1. Blue Apron Recommendations
Market Intelligence, 2/29/2016, Section 303. Team 5.
Valerie Jefferies
Srikanth Pulavarthy
Idris Dosunmu
Maria Peverelli

2. Executive Summary
Launch new line of low-carb at a premium of $2, giving customers the opportunity of de-selecting unwanted ingredients.
Direct marketing efforts at female customer segment as they are more likely to purchase the new product line
Market intelligence techniques used:
Focus Group Discussions (2)
One-on-one interviews (5)
Surveys (53 respondents)
Conjoint Analysis to determine most preferred product profile
Interaction Effect to determine segmentation and targeting
Section: 303, Team: 5, Jefferies, Pulavarthy, Dosunmu, Peverelli

3. Exploratory Research Exploratory research Focus Group Discussions
One-on-one interviews
User types
Takeout master
Picky eater
Avid cook
Hypothesis: The perceived benefit that Blue Apron meals could be tailored towards specific dietary preferences is larger for the picky eater user type and is in less competition with eating out and traditional cooking than it is with takeout master and avid cooker user types. Therefore, Blue Apron should target picky eaters for this new line of meals.
Section: 303, Team: 5, Jefferies, Pulavarthy, Dosunmu, Peverelli

4. Survey Design
Main objective: test potential new profiles as well as already existing Blue Apron’s offer to determine customers’ preference for a new line.
Analysis performed:
Conjoint analysis and determine the part worths of each attribute level as well as the most important attribute for customers.
Interaction Analysis to determine potential tactical segmentation opportunities
Section: 303, Team: 5, Jefferies, Pulavarthy, Dosunmu, Peverelli

5. Survey Results
Tactical Segmentation Analysis: Understand if the willingness to try a new line was related to other information we had on potential customers that could lead to potential segmentation.
Willingness to try new product line
YES NO
Difference
Female 13 7 6
Male 11 22
-11
6-(--11)=17
Willingness to try new product line
YES NO
Difference
Knew Blue Apron 14 18 4
Did not know blue Apron 10 11 1
4-1=3
Conclusion: Gender has a greater interaction with willingness to try a new line than whether the customer was acquainted with the Blue Apron brand or not.
Actionable Recommendation: In case a new line is decided to be launched marketing effort can be directed to females as they are more likely to purchase a new line.
Section: 303, Team: 5, Jefferies, Pulavarthy, Dosunmu, Peverelli

6. Conjoint Analysis
Design: We used the rating from the survey which included three attributes with three levels each.
Most important attribute
Status quo Utility=0
Most preferred profile: Low-carb, selective ingredients, $9 Utility=0.87
Higher willingness to pay profile: Low-carb, selective ingredients, $11 Utility=0.28
Recommendation: Launch new line of low-carb at a premium of $2, giving customers the opportunity of de-selecting unwanted ingredients.
Section: 303, Team: 5, Jefferies, Pulavarthy, Dosunmu, Peverelli

7. Research Limitations
Exploratory research conducted mainly with Fuqua student groups. Insights could have been different if other groups were tried.
Survey results came from a non randomly selected sample. Although respondents were looked for outside of the Fuqua community they were still within the team’s social circle.
Conjoint analysis shows a preference for a low-carb menu. Further research should be done regarding cost of launching this new line versus potential actual new customers and change in market share.
Section: 303, Team: 5, Jefferies, Pulavarthy, Dosunmu, Peverelli