This web app uses cookies to compile statistic information of our users visits. By continuing to browse the site you are agreeing to our use of cookies. If you wish you may change your preference or read about cookies

close

Why SnackCrate's Business Model is so successful?

Get all the answers


SnackCrate’s Company Overview


SnackCrate is a fast-growing, innovative online subscription service that delivers a monthly box of snacks from different countries directly to your door. The company takes great pride in curating a unique, globally-inspired snack experience for its members, sourcing hard-to-find snack favorites from destinations all over the globe such as Japan, Germany, Brazil, and more. Each SnackCrate box gives customers a taste of international flavors, and can also include fun surprises like drink options, candies, and even country-specific merchandize. SnackCrate focuses heavily on customer satisfaction, with a dedicated team ensuring the quality and freshness of each snack item included in the box. Business Model: SnackCrate operates on a recurring subscription model with three main subscription plans: Mini, Original, and Premium. Each of these plans offer a different assortment of snacks, with the premium plan offering the largest selection. Customers can choose either a monthly, semi-annual or annual subscription, with the price per box decreasing with a longer-term commitment. Subscribers can also purchase additional items to add to their box each month. Apart from its core subscription offering, SnackCrate also has a SnackShop where customers can purchase individual snacks from previous boxes, depending on availability. Revenue Model: As a subscription-based service, SnackCrate's primary source of revenue is the monthly subscriptions fees paid by customers, which can range from lower-tier plans to more expensive premium plans. With the option of monthly, semi-annual, and annual subscriptions, SnackCrate secures a consistent and predictable stream of revenue. Additional revenue is generated through the SnackShop, where individual snack items can be purchased separately. The company also earns revenue from shipping fees, with free shipping offered on annual subscription plans as an incentive for long-term commitment.

https://www.snackcrate.com/

Country: California

Foundations date: 2013

Type: Private

Sector: Consumer Goods

Categories: Food & Beverages


SnackCrate’s Customer Needs


Social impact:

Life changing: affiliation/belonging

Emotional: fun/entertainment, provides access, design/aesthetics, nostalgia

Functional: quality, variety, sensory appeal


SnackCrate’s Related Competitors



SnackCrate’s Business Operations


Add-on:

An additional item offered to a customer of a primary product or service is referred to as an add-on sale. Depending on the industry, add-on sales may generate substantial income and profits for a firm. For example, when a customer has decided to purchase the core product or service, the salesman at an automotive dealership will usually offer an add-on sale. The pattern is used in the price of new software programs based on access to new features, number of users, and so forth.

Cross-selling:

Cross-selling is a business strategy in which additional services or goods are offered to the primary offering to attract new consumers and retain existing ones. Numerous businesses are increasingly diversifying their product lines with items that have little resemblance to their primary offerings. Walmart is one such example; they used to offer everything but food. They want their stores to function as one-stop shops. Thus, companies mitigate their reliance on particular items and increase overall sustainability by providing other goods and services.

Collaborative production:

Producing goods in collaboration with customers based on their input, comments, naming, and price. It represents a new form of the socioeconomic output in which enormous individuals collaborate (usually over the internet). In general, initiatives based on the commons have less rigid hierarchical structures than those found on more conventional commercial models. However, sometimes not always?commons-based enterprises are structured so that contributors are not compensated financially.

Customer loyalty:

Customer loyalty is a very successful business strategy. It entails giving consumers value that extends beyond the product or service itself. It is often provided through incentive-based programs such as member discounts, coupons, birthday discounts, and points. Today, most businesses have some kind of incentive-based programs, such as American Airlines, which rewards customers with points for each trip they take with them.

Regular replacement:

It includes items that must be replaced on a regular basis; the user cannot reuse them. Consumables are products utilized by people and companies and must be returned regularly due to wear and tear or depletion. Additionally, they may be described as components of a final product consumed or irreversibly changed throughout the production process, including semiconductor wafers and basic chemicals.

User design:

A client is both the manufacturer and the consumer in user manufacturing. For instance, an online platform could offer the client the tools required to create and market the product, such as product design software, manufacturing services, or an online store to sell the goods. In addition, numerous software solutions enable users to create and customize their products to respond to changing consumer requirements seamlessly.

Subscription:

Subscription business models are built on the concept of providing a product or service in exchange for recurring subscription income on a monthly or annual basis. As a result, they place a higher premium on client retention than on customer acquisition. Subscription business models, in essence, concentrate on revenue generation in such a manner that a single client makes repeated payments for extended access to a product or service. Cable television, internet providers, software suppliers, websites (e.g., blogs), business solutions providers, and financial services companies utilize this approach, as do conventional newspapers, periodicals, and academic publications.

eCommerce:

Electronic commerce, or e-commerce (alternatively spelled eCommerce), is a business model, or a subset of a larger business model, that allows a company or person to do business via an electronic network, usually the internet. As a result, customers gain from increased accessibility and convenience, while the business benefits from integrating sales and distribution with other internal operations. Electronic commerce is prevalent throughout all four main market segments: business to business, business to consumer, consumer to consumer, and consumer to business. Ecommerce may be used to sell almost any goods or service, from books and music to financial services and airline tickets.

Niche retail:

A marketing strategy for a product or service includes characteristics that appeal to a particular minority market segment. A typical niche product will be distinguishable from other goods and manufactured and sold for specialized purposes within its associated niche market. Niche retail has focused on direct-to-consumer and direct-to-business internet sales channels. The slogan for niche retail is Everything except the brand.

Subscription box:

A subscription box is a regular delivery of retail goods to a client. Thus, subscription boxes are both a marketing tactic and a delivery mechanism for products. Subscription boxes are used by subscription-based e-commerce companies, abbreviated subcom, that operates on a subscription-based revenue model. They cater to a diverse client base and address a range of particular demands and interests. Since the subscription box business is still in its infancy, there is little data available. However, between 400 and 600 distinct types of subscription boxes are available in the United States alone, with more known internationally.

Selling of branded merchandise:

Merchandising, in the broadest definition, is any activity that helps sell goods to a retail customer. At the retail in-store level, merchandising refers to the range of goods offered for sale and the presentation of those products in a manner that piques consumers' attention and encourages them to make a purchase. Like the Mozilla Foundation and Wikimedia Foundation, specific open-source organizations offer branded goods such as t-shirts and coffee mugs. This may also be seen as an added service to the user community.

Embed code:

x
Copy the code below and embed it in yours to show this business model canvas in your website.