Eatblue.com case study
42
Andrew Ahadi, Cara Herman, Todd Jaffe, Steve Kim, Joanna Lu, Andres Medina
Transcript of Eatblue.com case study
Andrew Ahadi, Cara Herman, Todd Jaffe, Steve Kim, Joanna Lu, Andres Medina
Who, prior to this class, had heard of EatBlue.com?
Have you ever heard of EatBlue.com?
Yes (79%) No (21%)
Who has used EatBlue.com?
Who has used it more than 2 times?
Who has used it more than 20 times?
How Often Do You Visit EatBlue.com?
Welcome to EatBlue.com
Launched 2006
Currently run by CAS
Ann Arbor’s #1 Online Restaurant Guide
Menus, Ordering, Meal Plan
AGENDA
Current Big Picture Current BBB Main Problem Revised Big Picture Revised BBB
Current Big Picture
source of
volume
Execution
product/
serviceprice
promotion
marketing
objective
STP
segment
position
target
place
business objective
FE: EatBlue.com
CC: Understanding what students want
Goals: 3000 unique hits/day
CURRENT BP CURRENT BBB
MAIN PROBLEM
REVISED BP REVISED BBB
Current Big Picture
source of
volume
Execution
product/
serviceprice
promotion
marketing
objective
STP
segment
position
target
place
business objective
Acquisition
CURRENT BP CURRENT BBB
MAIN PROBLEM
REVISED BP REVISED BBB
Current Big Picture
source of
volume
Execution
product/
serviceprice
promotion
marketing
objective
STP
segment
position
target
place
business objective
Stimulate demand
CURRENT BP CURRENT BBB
MAIN PROBLEM
REVISED BP REVISED BBB
Current Big Picture
source of
volume
Execution
product/
serviceprice
promotion
marketing
objective
STP
segment
position
target
place
business objective
MV: ConvenienceDV: Variety
CURRENT BP CURRENT BBB
MAIN PROBLEM
REVISED BP REVISED BBB
Plotting the market
CURRENT BP CURRENT BBB
MAIN PROBLEM
REVISED BP REVISED BBB
Sele
ctio
n/V
ari
ety
(D
V)
Convenience (MV)
EatBlue.com
Campusfood.com, Inc.
S2YD
Current Big Picture
source of
volume
Execution
product/
serviceprice
promotion
marketing
objective
STP
segment
position
target
place
business objective
MV: ConvenienceDV: Variety
CURRENT BP CURRENT BBB
MAIN PROBLEM
REVISED BP REVISED BBB
Target:Ann Arbor
residents UMich students
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
CURRENT BP CURRENT BBB
MAIN PROBLEM
REVISED BP REVISED BBB
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 BBB
MAIN PROBLEM
REVISED BP REVISED BBB
Current Positioning Statement
CURRENT BP CURRENT BBB
MAIN PROBLEM
REVISED BP REVISED BBB
Current Belief
Current Do
Consumer Propositio
n
Desired Belief
Desired Do
“I don’t need EatBlue because
I can walk around or call a
restaurant.”
“I do not use EatBlue.com.”
EatBlue is a great place to
order food online.
“The best way to get food is to
ORDER from EatBlue.com”
“I use EatBlue.com to order my food.”
Current Big Picture
source of
volume
Execution
product/
serviceprice
promotion
marketing
objective
STP
segment
position
target
place
business objective
Product/Service: Search, Experience (where feasible)
Price: To be determined…
Place: L: IndirectB: ExclusiveD: Minimal
Promotion: Awareness
CURRENT BP CURRENT BBB
MAIN PROBLEM
REVISED BP REVISED BBB
EatBlue.com
Ad Revenue
Sales Commission
(6% per order)
Maintenace Costs
Website Costs
(servers, domains,
etc.)
Employees (student
managers, promotes
etc.)
Promotions
Meal Plan Program
Costs
Breakdown of Cash Flows
AGENDA
Current BP Current BBB Main Problem Revised BP Revised BBB
Current BBB
CURRENT BP CURRENT BBB
MAIN PROBLEM
REVISED BP REVISED BBB
Ann Arbor Community
114,024
Total Revenue Earned
$ 720
% Who’ve Heard of EatBlue.com
41.2%
Ann Arbor Residents Who’ve Heard of Site
46,978
Probability of Order
3.83%
Total # of Hits per Day
1,800
Average Commission per visit
$ 0.40
41.2%
79% of students x
approx. 41,000
students
20% of residents x
approx. 73,000
residents
AGENDA
Current BP Current BBB Main Problem Revised BP Revised BBB
Problems?
CURRENT BP CURRENT BBB
MAIN PROBLEM
REVISED BP REVISED BBB
Great idea Everybody can use it Ann Arbor’s market leader in restaurants
guide
Why isn’t EatBlue more profitable and successful…
Problem #1
CURRENT BP CURRENT BBB
MAIN PROBLEM
REVISED BP REVISED BBB
#1 •BUSINESS OBJECTIVE
current •Acquisition
revised •Retention
0%
10%
20%
30%
40%
50%
60%
Never Less than once a month
Once a month
2-3 times a month
Once a week2-3 times a week
Daily
Problem #1
#1
• BUSINESS OBJECTIVE
• Currently Acquisition
• Should be Retention
CURRENT BP CURRENT BBB
MAIN PROBLEM
REVISED BP REVISED BBB
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
CURRENT BP CURRENT BBB
MAIN PROBLEM
REVISED BP REVISED BBB
Problem #2
CURRENT BP CURRENT BBB
MAIN PROBLEM
REVISED BP REVISED BBB
#2• PERCEPTION PROBLEM
current
• Too many people think of EatBlue.com as only for ordering food
revised
• On EatBlue.com, you can look up restaurants, menus, get discounts, and order food
No 56%
Yes 44%
Problem #2
#2
• PERCEPTION PROBLEM
current
• Too many people think of EatBlue.com as only for ordering food
revised
• On EatBlue.com, you can look up restaurants, menus, get discounts, and order food
CURRENT BP CURRENT BBB
MAIN PROBLEM
REVISED BP REVISED BBB
Have you ever used EatBlue JUST to look
up menus?
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”
CURRENT BP CURRENT BBB
MAIN PROBLEM
REVISED BP REVISED BBB
AGENDA
Current BP Current BBB Main Problem Revised BP Revised BBB
Target:Ann Arbor
residents UMich students
Revised BP
source of
volume
Execution
product/
serviceprice
promotion
marketing
objective
STP
segment
position
target
place
business objective
CURRENT BP CURRENT BBB
MAIN PROBLEM
REVISED BP REVISED BBB
FE: EatBlue.com
CC: Understanding what students want
Goals: 3000 unique hits/day
AcquisitionRetention Stimulate
demand
MV: ConvenienceDV: Variety
Target:UpperclassmenOther UMICH
students
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
New positioning statement
Current Belief
Current Do
Consumer Propositio
n
Desired Belief
Desired Do
“When I am deciding what to
eat, I use a search engine or
walk around campus”
“I do not go to EatBlue.com”
EatBlue.com offers the most
comprehensive database of restaurants, menus, and
specials for Ann Arbor
“EatBlue will help me make an informed
decision about my next meal.”
“I go to EatBlue.com”
CURRENT BP CURRENT BBB
MAIN PROBLEM
REVISED BP REVISED BBB
Revised BP [again]
source of
volume
Execution
product/
serviceprice
promotion
marketing
objective
STP
segment
position
target
place
business objective
CURRENT BP CURRENT BBB
MAIN PROBLEM
REVISED BP REVISED BBB
Product/Service: Search, Experience (where feasible)
Price: To be determined…
Place: L: IndirectB: ExclusiveD: Minimal
Promotion: Awareness
Product/Service: Credence
Price: Continuity Pricing
Place: L: IndirectB: ExclusiveD: Minimal
Promotion: Retention-focused
Changing Product, Price, Place & Promotion
Product/ServiceSearch/
Experience
Credence(Second Nature)
PricingUnclear
Continuity Pricing
PromotionAwarenessRetention Focused
More On Promotion
Retention Focused
Offer Sign-in for Repeat
Users
Promotions for Continued Use
Follow-Up E-Mails to Users
Final Revised Big Picture
CURRENT BP CURRENT BBB
MAIN PROBLEM
REVISED BP REVISED BBB
source of
volume
Execution
product/
serviceprice
promotion
marketing
objective
STP
segment
position
target
place
business objective
FE: EatBlue.com
CC: Understanding what students want
Goals: 3000 unique hits/day
Retention Stimulate demand
MV: ConvenienceDV: Variety
Target:UpperclassmenOther UMICH
students
Product/Service: Credence
Price: Continuity Pricing
Place: L: IndirectB: ExclusiveD: Minimal
Promotion: Retention-focused
AGENDA
Current BP Current BBB Main Problem Revised BP Revised BBB
Revised BBB
CURRENT BP CURRENT BBB
MAIN PROBLEM
REVISED BP REVISED BBB
Total Revenue Earned
U of M Students
41,674
$1,382.74
% Who’ve Heard of EatBlue.com
79%
U of M Students Who’ve Heard of Site
32,922
Modest Projected Conversion Rate
12%
Total # of Visits per Day
3,951
Average Commission per Visit
$ 0.35
Total Revenue Earned
Yes (79%)
No (21%)
Have you ever heard of EatBlue.com?
AGENDA
Current BP Current BBB Main Problem Revised BP Revised BBB
Recommendations/Conclusion
Shift target consumer From freshmen/AA residents to
UPPERCLASSMENPromotion for continued usage
Login immediately on the website Discount for certain number of log-ins E-mail with discount after order
Focus on
Retention
Send e-mails when new information available on the site
E.g.: New menus/restaurants Not just for deals and ordering
Specific sidewalk chalk/flyers/banners Encourage people to visit site to check
out menusAdd reviews tab
New aspect to the site Allow user feedback and input
Recommendations/Conclusion
Change Percepti
on
?? ?
