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
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
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
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
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