CORPORATE DELIVERY OF ORGANIC SNACKS$3B RESGEMENTED MARKET

[ Andre ]

[JingShu]

[ Michael ]

[YiXin]

[ Sales, Design, Hacking ]

[ Sales, Design, PM ]

[ Sales, Biz. modeling ]

[ Sales, Research ]

OH MY LEANLAUNCHPAD!

-

• Problem:

It’s difficult to manage purchasing and estimate need of snacks for employees/students

• Need:

A reliable and efficient way to order snacks for healthy, happy, productive employees and students

Access to new and differentiated brands with most being socially responsible brands (CSR benefit)

• Progressive universities o Payer

Archetype: Dining services director, Coach for sport teams, Professors

o User: employee/students

• Fortune 2000o Payer

Archetype: Cafeteria supplies person, HR director

o User: employee

• Direct sales• Web sales• Channel partners

like catering service companies

• Initial sale through field sales force and occasional check ins

• Personal assistance via support staff

• Recurring subscription through sale of snacks [Retail Price – company volume discount (0-20%)]Est. that we get about 30% of retail price as margin

• Subscription fee for value added services later on

• Fixedo Field Sales & Biz devo Development cost

• Economies of scale / variable: o Working capital: snacks with average 40%

of revenueo Handling costs via 3PL

• Financial: Working capital

• IP: snack and nutrition selection

• Human: Field sales force, Developers, Biz dev (channel partners)

• Curate & discover snacks to offer best tasting with best nutrition facts

• Tech – design and dev of ecommerce system (Spree)

• Logistics - Shipping and warehousing

Channel / Sales:• Catering service

companies like Bon Appetite

• NGOs who are battling obesity and GMOs

Supply:• Snack

manufacturers• Trade Shows

Technology / scale:• Ecommerce, cloud

support tools• 3PL (third party

logistics) company

We tried to figure out who our customers would be

Universities• There are a relatively limited number of universities• Most universities need to resell their snacks to price-sensitive students

Cafes/Stores• Smaller cafes wanted new healthy snack providers• Health-focused cafes were most interested, and have become repeat customers

Companies• Companies complained that snack choosing and ordering is laborious• Unpacking snacks is also a waste of time• Gauging employee preferences is difficult• There are many companies who want to provide free snacks to employees

We tested the model by interviewing university cafeteria managers, café and store managers and company office manager

Quality ofopportunity

End buyers

Resellers

OMG’s value chain

Food ingredient producers

Snack manuf-acturers

Companies w/out

catering

Distributors Retail End consumers

Packaging producers

% retail

Retail cost ($)Dang coconut

Example firms

17% 33% 39% 100%80%

0.50 1.00 1.17 2.992.40

Cafes

Universities

THE CUSTOMEREmployees

HappinessManager

Office Manager or CEO, CFO

Employees who are

health conscious

Employees & community

Employeeswho love

unhealthy snacks

• No catering service or distributor

• Tends to be female• In their 30s• Less tech savvy• Strong social network

• Tends to order from

Safeway or Costco• Purchasing is 10-15%

of their job• Reacts to employee

feedback

BUSINESS MODEL CANVAS 2

SALES CHANEL

Direct sales/Events

Catering ServiceDistribution Company

Health focused institutions

CustomersWeb

sales/Adwords

Telesales/Sampling

Cost OverviewExperiment

Direct salesWeb

sales/Adwords

Telesales/Sampling

Channels

Yes, Personal touch High Important customers

Yes Medium (under test) Viable through optimization

Yes Medium Under test (conversion rate)

Yes Low (institutions); Must have Revenue share 5% (distribution)

Business model canvas 3

What we did – more sales

Sampling & drop offs

Targeting multi locations & reordering

Partnerships

First order acquisition test• About 40 drop offs• No conversions yet after 1 week• Further experiment built on it (follow ups)

Subscription & sales scaling test• Director of global operations: stealth• Free newly discovered samples: Silver lake• Reordering: Apple, Yammer, Harvard,

Stanford, Sprout, Playphone

Channel sales & cross selling test• Online marketplace: Channel & delivery 5-

10% commission• Courier & shipping companies: $15/drop• Snack vendors: Philz coffee

What we found

3pm snacks • Core business: Branding & bonding• Trojan horse: upselling to breakfast, coffee etc.• Employee productivity research

Employee engagement

platform

• Point system: feedback loop• Data & analytics: software• Defensibility: employee relationships with

upselling and marketing opportunities

Business model canvas 4

18.9 18.9 19.1

17.4 17.4 17.5

11.3 11.3 11.45.1 5.44.5 4.9 5.03.2 3.5 3.71.5 1.7 1.8

Baked GoodsSweet and Savoury SnacksDrinking Milk ProductsBottled WaterJuiceSports and Energy DrinksBiscuits

RTD Coffee

Breakfast CerealsYoghurt and Sour Milk ProductsHealthy Sweet and Savoury SnacksSnack BarsHealthy Snack BarsRTD TeaMeal Replacement

13

220.2

49.8

36.2

18.1

15.613.8

8.57.5

6.65.7

12

213.7

48.6

34.5

17.8

15.113.4

8.07.1

6.3

2011

206.2

47.4

32.9

16.8

13.813.2

7.66.7 6.0

USA IS $220B SNACK MARKET$14B IN HEALTHY SNACKS

9% CAGR

TROJAN HORSE GROWTH STRATEGY

3PM SNACKS FOR TECH COMPANIES

OFFERS

PRODUCTS

SEGMENTS

CONSUMER

TECH: EMPLOYEEENGAGEMENT

9AM

EVENTS

FAMILY DELIVERY

KIDS BOX

CAFES

GYMS

GIFTSSPORT TEAMS

BIOTECH

COFFEE

WATERFRUIT

STATIONARY

MEETINGS

GEOGRAPHY

USA INTERNATIONAL

CUSTOMERS SINCE JANUARY

REPEAT IMPLEMENTING PIPELINE

+ New Channels

INVESTMENT READINESS

7.5