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Pesticide.ID is the Yelp of food safety
Mentor Engagements
Total: 6
Customer Interviews
Total: 105
Alex Luce Mahara Inglis Jenn Kimbal Anthony Baldor
An exciting up and down game
for graduate students!
LAUNCHPADS
Our Journey – Table of Contents
Consumers
Retailers
“Manufacturing” and Distribution
OrganicCertifiers
New Parents
START FINISH
Phase I: Consumers
Week: 1-2 Interviews: 30 Target Interviews:
Health conscious Worried well
Phase summary
Value propCustomers want peace of mind regarding food quality
Customer segmentsWhole foodies
“Yes- consumers need more transparency and deserve to know what's in their food”
“Yes.. I’d definitely be interested in something like that”
Some good….
“No - I’d want the store to do it”
“No, - I trust the labels”
Some bad….Customers want an affordable way to test their food for contaminants
• The existing system is good enough:• Consumers trust grocers• grocers trust wholesale / regional distribution
• Someone else’s problem• People want quality, not “purity”
4
Grocer
Farmer’s Market
Regional Distribution
Produce Wholesaler
Farm
SMB Food Business
Consumer
Phase 2: Retailers
Week: 3 Interviews: 14 Destination:
Grocery Stores Target Interviews:
Produce buyers Produce section
managers
Phase summary
Phase 3: Up the food chain – “Tulare or bust”
Week: 4-6 Interviews: 30+ Destination:
World Ag Expo, Tulare, CA
Target Interviews: Farmers Distributors Suppliers Pesticide Mfgrs Organic Certs
Phase summary
Existing test costs
New Pesticide ID test costs
0 200 400 600 800
Test KitLabor
Cost (USD)
Pesticide ID is significantly cheaper than existing testsPesticide ID is significantly cheaper than existing tests
BUT,1) small TAM 2) need to replace incumbent technology3) pesticide mfc’s do their own internal testing
BUT,1) small TAM 2) need to replace incumbent technology3) pesticide mfc’s do their own internal testing
USDA
Pesticide Residue Testing Workflow
Sets rules, guidance. Accredits organizations to provide certification
CCOP/FSC/OMRI
Organic Certifier
OMEC
Independent Lab authorized by USDA to perform tests.
Authorization
Food Sample +$700
$
$
Organic Farms
Payment for certification
subject to spot testing
Key FlowsFoodMoneyInformation
$
Phase 4: Food Safety Market: Select Opportunities
Week: 6 Interviews: 22 Destination:
Santa Cruz Washington DC
Target Interviews: International food
processors Global food
processors (Del Monte)
Marijuana Dispensaries
Marijuana testing companies
Phase summaryOur potential opportunities:
1. International food aggregators
2. Chinese consumers
3. Legal marijuana
4. Allergies
5. Resegment consumer market Start here with new parents
Go Bears!
Phase 5: Focus on Parents and Pivot
Week: 8 Interviews: 12 Destination:
None Target Interviews:
New moms New Mom networks
etc. Pediatricians, nurses,
midwives Doulas
Phase summary
“I don’t want the strips but if I could have the information on my phone…now that would be great” – Anna, Expectant Mother
“I don’t want the strips but if I could have the information on my phone…now that would be great” – Anna, Expectant Mother
“This is not market ready” – Pesticide ID team“This is not market ready” – Pesticide ID team
New mothers are highly connected and get information from 4 sources
New mothers are highly connected and get information from 4 sources
The Journey Continues…
tweet us @Pesticide.ID using #pesticides!
• Changes in regulatory environment Food safety modernization act, rule 6
• Black swan (random) event • e.g. large scale event highlights foibles of current food safety system
• Other factor that causes mass change in consumer interest in food safety
Test, test, test validate our business model through a series of tests:• Launch MVP of Pesticide ID website• Gain traction via social media • Physically test products to determine actual need for improved food
safety monitoring
What is needed for Pesticide ID to take off ?
Our investment thesis requires:
…but in the meantime we’ll...
LINK!
The Journey Continues…
Time
(months)Today 3 months 6 months 9 months 12 months
Customer research
Develop product
Early prototype development
Refine prototype
Customer interviews on new business model
Uptake/feedback from social media
Demand generation
Create original content on food safety on pesticideID.com
Identify and recruit early evangelists
Identify key food safety advocacy partners
MVP of Pesticide ID website
Appendix
12
Pre-class Phase 1 Phase 2 Phase 3 Phase 4 Phase 50
1
2
3
4
5
6
7
8
9
10
Level of market understanding
Belief in market readiness
Understanding vs market readiness
□
Customer Characteristics
Leader of Planned Parenthood’s Pajaro Valley Health Action Team in central California
She is tertiary educated and highly informed on issues pertaining to food and safety
Currently works with farmers, regulators, activists to create policy to reduce negative aspects of pesticide exposure
Information Sources
1. Medical professionals – pediatrician, nutritionist
2. Web – Google, Wholesome baby food
3. Other mothers – coffee groups or apps
4. Non-medical - Doulas
13
Crusaders Customer ArchetypeCustomer Lifecycle (food concerns)
BirthPregnancy
No soft cheese, fish, deli meats, smoking, alcohol.
Concerns: heavy metals, pesticides.
Breastfeeding
Concerns: heavy metals, pesticides in mother’s diet.
Early Eating
Concerns: contaminants, heavy metals, pesticides in child’s diet.
Key Insights
Each group of new mothers has 1-2 crusaders who are passionate and highly concerned about everything related to their baby
Traci Townsend
□
Customer Characteristics
Sarah is an educated, upper middle class, 31 year old new mother.
She has a 3 month old daughter she is breastfeeding and is concerned about any contaminants in her food that may be passed onto her child.
Information Sources
1. Medical professionals – pediatrician, nutritionist
2. Web – Google, Wholesome baby food
3. Other mothers – coffee groups or apps
4. Non-medical - Doulas
14
New Parents Customer ArchetypeCustomer Lifecycle (food concerns)
BirthPregnancy
No soft cheese, fish, deli meats, smoking, alcohol.
Concerns: heavy metals, pesticides.
Breastfeeding
Concerns: heavy metals, pesticides in mother’s diet.
Early Eating
Concerns: contaminants, heavy metals, pesticides in child’s diet.
Key Insights
Not all mothers are as concerned as one another. Some are fairly trusting of the
current food labelling Many begin buying organic
to be ‘healthier’ but would like to stop if it offers no benefit.
There can be significant pressure between mothers
Diagram of Payment Flows
Strip Manufacturers Customer
UC Davis
Freemium
Paid
40% conversion
Premium Product - Subscription price per month $4.95
Churn rate 10%
Base to Premium Upsell rate 40%
Customer LTV $17.82
license fees
16
Value Proposition Canvas
Provision of information
Easy access
App for information
Strips for testing
Easier access to information
Peace of mind about food
Improves well-being of children
Fast access to data
Expensive testing
Simplicity
Not appearing to care for child
Takes too long
Raise a healthy child
Balance multiple priorities
17
Channel Complexity
SOLUTION COMPLEXITY
MA
RK
ETIN
G
CO
MPLE
XIT
Y
Organic food
Existing test kits
18
Partners, diagram, money flowN
ew T
estin
g Te
chno
logi
es
Regulation
Phase Design Research
Academic
Information/
Food Safety
Awareness
Establish long-term legitimacy• SBIR/STTR with UC Davis• Publication in scientific literature
Internal validation testing of UC Davis technology: • Screen local produce• Get coverage in local newspaper,
tech blogs
2015
• Contract Manufacturing Run• 1000 units
Costs
20142013
Patent filing
Pesticide Detection: Methyl Iodide, BromideTech ID: 23321 / UC Case 2013-757-0
• Exclusive License
• Additional Enabling Tech License
Resources and development timeline
Establish legitimacy: • Start food safety blog to
educate young mothers• Start objective marketing and
distribution effort based on reviews/consumer reports
Revenue: ANP Marketing/Distribution Blog advertising revenue
Blogger Manufacturing Testing
Viral blog &
FB coverage
• Large Manufacturing Run
STTR grant with UC Davis Blog/marketing
Academic acceptance
and support of KOLs
LeanLaunchpadEnds
Big sales and distribution push • Subsidize evangelists• Roll out database subscription
product• Partnership distribution with baby
boxes• FB/Google Adwords campaigns• Baby storefront sales reps
Steve Blank-leads Seed Round
Strategic exit to perinatal
consumer products
conglomerate
2016 2017
Strip giveaways Advertising/Sales reps
App subscriptions Product sales
Grant writing Manufacturing II
Phase 2: Retailers
• The existing system is good enough• Someone else’s problem• People want quality, not “purity”• One week of interviews?
21.Consumers• Whole Foodies• New Parents1.Grocer• Yasai Produce• Monterey Mkt4.Food Entrps and SMB owners• Amy’s• Annie’s• 18 Rabbits5.Distributors• Veritable
vegetables
Childbirth Educators
• Doulas• Lactation
Educators
Hospital system
•Pediatricians•Pediatric
NPs
Community• Other new
parents•Mom networks•Baby Stores
Internet•Facebook•New parent blogs•Mom networks (virtual)
It Takes a Village to Raise a Child
21
Strategic Partners
✗
✔
✔
✔
$
(and SBIR)
$(and
earned)
$$$ (details in forthcoming channel slides) PRODUCT
SBIR Opportunities
NIH FDA
USDA Food Science and Nutrition
food-borne pathogens
Food preservation
Nutrition awareness/ obesity prevention
Affordable food to combat obesity
HHS (Health and Human Services)
National Institute on Allergies and Infectious Disease
Center for Food Safety and Applied Nutrition (CFSAN)
Support FDA Regulation
Reduce foodborne illness, toxins, etc.
detection, prevention, and control of contamination
Center for Global Health (CGH)
Colorimetric assay to measure insecticides
National Science
Foundation
ET1- Environmental Monitoring and Mitigation
Sensors/methods to reduce use of pesticides
EI – Electronics, Informatics, and Communication
Technologies, environmentalSensors
SBIR LandscapePhase 1
up to $150k for 6 mo.
Phase 2
up to $2M for 2 years
Phase 3
lab->market
STTRUp to $200k for 9 mo.
need academic research partner
Childbirth Educators
• Doulas• Lactation
Educators
Hospital system
•Pediatricians•Pediatric
NPs
Community• Other new
parents•Mom networks•Baby Stores
Internet•Facebook•New parent blogs•Mom networks (virtual)
It Takes a Village to Raise a Child
23
Strategic Partners
✗
✔
✔
✔
$
(and SBIR)
$(and
earned)
$$$ (details in forthcoming channel slides) PRODUCT
24