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.

Krave Jerky lessons learned

79,450 views

Published on

Published in: Education

Krave Jerky lessons learned

  1. Advanced Entrepreneurship – Lean LaunchPad 2011
  2. THE TEAM  PhD Engineering  Technology Specialist  Previous Entrepreneur  Alternative Prospect  Food & Beverage Domain Experience  Previous Entrepreneur  Manufacturing Experience  CPG Marketing Background Jon Sebastiani Kamil Agi
  3. An On Trend Snack A Category Disruptor Brand  Premium Quality  All-Natural  50%+ Less Salt/Fat  Foodie Flavors  Softer/Moist Texture Contemporary Branding Better Margins ( J E R K Y 2 . 0 ) TEAM KRAVE
  4. MARKET SIZE  Giant Markets > Meat: $160B / Snacks: $70B > Meat Snacks: $4B  Varying Growth Rates > Meat: + 5% > Snacks: + 15% > Jerky: + 5%  Mega Consumer Trends Converging > Healthy, More Flavorful, Higher Quality  Snacks Driven by Innovation / News  Meat Snacks / Jerky Generally Sleepy > Limited Innovation > “Gut Stuffer” Image  Change Underway Driven by New Entrants > All-Natural > 10% Growth Latest 52 Weeks Nielsen F/D/M 2009 US Snack Food Americans Love to Eat Meat and Snack Retail Sales Source: US Package Facts Sweet $35B Salty $30B Meat $4B
  5. Key Partners -Transactions: Paypal, Visa, Mastercard -Channel to Consumer: HSN, Safeway, Flash sale sites (Woot, Joss & Main, Fab) -Public Relations Firm - Glodow Nead Key Activities -New distribution channels -In-store demos -Formal customer support service Value Prop -Unique package -Quality of meat -Health benefits of jerky -Snack taste Cust. Relations -Branding -Customer education -In-store demo -Frequent buyer program Cust. Segments - Athletes - Gourmet food enthusiasts - Purposeful eaters - Vegetarian Jerky - Female segment Key Resources - Jon Sebastiani - Direct to store delivery - National distribution Channels -Direct to consumer – web -Vending machines -Specialty stores (Cost Plus) -Supermarkets -Krave Jerky Stores KRAVE CANVAS SUMMARY WEEK 1 Cost Structure -Slotting Fees -Temporary price reduction, Scan based discount -In-store demo -$19m target market Revenue Stream -$5.95
  6. Key Partners -Transactions: Paypal, Visa, Mastercard -Channel to Consumer: HSN, Safeway, Flash sale sites (Woot, Joss & Main, Fab) -Public Relations Firm - Glodow Nead Key Activities -New distribution channels -In-store demos -Formal customer support service Value Prop -Unique package -Quality of meat -Health benefits of jerky -Snack taste Cust. Relations -Branding -Customer education -In-store demo -Frequent buyer program Cust. Segments - Athletes - Gourmet food enthusiasts - Purposeful eaters - Vegetarian Jerky - Female segment Key Resources - Jon Sebastiani - Direct to store delivery - National distribution Channels -Direct to consumer – web -Vending machines -Specialty stores (Cost Plus) -Supermarkets (✔) -Krave Jerky Stores KRAVE CANVAS SUMMARY WEEK 2 Cost Structure -Slotting Fees -Temporary price reduction, Scan based discount -In-store demo -$19m target market Revenue Stream -$5.95
  7. Key Partners -Transactions: Paypal, Visa, Mastercard -Channel to Consumer: HSN, Safeway, Flash sale sites (Woot, Joss & Main, Fab) -Public Relations Firm - Glodow Nead Key Activities -New distribution channels -In-store demos -Formal customer support service Value Prop -Unique package -Quality of meat -Health benefits of jerky -Snack taste Cust. Relations -Branding -Customer education -In-store demo -Frequent buyer program Cust. Segments - Athletes - Gourmet food enthusiasts - Purposeful eaters - Vegetarian Jerky - Female segment (✔) Key Resources - Jon Sebastiani - Direct to store delivery - National distribution Channels -Direct to consumer – web -Vending machines -Specialty stores (Cost Plus) -Supermarkets (✔) -Krave Jerky Stores KRAVE CANVAS SUMMARY WEEK 3 Cost Structure -Slotting Fees -Temporary price reduction, Scan based discount -In-store demo -$19m target market Revenue Stream -$5.95
  8. Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Click to edit Master title styleCHANNEL STRATEGY
  9. Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Click to edit Master title styleAND NOT THE ART OF MARKET RE-SEGMENTATION
  10. Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Click to edit Master title styleWhat’s Next? DEN Kiosk OAK Kiosk Ferry Building Retail Concept
  11. Key Partners -Transactions: Paypal, Visa, Mastercard -Channel to Consumer: HSN, Safeway, Flash sale sites (Woot, Joss & Main, Fab) -Public Relations Firm - Glodow Nead Key Activities -New distribution channels -In-store demos -Formal customer support Service - Social media leverage Value Prop -Unique package -Quality of meat -Health benefits of jerky -Snack taste (✔) Cust. Relations -Branding -Customer education -In-store demo -Frequent buyer program Cust. Segments - Athletes (✔) - Gourmet food enthusiasts - Purposeful eaters (✔) - Vegetarian Jerky - Female segment (✔) Key Resources - Jon Sebastiani - Direct to store delivery - National distribution Channels -Direct to consumer – web -Vending machines -Specialty stores (Cost Plus) -Supermarkets (✔) -Krave Jerky Stores -Kiosks KRAVE CANVAS SUMMARY WEEK 4 Cost Structure -Slotting Fees -Temporary price reduction, Scan based discount -In-store demo -$19m target market Revenue Stream -$5.95
  12. Key Partners -Transactions: Paypal, Visa, Mastercard -Channel to Consumer: HSN, Safeway, Flash sale sites (Woot, Joss & Main, Fab) (✔) -Public Relations Firm - Glodow Nead Key Activities -New distribution channels -In-store demos -Formal customer support service Value Prop -Unique package -Quality of meat -Health benefits of jerky -Snack taste (✔) Cust. Relations -Branding -Customer education -In-store demo -Frequent buyer program Cust. Segments - Athletes (✔) - Gourmet food enthusiasts - Purposeful eaters (✔) - Vegetarian Jerky - Female segment (✔) Key Resources - Jon Sebastiani - Direct to store delivery - National distribution Channels -Direct to consumer – web -Vending machines -Specialty stores (Cost Plus) -Supermarkets (✔) -Krave Jerky Stores -Airport kiosks -South Beach diet -Jerky store in Vegas KRAVE CANVAS SUMMARY WEEK 5 Cost Structure -Slotting Fees -Temporary price reduction, Scan based discount -In-store demo -$19m target market Revenue Stream -$5.95
  13. Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Click to edit Master title styleWhat we did, cont. Who is our KRAVE Customer? 1. Jon and team tasted and surveyed 50 people.
  14. Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Click to edit Master title style Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Click to edit Master title style The Results Who is our Customer
  15. Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Click to edit Master title styleThe Results
  16. Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Click to edit Master title styleValidation of Value Proposition Does the customer agree with our Value Proposition? Krave surveyed 100 jerky buyers who have tasted Krave Jerky to test our value proposition hypothesis.
  17. Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Click to edit Master title style Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Click to edit Master title styleWhat about our Value Proposition?
  18. Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Click to edit Master title style Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Click to edit Master title styleKey Learning's & Takeaways 1. Most people surveyed are not regular jerky eaters – yet after tasting Krave will consider becoming regular users. Therefore figuring out how to get the product into the mouths of new customers is KEY. 2. Some/most people believe jerky is healthy - doesn't seem to be a hot button. 3. Nutritional ingredients a key differentiator. 3. Taste and texture seem to be a driver of quality perception and consumption. 4. Flavor is the main driver. 5. Focus channel roll-out to support these customer drivers.
  19. WHY A DISRUPTION The Opportunity + Market Conditions  Limited Market Segmentation  Lethargic Competitors  Favorable Consumer + Trade Dynamics  Entrepreneurial Entrant with New Approach and Fewer Constraints  Clear / Meaningful Differentiation vs. Mainstream Competitors The Examples Industry Airlines Virgin America Ice Cream Ben & Jerry’s Beer Samuel Adams Potato Chips Kettle / Terra Chips Coffee Starbucks Chocolate Scharffenberger Water Vitamin Water Cereal Kashi / Bear Naked Energy Bar Cliff Bar Meat Snacks / Jerky KRAVE Convention Buster Brand
  20. Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Click to edit Master title style • Traditional – Conventional: Large Meat Packers – Top 4 Brands = 85% Market Share – Manufacturing vs. Marketing Orientation • Jerky As A Waste Reducer – Mfg “Capacity Utilizer” • Same Flavors, Form Factors, Pricing, Quality, Limited Innovation KRAVE Advantages KRAVE Challenges + Flavors/Natural Ingredients/Low Sodium - Scale/Resources + Meat Cuts/Quality - Distribution Power + Traceability - Longevity/Heritage + Singular Focus/Small Guy Flexibility - Fighting Category “Gut Stuffer” Image COMPETITION
  21. WHAT WE LEARNED KRAVE vs. Competition  Fitness Enthusiasts  Healthy Snackers, Foodies  Targeted to Men and Women  All Natural Ingredients  Gourmet / Premium / Modern Image  US Sourced Meat  Higher Quality Meat Cuts  50% Less Salt and Fat  Moist and Tender Texture  Grocery and Specialty Channel Focus  Manufacturers vs. Marketers > Jerky = Waste Reducer / Capacity Filler > All Similar Offerings – Compete on Price  All Targeted to Men  Artificial Ingredients  “Gut-Stuffer” / Traditional Image  South American Sourced Meat  Unknown Quality of Meat Cut  High Fat / Sodium Content  Dry and Tough Texture  Limited and Conventional Flavors
  22. Key Partners -Transactions: Paypal, Visa, Mastercard -Channel to Consumer: HSN, Safeway, Flash sale sites (Woot, Joss & Main, Fab) (✔) -Public Relations Firm - Glodow Nead -Manufacturing Key Activities -New distribution channels -In-store demos -Formal customer support service Value Prop -Unique package -Quality of meat -Health benefits of jerky (✔) -Snack taste (✔) Cust. Relations -Branding (✔) -Customer education -In-store demo -Frequent buyer program Cust. Segments - Athletes (✔) - Gourmet food enthusiasts - Purposeful eaters (✔) - Vegetarian Jerky - Female segment (✔) Key Resources - Jon Sebastiani - Direct to store delivery - National distribution Channels -Direct to consumer – web -Vending machines -Specialty stores (Cost Plus) (✔) -Supermarkets (✔) -Krave Jerky Stores -Airport kiosks (✔) -South Beach diet -Jerky store in Vegas KRAVE CANVAS SUMMARY WEEK 8 Cost Structure -Slotting Fees -Temporary price reduction, Scan based discount -In-store demo -$19m target market Revenue Stream -$5.95
  23. Key Partners -Transactions: Paypal, Visa, Mastercard -Channel to Consumer: HSN, Safeway, KeHe Flash sale sites (Woot, Joss & Main, Fab) (✔) -Public Relations Firm - Glodow Nead (✔) -Manufacturing (✔) Key Activities -New distribution channels (✔) -In-store demos -Formal customer support Service Social Media Leverage Manufacturing Vertical Horizontal Integration Value Prop -Unique package (✔) -Quality of meat (✔) -Health benefits of jerky (✔) -Snack taste (✔) Cust. Relations -Branding (✔) -Customer education -In-store demo -Frequent buyer program (✔) Cust. Segments - Athletes (✔) - Gourmet food enthusiasts (✔) - Purposeful eaters (✔) - Vegetarian Jerky - Female segment (✔) Key Resources - Jon Sebastiani - Direct to store delivery - National distribution -National Media (AP, WSJ, etc.) -Gross margins versus top line revenues Channels -Direct to consumer – web (✔) -Vending machines -Specialty stores (Cost Plus) (✔) -Supermarkets (✔) -Krave Jerky Stores -Airport kiosks (✔) -South Beach diet -Jerky store in Vegas KRAVE CANVAS SUMMARY WEEK 11 Cost Structure -Slotting Fees -Temporary price reduction, Scan based discount -In-store demo -$19m target market -Gross margin vs. Revenue Revenue Stream -$5.95(✔) -KeHe/Tree of Life -Direct Sales(✔) -Flash sites(✔) -QVC(✔)
  24. Key Partners -Transactions: Paypal, Visa, Mastercard -Channel to Consumer: HSN, Safeway, KeHe Flash sale sites (Woot, Joss & Main, Fab) (✔) -Public Relations Firm - Glodow Nead (✔) -Manufacturing (✔) -Order Fulfillment (✔) Key Activities -New distribution channels (✔) -In-store demos -Formal customer support Service Social Media Leverage (✔) Manufacturing Vertical/Horizontal Integration(✔) Value Prop -Unique package (✔) -Quality of meat (✔) -Health benefits of jerky (✔) -Snack taste (✔) Cust. Relations -Branding (✔) -Customer education -In-store demo -Frequent buyer program Cust. Segments - Athletes (✔) - Gourmet food enthusiasts (✔) - Purposeful eaters (✔) - Vegetarian Jerky - Female segment (✔) Key Resources - Jon Sebastiani - Direct to store delivery - National distribution (✔) -National Media (AP, WSJ, etc.) (✔) Channels -Direct to consumer – web (✔) -Vending machines -Specialty stores (Cost Plus) (✔) -Supermarkets (✔) -Krave Jerky Stores -Airport kiosks (✔) -South Beach diet -Jerky store in Vegas KRAVE CANVAS SUMMARY WEEK 14 Cost Structure -Slotting Fees -Temporary price reduction, Scan based discount -In-store demo -$19m target market (specialty jerky) -Gross margin vs. Revenue(✔) Revenue Stream -$5.95 (✔) -KeHe/Tree of Life -Direct Sales (✔) -Flash sites (✔) -QVC (✔) -Cash flow -2012 Projections
  25. Key Partners -Transactions: Paypal, Visa, Mastercard -Channel to Consumer: HSN, Safeway, QVC. KeHE) Flash sale sites (Woot, Joss & Main, Fab) -Public Relations Firm - Glodow Nead -Manufacturer -Order Fulfillment Key Activities -New distribution channels -In-store demos -Formal customer support service -Social media leverage -Manufacturing -Vertical/Horizontal integration Value Prop - Unique package - Quality of meat - Health benefits of jerky - Snack taste Cust. Relations -Branding -Customer education -Public relations -In-store demo -Frequent buyer program Cust. Segments -Athletes -Gourmet food enthusiasts -Purposeful eaters -Vegetarian Jerky - Female segment Key Resources - Direct to store delivery - National distribution - National media (e.g. AP, WSJ articles) Channels -Direct to consumer – web -Vending machines -Specialty stores (Cost Plus) -Supermarkets/retail -Krave Jerky Stores -Kiosks KRAVE CANVAS FINAL Cost Structure -Slotting Fees -Temporary price reduction, Scan based discount -In-store demo -$19m target market (specialty) -$500m jerky market (niche) -Gross margins or revenues Revenue Stream -$5.95 (retail) - QVC - KeHE/Tree of life - Flash sites - Direct sales
  26. WHAT’S COMING DOWN THE PIKE?  Roll-out of KRAVE 2.0 in Q1 2012  New Branding  Better Product  New Size (3.25 oz)  Formal Marketing / PR Drive  Launching with Safeway on National Basis in Jan 2012  5 Flavors  $5.99 / unit price to Consumer  Addition of Other Major Distributors in Q4 ‘11 / Q1 ‘12
  27. BUSINESS PERSPECTIVE 2011 – 2012 YOY Growth 2 0 1 1 - $ 1 , 6 0 0 , 0 0 0 2 0 1 2 - $ 7 , 0 0 0 , 0 0 0 + 4 5 0 %
  28. Krave – on!

×