c2 c finalpresentation
TRANSCRIPT
Kavya Desai Devon Chen Emmiliese von Clemm
Princeton University, Lean LaunchPad December 12, 2012
Initial Idea: DIY Cookie Cafe
• Warm, freshly baked cookies provide a sense of love
• Cupcakes recently experienced a boom in popularity; could cookies be next?
• Baking as bonding and entertainment for family and friends
• Assumptions- People appreciate:• Dessert, more specifically cookies• No mess/cleanup• Customization
Initial Canvas
Feedback: Customer Interviews • Tested various value
propositions through conversations and surveys: • Baking as an activity: families
with children are somewhat interested, but low among other groups
• Hassle free, no mess: not as highly valued as expected; many consider the trip to be a hassle
• Customization: Customers got really excited about customization!
Trip to NYC• Explored dessert scene in NYC and learned about their business models• Learned about cupcake trend• Branding, individual portions, atmosphere, focus• Georgetown Cupcakes, Baked by Melissa, Levain Bakery, Insomnia
Cookies, Rice to Riches, Molly’s Cupcakes, Babycakes
Pivot: Customizable Cookies
Step 2: Pick Mix-Ins• Milk Chocolate Chunks• Dark Chocolate Chunks• White Chocolate Chunks• Butterscotch Chips• Macadamia Nuts• Reese’s PB Cups• Dried Coconut• Potato Chips• M&Ms• Craisins• Twix• Pretzels
Step 3: Pick Toppings• Nutella• Caramel Drizzle
Step 1: Pick a dough• Original• Double Chocolate• Peanut Butter• Oatmeal
Halfway Canvas
Key Interview: Loren Brill• Founder of Sweet Loren’s• Product: All-natural, frozen,
ready-to-bake cookie dough and brownie batter that contains the finest unrefined ingredients
• Target Audience: Upscale grocery store customers
• Insights:• Her customer discovery process
and pivots • Co-packers• Simplicity of break and bake
dough• A need for packaging that jumps
off a shelf
MVP: Website• Testing: Web Channel• Allowed for online ordering• Results: • Limited programming
experience/time prevented us from having a more trustworthy looking site
• Had trouble getting people to pre-order cookies for our Demo Event
• Moving forward, a more interactive online ordering process is key
MVP: Demo Day• Testing: Physical Channel• TapRoom Café, Campus Club• 8 hours long• 130 cookies sold• $145 in profits • Price: $2.50 per cookie
• Positive feedback on customizability, deliciousness of cookies
• Negative feedback on wait-time• Complicated operations
Key Interview: Modern Cookie Co.• Failed customizable cookie
business in northern California
• Insights:• Conveyer belt oven• Minimizing wait time is
critical • High foot-traffic location is
necessary • Barriers to marketing
cookies as “healthy”• Need for consistency in
product offered
AB Testing• Tested different value props through 4 campaigns• Facebook Ads• Google AdWords• Splash pages
• Indicates out customer acquisition costs will be high• Low click through rate for all• High cost per click• Very few sign ups
• 251 page visits to 4 pages between Google & FB Ads• Caveats:• Customizable cookies are a new concept• Very low word count: other methods may be more effective
AB Testing: AdvertisingCampaig
n1 2 3 4
Company Name
Cookies to Crumbs
Cookies to
Crumbs
Cookies to Crumbs
(Crowdsourced)
The Cookie Laboratory
Order Size Min
2 Dozen ½ Dozen 1 Cookie 1 Cookie
CTR .25% .22% .28% .26%CPC $.52 $.42 $.41 $.52
Campaign 1 2 3 4
Advertising Angle
Holiday Convenience
Customizability The Cookie Laboratory
CTR .0063% .0043% .0049% .0073%
CPC $.81 $1.27 $1.01 $.79
Cost Analysis: Summary• Prices:• Retail: $3/single cookie, $16/half-dozen, $30/dozen, $1.50/milk• Web-based: $30/dozen (+$5 shipping), $50/2dozen (+$8
shipping)• Breakevens: Year 1 / Future Years
CHANNEL SINGLE COOKIES
½ DOZENS DOZENS GLASSES OF MILK
DOZENS (WEB)
2DOZENS (WEB)
Retail Only 100 / 95 12 / 10 6 / 5 50 / 48 - -Web Only - - - - 25 / 16 8 / 2Web w/Partner
- - - - 16 / 12 8 / 6
Retail & Web
85 / 77 9 / 7 4 / 3 44 / 36 16 / 11 6 / 4
Cost Analysis: Highlights• Human Labor: • Web Developer ($10,000 retail vs $50,000 web)• Employees ($85,000)• Insurance ($7,200)
• Major fixed costs:• Utilities ($7,800 retail vs $10,000 web vs $16,000 both)• Commercial ovens ($2,000 retail vs $10,000 web)• Freezers & Fridges ($3400 retail vs $5,200 web)
• Variable Costs:• $0.98 per cookie (retail), $0.33 per glass milk, $1.30-$1.58 per
cookie (web)
Key Activities
Customer FlowCustomer
Places Order Online
Receive & Organize Order
Customer Orders in
Person
Mix Dough with Mix-Ins
Bake
Cool and Package
Notify Customer for pick-upDelivery
Service
Shipping
Revenue Flow
Customers
Suppliers of Mix-Ins, Beverages,
Delivery Service(i.e. Seamless)
Pay for CookiesServes
Cookies
Pay for Delivery
Pay for Ingredients
Co-packer
Overheads (Utilities, Rent, Salaries, etc.)
Pay for Doughs
Shipping Company
Pay for Shipping
Most Recent Canvas
Is this a Business?
• Great potential: Overall concept, customer interest, value propositions, and partner possibilities
• Considerable hurdles: High start-up and fixed costs, wait-time in retail channel, driving web traffic
• YES, this is a business. Roll-out needs to be strategic though.
Is this a Business?• Start web-based with a baking facility partner
• Cut major costs of rent and equipment• Focus on developing a marketing campaign, branding, and a great
site for sales• Move into a retail location that doubles as a processing facility
• Split time between operating physical channel and web channel out of the same location
• Use pre-existing website to facilitate sales• Both channels can grow off each other in terms of building brand
• Depending on performance, invest more in web, retail, or both.• If web channel is overflowing with orders, invest in processing
facilities and hire more employees to fulfill orders• If retail location is building popularity, consider franchising into
similar locations, malls, etc
Moving Forward: Next StepsImmediate:• Establish critical partnerships• Baking facility to use in part-time for web channel• Co-Packer
• Build a fully functional, aesthetically pleasing website• Online ordering capabilities
Next Steps:• Explore different levels
of customizability- crowd-sourced “cookie of the month” flavors
• Build a mobile app