This document summarizes Brian B. Burgess' thesis presentation for his Masters in Design Management from IED Barcelona in 2014. The presentation covers the inspiration, process, insights, concept, and business plan for a weekly recipe subscription service called #cookingcouplets. #cookingcouplets helps Instagram users plan meals, save time cooking, and build community through sharing recipes and photos on social media. Burgess conducted research including interviews and testing a prototype to develop the concept and business model.
1. BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
Brian B. Burgess
Masters in Design Management
Thesis Presentation
IED Barcelona
16 December 2014
2. 1. Inspiration
2. Process
3. Insights
4. Concept
5. Business Plan
Contents
BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
4. US Department of Health and Human Services. National Institute of Diabetes and Digestive and Kidney Diseases. Overweight and obesity statistics.
Overweight is defined as a Body Mass Index (BMI) of 25 to 29.9. Obese is defined as a BMI of 30+, and extremely obese is a BMI of 40+
More than
1 in 3 adults
are obese.
1/3
of 6-19 year olds
are overweight
or obese
BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
More than
2 of every 3
Americans are
overweight or
obese.
5. high levels of
sugar, fat and salt
that come from highly processed foods
~Michael Pollan, Cooked
BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
8. BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
http://designthinking.co.nz/wp-content/uploads/2012/09/UCD-process.jpg
40+ Interviews
Innovation
Workshop
Co-Creation
Idea #1 and #2
30 Nov- 14 Dec
10. BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
“To cook is
about time
and research.
It’s very strict.
Like a
science.”Pablo, interview
Planning
is a
burden
“I’m
paralyzed
by
choice.”Sierra, interview
“When I cook
for others, I
put in more
effort”
Claire, interview
15. • Address user barriers but go beyond to
provide value
• Easy and approachable
• Leverage social aspect of food/cooking
• Be able to integrate into busy schedules
• Scalable and profitable
Design Criteria
BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
17. BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
18. BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
cou·∙plet-‐
two
lines
of
poetry
that
form
a
unit
{
}
#cookingcouplets is a weekly recipe
subscription that helps Instagram users
cook with the next meal in mind
and makes everyday dinners
faster, easier and more social.
19. How it works.
BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
20. How it works.
BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
21. How it works: Menu #1
BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
22. How it works: Menu #2
BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
23. How it works
BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
24. Customer Benefits
BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
Saves me time shopping and cooking, cuts down on
burden of planning. Waste less food and save money.
Functional-
Emotional- Makes me feel proud and accomplished with what
I’ve made. Builds my confidence.
Social- I get to show off and impress my friends, they’ll think
I’m an awesome cook. I feel part of a group.
26. 54signed up
43Images on Instagram
BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
Results
20%Engagement
27. Results
BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
“It was fun to see the different ways everyone interpreted
the recipes and made them their own. It also helped us
branch out from our staple meals and try something new.
~Katie
“Really enjoyed the whole experience, and bummed I’ve
gotta figure out all 7 meals this week without the #cc email
to rely on”
~Darren
29. Executive Summary
Market Environment
- There are 142 million pictures on Instagram with the hashtag #food.
- 22% of food photos are of documenting of self-creations
- Blue Apron is delivering 1 million meals a month at price of $9.99 each.
Business Idea Concept
#cookingcouplets is a weekly recipe subscription that helps Instagram
users cook with the next meal in mind and makes everyday dinners faster,
easier and more social.
Uniqueness of Business Opportunity
#cookingcouplets is the only cooking solution that allows home cooks to
optimize their time by consolidating the preparation and cooking for two
meals at a time.
It leverages Instagram for social support and recognition among other
cooks and meets customers where they spent a significant portion of their day.
BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
30. Executive Summary (cont’d)
Key Strategies
- Build initial subscription base of users and onboard them to the
“couplet” technique
- Use bloggers and food writers to increase message
- Work with specific health related communities and real food advocacy
groups
- Partner with equipment and cooking essentials partners (olive oil, etc)
Investment Required
$17,000 will cover the start up costs of creating the initial menu bank,
building the web platform, as well as marketing and operations for the first
year.
BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
Return on Investment
Based on membership fees only (and not additional income from affiliates or
sponsorship) and using membership projection of similar projects, this concept will
be profitable in its second year, and have a full return on initial investment in the
first quarter of year three.
31. Business
Model
Descrip)on
The Business Model Canvas
Revenue Streams
Channels
Customer SegmentsValue PropositionsKey ActivitiesKey Partners
Key Resources
Cost Structure
Customer Relationships
Designed by: Date: Version:Designed for:
designed by: Business Model Foundry AG
The makers of Business Model Generation and Strategyzer
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What are the most important costs inherent in our business model?
Which Key Resources are most expensive?
Which Key Activities are most expensive?
is your business more
Cost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing)
Value Driven (focused on value creation, premium value proposition)
sample characteristics
Fixed Costs (salaries, rents, utilities)
Variable costs
Economies of scale
Economies of scope
Through which Channels do our Customer Segments
want to be reached?
How are we reaching them now?
How are our Channels integrated?
Which ones work best?
Which ones are most cost-efficient?
How are we integrating them with customer routines?
channel phases
1. Awareness
How do we raise awareness about our company’s products and services?
2. Evaluation
How do we help customers evaluate our organization’s Value Proposition?
3. Purchase
How do we allow customers to purchase specific products and services?
4. Delivery
How do we deliver a Value Proposition to customers?
5. After sales
How do we provide post-purchase customer support?
For what value are our customers really willing to pay?
For what do they currently pay?
How are they currently paying?
How would they prefer to pay?
How much does each Revenue Stream contribute to overall revenues?
For whom are we creating value?
Who are our most important customers?
Mass Market
Niche Market
Segmented
Diversified
Multi-sided Platform
What type of relationship does each of our
Customer Segments expect us to establish
and maintain with them?
Which ones have we established?
How are they integrated with the rest of our
business model?
How costly are they?
examples
Personal assistance
Dedicated Personal Assistance
Self-Service
Automated Services
Communities
Co-creation
What Key Activities do our Value Propositions require?
Our Distribution Channels?
Customer Relationships?
Revenue streams?
catergories
Production
Problem Solving
Platform/Network
What Key Resources do our Value Propositions require?
Our Distribution Channels? Customer Relationships?
Revenue Streams?
types of resources
Physical
Intellectual (brand patents, copyrights, data)
Human
Financial
Who are our Key Partners?
Who are our key suppliers?
Which Key Resources are we acquairing from partners?
Which Key Activities do partners perform?
motivations for partnerships
Optimization and economy
Reduction of risk and uncertainty
Acquisition of particular resources and activities
What value do we deliver to the customer?
Which one of our customer’s problems are we
helping to solve?
What bundles of products and services are we
offering to each Customer Segment?
Which customer needs are we satisfying?
characteristics
Newness
Performance
Customization
“Getting the Job Done”
Design
Brand/Status
Price
Cost Reduction
Risk Reduction
Accessibility
Convenience/Usability
types
Asset sale
Usage fee
Subscription Fees
Lending/Renting/Leasing
Licensing
Brokerage fees
Advertising
fixed pricing
List Price
Product feature dependent
Customer segment
dependent
Volume dependent
dynamic pricing
Negotiation (bargaining)
Yield Management
Real-time-Market
strategyzer.com
-‐ Help
home
cooks
make
good
food
more
o>en
-‐
Save
)me
by
op)mizing
shopping,
prepara)on
and
cooking
of
weekly
meals
-‐
Social
support,
encouragement
and
recogni)on
among
other
cooks
-‐
Save
money
and
minimize
food
waste
-‐ Heavy
social
media
users
-‐ 25
-‐
40
working
professional
-‐
Singles/couples
-‐
Families
with
young
children
-‐ Email
-‐Instagram
-‐ Web
-‐ Heavy
social
media
users
-‐ 25
-‐
40
working
professional
-‐
Singles/couples
-‐ Subscrip)on
-‐ Partnership/
Sponsorship
-‐ Equipment/
Cookbooks
-‐ Weekly
menu
crea)on
and
produc)on
-‐ Web
and
mail
services
Business Model Canvas
-‐
Menu
produc)on
-‐
Media
for
menus
-‐
Web
content
and
server
management
-‐
Addi)onal
cooking
resources
-‐
Food
bloggers
-‐
Health
and
real
food
advocacy
groups
-‐
Cooking
knowledge
-‐
Experts
(Nutri)onist,
IT,
legal
etc.
.)
BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
32. Category
Insight
Marketing Plan
Product Price Place Promotion
- Weekly menu
subscription
- Access to all
previous weeks
- Change and
recalculate
shopping lists
and menus
based on
servings.
- Annual
subscription @
$5/ month
- 6-month
subscription @
$6/month
- 3-month
subscription @
$7/month
- Free 1 month trial
- Direct web
sales
- Email/web
distribution
- Instagram
(primary)
- Facebook,
Twitter
- Google Ad
words
Target User
Heavy social media users (specifically Instagram) between the age of 25-40.
BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
33. Case Study: Blue Apron
- Founded 2012
- 1 million meals per month @ $10
- 20+ sponsored items for
purchase
BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
34. - Unlimited number
of recipes available
- Provides menu for
every meal
throughout the week
- Provides weekly
meal plan and
shopping list
- Change meals if you
don’t like them, make
them vegetarian,
paleo etc.
-Provides all the food
and recipes for the
week so people can
focus on the fun part
of cooking.
- Optimizes time to
make two meals at a
time
- Social support and
recognition among
other cooks
- Too many choices
- Difficult to gauge
quality of recipe
- Lots of
advertisements
- Paleo specific
- Lots of repetition
- Lack of social
benefit
-Expensive
-Food can go to
waste if plans change
- Lots of packaging
waste
- Takes time to explain/
understand
- Potential for copying
NA 4 meals a day /
7 days a week
4 meals per week 3 meals per week 2 meals per week with
option to add more
couplets
$1.50/ month
annual subscription
$7.40/ month
annual subscription
$6/ month
annual subscription
$9.99 per person/per
meal
$5/ month
annual subscription
+
-
$
#
Market & Competition
BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
35. 19k
followers
13
followers
(not
a
typo)
4.5k
followers
120k
followers
#allrecipes:
8.3k
#myallrecipes:3.4k
#paleoplan:
1.4k
#cooksmarts:
703
#kitchenhero:
1004
#blueapron:
39k
Market & Competition- Instagram Use
BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
36. Financials
Profit & Loss
2015 2016 2017 2018
Unit/Volume of service 2,500 7,000 15,000 20,000
Price 5 5 5 5
Total Revenues 12,500 35,000 75,000 100,000
Cost of Sales 8,616 11,132 12,032 12,032
Gross Margin 3,884 23,868 62,968 87,968
Gross Percentage 0.31 0.68 0.84 0.88
Research and Development 0 0 0 0
Selling 0 0 0 0
General Management & Admin 5,250 5,250 10,500 10,500
Marketing 5000 6000 7000 9000
Operating Income (EBITDA) -6,366 12,618 45,468 68,468
Taxes 0 3785.4 13640.4 20540.4
Net income/Net Profit -6,366 8,833 31,828 47,928
Net income/Net Profit % 25.24% 42.44% 47.93%
BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA
37. Category
Insight
Start Up Plan
Task Sub Task Month
1 2 3 4 5 6 7 8
Trademark Name
Hire Branding/Design firm
Branding Design
Hire web developer
Web Site Design
Integrate mail service
Integrate pay service
Web Site Beta test
Final web tweaks
Contract Kitchen workshop
Hire nutritionist
Hire photographer
Build recipe bank
Begin marketing
Court food bloggers
Google ad works
Facebook ads
Site launch
BRIAN B. BURGESS – MASTERS IN DESIGN MANAGEMENT 2014 – IED BARCELONA