Imagine strolling the aisles of your favorite grocery store . You’re a concerned consumer . You know that your everyday choices have an impact on everything from child labor to carbon emissions . Not to mention your family’s health and safety. You pause to take a picture of the bar code on a box of cereal with your smartphone. Instantly, a summary of the ingredients, locations, people, and processes involved in making and delivering that pasta to you appear on your screen. You glance at your personalized ratings system, make a decision based on that, and move on to your next decision point. By harnessing these market forces, eSuade empowers consumers to persuade companies to improve their environmental and social sustainability efforts.
We decided to look at all the players involved in the eLabeling landscape to create a stakeholder map. We believe the two most important factors to us are How interested an entity is in product sustainability And how influencial an entity is in product sustainability. These are our axises Businesses, most of al retailers and manufactureres have the most influence. Because of this they are prime stakeholders as evidenced by their dark green color. Their suppliers, and their suppliers suppliers, are not as inflencial or interested in sustainability, so they are not a primary focus as evidencd by their lighter coloring. The other key stakeholder are consumers, who are diverse in their interst. Individual consumers have little inflence. However, our product aims at providing better sustainability related information, so they can make better buying decisions. In aggregate, this will give them more power to influence producers. Government organizations involved with standards and labeling, such as the EPA and USDA are important players. Many NGO’s, especially those involved in certification, standards, and labeling for example the International organization for standards or the United Laboratories and Green biz environmental standard and a plethors of others are also important. Our plan is to ensure that eSaude can support their efforts, and also to partner with them. However, our initial focus is on developing requirements for retailers, manufacturers, and consumers It’s the only time we talk about it. eTurn pro-sumers , pro-sumption Focus. Which ones.
We decided to take a shot at profiling consumer, and business segments. Our brainstorming resulted in a number of possible consumer segments which we mapped here. Probably the most important criteria is their interst in sustanability which the large green bubble represents. The e darkest green center area represents depicts the highest level of interest, and the lighter outer edge represents the lowest interest. Within the big green bubble, are the the white segment bubbles. The size of these bubbles represents the segments market potential as defined by the number of consumer belonging to the segment.
We also tired to identify psychographic factors that will most likely influcence the adoption of eSuade. We believe these are the top 3. Our user segments have a lot of disparity in their psychographics, and their possible receptivity to our app.
A total of 116 respondents completed the survey 53% were either current students or alumni at Presidio 80% did not have children As the white gummy bear is meant to symbolize, nearly all fell within the middle of the age ranges provided Loyalty card use is much greater than coupon use, which is important when considering how to position eSuade to retailer When it comes to purchasing a new product in a grocery store, friends are the largest influence There was an even mix of HHI levels
83% are somewhat, very or extremely likely to use the eSuade product When asked if they’d be more likely to use the online or mobile element of this product offering, 60% stated mobile …though it should be kept in mind that our sample likely skews a bit more tech savvy than the rest of the country. Reasons for using the eSaude product focus on health and safety, reinforcing why we chose the grocery category, followed by a general interest in sustainability and a desire to influence companies through purchase decisions. There were very few negative comments or concerns expressed by a general concern around time limitations. It will be important for retailers to express ease of use when communicating product benefits.
Data is based on Top 2 Box score, which includes those who said they are extremely or very interested in the feature listed. When it comes to features consumers are most interested in, results support what we heard qualitatively – product comparisons, eCoupons and nutrition tracker rise to the top. This data made clear which features should be included in the product when initially released to market. From there, additional features can be added on.
We also came up with an initial business use profile. We believe that the most important criteria for business adoption will be . How focused on sustainability they are And how focused they are on their customers. In other words, how influenced they are by customers and market perception. Businesses that are not very influenced by customers, and that are not focused on sustainability, such as Monsonto, will not be prime targets. The more focus a company has on consumers, and on sustainability, the more likely a prospect they will be. These logos are meant to represent our approximation of the types of companies and how receptive the will be to the eSuade platform. Type of industry certainly plays into are product’s applicability. But in analyzing our potential base of business prospects, we believe that there are two main factors that will determine their interest in a service like this: How focused on sustainability they re And how focused they are on their customers. In other words, how influenced they are by customers and market perception. Here’s a representation of our thoughts on this. Note, that there are obviously lots more companies, these are examples. Also, many businesses, without the right product mix, or without a direct channel to the customer, would not be prime initial targets for us. We’ve limited this analysis to types of busineses who would be most interested in our services. Crop walmart
Shoppers can access tailored views of product information anywhere and anytime. They can evaluate products, reduce their time spent shopping, protect their family’s wellbeing, and save money. By providing these unique capabilities, retailers will benefit from increased customer loyalty. Retailers can tailor the presentation of information to enhance the perceived sustainability of their programs, store-branded products, and corporate image. Additionally, eSuade enables retailers to “get closer” to their customers through advanced marketing features including real-time promotions management and tracking in-store consumer behavior.
Since we have such a great product, we wanted to design an integrated business model to support a quick ramp up for development and sales. We used the business model canvas from the business model generator book mentioned in class.
eSuade has two primary customer segments: businesses and consumer. Our entry point to businesses is grocery stores chains with an interest in managing their sustainability image. For consumers, its important that they have an interest in sustainability or health that they want to use to make purchasing decisions, and that they are tech savvy.
Based on this segmentation, we then came up with a value proposition: eSuade enables shoppers to make informed purchases based on their personal values and provides a platform for retailers to present customers with a unique shopping experience while enhancing the brand.
eSuade is a direct sales proposition. The company will sell to retailers, who will provide the link to consumers.
Because this is a direct sales model, it depends heavily on personal relationships with key business decision makers. The product also strengthens the retailers relationships with their own customers, providing a conduit for eSuade’s application to flow through.
There are 5 primary revenue streams for eSuade, all coming from retailers. Licensing for the application is about 50% of the total revenue over 5 years. Per user fees are calculated by traunches of 10,000 users. Maintenance, implementation and additional consulting services demonstrate the importance of the services aspect of the business.
Once we understood our revenue streams, we realized that we had two primary resources: money and people.
This led us to think about our major activites as an organization. Obviously product development is the most important, followed by sales and marketing, services, and support functions.
Understanding our key activities also helped us to map out our integrated roadmap. We expect to have a proof of concept completed early in year 1, based on the initial research and findings from this class. We’ll release a beta version at the end of year 1, with updates coming every year thereafter. Marketing campaigns surrounding these launches will provide momentum for customer acquisitions, beginning with an early alpha retail customer in year 1, 2 or 3 beta customers in year 2, and a fast sales ramp up thereafter. This is likely a 1-2 year sales cycle, so marketing and sales activities must begin in year 1 to support this fast growth. Extensive recruiting and fundraising activities will also be necessary to meet these milestones.
eSuade requires a variety of partnerships to be successful. Data is the biggest challenge, and we plan to partner with customers, standards providers, suppliers, and other organizations working in this area to gather the necessary data. Hardware providers like apple and HTC will also be critical partners, as will outsourced software development organizations, content providers, social media companies, and enterprise software vendors.
Since this is a software business, labor is our biggest expense, coming in at about 80% of expenses over 5 years. Other major expenses include outsourced development partners, travel, and conference attendance.
Based on the revenue streams and cost structure, eSuade will start bringing in revenue with the launch of its first version of the product during year 2. It becomes profitable in the middle of Year 4, and break even occurs about 2.5 years after the product launch. By the middle of year 5, there is a 3x return on investment. Sarah’s going to wrap up by telling us about next steps and learnings.
Bootstrap ~$10,000 Outsource development of a proof of concept Find an alpha retail partner Continue work on business model and financials
E suade business proposal
eSUADE PRODUCT DEVELOPMENT PRESENTED BY TEAM CODE GREEN
ORIGINAL eSUADE VISION IMPACT RATING Environment: Scores well on water management Health: Made with organic ingredients Society: High workforce diversity More Info Top Brands Instant Savings Healthy Foods, Inc
STAKEHOLDERS Influence on Product Sustainability Interest in Product Sustainability Consumers Retailers Government NGO’s N-tier Suppliers Manufacturers
CONSUMER PROFILE 53% Sometimes, usually or always use coupons 17% Sometimes or always use a loyalty reward card 72% A friend recommended it, or I tried it through a friend 27% The health benefits appealed to me 14% It’s environmentally friendly 14% I read about it online, or saw advertising 13% The packaging caught my eye 12% There was an in-store taste test 7% It was less expensive than what I normally buy 7% 80% 94% aged 25-54
CONCEPT RESPONSE Reasons for using the eSuade product… 83% are somewhat, very or extremely likely to use the eSuade product 60% are more likely to use mobile application I care about my health and choosing products that are safe for me and my family 31% I'm interested in sustainability 29% I want to influence companies with my purchase decisions 25% I don’t have time 10% I'm brand loyal and wouldn't change what I buy based on this information 2% I trust (current) product labels 2% Environmentally friendly products are too expensive 2%
FEATURE INTEREST Product comparisons : Compare products based on price, nutrition, environmental impact, the company's social responsibility efforts and other criteria eCoupons : Use electronic coupons to save money Nutrition tracker : Track calories, fat, carbohydrates, protein, vitamins and other nutrients as you shop Shopping list : Save your favorite products to your profile Vote : Send a message to manufacturers by registering your product and brand choices Allergy alerts : Protect you and your family from food intolerance and allergy issues Share : Share products, specials and reviews with friends through Facebook, Twitter and other social media
BUSINESS SEGMENTATION Focus on Consumer Focus on Sustainability
VALUE PROPOSITION <ul><li>CONSUMERS </li></ul><ul><li>RETAILERS </li></ul>WHOLESOME FOODS
Discover the whole deal on your favorite products and make more informed purchasing decisions. Search Clif Bar Home Sores Products Recipes Health & Nutrition Values Company Shop The Whole Deal LEARN MORE
eSuade rating A Filter Origin Criteria Your Ratings Filter Impact Criteria Compare Brands Filter Wellness Criteria Organic (15) Low in Saturated Fat (8) Low in Sugar Vegan Low in Cholesterol (0) Low in Sodium (0) ✔ ✔ Change your search Share results Get a price alert Your Toolbox Home Sores Products Recipes Health & Nutrition Values Company Shop A ESUADE RATING A ESUADE RATING ESUADE RATING Shop by Aisle Shop By History Online Savings Express List Business Delivery eSuade Ratings Get the iPhone App
eSuade rating eSuade Ratings eSuade Ratings 1 Home Sores Products Recipes Health & Nutrition Values Company Shop Filter Origin Criteria Your Ratings Filter Impact Criteria Compare Brands Filter Wellness Criteria Change your search Share results Get a price alert Your Toolbox Clif Bar, Oatmeal Raisin Walnut Any ONE (1) Clif Bar Buy Shop by Aisle Shop By History Online Savings Express List Business Delivery eSuade Ratings Get the iPhone App
eSuade rating eSuade Ratings eSuade Ratings Clif Bar Home Sores Products Recipes Health & Nutrition Values Company Shop Your Search History Your Saved Lists No saved lists Any ONE (1) Clif Bar Any ONE (1) 365 Organic Milk Filter Origin Criteria Your Ratings Filter Impact Criteria Compare Brands Filter Wellness Criteria Change your search Share results Get a price alert Your Toolbox Shop by Aisle Shop By History Online Savings Express List Business Delivery eSuade Ratings Get the iPhone App
eSuade Your Promotion Tracking eSuade Professional Services offers custom support for your needs Learn More App Download Totals (100’s) iPhone Android Category lift by promotion Category lift by promotion eSuade Corporate User Application kjames Help Report Bug Logout Home Branding Promos Tracking Reports Working as kjames eSuade Community Profile Wholesome Foods Statistics Bay Area Statistics Type Brand Conv. Ratio Rev Stores Nutrition Bars Clif Bar Promotion Luna Bar Promotion Personal Hygiene Produce Produce Produce
MOBILE APPLICATION Web Based Mobile Web Mock-up Functioning Prototype Sustainability Portal Shopping Application