Understand: Waycool

WayCool is a B2B (farm-to-retailer) agri-tech company that operates in 3 categories - Fresh Fruits & Vegetables, Grains & Staples and Dairy. The company has focused operations in South India and has raised ~$310Mn through equity and debt till date. WayCool handles more than 1200 tons of produce daily, with a network of more than 150,000 farmers. With a valuation of $722Mn, and strong revenue growth, WayCool has definitely hit PMF.

This project is focused on WayCool's fresh produce business that procures fruits & vegetables from farmers across India and sells it to retailers in Bangalore, Chennai, Coimbatore & Pondicherry. WayCool runs Collection Centers (CCs) in farm clusters where farmers bring their produce which is then graded and packed in crates. WayCool has distribution centers (DCs) in key demand clusters within a particular city for last mile distribution. The state-of-the-art supply chain built by WayCool ensures that the produce goes untouched from CC to DC and finally to the retailer thus preserving freshness and shelf-life.

Waycool App

The WayCool application is a retailer facing app available only on Android. It has 10k+ downloads on PlayStore. There were no discoverability issues found on Google Search or PlayStore. WayCool currently charges a price for each SKU and also charge a delivery fee:

Since WayCool is a transactional product, we need to introduce additional services to monetize. Introducing:

WayCool Platinum:

WayCool Platinum is an exclusive membership program (similar to VIP programs such as Zomato Gold) that has the following features:

Litmus Test

Retention Test ✅:

The retention chart for WayCool is as below:

Deeper Engagement ✅:

Based on user conversations with core and power users, the following data on their product usage were uncovered:

Willingness To Pay ✅:

Designed the following questionnaire for evaluating WTP:

Based on user calls, we received the following responses for WTP related questions:

✅✅✅Based on the analysis above, WayCool Platinum has cleared the Litmus Test.

Substitute Pricing:

What Core-Problem does your product solve?

Door-step delivery of high quality and consistent quality fresh produce, daily.

What are other ways to fulfill the same use-case?

1. Direct Competition - Ninjacart, BigBasket Mandi
2. Indirect Competition - Local Mandi/Wholesale markets

Validating what users are buying into:

Based on the user calls, it was clear that users were buying into Convenience, Quality and Support.

Pricing Design

Applying the framework to WayCool Platinum:

Who to charge?

WayCool Platinum will mostly be subscribed by core and power users although we will offer the subscription to everyone. Core and power customers come under the "Champions" and "Loyal customers" bracket. The pricing of WayCool Platinum will have no effect on churn as it is an add-on product but the success metric is the subscription percentage vs. the price.

When to charge?

The perceived value for WayCool in general is "Efficiency" as we design the supply-chain to be cheaper, faster and better. Let's see where in the customer journey the perceived value is much higher than the perceived price:

What to charge for?

The core value proposition of WayCool is door step delivery of good quality fruits and vegetables and the currency that helps users experience this value proposition is "OUTPUT" and this is what we will charge for.

How much to charge?

Value Creation

Before we decide how much to charge, lets do a deep-dive into Value Created by WayCool Platinum by looking at the cost saving for the retailer if WayCool Platinum is subscribed to versus competition.

Perceived Value

Based on user calls, I felt that there is a significant difference between value created and the perceived value of the product. To assume a conservative number, we will go ahead with calculating Perceived Value as 40% of the total value created:

Perceived Value = 40% of Value Created = Rs. 18,880

Perceived Price

1. To ensure that we get maximum total realization (price x volume), we need to keep the pricing within the WTP of the core users as the user base is higher in volume.
2. Since the Perceived value is Rs.18,880 we will price WayCool Platinum such that users see at least 10X difference between perceived value and perceived price.

Pricing Communication:

The WayCool Platinum will be a separate page on the WayCool app with the following creative: