business model, business model canvas, columbia, customer development, lean launchpad, lean startup, steve blank

1. BottleBox
HELPING YOU FIND YOUR NEXT FAVORITE DRINK, DELIVERED TO YOUR DOOR
Avneet Singh, Carly Weil, Ethan Than, Ian Mak, Kaushik Tiwari, Phil Duong
LEAN LAUNCHPAD | JANUARY 15, 2016
Interviews since yesterday: 5
Interviews to date:
73

2. Partners
• Craft Wine/Liquor/beer
distilleries
• Liquor bottling and
packaging units
• Door delivery services
such as FedEx, UPS
• Warehouse space
providers
• Packaging material
designers /
manufacturers
• Local bars with a
customer base for
customer generation
and promotional
activities
• Airline operators - our
monthly updated
collection for in flight
consumption
• Flavor and special
ingredient suppliers
• Flavor / taste /
ingredient experts and
consultants who
understand mixing of
flavors
• Bar tools suppliers
such as bottle openers,
glasses etc.
Activities
• Packaging &
shipping
• Content creation
• Supply chain
sourcing of alcohol
product and
complementary
offerings (garnishes,
mixers, food, etc.)
• Logistics operations
(storage, orders)
• Quality control
• Customer service
• Marketing
• Supplier relationship
Value Proposition
Box-Side
• Monthly discovery of
new and exciting
alcohols (beer, wines,
spirits, etc.) from
small-batch producers
unavailable in most
major markets
• “Try before you buy” –
ability to sample new
products and then
purchase full-size
Supply-Side
• Broadened customer
base and brand
awareness for our
producer partners
Customer Relationships
Get:
• Social media
• Testimonials / Advertising
• Partnering with suppliers
• Promotional samples
• Special events (launch
party)
Keep:
• Responsive customer
service
• Feedback mechanisms
• Discounts / loyalty
programs
• Loyalty rewards (wine
tastings, trip to winery /
distillery (e.g., Napa Valley,
etc.)
Grow:
• Expand customer base
with corporate
partnerships
• Geographic expansion
(supplier and customer
reach)
Customer Segments
Box-Side
• Millennials age 20-25
starting to discover
and develop tastes in
alcohol, primarily
single women
• Adults 26-40 refining
their tastes and
interested in
broadening their
palates, primarily
couples
• Corporate clients
giving seasonal gifts
Supply-Side
• Smaller (by region,
product line, and/or
brand awareness)
producers seeking
new customers
Resources
• Supplier / Breweries
• Flavor Specialists /
Professional Tasters
to suit flavors to the
theme of every
season/month
• Bottling and
packaging designers
• Order and payment
collection system
Channels
• Website / app / social
media
• Seasonal / theme events
• Email marketing /
newsletter
• Industry publication and
sponsorship
• Direct sales to suppliers
Costs
• Shipping (requiring 21+ signature)
• Licensing fees (by state and alcohol class type)
• Alcohol product and accompaniments
Revenue Streams
• Monthly / Annual subscription
• One-time box purchases
• One-time full-size purchases (% of sale)
Business Canvas – Day One

3. BOTTLEBOX – PETAL DIAGRAM

4. TYPE OF BUSINESS
Physical Product / Service Resegmented Market
Two-Sided Market

5. MARKET SIZE
TAM – 44.9M
SAM – 1.4M
Target Market – 394k
• 319M Americans
• 25% over 21
• 56.4% drank alcohol in the past month
• 8.4M New Yorkers
• 1/3 of customers contacted so far
would buy service in some form
Average
Spend
Churn
Rate
x
Orders
per Year
x =
Revenue
Potential
$40 (1 - 75%)x 6x = $23.6M

6. Partners
• Bartenders
• Craft Wine/Liquor/beer
distilleries
• Liquor bottling and
packaging units
• Door delivery services
such as FedEx, UPS
• Warehouse space
providers
• Packaging material
designers /
manufacturers
• Local bars with a
customer base for
customer generation
and promotional
activities
• Airline operators - our
monthly updated
collection for in flight
consumption
• Flavor and special
ingredient suppliers
• Flavor / taste /
ingredient experts and
consultants who
understand mixing of
flavors
• Bar tools suppliers
such as bottle openers,
glasses etc.
Activities
• Licensing
• Packaging &
shipping
• Content creation
• Supply chain
sourcing of alcohol
product and
complementary
offerings (garnishes,
mixers, food, etc.)
• Logistics operations
(storage, orders)
• Quality control
• Customer service
• Marketing
• Supplier relationship
Value Proposition
Box-Side
• Discovery platform for
new and exciting
alcohols (beer, wines,
spirits, etc.) from
small-batch producers
unavailable in most
major markets
• “Try before you buy” –
ability to sample new
products and then
purchase full-size
• Curated packages
based on your
preferences
Supply-Side
• Broadened customer
base and brand
awareness for our
producer partners
Customer Relationships
Get:
• Social media
• Testimonials / Advertising
• Partnering with suppliers
• Promotional samples
• Special events (launch
party)
Keep:
• Responsive customer
service
• Rating and
recommendations
• Discounts / loyalty
programs
• Loyalty rewards (wine
tastings, trip to winery /
distillery (e.g., Napa Valley,
etc.)
Grow:
• Expand customer base
with corporate
partnerships
• Geographic expansion
(supplier and customer
reach)
Customer Segments
Box-Side
• Women 25-35,
single, box fanatics,
medium incomes,
wine lovers but
interested in learning
more
• Married or co-
habituating adults
30-40, higher
incomes, like
exploring and giving
gifts
• Corporate clients
giving seasonal gifts
Supply-Side
• Smaller (by region,
product line, and/or
brand awareness)
producers seeking
new customers
Resources
• Regulatory Agencies
• Supplier / Breweries
• Flavor Specialists /
Professional Tasters
to suit flavors to the
theme of every
season/month
• Bottling and
packaging designers
• Order and payment
collection system
Channels
• Bartenders
• Website / app / social
media
• Seasonal / theme events
• Email marketing /
newsletter
• Industry publication and
sponsorship
• Direct sales to suppliers
Costs
• Shipping (requiring 21+ signature)
• Licensing fees (by state and alcohol class type)
Revenue Streams
• One-time sample box purchases
• One-time full-size purchases (% of sale)
BUSINESS MODEL CANVAS – DAY TWO

7. CUSTOMER SEGMENTS
Female, single, 25-35,
“box fanatic”, primarily
wine drinker, driven by
learning new things and
doing things with
friends
Betty Box
Couples or co-habitants,
30-40, wine and spirits
drinkers, driven by
discovering new things,
likes giving fun gifts
The Jones’
Male, single or married,
20-40, single alcohol fan,
likes getting a deeper
knowledge of what he
likes and giving fun gifts
Whiskey Will

8. Partners
• Bartenders
• Craft Wine/Liquor/beer
distilleries
• Liquor bottling and
packaging units
• Door delivery services
such as FedEx, UPS
• Packaging material
designers /
manufacturers
• Local bars with a
customer base for
customer generation
and promotional
activities
• Flavor and special
ingredient suppliers
• Flavor / taste /
ingredient experts and
consultants who
understand mixing of
flavors
• Liquor stores
Activities
• Licensing
• Packaging &
shipping
• Content creation
• Supply chain
sourcing of alcohol
product and
complementary
offerings (garnishes,
mixers, food, etc.)
• Logistics operations
(storage, orders)
• Quality control
• Customer service
• Marketing
• Supplier relationship
Value Proposition
Box-Side
• Discovery platform for
new and exciting
alcohols (beer, wines,
spirits, etc.) from
small-batch producers
unavailable in most
major markets
• Monthly: Box that
highlights one alcohol
that comes with
everything you need
to make a cocktail
with it, plus recipes to
make more
• Whenever you want:
Sample box of
alcohols around a
theme (e.g. whiskey)
Supply-Side
• Broadened customer
base and brand
awareness for our
producer partners
Customer Relationships
Get:
• Social media
• Testimonials / Advertising
• Partnering with suppliers
• Promotional samples
• Special events (launch
party)
Keep:
• Responsive customer
service
• Rating and
recommendations
• Discounts / loyalty
programs
• Loyalty rewards
Grow:
• Expand customer base
with corporate
partnerships
• Geographic expansion
• Suggested recipes
Customer Segments
Box-Side
• Women 25-35,
single, box fanatics,
medium incomes,
wine lovers but
interested in learning
more
• Married or co-
habituating adults
30-40, higher
incomes, like
exploring and giving
gifts
• Males 20-40, single
liquor fans, like
trying more of what
they like and giving
gifts
Supply-Side
• Smaller (by region,
product line, and/or
brand awareness)
producers seeking
new customers
Resources
• Regulatory Agencies
• Supplier / Breweries
• Flavor Specialists /
Professional Tasters
to suit flavors to the
theme of every
season/month
• Bottling and
packaging designers
• Order and payment
collection system
Channels
• Bartenders
• Website / app / social
media
• Seasonal / theme events
• Email marketing /
newsletter
• Industry publication and
sponsorship
• Direct sales to suppliers
Costs
• Shipping (requiring 21+ signature)
• Licensing fees (by state and alcohol class type)
• Alcohol product and accompaniments
• Packaging (materials, additions, and labor)
• Shopify / Cratejoy memberships
Revenue Streams
• Ongoing monthly highlight box
• One-time sample box purchases
• One-time full-size purchases (% of sale)
• Payments from producers (monetary or in-kind)
BUSINESS MODEL CANVAS – DAY THREE

9. TOP BOXES

10. VALUE PROPOSITION
BettyBox
• “Try before I buy”
• Curated collections of
things I like
• Easy, delivered right to
me
• Recipe cards and
everything I need to make
it
• Like opening a present
every month
TheJones’
• Discover new and
interesting things
• Enjoy feeling cultured
• Get something I can’t find
anywhere else
• Great gift
WhiskeyWill
• Get things I like based on
my preferences
• Broaden my knowledge
• Learn about new, cool
products
• Great gift

11. Partners
• Bartenders
• Craft Wine/Liquor/beer
distilleries
• Liquor bottling and
packaging units
• Door delivery services
such as FedEx, UPS
• Packaging material
designers /
manufacturers
• Local bars with a
customer base for
customer generation
and promotional
activities
• Flavor and special
ingredient suppliers
• Flavor / taste /
ingredient experts and
consultants who
understand mixing of
flavors
• Distributors /
Wholesalers
Activities
• Licensing
• Packaging &
shipping
• Content creation
• Supply chain
sourcing of alcohol
product and
complementary
offerings (garnishes,
mixers, food, etc.)
• Logistics operations
(storage, orders)
• Quality control
• Customer service
• Marketing
• Supplier relationship
Value Proposition
Box-Side
• Discovery platform for
new and exciting
alcohols (beer, wines,
spirits, etc.) from
small-batch producers
unavailable in most
major markets
• Monthly: Box that
highlights one alcohol
that comes with
everything you need
to make a cocktail
with it, plus recipes to
make more
• Whenever you want:
Sample box of
alcohols around a
theme (e.g. whiskey)
• Gift options
Supply-Side
• Broadened customer
base and brand
awareness for our
producer partners
• Revenue stream for
distributor
Customer Relationships
Get:
• Social media
• Testimonials / Advertising
• Promotional samples
• Special events (launch
party)
Keep:
• Responsive customer
service
• Rating and
recommendations
• Discounts / loyalty
programs
• Loyalty rewards
Grow:
• Expand customer base
with corporate
partnerships
• Geographic expansion
Customer Segments
Box-Side
• Women 25-35,
single, box fanatics,
medium incomes,
wine lovers but
interested in learning
more
• Married or co-
habituating adults
30-40, higher
incomes, like
exploring and giving
gifts
• Males 20-40, single
liquor fans, like
trying more of what
they like and giving
gifts
Supply-Side
• Smaller (by region,
product line, and/or
brand awareness)
producers seeking
new customers; who
have the ability /
appetite to bottle /
ship
Resources
• Regulatory Agencies
• Supplier / Breweries
• Flavor Specialists /
Professional Tasters
to suit flavors to the
theme of every
season/month
• Bottling and
packaging designers
• Order and payment
collection system
Channels
• Bartenders
• Website / app / social
media
• Seasonal / theme events
• Email marketing /
newsletter
• Direct sales to suppliers
Costs
• Shipping (requiring 21+ signature)
• Licensing fees (by state and alcohol class type)
• Alcohol product and accompaniments
• Packaging (materials, additions, and labor)
• Shopify / Cratejoy memberships
Revenue Streams
• Ongoing monthly highlight box
• One-time sample box purchases, with gifting options
• One-time full-size purchases (% of sale)
• Payments from producers (monetary or in-kind)
BUSINESS MODEL CANVAS – DAY FOUR

12. Producers
• Wineries
• Breweries
• Distilleries
Wholesalers
• Distributors
• Importers
• Control Boards
Retailers
• On-premise
• Off-premise
Consumers
THREE TIER SYSTEM
BottleBox

13. Partners
• Bartenders
• Craft Wine/Liquor/beer
distilleries
• Liquor bottling and
packaging units
• Door delivery services
such as FedEx, UPS
• Packaging material
designers /
manufacturers
• Local bars with a
customer base for
customer generation
and promotional
activities
• Flavor and special
ingredient suppliers
• Flavor / taste /
ingredient experts and
consultants who
understand mixing of
flavors
• Distributors /
Wholesalers
• Third party fulfillment
companies?
Activities
• Packaging &
shipping
• Content creation
• Supply chain
sourcing of alcohol
product and
complementary
offerings (garnishes,
mixers, food, etc.)
• Logistics operations
• Quality control
• Customer service
• Marketing
• Supplier relationship
Value Proposition
Box-Side
• Discovery platform for
new and exciting
alcohols (beer, wines,
spirits, etc.) from
small-batch producers
unavailable in most
major markets
• Monthly: Box that
highlights one alcohol
that comes with
everything you need
to make a cocktail
with it, plus recipes to
make more
• Whenever you want:
Sample box of
alcohols around a
theme (e.g. whiskey)
• Gift options
Supply-Side
• Broadened customer
base and brand
awareness for our
producer partners
• Revenue stream for
distributor
Customer Relationships
Get:
• Social media
• Testimonials / Advertising
• Promotional samples
• Special events (launch
party)
Keep:
• Responsive customer
service
• Rating and
recommendations
• Discounts / loyalty
programs
• Loyalty rewards
Grow:
• Expand customer base
with corporate
partnerships
• Geographic expansion
Customer Segments
Box-Side
• Women 25-35,
single, box fanatics,
medium incomes,
wine lovers but
interested in learning
more
• Married or co-
habituating adults
30-40, higher
incomes, like
exploring and giving
gifts
• Males 20-40, single
liquor fans, like
trying more of what
they like and giving
gifts
Supply-Side
• Smaller (by region,
product line, and/or
brand awareness)
producers seeking
new customers; who
have the ability /
appetite to bottle /
ship
• Distributors /
Wholesalers with
wide brand portfolio
Resources
• Supplier / Breweries
• Flavor Specialists /
Professional Tasters
to suit flavors to the
theme of every
season/month
• Bottling and
packaging designers
• Order and payment
collection system
Channels
• Bartenders
• Website / app / social
media
• Seasonal / theme events
• Email marketing /
newsletter
• Direct sales to suppliers
Costs
• Shipping (requiring 21+ signature)
• Alcohol product and accompaniments
• Packaging (materials, additions, and labor)
• Shopify / Cratejoy memberships
• Revenue share with distributors
Revenue Streams
• Ongoing monthly highlight box
• One-time sample box purchases, with gifting options
• One-time full-size purchases (% of sale)
• Payments from producers (monetary or in-kind), less cut for
distributors
BUSINESS MODEL CANVAS – DAY FIVE

14. WWW.BOTTLEBOX.CRATEJOY.COM
Visit us on the web! Taking pre-orders now!

15. APPENDIX

16. PROPOSED EXPERIMENTS – ROUND 1
 Experiment: Physical box showing
 Question: Would people buy our MVP box? How much would they pay?
 Pass/Fail Signal: Contact information for pre-order; price range
 Experiment: Speak to bar owners
 Question: Would bars serve as partners / sales channel? What would they need to
get back?
 Pass/Fail Signal: Contact information
 Experiment: Go to locations outside bars (e.g. Grand Central, barbershops)
 Question: Are there people who would still prefer a subscription model?
 Pass/Fail Signal: Contact information for pre-order
 Experiment: Speak to more producers
 Question: Would producers give us free product? What would they need to get
back?
 Pass/Fail Signal: Receiving free product

17. RESULTS OF EXPERIMENTS – ROUND 1
•Hypothesis: What constitutes an MVP? What price?
•Experiments: Showed seven mock boxes in Uris
•Results: People loved the boxes, two in particular, ~$20
•Iterate: Show more people
Physical Box
Showing (MVP)
•Hypothesis: Liquor stores and bars will want to partner
•Experiments: Spoke to owners about partnership structures
•Results: Not a huge value prop for them, mostly a headache
•Iterate: Find other channel partners
Speak to Shop
Owners
•Hypothesis: There’s a different segment that doesn’t go out
•Experiments: Set up in Grand Central and on campus
•Results: Found more of our target customer in these places
•Iterate: More table setups to talk to more targets
Go to Locations
Besides Bars

18. PROPOSED EXPERIMENTS – ROUND 2
 Experiment: More box showings with our most popular boxes
 Question: More validation of which target segments prefer which box, and how
much will they pay?
 Pass/Fail Signal: Ask for orders, make them choose one box
 Experiment: Talk to liquor stores and bars
 Question: Do liquor stores or bars want to partner with us as a sales channel?
 Pass/Fail Signal: Ask to talk to customers in the store, ask for term sheet
 Experiment: Talk to producers
 Question: What sort of producers are attracted to our model? What logistic
capabilities do they already have vs. what do we need to supply?
 Pass/Fail Signal: Contact information for future sales

19. RESULTS OF EXPERIMENTS – ROUND 2
• Hypothesis: What constitutes an MVP? What price?
• Experiments: Showed seven mock boxes in Uris
• Results: People loved the boxes, two in particular, ~$20
• Iterate: Show more people
Physical Box
Showing
(MVP)
• Hypothesis: Distributors and producers will want to partner
• Experiments: Spoke to owners about partnership structures
• Results: Very interested, but very concerned about logistics
• Iterate: Develop succinct value proposition & target
producer type
Speak to
Distributors /
Producers

20. PROPOSED EXPERIMENTS – ROUND 3
 Experiment: Talk to VC firms
 Question: What advice can we learn from experienced professionals?
 Pass/Fail Signal: Business cards / offers of investment
 Experiment: Talk to competitors / online retailers
 Question: How do they handle the logistics of shipping?
 Pass/Fail Signal: Specific states they ship to

21. RESULTS OF EXPERIMENTS – ROUND 3
• Hypothesis: Experienced VCs will know common pitfalls
• Experiments: Speak with VC firms with similar investments
• Results: VC people are very busy
• Iterate: Keep trying to call
Talk to VC
Firms
• Hypothesis: Online retailers use FedEx to ship
• Experiments: Spoke to online retailers and competitors
• Results:
• Iterate:
Talk to
Online
Retailers

22. OTHER BOXES

23. BottleBox
TEAM
MEMBERS
Avneet Singh Carly
Weil
Ethan
Than
Ian
Mak
Kaushik
Tiwari
Phil
Duong
Degree
Program
MS in
Management
Science &
Engineering
Executive
MBA
Executive
MBA
Executive
MBA
BS
Engineering
Management
Systems
MBA
LinkedIn /avneetsinghl
inkedin
/carlyweil /ethan-than-
81a0336
N/A /kaushikktiwa
ri
/philongduo
ng
SME? Yes Yes No No No Yes
Team Role Designer /
Hustler
Hustler /
Product
Picker
Hustler Hustler Hacker /
Product
Picker
Product
Picker
Anything
interesting
we should
know?
Currently
works part
time to
derive
customer
insights from
Currently
works part
time with a
wine event
company
Project
management
/ quality
background
Finance
background,
tech interest
on the side
Took a year
off to start a
digital health
startup
Founder of
non-profit
OUR TEAM