MKTG : MARKET INTELLIGENCE TEAM 10: Joy Anena Odongpiny, Emma Chen, Yihe Jiang, Savannah Omwochei, Susan Zhang ASSESSING A MARKET GROWTH OPPORTUNITY THROUGH PRODUCT LINE EXTENSION

Research Objective Main objective: Should Blue Apron consider a product line extension? How? 1)Evaluate current cooking habits and attitudes towards cooking; 2)Determine whether there is customer need for a new line of Blue Apron meals; and 3)Evaluate customers’ willingness to pay for a new product line that caters to their needs

Exploratory Research Tools employed 10 one-on-one interviews Google analytics Conclusion (for further research) Restricted calorie meal options are preferred People like to cook on special occasions

Primary Data Tool used: Qualtrics Survey Behavior Variables Psychographic Variables Demographic Variables Objectives Current cooking habits and attitudes towards cooking Which line of Blue Apron meals to launch Customers’ willingness to pay for the new product line

Analysis - 70% of participants cook less than 3 times a week - 74% experience frustration when cooking for large groups HOWEVER; - More than 50% desire to eat healthy -74% express willingness to cook for themselves if it is healthy Conjoint Analysis: Optimal combination is $10 per meal for 2 meals for 2 people Cooking is NOT a daily activity Cooking for special occasions is NOT an attractive idea BUT; More people are willing to cook planned meals that cater to their healthy nutritional needs Cooking is NOT a daily activity Cooking for special occasions is NOT an attractive idea BUT; More people are willing to cook planned meals that cater to their healthy nutritional needs

Recommendations Launch a product line targeted towards healthiness o Blue Apron should run tests to validate specific nutritional product line o Blue Apron should run further tests to validate price point and number of meals a week that would appeal to this customer segment

Limitations of Conjoint Analysis Sample largely Duke MBA students Sample largely international students Not reflective of the general population and potential Blue Apron customers

Questions?

APPENDIX

Thread Analysis

Conjoint Analysis