1. BUSINESS MODEL PROJECT20th April 2011 A - Team - Hult

2. 2 416 5 31. Manuel del Aguila - SEO 4.. Martha Tolosa - Email Marketing2. Daniel Aufricht - Strategy and Planning Integration 5. Megan Lowe - Social Media3. Nataliya Mogilevskaya - Mobile6. Pratanchai Permpanich - Display 3. Brief Overview20th April 2011A - Team - Hult 4. 20th April 2011 A - Team - Hult 5. Whole Foods We seek out the finest natural andorganic foods available, maintain the strictest quality standards in the industry, and have an unshakeablecommitment to sustainable agriculture. Founded in 1980 in Austin, Texas. Growth throughout the 1990s. Acquired more natural and organic food companies.20th April 2011A - Team - Hult 6. Values: High quality natural and organic products Delighting customers Supporting employee happiness and excellence Creating wealth through profits and growth Taking care of community and environment Create mutually beneficial partnerships with suppliers Promoting health of stakeholders through healthy eating educationConsistently ranked among the most socially responsiblebusinesses.20th April 2011A - Team - Hult 7. CurrentBusiness Model20th April 2011 A - Team - Hult 8. Offline Online SHOPSWEB SITEFull-version Mobile20th April 2011A - Team - Hult 9. 20th April 2011 A - Team - Hult 10. Content Gift CardsCooking Classes Coupons Stores DealsLocation Recipes Comments Information products Registration List of products20th April 2011A - Team - Hult 11. Shopping listProducts Recipes20th April 2011A - Team - Hult 12. Framework20th April 2011 A - Team - Hult 13. What products or services do you usually purchase online? Econsultancy Survey (2010)74% of the respondents usually buy these products online: 20th April 2011A - Team - Hult 14. These statistics show an increase in this trend, which supports the potential of the business model People trust this kind of service and embrace the online shopping system People would sometimes rather pay more for a service in order to save time20th April 2011 A - Team - Hult 15. Why do people shop online?Nielsen Online survey of 1000 people shows that peopleshop online because of the following reasons:20th April 2011A - Team - Hult 16. Tight schedule Stressed out The Big City Time is essential Traveling is expensive20th April 2011A - Team - Hult 17. London Market Organic &Online Online LikelihoodMarket Natural?grocerypersonal of online Share (incl.shopping?shopping?shopping?offline) Not yet, but Not yet, butLikely to take1-2%soon with oursoon with our share from modelmodel below stores Branded range" 4%4.4%as well as otherorganic / naturalbrandsSmall branded "14% 16.5% rangeSmall brandedTo an extent, 66% 30.3% range, addingnot with advicenon-food range and guidance soon20th April 2011A - Team - Hult 18. Organic food is no longer just a nicheThe niche is gone. Organic has gone mainstream.New opportunity in special diets, including thoserelated to food allergies.Food allergies in children have risen 18% since 1997,affecting 3 million children today. Nearly 4% of adults, or12 million people, have food allergies. Another 3 millionpeople cant consume gluten (ceilac disease). In this nicheyou could include aging baby-boomers who focus onlow-sodium, low-fat, dairy-free diets or people whoadopt alternative diets like veganism.Sources: http://mattpaxson.blogspot.com/2008/11/heath-foods.html20th April 2011 A - Team - Hult 19. What customers want - Speed - Convenience - Healthy Alternative - Quality over quantity - Something trustworthy - Value for price20th April 2011A - Team - Hult 20. Consumers behaviourFraser McKevitt, retail analyst: With economic uncertainty increasingly in the news it is no surprise that shoppers are being cautious withtheir spending Sources: http://foodanddrinkbusiness.com/?p=380320th April 2011 A - Team - Hult 21. The Digital Model Needs DesiresQuick Quality > Quantity ConvenienceTrustworthy HealthyBest valueAffordable Customer20th April 2011 A - Team - Hult 22. Potential Digital Models20th April 2011A - Team - Hult 23. Twelpforce:Customer Service on Twitter20th April 2011A - Team - Hult 24. Trip Advisor:Rating of Hotels20th April 2011A - Team - Hult 25. New DigitalBusiness Model20th April 2011 A - Team - Hult 26. Shopping online is not a novelty. There is a need in the market that has not been met. When people buy goods online, there are often doubts about the quality of products like fresh goods.20th April 2011A - Team - Hult 27. Insight: It is difficult to buy fruits or vegetables online, I do not know if the goods to be delivered are going to be exactly as I expect them.20th April 2011A - Team - Hult 28. Wholefoods is going to enter the market online with an innovative advantage20th April 2011A - Team - Hult 29. The Personal ShopperIt is a virtual figure that is going to help customersto pick special goods that need to be chosen by anexpert.There are several options of experts. Customers areable to see their profiles and choose one of them,based on their needs.20th April 2011A - Team - Hult 30. Lucy. Expert in fruits. If you fancy the most exotic fruit salads in the world, you need Lucy. If you dont know how to pick a pineapple, or a juicy melon, dont worry, that is her job.20th April 2011 A - Team - Hult 31. 20th April 2011 A - Team - Hult 32. Laura. Expert in vegetables. She picks fresh products for you. Tell her if you need your avocado ripe, to be eaten on 3 days or however you need it. Hear suggestions for this season and try new salads.20th April 2011 A - Team - Hult 33. 20th April 2011 A - Team - Hult 34. Sam. Expert on BBQs.Sam used to haveBBQ all the time backat home in Australia.Tell him what kind ofparty you areimagining and for howmany people and hewill sort it out.20th April 2011 A - Team - Hult 35. 20th April 2011 A - Team - Hult 36. David. Expert onpacked lunches.Did you run out of thechoices to surpriseyour kids at school?Talk to David and letyour children the chanceto try new healthyflavours and fun choicesfrom an expert.20th April 2011 A - Team - Hult 37. 20th April 2011 A - Team - Hult 38. Implementation 1. Collect offline data (loyaltycards)1.Collect offline data (loyalty cards) 2. Create programm for2.Create programm for recommendationsrecommendations3.Build infrastructure andand hire 3. Build infrastructure hire employees4.Testingemployees5.Advertising 4. Testing6.Bring customers online and launch the 5. Advertisingservice customers online and 6. Bringlaunch the service20th April 2011 A - Team - Hult 39. -Customers can see shoppers profiles -Pick their favouritewww. -Rate them-Recipes for every season-Low calories, get fit-Special occasions -Send messages, preferences -Shopping lists can be rated and edited, can be improved -diet- -Track purchases of the customers -Suggestions, posible combinations, Cross selling.Like the pageInteractionon FacebookLoyalty card to trackoffline performance -Personalised infoFollow your personal shopper according to preferencesfor recipes - Friend to friend sharing -Offers to promote loyalty 20th April 2011 A - Team - Hult 40. Models DynamicDeliver Goods andOtherawaiting feedback:customersif negative, an incentive suggestionswill be offered.Selection ofproducts forthe customerProductCustomer FeedbackInformation gathered,based onthe customersprevious shoppingactivities, behavior, and Gather informationfeedback. DatabaseOptimize recommendations,20th April 2011 A - Team - Hultchannels, according to database 41. After the first phase, more products can be offered:Candies, Liquors, Deli, Dry Goods20th April 2011A - Team - Hult 42. Goals Establish a closer relationship with the customer To become a full service online supermarket Turning online shopping into a personalexperience: customers and experts can be friends Added value by experts: recipes,recommendations, health advice, cross selling Earning customers through personalized channels20th April 2011 A - Team - Hult 43. ULTIMATELYCompetitive advantage20th April 2011A - Team - Hult 44. Recommendations20th April 2011A - Team - Hult 45. Establish basic online shopping capabilities to start with Implement personal shopping as a value-added option Introduce a loyalty program to track customerspurchases, lists, behavior, feedback Testing before launching online Adapting characters after feedback and depending onseasons Hiring analytics experts to interpret the data Monitoring the social networks Starting in London with a possible roll-out to NY andLA20th April 2011A - Team - Hult 46. Thanks!Any questions?20th April 2011 A - Team - Hult