Element Food Columbia 2015

Your healthy home-cooked food ordered in the blink of an eye. No more excuses. An healthy life in a

hassle-free way

C. TuckleyMBA

G. GrossmannMBA

R. DonzelliMBA

T. ZhanEngineering

Element Food

Finding and ordering healthy delivery food is too

complicated? Not any more!!!

Interviews

Customer Type Thursday Total

Venture fair pre-class 10

Customers* 8 44

Nutritional professional 1

Potential partners 6

Food businesses 8

Total 8 69

* Plus survey (60+)

What was Element Food

• ‘Fast diet’ options only

• 5 day packages

• All meals of day delivered daily

Day 1 model

DUKAN MEAL PLAN• For individuals

looking to…

PALEO MEAL PLAN• For individuals

looking to…

CAVEMAN MEAL PLAN• For individuals

looking to…

Business Canvas: Day 1Key Partners• Food suppliers• Kitchen rental

supplier• Delivery companies• Offices and gyms in

Manhattan• Social media

influencers

Key Activities• Website and app

development• Customer and Partner

relationship management• Planning and procurement• Order fulfillment & shipping

(cooking & delivery)• Group challenge and

customer reward management

• Online nutritional advise sessions

• Marketing & advertising

Value PropositionProblem: Following a diet when too busy to think what to cook, when to cook and how to cookProduct: Customized food delivery service that caters for customer's nutritional needs & time constraintsWhat we offer:• Fresh, cooked, healthy

meals delivered daily (Breakfast, Lunch, Dinner, Snacks, Drinks)

• Choice of meal plan to follow for the week based on customer nutritional needs

• Delivery to fit customer schedule and location

• Group challenges to incentivize customer loyalty to program

• Optional 1-to-1 online appointments with nutritionist

Customer Relationships• Get: Social media and

partnership advertising, Simple enrollment process, group challenges

• Keep: Reward program, group challenges, 1-to-1 appointments with nutritional advisors

• Grow: Referral rewards, creation of community, variation & more personalization of meals , geographic expansion

Customer Segments

Busy Manhattan office workers

• Men & women• Less price sensitive• Health conscious• All ages• Active online shoppers• Eat in the office

frequently

Young adults in Manhattan

• Men & women• Less price sensitive• Childless individuals• Age:21 to 50• Health conscious• Active online shoppers• Don’t know how or

don’t have time/like to cook

Key Resources• Financing• Physical: Kitchen, food

inventory, equipment for preparation and delivery

• List of corporations and other potential partners

• Human: chefs, nutritionists, delivery force

Channels• Mobile app• Online website• Partnerships with

corporations• Collaborations with

other health service providers e.g. gyms

Cost Structure• Fixed: Kitchen rental, fixed employee salaries, app/website

management, accounting system• Variable: Delivery force rental, nutritionist services, food inventory,

packaging, marketing & advertising

Revenue Streams• Daily subscription (with a 5 day minimum) paid in advance of

delivery

What we learned

We had… Because we thought… Turns out…

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• Choice of meal plan based on customer nutritional needs

• 5 days min, incl. breakfast, lunch, dinner, snack and drinks

• Customers trusted the healthy label

• In the LT customers want flexibility, willing to commit to a week if fast diet (e.g. detox)

• People value fast diet but also healthy varied meals and nutritional advices

• Some like some don’t

• Customers value information, want to learn

• Customers have different nutritional needs and need 5 days per meal

• To guarantee commitment

• That was enough since no other competitors offer more info

• Order in advance before the week starts

• People willing to commit in advance to a diet

• Customers have to be active online shoppers

• Young adults as a customer segment

• Active online shoppers are the ones that usually order food online

• Our value prop was attractive to everyone

• Being active online shopper differs from food delivery shoppers

• Given level of commitment, only regular gym users were attracted

Pivot: How we changed our product

• ‘Fast diet’ options only

• 5 day packages

• All meals of day delivered daily

Day 1 model Day 2 model

BASIC BALANCE


looking to…


looking to…


looking to…


looking to…


looking to…


looking to…

DIET OPTIONS

NUTRITIONAL ADVICE

• 3 tier structure• Basic for long-term customer retention

• Diet plans for those looking for a little extra

• Nutritional advice for those with specific

dietary needs

Business CanvasKey Partners• Food suppliers• Kitchen rental

supplier• Delivery

companies• Offices and gyms

in Manhattan• Social media

influencers



relationship management• Planning and procurement• Order fulfillment & shipping

(cooking & delivery)• Group challenge and

customer reward management



Value Proposition Customer Relationships• Get: Discount trials,

Social media and partnership advertising, Simple enrollment process, group challenges

• Keep: Reward program, group challenges, 1-to-1 appointments with nutritional advisors

• Grow: Referral rewards, creation of community, variation & more personalization of meals , geographic expansion

Customer SegmentsBusy, affluent Manhattan office workers• Men & women• Eat often at desk• Use food delivery

frequently• >$100k salary• Less price sensitive• Health conscious• All ages• Active online shoppers• Eat in the office frequently

Young adults Regular gym users in Manhattan• Men & women• Less price sensitive• Childless individuals• Age:21 to 50• Health conscious with

specific nutritional goals• Use food delivery

frequently• Active online shoppers• Don’t know how or don’t

have time/like to cook









management, accounting system• Variable: Delivery force rental, nutritionist services, food inventory,


Revenue Streams• Basic: Weekly or monthly subscription choosing # meals/week (18-25 USD/meal)• Diet: Weekly subscription; all meals of the week included (200-350 USD/week) • Premium charge for nutritional advice• Daily subscription (with a 5 day minimum) paid in advance of delivery

Problem: Following a diet when too busy to think what to cook, when to cook and how to cookProblem: They don’t have access to a easy-to-use, transparent and informative, long term healthy food delivery serviceProduct: Customizable food delivery service that caters for customer's nutritional needs & time constraints• Nutritional labelling on packaging• Fresh, cooked, healthy meals

delivered once daily (Breakfast, Lunch, Dinner, Snacks, Drinks)

• 2 levels of service: 1.Basic (delivery by meal) 2.Diet with optional nutritional advice

• Choice of meal plan to follow for the week based on customer nutritional needs

• Delivery to fit customer schedule and location

• Group challenges to incentivize customer loyalty to program

• Optional 1-to-1 online appointments with nutritionist

What we learnedWe had… Because we thought… Turns out…

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• 3 programs: basic healthy, specific diet (e.g. Detox), customized with personal nutritionist

• Highly customized diets

• Flexibility is more important for the majority of people

• Limited options and push notifications are better

• Most important issues are: no healthy options available, ordering process too long

• Forget about diet, focus on healthy meals

• We needed to solve every person’s problem

• 5 days min orders , every meal included

• People valued the idea of not having to think

• All affluent• 2 types of customers:

busy office workers and other gym users

• Companies will subsidize meals to employees

• Subscription revenue model

• Meal plans are costly• They had different needs

• Healthy habits/meals drive more workplace effectiveness

• Less time consuming

• Our product is now attractive also to less affluent people, if competitive price

• Only 1 segment, health conscious, don’t want to spend time choosing

• Only companies that already include food benefits will be our 1

stcustomers

• Pay-per-meal to enhance flexibility

Oth

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Subscription1Tell us who you are, your

restrictions, your office/home address, your credit card account, and your plan

Receive a push notification/ e-mail to select your meal

2 We prepare your meal and deliver it to your preferred location

3

• Only 3 healthy options available per meal

• Possibility to add snacks and drinks

Therefore we pivoted again

All information are saved so there is no need to re-insert

them every time

Simple, fast, super healthy Additional information available to add educational

elements and guarantee healthiness

Business CanvasKey Partners• Food

suppliers• Kitchen

rental supplier

• Delivery companies

• Food Vanrental services

• Offices and gyms in Manhattan

• Social media influencers



relationship management

• Planning and procurement

• Order fulfillment & shipping (cooking & delivery)

• Group challenge and customer reward management




Social media and partnership advertising, Simple enrollment process, group challenges

• Keep: Reward program, group challenges, subscription discounts

• Grow: Referral rewards, creation of community, variation & more personalization of meals, geographic expansion, corporate events, nutritional advice

Customer SegmentsBusy affluent Manhattan office workers• Busy men & women in

Manhattan• Aged 22-55• Eat often at desk/ don’t

have much time to eat• Use food delivery

frequently• Health conscious• Willingness to eat healthy• Not on a particular diet• Less price sensitive• Regular gym users• Don’t know how or don’t

have time/like to cook• >$100k salary• All ages• Childless individuals• Age:21 to 50• Health conscious with

specific nutritional goals• Use food delivery

frequently• Active online shoppers









management, accounting system, vans• Variable: Delivery force rental, nutritionist services, food inventory,


Revenue Streams• Pay-per-meal• Subscription• Company account• Diet of the week plan

Problem: • People don’t like to think about what to eat, or

don’t have time to do it• Choosing delivery food is a long process, often

left until the last minute by the time you are starving

• Few credible healthy delivery options available• They don’t have access to a easy-to-use,

transparent and informative, long term healthy food delivery service

Product: Customizable food delivery service that caters for customer's nutritional needs & time constraints• Guaranteed healthy food • Delivery to fit customer schedule and location• 30-sec ordering process• 3 options per meal, with recommended options

for a thoughtless process• Reminder push notification• Nutritional labelling on packaging• Promotional diet of the week• Fresh, cooked, healthy meals delivered once

daily (Breakfast, Lunch, Dinner, Snacks, Drinks)• 2 levels of service: 1.Basic (delivery by meal)

2.Diet with optional nutritional advice • Group challenges to incentivize customer

loyalty to program

• Basic: Weekly or monthly subscription choosing # meals/week (18-25 USD/meal)

• Diet: Weekly subscription; all meals of the week included (200-350 USD/week)

• Premium charge for nutritional advice

Element Food unique elements

Element Food

Cook own food

Healthy focused

Nutritional info

10-sec to order

3 choices per meal

Warm delivered meals

Full meals recipe

Affordable

Power food options

Focus on fast delivery

Web+app

In NY

What we learned

Our product… Because we thought… Turns out…

• Delivery in entire Manhattan

• Outsource delivery service

• All meals around $15

• Add company catering• Group challenges

• Delivery service was not complicated

• People would have ordered 2/3 hours in advance

• Seamless had its own delivery force

• Affordable to everyone

• More business• Increase commitment,

people would like them

• Start with only one highly dense location (e.g. Midtown)

• 2/3 hr is too much

• Insource delivery service

• People that expense their meals want premium more expensive choices

• Not phase 1 focus• Not important in a first phase,

eating healthy is a personal thing/ habit

Ch

ann

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Rev

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Oth

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Business CanvasKey Partners• Food

suppliers• Kitchen

rental supplier

• Delivery companies

• Food Vanrental services

• Offices and gyms in Manhattan




relationship management

• Planning and procurement

• Order fulfillment & shipping (cooking & delivery)

• Group challenge and customer reward management



Social media and partnership advertising, word of mouth, Simple enrollment process.

• Keep: Reward program, subscription discounts


Customer Segments• Busy men & women in

Manhattan Midtown• Aged 22-55• Eat often at desk/ don’t












management, accounting system, vans• Variable: Delivery force rental paid per hour, nutritionist services,

food inventory, packaging, marketing & advertising

Revenue Streams• Pay-per-meal ($15)• Subscription with a discount• Company account• Diet of the week plan Premium option pay-per-meal ($25-30)

Problem: • People don’t like to think about what to eat, or

don’t have time to do it• Choosing delivery food is a long process, often

left until the last minute by the time you are starving

• Few credible healthy delivery options availableProduct: • Guaranteed healthy food • Delivery to fit customer schedule and location• 30-sec ordering process• 3 options per meal, with recommended options

for a thoughtless process• Reminder push notification• Nutritional labelling on packaging• Promotional diet of the week• Premium option

Website and app development

ResourcesActivities Partners

Capital search

Distribution

Customer Development

Regulatory Compliance

Production

Marketing

Human e.g. chef, nutrition, delivery

Finance

Physical e.g. kitchen, inventory

Law outsource

Customer dev. team

Law firms

Offices

Kitchen rentals

Gyms

Social media influencers

Food suppliers

Angels, VC

Employees

Activities – Resources - Partners

What is Element Food Now

Element Food is a one-click, certified healthy food delivery service

for busy individuals who are looking to be healthy and productive.

Unlike other food delivery services such as Seamless and Freshology,

Element Food has healthy, home-cooked food at your door at the click of

a button by making the choosing process as hassle-free as possible

How it works

What we do Customer experience

We take food orders a few hours before delivery

(IT system requirements)

We cook the food(Chef / cook training,

Kitchen and equipment provision, lean process)

We delivery the food(Logistics, vehicles,

employee management)

The customer receives a push notification…

…they open the website /app and choose 1 of the 3 meal options with a single click!

Business CanvasKey Partners• Food suppliers• Kitchen rental

supplier• Food Van

rental services• Offices and

gyms in Manhattan



development• Capital search• Customer and Partner

relationship management• Planning and

procurement• Order fulfillment &

shipping (cooking & delivery)

• Customer reward management

• Marketing & advertising• Regulatory Compliance


Social media and partnership advertising, word of mouth.

• Keep: Reward program, subscription discounts


Customer Segments• Busy men & women in

Midtown• Aged 22-55• Eat often at desk/ don’t






• Customer development team: list of corporations and other potential partners



corporations


management, accounting system, vans, Licenses and Insurance• Variable: Delivery force paid per hour, nutritionist services, food

inventory, packaging, marketing & advertising

Revenue Streams• Pay-per-meal ($15)• Subscription with a discount• Company account• Premium option pay-per-meal ($25-30)

Problem: • People don’t like to think about what to eat,

or don’t have time to do it• Choosing delivery food is a long process,

often left until the last minute by the time you are starving

• Few credible healthy delivery options available

Product: • Guaranteed healthy food • Delivery to fit customer schedule and

location• 30-sec ordering process• 3 options per meal, with recommended

options for a thoughtless process• Reminder push notification• Nutritional labelling on packaging• Premium option

Next steps

1. Continue to refine Business Model

• Perform more interviews

• Customers, chefs & cooks, food business owners, nutritionists, web developers, delivery based companies, kitchen rental businesses, more potential partners…

• Build out cost structure and match against value-based revenue model

2. Detailed plan of logistics

• Cooking: Training cooks, lean cooking

• Delivery: Delivery force lean analytics

3. Prototype build & test

• Build simple prototype and test out with potential customers

• Refine produce based on test results

REPEAT

4. Find financing

• Determine financing needs

• Attain investor financing

• Start building business!

Appendix

Survey ResultsBanking/Consulting

(20)

Grad

Students

(26)

Non-Banking

(10)

Budget for lunch $18 $13 $10

Budget for dinner $25 $18 $13

FoodValue healthy food? 95% 100% 90%

Require hot meal 80% 50% 40%

Choosing

process

Value simple process? 95% 96% 90%

Love to see just 3 options 65% 54% 30%

Delivery

Value fast delivery? 95% 92% 80%

Push Notification 30% 12% 30%

Order hours in advance 30% 15% 20%

Try order lunch/dinner

together 40% 35% 20%

Require separate dinner

delivery 100% 56% 100%

PaymentValue premium option 85% 73% 60%

Interested in subscription 80% 62% 60%

Sample product

Option 1: Balanced meal - $12

Option 2: Vegetarian, gluten free - $15

Option 3: PREMIUM CHOICE - $25• To capture higher Willingness-to-Pay customers

Customer segment/ Archetype

• Works in Bryant Park area• Knows what she should eat

but has no time• Affluent, less price sensitive

JennahLawyer, 38

SimonCBS student, 28

MichaelBanker, 49

• Tired of CBS limited food offering

• Price sensitive but willing to pay a premium for healthy food and lose some weight

• Want to learn what does healthy means

• Not price sensitive as his company pays for meals

• Like varied gourmet food

• Busy men and women in Manhattan• Gym-addict• Limited time/ will to buy and cook food• Often eat breakfast/ lunch/ dinner in the office/ on campus• Frustrated by lack of easy to order healthy options• Not on a diet, but values healthy habits• Always forget to order food because too busy

Channels

Delivery force

Mobile/Website

Partnerships with corporations

• Element Food would have their personal delivery force that would be paid by hour• It is key to find reliable employees for our delivery to avoid bad delivery service

• Element Food would offer a website for sign up and subscriptions• Element Food would offer an app that send push notifications to make the ordering

process easy and fast

• Corporations are willing to offer their employees the possibility to pay their meals if they use our service

Marketing Campaign

Discount trials

Partnership advertising

1

2

Get customers

• Interviewers were interested in trying the food first before subscribing to this kind of service, because they wanted to know that it is healthy and good quality

• Interviewing partners such as gyms and HHRR at companies we noticed that they would promote the program (HHRR just as a benefit for their employees, gyms at a fee)

3

Ads4 • Ads on Google Search (main keywords: health, diet) and Facebook

Word of mouth • Using the university resources, friends, family, and colleagues

• Knowing our target, we are planning to use influencers, our target usually reads The Economist, WSJ, Forbes, Fortune, esquire

Revenue Model

Asset Sale

Subscription

Pay-per-meal with a fixed menu pricing

One month subscription with an amount of meals included

• Some interviewers like the idea of “being forced” to eat healthy frequently• Discounts depend of the amount of meals per subscription (minimum 6)

o 6 meals 5% discounto 8 meals 10% discounto > 10 meals 15% discount per meal

• Some interviewers like the flexibility of eating healthy when they do not have a business lunch/dinner

• $15 per basic meal, $25-30 per premium meal• Potential for customers to pay via company accounts

Element Food Columbia 2015

Education

Transcript of Element Food Columbia 2015