Omg e245 march 2014 final
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Transcript of Omg e245 march 2014 final
[ Andre ]
[JingShu]
[ Michael ]
[YiXin]
[ Sales, Design, Hacking ]
[ Sales, Design, PM ]
[ Sales, Biz. modeling ]
[ Sales, Research ]
OH MY LEANLAUNCHPAD!
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• Problem:
It’s difficult to manage purchasing and estimate need of snacks for employees/students
• Need:
A reliable and efficient way to order snacks for healthy, happy, productive employees and students
Access to new and differentiated brands with most being socially responsible brands (CSR benefit)
• Progressive universities o Payer
Archetype: Dining services director, Coach for sport teams, Professors
o User: employee/students
• Fortune 2000o Payer
Archetype: Cafeteria supplies person, HR director
o User: employee
• Direct sales• Web sales• Channel partners
like catering service companies
• Initial sale through field sales force and occasional check ins
• Personal assistance via support staff
• Recurring subscription through sale of snacks [Retail Price – company volume discount (0-20%)]Est. that we get about 30% of retail price as margin
• Subscription fee for value added services later on
• Fixedo Field Sales & Biz devo Development cost
• Economies of scale / variable: o Working capital: snacks with average 40%
of revenueo Handling costs via 3PL
• Financial: Working capital
• IP: snack and nutrition selection
• Human: Field sales force, Developers, Biz dev (channel partners)
• Curate & discover snacks to offer best tasting with best nutrition facts
• Tech – design and dev of ecommerce system (Spree)
• Logistics - Shipping and warehousing
Channel / Sales:• Catering service
companies like Bon Appetite
• NGOs who are battling obesity and GMOs
Supply:• Snack
manufacturers• Trade Shows
Technology / scale:• Ecommerce, cloud
support tools• 3PL (third party
logistics) company
We tried to figure out who our customers would be
Universities• There are a relatively limited number of universities• Most universities need to resell their snacks to price-sensitive students
Cafes/Stores• Smaller cafes wanted new healthy snack providers• Health-focused cafes were most interested, and have become repeat customers
Companies• Companies complained that snack choosing and ordering is laborious• Unpacking snacks is also a waste of time• Gauging employee preferences is difficult• There are many companies who want to provide free snacks to employees
We tested the model by interviewing university cafeteria managers, café and store managers and company office manager
Quality ofopportunity
End buyers
Resellers
OMG’s value chain
Food ingredient producers
Snack manuf-acturers
Companies w/out
catering
Distributors Retail End consumers
Packaging producers
% retail
Retail cost ($)Dang coconut
Example firms
17% 33% 39% 100%80%
0.50 1.00 1.17 2.992.40
Cafes
Universities
THE CUSTOMEREmployees
HappinessManager
Office Manager or CEO, CFO
Employees who are
health conscious
Employees & community
Employeeswho love
unhealthy snacks
• No catering service or distributor
• Tends to be female• In their 30s• Less tech savvy• Strong social network
• Tends to order from
Safeway or Costco• Purchasing is 10-15%
of their job• Reacts to employee
feedback
SALES CHANEL
Direct sales/Events
Catering ServiceDistribution Company
Health focused institutions
CustomersWeb
sales/Adwords
Telesales/Sampling
Cost OverviewExperiment
Direct salesWeb
sales/Adwords
Telesales/Sampling
Channels
Yes, Personal touch High Important customers
Yes Medium (under test) Viable through optimization
Yes Medium Under test (conversion rate)
Yes Low (institutions); Must have Revenue share 5% (distribution)
What we did – more sales
Sampling & drop offs
Targeting multi locations & reordering
Partnerships
First order acquisition test• About 40 drop offs• No conversions yet after 1 week• Further experiment built on it (follow ups)
Subscription & sales scaling test• Director of global operations: stealth• Free newly discovered samples: Silver lake• Reordering: Apple, Yammer, Harvard,
Stanford, Sprout, Playphone
Channel sales & cross selling test• Online marketplace: Channel & delivery 5-
10% commission• Courier & shipping companies: $15/drop• Snack vendors: Philz coffee
What we found
3pm snacks • Core business: Branding & bonding• Trojan horse: upselling to breakfast, coffee etc.• Employee productivity research
Employee engagement
platform
• Point system: feedback loop• Data & analytics: software• Defensibility: employee relationships with
upselling and marketing opportunities
18.9 18.9 19.1
17.4 17.4 17.5
11.3 11.3 11.45.1 5.44.5 4.9 5.03.2 3.5 3.71.5 1.7 1.8
Baked GoodsSweet and Savoury SnacksDrinking Milk ProductsBottled WaterJuiceSports and Energy DrinksBiscuits
RTD Coffee
Breakfast CerealsYoghurt and Sour Milk ProductsHealthy Sweet and Savoury SnacksSnack BarsHealthy Snack BarsRTD TeaMeal Replacement
13
220.2
49.8
36.2
18.1
15.613.8
8.57.5
6.65.7
12
213.7
48.6
34.5
17.8
15.113.4
8.07.1
6.3
2011
206.2
47.4
32.9
16.8
13.813.2
7.66.7 6.0
USA IS $220B SNACK MARKET$14B IN HEALTHY SNACKS
9% CAGR
TROJAN HORSE GROWTH STRATEGY
3PM SNACKS FOR TECH COMPANIES
OFFERS
PRODUCTS
SEGMENTS
CONSUMER
TECH: EMPLOYEEENGAGEMENT
9AM
EVENTS
FAMILY DELIVERY
KIDS BOX
CAFES
GYMS
GIFTSSPORT TEAMS
BIOTECH
COFFEE
WATERFRUIT
STATIONARY
MEETINGS
GEOGRAPHY
USA INTERNATIONAL