Ideas for Increasing FreshMenu Revenue by More than 50%
FreshMenu started as a Gourmet Food in Box delivery in Bangalore, India in 2014. It works on a hub and spoke model, where kitchens are set up as hubs across the city localities and each kitchen serves the neighbouring locality. In 2 years time span, FreshMenu has opened up 26 kitchens in 4 cities and plans to expand to 80 kitchens in the coming 2 years.
I recently had the opportunity to meet the FreshMenu management and upon that realised the challenges this start up is facing in gaining market share.
The current FreshMenu customer is corporate / working singles, tech savvy, modern, experiencers — wants self expression, are early adopters who want to experience being different.
But since its not a good idea to put all your eggs in one basket, therefore FreshMenu also wants to expand its T.G. to the segment of families and traditional population. This segment mostly focusses on building a better family rather than going out and spending high amount of money on food and other lifestyle goods. They believe in becoming better individuals and families and this is their way of self expression.
The current segment size of FreshMenu TG in Bangalore is around 1.24 million.
And it can readily tap into another 2.2 million comprising families with the correct campaign ideas, without any necessary variation in product, price or distribution.
Fresh Menu would be serving close to 17,000 orders daily at an average meal price of Rs 200 in Bangalore. Just by targeting this segment, it can expect revenue growth of 56% , assuming it will be able to capture 1% of the existing 2.2 million segment. Currently it is serving 1.4% of existing segment.
The reason FreshMenu should target the family segment is its increased loyalty and this will pave the way for it to become a household favourite passing on to the next generations.
Think about Amul, Maggi, Surf, Lifebuoy, Lux. They will always be in our Top of Mind Awareness, no matter how many new brands keep arriving.
So how do we excite this segment into buying a meal worth Rs 200–300 via online at least 4–6 times in a month?
I did a quick market survey, visited some traditional households in Bangalore to understand food and consumption from their perspective. An average of 60% time is spent on planning, sourcing and preparing food by any average homemaker.
She is concerned about the health of family utmost and does not approve of outdoor junk food, and she will take that extra effort to prepare and pack tiffin everyday. But in this routine of preparing 3–4 meals everyday , she looses out on the most important thing in her life — time for herself and time with family!
Thinking on these lines I came up with a campaign idea for FreshMenu #EndBoredom. The campaign targets the homemaker who is the decision maker when it comes to food. Here is a look of the campaign teaser.
The campaign focusses on giving independence to homemakers and is meant to uplift them from usual homemakers to effective mothers, wives and individuals, for whom spending quality time with family and focussing on the families overall wellbeing is much more important than putting home cooked meals on the table everyday.
Other ideas on the way! Stay Tuned. Stay Creative.
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