Launch or No Lunch? SARAH MARTIN, MICKEY MESKIN, MARK HAMMER, PEILA ZHONG, NIKI MADA

Agenda 1.Objective 2.Process 3.Key Learnings 4.Research Proposal 5.Recommendations

Objective Should Blue Apron create a lunch offering of their popular meal kit delivery service? o Who would be interested in a lunch meal kit service? o How big a share of this segment could Blue Apron capture? o What would those revenues look like? o Launch or no lunch? There appears to be a market for a lunch meal kit service but it would be best to pursue the market under a different name than Blue Apron.

Process Over ten 1-on-1 interviews and a focus group with potential users o Limited time for preparation o Concerns about nutrition o Portion control o Tension in the desire for high quality meals at an affordable price. o Identified possible segmentation characteristics which later informed our survey development Thread analysis o Preparation segments: full week preppers, morning of, night before, leftovers, buy lunch o What would their ideal Blue Apron lunch service look like for each group o Use survey to understand their behaviors, values, interest, and willingness to pay

Process Social Media Listening Overall sentiment toward Blue Apron is largely positive and service is already being used for lunch by some

Process Survey - Identify behavioral segments, preferences, and identify best segment for Blue Apron o Respondents rated convenience as the most important attribute of their current lunch and price as the second most important attribute o Respondents rated price as the most important attribute when considering a Blue Apron lunch service and convenience as the second most important attribute

Process Survey - Identify behavioral segments, preferences, and identify best segment for Blue Apron o Respondents were willing to pay $7.22 for their current lunch vs $7.88 for their ideal lunch kit

Attribute Map - Lunch Premium Budget Convenient Inconvenient

Key Learnings Hypothesis: There is a market for a lunch service but the Blue Apron brand name with its current value proposition is not best positioned to serve this market o Blue Apron dinners represent sophistication, experience, relative convenience, and quality o Lunch eaters care most about price and convenience and are not seeking sophistication or an experience o Research suggests a desire for a meal that is very simple to assemble, nutritious, and priced below $8 If Blue Apron wants to sell to this market they should create a sub-brand to protect their main brand’s equity

Additional Research & Recommendation Should Blue Apron choose to develop a lunch offering we’d suggest evaluating the concept as a sub-brand and we’d recommend the following research o Additional survey to better understand needs of “premium-lite + convenient” lunch eaters o Conjoint analysis to determine ideal lunch offering o BASES to evaluate revenue potential of the lunch offering 1-on-1’s Survey Focus Group Social MediaAnalysis Segmentation Hypothesis Survey/Conjoint/BASES