INSTACART

Your personal grocer

TEAM 11:Nidhi SharmaNikhil SinglaOluwaseun OyinsanStephanny PeralVahid Majidian

AGENDA

Unique Value Proposition Situation AnalysisMarketing StrategySales EnablementStrategic AnalysisRecommendations

AGENDA

Unique Value Proposition Situation AnalysisMarketing StrategySales EnablementStrategic AnalysisRecommendations

UNIQUE VALUE PROPOSITION

WHO: Young professionals and housewives from Mexico City

NEED: Groceries delivered to their doorstep or place of business

OFFER: Online platform with catalogues of all the major supermarkets BENEFIT: Less stress and more personal time

EXPERIENCE: Quick and easy ordering as well as a timely delivery service

DIFFERENCE: Expertly handpicked products sourced from multiple retailers AGENDA

Unique Value Proposition Situation AnalysisMarketing StrategySales EnablementStrategic AnalysisRecommendations

RATIONALE FOR BUSINESSMexico is a lucrative market for Instacart

Key statistics show a positive trend in online grocery shopping

Sizable gap between customers new shopping behavior and services available in the market

There is no similar competition = Early adopter

Breakeven in Year 2 with conservative financial assumptions

CORPORATE STRATEGY

Provide online shopping platform for retailers to increase their POSBe the leader in the online grocery shopping marketBuilding:Network of specialized grocersRelationships with retailersIntuitive website / app1. Vision2. Strategy3. Goals4. Initiatives

Mexico CityLT partnerships with retailersCustomer relationshipsInnovation in delivery serviceUnique pricing (mark-up) modelInternational expansionDiversify non-grocery productsIncrease market share

MACROECONOMICAL FACTORS

The number of Internet users has had double digit growth

14%11%20% internet users shop online

57%42%E-commerce has exceeded 40% yearly growth in the last 4 years$USD Bn83% Increase in online grocery shopping in 20136% Increase in grocery expenditure in 2013Millions

CUSTOMER ANALYSIS

In 2013 Mexican internet users shop online for its convenience, practicality & delivery servicePersonal data & delivery mistrust are the principal challenges for E-Commerce in Mexico

7 out of 10 internet users feel more secure when they see the AMIPCI seal in the sites they shop at3% of the users wont shop online again:Overpromise & under deliveredFraudNegative shopping history9

COMPETITIVE ANALYSIS

Considering the attributes above, Instacart has potential to become the leader for online grocery shopping

AGENDA

Unique Value Proposition Situation AnalysisMarketing StrategySales EnablementStrategic AnalysisRecommendations

MARKETING OBJECTIVES

* Considers calculation from 2016-2019Source: Euromonitor International

4,347 delivers per week

52% NY 1st week

TARGET MARKETS - PERSONAS

1. WORKING PROFESSIONAL: StephannyMen / Women25 45 years Single / MarriedNo children SES Med-High / High30K 80K USD10 hrs work3 hrs commutingWeekends for family & friendsHates grocery shopping2. HOUSEWIVES: LetyWomen35 60 yearsMarried +2 mischievous childrenSES Med-High / HighSingle income family 60K 120K USD24/7 tied up taking care of kids Fussy about family food

The online grocery retail growth is generated by the segment of urban working men and women with busy lifestyles who seek convenience and timeliness for their grocery shopping/delivery experience.Stay at home women lack hours of the day to focus on their children and other responsibilities. Instacart will solve this problem by offering a stress-free and quick delivery of groceries directly to their residence.

MARKET RESEARCH

A market survey was conducted on 55 Mexico City habitants matching the target personas.

The main positive responds were:

INITIAL RESEARCH:Positive first reaction to the business proposalAttributes highly graded NEXT STEPS:Personal interviews (more in depth analysis)

Day In The Life (shopping experience)

Focus Groups (understand difficulties w/ app)

A/B Testing (marketing campaigns) Expertise in grocery shopping

Multiple store shopping

Friendly personal shopper & ordering experience87%82%80%BRAND

PERSONALITY: Innovative, simple, fun, flexible, reliable, friendly, fast MESSAGE: Expert personal grocer (friendly)Multi store shopping (flexible)PROMISE:Non-stressful & friendly shopping experienceOn time delivery

VISION: Provide an easy to use flexible online shopping platform for time sensitive consumers who look for a combination of expertise and home delivery High QualityHighPrice /DeliveryPOSITIONING MAPBRAND MAPLow QualityLowPrice /DeliveryInstacartWal-MartChedraui SelectoChedraui, AurreraCity MarketSuperama, Sumera, Comercial MexicanaMARKETING MIX - OVER

Website/application based grocery shoppingMultiple store shopping capability1 hr home deliveryGrocery shopping expertsConvenience (little effort)Time saved = more personal time for other activitiesUser friendly interface Stress free grocery shoppingCordial interaction with grocersFree delivery for 1st time usersMembership optionsFriendly Customer ServiceBonus link to performanceCompensation packages above market standardsTQM Fresh groceriesQuality productsEasy to use online platformsProcesses aligned with US HQMARKETING CAMPAIGNS

The marketing strategies will include efforts in both traditional and digital media: * Detail information about marketing budget is included in the financial section.

Confidence & Loyalty will increase possibility to capture the early adopters

17AGENDA

Unique Value Proposition Situation AnalysisMarketing StrategySales EnablementStrategic AnalysisRecommendations

SALES

Post-purchase ExperiencePre-purchase ExperiencePurchase and Usage ExperienceBuying CycleWeb SiteAdvertisingWord of MouthShopping cartExpertisein shoppingService & DeliveryTrainingCustomer CareTechnical SupportGive- aways UpgradesThe grocers are the face for the company.

The overall performance affect the customers perception and satisfaction.

It is important to ensure their performance by:TrainingMotivationCompensationRecognition and Rewards

BUYING CYCLE TOUCHPOINTSGROCERS IMPORTANCEAwarenessInterestEpiphanyInterestConfidenceConfidenceLoyaltyAGENDA

Unique Value Proposition Situation AnalysisMarketing StrategySales EnablementStrategic AnalysisRecommendations

SWOT ANALYSIS

STRENGTHSWEAKNESSESOPPORTUNITIESTHREATS

AGENDA

Unique Value Proposition Situation AnalysisMarketing StrategySales EnablementStrategic AnalysisRecommendations

RECOMMENDATIONS

MARKETING:Invest in branding in line with corporate strategyLeverage on early adopter for WOM publicityCo-brand with strong brand to protect our market shareUse inspirational videos for brand promotion e.g. cola colaInclude clear delivery promise message inn the advertisingCustomer referrals & feedback important to spot gaps in servicesMore emphasis on pull marketing rather than push to create awarenessMeasure the effectiveness of the marketing effortsORGANIZATION:Incorporate CRM programPerformance development programs for employees & grocersClear reporting hierarchy for staff within Mexico and with US HQ TQM programs for grocersBUSINESS INTELIGENCE:Monitor changes in Marketing segmentsMonitor the buying cycle of customers to identify gaps in servicesMonitor the competitors efforts and innovationsContinuously nurture the relationships with partnersCreate a partner incentive model (Bonus for sales volume per partner)Diversify into non grocery productsTECHNOLOGY:

Incorporate latest updates in softwareIncorporate EDI programs for real time price update BACK UP SLIDES

EXHIBITS

PRO FORMA P&L

ASSUMPTIONS:Total Revenues:Mark up: 10%Membership: $1,485 MXPNormal Del: $25 MXP1 Hr Del: $49 MXP

Costs:Grocers Commission: $100 MXPRH: City Launcher, Marketing Manager, Engineers, Customer Service RepsMarketing Exp: Fixed $2 mn MXP 2015 & 2016, 5% of Total Revenues 2017 onwardSocial Media: 50% of Marketing budget for the first 2 years and 60% onwardTraining Exp: 5% of Total Revenues

MARKETING OBJECTIVES (DETAILED ANALYSIS)

* Considers calculation from 2016-2019Source: Euromonitor InternationalJUSTIFICATIONS:Instacart Foray:10% weekly growth

New York Foray (1st week):300 grocers4 delivers per grocer8,400 delivers per Week

Mexico City Forecast assumptions:15 grocers4 delivers per grocer1st year weekly growth: Q1: 10%, Q2: 8%, Q3: 6%, Q4: 4%2015: 408 delivers per week2019: 4,347 deliver per week(52% vs NY 1st week)

REFERENCEShttps://www.amipci.org.mx/estudios/habitos_de_internet/Estudio_Habitos_del_Internauta_Mexicano_2014_V_MD.pdf

https://www.amipci.org.mx/estudios/comercio_electronico/131028_-_Comunicado-Estudio_Comercio_Electronico2013-Proyecto-V3_-_REV.pdf

http://www.portal.euromonitor.com/portal

http://www.foodtechconnect.com/2014/04/02/how-instacart-is-growing-its-grocery-delivery-by-15-20-percent-a-week/

http://www.forbes.com/sites/briansolomon/2015/01/21/americas-most-promising-company-instacart-the-2-billion-grocery-delivery-app/

THANK YOU !

TEAM 11:Nidhi SharmaNikhil SinglaOluwaseun OyinsanStephanny PeralVahid Majidian

ENJOY THE BREAK 28