Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Final with additions

312 views

Published on

  • Be the first to comment

  • Be the first to like this

Final with additions

  1. 1. BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA Brian B. Burgess Masters in Design Management Thesis Presentation IED Barcelona 16 December 2014
  2. 2. 1.  Inspiration 2.  Process 3.  Insights 4.  Concept 5.  Business Plan Contents BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
  3. 3. Inspiration BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
  4. 4. US Department of Health and Human Services. National Institute of Diabetes and Digestive and Kidney Diseases. Overweight and obesity statistics. Overweight is defined as a Body Mass Index (BMI) of 25 to 29.9. Obese is defined as a BMI of 30+, and extremely obese is a BMI of 40+ More than 1 in 3 adults are obese. 1/3 of 6-19 year olds are overweight or obese BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA More than 2 of every 3 Americans are overweight or obese.
  5. 5. high levels of   sugar, fat and salt   that come from highly processed foods ~Michael Pollan, Cooked BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
  6. 6. 27minutes Michael Pollan, Cooked http://www.marketingcharts.com/online/social-networking-eats-up-3-hours-per-day-for-the-average-american-user-26049/ 3.2hours BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
  7. 7. Process BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
  8. 8. BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA http://designthinking.co.nz/wp-content/uploads/2012/09/UCD-process.jpg 40+ Interviews Innovation Workshop Co-Creation Idea #1 and #2 30 Nov- 14 Dec
  9. 9. Insights BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
  10. 10. BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA “To cook is about time and research. It’s very strict. Like a science.”Pablo, interview Planning is a burden “I’m paralyzed by choice.”Sierra, interview “When I cook for others, I put in more effort” Claire, interview
  11. 11. Cookbooks & Magazines Recipe Websites Sites Blogs Meal Planning/ Delivery Conventional New Category Insight Apps BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
  12. 12. 27minutes Michael Pollan, Cooked http://www.marketingcharts.com/online/social-networking-eats-up-3-hours-per-day-for-the-average-american-user-26049/ 3.2hours BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
  13. 13. http://firstwefeast.com/eat/instagram-food-hashtag-taxonomy/ BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA #food on Instagram 77 million January 2nd, 2014   142 million December 16th, 2014  
  14. 14. Consumer Insight http://www.360i.com/reports/online-food-photo-sharing-trends/ BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA documen)ng  self-­‐     crea)on,  22%  
  15. 15. •  Address user barriers but go beyond to provide value •  Easy and approachable •  Leverage social aspect of food/cooking •  Be able to integrate into busy schedules •  Scalable and profitable Design Criteria BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
  16. 16. Concept BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
  17. 17. BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
  18. 18. BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA cou·∙plet-­‐  two  lines  of  poetry  that  form  a  unit  {   }   #cookingcouplets is a weekly recipe subscription that helps Instagram users cook with the next meal in mind and makes everyday dinners faster, easier and more social.
  19. 19. How it works. BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
  20. 20. How it works. BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
  21. 21. How it works: Menu #1 BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
  22. 22. How it works: Menu #2 BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
  23. 23. How it works BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
  24. 24. Customer Benefits BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA Saves me time shopping and cooking, cuts down on burden of planning. Waste less food and save money. Functional- Emotional- Makes me feel proud and accomplished with what I’ve made. Builds my confidence. Social- I get to show off and impress my friends, they’ll think I’m an awesome cook. I feel part of a group.
  25. 25. Prototype and Testing BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
  26. 26. 54signed up 43Images on Instagram BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA Results 20%Engagement
  27. 27. Results BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA “It was fun to see the different ways everyone interpreted the recipes and made them their own. It also helped us branch out from our staple meals and try something new. ~Katie “Really enjoyed the whole experience, and bummed I’ve gotta figure out all 7 meals this week without the #cc email to rely on” ~Darren
  28. 28. Business Plan BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
  29. 29. Executive Summary Market Environment - There are 142 million pictures on Instagram with the hashtag #food. - 22% of food photos are of documenting of self-creations - Blue Apron is delivering 1 million meals a month at price of $9.99 each. Business Idea Concept #cookingcouplets is a weekly recipe subscription that helps Instagram users cook with the next meal in mind and makes everyday dinners faster, easier and more social. Uniqueness of Business Opportunity #cookingcouplets is the only cooking solution that allows home cooks to optimize their time by consolidating the preparation and cooking for two meals at a time. It leverages Instagram for social support and recognition among other cooks and meets customers where they spent a significant portion of their day. BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
  30. 30. Executive Summary (cont’d) Key Strategies - Build initial subscription base of users and onboard them to the “couplet” technique - Use bloggers and food writers to increase message - Work with specific health related communities and real food advocacy groups - Partner with equipment and cooking essentials partners (olive oil, etc) Investment Required $17,000 will cover the start up costs of creating the initial menu bank, building the web platform, as well as marketing and operations for the first year. BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA Return on Investment Based on membership fees only (and not additional income from affiliates or sponsorship) and using membership projection of similar projects, this concept will be profitable in its second year, and have a full return on initial investment in the first quarter of year three.
  31. 31. Business  Model  Descrip)on   The Business Model Canvas Revenue Streams Channels Customer SegmentsValue PropositionsKey ActivitiesKey Partners Key Resources Cost Structure Customer Relationships Designed by: Date: Version:Designed for: designed by: Business Model Foundry AG The makers of Business Model Generation and Strategyzer This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit: http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive? is your business more Cost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing) Value Driven (focused on value creation, premium value proposition) sample characteristics Fixed Costs (salaries, rents, utilities) Variable costs Economies of scale Economies of scope Through which Channels do our Customer Segments want to be reached? How are we reaching them now? How are our Channels integrated? Which ones work best? Which ones are most cost-efficient? How are we integrating them with customer routines? channel phases 1. Awareness How do we raise awareness about our company’s products and services? 2. Evaluation How do we help customers evaluate our organization’s Value Proposition? 3. Purchase How do we allow customers to purchase specific products and services? 4. Delivery How do we deliver a Value Proposition to customers? 5. After sales How do we provide post-purchase customer support? For what value are our customers really willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues? For whom are we creating value? Who are our most important customers? Mass Market Niche Market Segmented Diversified Multi-sided Platform What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones have we established? How are they integrated with the rest of our business model? How costly are they? examples Personal assistance Dedicated Personal Assistance Self-Service Automated Services Communities Co-creation What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue streams? catergories Production Problem Solving Platform/Network What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams? types of resources Physical Intellectual (brand patents, copyrights, data) Human Financial Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquairing from partners? Which Key Activities do partners perform? motivations for partnerships Optimization and economy Reduction of risk and uncertainty Acquisition of particular resources and activities What value do we deliver to the customer? Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? characteristics Newness Performance Customization “Getting the Job Done” Design Brand/Status Price Cost Reduction Risk Reduction Accessibility Convenience/Usability types Asset sale Usage fee Subscription Fees Lending/Renting/Leasing Licensing Brokerage fees Advertising fixed pricing List Price Product feature dependent Customer segment dependent Volume dependent dynamic pricing Negotiation (bargaining) Yield Management Real-time-Market strategyzer.com -­‐ Help  home  cooks   make  good  food  more   o>en   -­‐   Save  )me  by   op)mizing  shopping,   prepara)on  and   cooking  of  weekly   meals   -­‐  Social  support,   encouragement  and   recogni)on  among   other  cooks   -­‐  Save  money  and   minimize  food  waste     -­‐ Heavy  social  media   users   -­‐ 25  -­‐  40  working   professional   -­‐   Singles/couples   -­‐  Families  with  young   children   -­‐ Email   -­‐Instagram   -­‐ Web   -­‐ Heavy  social  media   users   -­‐ 25  -­‐  40  working   professional   -­‐   Singles/couples   -­‐ Subscrip)on   -­‐ Partnership/  Sponsorship   -­‐ Equipment/  Cookbooks   -­‐ Weekly  menu  crea)on  and  produc)on   -­‐ Web  and  mail  services   Business Model Canvas -­‐   Menu  produc)on   -­‐   Media  for  menus   -­‐   Web  content  and   server  management   -­‐   Addi)onal  cooking   resources   -­‐   Food  bloggers   -­‐   Health  and  real  food   advocacy  groups   -­‐   Cooking  knowledge   -­‐   Experts  (Nutri)onist,   IT,  legal  etc.  .)     BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
  32. 32. Category Insight Marketing Plan Product Price Place Promotion - Weekly menu subscription - Access to all previous weeks - Change and recalculate shopping lists and menus based on servings. - Annual subscription @ $5/ month - 6-month subscription @ $6/month - 3-month subscription @ $7/month - Free 1 month trial - Direct web sales - Email/web distribution - Instagram (primary) - Facebook, Twitter - Google Ad words Target User Heavy social media users (specifically Instagram) between the age of 25-40. BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
  33. 33. Case Study: Blue Apron - Founded 2012 - 1 million meals per month @ $10 - 20+ sponsored items for purchase BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
  34. 34. - Unlimited number of recipes available - Provides menu for every meal throughout the week - Provides weekly meal plan and shopping list - Change meals if you don’t like them, make them vegetarian, paleo etc. -Provides all the food and recipes for the week so people can focus on the fun part of cooking. - Optimizes time to make two meals at a time - Social support and recognition among other cooks - Too many choices - Difficult to gauge quality of recipe - Lots of advertisements - Paleo specific - Lots of repetition - Lack of social benefit -Expensive -Food can go to waste if plans change - Lots of packaging waste - Takes time to explain/ understand - Potential for copying NA 4 meals a day / 7 days a week 4 meals per week 3 meals per week 2 meals per week with option to add more couplets $1.50/ month annual subscription $7.40/ month annual subscription $6/ month annual subscription $9.99 per person/per meal $5/ month annual subscription +   -   $ #   Market & Competition BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
  35. 35. 19k  followers   13  followers     (not  a  typo)   4.5k  followers   120k  followers   #allrecipes:  8.3k   #myallrecipes:3.4k     #paleoplan:  1.4k   #cooksmarts:  703   #kitchenhero:  1004   #blueapron:  39k   Market & Competition- Instagram Use BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
  36. 36. Financials Profit & Loss 2015 2016 2017 2018 Unit/Volume of service 2,500 7,000 15,000 20,000 Price 5 5 5 5 Total Revenues 12,500 35,000 75,000 100,000 Cost of Sales 8,616 11,132 12,032 12,032 Gross Margin 3,884 23,868 62,968 87,968 Gross Percentage 0.31 0.68 0.84 0.88 Research and Development 0 0 0 0 Selling 0 0 0 0 General Management & Admin 5,250 5,250 10,500 10,500 Marketing 5000 6000 7000 9000 Operating Income (EBITDA) -6,366 12,618 45,468 68,468 Taxes 0 3785.4 13640.4 20540.4 Net income/Net Profit -6,366 8,833 31,828 47,928 Net income/Net Profit % 25.24% 42.44% 47.93% BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
  37. 37. Category Insight Start Up Plan Task Sub Task Month 1 2 3 4 5 6 7 8 Trademark Name Hire Branding/Design firm Branding Design Hire web developer Web Site Design Integrate mail service Integrate pay service Web Site Beta test Final web tweaks Contract Kitchen workshop Hire nutritionist Hire photographer Build recipe bank Begin marketing Court food bloggers Google ad works Facebook ads Site launch BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
  38. 38. Category Insight BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA Questions?

×