SaladTomatoesRamen Noodles
LobsterBaguetteHotpot
Dinner RollsSalmonPickles
Grocery App

A new product & monetization fit

Stuck on Discounts

Grocery App (real name hidden) was a direct-to-consumer e-commerce brand by a large Korean company well known for their nationwide chain of convenience stores. They were late to enter the competitive online grocery space and struggled with customer retention and monetization, as the business relied on discount deals to attract customers in absence of clear value proposition and a lack of model-product fit.

GROCERY APP 2.0

I led the project on behalf of Daylight Design, a premium consultancy founded by ex-IDEO leadership. The original RFP was just for UX redesign. However, after discussing the client’s business objectives with their executives, we agreed to expand the scope to redefine the service from the ground up — i.e., new Product-Market Fit (PMF) narrative discovery, hypothesis testing, mobile app product design, and execution proposals.

Please note: Some images on this page have been re-created and re-styled with placeholder content to illustrate the work process and the output without disclosing the actual deliverables.

Services Provided

Diagnosis

Brand & Service Audit
Executive Interviews
Secondary Research

PMF Discovery

Customer Interview
Research Synthesis
New Service Concept

PMF Validation

Value Prop Variant Pretotype
Language-Market Fit Test
Purchase Flow Test

Growth Strategy

Core Habit Loop
Activation Features
Pricing Strategy

Product Design

Preliminary Brand Styles
Interactive Prototype
App Screens Design

Execution Guide

Product Inventory Strategy
Shipping Strategy

A New Product Fit

The Four Fits Framework is used to create & examine startup strategies. In order to build a scaleble business, we need to think about these four components, and how all of these pieces fit together.

My team focused on re-defining the product to address these two fits in particular:

  1. Product-Market Fit: A verbal narrative and a set of visual artifacts that illustrate a new product hypothesis that aims to satisfy specific use cases of a currently underserved but scalable target market segments.
  2. Model-Product Fit: Proposals to align the monetization model’s friction level and value metrics with the product’s new core value proposition.
Market-Product-Channel-Model fit diagramMarket-Product-Channel-Model fit diagram, with Market-Product Fit highlightedMarket-Product-Channel-Model fit diagram, with Model-Product Fit highlighted

Qualitative Research

We started by conducting customer interviews, chatting with the internal executives, visiting the warehouse, secondary research, as well as a CX audit of the current app.

Extreme Customer: High sensitivity to quality, with high purchasing power and household staff
Warehouse Tour: Ground operations, automations, difficulties, shipping time slots
Extreme Customer: Time-constrained, minimal cooking, outsource and delegate
Internal Executive: Long-time expert on delivery, shipping, and logistics with a strong POV on “freshness”
Customer: Spends $500+ per month on grocery  apps
Extreme Customer: Early adopter to new vertical apps
CX Audit: Hands-on experience and evaluation of the signup & purchasing process
Internal Executive: Strategic needs for integrating offline store delivery and quick commerce
Customer: Uses multiple auto-shipping features
Customer: Hops between 20+ apps to buy food, depending on the needs and benefits
Brand-Product Fit Focused on “Fresh?”Single-Cart UX?Warehouse or Local Delivery?Which Customer Problem to Solve?

Sacrificial Concepts

As with any product strategy project, there were controversial, vague, and high-risk questions pertaining to what Grocery App 2.0 should be like.

These questions were grouped into themes, which were then mapped to 5-10 exaggerated app concepts.

We used the extreme versions of concept mockups during our customer interviews to facilitate customer reactions and accelerate our learning.

Familyship
Quality & Safety
Shop By Menu
Precision Delivery
Seasonal Fresh
By Group Size & Popularity
Mood-Based

Research Insights

Qualitative research findings indicated the main customer problem to solve is deciding what to eat for the upcoming meals in the next 24 hours, and suggesting products that will act as components of those menus.

That meant our inventory had to be overhauled to support the menu-based use cases based on the time of the day.

Red ocean market: Standout
Value Prop 
NeededApp Selection Criteria: Your InventoryDefines You FirstBrand-product fit: A New Take on 
‘Fresh’Customer mental model: Cook < PrepCustomer pain: The ‘Home-Cooked’ Dilemma
Inventory overhaul: Supermarket Inventory
Is Not Enough24-hr cycle: Different Needs
Throughout the Day24-hr mental model: Solve the 
‘What to Eat for the 
Next 24 Hours’ 
Problem

Inventory Overhaul

We conducted an audit of the overall product categories and major product search terms to identify a set of guidelines for overhauling the product inventory. This new inventory strategy became the foundational premise to the rest of the product fit hypthesis.

Existing Supermarket InventoryPurchase Trigger Items: Prepared, Cafe, Breakfast, Snacks, PopularHigher-Quality Perishables: Fresh, Healthy, SeasonalMenu Composition Items: Meal Kits, GarnishRemove from Inventory: Cooking Supplies, Non-Food
AS-IS vs. TO-BEAS-IS vs. TO-BE
Seafood: Traditional Seaweed 4gX16ctSeafood: Korean Clam Meat, Frozen 150g
Seafood: DHA Dried Squid Shred 180gX2ctSeafood: Fresh Norwegian Salmon Sashimi, Chilled 400g
Dairy: Fast Bowel Yoghurt 2ctDairy: Regular Milk 2300ml
Dairy: Sowanamu Triple Slice Cheese 20ctDairy: Danish Farm Organic No Salt Baby Cheese 17gX10ct
Bakery: Samlip Honey Hotteok Yoyo 192gBakery: Natural Yeast Moist Milk Sliced Bread 390g
Bakery: Jellybly Fruit Jelly 3+1Bakery: Maeil Derte Milk Cream Roll Cake 2 Types (Pick 1)
Search "Vegan": Bon Natural Organic Natural Pads Medium 18ctSearch "Vegan": Heinz Vegan Mayonnaise 270ml
Search "Vegan": ES Organist Argan Nutrition Shampoo 500ml (Vegan)Search "Vegan": Yamiyomeal Vegan Rice Morning Roll 4 Types
Search "Kids": Green Finger Intensive Creamy Oil 180mlSearch "Kids": Bone-Free Fish 3 Types for Kids, Frozen
Search "Kids": CraftsmanEveryday Immune Plus Stick 15ctSearch "Kids": Kindergarden Pickled Vegetable for Kids
Search "Grape": Chocolate Grape GummySearch "Grape": Shine Muscat 600g
Search "Strawberry": JuicyTangy Strawberry Flavor JellySearch "Strawberry": GAP Certified Strawberries, 750g

Multi-Variate Concept Validation

After we identified a rough direction for the new product, we ran broad validation sprints to de-risk the overall concept direction and learn more about target customer’s preferences on the major variables.

In order to test multiple variables at once, I devised an approach to methodically encode our assumptions into App Store design mockups and then decode them so that we can analyze the responses both qualitatively and quantitatively.

New Concept target, problem to solve
"Can we move forward with this direction?"
"Which option 
should we choose for the high-risk
variables?"
Testable format
Vertical 1, 2, 3, 4
Customer type 1, 2, 3, 4
Use context 1, 2, 3, 4
Unmet needs 1, 2, 3, 4
Device 1, 2Market Variables: Vertical, Customer Type, Use Context, Unmet Needs, DeviceNew concept HypothesisProduct Variables: Pricing, Content, Items Sold, Brand & UX, Incentive Pricing 1, 2, 3, 4
Content 1, 2, 3, 4
Items Sold 1, 2, 3, 4
Brand & UX 1, 2, 3, 4
Incentive 1, 2, 3 4
App store variant 1 mockupApp store variant 2 mockupApp store variant 3 mockupApp store variant 4 mockup
Yum menu ideas
Buy together to save

Hotpot: Buy items together, save 5%

Thin-sliced US choice beef (5% off) - 1 ct

Organic napa cabbage (5% off) - 2 ct

Organic shitake mushrooms (5% off) - 0 ct (unchecked)

Hot pot soup base tablets (5% off) - 1 ctComponent 3: Use context 1, Items sold 1, Unmet needs 3, Unmet needs 4, Pricing 1Component 2: Use context 2, Pricing 1Component 1: Customer type 2, Unmet needs 4
Value Proposition Test - Component Level Anaysis

2 Graphs depicting "Like" vs. "Dislike" distribution per component
Weekly cycle1. Trigger: "What to eat tomorrow?"

2. Action: Purchase menu-based bundled items

3. Reward: Discovery, discount, overnight delivery

Core Habit Loop

New product strategy often leads to difficulty in getting users establish a habit around the new value proposition — a foundational requirement for retention and growth.

To help users establish a new habit loop, we arrived at the following activation trategies:

  1. Offer impressive welcome deals for new customers that consist of multi-item bundles.
  2. Bundle individual grocery items based on menu suggestions throughout the app, and make it easy to add the whole bundle to the cart.
  3. Enhance the habit loop with manufactured triggers such as daily new menu ideas and discount roulette notifications.
CustomersDesired New Habit: Add bundled items all to cartHabit-Forming Activation: 

Impressive Welcome Deal
Featured Bundles Throughout
New Menu Ideas Every Day
Manufactured Triggers
Butter Garlic Lobster For 2 - $1.00

US Prime Top Blade Steak Set - $1.00

Mediterranean Platter - $1.00"Welcome Deal" screenMoving touch/mouse pointer
Kid Friendly Bundles & ItemsBrowse by Theme & CategoryHealthy Breakfast Theme
Kid Friendly Theme
Lightweight & Special Diet ThemeEgg Mayo Sandwich: Buy together and save 10%. Add all 3 items for $20.95

Nappa Cabbage Hotpot: Buy together and save 8%. Add all 3 items for $23.34

Tomato Pastat: Buy together and save 20%. Add all 3 items for $9.61Moving touch/mouse pointer
Large Peeled Shrimps 400g - Plump in July & August

Cleaned Cuttlefish 300g - Straight from the West Coast

Marinated Freshwater Eel - Hot Weather FavoritePopular NowMoving touch/mouse pointer
Bad: High pricing friction, Low value prop friction
Good: High pricing friction, High value prop friction
Good: Low pricing friction, Low value prop friction
Bad: Low pricing friction, High, value prop friction

Model-Product Fit

The friction level of the monetization model needs to match how the value prop is experienced by the customer.

In order to lower the pricing friction and increase the Model-Product Fit, we devised a pricing scheme to offer small discounts (3% or more) when you buy any of the items listed in the menu-based bundles.

BaguettePickesSalmonSaladsWatermelonGrapesTunaHotpotLobsterRamen NoodlesDinner RollsBaguettePickesSalmonSaladsWatermelonGrapesTunaHotpotLobsterRamen NoodlesDinner Rolls
TomatoesHotpotPickesRamen NoodlesRed cabbageEggsSalmonLobsterBaguetteDinner RollsSaladsTomatoesHotpotPickesRamen NoodlesRed cabbageEggsSalmonLobsterBaguetteDinner RollsSalads
Red cabbageRamen NoodlesHotpotPickesHoneySaladsEggsLemonsSalmonWatermelonLobsterRed cabbageRamen NoodlesHotpotPickesHoneySaladsEggsLemonsSalmonWatermelonLobster
Ramen NoodlesHoneyEggsHotpotLobsterTomatoesLemonsGrapesPickesDinner RollsSalmonRamen NoodlesHoneyEggsHotpotLobsterTomatoesLemonsGrapesPickesDinner RollsSalmon
GrapesWatermelonSaladsHoneySalmonPickesTunaLobsterDinner RollsHotpotBaguetteGrapesWatermelonSaladsHoneySalmonPickesTunaLobsterDinner RollsHotpotBaguette
15% OFF21% OFF8% OFF
$26.13$22.21$20.79
$16.70$14.20$12.78
$7.85$6.67
$1.58$1.34
HotpotPicklesRamen noodle15% off10% off

Product & Visual Design

A preliminary set of visual and UX styles were developed to convey the curated bundle-based value prop and “fresh” brand fit.

More like: Online app, Editorial, Aiding

Less like: Offline market, Widgety, Asserting

Humanistic Display Font
Highly Legible Body & Number Font

Calm, Spatial, Proportional Layout

Swipe-Friendly UI

Colors: Primary Green, Yellow, Red, Blue, Brand Green, Neutral Grays
Mobile app mockups

“A team leader who fluidly combines Design Thinking and Growth methodologies — with impressive results.”

Daniel headshot
Daniel Kim
Partner, Daylight Design
Poster mockup: Welcome deal adPoster mockup: Customer

In Just 4 Months...

UX and brand perception audit

Customer & secondary research

New product value prop hypothesis

Broad validation

Core habit loop & use cases

Habit-forming activation hypothesis

Pricing model & product fit strategy

New inventory principles

Delivery slots & flow redesign

Prelim product design & prototyping

Prelim visual design & info architecture

Product images from Coupang, Kurly, Amazon, Oasis Market, and GS Freshmall.
© Copyright-year Keywon Chung