FreshPlate is a direct-to-consumer meal kit company with $180M annual revenue, operating in 12 U.S. states and serving 420,000 active subscribers. The company is profitable in its core Northeast markets, where aided brand awareness is 34%, but growth has slowed to 6% year-over-year versus 18% two years ago. Management is considering expansion into the U.S. Southeast with a lower-priced offering aimed at value-conscious households. You are the strategy manager asked to define what market research techniques should be used to gather and analyze market data before the company commits capital.
The CEO wants a recommendation within 8 weeks on whether FreshPlate should enter the Southeast and, if so, which customer segments, pricing points, and channels to prioritize. Leadership is concerned that internal data from current customers may not generalize to a new region with different demographics, grocery habits, and competitive intensity. The company does not want a generic research plan; it needs a practical, decision-oriented approach that combines market sizing, customer insight, and competitor analysis.
| Metric | Current Business | Southeast Expansion Hypothesis |
|---|---|---|
| Active subscribers | 420,000 | Target 60,000 in 24 months |
| Average order value | $68 | Expected $54-$60 |
| Gross margin | 31% | Expected 24%-28% in year 1 |
| Monthly churn | 5.8% | Assumed 7.0%-8.5% |
| Marketing CAC | $92 | Budgeted cap of $120 |
Additional market facts:
Please outline how you would approach the market research and analysis. Address the following: