The mid-2000s were the birth of the many subscription services we have today. Everywhere, consumers were growing curious about the new ways they could enjoy their entertainment, signing up for platforms like Netflix, Spotify, and more. So, imagine their astonishment when a little company called Blue Apron brought that same subscription model into the kitchen? Since then, the meal-kit industry has continued to grow exponentially, just as its founding father executes a total brand relaunch.
Yes, that’s right. Blue Apron is moving away from its original subscription-based model to an à la carte meal-kit service. Will this shift help the gourmet meal-kit company defeat Hello Fresh, the reigning market leader? Or will this bold move force Blue Apron out of the kitchen forever? We’re marinating on these questions and more.
A Robust Menu of Meal Kit Services
Before its brand relaunch, Blue Apron positioned itself as a gourmet meal-kit service. Using chef-inspired meals, customers could master cooking with new ingredients and culinary techniques. Throughout most of its history, Blue Apron wielded a luxury position that brought a high-end dinner experience to the homes of consumers who would consider themselves “foodies.”
However, it wasn’t long before other brands emerged in the industry, which ultimately led to Blue Apron’s transition from thriving to a complete brand relaunch.
Kroger brand Home Chef, as an example, is a meal-kit service that provides portion flexibility and streamlined menu selections to accommodate the needs of larger families. In a similar fashion, EveryPlate stands out as the budget-friendly option, and Green Chef focuses its menu on organic, health-conscious meals.
Towering above all of these services, though, is the meal-kit giant HelloFresh, which stakes its claim as the convenient solution for individuals and families with busy lifestyles. Today, the Berlin-based brand commands about 70% of the market.
So, how did HelloFresh overtake industry pioneer Blue Apron? HelloFresh made its mission the defeat of previous market leader Blue Apron. The dinner-made-convenient brand launched an aggressive marketing strategy involving heavy direct mail promotions for first-time users, podcast sponsorships, and a substantial investment in digital advertising. And at the same time, Blue Apron, growing too comfortable and taking its foot off the marketing gas pedal, left the field wide open for HelloFresh to expand its brand awareness.
HelloFresh’s dominance then continued through a series of strategic horizontal expansions. By acquiring brands like Green Chef and EveryPlate, the company not only owned meal-kit convenience, but also its green and value options. It even made moves into adjacent markets with the acquisition of Factor, a healthy, ready-to-eat meal service.
Along with these leading brands, Blue Apron also faced off against others — like Marley Spoon, Dinnerly, and Sunbasket — all itching to carve out their own consumer base.
Can Blue Apron Rise Above Sous Chef Status?
So, with this many cooks in the kitchen, it’s no surprise Blue Apron is looking to rectify its mistakes and retake its crown. But what’s the main messaging behind its brand relaunch?
According to Raina Enand, vice president of marketing for Blue Apron, it comes down to leveraging subscription fatigue.
“Life is really different now,” she shared in an Adweek article. “Busy families need more control and flexibility.”
Blue Apron claims it’s bringing the change modern individuals and families need through its new pricing structure. The brand relaunch is ditching the traditional subscription model to give customers à la carte purchasing options. The brand is also offering three different approaches to its chef-inspired dinners. Along with the classic meal kits, the brand is now offering Dish options, a collection of ready-to-eat meals, and Assemble & Bake options, a series of one-pan meals with minimal prep.
In a campaign entitled “Keep the flavor, Ditch the subscription,” Blue Apron is putting its brand relaunch on full display using a series of commercials that show customers there is another way to enjoy dinner without adding to their long lists of subscriptions. Each commercial features a bleak, modern existence starring familiar characters like an overworked professional, a stressed mom, and a tired couple as they look to soothe their souls with a delicious dinner.
The problem? A world run by subscriptions. The answer? Chef-inspired, easy-to-prepare meals by Blue Apron. Yet one question still lingers. Will this brand relaunch work?
Is This Brand Relaunch Positionist®-Certified?
As Positionists®, we stand for differentiation, and from the surface, this brand relaunch seems very similar to HelloFresh’s convenience-focused brand position. Likewise, an emphasis on effortless dinners could be considered contradictory to Blue Apron’s own chef-inspired meal-kit position, which was originally adopted to help consumers build their kitchen skills.
Branding aside, economic pundits have voiced their skepticism, namely that the pricing structure will dramatically reduce revenue and create operational inefficiencies that will prevent long-term sustainability.
And amidst the chatter, I’d like to posit a more optimistic take about this brand relaunch. Though the mechanics behind its position have changed, Blue Apron has not usurped the HelloFresh position or even abandoned its own chef-inspired position. While consumers are no longer required to cook their meals (though this option is available for fans), the brand still affirms meals are designed by chefs and include restaurant-quality ingredients — whether they’re cooked, assembled, or warmed.
Blue Apron isn’t disregarding its position; it’s innovating to meet consumer needs. Rather than copying the competition, this brand relaunch is sticking with differentiation — and capitalizing on it through its à la carte purchasing options.
A 2023 survey reports 78% of consumers claimed they would use more services if they only paid for the services they use. And in a world where entertainment, retail, health and wellness, and yes, even dinner is charged through a subscription plan, consumers are looking for a little more financial freedom.
This brand relaunch showcases that Blue Apron is innovating to today’s consumer perceptions. Rather than participating in the cycle of auto-payments, its giving customers room to breathe along with the option to enjoy quality cuisine when and how they like it. And with its new ad campaign, viewers are left with no doubt as to what Blue Apron is challenging.
So, from this Positionist’s perspective, the Blue Apron brand relaunch isn’t the last gasp, but the first bite of something very different.
Is your industry starting to feel crowded? Trust a team of skilled Positionists to execute a brand relaunch strategy that turns heads and stays true to the principles of differentiation. Contact us today to discover new ways to approach your marketplace.