Blue Apron Presentation
CHALLENGE
Facing increased competition in a saturated and evolving meal kit delivery service industry, Blue Apron needs to differentiate from the competition and create brand loyalty.
STRATEGY
Through a five forces analysis and analysis of the meal kit delivery industry, Blue Apron financial data, and customer surveys, I, and two colleagues from the Duquesne University MGMT 540 class, developed three ideas: targeting niche markets, including fad, lifestyle, religious, and medical diets; creating a food science division to create new, unique recipes; and developing sauce and spice kits, a new product to better address the wants and needs of customers. The group decided to evaluate the feasibility of spice and sauce kits.
RESULTS
In a 2018 customer survey, 59 percent of respondents found “deciding what to make” or “finding the time to cook” to be the hardest part about cooking. The spice and sauce kits, branded as Blue Apron Blends, answer the dreaded question “What’s for dinner?” and include recipe suggestions to improve efficiency in the kitchen. The idea introduces the Blue Apron brand at a lower price point and with no commitment. Additionally, Blue Apron Blends allows customers to pick the protein and produce based on preferences and needs. After a test launch in a major metropolitan area, the group projected Blue Apron Blends to capture 10 percent of the meal kit delivery industry market and create profit margins as high as 95 percent or as low as 15 percent.
Jacob Betzner 