Susan Weller, Principal, SW Branded Concepts - Out of the Box: How Subscription Services Inspire Grocerant Creativity

OUT OF THE BOX

HOW SUBSCRIPTION MEAL SERVICES INSPIRE GROCERANT CREATIVITY

How can we use outside inspiration to help us think differently?

Millennials, despite their well-documented economic challenges, are demanding higher-quality food, visual stimulation, and technologically enhanced experiences.”- J. Walter Thompson Intelligence

1. luggage carousel meets sushi conveyor

2. crew pit meets drive-thru

3. egg carton meets wine bottle insert

Subscription Meal Services

subscription meal boxes 101Online orderingWeekly delivery on the day you chooseInsulated packaging, ingredients stay coldPre-portioned ingredients for 2 or familyRecipes, Instructions and Videos

2 major players emergePlated has received $50 M in funding since 2012 -Crain’s, July 2015

Blue Apron received $135 M from Fidelity. Fidelity has valued the lead funding round at $2 B -Tech Crunch, June 2015

JUST ANNOUNCEDWine pairings; a case of 6- 500ml bottles with tasting cards

other players and their “niches”

VegansCurious cook

Recipes + shopping lists

Time-strapped dieterFoodies, by restaurant Chefs

Smoothie enthusiasts

Focus on fresh produce

What trends are driving this phenomena?

what trends make this idea so hot?

Cracked the delivery code

linking technology with guaranteed delivery day

Convenience

inspired recipes and portioned ingredients delivered to your door

Customization

subscription plans, delivery frequency, dietary needs

Transparency

each box contains ingredients sourced from farmers, lends perception of

healthiness

what trends make this idea so hot?Packaging

guarantees food won’t spoil, aesthetically pleasing, with “meaning

NEW and exciting “gift”it’s an adventure in a box, every week; people trying ingredients

they’ve never tried before

Foodie phenomenaamateur Chefs, Extreme eaters, shopaholics, picky eaters, vegans, flextarians – there’s an answer for everyone

Family mealsbringing families back to the table, Gen X and 2 income households preferring to cook at home

this isn’t entirely new…Schwan’s frozen home delivery since 1955

4500 vehicles 2.5 million delivery customers

8 categories emerge

Customer engagement, loyaltyLife-hack, convenienceFoodie-appeal, Chef-driven, restaurant qualityNiche, farm-to-table, diet-focusedFood transparency, food sourcingPackaging, portion controlFamily meals, social gatheringsTechnology enabled marketing, delivery

what outcomes should we expect?New revenue streamsProcess improvementEngaged, frequent customers who spend moreEngaged employees gaining new skillsCustomer data for future segmentationDifferentiation Cross-utilizationOpportunity to capitalize on resources – Chefs and Dietitians

Interactive team challenge

on to the team challenge…6 teams 35 minutes1 BIG idea from each team

Your talented team of facilitators…Leslie Maclin, Isthmus InnovationJoan Driggs, Progressive GrocerJim Dudlicek, Progressive GrocerKatie Martin, Progressive GrocerPenny Anderson, NPDKetan Vaghani, former Kraft and General Mills

taskOne big idea from each team based on any of these “winning” elements:

Customer EngagementLife-hack Foodie-appeal Niche Food Transparency Packaging Family meals Technology enabled marketing & delivery

next steps…Find your team and your breakout room Meet your team facilitatorEach team will receive a Blue Apron box. Open it and discuss the contents / packaging / marketing / niche etc.Spend 20 - 25 minutes brainstorming your big idea

– Be sure you are not reinventing a different version of a subscription meal service

– Utilize the talents of the team wisely– Watch your time– Be sure that you are all convinced this will actually work back at your

stores!Use 5 – 10 minutes to write up your big ideaYour facilitator will take your idea to a display board at the cocktail party following your team meetingStudy the ideas from the other groups, discuss their ideas and ADD ON more details to each one