1. Lunch Proposal Section 303 Team 8 Amelia Chappell, Susmita Das, Dustin Harris, Karen Ottoni, Neena Vasavan

2. Research Objective The Question Are consumers interested and willing to pay for a lunch option from Blue Apron. If so, what attributes should be included in the offering? The Analysis Quantitative Tools: Conjoint analysis Chi square test Market sizing / simulated test market Qualitative: Social media listening 6 individual interviews Qualtrics Survey: 17 Questions 61 Responses 2

3. Key Findings – Qualitative Research Customer sentiment analysis showed generally positive association with Blue Apron. Interviews suggested some interest in Blue Apron lunches, but few spend much time preparing lunch. 3 If it takes more than 5 minutes I won’t do it, so I just need lunch to just throw in a Tupperware I take homemade lunches four times a week It would be more of a nuisance to make a lunch only meal Yeah, I’m always interested in new food in general

4. Survey Highlights (1 of 2) 87% of respondents agree that lunch is an important meal Most respondents make lunch 1 or more times per week Consumers care about their lunch, which we believe is important for them to be open to a Blue Apron lunch offering. They are already making their lunch, so this would not require a change in habit. 4

5. Survey Highlights (1 of 2) 92% of respondents spend 15 minutes or less preparing lunch 75% of consumers cited time as one reason why they sometimes don’t make lunch However, consumers don’t spend much time preparing lunch. Additionally, time is a key reason why consumers sometimes choose not to make lunch. 5

6. Key Findings – Conjoint Analysis Price and recipe type are the most important variables for consumers. 6 ***Winning Profiles*** Hot meal, 3 meals/week, 2 servings/meal, $6 per serving Salad, 3 meals/week, 2 servings/meal, $6 per serving ***Winning Profiles*** Hot meal, 3 meals/week, 2 servings/meal, $6 per serving Salad, 3 meals/week, 2 servings/meal, $6 per serving

7. Key Findings – Simulated Test Market This test was done to estimate potential revenue for a Blue Apron lunch offering. Based on the results of this test, we estimated annual revenue of $68.6 M with min. $26.5M from sensitivity testing. 7

8. Key Findings – Chi Square Analysis Chi-square Test of Independence – We performed this test to determine whether there is a relationship between time consumers take to prepare lunch and likelihood of purchase. Results indicate no relation as p-value > 0.05 8

9. Recommendation Launch a lunch option! Why? – Survey shows some interest in a Blue Apron lunch offering – Market sizing shows strong revenue potential What Kind? – Hot meal or salad, 3 meals/week, 2 servings/meal, $6 per serving Next Steps – Large scale survey – Cost analysis to ensure feasibility – Pilot test with current customer base 9

10. Questions? 10

11. Appendix 11

12. Survey – Demographic Highlights 12

13. Market Sizing – Key Assumptions 13 The awareness amongst the non-customers about lunch meals service is 0%. The calculations are done on the basis of weekly purchases. ACV = 100% 33% of the existing customers would make repeat purchases. The repeat and trial unit sales would be derived by making use of the following combination of attributes: 3 meals/week 2 servings/meal Repeat occasions = 10 (Out of 52 weeks in a year, customers would make repeat purchases on 10 weeks)