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Video
https://vimeo.com/50013301
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Executive Summary The jenuinĹ? project consists in the commercialisation of typical organic and biodynamic products through a web portal (social commerce) with a production model inspired by CSA (Community Supported Agriculture) made of two components: subscription and e-commerce.
The project relies on: 1. A target market (the organic) which is rapidly growing in Italy and all over the world. 2. No market leaders, highly fragmented market. 3. A proprietary technology able to customise the offer guaranteeing a unique experience to the customer. 4. A easily scalable project across the country and abroad without large fixed costs.
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Necessities / Eating healthy
Healthy eating is a paradigm shift in society, but rarely do people find the time to buy the food they want.
Each consumer has its own personal taste. Not everybody likes the same things,
New lifestyles are emerging such as the LOHAS (lifestyle of heath and sustainability), however it is difficult for such people to adopt such a lifestyle.
Farms are not driven to produce the best foods but rather the more profitable ones
* Global Lohas Research, Natural Marketing institute
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Reference Market / MAIN DYNAMICS
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LOHAS Consumers: ! Singles, couples and young families ! Age range 30 - 55 years ! Residing in urban areas ! High disposable income and medium-high education ! Interested in eating healthy and sensitive to the culinary traditions of their territory In Europe, according to the Natural Marketing Institute, the Lohas market is €260 billions and its growing. It is estimated that €40 billions are spent in Italy. Nielsen (1) defines "socially conscious consumer", the one who is willing to pay a premium price for products and services that are "socially responsible". ! Nielsen shows that younger consumers are more likely to spend more on products and services from socially conscious companies. ! Overall, about 1/3 of European and U.S. consumers are willing to pay a little more for products and services from companies that have implemented programs of social responsibility.
EVOLUTION OF DOMESTIC CONSUMPTION OF ORGANIC PACKAGED PRODUCTS
Sources:: ISMEA
PRICE SENSITIVITY
The LOHAS are a growing phenomenon in Italy where they represent about 15% of the market with a growth trend that will take them, in 2016, to about 30%. ! The Italians are more likely to purchase products and services related to sustainability than the average EU. ! 41% are willing to pay up to 20% more for sustainable products and 33% are willing to pay up to 20% more for organic products The food represents the 35.7% of total spending for families who live in urban centres With 48,509 farms, Italy is first in Europe for the number of organic farms !
> 1,100,000 hectares of land are planted with organic, almost 18.7% of the whole national agriculture surface.
Sources: The Global, Socially-Conscious Consumer March 2012 (1) NMI, http://nielsenfeaturedinsight.mag-news.it/nl/nielsen_link_2300.mn
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Sources:: LOHAS Consumer Trends Database, 2008, Natural Marketing Institute Nota: Q. 3GG, 53a -% Popolazione generale per paese che è d’accordo con le frasi sopra
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Main Competitors /
The market is highly fragmented, with no real market leader mainly due to the logistical difficulties these projects encounter in the expansion phase.
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Main LOCAL Competitors / OVERVIEW
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ZOLLE CASCINA CORNALE BIO EXPRESS PRIVATE & CONFIDENTIAL
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from 20 to 2200 subscribed families in 24 months word of mouth alone, no marketing €2.6 million turnover in 2010 The business model is based on subscription without direct sale of goods
4000 families subscribed Agricultural cooperative made of 80 small and medium-sized farms in Piedmont and high Liguria The business model is based both on subscriptionbased model and online supermarket €3 million turnover in 2010
4,500 regular customers A group of producers in South Tyrol dedicated to organic farming The business model is based on that of the supermarket online at a competitive price for the customer. €3.6 million turnover in 2010
KEY TAKEWAYS
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Community offline
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“best effort” approach No usability and no engagement on the website, few online activity
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Good service design
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No marketing Slow ability to innovate due to the co-op biz model
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Good Logistic distribution
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It’s more of an e-commerce Scarce usability of the website
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jenuinō / not a cold e-commerce The normal portals are: • Subscription based: the user receives the goods without the possibility to choose ! accumulation of unwanted products (best effort) • Pure E-commerce: the user selects its own products ! It's really comfortable doing it every week?
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jenuinō
searches time and energy.
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LOYALTY through its systems allowing users a way of life that could hardly have without great waste of
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jenuinō / Planet & Local
jenuinō Planet ltd jenuinō planet ltd is the holding company and is responsible for: • Organises the opening of new jenuinō Locals • Manages the brand • Coordinates branding and integrated marketing campaigns (web + territory) • Maintains and developing the IT platform in perpetual beta • Manages the relationship with the customer (B2C) • Creates commercial strategies on / offline
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jenuinō Local The jenuinō Local - third party companies opened with local partner city by city - are logistics and production centres,they are responsible for: • Manages production • Manages logistics • Manages commercial aspects • Manages quality control • Manages farms relationships • Manages client acquisition
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jenuinō / Strengths of the project A streamlined management system able to react quickly to changes in critical components of the market (demand, prices, etc. ..) and by offering a unique and flawless service.
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Through the IT platform of J we can customise the offer to the customer through an integrated system of products, services (online - offline) and networks in order to meet the expressed and unmet consumer needs.
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An Affiliation Program of customers based on common incentives, word of mouth and rebates, combined with commercial actions organised by Planet such as reverse auctions, group buyings events, (virtual and real) and trade agreements with other Internet operators (eg: Grow the Planet, Let's Lunch, Gnammo) looking to maximise customer loyalty and retention.
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Distributed model designed to grow and expand easily and quickly (jenuinō planet / local)
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Business characterised mainly by variable costs that does not require significant investments ex-ante
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Local produce for local markets - it allows to overcome the limitations of logistics and have a KM0 logic with a warehouse optimised byJIT (Just In Time) able to minimise stocks and annulling them for fresh produce such as fruits and vegetables
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Through the outsourcing of many of the activities and services to jenuinō Planet (in exchange of a 5% revenue share from local units) we allow Locals to have a small number of customers to break even.
MARKET
PSS DESIGN
AFFILIATION MEMBER GETS MEMBERS
INVESTIMENT
SCALABILITY
LOW INTENSITY CAPITAL
LOGISTICS
LOW BREAK EVEN
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jenuinō / Overview BUSINESS MODEL
The business model is divided into two main areas: ! Subscriptions - The production process involves the sale and distribution of local products grouped in one box called "basket" sold through an internet portal. ! The end customer subscribes and receives the basket at home, office or at a pick up location. ! E-commerce – Customers can purchase the products individually in the e-mporium section ! If the customer is subscribed, the extra product bought on the emporium is added to the basket without additional shipping costs, otherwise it will be shipped via courier The solution also provides the sale to the HoReCa (B2B) channel and the creation of jenuinō branded products ! The business is supported by a proprietary technology made of 3 elements: ! jenuinō portal: engagement and socialisation ! jenuinō management: support and coaching to the production process ! jenuinō brain (a machine learning for profiling intelligent collection of users with minimum number of parameters in the form of feedback to know users preferences and personal tastes; a proprietary adaptive system capable of automatically recognise, anticipate and perfect users’ tastes and behaviours offering a personalised, unique experience.
PROJECT
PRODUCT
TARGET AUDIENCE ! !
primary customers is composed of the so-called LOHAS secondary clientele includes: ! Young people under the age of 35, medium-high education, spending capacity lower than LOHAS but inclined to purchase organic products online ! Adults aged 50-65 years, with high spending power looking for quality food ! B2B -
IT
HoReCa to be developed in a second phase (Restaurants, Catering, Hospitals and Private Clinics, Schools)
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Proprietary Algorithm / j Brain, a unique, personalised service
A Artificial Intelligence, Machine Learning algorithm created through the integration of clustering techniques and supervised classification (neural networks, decision trees, svm). This artificial intelligence proprietary algorithm is capable of automatically recognise, anticipate and perfect users tastes offering a personalised, unique experience. The objective is to obtain an effective system for intelligent user profiling, with collection of a minimum number of parameters in the form of feedback to know his preferences and his personal tastes in order to provide acceptable products and targeted. The secondary objectives are:
• Analyze consumption • User profiling • Customize the advertising • Maximize the quality • Minimize the interaction • Develop an important asset for potential exits
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jenuinĹ? / The team
Giacomo Bracci, Fondatore
Stefano Martina, IT
Alex Giordano, CMO Tommaso Alberti, Design
Paolo Salza, CFO Roberto Zuccato, Advisor
Stefano Foglietta, CTO
Marco Visibelli, Advisor
Riccardo Grazioli, IT lead
Gianni Zocchi, Nutritionist
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jenuinō / Partners Media
Institutional
Academic
• Ninja Marketing • Viralbeat • Centro Studi Etnografia Digitale • Societing • Comunikafood
• Provincia di Grosseto • Camera di Commercio di Grosseto
• Luiss Guido Carli • Università di Urbino • Università di Salerno • Central Saint Martin’s (UK)
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Business plan of a Local Unit
The table below presents the results provided by a local; on the right we comment the main assumptions used for the projection. •The projection of customers starts with an assumption of 50
families at the beginning. With the cost structure expected, the number of customers to reach the break-even point is 150.
•The average price is has been the 56€ the first year and 79€ in the second one, with a price ranging from €49 euro (single box Vegetarian) to €139 (omnivorous box for 5 people);
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The proprietary algorithm allows the assemblage of baskets where the product cost is equal to 45% of the sale price, and it dynamically builds the boxes every week depending on the products available;
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The operating costs include the cost of transportation of raw materials from the collection points, the cost of delivery to customers' homes, the costs for the storage of raw materials and packaging;
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SG & A costs include fixed costs (utilities, cleaning, administration) and the cost of business promotion. Also in the first year of activities are also included expenses for the opening of the activity.
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The contract jenuinō Planet/Local is made of a 5% revenue share fee of sales in exchange of guide lines, agronomist, marketing, design, promotion services and IT support (the use of platform, management software and in the future, Jbrain).
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INFO Platform & Blog The platform is in beta: www.jenuino.com Blog -blog.jenuino.com
PROMO MATERIAL Video in English - https://vimeo.com/50013301
SOCIAL MEDIA PRESENCE Twitter - https://twitter.com/jenuinoo Facebook - https://www.facebook.com/jenuinoo?ref=hl Pinterest - www.pinterest.com/jenuino/ Google + - https://plus.google.com/116364231034677957465
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