Sous-Vide in Silicon ValleySV Cuisine

Jaclyn Wegener

Adeline Rousseau

Nhung Bui

Carolina Sterpos

Wojciech Chmielewski

SV Cuisine Team

«Josh is 27, he works in one of the valley’s companies because he loves technology and innovation. He works in the office until 11p.m every day. He is not satisfied with the food at the cafeterias because of the bad quality/price and because of the food taste. However, he has no other options»

Introduction to Sous-vide

“Sous-vide is a method of cooking in which food is sealed in airtight plastic bags then placed in a water bath. The intent is to cook the item evenly, ensuring that the inside is properly cooked without overcooking the outside, and retain moisture”

Why should you use sous-vide?

★ It is convenient: it is very easy-to use and saves time when re-heating!

★ The food remains tasty!★ It preserves the quality!

Chef Alfredo Martin, Mariette Restaurant

Segment: Where in the world is our target?

Silicon Valley

Next? We aim at seducing the Valley’s employees with our unique value proposition and expanding to Los Angeles and the areas where the major companies are located.

$107,395Average Salary in Silicon Valley

30%Of people are between ages 25-44

1,500,000 jobsAnd growing

Why Silicon Valley?

Market size

Initial target

5 year target

Potential market Potential market: Silicon Valley

5 year target: 16% of people in Silicon Valley = 650,000 customers

Initial target: 25 corporate canteens = 250,000 customers

Why buying sous-vide: Our products positioning

Interpretation from the survey:121 respondents – Europe & US based

● Quality seems an important factor regarding food: 67% said they eat high quality food at least once a week or more

● Convenience appears to be crucial regarding meals decision making: - 90,5% of people working in a company with a cafeteria said they eat there because it is convenient and saves time - 41% order pre-made food at least once a week

Positioning:

● Quality: Ingredients, cooking process and sous-vide technique

● Convenience:Pre-cooked foods, need only 3-10min re-heating

● Taste: Preserved thanks to the technique

Why buying Sous-vide: Customer’s Persona

Age: 25-45

Income: 45% of Silicon Valley make over $100,000

Working for large, international companies:

◦ Innovators of technology ◦ Employees are open to innovations◦ Competing for the best employee perks◦ Most of the companies have “concierges”

Work life:

◦ 55-70 hour work weeks (which is not common)◦ Hackathons◦ Make a lot of money, but do not have much time

Market penetration timeline

Year 1 Year 2 Year 3 Year 4-5 Year 5+

Companies’ cafeterias: Product testing and improvement of the offering

Work/ home delivery, specialized stores and website

Personal store, go digital with use of apps, blogs and socials

Store and delivery expansion in the valley

Expansion in NYC and other cities: going globalMass market

Experimentation with Sous VideCompany Cafeterias

Overcome barriers to adoption: Promotion plan 1/2

With Companies:Work with cafeterias and offer better, easier, cheaper, healthier food options and educate customers:

● Special “sous-vide” island in cafeterias● Offer in-company trainings on food habits, health and

technology● Special “sous-vide”events● Positive WOM offline and online● Offer some free machines to the companies (capsule-coffee

model), customers can also re-heat with traditional method.

With employees and ending customers:

● Appealing packaging with clear instructions to use● Cooking classes in specialized stores● Online campaign using famous food bloggers and social

media, including promotions («get a free machine»)● Appealing e-commerce website: functional, creative, elegant● WOM offline and online

Delivery Service:Online menu for smaller companies and they can order food and have it delivered to them a few hours later

Overcome barriers to adoption: Promotion plan 2/2

Financial analysis: Overview

Year 1 Year 2 Year 3 Year 4 Year 5

Dominating business activity

B2B B2B B2B & B2C B2C B2C

Total targeted population

250000 1500000 4062500 4062500 4062500

Segment 1 (Big 25) 250000 250000 250000 250000 250000

Segment 2 (Tech S&M) 0 1250000 1250000 1250000 1250000

Segment 3 (Others) 0 0 2562500 2562500 2562500

Total buyers 42000 101250 182813 365625 731250

Net Income -€ 149 770 -€ 91 136 € 148 949 € 240 861 € 1 137 482

Total Net Income € 1 286 387

Concluding Statement

We want to invest because the project looks very successful from a financial perspective and future potential.

Thanks!

ANY QUESTIONS?

AppendixNeed to know anything about our presentation?

Targeted market segmentation: Initial Launch

Value Creation

● French food prepared by trained chefs directly in the companies’ cafeterias!

● Cafeterias employees will just have to heat-it up in a very simple manner

Innovation Creation

● Very high quality, tasty food ready in 3-10 min at the average cafeteria price!

Distribution● Partnership with top companies in the

valley and their catering partners

Objectives● Spread the sous-vide popularity● Introduce the product in the market● Test the product in a safe environment

5-year strategy ensures strong penetration & introduction of sous-vide in daily lives

Year 1

Year 2

Year 3 Year 5+

Year 4-5

Companies with canteens

- Companies without canteens- Presence in specialized shops- Online selling

Opening of our first shop

Expansion of boutiques

Introduction to mass market

● Speculative Sale

● Rollout strategy

SOUS VIDE

Sample Launch Management Plan

Phase category

Objective plan

Potential problem & significance

Tracking

Contingency plan

5 years Launch Management Plan37 different contingency plans:- 8 necessitating no extra cost or low- 13 necessitating low or medium costs- 16 necessitating high costs -URGENT

Perceptual mapping and gap analysis

High qualityLow Quality

High Convenience: time and easiness

Fancy restaurant

Sous Vide

Frozen meals

Cafeteria food

Making your own food

Fast food

Low Convenience: time and easiness

Map axis rationales: Regarding food, two variables distinguished themselves as being the most relevant in food/eating decision making: ● Convenience (time

& accessibility) ● Quality

Price was not taken into account because our products will be priced as the average range of cafeterias and hence will not be considered as a differential factor in the decision making

● 121 respondents – Europe & US based

● Average age range: 20-over 45, most are between 20-24

● Gender: 34% male, 66% female

● 62.5% have experience of working in a company that has food options onsite (canteen, cafeteria…), of which 90% eat regularly there mainly because of convenient location, reasonable price and good/acceptable quality.

● 64.2% don’t know about Sous-vide

● 55% cook at home everyday. 67% eat high quality food at least once a week or more. 41% order pre-made food at least once per week.

● 45 % are willing to pay 8-12 euro and above for a dish cooked with Sous-vide technique. 55% are willing to pay less than 8 euro but majority is students who chose this price range.

Online questionnaire

Please rank in terms of importance when you prepare/ buy daily food? (1 - most important to 6 - least important)

Online questionnaire

Online questionnaire

Everyday Couple of times per

week

Once per week

Once per month

Only for some special events

How often do you...

If you ate/ eat regularly at your company canteen, why?

If you didn't/ don't eat regularly at your company canteen, why?

Online questionnaire

Yes 33.8%

No 64.2%

At what price would you be willing to buy a dish pre-cooked with the

Sous-vide technique? The Sous-vide

technique is cooking at a low-temperature to keep the nutrition/vitamins. The food is Michelin star restaurant quality and requires 5-10 minutes to

warm up. (1 dollar = 1.09 euro)

Have you ever heard of Sous-vide cooking technique?

Online questionnaire

If you ate/ eat regularly at your company canteen, why?

If you didn't/ don't eat regularly at your company canteen, why?

Online questionnaire

Focus: SV Cuisine delivers the best quality finished dishes in terms of taste consistency, healthiness and excellence of the ingredients with the innovative sous-vide technology. Be the first targeting individual customers market place. Be the reference in the housing sous-vide cooking finished dish.

Goals: Offer a range of finished dishes to be delivered to health, taste and quality food oriented individuals in the US. Target the Silicon Valley employees at the starting phase with aim at reaching 650,000 customers in 5 years. Progressive segmentation will be the base for reaching the target.

Guidelines: Use sous-vide technology to produce several types of finished meals that are the most desired. Adapt the products used for the restaurant market to the individual consumers. The courses have to be of the best available quality and easy to cook. Price range has to be on the average price of cafeterias food in the Silicon Valley.

Product innovation charter (PIC)

Market segmentation 1/2

Customer's Profile:● Workers with medium high revenues that are food concerns. ● Not satisfied with their eating habits and would like to change them. ● Busy, have no time to cook a whole meal: cooking a pasta dish takes

apx. 20 mins without taking into account the sauce cooking.● Have no time to shop for all the ingredients or to look up for recipes● Research shows Americans are willing to buy sous-vide for $20

Companies in the Silicon Valley: ● Very strong competition among technology companies to outdo each

other’s extraordinary perks.● The role of office manager has transformed into a so-called workplace

coordinator, who often leads a staff of aim-to-please specialists. Such employees function as concierges, responsible for everything from planning outings to memorizing favorite granola-bar flavors.

● International with many offices where sous-vide food could grow. ● Typically lead users in the latest technology and people look to them

to find the “hot new thing”.

Market segmentation 2/2

Available solutions on the current market: eating at the multiple cafeterias available in the Silicon Valley or ordering food delivery.

The gap Demand/Supply: Customers are not satisfied with the food served at the cafeterias in the Valley (the quality and taste are not good and the prices are too high)

The opportunity: Serve those customers with the best quality and tasty food by offering them a customized solution. ● Less time demanding, only 3 to 10 minutes warming time. ● Still give the cooking “manual” experience that is associated with

fresh and quality food without being so time-consuming.● Offer a better alternative to the available cafeterias and home

delivery food services. ● Price will be in the average available range: they will be willing to

pay because of the added value offered by our ingredients and the mix of the time saving / cooking experience-

Barriers to entry - Competition

The Main Competitor:Bon Appetit, Paolo Alto, CA An on-site restaurant service that caters in many big companies. ● Chefs create their own menus with food

certified organic and with safe practices.

● They provide responsive service; from scratch food; and responsible sourcing practices. Locavore Mentality. They work a lot with companies, universities and hospitals around the world.

● Believe in only using fresh ingredients made from scratch, know which cooking techniques preserve flavors and nutrition. Their global cuisine is crafted through hands-on trainings by chefs who grew up eating a particular cuisine. The flavors are vibrant and authentic.

However, comments on the Bon Appetit cafeterias are often very bad: There is a gap between the “stated” quality and the one perceived by customers that are not satisfied with the quality/price ratio and taste.

Market penetration timeline & strategy 1/5

Year 1: Introduce the finished sous-vide meals in the market ● Target: Employees at main Silicon Valley companies with cafeterias

● How? By contacting the companies and offer free trials machines where the employees can experience our foods (the company will buy only the meals). If the companies are employing a catering agency: we will contact the agency to make a deal for a “sous-vide” menu. Our main target: Bon Appetit

● Opportunity:- For the company: Make the employees feels comfortable because

higher productivity rate is associated with healthy tasted food and employees’ happiness. Increase cafeteria’s/company’s reputation

- For us: Test the product in a relatively close and low risk environment. Adapt offering to what is popular by using forum comments and ratings, surveys, observations and company’s feedbacks.

Market penetration timeline & strategy 2/5

Year 1: (continue) ● Possible results: Develop a strong product offering to make the

customers become “addicted” to sous-vide cooking so that they order the food from year 2-5

● WOM: There is a high participation on social media from the Valley’s employees. The popularity of the products will spread rapidly, people from other companies will be willing to try the food in the targeted cafeterias and experience the product. This will lower our marketing costs and prepare the customer base for the second year.

● Barriers to entry: the “Bon Appetit” cafeterias might be reluctant to

use our sous-vide machine since their brand proposition is “food from farmers” and might already have constraint agreements with producers.

Year 2: Develop the use in the other companies companies and at home ● Target: More companies with cafeterias and expand to other

companies without cafeterias sponsored by the company and end-users individuals

● How? Through events, WOM from employees of year 1, machines available on the website and specialized shops. We will offer the machine to the companies for their “halls”.

● Opportunity:- Companies without cafeterias: Employee orders or buy meal online

and gets office delivery (no involvement for the company because of no costs, machine is offered).

- End-users: Continue the experience and benefit from the sous-vide advantages at home. They have the money and the sensitive palettes.

Market penetration timeline & strategy 3/5

Year 2: (continue) ● Distribution: Specialized shops (with possibility to buy the

machine); Online selling: website with option to also buy our machines with the same model as coffee sellers (Lavazza…)

● Moving on to small companies: These companies tend to have

longer working hours than other companies. - Easier for them to have a sous-vide machine in the offices

because people are there longer, we can deliver the meals to their doorstep, they can continue working while their meal is cooking and then stop for a small break to eat.

- May not have a cafeteria to choose from so they already have habit of ordering out.

Market penetration timeline & strategy 4/5

Year 3:● Opening of our first store/with a “tasting” department● Getting the word of mouth out by trying to sponsor blogs, utilize

pinterest and magazines and reach out to the Food Network or other cooking shows to show the benefits of sous-vide

Years 4-5:● Expansion in other areas of the valley● Attempt to gather more customers around the edges and those

who may not work for Tech but have money and work around people who work at these tech companies

Market penetration timeline & strategy 5/5

Rogers Attributes that speed adoption

● Relative Advantage: Sous Vide provides a high quality tasting meal in a very short amount of time. No competitors could have a meal that tastes this good, this fast for a relatively cheap price. The food is restaurant quality without having to pay for a nice restaurant or going anywhere

● Compatibility: The potential target believes that innovation is key and anything that allows them more time is a positive thing.

● Complexity: Since the product is very simple, all you have to do is heat water to a certain degree, it is extremely easy to use.

● Trialability: Most of the adopters will be able to try it at work, in an environment where someone else cooks it or they order it themselves or work orders it for them. If they enjoy it, they can purchase it for home

● Observability: Food is brighter and more colorful as well as a much better taste that the average warm up meal

Marketing tactics

Year 1:

● Make product accessible in companies● Inform employees about sous-vide and have demonstrations ● Free napkins with name on them● Celebrity endorsement

Year 2:

● Reach out to more companies● Give them a menu to order from● Join professional associations & meet smaller businesses● Cheaper machines if promised more business● Speak about how larger companies eat sous vide

Year 3- 5:

● Social networking● Making our name known in stores and online● Offering discounts through businesses

ATAR assumptions for financial evaluation

Awareness● Open work environment creates high visibility ● WOM and other marketing communications

Operationalization with application target markets

Trial● Lunch offering for employees at corporate canteens: more

repeats, more trials ● Demonstrations and trial opportunities open frequently

Availability● Direct selling at corporate canteens (high coverage)● Specialized stores/ boutiques closed to resident areas● Online ordering and delivery

Repeat● Organically generated thanks to premium product,

restaurant quality food & high satisfaction

● Loyalty and discount programs with member cards

Pricing strategy

Cost-based

Benchmark

Medium restaurant

Fancy restaurant

2-4

5-10

8-15

12-30

Questionnaire & Research

Fast food/Cafeteria food

Frozen food

● 45% are willing to buy sous-vide food at 8-12 euros and above

● Research shows Americans are willing to buy sous-vide for $20

Our recommended price:

9-14 euro

Product offering

First course

Second course

Pricing 9 14

Cost 4 8

Interview with Restaurant Mariette Paris 1/2

● 80% of French restaurants use sous-vide but they will not admit it.

● French people do not think sous-vide is fresh, tend to be more close minded, need to be involved in the cooking process and associate the sous-vide method to frozen food (in turn associated with bad quality)

● Chefs will not tell people they use sous-vide.● When Hippopotamus told people they used

sous-vide they lost 20% of their clients.● Sous-vide isn’t really sold to anyone but

professionals.● Tried selling them in France in Monoprix but

failed badly● In US, people stated they were willing to pay

$20 for gourmet pre-made food.● Thinks there is an avenue for this in the US.

Chef Alfredo Martin, Mariette Restaurant

Interview with Restaurant Mariette Paris 2/2

→ Why Sous-vide?

● Taste is a lot better- the longer you cook, the more the flavors envelop the food

● Stays fresh for up to 20 days● Easy to use: warm-up can be done also with traditional means

(oven, maria-bath or microwave) ● Only need to reheat food in 3-10 minutes, any more then it won’t

come out that great● People feel like they participate in the process● Good for people who like to cook but don’t know how● Can cook as many pre-made packages as you want at a time, just

know that different meals have different temperatures● Sous-vide is best for white meat because people all eat their white

meat at the same done-ness● All you need to tell the client is “This will simplify your life” and

“bring back the quality and taste you were missing”

“They served a full breakfast, as well as lunch. Breakfast had a ton of options - always a hot bar with eggs, omelettes, pancakes/waffles, some sort of meat, potatoes, and always vegan/vegetarian options. They had smoked salmon, veggies, smoothies, all sorts of pastries, as well as tons of fruit, yogurt and granola. It wasn't uncommon to have duck or mussels for lunch. On top of all that, there were micro kitchens every 100 feet at the office - on every floor - that were filled with waters, fresh fruit and teas, and healthy snacks. Occasionally there would be little chocolates or bags of chex mix, but again, health was always the #1 concern”

Lisa Zimmerman, Marketing employee at Google

“Google did not cater. Food was made by Chef Tom Duffy who was actually the USA Team Basketball chef during the 2012 Olympics so he knows Lebron and Kobe! They had cooking demos that allowed to learn and make your own meals! Haha it was awesome! Not to mention, I didn't even get to hit up every restaurant on the campus! Plus, it was all free by the way”

Zach Roberts, Google Intern

Interviews with Google employee & intern

the end