Blue Apron Party Box Marketing 796 Final Project Section 302, Team 6 Emily Wu, Robert Benbow, Alyssa Gaughen, Sungjun Lee, Vikramjeet Singh 1

Executive Summary  Recommendation: run a pilot in selected urban areas with our proposed “Party Box” offering (serves 8 for $100 with a simple recipe - $12.50 per person)  Research Phases  Focus group: to explore the “Party Box” option for Blue Apron  Survey: to get sufficient data (50 responses) for conjoint analysis  Conjoint analysis: to find an ideal offering based on the maximum utility to consumers  Profitability analysis: to assess whether our plan could be profitable  Proposed Research: analyze cannibalization, determine profitability 2 Research FindingsRecommendationProposed ResearchResearch ObjectiveExecutive Summary

Research Objective: “Party Box” Plan  Is there an opportunity for Blue Apron to expand to customers who enjoy having dinner parties?  How many servings should be included in a Party Box?  What would be their willingness to pay?  What would be the most appealing offering to customers?  Is it feasible for Blue Apron to offer Party Boxes for one- off orders without subscriptions? Research FindingsRecommendationProposed ResearchResearch ObjectiveExecutive Summary

Focus Group Findings  Budget: $15-$20 per person  Prep Time: min grocery shopping, 2-3 hours cooking  Pain Points of Dinner Parties  Always have leftovers  Difficult to find needed ingredients at the grocery store  Take a long time to prepare and clean up  Concerns about the proposed Party Box Plan  Limited choices  Want to preserve family traditions during special occasions  Allergy and dietary restrictions Research FindingsRecommendationProposed ResearchResearch ObjectiveExecutive Summary

Survey Design and Findings  Demographic Information  Age: (87%)  Gender: Male (59%) vs Female (41%)  Awareness Rate (82%)  Users (22%) vs Non-users (78%)  Offering Types  One Main Course, One or Two Sides, with or without Dessert  Price: $100/$125/$150  Serving: 6/8/10  Recipe: Simple/Moderate/Advanced  Highest Rated Offering: a main course, two sides, a dessert, serves ten people, costs $100, and has a moderate recipe Research FindingsRecommendationProposed ResearchResearch ObjectiveExecutive Summary

Conjoint Analysis - Part-Worth Utilities  A Party Box that includes a main course, two sides, and a dessert, serves eight people, costs $100, and has a simple recipe has the highest utility (total utility is 6.24) Research FindingsRecommendationProposed ResearchResearch ObjectiveExecutive Summary

Recommendation  Run a pilot in selected urban areas (where customers live close together)  Proposed Offering: serves 8 for $100 with a simple recipe ($12.50 per person)  Additional $2.50 per diner ($12.50 compared to current $10) could defray the costs of extra course and one-off shipping  Potential Monthly Profits for “Party Box”: ~2 million Research FindingsRecommendationProposed ResearchResearch ObjectiveExecutive Summary

Limitations and Proposed Research Limitations  Consumers may have assumed that they could select their meals  Survey respondents were all Fuqua students  Lack of accurate information to calculate potential monthly profits Proposed Research  Collect responses from a broader audience  Analyze cannibalization of Party Box with current offerings  Determine profitability by addressing internal costs such as shipping and inventory Research FindingsRecommendationProposed ResearchResearch ObjectiveExecutive Summary

9 Thank You! Questions & Answers

10 Appendix (Calculation of Potential Profit)