Businessmodel of NatureBox

Customer Segments

NatureBox has a mass market business model, with no significant differentiation between customer segments. The company targets its offering at anyone who wants healthy snacks delivered.

Value Proposition

NatureBox offers six primary value propositions: accessibility, customization, cost reduction, risk reduction, convenience, and brand/status.

The company creates accessibility by providing a wide variety of options. It offers over 100 unique snacks, and adds 3 – 4 new snacks to its portfolio every month. NatureBox also increases access by delivering its snack boxes to not just consumers’ homes, but also corporate offices.

The company enables customization through its service. Customers can choose whatever snacks they want, and tailor them to their dietary preferences/needs (non-GMO, gluten free, vegan, etc.). Also, they can pick the number of snacks per box, and specify the frequency with which their boxes are delivered (once a month, bi-weekly, etc.). Furthermore, if users rate their snacks on the company’s website after consuming them, NatureBox provides personalized recommendations in the future.

The company reduces cost in a number of ways. For first-time users, it makes two out of their first five boxes free. Further, there are no shipping charges. If a customer does not like the snacks they chose after tasting them, they are replaced for free in the next box. Lastly, users can change elements of their subscription, skip a box, or cancel their membership at any time at no cost.

The company reduces risk by developing all of its products in-house and making its snacks as healthy and safe as possible. It guarantees that its products have:

• Simple, high-quality ingredients
• No artificial elements (flavors, colors, or sweeteners)
• No MSG
• No trans fats
• No high fructose corn syrup
• No partially hydrogenated oils
• Less than 200 calories per serving The company offers convenience by delivering its products directly to the door of its customers.

The company has established a strong brand as a result of its success. It serves consumers in all 50 states, and its customer base grows at a rate of 50-100% per month. It has a number of prominent corporate clients, including Visa, Apple, Tesla, Electronic Arts, VMware, Gap, and Match.com. Lastly, NatureBox has won a number of honors, including a National Parenting Product Award.

Channels

NatureBox’s main channel is its website. The company also sells its products in the Target chain of retail stores, and uses a direct sales team for corporate customers.

NatureBox promotes its offering through its social media pages, offline advertising methods such as TV and radio, participation in conferences, and partnerships with hunger- and health-focused nonprofit organizations.

Customer Relationships

NatureBox’s customer relationship is primarily of a self-service, automated nature.

Customers utilize the service through the website while having limited interaction with employees. The website provides answers to frequently asked questions.

That said, there is a personal assistance component in the form of phone, e-mail, and live chat support.

Key Activities

NatureBox’s business model entails designing and developing its products for customers.

Key Partners

NatureBox relies on a network of suppliers to provide the ingredients for its products. It utilizes a fulfillment center to process and package its orders.

Lastly, the company maintains a distribution partnership with Target, the only retail chain where its products are sold.

Key Resources

NatureBox’s main resources are its human resources, who include food experts that design and develop its offerings, sales personnel that promote them, delivery employees that transport its boxes, and customer service staff that provide support.

As a relatively new startup it has relied heavily on funding from outside parties, raising $58.5 million from eight investors as of May 2015.

Cost Structure

NatureBox has a cost-driven structure, aiming to minimize expenses through significant automation and low-price value propositions.

Its biggest cost driver is likely cost of services, a variable expense. Other major drivers are in the areas of sales/marketing and customer support/operations, both fixed costs.

Revenue Streams

NatureBox has one revenue stream: revenues it generates from the subscription fees it charges for monthly access to its snack delivery service.