The document summarizes revisions made to EatBlue.com's business model. It identifies two main problems with the current model: 1) the business objective focuses on acquisition rather than retention, and 2) EatBlue is perceived only as a food ordering site rather than a comprehensive restaurant resource. The revised business plan shifts the target to upperclassmen, focuses promotion on retention through discounts and emails, and changes perception by promoting EatBlue as an information hub. Recommendations include further retention tactics and adding user reviews.

1. Andrew Ahadi, Cara Herman, Todd Jaffe, Steve Kim, Joanna Lu, Andres Medina

2. Who, prior to this class, had heard
of EatBlue.com?

3. Have you ever heard of
EatBlue.com?
Yes (79%)
No (21%)

4. Who has used EatBlue.com?
Who has used it more than 2 times?
Who has used it more than 20
times?

5. How Often Do You Visit EatBlue.com?

6. Welcome to EatBlue.com
 Launched 2006
 Currently run by
CAS
 Ann Arbor’s #1
Online Restaurant
Guide
 Menus, Ordering,
Meal Plan

7. AGENDA
 Current Big Picture
 Current BBB
 Main Problem
 Revised Big Picture
 Revised BBB

8. Current Big Picture
business marketing source of STP Execution
objective objective volume
segment product/
service
target
FE: EatBlue.com price
position
CC: Understanding what place
students want
Goals: 3000 unique promotion
hits/day
CURRENT BP CURRENT MAIN REVISED BP REVISED BBB
BBB PROBLEM

9. Current Big Picture
business marketing source of STP Execution
objective objective volume
segment product/
service
target
price
Acquisition position
place
promotion
CURRENT BP CURRENT MAIN REVISED BP REVISED BBB
BBB PROBLEM

10. Current Big Picture
business marketing source of STP Execution
objective objective volume
segment product/
service
target
price
Stimulate demand position
place
promotion
CURRENT BP CURRENT MAIN REVISED BP REVISED BBB
BBB PROBLEM

11. Current Big Picture
business marketing source of STP Execution
objective objective volume
segment product/
service
target
price
MV: Convenience
position
DV: Variety
place
promotion
CURRENT BP CURRENT MAIN REVISED BP REVISED BBB
BBB PROBLEM

12. Plotting the market
Selection/Variety (DV)
EatBlue.com
Campusfood.com,
Inc.
S2YD
Convenience (MV)
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BBB PROBLEM

13. Current Big Picture
business marketing source of STP Execution
objective objective volume
segment product/
service
target
price
MV: Convenience
position
DV: Variety
place
Target:
Ann Arbor residents promotion
UMich students
CURRENT BP CURRENT MAIN REVISED BP REVISED BBB
BBB PROBLEM

14. Before: Target #1
 Jimmy Froshmansen
 Freshman, applying to
Ross
 Lives in Mary Markley
 Has a meal plan with
the dorms
 Still eats out often
 Hobbies:
 Video games
 Eating a variety of food
 Walks through the Diag
daily
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BBB PROBLEM

15. Before: Target #2
 Mr. Robert Erickson
 Bank Teller, PNC Bank
 Lives in an apartment
on William and Division
 Single, but goes on
dates often
 Goes out to lunch daily
 Too busy to wander
around campus for
food
 Walks through the diag
daily
CURRENT BP CURRENT MAIN REVISED BP REVISED BBB
BBB PROBLEM

16. Current Positioning Statement
“I don’t need EatBlue is a great “The best way to
Current
EatBlue because I Consumer
place to order
get food is to
can walk around or Desired Belief
ORDER from
Belief
call a restaurant.”
Proposition
food online. EatBlue.com”
“I do not use “I use EatBlue.com
Current Do
EatBlue.com.” to order my Do
Desired food.”
CURRENT BP CURRENT MAIN REVISED BP REVISED BBB
BBB PROBLEM

17. Current Big Picture
business marketing source of STP Execution
objective objective volume
segment product/
service
target
price
Product/Service: Search, Experience position
(where feasible) place
Price: To be determined…
promotion
Place:
L: Indirect
B: Exclusive
D: Minimal
Promotion: Awareness
CURRENT BP CURRENT MAIN REVISED BP REVISED BBB
BBB PROBLEM

18. Breakdown of Cash Flows
Website Costs
(servers, doma Employees
ins, etc.) (student
Sales
Commission (6% managers,
per order) promotes etc.)
EatBlue.com Meal Plan
Program Costs
Ad Revenue
Promotions
Maintenace
Costs

19. AGENDA
 Current BP
 Current BBB
 Main Problem
 Revised BP
 Revised BBB

20. Current BBB
Ann Arbor % Who’ve Heard of
Community EatBlue.com 79% of 20% of
students x residents x
approx. 41,000 approx. 73,000
114,024 41.2% students residents
41.2%
Ann Arbor Residents Probability of Order
Who’ve Heard of Site
46,978 3.83%
Total # of Hits per Average Commission
Day per visit Total Revenue
Earned
1,800 $ 0.40 $ 720
CURRENT BP CURRENT MAIN REVISED BP REVISED BBB
BBB PROBLEM

21. AGENDA
 Current BP
 Current BBB
 Main Problem
 Revised BP
 Revised BBB

22. Problems?
 Great idea
 Everybody can use it
 Ann Arbor’s market leader in restaurants
guide
Why isn’t EatBlue more profitable and
successful…
CURRENT BP CURRENT MAIN REVISED BP REVISED BBB
BBB PROBLEM

23. Problem #1
• BUSINESS OBJECTIVE
#1
• Acquisition
current
• Retention
revised
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BBB PROBLEM

24. Problem #1
• BUSINESS
#1 OBJECTIVE
• Currently
Acquisition
• Should be
Retention
60%
50%
40%
30%
20%
10%
0%
Never Less than Once a 2-3 times a
Once a week times a
2-3 Daily
once a month month week
month
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BBB PROBLEM

25. Problem #1
 Currently focused on acquisition
 Successful: more than 79% of students have heard of EatBlue
 58% have been on EatBlue at least once
 What about the old customers that have used EatBlue
once or twice?
 Emphasis on Retention
 Cheaper to market after current customers
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BBB PROBLEM

26. Problem #2
• PERCEPTION
#2 PROBLEM
• Too many people think of
EatBlue.com as only for ordering
current
food
• On EatBlue.com, you can look up
restaurants, menus, get
revised
discounts, and order food
CURRENT BP CURRENT MAIN REVISED BP REVISED BBB
BBB PROBLEM

27. Problem #2
• PERCEPTION PROBLEM
Have you ever used
#2 EatBlue JUST to look up
• Too many people think of
EatBlue.com as only for ordering
current food menus?
• On EatBlue.com, you can look up
restaurants, menus, get
revised discounts, and order food
Yes 44%
No 56%
CURRENT BP CURRENT MAIN REVISED BP REVISED BBB
BBB PROBLEM

28. Sample Survey Responses
 “Food?”
 “A place to order food”
 “A director to restaurants that accept the card?”
 “Online food ordering site”
 “To order food around the University of Michigan”
 “Ordering food from restaurants in Ann Arbor”
 “Service to order food”
 “Food delivery”
 “Place to use blue bucks”
 “Tells you restaurants that allow blue bucks”
 “Scam”
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BBB PROBLEM

29. AGENDA
 Current BP
 Current BBB
 Main Problem
 Revised BP
 Revised BBB

30. Revised BP
business marketing source of STP Execution
objective objective volume
segment product/
service
FE: EatBlue.com Acquisition
Retention Stimulate demand target
price
CC: position
Understanding place
what students
want MV: Convenience
DV: Variety promotion
Goals: 3000
unique hits/day Target:
Upperclassmen
Ann Arbor residents
Other students
UMichUMICH students
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BBB PROBLEM

31. After: Target
 Name: Matt Hunson
 BBA Junior
 Mother is a teacher, father is a lawyer
 Lives just off Campus on White Street
 No meal plan with any campus dorm
 Hobbies:
 Video games
 Dave Matthews Band
 Basketball at the IM Building
 Trendy
 constantly surfing the web for new music,
games, news, sports updates

32. New positioning statement
“When I am EatBlue.com offers the “EatBlue will help
deciding what to most comprehensive
eat, I use a search Consumer
database of
me make an
Current Desireddecision
informed Belief
engine or walk Proposition
restaurants, menus,
Belief
around campus” and specials for Ann about my next
Arbor meal.”
“I do not go to “I go to
Current Do
EatBlue.com”
Desired Do
EatBlue.com”
CURRENT BP CURRENT MAIN REVISED BP REVISED BBB
BBB PROBLEM

33. Revised BP [again]
business marketing source of STP Execution
objective objective volume
segment product/
service
target
Product/Service: Search, Experience
Product/Service: Credence price
(where feasible)
Price: Continuity Pricing
position
Price: To be determined… place
Place:
Place:
L: Indirect promotion
L: Indirect
B: Exclusive
B: Exclusive
D: Minimal
D: Minimal
Promotion: Retention-focused
Promotion: Awareness
CURRENT BP CURRENT MAIN REVISED BP REVISED BBB
BBB PROBLEM

34. Changing Product, Price, Place &
Promotion
Product/Service Credence
Search/Experie
(Second
nce
Nature)
Pricing Continuity
Unclear
Pricing
Promotion Retention
Awareness
Focused

35. More On Promotion
Retention
Focused
Offer Sign-in Promotions Follow-Up E-
for Repeat for Continued Mails to
Users Use Users

36. Final Revised Big Picture
business marketing source of STP Execution
objective objective volume
segment product/
FE: EatBlue.com Retention Stimulate demand service
CC:
target
Understanding
price
MV: Convenience
what students DV: Variety position
want place
Target:
Goals: 3000
Upperclassmen Product/Service: Credence promotion
unique hits/day
Other UMICH students
Price: Continuity Pricing
Place:
L: Indirect
B: Exclusive
D: Minimal
Promotion: Retention-focused
CURRENT BP CURRENT MAIN REVISED BP REVISED BBB
BBB PROBLEM

37. AGENDA
 Current BP
 Current BBB
 Main Problem
 Revised BP
 Revised BBB

38. Revised BBB
U of M Students % Who’ve Heard of
EatBlue.com Have you ever heard of
EatBlue.com?
41,674 79%
No
(21%)
U of M Students Modest Projected Yes
(79%)
Who’ve Heard of Site Conversion Rate
32,922 12%
Total # of Visits per Average Commission Total Revenue
Day per Visit Total Revenue
Earned
Earned
3,951 $ 0.35 $1,382.74
CURRENT BP CURRENT MAIN REVISED BP REVISED BBB
BBB PROBLEM

39. AGENDA
 Current BP
 Current BBB
 Main Problem
 Revised BP
 Revised BBB

40. Recommendations/Conclusion
 Shift target consumer
 Fromfreshmen/AA residents to
Focus on UPPERCLASSMEN
Retention  Promotion for continued usage
 Loginimmediately on the website
 Discount for certain number of log-ins
 E-mail with discount after order

41. Recommendations/Conclusion
 Send e-mails when new information
available on the site
 E.g.:New menus/restaurants
Change  Not just for deals and ordering
Perceptio  Specificsidewalk
n chalk/flyers/banners
 Encourage people to visit site to
check out menus
 Add reviews tab
 New aspect to the site
 Allow user feedback and input