustable sternum strap with self-
tensioning elastic
FOB MSRP
$65.12 $250.00
GPM
74%

17. HORIZON THREE AND BEYOND VLP
17
UL Umbrella
UL Tent Stake
UL Trekking Poles

18. BRANDPOSITIONING
18
PREMIUM
VALUE
HEAVY LIGHT

20. MARKETING PLAN

21. PRIMARY | ATTRACT
Hike Your Own Hike
SECONDARY | ENGAGE
Go Further, Faster, and Leave Fewer Footprints
TERTIARY | CONNECT
21
The Lemolo Arrow is the first shoe built for the specific needs of
the long-distance hiking community:
Lighter More Durable Better Fit
Hike farther with
less fatigue
More miles, fewer
replacements
Room for long-term
comfort

22. APRIL 2020
REI.com
Hype
FB & IG
Traffic Driving Ads
$3000
4/1 – 6/1/20
22
BRAND BUILDING + PREP
MARCH – AUGUST 2020
ONLINE
MARCH 2020
Brand
Launch
FB & IG
Impression Ads
$1000
Mar 20
JUNE 2020
REI.com
Content Marketing
FB & IG
Traffic Driving Ads
$3000
6/1 – 8/30/20
OFFLINE
JUNE 2020
Purchase and decal-wrap Sprinter van for
grassroots experiential marketing
$40,000

23. 23
SOFT LAUNCH
SEPTEMBER – DECEMBER 2020
ONLINE
SEPTEMBER 2020
REI.com
Preorders
FB & IG
Traffic Driving Ads
$5000
9/20 – 12/20
Banner Ads
Brand Awareness +
Retargeting
$7,200
9/20 – 12/20
OFFLINE
SEPTEMBER 2020
- Local PNW Van Tour
- PCT Days Sponsorship and Experience
- $5,000 Sponsorship
- $7,500 Event preparation & party planning
- $2,000 Digital ad support (FB + IG)
DECEMBER 2020
- Key REI Class Demos
- $5,000 event costs
- SoCal Van Activations REI Locations
- $2,000 brand awareness (FB+IG)
*
*

24. 24
FULL LAUNCH
JANUARY – APRIL 2021
ONLINE
JANUARY 2021
Drive DTC
Sales
FB & IG
Conversion Ads
$10,000
1/21 – 4/21
PPC Ads
High purchase-
intent keywords
$24,000
9/21 – 12/21
OFFLINE
APRIL 2021
- NoBo Trail Angel Campaign
- Van activation to follow largest
concentration of hikers
- Branded experiences to target
consumers
- $20,000 over 4 months: gear, gas,
supplies
- Deep market research
JANUARY 2021
- Retail Fixtures
- Attract, Engage, Connect Elements
- $10,000

25. THANK YOU

26. 26
ORGANIZATIONAL STRUCTURE
Juo Wei Chen
Chief Commercial
Officer
Will Schuh
Chief Executive
Officer
Marissa Herold
Chief Product
Officer
Steve McQuaide
Chief Marketing
Officer
Travis Hammond
Chief Creative
Officer

27. 27
MARKETING ASSETSMOBILE WEBSITE

28. 28
Primary Image Facebook Ad
Instagram Ad
GDN Mobile Leaderboard
GDN Desktop Leaderboard
Outside Buyer’s Guide
Print Ad
Google AdWords Ad
MARKETING ASSETSDIGITAL ADS

29. PRODUCT FEATURES
Durability
Lightweight
Roomy Toe Box
Target Price Point:
$175-200
29

30. POINTS OF DIFFERENCE
First company to cater to distance hikers
2x Durability
30

31. 31
THE LEMOLO ARROW

32. 32
FUNDING RECAP
Angel Round
• $200,000
• April 2019
ü Initial funding to launch brand
ü Demonstrate revenue, support final
development costs
ü Domestic retail extension (REI), product line
extension
Kickstarter
• $50,000 Goal
• April 2019 Launch
SEED Round
• $1M - Safe
• January 2020
• $100K - Revenue Run Rate
Series A Round
• $7M - Equity
• April 2022
• $750k - Revenue Run Rate
ü Support Lemolo until profitable growth
phase/International expansion

33. Argentina &
Chile

34. 34
LATAM EXPANSION ANALYSIS
CONSUMER
PRODUCT
OPERATIONSMARKETPLACE

35. • President Mauricio
Macri
• Protectionist
• Highest trade-waited
import duties
35
TRIAD OVERVIEW
• Devaluation of ARS
• 45% inflation rate
• 60% interest rate
• FX: 1 ARS = $0.027 USD
• 1-for-1 import to local
production
• Open Economy
• FTA’s with US, EU, and
emerging Asian markets
• 3.1% inflation rate
• 2.75% interest rate
• FX: 1 CLP = $0.0015 USD
• Sustainability-focused
CHILEARGENTINA

36. 36
CASUAL
ENTHUSIAST
OBSESSIVE
$67M
$215
MILLION
IN SALES
TARGET – 2023
$5,100,000IN SALES
32,400UNITS SOLD
Total sales of hiking
shoes in 2017

37. 37
CHILEAN CONSUMER
Age: 31
Location: Santiago, Chile
Occupation: Financial Analyst
Income: $30M CLP ($45,000 USD)
Marital Status: Married
Children: None
Notes: Price is important but so is
quality and technology, connected
through mobile
CRISTOBAL

38. 38
TOURISM CONSUMER
Age: 61 & 59
Location: London, England
Occupation: CPA & Grandmother
Income: £115,000 GPB ($145,000 USD)
Marital Status: Married
Children: Two, 3 grandchildren
Notes: Disposable income, values
quality and convenience,
conservationists
PAUL and SUSAN

39. 39
ARGENTINE CONSUMER
Age: 28
Location: Buenos Aires, Argentina
Occupation: UX Designer
Income: $1,800,000 ARS ($49,800 USD)
Marital Status: Unmarried
Education: Undergraduate degree
Children: None
Notes: Wants value for money, non-
loyal, research before buying.
LUCA

40. 40
LAUNCH STRATEGY
Pricing Strategy
Surgical Pricing
MAP Policy
Arrow Distribution
CALZADOS BLANCO / KOMAX
30% wholesale discount
Targeting high income locals +
foreign adventure tourists
$
Take-down Licensing
Calzados Blanco SA
$300k licensing fee + 7%
Royalties
Local manufacturing
Marketing Strategy
Differentiated strategy to
address specific market
segments

41. 41
*
CHILE
DISTRIBUTION
***
ARGENTINA
$180 USD/ $120,888 CLP $200 USD/ $7,567 ARS
$100 USD/ $3,784 ARS
ARROW
COÑARIPE
IMPORT DUTY 6% 35%
DISTRIBUTOR

42. 42
CHILE
FORECASTS
ARGENTINA
$32.86
UNITS
WHOLESALE
REVENUE
LANDED
ARROW ARROW COÑARIPE
$46.22 Licensed
$55.86 $78.57 Licensed
18,942 3,284 10,210
$1,058,000 $258,000 $336,000*
*$300,000 licensing fee + 7% on units sold

43. ARGENTINA
“Discubre La Madre Patria, discubre a tu mismo.”
(Discover the motherland, discover yourself)
CHILE
“Somos juntos, somos la tierra”
(We are one, we are the land)
LOCALIZED MARKETING MESSAGES

44. ARGENTINA
Web-based advertising
TV spots
CHILE
Web-based advertising
Tourism/travel magazines
LOCALIZED MARKETING CHANNELS

45. Lemolo
Income Statement
Jan 2019 - Dec 2023 2019 2020 2021 2022 2023
Revenue
Argentina - Scandinavian - Arrow $0 $0 $0 $ 30 014 $ 258 024
Argentina - Scandinavian - Conaripe $0 $0 $0 $ 8 260 $ 71 470
DTT Revenue $0 $ 26 960 $ 34 160 $ 43 200 $ 54 800
LemoloOutdoors.com $ 7 200 $ 87 660 $ 274 320 $ 860 760 $ 2700 360
Van Retail $ 18 720 $ 137 700 $ 135 000 $ 135 000 $0
KickStarter Revenue $ 76 680 $0 $0 $0 $0
Specialty Retail Revenue $0 $ 178 720 $ 581 280 $ 1844 160 $ 5808 000
Chile - Komax - Arrow $0 $0 $0 $ 187 578 $ 1058 100
Argentina Licensing Fee - Scandinavian$0 $0 $0 $0 $ 380 004
Total Sales $ 102 600 $ 431 040 $ 1024 760 $ 3108 972 $ 10330 758
(Less) Transaction Fees $ 778 $ 6 761 $ 12 280 $ 29 873 $ 81 011
Net Sales $ 101 822 $ 424 279 $ 1012 480 $ 3079 099 $ 10249 747
Cost of Revenue $0 $0 $0 $0 $0
Cost Per Unit - Arrow Chile $0 $0 $0 $ 174 355 $ 759 329
Cost Per Unit - Arrow Argentina $0 $0 $0 $ 28 749 $ 199 624
Cost Per Unit Sold $ 31 465 $ 196 757 $ 406 193 $ 1094 114 $ 3335 972
Total Cost of Revenue $ 31 465 $ 196 757 $ 406 193 $ 1297 218 $ 4294 925
Gross Income $ 70 357 $ 227 522 $ 606 287 $ 1781 881 $ 5954 822
Operating Expenses $0 $0 $0 $0 $0
Website Contracting - Hourly $ 6 300 $0 $0 $0 $0
Conaripe Developer - Hourly $0 $0 $ 25 000 $0 $0
New Hires $0 $0 $0 $ 400 030 $ 400 030
Salaries $ 65 400 $ 261 600 $ 261 600 $ 261 600 $ 261 600
Salary Pay Raise - 2022 $0 $0 $0 $ 405 000 $ 405 000
Increasing Marketing Spend $0 $0 $0 $ 150 823 $ 488 319
South America Market Development $0 $0 $0 $ 421 040 $ 631 560
Arrow Development $ 50 000 $0 $0 $0 $0
Conaripe Development Cost $0 $0 $ 100 000 $0 $0
WeWork Space Rental $ 3 500 $ 5 000 $0 $0 $0
Argentina - Blanco - Arrow $0 $0 $0 $ 10 000 $ 24 000
Argentina - Blanco - Conaripe $0 $0 $0 $ 5 000 $ 12 000
Direct-to-Trail $0 $ 12 000 $ 12 000 $ 12 000 $ 12 000
Van Retail - 2020 $0 $ 20 000 $0 $0 $0
LemoloOutdoors.com $ 5 000 $ 30 000 $ 30 000 $ 30 000 $ 30 000
Van Retail - 2019 $ 16 000 $0 $0 $0 $0
KickStarter $ 6 000 $0 $0 $0 $0
Specialty Retail - US $0 $ 60 000 $ 60 000 $ 60 000 $ 60 000
Van Retail - 2021 $0 $0 $ 15 000 $0 $0
Chile - Komax - Arrow $0 $0 $0 $ 10 000 $ 24 000
Van Retail - 2022 $0 $0 $0 $ 15 000 $0
Total Operating Expenses $ 152 200 $ 388 600 $ 503 600 $ 1780 493 $ 2348 509
EBITDA $ 81 843 $ 161 078 $ 102 687 $ 1 387 $ 3606 313
Interest Expense $0 $0 $0 $0 $0
Depreciation Expense $ 3 000 $ 2 163 $ 2 150 $ 2 150 $ 2 150
Income Tax $ 8 334 $ 2 115 $ 45 375 $ 36 667 $ 756 591
Property Tax $0 $ 1 413 $ 5 650 $ 5 650 $ 5 650
Net Income $ 93 177 $ 166 768 $ 53 813 $ 38 779 $ 2846 222