1. Blue Apron: The Next Chapter Team 3 Victoria Smith, Scott Schulman, Michael Dearwester, Hyokang Lee, Steve Lee, Payal Kapoor

2. Recommendation: Blue Apron should consider expanding into low-carb, high protein. Part 1Part 2Part 3 Exploratory research yielded various opportunities regarding dietary restrictions. We prioritized four for further quantitative analysis. Leverage multiple regression to understand if dietary restrictions predict consumer spending; Simulated Test Market to test whether purchase interest translates into purchase intent Survey focused on interest in the four dietary areas. We had challenges representing US population; however, low-carb, high-protein was most popular with statistical significance

3. Project Background & Research Objective Project Background 1 What has made Blue Apron so successful to date? Mission: “Make incredible home cooking accessible to everyone” Offers two-day shipping guarantee upon order, a variety of menus, high standards for ingredients, excellent logistics, Leverages word of mouth primarily to market itself Research Objective Which specific specialty food segment offers the most promising expansion opportunity for Blue Apron? 1 Source: Blueapron.com

4. Part 1: Exploratory Research Top Food Trends 1% of the population has tried any meal delivery service as of December 2015 (CNBC, 2015). The online grocery retail segment is projected to reach $13.1M in 2015, of which 32% relate to dietary restrictions 2. From the charts above, we identified four prioritized segments to further analyze quantitatively. Source: 1 Online Grocery Market Size: IBISWorld Industry Report OD5085: Online Grocery Sales in the US; 2 Special Dietary Market: https://ibotta.com/ibottalytics;https://ibotta.com/ibottalytics 3 Google Trends (https://www.google.com/trends/explore#q=paleo%2C%20vegan%2C%20%2Fm%2F034n2g%2C%20%2Fm%2F02c3sn%2C%20high%20protein&geo=US&cmpt=q&tz=Etc%2FGMT%2B5) Dietary Preferences 1 : Dietary Trends 3 :

5. Part 1: Exploratory Research Usage Occasion: Low-carb, high-protein meals 1:1 Interview Tend to cook many meals at home Enjoyed cooking for or with family members Currently lacking meal variety Would be more willing to try Blue Apron if there were offerings that met current dietary preferences or restrictions UsersCompetitorsBenefitsDrawbacksAdditional Comments Conscious consumers looking for a treat, but choosing or required to stick to low carb options for personal or medical reasons Home cooked meals, diets focused on plant based diets Provides balance of eating in for healthy food and eating out for potentially less healthy food Customers understand the benefits of low carb meals Confusion of what low carbohydrate means Great way to catch empty nesters

6. Part 2: Survey - Design Intro Thank you for providing... If you are not familiar with Blue Apron … Blue Apron delivers all the fresh ingredients you need to make delicious meals in exactly the right proportions. They have designed their service to teach you how to cook new recipes, expose you to seasonal, farm-fresh produce and reduce unnecessary food waste. How interested, if at all, would you be in ordering each of the following offerings, if Blue Apron were to offer them? Q5 Please allocate the following 100 points based on what you value, or would value, most about a service like Blue Apron. Please allocate the following 100 points based on what would deter you from using a service like Blue Apron. Q3 & Q4 Have you used Blue Apron before? If you were provided a Blue Apron trial for free, would you try it? Q1 & Q2 1 - Not at all interested (1) 2 (2)3 (3)4 (4)5 - Very interested (5) Gluten-free meals (1) Vegan meals (2) Paleo meals (3) Low-carb, high- protein meals (4)

7. Part 2: Survey - Design What is your gender? To which age range do you belong? What is the zip code of your primary residence? Q7 & Q8 & Q9 Do you have any dietary restrictions? Please select all that apply. Q6 ❑ Gluten intolerance (1) ❑ Lactose intolerance (2) ❑ Vegan (3) ❑ Vegetarian (4) ❑ Pescetarian (5) ❑ Paleo (6) ❑ None (7) ❑ Other: (8) ____________________

8. Part 2: Survey - Key Findings Highest interest in low-carb, high-protein meals Aligned with the result from the exploratory research Price could play the biggest role in deterring prospective customers

9. Part 2: Survey - Key Findings Question 5 – Paired Sample T-TestsQuestion 6 – Chi Square (GoF) Pair TestedMean*P-ValueReject null? Gluten - Vegan-0.0360.835No Gluten - Paleo-0.3570.015Yes Gluten - Low Carb/High Protein-1.7980.000Yes Vegan - Paleo-0.3210.088No Vegan - Low Carb/High Protein-1.7620.000Yes Paleo - Low Carb/High Protein-1.440.000Yes

10. Part 3: Additional Tools Proposed 1. Regression 2. Simulated Test Market (Nielsen BASES) Purpose: to test whether purchase interest translates into purchase intent Specifics: Concept test; Nielsen BASES; Expose consumers to two paragraph concepts, ask them to answer Likert-scale (would definitely buy – would definitely not buy) questions, use these scores to translate into forecasted sales figures Outcome: Trial purchase and repeat purchase percentages Coefficients a Model Unstandardized Coefficients Standardized Coefficients tSig. BStd. ErrorBeta 1(Constant) Dietary_Restriction s Income Gender Location a. Dependent Variable: Consumer Spending

11. Thank you!