Bottle Box Columbia
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Transcript of Bottle Box Columbia
BottleBoxHELPING YOU FIND YOUR NEXT FAVORITE DRINK, DELIVERED TO YOUR DOOR
Avneet Singh, Carly Weil, Ethan Than, Ian Mak, Kaushik Tiwari, Phil DuongLEAN LAUNCHPAD | JANUARY 15, 2016
Interviews since yesterday: 5
Interviews to date: 73
Partners• Craft
Wine/Liquor/beer distilleries
• Liquor bottling and packaging units
• Door delivery services such as FedEx, UPS
• Warehouse space providers
• Packaging material designers / manufacturers
• Local bars with a customer base for customer generation and promotional activities
• Airline operators - our monthly updated collection for in flight consumption
• Flavor and special ingredient suppliers
• Flavor / taste / ingredient experts and consultants who understand mixing of flavors
• Bar tools suppliers such as bottle openers, glasses etc.
Activities• Packaging &
shipping• Content creation • Supply chain
sourcing of alcohol product and complementary offerings (garnishes, mixers, food, etc.)
• Logistics operations (storage, orders)
• Quality control • Customer service• Marketing• Supplier
relationship
Value PropositionBox-Side• Monthly discovery
of new and exciting alcohols (beer, wines, spirits, etc.) from small-batch producers unavailable in most major markets
• “Try before you buy” – ability to sample new products and then purchase full-size
Supply-Side• Broadened
customer base and brand awareness for our producer partners
Customer RelationshipsGet:• Social media• Testimonials /
Advertising• Partnering with
suppliers• Promotional samples • Special events (launch
party)Keep:• Responsive customer
service• Feedback mechanisms• Discounts / loyalty
programs• Loyalty rewards (wine
tastings, trip to winery / distillery (e.g., Napa Valley, etc.)
Grow:• Expand customer base
with corporate partnerships
• Geographic expansion (supplier and customer reach)
Customer SegmentsBox-Side• Millennials age 20-
25 starting to discover and develop tastes in alcohol, primarily single women
• Adults 26-40 refining their tastes and interested in broadening their palates, primarily couples
• Corporate clients giving seasonal gifts
Supply-Side• Smaller (by
region, product line, and/or brand awareness) producers seeking new customers
Resources• Supplier /
Breweries• Flavor Specialists /
Professional Tasters to suit flavors to the theme of every season/month
• Bottling and packaging designers
• Order and payment collection system
Channels• Website / app / social
media• Seasonal / theme
events• Email marketing /
newsletter• Industry publication
and sponsorship• Direct sales to
suppliers
Costs• Shipping (requiring 21+ signature)• Licensing fees (by state and alcohol class type)• Alcohol product and accompaniments• Packaging (materials and labor)• Shopify / Cratejoy memberships
Revenue Streams• Monthly / Annual subscription• One-time box purchases• One-time full-size purchases (% of sale)• Payments from producers (monetary or in-kind)
Business Canvas – Day One
BOTTLEBOX – PETAL DIAGRAM
Reta
il Liqu
or
Stor
es
Beer / Wine Clubs
On-Demand
Liquor Delivery
Subsc
riptio
n Boxe
sBrand
Management
Firms
BottleBox
TYPE OF BUSINESSPhysical Product /
Service Resegmented Market
Two-Sided Market
MARKET SIZE
TAM – 44.9M
SAM – 1.4MTarget
Market – 394k
• 319M Americans• 25% over 21• 56.4% drank alcohol in
the past month
• 8.4M New Yorkers
• 1/3 of customers contacted so far would buy service in some form
Average Spend
Churn Ratex Orders
per Yearx = Revenue
Potential
$40 (1 - 75%)
x 6x = $23.6M
Partners• Bartenders• Craft
Wine/Liquor/beer distilleries
• Liquor bottling and packaging units
• Door delivery services such as FedEx, UPS
• Warehouse space providers
• Packaging material designers / manufacturers
• Local bars with a customer base for customer generation and promotional activities
• Airline operators - our monthly updated collection for in flight consumption
• Flavor and special ingredient suppliers
• Flavor / taste / ingredient experts and consultants who understand mixing of flavors
• Bar tools suppliers such as bottle openers, glasses etc.
Activities• Licensing• Packaging &
shipping• Content creation • Supply chain
sourcing of alcohol product and complementary offerings (garnishes, mixers, food, etc.)
• Logistics operations (storage, orders)
• Quality control • Customer service• Marketing• Supplier
relationship
Value PropositionBox-Side• Discovery platform
for new and exciting alcohols (beer, wines, spirits, etc.) from small-batch producers unavailable in most major markets
• “Try before you buy” – ability to sample new products and then purchase full-size
• Curated packages based on your preferences
Supply-Side• Broadened
customer base and brand awareness for our producer partners
Customer RelationshipsGet:• Social media• Testimonials /
Advertising• Partnering with
suppliers• Promotional samples • Special events (launch
party)Keep:• Responsive customer
service• Rating and
recommendations• Discounts / loyalty
programs• Loyalty rewards (wine
tastings, trip to winery / distillery (e.g., Napa Valley, etc.)
Grow:• Expand customer base
with corporate partnerships
• Geographic expansion (supplier and customer reach)
Customer SegmentsBox-Side• Women 25-35,
single, box fanatics, medium incomes, wine lovers but interested in learning more
• Married or co-habituating adults 30-40, higher incomes, like exploring and giving gifts
• Corporate clients giving seasonal gifts
Supply-Side• Smaller (by
region, product line, and/or brand awareness) producers seeking new customers
Resources• Regulatory
Agencies• Supplier /
Breweries• Flavor Specialists /
Professional Tasters to suit flavors to the theme of every season/month
• Bottling and packaging designers
• Order and payment collection system
Channels• Bartenders• Website / app / social
media• Seasonal / theme
events• Email marketing /
newsletter• Industry publication
and sponsorship• Direct sales to
suppliers
Costs• Shipping (requiring 21+ signature)• Licensing fees (by state and alcohol class type)• Alcohol product and accompaniments• Packaging (materials and labor)• Shopify / Cratejoy memberships
Revenue Streams• One-time sample box purchases• One-time full-size purchases (% of sale)• Payments from producers (monetary or in-kind)
BUSINESS MODEL CANVAS – DAY TWO
CUSTOMER SEGMENTS
Female, single, 25-35, “box
fanatic”, primarily wine drinker, driven
by learning new things and
doing things with friends
Betty Box
Couples or co-habitants, 30-40, wine and
spirits drinkers, driven by
discovering new things,
likes giving fun gifts
The Jones’
Male, single or married, 20-
40, single alcohol fan,
likes getting a deeper
knowledge of what he likes and giving fun
gifts
Whiskey Will
Partners• Bartenders• Craft
Wine/Liquor/beer distilleries
• Liquor bottling and packaging units
• Door delivery services such as FedEx, UPS
• Packaging material designers / manufacturers
• Local bars with a customer base for customer generation and promotional activities
• Flavor and special ingredient suppliers
• Flavor / taste / ingredient experts and consultants who understand mixing of flavors
• Liquor stores
Activities• Licensing• Packaging &
shipping• Content creation • Supply chain
sourcing of alcohol product and complementary offerings (garnishes, mixers, food, etc.)
• Logistics operations (storage, orders)
• Quality control • Customer service• Marketing• Supplier
relationship
Value PropositionBox-Side• Discovery platform
for new and exciting alcohols (beer, wines, spirits, etc.) from small-batch producers unavailable in most major markets
• Monthly: Box that highlights one alcohol that comes with everything you need to make a cocktail with it, plus recipes to make more
• Whenever you want: Sample box of alcohols around a theme (e.g. whiskey)
Supply-Side• Broadened
customer base and brand awareness for our producer partners
Customer RelationshipsGet:• Social media• Testimonials /
Advertising• Partnering with
suppliers• Promotional samples • Special events (launch
party)Keep:• Responsive customer
service• Rating and
recommendations• Discounts / loyalty
programs• Loyalty rewards Grow:• Expand customer base
with corporate partnerships
• Geographic expansion• Suggested recipes
Customer SegmentsBox-Side• Women 25-35,
single, box fanatics, medium incomes, wine lovers but interested in learning more
• Married or co-habituating adults 30-40, higher incomes, like exploring and giving gifts
• Males 20-40, single liquor fans, like trying more of what they like and giving gifts
Supply-Side• Smaller (by
region, product line, and/or brand awareness) producers seeking new customers
Resources• Regulatory
Agencies• Supplier /
Breweries• Flavor Specialists /
Professional Tasters to suit flavors to the theme of every season/month
• Bottling and packaging designers
• Order and payment collection system
Channels• Bartenders• Website / app / social
media• Seasonal / theme
events• Email marketing /
newsletter• Industry publication
and sponsorship• Direct sales to
suppliers
Costs• Shipping (requiring 21+ signature)• Licensing fees (by state and alcohol class type)• Alcohol product and accompaniments• Packaging (materials, additions, and labor)• Shopify / Cratejoy memberships
Revenue Streams• Ongoing monthly highlight box• One-time sample box purchases• One-time full-size purchases (% of sale)• Payments from producers (monetary or in-kind)
BUSINESS MODEL CANVAS – DAY THREE
TOP BOXES
VALUE PROPOSITION
Betty
Box • “Try before I
buy”• Curated
collections of things I like
• Easy, delivered right to me
• Recipe cards and everything I need to make it
• Like opening a present every month
The
Jone
s’ • Discover new and interesting things
• Enjoy feeling cultured
• Get something I can’t find anywhere else
• Great gift
Whi
skey
Will • Get things I like
based on my preferences
• Broaden my knowledge
• Learn about new, cool products
• Great gift
Partners• Bartenders• Craft
Wine/Liquor/beer distilleries
• Liquor bottling and packaging units
• Door delivery services such as FedEx, UPS
• Packaging material designers / manufacturers
• Local bars with a customer base for customer generation and promotional activities
• Flavor and special ingredient suppliers
• Flavor / taste / ingredient experts and consultants who understand mixing of flavors
• Distributors / Wholesalers
Activities• Licensing• Packaging &
shipping• Content creation • Supply chain
sourcing of alcohol product and complementary offerings (garnishes, mixers, food, etc.)
• Logistics operations (storage, orders)
• Quality control • Customer service• Marketing• Supplier
relationship
Value PropositionBox-Side• Discovery platform
for new and exciting alcohols (beer, wines, spirits, etc.) from small-batch producers unavailable in most major markets
• Monthly: Box that highlights one alcohol that comes with everything you need to make a cocktail with it, plus recipes to make more
• Whenever you want: Sample box of alcohols around a theme (e.g. whiskey)
• Gift optionsSupply-Side• Broadened
customer base and brand awareness for our producer partners
• Revenue stream for distributor
Customer RelationshipsGet:• Social media• Testimonials /
Advertising• Promotional samples • Special events (launch
party)Keep:• Responsive customer
service• Rating and
recommendations• Discounts / loyalty
programs• Loyalty rewards Grow:• Expand customer base
with corporate partnerships
• Geographic expansion
Customer SegmentsBox-Side• Women 25-35,
single, box fanatics, medium incomes, wine lovers but interested in learning more
• Married or co-habituating adults 30-40, higher incomes, like exploring and giving gifts
• Males 20-40, single liquor fans, like trying more of what they like and giving gifts
Supply-Side• Smaller (by
region, product line, and/or brand awareness) producers seeking new customers; who have the ability / appetite to bottle / ship
Resources• Regulatory
Agencies• Supplier /
Breweries• Flavor Specialists /
Professional Tasters to suit flavors to the theme of every season/month
• Bottling and packaging designers
• Order and payment collection system
Channels• Bartenders• Website / app / social
media• Seasonal / theme
events• Email marketing /
newsletter• Direct sales to
suppliers
Costs• Shipping (requiring 21+ signature)• Licensing fees (by state and alcohol class type)• Alcohol product and accompaniments• Packaging (materials, additions, and labor)• Shopify / Cratejoy memberships
Revenue Streams• Ongoing monthly highlight box• One-time sample box purchases, with gifting options• One-time full-size purchases (% of sale)• Payments from producers (monetary or in-kind)
BUSINESS MODEL CANVAS – DAY FOUR
Producers• Wineries• Breweries• Distilleries
Wholesalers
• Distributors
• Importers• Control
Boards
Retailers• On-
premise• Off-
premise
Consumers
THREE TIER SYSTEM
BottleBox
Partners• Bartenders• Craft
Wine/Liquor/beer distilleries
• Liquor bottling and packaging units
• Door delivery services such as FedEx, UPS
• Packaging material designers / manufacturers
• Local bars with a customer base for customer generation and promotional activities
• Flavor and special ingredient suppliers
• Flavor / taste / ingredient experts and consultants who understand mixing of flavors
• Distributors / Wholesalers
• Third party fulfillment companies?
Activities• Packaging &
shipping• Content creation • Supply chain
sourcing of alcohol product and complementary offerings (garnishes, mixers, food, etc.)
• Logistics operations
• Quality control • Customer service• Marketing• Supplier
relationship
Value PropositionBox-Side• Discovery platform
for new and exciting alcohols (beer, wines, spirits, etc.) from small-batch producers unavailable in most major markets
• Monthly: Box that highlights one alcohol that comes with everything you need to make a cocktail with it, plus recipes to make more
• Whenever you want: Sample box of alcohols around a theme (e.g. whiskey)
• Gift optionsSupply-Side• Broadened
customer base and brand awareness for our producer partners
• Revenue stream for distributor
Customer RelationshipsGet:• Social media• Testimonials /
Advertising• Promotional samples • Special events (launch
party)Keep:• Responsive customer
service• Rating and
recommendations• Discounts / loyalty
programs• Loyalty rewards Grow:• Expand customer base
with corporate partnerships
• Geographic expansion
Customer SegmentsBox-Side• Women 25-35,
single, box fanatics, medium incomes, wine lovers but interested in learning more
• Married or co-habituating adults 30-40, higher incomes, like exploring and giving gifts
• Males 20-40, single liquor fans, like trying more of what they like and giving gifts
Supply-Side• Smaller (by
region, product line, and/or brand awareness) producers seeking new customers; who have the ability / appetite to bottle / ship
• Distributors / Wholesalers with wide brand portfolio
Resources• Supplier /
Breweries• Flavor Specialists /
Professional Tasters to suit flavors to the theme of every season/month
• Bottling and packaging designers
• Order and payment collection system
Channels• Bartenders• Website / app / social
media• Seasonal / theme
events• Email marketing /
newsletter• Direct sales to
suppliers
Costs• Shipping (requiring 21+ signature)• Alcohol product and accompaniments• Packaging (materials, additions, and labor)• Shopify / Cratejoy memberships• Revenue share with distributors
Revenue Streams• Ongoing monthly highlight box• One-time sample box purchases, with gifting options• One-time full-size purchases (% of sale)• Payments from producers (monetary or in-kind), less cut
for distributors
BUSINESS MODEL CANVAS – DAY FIVE
WWW.BOTTLEBOX.CRATEJOY.COMVisit us on the web! Taking pre-orders now!
APPENDIX
PROPOSED EXPERIMENTS – ROUND 1
Experiment: Physical box showing Question: Would people buy our MVP box? How much would they pay? Pass/Fail Signal: Contact information for pre-order; price range
Experiment: Speak to bar owners Question: Would bars serve as partners / sales channel? What would they need to
get back? Pass/Fail Signal: Contact information
Experiment: Go to locations outside bars (e.g. Grand Central, barbershops) Question: Are there people who would still prefer a subscription model? Pass/Fail Signal: Contact information for pre-order
Experiment: Speak to more producers Question: Would producers give us free product? What would they need to get back? Pass/Fail Signal: Receiving free product
RESULTS OF EXPERIMENTS – ROUND 1 • Hypothesis: What constitutes an MVP? What price?• Experiments: Showed seven mock boxes in Uris• Results: People loved the boxes, two in particular,
~$20• Iterate: Show more people
Physical Box
Showing (MVP)
• Hypothesis: Liquor stores and bars will want to partner
• Experiments: Spoke to owners about partnership structures
• Results: Not a huge value prop for them, mostly a headache
• Iterate: Find other channel partners
Speak to Shop
Owners• Hypothesis: There’s a different segment that
doesn’t go out• Experiments: Set up in Grand Central and on
campus• Results: Found more of our target customer in
these places• Iterate: More table setups to talk to more targets
Go to Locations Besides
Bars
PROPOSED EXPERIMENTS – ROUND 2
Experiment: More box showings with our most popular boxes Question: More validation of which target segments prefer which box,
and how much will they pay? Pass/Fail Signal: Ask for orders, make them choose one box
Experiment: Talk to liquor stores and bars Question: Do liquor stores or bars want to partner with us as a sales
channel? Pass/Fail Signal: Ask to talk to customers in the store, ask for term sheet
Experiment: Talk to producers Question: What sort of producers are attracted to our model? What
logistic capabilities do they already have vs. what do we need to supply? Pass/Fail Signal: Contact information for future sales
RESULTS OF EXPERIMENTS – ROUND 2
• Hypothesis: What constitutes an MVP? What price?
• Experiments: Showed seven mock boxes in Uris
• Results: People loved the boxes, two in particular, ~$20
• Iterate: Show more people
Physical Box
Showing (MVP)
• Hypothesis: Distributors and producers will want to partner
• Experiments: Spoke to owners about partnership structures
• Results: Very interested, but very concerned about logistics
• Iterate: Develop succinct value proposition & target producer type
Speak to Distributo
rs / Producer
s
PROPOSED EXPERIMENTS – ROUND 3
Experiment: Talk to VC firms Question: What advice can we learn from experienced professionals? Pass/Fail Signal: Business cards / offers of investment
Experiment: Talk to competitors / online retailers Question: How do they handle the logistics of shipping? Pass/Fail Signal: Specific states they ship to
RESULTS OF EXPERIMENTS – ROUND 3
• Hypothesis: Experienced VCs will know common pitfalls
• Experiments: Speak with VC firms with similar investments
• Results: VC people are very busy• Iterate: Keep trying to call
Talk to VC
Firms• Hypothesis: Online retailers use
FedEx to ship• Experiments: Spoke to online
retailers and competitors• Results:• Iterate:
Talk to Online Retaile
rs
OTHER BOXES
BottleBoxTEAM MEMBERS
Avneet Singh
Carly Weil
Ethan Than
Ian Mak
Kaushik Tiwari
Phil Duong
Degree Program
MS in Management Science & Engineering
Executive MBA
Executive MBA
Executive MBA
BSEngineering Management Systems
MBA
LinkedIn /avneetsinghlinkedin
/carlyweil /ethan-than-81a0336
N/A /kaushikktiwari
/philongduong
SME? Yes Yes No No No YesTeam Role Designer /
HustlerHustler / Product Picker
Hustler Hustler Hacker / Product Picker
Product Picker
Anything interesting we should know?
Currently works part time to derive customer insights from Social Media
Currently works part time with a wine event company
Project management / quality background
Finance background, tech interest on the side
Took a year off to start a digital health startup
Founder of non-profit
OUR TEAM