bottle box columbia

BottleBoxHELPING YOU FIND YOUR NEXT FAVORITE DRINK, DELIVERED TO YOUR DOOR

Avneet Singh, Carly Weil, Ethan Than, Ian Mak, Kaushik Tiwari, Phil DuongLEAN LAUNCHPAD | JANUARY 15, 2016

Interviews since yesterday: 5

Interviews to date: 73

Partners• Craft

Wine/Liquor/beer distilleries

• Liquor bottling and packaging units

• Door delivery services such as FedEx, UPS

• Warehouse space providers

• Packaging material designers / manufacturers

• Local bars with a customer base for customer generation and promotional activities

• Airline operators - our monthly updated collection for in flight consumption

• Flavor and special ingredient suppliers

• Flavor / taste / ingredient experts and consultants who understand mixing of flavors

• Bar tools suppliers such as bottle openers, glasses etc.

Activities• Packaging &

shipping• Content creation • Supply chain

sourcing of alcohol product and complementary offerings (garnishes, mixers, food, etc.)

• Logistics operations (storage, orders)

• Quality control • Customer service• Marketing• Supplier

relationship

Value PropositionBox-Side• Monthly discovery

of new and exciting alcohols (beer, wines, spirits, etc.) from small-batch producers unavailable in most major markets

• “Try before you buy” – ability to sample new products and then purchase full-size

Supply-Side• Broadened

customer base and brand awareness for our producer partners

Customer RelationshipsGet:• Social media• Testimonials /

Advertising• Partnering with

suppliers• Promotional samples • Special events (launch

party)Keep:• Responsive customer

service• Feedback mechanisms• Discounts / loyalty

programs• Loyalty rewards (wine

tastings, trip to winery / distillery (e.g., Napa Valley, etc.)

Grow:• Expand customer base

with corporate partnerships

• Geographic expansion (supplier and customer reach)

Customer SegmentsBox-Side• Millennials age 20-

25 starting to discover and develop tastes in alcohol, primarily single women

• Adults 26-40 refining their tastes and interested in broadening their palates, primarily couples

• Corporate clients giving seasonal gifts

Supply-Side• Smaller (by

region, product line, and/or brand awareness) producers seeking new customers

Resources• Supplier /

Breweries• Flavor Specialists /

Professional Tasters to suit flavors to the theme of every season/month

• Bottling and packaging designers

• Order and payment collection system

Channels• Website / app / social

media• Seasonal / theme

events• Email marketing /

newsletter• Industry publication

and sponsorship• Direct sales to

suppliers

Costs• Shipping (requiring 21+ signature)• Licensing fees (by state and alcohol class type)• Alcohol product and accompaniments• Packaging (materials and labor)• Shopify / Cratejoy memberships

Revenue Streams• Monthly / Annual subscription• One-time box purchases• One-time full-size purchases (% of sale)• Payments from producers (monetary or in-kind)

Business Canvas – Day One

BOTTLEBOX – PETAL DIAGRAM

Reta

il Liqu

or

Stor

es

Beer / Wine Clubs

On-Demand

Liquor Delivery

Subsc

riptio

n Boxe

sBrand

Management

Firms

BottleBox

TYPE OF BUSINESSPhysical Product /

Service Resegmented Market

Two-Sided Market

MARKET SIZE

TAM – 44.9M

SAM – 1.4MTarget

Market – 394k

• 319M Americans• 25% over 21• 56.4% drank alcohol in

the past month

• 8.4M New Yorkers

• 1/3 of customers contacted so far would buy service in some form

Average Spend

Churn Ratex Orders

per Yearx = Revenue

Potential

$40 (1 - 75%)

x 6x = $23.6M

Partners• Bartenders• Craft




• Warehouse space providers



• Airline operators - our monthly updated collection for in flight consumption



• Bar tools suppliers such as bottle openers, glasses etc.

Activities• Licensing• Packaging &





relationship

Value PropositionBox-Side• Discovery platform

for new and exciting alcohols (beer, wines, spirits, etc.) from small-batch producers unavailable in most major markets

• “Try before you buy” – ability to sample new products and then purchase full-size

• Curated packages based on your preferences







service• Rating and

recommendations• Discounts / loyalty

programs• Loyalty rewards (wine

tastings, trip to winery / distillery (e.g., Napa Valley, etc.)

Grow:• Expand customer base


• Geographic expansion (supplier and customer reach)

Customer SegmentsBox-Side• Women 25-35,

single, box fanatics, medium incomes, wine lovers but interested in learning more

• Married or co-habituating adults 30-40, higher incomes, like exploring and giving gifts

• Corporate clients giving seasonal gifts



Resources• Regulatory

Agencies• Supplier /





Channels• Bartenders• Website / app / social





suppliers

Costs• Shipping (requiring 21+ signature)• Licensing fees (by state and alcohol class type)• Alcohol product and accompaniments• Packaging (materials and labor)• Shopify / Cratejoy memberships

Revenue Streams• One-time sample box purchases• One-time full-size purchases (% of sale)• Payments from producers (monetary or in-kind)

BUSINESS MODEL CANVAS – DAY TWO

CUSTOMER SEGMENTS

Female, single, 25-35, “box

fanatic”, primarily wine drinker, driven

by learning new things and

doing things with friends

Betty Box

Couples or co-habitants, 30-40, wine and

spirits drinkers, driven by

discovering new things,

likes giving fun gifts

The Jones’

Male, single or married, 20-

40, single alcohol fan,

likes getting a deeper

knowledge of what he likes and giving fun

gifts

Whiskey Will









• Liquor stores






relationship



• Monthly: Box that highlights one alcohol that comes with everything you need to make a cocktail with it, plus recipes to make more

• Whenever you want: Sample box of alcohols around a theme (e.g. whiskey)









programs• Loyalty rewards Grow:• Expand customer base


• Geographic expansion• Suggested recipes




• Males 20-40, single liquor fans, like trying more of what they like and giving gifts














suppliers

Costs• Shipping (requiring 21+ signature)• Licensing fees (by state and alcohol class type)• Alcohol product and accompaniments• Packaging (materials, additions, and labor)• Shopify / Cratejoy memberships

Revenue Streams• Ongoing monthly highlight box• One-time sample box purchases• One-time full-size purchases (% of sale)• Payments from producers (monetary or in-kind)

BUSINESS MODEL CANVAS – DAY THREE

TOP BOXES

VALUE PROPOSITION

Betty

Box • “Try before I

buy”• Curated

collections of things I like

• Easy, delivered right to me

• Recipe cards and everything I need to make it

• Like opening a present every month

The

Jone

s’ • Discover new and interesting things

• Enjoy feeling cultured

• Get something I can’t find anywhere else

• Great gift

Whi

skey

Will • Get things I like

based on my preferences

• Broaden my knowledge

• Learn about new, cool products

• Great gift









• Distributors / Wholesalers






relationship





• Gift optionsSupply-Side• Broadened


• Revenue stream for distributor


Advertising• Promotional samples • Special events (launch






• Geographic expansion






region, product line, and/or brand awareness) producers seeking new customers; who have the ability / appetite to bottle / ship










newsletter• Direct sales to

suppliers

Costs• Shipping (requiring 21+ signature)• Licensing fees (by state and alcohol class type)• Alcohol product and accompaniments• Packaging (materials, additions, and labor)• Shopify / Cratejoy memberships

Revenue Streams• Ongoing monthly highlight box• One-time sample box purchases, with gifting options• One-time full-size purchases (% of sale)• Payments from producers (monetary or in-kind)

BUSINESS MODEL CANVAS – DAY FOUR

Producers• Wineries• Breweries• Distilleries

Wholesalers

• Distributors

• Importers• Control

Boards

Retailers• On-

premise• Off-

premise

Consumers

THREE TIER SYSTEM

BottleBox









• Distributors / Wholesalers

• Third party fulfillment companies?

Activities• Packaging &



• Logistics operations


relationship





• Gift optionsSupply-Side• Broadened


• Revenue stream for distributor


Advertising• Promotional samples • Special events (launch






• Geographic expansion






region, product line, and/or brand awareness) producers seeking new customers; who have the ability / appetite to bottle / ship

• Distributors / Wholesalers with wide brand portfolio

Resources• Supplier /








newsletter• Direct sales to

suppliers

Costs• Shipping (requiring 21+ signature)• Alcohol product and accompaniments• Packaging (materials, additions, and labor)• Shopify / Cratejoy memberships• Revenue share with distributors

Revenue Streams• Ongoing monthly highlight box• One-time sample box purchases, with gifting options• One-time full-size purchases (% of sale)• Payments from producers (monetary or in-kind), less cut

for distributors

BUSINESS MODEL CANVAS – DAY FIVE

WWW.BOTTLEBOX.CRATEJOY.COMVisit us on the web! Taking pre-orders now!

APPENDIX

PROPOSED EXPERIMENTS – ROUND 1

Experiment: Physical box showing Question: Would people buy our MVP box? How much would they pay? Pass/Fail Signal: Contact information for pre-order; price range

Experiment: Speak to bar owners Question: Would bars serve as partners / sales channel? What would they need to

get back? Pass/Fail Signal: Contact information

Experiment: Go to locations outside bars (e.g. Grand Central, barbershops) Question: Are there people who would still prefer a subscription model? Pass/Fail Signal: Contact information for pre-order

Experiment: Speak to more producers Question: Would producers give us free product? What would they need to get back? Pass/Fail Signal: Receiving free product

RESULTS OF EXPERIMENTS – ROUND 1 • Hypothesis: What constitutes an MVP? What price?• Experiments: Showed seven mock boxes in Uris• Results: People loved the boxes, two in particular,

~$20• Iterate: Show more people

Physical Box

Showing (MVP)

• Hypothesis: Liquor stores and bars will want to partner

• Experiments: Spoke to owners about partnership structures

• Results: Not a huge value prop for them, mostly a headache

• Iterate: Find other channel partners

Speak to Shop

Owners• Hypothesis: There’s a different segment that

doesn’t go out• Experiments: Set up in Grand Central and on

campus• Results: Found more of our target customer in

these places• Iterate: More table setups to talk to more targets

Go to Locations Besides

Bars


Experiment: More box showings with our most popular boxes Question: More validation of which target segments prefer which box,

and how much will they pay? Pass/Fail Signal: Ask for orders, make them choose one box

Experiment: Talk to liquor stores and bars Question: Do liquor stores or bars want to partner with us as a sales

channel? Pass/Fail Signal: Ask to talk to customers in the store, ask for term sheet

Experiment: Talk to producers Question: What sort of producers are attracted to our model? What

logistic capabilities do they already have vs. what do we need to supply? Pass/Fail Signal: Contact information for future sales

RESULTS OF EXPERIMENTS – ROUND 2

• Hypothesis: What constitutes an MVP? What price?

• Experiments: Showed seven mock boxes in Uris

• Results: People loved the boxes, two in particular, ~$20

• Iterate: Show more people

Physical Box

Showing (MVP)

• Hypothesis: Distributors and producers will want to partner

• Experiments: Spoke to owners about partnership structures

• Results: Very interested, but very concerned about logistics

• Iterate: Develop succinct value proposition & target producer type

Speak to Distributo

rs / Producer

s


Experiment: Talk to VC firms Question: What advice can we learn from experienced professionals? Pass/Fail Signal: Business cards / offers of investment

Experiment: Talk to competitors / online retailers Question: How do they handle the logistics of shipping? Pass/Fail Signal: Specific states they ship to

RESULTS OF EXPERIMENTS – ROUND 3

• Hypothesis: Experienced VCs will know common pitfalls

• Experiments: Speak with VC firms with similar investments

• Results: VC people are very busy• Iterate: Keep trying to call

Talk to VC

Firms• Hypothesis: Online retailers use

FedEx to ship• Experiments: Spoke to online

retailers and competitors• Results:• Iterate:

Talk to Online Retaile

rs

OTHER BOXES

BottleBoxTEAM MEMBERS

Avneet Singh

Carly Weil

Ethan Than

Ian Mak

Kaushik Tiwari

Phil Duong

Degree Program

MS in Management Science & Engineering

Executive MBA

Executive MBA

Executive MBA

BSEngineering Management Systems

MBA

LinkedIn /avneetsinghlinkedin

/carlyweil /ethan-than-81a0336

N/A /kaushikktiwari

/philongduong

SME? Yes Yes No No No YesTeam Role Designer /

HustlerHustler / Product Picker

Hustler Hustler Hacker / Product Picker

Product Picker

Anything interesting we should know?

Currently works part time to derive customer insights from Social Media

Currently works part time with a wine event company

Project management / quality background

Finance background, tech interest on the side

Took a year off to start a digital health startup

Founder of non-profit

OUR TEAM

bottle box columbia

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