Foopla Pitch Deck

INDEX

SHOP OWNERS IN COPENHAGEN

CUSTOMER SEGMENT IN COPENHAGEN

Introduction Future of Retail What is the service about

Knowing the shop owner Key �indings Personas: Identifying the shop owners Service approach curve

THE SERVICE

STAKEHOLDERS

BETA TEST

Customer journey What will we offer to the customers?

Basic service Premium service

Competitors Motivation matrix Business canvas

Prototype

Knowing our customer Key �indings Personas: Identifying the customers Service approach curve Service levels: Customers and the service

*PROJECT TIMELINE

The Future of Retail The majority of the small grocery stores in Copenhagen will close within the near future. This will have an impact on the community in several aspects.

Danish consumers are aware of food sustainability: in 2012 about 80% of Danes claimed to avoid wasting food and 70% claimed to prioritize seasonal fruits and vegetables. The supermarket chain Rema 1000 leads the �ield in social responsibility while other companies like Dansk Supermarked and Coop Danmark (the two dominating companies in the Danish retail market) are right behind it. In 2013 only 7 % of Danes preferred to shop online rather in the physical stores1 . The small independent grocers are up against huge competitors so in order to survive they need to distinguish themselves and offer the consumers something they cannot �ind in the mainstream supermarket chains - for instance unique imported products1.

Retailers in Denmark

Digitalization The digitalization of retail is growing rapidly, focusing mostly on three types of customer relations: 1) Interaction with customers.

2) Internal business process.

3) Interaction with suppliers.

Data collected through CRM is used to increase consumer loyalty and keep a track of customer data for example customer relations and transactions.

The related term big data has negative connotations attached to it but it aids companies in analyzing consumer behavior and methods in addressing customers making it possible to live up to high consumer demands2.

The customer/consumer The segment of customers utilizing the small grocery stores consists of consumers between the ages of 18-25, parental singles or couples and consumers with a household income of 700.000 kr. per year. However, currently only 4 pct. of all purchases of staple goods occur through e-trade – so many consumers prefer to do their grocery shopping in the physical store2. Although, the interest of online shopping of staple goods is expected to increase. 38 pct. of Danish consumers are reported to buy at least some of their produce online. Around half of the e-shoppers are motivated by the fact that they can place their order from home – the other half because they can get the order delivered. The general motivation is for e-shopping is convenience2, so if the customer expe-

riences any type of inconvenience the company might lose that customer forever.

However, for any purchase, physical or web-based, the price is always the main motivation: 32 pct. of the Danish consumers disclose that lowering the price on the products could persuade them into buying more of their groceries online2. Also, it’s worthy of note that the price of delivery is another big concern for the consumers.

On the other hand, the consumer’s interest in purchasing food over the internet continues to increase so over time the market will grow substantially. However, consumers will only shop for groceries online if the offer is right.

Also, the general consumer skepticism in Scandinavia could be a hindrance to growth.

Consequences The consequences of the increase of web-trade could be that the interest in physical shopping decreases alongside it and this could mean that the shops with no web-shop would lose revenue and perhaps in the end close their business.

The physical shops in the larger urban areas will have the highest chances of survival – however, the amount of shops in the less populated areas will experience a severe decrease2.

The economics of pickup can be substantially more attractive.

There are distinct consumer segments for pickup and delivery, so a mixed model is advisable.

Difference per model, best-case economics in high-density area with low labor cost. (€/order)

Users, %

Lessons learned · Trust and loyality is key. The service should depend on the loyal customer – not on the occasional one. · Customer density is everything*. · The consumer is not willing to pay more for their groceries in an e-grocer than in a normal supermarket. · Pick-up and delivery models will need to be continually improved, tested and innovated in order to succeed. · Replacing a product which is sold out can be challenging.

However, user technology can aid in offering the customer groceries tailored to his/her needs. · E-grocery is not copying supermarket into the internet. · The greatest challenge is changing consumer behavior.

Nonusers, % Avarage basket size

Home delivery

Pickup

Value-added tax Net sales Cost of inventories recogonized Gross margin Margin adjustments Adjusted gross margin Marketing France

Spain United Kingdom

France

Spain United Kingdom

Prefer delivery Either delivery or pickup is ok Prefer pickup

Complaints/calls/refunds Picking and handing Transport to end client Gard-payment fees

Assumes pricing based on typicall willingness to pay - which is much higher for delivery than pickup

Delivery fee Variable margin

* Customer density: Number of potential customers within a certain unit of land area.

The demand

Omnichannel alchemy

The availability of the sustainable and local produce is an important factor. In Germany you can get a map disclosing where in the country (or the world) the products come from. Whole Foods in the US has a program offering quality checks on local farms and products. The consumers demand more local products – but freshness, quality and price remain the most important factors for the consumers in America and many other western countries3.

Delivery is problematic and requires a lot of logistics, while click-and-collect is a cheaper and more convenient option for users and company alike.

Picking up the orders also makes it possible for the user to have a look in the physical store and extent the purchase if he or she wishes. Furthermore a good design can be a strong tool for creating customer loyalty and avoiding churn11. A positive experience is an important element for capturing occasional users and making them loyal.

1. Grocery Retailers in Denmark; Euromonitor International 2014; 2. Fremtidens Detailhandel; Konkurrence – og Forbrugerstyrrelsen 2014; 3. Ripe for Grocers – The Local Food Movement; A.T Kearney 2014; 4. The Way to Pro�itable Internet Grocery Retailing – Six Lessons Learned; Tanskanen, Kari etc.; International Journal of Retail & Distribution Management; vol.30; Emerald 2002.

5. Omnichannel Alchemy – Turning Online Grocery Sales to Gold; Biggs, Chris & Suhren, Julian; The Bostom Consulting Group 2013.

WHAT IS THE SERVICE ABOUT?

Foopla connects independent local and specialty food stores into a single digital market. It's a fresh, affordable and easy alternative for everyday grocery shopping.

Foopla provides users with an easy online interface, allowing to explore fresh and exotic products, recipes and dietary options. When customer makes an order it is sent via SMS to the shop owner, which begins packing it. By the time customer gets to the shop - it is packed and waiting for instant pickup.

Thus making the regular shopping experience meaningful, simple and fast.

Our solution allows customers to save time and money, and enjoy hand-picked quality every day.

EXPERIENCE

The service will focus on two different perspectives: the local customer and the shop owner as centers of the shopping process. The experience from the shop perspective will be supported by the ideal of business growth, thus the service will give him more regular customers and will improve their popularity inside the community.

From the customer perspective the service aims to make the local shopping process convenient and adaptable to their needs, offering also quality products and later inspiring recipes that will guide the customer in the use of new ingredients in their daily meals.

OFFER

The service will offer to both of these actors bene�its around food, in the case of the shop owner a new way of approaching the user through digitalization by giving them enough support and assistance during the use of the service; and for the users a future service of delivery or pick-up, (depending on the case) of quality products that also give the user the chance to explore new options for cooking and greater in�luence on which products shops offer.

SHOP OWNERS IN COPENHAGEN

Shop Owners in Copenhagen

I love being independent

It is a family business.

If I’m happy, the shop will be a happy place

Center of social interaction.

This is not just about money

Motivation: Give a good service

Dream: Keep my shop open.

Key Findings

Shops don't maintain any rigid inventory system

Some of the shops have facebook pages, maintained by their children

Shop owners that are under 50 are more likely to �ind new options to diversify their business

TECHRELATIONSHIP

The products they have in the shop are hand selected by them Presentation is the key, successful shops pay attention to it when offering the products in the shop

PRODUCTS

Location of the shop is the key factor in forming community around it

They love their jobs, and don’t consider it only as a source of income

The popularity of the shop depends on its reputation

They are the service itself, they take care of their clients by being attentive and talking to the customers

LOCATION/ COMMUNITY

MINDSET

Is a family business where children get involved once a week, physically in the store or through the social media

When the shops are successful they are open to change

Personas

Shop Owner

Erkan is from a Midle-east country . He owns his shop for over 10 years in the same place in the city. Is 55 years old now and he speaks Arabic and some Danish.

Københavns Erhverv has middle-eastern employees who make cooperation easier.

When he has problems with his business, he calls the business advisor of this area to ask for help.

Cultural background affects his way of trusting or making a business.

He wants to keep his shop open to the public. and to deliver a good service to his clients, also to create a community out of this relationships.

Erkan is positive towards his business and open to make it better with the help of people he trust.

The job is my hobby

I love to serve and try to make my shop a happy place

Erkan

Shop Owner

Fakir is a shop owener who has a grocery store in Frederikesberg. He has been working in this shop for 20 years and the local community knows him. He likes his job and always stays attentive to new ideas to make it better. He is 59 years old and technology is not his strength.

Fakir is very apprehensive towards technology solutions for his business. He prefers other type of approaches. He belives creating a community with his clients is the way of success.

He believes there are no competitors and threatenings in business.

Fakir wants his shop to continue being popoular and hopes to live from it 10 years more.

Fakir opens his shop at 8a.m everyday. He likes to talk with customers and gives the best service he can give.

Find new options that allows him to offer differet products types.

He has a group of shop assistants. They take tare of cashier and organize products.

He is very practical to take decision and choose the best option, but this also closes some doors to new opportunities for his business.

My business needs care and attention

I’m always searching for new possibilties for scaling my shop offer

Fakir

Shop Owner

Salim owns a shop in Amager. He is from Kazakhstan. He is a littlbe bit shy and he doesn’t speak good English or Danish, so he doesn’t talk to customers that much.

Salim has his way of business and he does not want to change. He has no idea of smart phones. The only device he has is an old nokia. Smart phone is too complicated for him.

Salim wants more customers but he has no idea what to do.

Everyday Salim opens his store at 9a.m. and normally he closes at 8p.m.

He stays in the store the whole day watching people come in and out. He sometimes makes very simple posters if he has some products on sale.

That is the only way he promots his business. He noticed there are more and more supermarkets around his store and the amount of customers come to his store is less ans less.

The prices are all here

Salim

Shop Owner

Erkan Salim

non-successful shop owners

Fakir

succesful but open to change shop owners

succesful shop owners

The curve depicts the three representations from the shop owner user research. The shop owner in the top of the curve represents the group that should be approached �irst, due to their interest on working with our service concept and their responsiveness to improve their business.

They perceive the relation with the service as an opportunity for delivering a better shopping experience to their local community that will help their business reputation.

CUSTOMER SEGMENT IN COPENHAGEN

Customer segement in Copenhagen

RELATION OPPORTUNITY Unique service experience

OFFER Unique and exotic goods

Unique physical space Explore healthy food options

Hand-picked fresh products Fair price

Perception: These shops offer a new shopping experience.

Motivation: Low cost and unique products.

Key Findings

Variety of stores and designs, plays an important role in creating unique experiences

Interface allows different styles of interaction from regular shopping to "inspire me" mode with recipe suggestions

Community around each shop makes it more unique and meaningful to shop there

INSPIRATION

Users appreciate the freshness of the products as well as its variety The physical space provides an special experience of interaction

“I need to feel inspired to go there” Some of the products are unknown so the user don’t feel attracted

BUYING EXPERIENCE

The quality is variable from shop to shop, and there's no certi�ication of products like "organic"

Allergies and special diet conditions are not easy to handle in these shops

Assortment of the shop isn't organized well - it's hard to �ind products, and or information about them

DISADVANTAGES

Small shops offer individual service and high degree of customization. Customers often make suggestions on what specialty goods shop owner should try to order.

This shops offer a variety of things that users cannot �ind in supermarkets

ADVANTAGES

Personas

Customer

He doesn’t want a ‘Deletable’ app, also he wants simplify all the process.

Christian is 31 years old. He works in an IT company as a project manager.

He lives in an apartment with his wife in Amager. Both of them like cooking.

Christian likes to try new different food ingredients without making trouble at home.

Christian always goes to the small grocery store on his way back home, sometimes he �indes some vegetable he never saw before. He wants to buy them but he has no idea how to cook. Normally Christian just looked at the name tag. He wants to �ind some information online, however most of the times, he just forget the name after he arrives home.

He also wants to make sure all the food is fresh.

Let’s make something new today

Christian

Customer Frederik prefers to get half-cooked food. Then he doesn’t have to spend time to cleaning and preparing.

Frederik is a student from CBS. He lives with his roommates in Frederiksberg, close to his univeristy.

He rarely cooks, because he hates to shop and to prepare food.

Frederik trusts more the quality of products in supermarkets. He always goes to the same supermarket because he is familiar with the stuff there, it’s easier to �ind what he wants. Besides, Frederik uses Just Eat a lot because it’s easy and fast.

He needs something fast and ef�icient.

I’ll not spend my time cooking, I want something fast.

Frederik

Customer Alina likes the variety of products and the freshness that is visible from the entrance.

She feels home and has a good realation with the shop owner in the shop.

Alina is from Pakistain. She is a part-time worker in a folke pre-school. She is 50 years old now and has a family of two teenager kids together with her husband.

She cooks for the whole family everyday and she likes to buy speci�ic fresh products for her meals.

The taste the �lavors of home, feeding her family with the best she can get.

She goes shopping once a week after work, She goes to two shops that are near home, where she can compare prices and products. She has a budget for food, so she tries to make it cheaper and ef�icient for her.

11.8%

There is a third store that she doesn’t like because it crowded and is dif�icult to �ind what she needs. She feels bad for not going because her friends had told her that shop has really good products, but for her, time is more important for cooking and doing the rest of her home duty.

I love to buy original products that make me feel home Freshness matters the most in the food we eat at home

Alina

Customer

Christian Frederik

seldom goes to buy

Alina

sometimes goes to buy

always goes to buy

The customers in the middle are the ones to approach �irst due to the shop offer is not new for them, rising their shopping frequency without pushing them for a radical behavioral change.

For the contrary, for the customers that never visit these shops the products and the experience are something totally new, so the approach should take a slower pace.

The last customer segment will not be the principal focus for the sake of not delivering something new to them; they have a personal relation with the shop owner and familiarity with the products.

Service levels: Customers and the service

DAILY SUPPLIES

INSPIRATION

Grocery shopping

Inspiring recepies

11.8 %

31.8 %

INSTANT SHOPPING Time Saving

39.8 %

8% Instant Shopping

20% Inspiration Chart depicting strategy of prioritized market segments for the service.

Segments are differentiated based on the level of service they demand. The offer of the service grows in complexity as the customer demands more attractive features to �ind the service interesting.

60.2% Exploratory Market

* Percentages from Denmark stadistk.

11.8% Daily Supplies

IMPORTANT PLAYERS

Map of players in grocery-apps & services market

program yalty ms Lo

Rate about

mparing engin Co e

Wonday

C

Chaser

FooDoo

Dayfair

Ph

du

cts

eTilbudavis

p

O Meal Planners

l Stores ica s y

Let Køb

Your Local

ro

ni c rga

Nær Køb

Retnemt

Skagen

Irma

Kost

Aarstiderme

Nemlig

Gro cery

Lyoness

ing on p ou

Osuma

Delive ry

Grab and Cook

Qbuy

Foopla

P ic k - u p S er

vic

e

KBHFF

All Unite

Bownty

Pick-up services benchmarking

Social Value / Sustainability

Attractiveness / UI

Price premium

KBHFF Kost Grab and Cook

Broadness Assortment

Convinience / Time saving

Qbuy Foopla

THE SERVICE

The Service

The following customer journey is strati�ied along the customer segments. Each one of them uses a speci�ic scenario where the persona, which has speci�ic needs, �inds answers through the service and gets motivated to keep using it.

The �irst one will present the basic service offer and the last two will depict the premium service that corresponds to the advances and demand of the market. The �irst one will describe a normal process of grocery shopping and pick-up whereas the other graphics will depict the additional features that the consumer can �ind engaging for keeping their loyalty within the service.

Customer journey

The basic service will correspond to the process of grocery shopping with pick up, where the user will be able to �ind the wanted products in the app inventory/list and will pick-up their bag with the corresponding elements. The service will allow the shop owner to have control over the process of packaging, storage and inviting users to join the service.

The service PoS assistant, an important actor that will represent Foopla, will give the shop owner the chance to better understand the service process and will provide the shop owner with the different elements needed for the service as an inventory document, the service poster and the paper bags for packaging.

The PoS assistant will also provide advice and deals for the customers, supporting the shop and the experience that the customers will have inside.

Customer journey : Basic Service

Browse items;

On boarding;

Get instruction and training;

Hang posters in the store;

Check and update the inventory;

Select items and put in the cart; Check order details;

Get information from the posters in the store; Download the app;

Select payment options; Get the order with name or code through SMS; Pick the items and pack;

Send a noti�ication of package is ready;

Place the package with handwritten tags;

Con�irm and pay;

Get the receipt with code; Get noti�ication of ‘Package is ready’;

Check the code of the package;

Go to the store and show the code;

Hand the package;

Pick the package;

Check the income;

Assistant helps check the inventory and control quality of products;

Check ranking, feedback and customer service;

Update the stock;

Get support from the assistant;

Posters

PoS Assistant

The assistant brings the posters and packages to shop owners; The assistant gives instructions about service; Create and upload inventory;

Metrics from posters and word of mouth sign ups; Line of visibility

Posters

Phone

The posters with QR code lead to download the app;

Phone

Package

PoS Assistant

SMS of order information and code; Receive assistant’s help; Organize packages;

Phone Clear information (pictures; stock and price) about products; Step by step responds; Receipt with code;

Phone

Bank

Package

Assistant

Assistant’s help;

Check the rating, etc; Customer feedback;

Rating and feedback; Tell potential users about this service;

Phone

App

Package

Good quality bag (with ‘foopla pant’); Rating/ reviews and customer service system;

SYSTEM MAP

Farms

Small Producers

Farming Collective

Vendors Market

The API is a software gatewar to connect expansions of the service, developed by foopla, and by 3rd parties.

Customer journey : Premium Service

The following two graphics depict the premium service offer and the way the service upgrades with attractive elements for giving added value to the user during the process of grocery shopping. This features will be included as part of the service as a possibility for expanding the market.

The �irst one presents the unknown products discovery and how the service accompanies the process, guiding the user into the possible recipes and this product’s relevance in a daily meal.

The second graphic depicts a process of discovery from a user that never shops in this kind of retailer. The service will provide all the facilities for him to get attracted to purchase his groceries. In this case the facility is the delivery process and for keeping the user connected to the service it will provide bene�its in the experience if the user gives back the container for reuse.

On boarding;

Get instruction and training;

Hang posters in the store; Check and update the inventory;

Search on app;

Find the description of the unknown product and some recipes;

Ask the shop owner about the unknown product;

Get inspired, save the recipe and decide to buy;

Find the poster;

Download the app;

Search on App and �ind solutions;

Remind the customer about the bene�its of using the app; Immediate payment; Hand the package;

Poster

Assistant

The assistant brings the poster and packages to shop owners; The assistant gives instructions about service; Create and upload inventory;

Metrics from posters and word of mouth sign ups; Line of visibility

Phone

Shop owner

Poster

Unknown product

Poster offers information and leads to download the app;

Poster

Store maintenance;

Open the app, check the saved recipes; Cook the product;

Upload pictures to cooking community;

* Check-in the location; Pay;

Get the package;

Package

A poster with all the needed information; Packages with logo;

Buy the unknown product and some other ingredients mentioned by the recipe;

Assistant helps check the inventory and control quality of products;

Phone

Unknown product

Package

Recipes with clear information and ingredients are easy to get;

Notice of the bene�it of using this service; *Check-in con�irmation;

Assistant Assistant’s help;

Phone

Unknown product

Recipes with clear information;

Cooking community;

On boarding;

Get instruction and training;

Hang posters in the store;

Browse the website of the service;

Browse on Internet, with the keywords of grocery shopping and deliver;

Get inspired from different recipes and recommendations; Put products in the cart;

Compare and choose the service;

Check and update the inventory;

Check order details;

Select delivery option and input address; Receive the order information via SMS; Pick items and pack;

Give package to delivery man;

Send a SMS of delivery statement to customer;

Con�irm and pay; Get the receipt;

Assistant helps check the inventory and control quality of products;

Get the package from the delivery man;

Check the income;

Share experience with friends;

Check ranking, feedback and customer service; Maintenance of the store;

Rating and feedback;

Receive a noti�ication of delivery;

Bank Poster

Assistant

The assistant brings the posters and packages to shop owner; The assistant gives instructions about service; Create and upload inventory;

Metrics from posters and word of mouth sign ups; Line of visibility

Website Website of the service;

Assistant Delivery man

Phone

SMS with the order information; Assistant’s help;

Packages with logo;

Package

Website

Phone

Product information and recipes; Step by step respond

Assistant

Package

Assistant’s help;

Noti�ication of payment; Noti�ication of package delivery statement from delivery man;

Package

Delivery man

Good quality bag with handwritten card; Rating/ reviews and customer service system;

Foopla Motivation Matrix

Gives to

Customer

Groceries for daily consumption;

Customer

Recipes for various products; Good service that can make returning customers;

Shop owner

Assistant

Near location pick-up service;

Various good quality products; Ensure a quality buying experience from the shop;

On time delivery;

Delivery company

Neighborhood manager

Right package;

Satisfying delivery service; Ensure grocery stores exist in the market under the right regulation;

Shop owner

Assistant

Loyalty;

Revenue;

Community; Sustainable business;

Experience with a new way of business; Introduction and training; Help and support daily business;

Deliver packages and posters;

Receptive communication; Good working relation; Doubts and needs;

Business Advisor

Direct feedback;

Customer behaviour with the grocery stores;

Packages ready to deliver;

Problems to solve;

Customer’s address and phone number;

Needs to fultil; Problems;

Feeling of useful and helpful;

Information;

Achieve the goal of supporting and improving business of grocery stores;

Support; Advice; Pro�it;

Delivery service;

Simple distribution chain to local places;

Training;

Experiences of previous work;

Update new laws and new rules;

Store information;

Business advice;

Delivery company

Advices;

Updated information;

New solution for supporting these shops;

FOOPLA BUSINESS MODEL CANVAS 2015

KEY PARTNERS

KEY ACTIVITIES Assistant trains the shop owner

Shop owner’s participation in the service Inventory digitalization

Delivery service

KEY RESOURCES

Buying local: constructing community

Making shopping at local stores faster and easier than shopping at supermarkets or online shops.

CUSTOMER RELATIONSHIP

Product packages Assistant

COST STRUCTURE Assistance’s salary

App development and maintainance Branding: Posters and �lyers

Exotic products that inspire

USER SEGMENT

Shop owner

Shop Assistant

Usual customers

CHANNELS

App development and maintianance

Neigborhood manager

Packages production

VALUE PROPOSITION

Web site / App

Often customers

Grocery store

REVENUE STREAMS Percentage from customer’s grocery shopping

BETA TEST

Project Timeline

Foopla registered for VAT

First idea of a price comparing app

Participation in Startup Sonar, PIVOT

Finalist in Social IvĂŚrksĂŚtterpris 2015

10 shops registered

UkendtBy followers reach 40,000

Trial and Error

30 shops registered

First sale Closed-beta-test