1. “Blue Apron Custom” For Specific Dietary Restrictions
March 1, 2016
Kanaka Balasabapathi, Yalli Canaani, Karthik Yedu Kumar, Bryan Reisch, Jia Wen Teo

2. Recommendation
Blue Apron should expand a custom product line for low calorie meal options, or potentially halal meal options, to capture a new market.
The decision will depend on the variable costs for each meal.
Less than a $5.00 cost per meal, a low calorie line is the most profitable option.
More than a $5.00 cost per meal, a low calorie line and a halal line are equally profitable options.

3. Exploratory Research
One-on-one interviews with 5 people with dietary restrictions
Laddering Technique
Gain understanding
Important attributes they have for meals
Existing habits and their willingness to change
Segments likely to become a Blue Apron Custom customer
Insights
There is a wider range of dietary restrictions that we should consider
Hypothesis
Consumers that had the most difficulty find meals that met their dietary restriction will have the highest willingness to pay for a Blue Apron Custom meal.

4. Quantitative Research
Conducted survey with 68 participants, 41 of which reported at least one dietary restriction
Backwards market research
What new product line would be most profitable?
Which has the largest customer segment?
Which has the highest willingness to pay?
Questions centered on:
Dietary restriction prevalence
Perception and interest in Blue Apron
Likeliness of changing existing eating habits
Demographic information for potential segmentation

5. Survey and Results Most prevalent dietary restrictions
Low carbohydrates (16%)
Low calorie (16%)
Vegetarian (12%)
Willingness to pay
Wide distribution
Clusters around moderate prices (~$10) and high prices (~$20)
Halal customers had highest average

6. Additional Tools: Perceptual Map

7. Additional Tools: Analysis of Preferences
Prepare dinner at home
Eat dinner at a restaurant
Take out dinner from a restaurant
Prepare dinner with Blue Apron or similar services
Prepare dinner with "Blue Apron Customized"
Choice Share – Current Offering
44%
33%
17% 6%
----
Forecasted Choice Share Blue Apron Custom Offering
25%
21% 3% 9%

8. Additional Tools: Disaggregate Choice Modelling
Variable Cost per Meal
New Product Line
Price Point
$0-$4
Low Calorie
$9.00
$5-$14
Low Calorie or Halal
$19.00
$15-$24
$24.00

9. Questions?