Lecture 8 - Technology, Innovation and Great Power Competition - Cyber
C2 c finalpresentation
1. Kavya Desai Devon Chen Emmiliese von Clemm
Princeton University, Lean LaunchPad December 12, 2012
2. Initial Idea: DIY Cookie Cafe
• Baking as bonding and entertainment for
family and friends
• Assumptions- People appreciate:
• Dessert, more specifically cookies
• No mess/cleanup
• Customization
• Warm, freshly baked cookies
provide a sense of love
• Cupcakes recently experienced
a boom in popularity; could
cookies be next?
4. Feedback: Customer Interviews
• Tested various value
propositions through
conversations and surveys:
• Baking as an activity: families
with children are somewhat
interested, but low among
other groups
• Hassle free, no mess: not as
highly valued as expected; many
consider the trip to be a hassle
• Customization: Customers got
really excited about
customization!
5. Trip to NYC
• Explored dessert scene in NYC and learned about their business models
• Learned about cupcake trend
• Branding, individual portions, atmosphere, focus
• Georgetown Cupcakes, Baked by Melissa, Levain Bakery, Insomnia
Cookies, Rice to Riches, Molly’s Cupcakes, Babycakes
8. Key Interview: Loren Brill
• Founder of Sweet Loren’s
• Product: All-natural, frozen,
ready-to-bake cookie dough and
brownie batter that contains the
finest unrefined ingredients
• Target Audience: Upscale grocery
store customers
• Insights:
• Her customer discovery process
and pivots
• Co-packers
• Simplicity of break and bake
dough
• A need for packaging that jumps
off a shelf
9. MVP: Website
• Testing: Web Channel
• Allowed for online ordering
• Results:
• Limited programming
experience/time prevented
us from having a more
trustworthy looking site
• Had trouble getting people
to pre-order cookies for our
Demo Event
• Moving forward, a more
interactive online ordering
process is key
10. MVP: Demo Day
• Testing: Physical Channel
• TapRoom Café, Campus Club
• 8 hours long
• 130 cookies sold
• $145 in profits
• Price: $2.50 per cookie
• Positive feedback on
customizability, deliciousness of
cookies
• Negative feedback on wait-time
• Complicated operations
11. Key Interview: Modern Cookie Co.
• Failed customizable cookie
business in northern
California
• Insights:
• Conveyer belt oven
• Minimizing wait time is
critical
• High foot-traffic location is
necessary
• Barriers to marketing
cookies as “healthy”
• Need for consistency in
product offered
12. AB Testing
• Tested different value props through 4 campaigns
• Facebook Ads
• Google AdWords
• Splash pages
• Indicates out customer acquisition costs will be high
• Low click through rate for all
• High cost per click
• Very few sign ups
• 251 page visits to 4 pages between Google & FB Ads
• Caveats:
• Customizable cookies are a new concept
• Very low word count: other methods may be more effective
13. AB Testing: Advertising
Campaig 1 2 3 4
n
Company Cookies to Cookies Cookies to The Cookie
Name Crumbs to Crumbs Laboratory
Crumbs (Crowdsourced)
Order 2 Dozen ½ Dozen 1 Cookie 1 Cookie
Size Min
CTR .25% .22% .28% .26%
CPC $.52 $.42 $.41 $.52
Campaign 1 2 3 4
Advertising Holiday Convenienc Customizability The Cookie
Angle e Laboratory
CTR .0063% .0043% .0049% .0073%
CPC $.81 $1.27 $1.01 $.79
14. Cost Analysis: Summary
• Prices:
• Retail: $3/single cookie, $16/half-dozen, $30/dozen, $1.50/milk
• Web-based: $30/dozen (+$5 shipping), $50/2dozen (+$8
shipping)
• Breakevens: Year 1 / Future Years
CHANNEL SINGLE ½ DOZENS DOZENS GLASSES DOZENS 2DOZENS
COOKIES OF MILK (WEB) (WEB)
Retail Only 100 / 95 12 / 10 6/5 50 / 48 - -
Web Only - - - - 25 / 16 8/2
Web - - - - 16 / 12 8/6
w/Partner
Retail& Web 85 / 77 9/7 4/3 44 / 36 16 / 11 6/4
15. Cost Analysis: Highlights
• Human Labor:
• Web Developer ($10,000 retail vs $50,000 web)
• Employees ($85,000)
• Insurance ($7,200)
• Major fixed costs:
• Utilities ($7,800 retail vs $10,000 web vs $16,000 both)
• Commercial ovens ($2,000 retail vs $10,000 web)
• Freezers & Fridges ($3400 retail vs $5,200 web)
• Variable Costs:
• $0.98 per cookie (retail), $0.33 per glass milk, $1.30-$1.58 per
cookie (web)
16. Customer Flow
Customer
Places Order
Online
Customer
Orders in Key Activities
Person
Receive &
Organize Order
Mix Dough
with Mix-Ins
Shipping Bake
Cool and Notify Customer
Package for pick-up
Delivery
Service
17. Revenue Flow
Overheads (Utilities,
Rent, Salaries, etc.) Pay for Ingredients
Pay for
Suppliers of Mix-
Doughs
Co-packer Ins, Beverages,
Pay for
Pay for Shippin
Serves g Shipping Company
Cookies
Cookies
Delivery Service
Customers
Pay for Delivery (i.e. Seamless)
19. Is this a Business?
• Great potential: Overall concept,
customer interest, value
propositions, and partner
possibilities
• Considerable hurdles: High start-
up and fixed costs, wait-time in
retail channel, driving web traffic
• YES, this is a business. Roll-out
needs to be strategic though.
20. Is this a Business?
• Start web-based with a baking facility partner
• Cut major costs of rent and equipment
• Focus on developing a marketing campaign, branding, and a great
site for sales
• Move into a retail location that doubles as a processing facility
• Split time between operating physical channel and web channel out
of the same location
• Use pre-existing website to facilitate sales
• Both channels can grow off each other in terms of building brand
• Depending on performance, invest more in web, retail, or both.
• If web channel is overflowing with orders, invest in processing
facilities and hire more employees to fulfill orders
• If retail location is building popularity, consider franchising into
similar locations, malls, etc
21. Moving Forward: Next Steps
Immediate:
• Establish critical partnerships
• Baking facility to use in part-time for web channel
• Co-Packer
• Build a fully functional, aesthetically pleasing website
• Online ordering capabilities
Next Steps:
• Explore different levels
of customizability-
crowd-sourced “cookie
of the month” flavors
• Build a mobile app
Editor's Notes
Devon
KavyaDon’t talk about pivot yetMore about what we learned from customers Emphasize that customization thing was really cool
