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BUSINESS MODEL
                           PROJECT



20th April 2011   A - Team - Hult
2

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                1                                                                                  6
                                                                                         5
                                                     3

1. Manuel del Aguila - SEO                                   4.. Martha Tolosa - Email Marketing
2. Daniel Aufricht - Strategy and Planning Integration       5. Megan Lowe - Social Media
3. Nataliya Mogilevskaya - Mobile                            6. Pratanchai Permpanich - Display
Brief Overview




20th April 2011      A - Team - Hult
20th April 2011   A - Team - Hult
Whole Foods
         “We seek out the finest natural and
        organic foods available, maintain the
           strictest quality standards in the
         industry, and have an unshakeable
      commitment to sustainable agriculture.”

 Founded in 1980 in Austin, Texas.
 Growth throughout the 1990’s.
 Acquired more natural and organic food companies.


20th April 2011        A - Team - Hult
Values:
   • High quality natural and organic products
   • Delighting customers
   • Supporting employee happiness and excellence
   • Creating wealth through profits and growth
   • Taking care of community and environment
   • Create mutually beneficial partnerships with
     suppliers
   • Promoting health of stakeholders through healthy
     eating education

Consistently ranked among the most socially responsible
businesses.

20th April 2011        A - Team - Hult
Current
                  Business Model




20th April 2011       A - Team - Hult
Offline                     Online

       SHOPS                    WEB SITE



                  Full-version             Mobile




20th April 2011      A - Team - Hult
20th April 2011   A - Team - Hult
Content

 Gift Cards                          Cooking Classes
 Coupons                                     Stores
 Deals
                  Location


 Recipes                                 Comments
 Information products                   Registration
                                     List of products
20th April 2011    A - Team - Hult
Shopping list


                  Products                     Recipes




20th April 2011              A - Team - Hult
Framework




20th April 2011     A - Team - Hult
What products or services do
       you usually purchase online?
                   Econsultancy Survey (2010)



74% of the respondents usually buy these products online:




 20th April 2011          A - Team - Hult
•       These statistics show an increase in this trend,
         which supports the potential of the business model

 •       People trust this kind of service and embrace the
         online shopping system

 •       People would sometimes rather pay more for a
         service in order to save time




20th April 2011             A - Team - Hult
Why do people shop online?
Nielsen Online survey of 1000 people shows that people
shop online because of the following reasons:




20th April 2011        A - Team - Hult
•   Tight schedule
  •   Stressed out                         The Big City
  •   Time is essential
  •   Traveling is expensive




20th April 2011          A - Team - Hult
London Market
                   Organic &            Online           Online         Likelihood        Market
                   Natural?            grocery          personal         of online       Share (incl.
                                      shopping?        shopping?        shopping?          offline)

                                       Not yet, but     Not yet, but    Likely to take      1-2%
                                      soon with our    soon with our     share from
                                         model            model         below stores


                   Branded range                            "               4%              4.4%
                  as well as other
                  organic / natural
                      brands

                  Small branded                             "              14%             16.5%
                     range



                  Small branded                        To an extent,       66%             30.3%
                   range, adding                      not with advice
                  non-food range                       and guidance
                       soon


20th April 2011                              A - Team - Hult
Organic food is no longer just a niche
“The niche is gone. Organic has gone mainstream.”
New opportunity in “special diets”, including those
related to food allergies.

“Food allergies in children have risen 18% since 1997,
affecting 3 million children today. Nearly 4% of adults, or
12 million people, have food allergies. Another 3 million
people can't consume gluten (ceilac disease). In this niche
you could include aging baby-boomers who focus on
low-sodium, low-fat, dairy-free diets or people who
adopt alternative diets like veganism.”
Sources: http://mattpaxson.blogspot.com/2008/11/heath-foods.html

20th April 2011                                   A - Team - Hult
What customers want
 - Speed
 - Convenience
 - Healthy Alternative
 - Quality over quantity
 - Something trustworthy
 - Value for price



20th April 2011    A - Team - Hult
Consumers’ behaviour
                          Fraser McKevitt, retail analyst:

 “With economic uncertainty increasingly in the news
 it is no surprise that shoppers are being cautious with
                      their spending”




 Sources: http://foodanddrinkbusiness.com/?p=3803




20th April 2011                                 A - Team - Hult
The Digital Model




             Needs                             Desires
              Quick                           Quality > Quantity
         Convenience                          Trustworthy
             Healthy                          Best value
          Affordable

                           Customer

20th April 2011             A - Team - Hult
Potential Digital Models




20th April 2011        A - Team - Hult
Twelpforce:
  Customer Service on Twitter




20th April 2011    A - Team - Hult
Trip Advisor:
  Rating of Hotels




20th April 2011      A - Team - Hult
New Digital
                  Business Model




20th April 2011       A - Team - Hult
Shopping online is not a novelty.

   There is a need in the market that has not
   been met.

   When people buy goods online, there are often
   doubts about the quality of products like fresh
   goods.



20th April 2011          A - Team - Hult
Insight:

 “It is difficult to buy fruits or vegetables online,
 I do not know if the goods to be delivered are
 going to be exactly as I expect them”.




20th April 2011        A - Team - Hult
Wholefoods is going to enter the market online
       with an innovative advantage




20th April 2011    A - Team - Hult
The Personal Shopper

    It is a virtual figure that is going to help customers
    to pick special goods that need to be chosen by an
    expert.

    There are several options of experts. Customers are
      able to see their profiles and choose one of them,
      based on their needs.




20th April 2011            A - Team - Hult
Lucy. Expert in fruits.
                               If you fancy the most
                               exotic fruit salads in
                               the world, you need
                               Lucy.
                               If you don’t know how
                               to pick a pineapple, or
                               a juicy melon, don’t
                               worry, that is her job.




20th April 2011   A - Team - Hult
20th April 2011   A - Team - Hult
Laura. Expert in
                               vegetables. She picks
                               fresh products for you.

                               Tell her if you need
                               your avocado ripe,
                               to be eaten on 3 days
                               or however you need it.
                               Hear suggestions for
                               this season and try
                               new salads.

20th April 2011   A - Team - Hult
20th April 2011   A - Team - Hult
Sam. Expert on BBQ’s.
                                Sam used to have
                                BBQ all the time back
                                at home in Australia.

                                Tell him what kind of
                                party you are
                                imagining and for how
                                many people and he
                                will sort it out.


20th April 2011   A - Team - Hult
20th April 2011   A - Team - Hult
David. Expert on
                              packed lunches.
                              Did you run out of the
                              choices to surprise
                              your kids at school?

                              Talk to David and let
                              your children the chance
                              to try new healthy
                              flavours and fun choices
                              from an expert.


20th April 2011   A - Team - Hult
20th April 2011   A - Team - Hult
Implementation
             1. Collect offline data (loyalty
                cards)
      1.    Collect offline data (loyalty cards)
             2. Create programm for
      2.    Create programm for recommendations
                recommendations
      3.    Build infrastructure andand hire
             3. Build infrastructure   hire employees
      4.    Testing
                employees
      5.    Advertising
             4. Testing
      6.    Bring customers online and launch the
             5. Advertising
            service customers online and
             6. Bring
                launch the service
20th April 2011           A - Team - Hult
-Customers can see shopper’s profiles
                     -Pick their favourite
www.                 -Rate them
                                                                    -Recipes for every season
                                                                    -Low calories, get fit
                                                                    -Special occasions
                     -Send messages, preferences
                     -Shopping lists can be rated
                     and edited, can be improved -diet-
                     -Track purchases of the customers
                     -Suggestions, posible combinations,
                     Cross selling.

                                                                        ”Like” the page
                              Interaction                                on Facebook

Loyalty card to track
offline performance

                         -Personalised info                  Follow your personal shopper
                         according to preferences            for recipes
                         - Friend to friend sharing
                         -Offers to promote loyalty

   20th April 2011                       A - Team - Hult
Model’s Dynamic
              Deliver Goods and
                                                Other
              awaiting feedback:              customers’
              if negative, an incentive       suggestions
              will be offered.
                                                                          Selection of
                                                                          products for
                                                                          the customer




                                                                            Product
    Customer

                       Feedback


              Information gathered,
              based onthe customer’s
              previous shopping
              activities, behavior, and                     Gather information
              feedback.
                                                 Database
                                                            Optimize recommendations,
20th April 2011                           A - Team - Hult
                                                            channels, according to database
After the first phase, more products can be offered:
Candies, Liquors, Deli, Dry Goods…


20th April 2011          A - Team - Hult
Goals
  • Establish a closer relationship with the customer
  • To become a full service online supermarket
  • Turning online shopping into a personal
    experience: customers and experts can be friends
  • Added value by experts: recipes,
    recommendations, health advice, cross selling
  • Earning customers through personalized channels




20th April 2011         A - Team - Hult
ULTIMATELY


            Competitive advantage




20th April 2011      A - Team - Hult
Recommendations




20th April 2011        A - Team - Hult
• Establish basic online shopping capabilities to start with
• Implement personal shopping as a value-added option
• Introduce a loyalty program to track customers’
  purchases, lists, behavior, feedback
• Testing before launching online
• Adapting characters after feedback and depending on
  seasons
• Hiring analytics experts to interpret the data
• Monitoring the social networks
• Starting in London with a possible roll-out to NY and
  LA


20th April 2011          A - Team - Hult
Thanks!
                                    Any questions?




20th April 2011   A - Team - Hult

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Wholefoods - Business Model Project

  • 1. BUSINESS MODEL PROJECT 20th April 2011 A - Team - Hult
  • 2. 2 4 1 6 5 3 1. Manuel del Aguila - SEO 4.. Martha Tolosa - Email Marketing 2. Daniel Aufricht - Strategy and Planning Integration 5. Megan Lowe - Social Media 3. Nataliya Mogilevskaya - Mobile 6. Pratanchai Permpanich - Display
  • 3. Brief Overview 20th April 2011 A - Team - Hult
  • 4. 20th April 2011 A - Team - Hult
  • 5. Whole Foods “We seek out the finest natural and organic foods available, maintain the strictest quality standards in the industry, and have an unshakeable commitment to sustainable agriculture.” Founded in 1980 in Austin, Texas. Growth throughout the 1990’s. Acquired more natural and organic food companies. 20th April 2011 A - Team - Hult
  • 6. Values: • High quality natural and organic products • Delighting customers • Supporting employee happiness and excellence • Creating wealth through profits and growth • Taking care of community and environment • Create mutually beneficial partnerships with suppliers • Promoting health of stakeholders through healthy eating education Consistently ranked among the most socially responsible businesses. 20th April 2011 A - Team - Hult
  • 7. Current Business Model 20th April 2011 A - Team - Hult
  • 8. Offline Online SHOPS WEB SITE Full-version Mobile 20th April 2011 A - Team - Hult
  • 9. 20th April 2011 A - Team - Hult
  • 10. Content Gift Cards Cooking Classes Coupons Stores Deals Location Recipes Comments Information products Registration List of products 20th April 2011 A - Team - Hult
  • 11. Shopping list Products Recipes 20th April 2011 A - Team - Hult
  • 12. Framework 20th April 2011 A - Team - Hult
  • 13. What products or services do you usually purchase online? Econsultancy Survey (2010) 74% of the respondents usually buy these products online: 20th April 2011 A - Team - Hult
  • 14. These statistics show an increase in this trend, which supports the potential of the business model • People trust this kind of service and embrace the online shopping system • People would sometimes rather pay more for a service in order to save time 20th April 2011 A - Team - Hult
  • 15. Why do people shop online? Nielsen Online survey of 1000 people shows that people shop online because of the following reasons: 20th April 2011 A - Team - Hult
  • 16. Tight schedule • Stressed out The Big City • Time is essential • Traveling is expensive 20th April 2011 A - Team - Hult
  • 17. London Market Organic & Online Online Likelihood Market Natural? grocery personal of online Share (incl. shopping? shopping? shopping? offline) Not yet, but Not yet, but Likely to take 1-2% soon with our soon with our share from model model below stores Branded range " 4% 4.4% as well as other organic / natural brands Small branded " 14% 16.5% range Small branded To an extent, 66% 30.3% range, adding not with advice non-food range and guidance soon 20th April 2011 A - Team - Hult
  • 18. Organic food is no longer just a niche “The niche is gone. Organic has gone mainstream.” New opportunity in “special diets”, including those related to food allergies. “Food allergies in children have risen 18% since 1997, affecting 3 million children today. Nearly 4% of adults, or 12 million people, have food allergies. Another 3 million people can't consume gluten (ceilac disease). In this niche you could include aging baby-boomers who focus on low-sodium, low-fat, dairy-free diets or people who adopt alternative diets like veganism.” Sources: http://mattpaxson.blogspot.com/2008/11/heath-foods.html 20th April 2011 A - Team - Hult
  • 19. What customers want - Speed - Convenience - Healthy Alternative - Quality over quantity - Something trustworthy - Value for price 20th April 2011 A - Team - Hult
  • 20. Consumers’ behaviour Fraser McKevitt, retail analyst: “With economic uncertainty increasingly in the news it is no surprise that shoppers are being cautious with their spending” Sources: http://foodanddrinkbusiness.com/?p=3803 20th April 2011 A - Team - Hult
  • 21. The Digital Model Needs Desires Quick Quality > Quantity Convenience Trustworthy Healthy Best value Affordable Customer 20th April 2011 A - Team - Hult
  • 22. Potential Digital Models 20th April 2011 A - Team - Hult
  • 23. Twelpforce: Customer Service on Twitter 20th April 2011 A - Team - Hult
  • 24. Trip Advisor: Rating of Hotels 20th April 2011 A - Team - Hult
  • 25. New Digital Business Model 20th April 2011 A - Team - Hult
  • 26. Shopping online is not a novelty. There is a need in the market that has not been met. When people buy goods online, there are often doubts about the quality of products like fresh goods. 20th April 2011 A - Team - Hult
  • 27. Insight: “It is difficult to buy fruits or vegetables online, I do not know if the goods to be delivered are going to be exactly as I expect them”. 20th April 2011 A - Team - Hult
  • 28. Wholefoods is going to enter the market online with an innovative advantage 20th April 2011 A - Team - Hult
  • 29. The Personal Shopper It is a virtual figure that is going to help customers to pick special goods that need to be chosen by an expert. There are several options of experts. Customers are able to see their profiles and choose one of them, based on their needs. 20th April 2011 A - Team - Hult
  • 30. Lucy. Expert in fruits. If you fancy the most exotic fruit salads in the world, you need Lucy. If you don’t know how to pick a pineapple, or a juicy melon, don’t worry, that is her job. 20th April 2011 A - Team - Hult
  • 31. 20th April 2011 A - Team - Hult
  • 32. Laura. Expert in vegetables. She picks fresh products for you. Tell her if you need your avocado ripe, to be eaten on 3 days or however you need it. Hear suggestions for this season and try new salads. 20th April 2011 A - Team - Hult
  • 33. 20th April 2011 A - Team - Hult
  • 34. Sam. Expert on BBQ’s. Sam used to have BBQ all the time back at home in Australia. Tell him what kind of party you are imagining and for how many people and he will sort it out. 20th April 2011 A - Team - Hult
  • 35. 20th April 2011 A - Team - Hult
  • 36. David. Expert on packed lunches. Did you run out of the choices to surprise your kids at school? Talk to David and let your children the chance to try new healthy flavours and fun choices from an expert. 20th April 2011 A - Team - Hult
  • 37. 20th April 2011 A - Team - Hult
  • 38. Implementation 1. Collect offline data (loyalty cards) 1. Collect offline data (loyalty cards) 2. Create programm for 2. Create programm for recommendations recommendations 3. Build infrastructure andand hire 3. Build infrastructure hire employees 4. Testing employees 5. Advertising 4. Testing 6. Bring customers online and launch the 5. Advertising service customers online and 6. Bring launch the service 20th April 2011 A - Team - Hult
  • 39. -Customers can see shopper’s profiles -Pick their favourite www. -Rate them -Recipes for every season -Low calories, get fit -Special occasions -Send messages, preferences -Shopping lists can be rated and edited, can be improved -diet- -Track purchases of the customers -Suggestions, posible combinations, Cross selling. ”Like” the page Interaction on Facebook Loyalty card to track offline performance -Personalised info Follow your personal shopper according to preferences for recipes - Friend to friend sharing -Offers to promote loyalty 20th April 2011 A - Team - Hult
  • 40. Model’s Dynamic Deliver Goods and Other awaiting feedback: customers’ if negative, an incentive suggestions will be offered. Selection of products for the customer Product Customer Feedback Information gathered, based onthe customer’s previous shopping activities, behavior, and Gather information feedback. Database Optimize recommendations, 20th April 2011 A - Team - Hult channels, according to database
  • 41. After the first phase, more products can be offered: Candies, Liquors, Deli, Dry Goods… 20th April 2011 A - Team - Hult
  • 42. Goals • Establish a closer relationship with the customer • To become a full service online supermarket • Turning online shopping into a personal experience: customers and experts can be friends • Added value by experts: recipes, recommendations, health advice, cross selling • Earning customers through personalized channels 20th April 2011 A - Team - Hult
  • 43. ULTIMATELY Competitive advantage 20th April 2011 A - Team - Hult
  • 45. • Establish basic online shopping capabilities to start with • Implement personal shopping as a value-added option • Introduce a loyalty program to track customers’ purchases, lists, behavior, feedback • Testing before launching online • Adapting characters after feedback and depending on seasons • Hiring analytics experts to interpret the data • Monitoring the social networks • Starting in London with a possible roll-out to NY and LA 20th April 2011 A - Team - Hult
  • 46. Thanks! Any questions? 20th April 2011 A - Team - Hult