new product development project - meal kit

Pure creations

Data Analysis• Consumers are leading busier

lives• Australian household sizes are

changing• The way people consumer

and view food is changing

Data Analysis

Data Analysis

Primary Target Segment• Women with high

incomes• High Career

aspirations • Highly Educated • Highly likely to buy!

Key Insights• 2.6 million Women aged 24-

34 Australia wide • Healthy needs to be

convenient• Dietary requirements • Inordinately time poor• Flavour seekers • Combo benefits

Persona – Primary customer

Persona – Primary customer

Positioning Map

Unique Selling Proposition• Australian grown organic ingredients• Uses new dehydrating technology• Range of flavours• Convenience and stress free• All ingredients• Allows input• Minimal preparation and cooking time

Product AttributesSize: Single - two serve packet Packaging: 100% recyclable with tear function at the top

Manufacturing process: Individual ingredients will be packaged in a vacuumed sealed biodegradable packet Price: Value-based pricing strategy $12.95 for three SKUs

Product Packaging/Design

Product BenefitsPrice value: Cost effective Convenience value: Pre-sliced, cut, and crushed ingredients, easy to follow process and contains all ingredients (excluding meat)

Sense value: Viewing window, ingredient entices the taste senses

Emotional value: Stress-free, easy alternative, experience new cuisines

Confidence value: Confidence in health and dietary requirements

Self-expansion value: Indulge in home cooking, expand on recipe

Competitive AdvantageAll in one: Our kit offers both organic and no-artificial-preservative ingredients• Caters to a variety of dietary

requirements such as GF and DF

Exotic flavours and cuisines: Focus on developing ethnic meals that are considered “hard to prepare”.

Financial Business CaseVolume (tonnes) (Year 1) 2016 (Year 2) 2017

Total ready meal market

(Source: Passport 2014)111,508.78 114,046.81

% Awareness 30% 40%% Trial 10% 15%% Availability 20% 30%% Repeat purchase 15% 15%Meal kit Sales 100 308     

Volume (kits)    

Meal kits

701,481

(692,481 for sales

9,000 samples)

2,160,561

(2,145,561 for sales

15,000 samples)2016 2017

Total meal kit revenue 5,223,615 16,184,682Revenue from Machine leasing 790,000 1,580,000Total Revenue ($) 6,013,615 17,764,682

Dri-it MACHINE 1,610,800 4,191,264 COGS 3,706,158 11,414,965Warehouse (1,200/week) 57,600 57,600

DISTRIBUTION 1,000,000 1,500,000

MARKETING 100,000 300,000Total Cost ($) 6,474,558 17,463,829 Profit (460,943) 300,853

COST OF GOODS SOLD

Spaghetti Bolognese($)

Chinese Sweet and Sour ($)

Indian Curry($)

Ingredients 3.49 3.32 3.26

Package 1.56 1.56 1.56

Labour 0.37 0.37 0.37

Total COGS per unit 5.41 5.25 5.19

Price for retailer/gym (30% margin)

7.73 7.49 7.41

PRICE FOR END-USER (40% margin)

12.89 12.49 12.35

RPP 12.95    

All-in-one Exotic flavours & cuisines

Financial Business Case Pre-launch L Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Sales 346 1,039 1,039 7,963 17,312 27,699 34,624 41,549 48,474 55,398 69,248 76,173 83,098 103,872 124,647

Awareness 10% 30% 60%

Trial 5% 20% 50%

Availability 10% 20% 40%

Apr

May Jun Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May Jun

Pre-launch L

0

20000

40000

60000

80000

100000

120000

140000

Monthly Sales Forecast

Sales

Melbourne regions

159,240 target customers

CommercialisationProduct Launch - Guerrilla marketing• Cost effective• Drives Trial• Be where our targets are

Launch Events:• Queen Victoria Market Night • Launch Male Delivery to CBD Offices • Train Stations pop up• Sarah Todd competition (cooks for friends)

Communication StrategyChannels:• Social media: Facebook, Instagram YouTube,

Website

• PR- : Blogs, Brand Endorser, Word of Mouth, Events

Adoption Factors:Relative advantageCompatibilityTrialability Observability/ VisibilityComplexity

One Year PlanMain Objectives:

Pre-launch (April – June 2016)• To prepare for the successful launch of Pure Creations in July 2016• To create visibility for Pure Creations: products begin to appear at POP

July - August 2016• Launch • To raise brand awareness of Pure Creations to

30% • To encourage 5% of the target market to try the products

August 2016 - June 2017• To raise brand awareness of Pure Creations to 60% • To raise brand preference to 40% of target • market• To increase trialability by 10% for the target • market • To attain 15% of repeat purchase

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May JunSales 346 1,039 1,039 7,963 17,312 27,699 34,624 41,549 48,474 55,398 69,248 76,173 83,098 103,872 124,647

ImplicationsThe Power Women 24-34 want this product!

Product fills a gap Product is not easily

replicatedBelow the line -high

engagementNeeds met and some