Olivia Martins, Hannah Dion, Keely Griffin

Shared Value Analysis

Table of Contents1. People’s Market

a.Historyb.Overviewc.Business Plan

2. Problema.Food Waste

3. Shared Value Solutiona.Overviewb.Plan of Implementation Inside the market

HistoryFounded 1973 as a

collective of women

Student run co-op

Located in student union at UMass

Picture of previous PM employees from the 1970’s

Mission“To provide a place for the

University community to buy fresh, natural foods”

“To provide the University community with an alternative eating place”

“To promote the co-operative and collective movements”

“To educate and inform the community about nutritional, political, and social issues in the realm of the food industry”

Picture of “mission banner” hanging up above the doorway

inside the market

Business Model: Key Partners Dean’s Beans- Orange, MATandem Bagel- Easthampton, MAUNFI: Shipping partnerAll Star Dairy Foods- South Hadley, MAGordon’s Food Service- Taunton, MASustainable IndulgenceConway KitchensPolar-Worcester, MA

Business Model: ResourcesStaff: Co-managers

Brand/sustainable Image

Long history at UMass

Products from key partners

Picture of PM employee behind the counter

Business Model: Value Propositions● Safe space for customers

○High levels of trust between co-managers & customers

● Co-op; customers are both partners and friends

● Go-to source for ethically-gathered food, beverages, and personal care products

Picture of inside the market

Business Model: Cost StructureValue-driven cost structure

Value creation & premium value propositionFixed costs

Rent, payroll, utilities Variable costs

Direct materials, production supplies

Business Model: Revenue Streams●Customers use debit, credit, or cash

○Customers would prefer to use YCMP or Dining Dollars

●Customers pay for experience & variety of products (coffee, bagels, beverages, etc.)

●Decline in revenue over past few years

Value ChainPM’s operations occur at UMassPM sources ethnically gathered foods, beverages, &

personal care productsLocally transported to PMDirect Product partnership with key partnersCommitted WorkforcePM work cultureProducts reach customers only through the store

Working Definition of Sustainability

Small business practices provide the best definition of sustainability

Work to achieve collective goals & promote the knowledge of social issues in the community & market

Support of sustainable issues

Communication ChannelsDirect contact in store

Social media outlets

Communication is aimed toward public & subscribers about sustainability within the community

View of PM from the ILC

Business Model: Customer Segments

Target Market: MillennialsLifestyles of Health and Sustainability

(LOHAS)Values

“Globally aware, charitable, and information hungry”

OutreachMost likely to be informed of & become

engaged in non-profit organizations online via social media

Purchasing HabitsMillennials are expected to buy green

more than 35+ years old

This figure shows the breakdown of green purchasing habits by age. Millennials hold the highest percentages in the super green and true green categories for green purchasing habits

Initiatives and Activities PM only sells non-conflict

productsLocally focused buying enables

a low cost in shipping & carbon emissions

“Bring your own mug”Cuts back on waste &

provides cheap coffee for customers

Employment is based on equality & diversity

Co-managers

Gaps in CSVPM aims to promote awareness surrounding social & environmental issues

PM does not have any CSV initiatives that promote social issue awareness within the surrounding communities

Food WasteNatural Resources Defense Council (NRDC) reported

Americans trash 40% of food supply every year, valued at about $165 billion

The average American family of four ends up throwing away an equivalent of up to $2,275 annually in food

Food waste is the single largest component of solid waste in US landfills

A 15% reduction in losses in the US food supply would save enough food to feed 25 million Americans annually

Implementation Steps1. PM partners with Tandem Bagel 2. PM & Tandem will donate bagels to local

schools, shelters, & other non-profits3. PM & Tandem will promote the new

campaign through social media - “A Bagel On Every Table”

4. PM & Tandem will offer a discounted bagel to customers who participate in the social media campaign

Social Media CampaignCustomers use #ABagelOnEveryTable on

Facebook, Twitter, or Instagram with the handle @peoplesmarket73

Customer must show cashier picture upon purchase to get discounted bagel & spread

PM and Tandem Bagel must promote campaign on their own social media platforms

A tracking component should be installed on PM’s website to track information relating to the campaign

Social Media Examples

Promo from Tandem and PM Promo from customers

Thank You

Referenceshttp://academic.mintel.com/display/695048/http://academic.mintel.com/display/695044/http://www.marketingcharts.com/traditional/demographic-stats-about-us-millennials-40016/http://www.forbes.com/sites/prospernow/2012/07/05/the-new-millennial-values/http://www.millennialmarketing.com/2012/04/at-last-a-millennial-segmentation/http://www.pewsocialtrends.org/2014/05/14/young-adults-student-debt-and-economic-well-being/http://academic.mintel.com/display/654452/#figure49http://nces.ed.gov/programs/digest/d13/tables/dt13_105.20.asphttps://www.census.gov/compendia/statab/2012/tables/12s0278.pdfhttp://www.lohas.com/abouthttp://www.lohas.com/regional-eventshttp://www.lohas.com/abouthttp://academic.mintel.com/display/698639/http://academic.mintel.com/display/698639/http://academic.mintel.com/display/695787/http://academic.mintel.com/display/698645/

References Continued "People's Market." People's Market. Umass, n.d. Web. 18 Apr. 2015.<http://www.umass.edu/rso/peoples/>.Porter, M. E., & Kramer, M. R. (2011). Creating shared value. Harvard Business Review, 62–77.Q&A interview with the staff at the “All-Staff” meetingThe business model canvas and other course content materialsShared Value Initiative - http://sharedvalue.org/https://sharedvalue.org/groups/shared-value-initiative-community/what-does-creating-shared-value-mean-nonprofit-sectorFSG - http://www.fsg.orgPfitzer, M., Bockstette, V., & Stamp, M. (2013). Innovating for Shared Value. Harvard Business Review, 91(9), 100–107.Porter, M. E., Hills, G., Pfitzer, M., Patscheke, S., & Hawkins, E. (2011). Measuring Shared Value (pp. 1–22). FSG. Retrieved from http://www.fsg.orgKurucz, E., Wheeler, D., & Colbert, B. (2013). Reconstructing value: Leadership skills for a sustainable world. University of Toronto Press.http://managementhelp.org/organizationalsustainability/http://gogreenplus.org/nuts-and-bolts-guide/performance-nuts-and-bolts-guide/sustainability-management/sustainability-plans/http://www.sustainabletable.org/472/intro-to-food-waste