berryboost team9

Jennifer Holm Kasperi Putkonen Adaobi KanuChristine Lee

Talked to 5 Wholesalers

Talked to 90 End-Users

Talked to 10 Retailers

Talked to 2 Beverage

Consultants

Conducted 40 Surveys

HERE’S WHAT WE THOUGHT DAY 1

• We thought we’re going to produce high-end water and stylish juices to cool, young people

• We thought it needs to be organic, CO2 neutral and available in private jets..

• But that idea didn’t survive the first customer contact

Key Partners

BUSINESS MODEL CANVASDAY 2

Key Activities Value Proposition

Customer Relationships

Customer Segments

ChannelsKey Resources

Revenue StreamsCost Structure

Suppliers of Berries

Partnerships for Brand Creation:

MaterialsDesignPackagingMarketing

Retail Partners:Bars & NightclubsHotelsRestaurants"Off site" consumptionGrocery stores e.g. Dean & Deluca"On site" consumption

Sourcing of water

Sourcing of berries

Bottling and logistics

Making juiceQuality Control

The factory / bottling siteIntellectual resources: Brand

Human resources for:

Quality control

Product R&DSales / Customer relations

Provide the world's best water and natural berry juiceDesign: fashionableStatus: High quality high quality packaging

New flavors such as cloudberry, lingonberryand seabuckthorneNatural, hand picked, CO2 neutral

Provide the water and the juice separately, let the

customer mix them=> customization

On the go: Small juice & bottles portability

Online communities forco-creation of mixes, recipes etc.

Awareness and Evalu:Website and social media

After Sales:website and social media

Key account managers

Mass Market productpremium/luxury

Urban consumers Fashion savvy-/ Green

Target Segments:Urban males and females 15-49, high end restaurant / clubs / hotels73% f, 27% m.

Consumers1. Heavy Water Drinker2. People who Juice

Retailers1. Mass Market 2. Specialty food stores

Asset sales model

Predefined prices

Sales to wholesaler

On-line direct sales

Sourcing of berries (economies of scale)

Quality control

Marketing

Premium/luxury value proposition

Creating partnerships

MARKET OVERVIEW

Non Alcoholic Bev

$258B

Fruit-Drink Mixes$1B

Fruit Juice$5B

Berry Boost$10M

(1% of Market)

Fruit-Drink Mixes: $1B

Growth in concentrates

Mio 12.28% Market

Fresh Juices:Projected 4%-8%

growth 2011: Sales of bottled fruit and veggie juices $2.2B

up 58%

National movement, toward healthier

eating and organic

Bottled Water: $22B

WHAT WE LEARNEDDAY 2Would you

purchase a shot of fresh berry puree to mix with water for both nutrition

boosting and flavor-enhancing

purposes?

–70% yes, - 30% no

- –Yes: ”Great way to

flavor water without adding

calories/sugar/artifcial sweeteners”

Needs not currently met by existing products,

top three

1. Too much sugar (65%)

2. Prefer more health benefits

(55%)

3. Prefer more natural ingredients

(45%)

Customers value

Mixing on-the-go

Portable Packaging

to be carried in purse/pocket

Price Per Serving WTP

$1.00 - 2.00

$2.00 - $3.00

Key Partners

BUSINESS MODEL CANVASDAY 3

Key Activities Value Proposition

Customer Relationships

Customer Segments

ChannelsKey Resources

Revenue StreamsCost Structure

Suppliers of Berries

Partnerships for Brand Creation:

MaterialsDesignPackagingMarketing

Distribution Partners:Beverage Wholesalers

Retail Partners:Bars & NightclubsHotelsRestaurants"Off site" consumptionGrocery stores e.g. Dean & Deluca"On site" consumption

Sourcing of water

Sourcing of berries

Bottling and logistics

Making juiceQuality ControlMaintaining Distributor Relationships Customer Relationships

The factory / bottling siteIntellectual resources: Brand

Human resources for:

Quality control

Product R&DSales / Customer relations

Provide the world's best water and natural berry juiceDesign: fashionableStatus: High quality high quality packaging

New flavors such as cloudberry, lingonberryand seabuckthorneNatural, hand picked, CO2 neutral

Provide the water and the juice separately, let the

customer mix them=> customization

On the go: Small juice & bottles portability

Dedicated assistance to wholesale distributors

Online communities forco-creation of mixes, recipes etc.

Samplings to get consumer reactions

Awareness and Evalu:Website and social mediaPurchase and Delivery:

Wholesale Partners

After Sales:website and social media

Key account managers

Mass Market productpremium/luxury

Urban consumers Fashion savvy-/ Green

Target Segments:Urban males and females 15-49, high end restaurant / clubs / hotels73% f, 27% m.25-50+Consumers1. Heavy Water Drinker2. People who Juice

Non- Sweet Drinkers

Retailers1. Mass Market 2. Specialty food stores

Asset sales model

Predefined prices

Sales to wholesaler

On-line direct sales

Sourcing of berries (economies of scale)

Quality control

Marketing

Premium/luxury value proposition

Creating partnerships

Donna: The Water Lover

CUSTOMER SEGMENTS

Jim: The Juicer

Big Geyser: The Bev

Wholesaler

Looking to have a

diversified beverage

portfolio to offer their

retail partners

• Prefers water• Active lifestyle• Health Conscious• Values Portability

The MiddlemanThe End-User

• Makes Juice at Home

• Willing to $pend• Trendy

• Wants to try new Superfruits!

• Low sugar• Active lifestyle• Health conscious• Values portability• Wants vitamins• Fresh Ingredients

• 25-50+

Natasha: The All-Naturalist

• Likes sugar• Drinks soda

• Doesn't look at labels

• Young

Tommy: The Sweet Tooth

WHAT WE LEARNEDDAY 3

Location: 96th St &

Broadway

Consumers Sampled: 70

Orders Placed: 5

Consumer Feedback:

Berry Boost: “More Berry flavor”

“More Natural”

Mio... “I would rather hump a dry cactus than drink

that garbage”

“Artificial – Too Sweet”

Funny after taste

Key Partners

BUSINESS MODEL CANVASDAY 4

Key Activities Value Proposition

Customer Relationships

Customer Segments

ChannelsKey Resources

Revenue StreamsCost Structure

Suppliers of Juice

Partnerships for Brand Creation:

MarketingDesignPackagingMaterials

Distribution Partners:Beverage Wholesalers

Retail Partners:Bars & NightclubsHotelsRestaurants"Off site" consumptionGrocery stores e.g. Dean & Deluca"On site" consumption

Sourcing of water

Sourcing of berries

Bottling and logistics

Making juiceMarketingMaintaining Distributor Relationships Customer Relationships

The factory / bottling siteIntellectual resources: Brand

Human resources for:

Quality control

Product R&DSales / Customer relations

Provide the world's best water and berry juiceDesign: fashionableStatus: High quality

The Story!!

New flavors such as cloudberry, lingonberryand seabuckthornehand picked, CO2 neutral

Organic

Provide the water and the juice separately, let the

customer mix them=> customization

On the go: Small juice & bottles portability

Dedicated assistance to wholesale distributors

Online communities forco-creation of mixes, recipes etc.

Samplings & consumer education

E-Commerce

Website

Key account managers

Wholesale Partners

Direct at Events

Retailers

Mass Market productpremium/luxury

Urban consumers Fashion savvy-/ Green

Target Segments:Urban males and females 15-49, high end restaurant / clubs / hotels73% f, 27% m.25-50+Consumers1. Heavy Water Drinker2. People who Juice

Non- Sweet Drinkers

Retailers1. Mass Market 2. Specialty food stores

Asset sales model

Predefined prices

Sales to wholesaler

On-line direct sales

Sourcing of berries (economies of scale)

Quality control

Marketing

Premium/luxury value proposition

Creating partnerships

CHANNELS

WHOLESALE

E-COMMERCE

DIRECT TO CONSUMERS

RETAIL

X X

X X X

XX

Fairway Market:Organic Specialty

GET STRATEGY

• In-Store Samplings

• Consumer Coupons

• Staff Trainings• Deals• Retailer Incentives

Natasha: The All-Naturalist

Big Geyser: The Bev

Wholesaler• Lots of samples• Retailer Support• Sales Support• High Margins• Sales Incentives• Exclusivity

• Entertainment

Besides attracting consumers with a product/story, we need to be ready to spend $$$ on wholesalers and on free samples for customer access. 80% of a product’s success comes from

distribution/marketing!!

• Consumer POS Items

• Event Sponsorships• Website

• Marketing Materials• Giveaways• Coupons

REVENUE

COGS

Target Gross Margin (40% of wholesale)

Distributor Margin (30% of trade)

Retailer Margin (50% of Retail

Price)

WHAT WE LEARNEDDAY 4

Talked to 5 Wholesalers

Talked to 90 End-Users

Talked to 10 Retailers

Talked to 2 Beverage

Consultants

Access to distribution crucial but costly;

Start with local growth

Outsource manufacturing at the

beginning So what’s important

?

Create a story, find

your niche. Then focus on getting

your products to customers.

Find relevant/niche distribution partners; Look into partnering with bottled water

firms

Marketing & Distribution = 80%

of the game

Conducted 40 Surveys

NEXT STEPS

• Finding the niche: New hypothesis• Hone in on the customer need• Make sure we have the right

segment and the right value proposition

• Create the story• Focus on channels and partnerships• Throw the book from the ceiling of

Warren Hall when we have first 5000 clients waiting for the beverages to ship