The assignment is about Gousto company and it must be from 2000 words for the body and the reference in a separate page.

The assignment should include the following without Plagiarism:

1- Introduction.

2- The body should have the following points written separately in each paragraph. 

a) Understanding value:

b) Creating value:

c) Communicating value:

d) Delivering value:

3- Conclusion.

4- Reference (APA).

The essay is about:

The essay should answer the following question:

“How does Gousto understand, create, communicate and deliver customers values?”

The first source of the essay should be taken from the attached (article) file and mixed with other article sources from the web. (no less than two sources).

The assignment will be marked by the following assessment criteria:

· Description of the nature, content and application of relevant marketing ideas and concepts, including a critical understanding of academic and practitioner perspectives

· Illustrating an understanding of how a customer focus can be applied

· Specifying the requirements for effective marketing

· Outlining relevant marketing processes and describe the techniques used to implement marketing strategies

· Illustrating the ability to discuss with relevant insight from practice

· Develop a clear and balanced assessment of the relevant theory, including support from relevant literature

· Overall ability to answer the assignment question in a focused way

Assignment 2: Gousto: a recipe for success

The assignment will be based on the following case, ‘Gousto: a recipe for success’. This case was prepared by Professor Julie Tinson, Stirling Management School, from various published sources as a basis for a class assignment\discussion rather than to show effective or ineffective management.

Read the following Gousto case study and read more widely around the company and topic, including accessing to answer the following question:

How does Gousto understand, create, communicate and deliver customer values?

Gousto: a recipe for success


The global crisis created by COVID-19 has had an unimaginable impact on businesses worldwide. Daily news items report the latest companies to restructure their organisation, or file for administration. Anticipated record unemployment as well as the economic downturn suggest that the market recovery will be long and difficult. However, there are businesses that have flourished in what has been coined, ‘the new normal’. As national and local lockdowns have restricted movement, the way in which some customers buy, prepare and consume food has changed. Companies in a position to facilitate this change have struggled to keep up with demand; in July 2020 one such company, Gousto, announced expansion plans which will see the company create 1,000 new jobs in the UK.

Company overview

Gousto was established in 2012 by Timo Boldt, founder and chief executive. As a young 26-year-old working long hours in the finance sector in London, Boldt had little time to spend at the supermarket. He longed for a convenient, easy way to cook and eat decent meals at home (Bearne, 2019). Researching the issue, he realised that there were other time-poor individuals who would benefit from having the right ingredients to make nutritious food in their own kitchens, without having to visit any shops. He decided that this could be achieved by producing ‘meal-kits’ that could be regularly sent via the post. The boxes would include all the ingredients needed to make dinner, already measured out, with easy to follow recipe instructions. As well as offering convenience, it would minimise food waste.

Germany’s HelloFresh had already launched their business. Undeterred, Boldt resigned his finance job, anticipating the potential size of the meal-kit market in the UK. He decided to call his own business Gousto. In 2020, the company’s current annual sales exceed £100m, and investors are also convinced of its continuing growth. The meal-kit sector, which also includes rivals such as Simply Cook and Mindful Chef, is now part of an industry that some estimate to be worth £1bn a year in the UK alone. Globally, the meal kit sector is predicted to hit $9bn (£7.2bn) by 2025 (Bearne, 2019).

Building the brand

When Boldt started selling the Gousto meal-kit boxes in 2012, he had a market stall in East London, allowing him to organically build his brand while creating an online presence through word-of-mouth and advertising. The first TV advertising campaign, ‘Unbox Possibility’, was not launched until 2018. Based on a child’s toy – a Jack in the Box – the food springs out of the box and into ‘life’. The idea was to capture the joy and excitement of creating delicious meals at home. Gousto’s most recent campaign was revealed in September 2019, challenging shoppers to change their consumer behaviour (Glenday, 2019). With an emphasis on gastronomy, the £3m brand campaign created by M&C Saatchi (with the7stars handling the media), introduces potential customers to a new way of preparing dinner.

In January 2019 Gousto also partnered with Joe Wicks, a fitness coach, presenter and author in the UK. Gousto not only provide specific meals to support Wick’s particular fitness routines, but also offer special promotional deals to encourage increased spend. Joe Wicks was a very familiar figure during the UK lockdown, virtually teaching PE (physical education) to primary school children; his own popularity and association with Gousto is likely to have enhanced the value of the brand. Importantly, as of May 2020, Wicks trademarked his own name and intends to create his own food and cookery line.

As McCarthy (2020) notes, early in the lockdown, positive headlines were generated as Gousto prioritised those from vulnerable groups signing up for the meal-kit service. This generated more trust in the brand and is thought to have had a positive impact on brand loyalty. Customer retention is measured via the net promoter score (NPS), which is argued to be at its highest ever level for Gousto. Social influencers also want to show others their tasty meals from Gousto and post these images on a variety of social media platforms. This creates more organic demand from consumers.

Not all promotional activity has been a complete success. Take, for example, the ‘Table for 1 Million’ 2020 campaign, a virtual dinner party Gousto planned to host with a variety of celebrities as well as loyal Gousto subscribers. Attendees booked their place at the virtual table and used their recipe boxes to create a perfect Friday evening meal, with the promise of a night of glamour and fine-dining, which would end in a Q&A with the celebrities (McCarthy, 2020). Although raising more than £40,000 for the Trussel Trust foodbanks, poor network issues meant the live streaming did not work and there was limited contact with and between celebrities\subscribers.

From humble beginnings to overcoming bigger challenges

While Boldt is now expanding his workforce, he initially started his business from home. Using his own savings (£75k) and money he was able to raise from family and friends (£130k), he spent his days testing recipes and asking for feedback from those he asked to try the boxes. Although he was unable to pay himself for the first three years, he was dedicated to customer service. Giving clients his personal phone number, it was Boldt who initially dealt with customers who did not receive their promised deliveries. In this way, he was able to learn how to scale his business without overpromising and under-delivering.

Now, despite currently sending more than four million chilled and insulated meals to 380,000 UK households every month (Briggs, 2020), Gusto is loss-making. This is intentional, as although Gousto could make a profit, Boldt considers investment to be key to the long-term success of the organisation (Bearne, 2019).

The typical consumers of meal-kits are affluent 40 year olds with young families. The concept is particularly appealing to this group as the service allows for a quick and convenient creation of nutritious meals. Yet, the idea of delivering food in this way has not been without challenges. To ensure the freshness of the produce, there is the question of how to package the items without generating excess waste. There is the potential for customers to have to make a trade-off between convenience and sustainability.

Gousto recognised packaging was problematic and pledged to reduce the plastic in their boxes by 50%. Saving over 100 tonnes of plastic in 2019, following the successful trial of a UK-first packaging innovation with over 4,000 customers, Gousto kept its promise. Developed in collaboration with UK based suppliers, Gousto reports it has spent over 3,200 hours across 18-months innovating the new high-performing temperature-controlled packaging. This is alongside other plastic reductions including more loose veg and the introduction of cardboard mushroom and tomato punnets (Anon, Packaging Europe, 2020).

Getting the product to market

Gousto source food ingredients from over 40 countries through UK importers and suppliers. Although Gousto does not currently have direct relationships with overseas suppliers, the UK based suppliers may have subsidiaries and joint ventures in other territories. Gousto use JDA software in their warehouses to manage supply and demand and employ a variety of delivery companies to distribute their meal-kit boxes e.g. Ocado and DPD. Ocado’s revenue surged by 27% in the first six months of the year (Heaphy, 2020), and there will be an increasing importance on maintaining service quality as demand increases.

Global appeal?

Meal-kits are not only popular in the UK. The USA, Canada, South Korea, the Netherlands and New Zealand as well as Singapore, are some of the countries where meal-kits are readily available to consumers. For example, in Singapore, there are a variety of options for those interested in creating their own fresh dishes, including BoCHINche, So France, Ippudo and Bar Cicheti. Interestingly, the positioning of this service appears to be less about convenience and more about supporting those with less experience of preparing food. Those buying meal-kits can “live their MasterChef dreams” (Loo, 2020). The promise of these companies is to enable consumers to cook ‘real food’. However, food consumption is culturally based (e.g. reflecting seasoning and taste), and not all cultures will embrace this approach to preparing deconstructed meals. Additionally, some countries will be far more concerned with food shortages as opposed to food waste. This reinforces the importance of food security for all and having access to a sufficient quantity of affordable, nutritious food.

The future

Is Gousto a recipe for success, or will customers get fed up with the choice of recipes? Currently, Gousto are working to limit food waste in its own supply chain by using computer algorithms to predict demand for its 40+ different weekly recipes.

Partnerships are also a key feature of the future. For example, in July 2020, Naked Glory, part of Kerry Foods, announced a new collaboration with Gousto, on two brand-new recipes to feature in the Gousto meal-kit boxes. Starting from £2.98 per meal, the Gousto offering will include the new Naked Glory Deli Readybites Roast flavour as a core ingredient in its meat-free dishes (Briggs, 2020).

Notwithstanding the unexpected positive consequences of the pandemic for the meal-kit delivery market, the industry already had cause for optimism. With a head office in Hammersmith, West London, and its own factory in Lincolnshire, Gousto are at the forefront of this burgeoning market. They are, however, not without competition. While Gousto are keen to keep the prices of their meal-kit delivery down so that they are accessible to a wider target audience, there are established retailers now entering the market and seeking to attract a different target audience.

For example, Morrisons have just launched a ‘Feed a Family of Four’ box. This 5 meal option is a budget-friendly addition to the selection of recipe boxes available. With a cost of just £1.50 per meal per head, it represents a significant saving on its rivals (Warwick, 2020). Further, there are also opportunities for local farmers and businesses seeking to expand or develop their businesses in ‘the new normal’ to create their own meal-kit versions – with fewer food miles and related packaging requirements.


Anon (2020) Gousto halves plastic usage, reveals innovative new solution. Retrieved from

Bearne, S. (2019) The hungry 26-year-old who set up a £100m food firm. Retrieved from

Briggs, F. (2020) Meat-Free Brand Naked Glory partners with Gousto. Retrieved from

Glenday, J. (2019) Gastronomic ‘Give it some Gousto’ campaign details recipe for success. Retrieved from

Heaphy, E. (2020) Coronavirus: Ocado revenue surges 27% as shoppers flock to online food delivery. Retrieved from

Loo, F (2020) The best home cooking meal kits in Singapore. Retrieved from

McCarthy, J. (2020) Despite botched virtual meal stunt, there’s an insatiable hunger for Gousto. Retrieved from

Warwick, S. (2020) Morrisons launches a value family recipe box – food delivery for just £30. Retrieved from