Brand audit - group

Executive Summary

HelloFresh is a pioneer of the meal-kit concept that was disruptive to the current market when it
became popular during the pandemic (HelloFresh Group, 2021). The branding of HelloFresh
focuses on promoting the simplicity of the meal-kit, its fresh ingredients and its sustainability
initiatives which has gathered it a large customer base. After conducting research, we have
identified the strengths and weaknesses of HelloFresh’s current position in the market, its
competitive advantage, and from that derive a repositioning for HelloFresh to make use of its
USP. Our proposed brand positioning statement for HelloFresh is: “HelloFresh aims to reinvent
the kitchen experience to be innovative and fun, yet achievable and available for everyone.”

(i) Industry and market overview

HelloFresh operates within the meal kit delivery industry, providing consumers with convenient
access to healthy food options from the comfort of their own home. Currently, the market size of
the meal kit delivery service industry is valued at $1.5 billion in 2022 with a growth rate of
56.4% in Australia between 2017 and 2022. (IBIS World, 2023). This can be attributed to the
Covid-19 pandemic in 2020, which caused a significant level of uncertainty and health concerns,
increasing the use of meal kit delivery services such as HelloFresh as they were considered a
safe alternative.

Health, nutrition and vegetarianism/veganism also rose during the pandemic period as consumers
were looking to improve their overall immune systems. According to the international food
information council’s (IFIC) 2020 Food and health survey, 54% of all consumers care more
about their food and beverage quality in 2020 than they did in 2010 (IFIC as cited by Lempert,
2020). Moreover, veganism and plant-based diets have continued to grow in the past decade with
plant-based dairy and meat sales accumulating to $29 billion USD in 2020 and projected to
increase to $162 billion USD by 2030 (Minassian, 2022). Endorsements from athletes such as
tennis star, Venus Williams or five-time formula One world champion, Lewis Hamilton, has also
increased the popularity of the diet, showcasing the strength of vegan and plant-based diets for
athletic performance.

Another trend in the delivery meal kit industry is the influence of technology and the natural
environment on HelloFresh and its competitors. With the rapidly evolving nature of technology,
HelloFresh can now be purchased on mobile phones, allowing simple but efficient consumption.
During the coronavirus, health was a major concern and minimising risks with technology
ensured many competitors including HelloFresh could thrive in the online environment. In
regards to the natural environment, sustainability and minimising environmental impact has
become a prevalent issue in recent contexts. Environmental concern has raised questions on the
intentions behind brand behaviour, resulting in consumers switching to sustainable brands.
Within the delivery service industry, eco-friendly packaging has become popular, food waste has
reduced and sustainable practices have been implemented to address environmental concerns.

(ii) Delineation of target audience

The audience HelloFresh targets their products towards can be segmented into two categories.
First is busy professionals and working parents, aged between 25 and 45. These individuals are
either preoccupied with caring for their children or consumed heavily with work-related events
and hence are looking for a convenient, time-saving alternative for meals that are delivered to
their homes. The other target audience would be health-conscious individuals between the ages
of 25 and 55 who are looking for healthy options, vegan/plant-based substitutes or seeking
balanced and nutrient-dense meals. With the rising trend in veganism and plant-based meals,
HelloFresh has catered its product mix to provide a variety of healthy meal options for all.

(iii) Brand inventory

The HelloFresh branding is considered quite iconic and distinctive, with a white background and
a green lime as its current logo and company name typically written in a contemporary font that
aims to elicit the feeling of freshness and friendliness (John, 2020). HelloFresh seeks to make
cooking at home simple and pleasurable by offering its clients fresh, high-quality products and
chef-designed recipes. The company's mission statement is "We change the way people eat
forever.”, referring to the meal-kit delivery model that aspires to replace traditional grocery
shopping and cooking at home due to its advantage of being simple and time-saving.
HelloFresh’s brand mantra, along with its competitors, is summarized in figure 1.
Figure 1: Brand mantra

HelloFresh’s current logo is reflective of its emotional and descriptive modifiers. However, we
identified that the brand functions of providing simple meal kits are not cohesive with the current
brand image. Notably, many other brands portray this “quick & easy” personality much more
effectively than HelloFresh, including youfoodz and EveryPlate.

As a multinational meal kit delivery service provider, HelloFresh is organised hierarchically. In

addition to the board of directors, executive leadership teams, and staff, they work in partnership
with numerous other businesses to support their services and goods on the market. Furthermore,
HelloFresh is very successful in the social media and marketing aspects. They are always
looking for companies and individuals who share common interests and want to form
partnerships. (Custom Collaborations | Partner with HelloFresh Group, 2023).

Figure 2: HelloFresh’s partners

HelloFresh’s branding emphasizes heavily on being friendly and inclusive. First of all, the name
“HelloFresh” essentially sums up what they want people to know. Greetings to new clients, with
the epithet "Fresh" referring to its ingredients. In terms of the actual product, HelloFresh
implements a 100% kerbside recyclable paper cool pouch that keeps its foods fresh (HelloFresh,
n.d.).

The consistent brand color of lime combined with other vibrant colors were implemented to elicit
a feeling of liveliness and excitement (HueBold, 2023/ figure 3). HelloFresh created a webpage
titled "Embrace your cooking personality with HelloFresh" where it listed five personas that
would be present in the community (HelloFresh, 2023). Along with many community building
efforts and its strong social media presence, it is clear that HelloFresh wants to articulate a
friendly and inclusive image that would allow it to reach a wide consumer segment.

Figure 3: HelloFresh’s packaging color palette (HueBold,2023).

HelloFresh’s brand personality is also reflected its initiatives towards sustainability and reducing
food waste. Their packaging helps reduce waste and is user-friendly in addition to safeguarding
the environment and the health of customers. For instance, all its meal-kit bags and boxes,
including the stickers, are made of recyclable materials (HelloFresh, n.d.). The website also
guides users through the process of recycling and reusing, such as telling them to reuse the cool
pouch.

Last but not least, a large number of marketing campaigns promotes the simplicity of its meal-
kits. For instance, HelloFresh’s YouTube videos would talk about how easy and fast it is to cook
following the instructions (HelloFresh Australia, 2020).

In conclusion, the brand elements work together achieve its three main goals of maintaining
ingredient freshness, cutting waste, and improving consumer convenience. It contributes
significantly to overall consumer loyalty, brand awareness in the market, and brand
reinforcement of the brand identity.

The company operates in the meal-kit delivery market, which is a growing segment in Australia
that has an annual growth rate of 12.99% (Statista, 2023). Within the market itself, there are
many similar competitors, namely MarleySpoon, youfoodz and EveryPlate. According to Yang
(2022), HelloFresh isn't just competing with other meal kit services but also with traditional
grocery stores, for instance Woolworths and Coles (Statista, 2022), grocery delivery platforms,
and online food delivery services. Companies in these markets are considered indirect
competitors due to the fact that they also have the same target market of people who needs
simple and and time-efficient meals.

The use of fresh and high-quality ingredients is also displayed in several competitors, making
freshness a point of parity. In addition, the simple fact of not having to go grocery shopping or
plan meals is a point of parity, as most meal kit services provide this extra benefit. Gobble,
HelloFresh’s competitor, on the other hand, has a competitive advantage in terms of preparation
time; they focus on offering meals that can be made in 15 minutes or less, making it a time-
saving solution for busy individuals and families (ref). In comparison, HelloFresh requires
consumers to spend approximately 30 minutes finishing their meals.

A key component of HelloFresh's appeal to its target audience is to disseminate the joy of
cooking. To make a lasting impression and gaining the trust of their customers, it has
concentrated on all the components of their products across all channels, from its website to their
packaging (Chameleon Web Services, 2023). For instance, the brand designed its own series of
‘cooking gestures’ that would allow customers to engage in a delightful and homemade
experience (Figure 4/ John, 2020).

Figue 4: series of ‘cooking gestures’ (John, 2020)

Social media is also crucial to HelloFresh's success and positioning. Its social media pages
publish appealing images of its meals, consumer reviews, and posts about their connections with
well-known chefs and other third parties that provide generous discounts and gifts (HelloFresh,
n.d.). By fostering close relationships with the audience, this interactive strategy increases
engagement and the audience's exposure. HelloFresh encourages consumers to share their meal
creations using branded hashtags in order to grow the community they serve, and they frequently
highlight their clients on social media.

Furthermore, in addition to managing its social media marketing, HelloFresh works with home
cooks, lifestyle influencers, and food bloggers. By using this strategy, they were able to reach
specialized audiences and use the influencer's sincerity to promote their goods. Influencer
marketing has also satisfied customers who find HelloFresh through influencer
recommendations. As a result, their marketing reach was increased by the snowball effect and
went beyond the influencers' direct circle of influence (Chameleon Web Services, 2023).

In conclusion, HelloFresh is a good example of a well-positioned brand that satisfies the

necessary criteria, including having a foot in both the present and the future. However, there are
room for improvement.

(iv) Brand exploratory

In order to analyse HelloFresh’s brand associations, interviews were conducted to collect

primary data which was then utilised to create the brand association map (BAM) seen in figure 5.
The interview questions can be seen in the appendix. As seen above, when asked about
HelloFresh, the following can be deduced - HelloFresh is seen as a convenient, healthy meal kit
delivery service, providing consumers with a timesaving alternative for busy parents or adults.
HelloFresh had many favourable responses with interviewees considering the product to be
helpful and would buy again if they had previously purchased. However, some respondents
regarded the product as expensive, unnecessary or situational, as they prefer shopping for
personalised ingredients to save money and would only purchase HelloFresh when they have
reduced time.

Figure 5: Collective’s BAM

Brand equity is the commercial value a company gains from a product/service with its
recognizable name and branding, which consists of brand resonance, brand meaning, brand
response and brand identity (Hayes, 2023). HelloFresh's value proposition revolves around
simplifying the home cooking experience, offering utmost convenience, and providing
accessibility through the delivery of meticulously curated ingredients and chef-crafted recipes
directly to customers' doorsteps. The service places a premium on time savings in meal planning
and grocery shopping, all while ensuring that customers savor delectable homemade meals.
Furthermore, HelloFresh boasts a diverse array of meal options, encompassing vegetarian and
family-friendly selections, to cater to a wide spectrum of tastes and dietary preferences,
enhancing their market segmentation and appeal.

Figure 6: CBBE Pyramid

Katte's teaching case (2019) illustrates how HelloFresh, founded in 2011, rapidly ascended to
become a global market leader. HelloFresh's success can be attributed to its adaptability to
changing trends, investment in technology, and dynamic capabilities in making market-oriented
decisions which manifest a strong sense of brand performance of HelloFresh.

HelloFresh primarily targets time-pressed individuals and families seeking the pleasures of
homemade meals without the burdensome chores of meal planning and grocery shopping. This
service addresses a broad demographic, encompassing professionals, parents, singles, and
anyone in search of a streamlined meal solution. Additionally, HelloFresh strongly resonates
with health-conscious consumers, vegetarians, and those desiring portion-controlled meal
options, effectively appealing to diverse dietary and lifestyle preferences.

HelloFresh employs a comprehensive marketing strategy that encompasses online advertising,

social media marketing, influencer collaborations, and content marketing. HelloFresh actively
shares recipes, culinary advice, and user-generated content to both inspire and engage its online
community. Additionally, the company regularly offers promotions and discounts as incentives
to attract new customers.Furthermore, brand commitment plays an essential role in fostering
customers' feelings and brand resonance towards HelloFresh, as evidenced by Yuan et al. (2023).
Obviously, HelloFresh's commitment comes from being a part of customers' everyday lives.
People like it, recommend it to others and enjoy trying new recipes from HelloFresh.

HelloFresh's competitive advantage lies in its ability to offer a convenient and time-saving
solution for enjoying homemade meals without the burdens of grocery shopping and meal
planning. The service provides a wide range of meal options to cater to diverse tastes and dietary
preferences. Collaborations with influencers and food bloggers enhance the brand's credibility
and expand its reach. Diverse sources of revenue, including add-on purchases and the sale of gift
cards, contribute to the company's financial stability. HelloFresh's unwavering dedication to
quality and freshness ensures consistent customer satisfaction.Additionally, brand satisfaction, as
discussed by Yuan et al. (2023), is a key element in shaping positive brand judgment. It
encompasses factors like cost-effectiveness, meeting customer expectations, overall product
quality, and overall satisfaction. Notably, the cost-effectiveness, coupled with consistent delivery
on customer expectations and a diverse range of meal options, significantly contributes to
customer satisfaction with the brand.

Moreover, participants in the same study by Yuan et al. (2023) emphasize the perceived value of
HelloFresh, which further elevates its brand performance and brand imagery. People think
HelloFresh is valuable because it's convenient, easy to use, and allows them to try new recipe.
HelloFresh's ease of use and overall convenience not only enhance customer satisfaction but also
reinforce brand salience by effectively addressing customer needs. Brand trust is another
significant theme identified as a driving force behind brand loyalty, underscoring the positive
brand resonance of HelloFresh as mentioned by the same study of Yuan et al. (2023). Brand trust
is manifested in various ways, including brand reputation, brand experience, and brand referral.
Brand reputation is established through perceived trustworthiness, as participants express their
confidence in HelloFresh's ability to transform their food consumption habits. The brand
experience of participants also signifies brand trust, as they describe building trust through their
positive past interactions with HelloFresh. Additionally, participants highlight their initial trust in
HelloFresh, often stemming from referrals by trusted celebrities or their close network of friends,
family, and colleagues. This trust, whether inspired by celebrity endorsements or personal
connections, reinforces the brand's resonance (Yuan et al., 2023).
 (v) A “breath of fresh air” for HelloFresh

HelloFresh’s current marketing strategy is aimed towards the consumer market in which people
struggle to find time to cook daily. Women, especially those with a big family, feel pressured to
balance the time to cook for their child while having a full time job (Brenton et al., 2019).
However, critics who tested out the products concluded that the meals provided aren’t as simple
as HelloFresh previously claimed (Olsen, 2023). There are also better alternatives that are easier
to make and saves more time for customers, for example Youfoodz which only requires
customers to heat up the products (youfoodz, n.d.). Therefore, HelloFresh’s current positioning
may not be the most effective in terms of marketing, and a new positioning is needed for
HelloFresh to establish its ground in the meal-kit service industry.

Figure 7: perceptual map of HelloFresh and its current competitors

From part (iii), we’ve identified that HelloFresh’s unique selling point lies in its successful
community building as well as its initiatives to make cooking more fun and engaging for
consumers. Therefore, a repositioning is proposed so that HelloFresh could maximize its
potential in the meal-kit delivery market. The new brand positioning statement of HelloFresh
would be: “HelloFresh aims to reinvent the kitchen experience to be innovative and fun, yet
achievable and available for everyone.” This statement would also align with its current brand
personality of being friendly and inclusive, while introducing a new personality of creativity and
joy. The “Fresh” in the brand name could also be implied as “a breath of fresh air” as the new
branding is something that hasn’t been introduced to the current market of meal-kit delivery
service.

The desired personality for HelloFresh would be: friendly, fresh and fun. Therefore, a new brand
mantra would be derived from this repositioning. When customers think of HelloFresh, the
emotional modifiers would be excited. The descriptive modifier is creative and the new brand
function is engaging & educational (figure 8).

Figure 8 : new brand mantra

HelloFresh has the capabilities to carry out this repositioning as it has already implemented
elements of “fun” into its current product. However, this is not a personality that is reinforced
through its current marketing strategy. Changes to marketing would include a focus on
promoting its current networking community and change it into a platform that would allow
people to learn and interact with each other, diversifying the current recipes by partnerships and
adding more elements like the ‘cooking gestures’ (figure 4).

This laddering approach of repositioning would allow HelloFresh to extend its targeted consumer
segment to include those who also wants to experience simple yet fun cooking and learn new
recipes, hence younger people. Through our interviews, one university student claimed that they
see the potential benefits in using the service, yet also believe that it takes away the “fun” in
cooking by themselves. Aside from targeting younger people interested in learning how to cook,
HelloFresh can also attract those who do not like cooking. According to Taylor (2018), people
may not like cooking simply because they’re not good at it/ doesn’t know how to follow recipes.
By adding elements that are recognizable and re-designing the instructions and recipes to be
more fun and engaging, many people who don’t usually cook may convert to become a
HelloFresh’s loyal customer.

Appendix A: interview questions

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https://www.diva-portal.org/smash/get/diva2:1768070/FULLTEXT02.pdf