Industry Overview

• Based on secondary data, on an average D2C brands in F&B segment have a retention rate of 31%. (source)
• For TWT, the retention rate of it's customers are 85% (source)

From the above data points, assuming a retention rate over 12 months, here's a look at TWT's Retention Rate

The Whole Truth has a repeat rate of 56% compared to other above average brands who have a repeat rate of 35%.

This validates that most of their users have higher frequency of use and engage with the brand frequently.

Hitting PMF with a strong CVP, TWT has a flattening retention curve along with high frequency of use. The Whole Truth has been monetizing its products since 2019.

Experiments:

1. Limiting launches through subscriptions:

For: Converting Potential loyalists to Loyal Customers and Champions

• Users subscribed to TWT can get early access to new flavor launches, new category launch. It can be checked by limiting the number of orders per user till the period it goes to the regular users
• The quantity can be 60-70% of the subscribed users. For example, 60 jars of peanut butters for each 100 subscribed users.
• Subscribed users can also get 10% discounts over and above regular discounts throughout their subscription
• Unsubscribed users will be given access to all products post 20 days after launch

2. Larger packaging of its Protein Powders' range:

• With 1kg packs of in its protein powder range, TWT should also bring 2kg protein powders
• This can be offered with a 5-7% saving on 2kg packs compared to 1kg packs
• This will increase the AOV of customers as it brings in higher value orders and also offers savings to the user

3. Cross-selling:

• TWT can sell its own branded shakers along with their protein powders at a discounted price
• TWT, in association with a bank, can launch a credit card which offers a guaranteed discount of 15% over and above regular discounts to their users
• Energy bars can be bundled with Chocolates and sold at a price which offers savings

4. Offering samples with regular orders:

• Offering samples of new category/new flavor launches can give users a teaser of what's new to come and offer
• This will compel the user into ordering the product, out of curiosity, and make them a regular user of it

TWT being a health-centric food brand, its CVP is offering a clean-ingredient snack with honest and transparent packaging.

Customers pay for the Trust and Transparency The Whole Truth gives to its users. This is what makes them stand out from its competitors.

Competitor Analysis

In the case of a Protein Bar, on a scale of 1-5

Whom to Charge?

Customer Segmentation based on usage

Further, segmentation based on RFM model

• Since TWT is a D2C brand under F&B segment, every user is monetized when they experience the CVP (i.e., when they buy the product to consume). However, assuming TWT brings in a subscription model, they can experiment and base their pricing on their Champion, Loyalist and Potential loyalist users.

When to Charge?

Since the timing to charge is a function of perceived value with respect to time, TWT's perceived value can be a combination of Dopamine and Efficiency. Let's see how;

Dopamine is experienced when the users use the product and they themselves experience the quality of ingredients, taste and the overall outcome of the product.

Efficiency is experienced when the product helps the user to hit their daily macros, help them in their weigh-loss journey, all of it without any guilt.

Efficiency may be experienced over a period of time, however Dopamine may be experienced after consuming the product every time.

For bringing in a subscription offer, the user can be offered a subscription after they have been activated (Ordering at least once in 45 days).

TWT vs Other brands:

TWT's core differentiator is the honest packaging and upfront labeling. Along with that, absence of chemicals, preservatives, additives, etc. makes their product stand apart from its competitors.

Its pricing is premium compared to its competitors because of the quality of ingredients and in-house manufacturing. This way, from procurement of raw materials to the final product, everything is under control of TWT. This also ensures the quality of the products is consistent and in alignment of the brand value.

Considering all the above factors, users are willing to pay for the quality and consistency offered by the products.

To make the users' experience even better, TWT can offer subscription to its Champion, Loyal and Potential Loyal users.

User Journey:

Mr. A, an active individual who works out 5 days a week and is conscious about their diet and macros is looking for a brand that offers guilt-free snacks and also helps them in achieving their long-term goals.

• D0: Mr. A discovers TWT and searches for the brand on google. Goes through its reviews and orders protein bars for trial.
• D4: The protein bars arrive and Mr. A goes through the unboxing experience of TWT. He experiences an AHA moment as the packaging is personalized with a small letter and he sees the label displays all the ingredients upfront. He further tries the product and experiences the quality of ingredients and taste.
• D5: He recommends the protein bars to his friends and family
• D10: Orders protein bars again from their website
• D12: The order gets delivered
• D12: An email or a WhatsApp message can be sent to Mr. A offering a subscription to TWT

What to Charge for?

CVP of The Whole Truth

The problem with food brands is that they lie. Or tell self-serving half-truths. The Whole Truth aims to rebuild the world's trust in food through its Core Value Proposition offering of 100% clean, transparent and honest food products.

TWT charges for this transparency and quality that they offer to the users.

How much to Charge?

For this section, we are gonna take different products TWT offers and base our pricing on their individual parameters

Since raw material procurement data of TWT isn't available, this is a guesstimate of their cost of products

Double Cocoa Protein Bar

Assuming a batch of 200 bars, with 10 batches a day, 60 a week and 240 a month, the cost of manufacturing 1 bar without factoring overheads and other variable costs is Rs. 45.55/-. Monthly - 21,86,000/- (45.55 x 200 x 240)

Now,

The total of RM + Fix + Variable costs come to Rs. 175/-

Current MRP of the Double Cocoa Bar is Rs. 150/

• Since the CVP of TWT is offering 100% clean ingredient snacks, the cost of RMs can not be compromised as it would further compromise the quality of it.
• TWT can refine their packaging a bit as it can bring down their cost.
• Discount periods can be shortened. Once in 45 days instead of the current once every 25 days
• Discount offers can be brought down. Tier discounting can be introduced based on user segmentation. A slightly higher discount to new users to get them to experience the product and for habit forming. As the number of orders increase, discounts can be cut down as the user aligns with the brand value and habit has been formed.
• Bundled products can be offered. This can bring down delivery costs as users can get multiple products at once. For example, Energy bars & Chocolates can be sold as a bundle. Peanut Butter and Muesli can be sold as a bundle.

Pricing Page

Current for Double Cocoa Protein Bar

With the current pricing page, the MRP of the product, i.e. the item total, has been slashed and a discounted price has been shown against item total. This anchoring style shows that the product is being offered at a discount to the MRP.

However, below it shows a listing discount of Rs. 60/- again which may indicate to customers that there is a discount of Rs. 60/- over and above the slashed price. This may confuse the customers.

For Other Products

• TWT uses the strike effect to showing its pricing. This gives the user a sense that they are getting the product at a discount.
• However, these products should also be sold at their original MRP as constant anchoring effect decreases the value of the product.
• Striking effect should only be shown during discount periods.
• It also uses social proofing by including ratings of its products. This helps users to make a choice.
• Its bestsellers, Protein Bars are placed in the middle which makes them highly likely to be ordered.
• Since AOV is low and it is medium to high frequency, TWT follows a System 1 design which offers enough information about the product to make a decision.