March Public Policy Challenge. Campaign Plan
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1 March 2011 Virtual Supermarket Philly Public Policy Challenge Campaign Plan Rachel Meeks Cahill, Fels Institute of Government Natalie Robles, School of Design Jennifer Ralston, School of Social Policy and Practice Lise Wagnac, Bryn Mawr College
2 Table of Contents Executive Summary... 1 Policy Concept...1 Background...1 Opportunity...2 Operations...3 Partnership...4 Background... 5 Problem: Food Deserts...5 Problem: Food Affordability...5 Problem: Food Insecurity...6 Proven Success... 7 Baltimarket...7 New Ideas... 8 VSM Compliments Fresh Food Financing...8 VSM Compliments Existing Healthy Food Incentives...8 VSM Value Proposition... 9 Possible VSM Healthy Incentive Structures...10 Potential Launch Sites...10 Pilot Location: Nicetown-Tioga...10 Potential Growth Model...11 Marketing Strategy...13 Measuring Impact...14 Potential Funding...15 Appendices A-E
3 Executive Summary Policy Concept Inspired by an innovative effort to increase access to fresh, healthy food within the food deserts in Baltimore, we recommend the creation of a Virtual Supermarket in Philadelphia. 1 Building on the success of Pennsylvania s Fresh Food Financing Initiative and recent partnerships between the Philadelphia Health Department, The Food Trust, Greater Philadelphia Coalition Against Hunger, and the Delaware Valley Regional Planning Commission (DVRPC) to increase the purchasing power of SNAP (food stamps) and WIC recipients at farmers markets, the Virtual Supermarket (VSM) would add libraries and local grocers to help bring healthy, affordable food to convenient locations in low-income neighborhoods. Background In recent years, diverse stakeholders have joined the healthy food discussion, including farmers, food distributors, environmentalists, public health officials, and anti-hunger advocates. Despite sharing an understanding of a common vision of a healthier community, these stakeholders often find themselves representing competing constituencies. Farmers and environmental advocates want to see more local food in stores and higher prices that allow farmers to earn a living wage. Anti-hunger advocates argue that SNAP (food stamp) recipients must stretch their benefits by buying low-quality, calorie-dense food, which leads to low-income families being priced out of the fresh, healthy food market. Philadelphia has a great deal going for it in terms of large-scale efforts to increase access to healthy food. Pennsylvania s Fresh Food Financing Initiative (FFFI), a public-private partnership that provides grants and loans to food retailers that set up shop in urban and rural areas without legitimate grocery stores (called food deserts ), has been recognized as a national model for addressing economic development, public health, and food insecurity issues. 2 Philadelphia s Department of Public Health recently launched Healthy Bucks to encourage Supplemental Nutrition Assistance Program (SNAP, formerly Food Stamps) recipients to purchase fruits and vegetables at local farmers markets, offering them $2 extra in benefits for every $5 that they spend. Supplemental Nutrition Program for Women, Infants, and Children (WIC) recipients also received $80 in vouchers during the 2010 season to spend on fruits and vegetables at farmer s markets. 1 An urban or rural area with limited access to affordable healthy food, often because the area does not have a commercial grocery store. 2 Defined as the inability to afford enough food for an active and healthy life. 1
4 Despite all of this great work, Philadelphia still faces the enormous challenge of figuring out how to help low-income individuals, who suffer the highest rates of food insecurity, obesity, and diabetes, purchase and consume healthier food. 3 While new grocery stores from the FFFI provide a long-term solution to eliminating food deserts, they cannot fill the immediate need in so many communities for increased access to fruits and vegetables, nor do they fundamentally change the reality that healthy food is still more expensive and SNAP benefits often go much farther when families purchase lower quality food. When asked about the incentives offered to SNAP and WIC recipients at farmers markets, families acknowledged that though the discounts are great, few markets are located in low-income areas and those that are only offer a limited number of products from a few farmers. In addition, the higher cost of local produce at farmers markets diminishes the value of the discount. Philadelphia s low-income families would best be served by bringing these two promising practices together. We propose the development of a Virtual Supermarket (VSM) that brings the convenience and affordable prices of traditional grocery stores to areas considered food deserts, without delivery fees. The VSM would also offer healthy incentives by discounting fruit and vegetable purchases for SNAP (food stamp) recipients. Opportunity Online grocery stores have been around for some time in urban areas, but have traditionally been used by higher income households who can afford the delivery fees and minimum purchase requirements. Following the leadership of the Baltimore Health Department s recent virtual supermarket project called Baltimarket, this idea expands upon virtual grocery shopping by allowing low-income residents with limited access to vehicles and internet access to place and receive grocery orders at their local libraries and community centers. Baltimarket has received extremely positive feedback from its participants. According to the Baltimore Health Department, 91 percent of participants indicated that this program has improved their access to fresh and affordable groceries, and 73 percent of participants indicated that it has enabled them to make healthier purchases. 4 The timing for the launch of a VSM in Philadelphia could not be better. The Philadelphia Health Department recently received a major grant from the Center for Disease Control (CDC) to improve health by increasing access and affordability of healthy food throughout the city. Two initiatives already in motion to meet this goal are Healthy Bucks (described above) and the Healthy Corner Stores initiative, which is partnering with over 400 corner stores to 3 Drewnowski, A. Obesity, diets, and social inequalities. Nutr Rev May; 67 Suppl 1:S Statistics available on the Baltimore Health Department s website at 2
5 increase the amount and quality of fruits and vegetables in small retail outlets. 5 The VSM would be an excellent compliment to both initiatives, and would fill a recognized gap of assisting households in purchasing affordable produce from traditional grocery stores. Additionally, the Philadelphia Mayor s Office recently announced its intention to follow Baltimore s lead in hiring a food czar to coordinate efforts to reduce hunger and improve nutrition. 6 The VSM would also make use of existing facilities in underserved neighborhoods, such as libraries and recreation centers. These institutions offer a variety of services to residents and are often accessible by public transportation. Furthermore, libraries can offer access to broadband internet and information resources, which is crucial to the project s success. Operations Philadelphia s Virtual Supermarket (VSM) would build on the lessons of the Baltimarket program and implement structures and incentives that have proven successful in similar communities. Grocery retailers would be given the opportunity to bid for the VSM contract, which provides retail space (in a library or recreation center) and a subsidy for delivery costs to the grocer, in exchange for offering an incentive (or discount) to shoppers using an EBT card. 7 Registered participants are responsible for picking up grocery orders and failure to retrieve orders on scheduled delivery dates without prior notification would result in prohibition from placing future orders. 8 In the event that orders are not collected, food is returned to the grocery retailer for re-stocking. To reduce liability and ensure responsible food handling, the grocer handles both food and monetary transfers for the program. The Free Library of Philadelphia has a history of linking food distribution services with library branches. The Lillian Marrero Branch, which also houses the Mayor s Office for Community Services (MOCS), hosts the Philabundance Community Food Center in the basement of its building. The Food Center operates for specific hours Wednesday through Saturday during which time local residents that have pre-registered with Philabundance are able to select groceries from a donated food pantry. Implementation of the VSM proposal would be coordinated with the Extensions, Library Operations, Administrative Services and 5 Additional information about Get Healthy Philly and Center for Disease Control s Communities Putting Prevention to Work Initiative, go to 6 Alfred Lubrano, A Rallying Cry that People Heard, Philadelphia Inquirer, December 30, Access at 7 EBT stands for Electronic Benefits Transfer. The EBT card serves as a debit card for SNAP (food stamp) benefits. 8 Baltimarket staff reported only 2 such cases of dismissal from the program as a result of missed pickups, out of 235 total orders in the first 6 months. 3
6 Security Services Divisions of the Free Library organization, all of which monitored the Lillian Marrero Branch project. Additionally, early discussions with the Philadelphia Health Department suggest that the VSM proposal fits with their goal of creating financial incentives that encourage residents to purchase healthy food. Because the VSM could incorporate the Healthy Bucks program, which is currently funded through the Center for Disease Control, the VSM could increase the effectiveness and efficiency of the Department s current efforts. Having the Health Department as a central partner can also ensure that all VSM operations meet food safety standards. Start-up costs for the VSM would be minimal due to the fact that space is provided by libraries and recreation centers and a built-in customer base exists in food deserts. Grocery retailers invited to participate already have EBT and online ordering systems in place to handle payment, monitoring, and data collection. This opportunity would appeal to grocers as well, as they will gain access to a consumer market without a major financial commitment to overhead and staffing. The experience of Baltimarket also confirms that the VSM is relatively inexpensive to run Baltimarket launched as a pilot project in 2009 with a $60,000 grant. With several foundations in Philadelphia actively supporting innovative efforts to improve the region s health, securing a similar start up grant would likely be possible. Partnership Creating a Virtual Supermarket (VSM) in Philadelphia requires pulling together a diverse group of stakeholders that express shared values, but also face a multitude of problems and projects competing for their attention. Specifically, Baltimarket staff interviewed for this proposal stressed the importance of getting the buy-in and active participation of the libraries by acknowledging and working to minimize the many demands the VSM could place on library staff. Still, our team was encouraged to see that many stakeholders contacted for feedback expressed excitement and optimism about the project s potential. One of the keys to success of the VSM will be to ensure that the local library branch, community members, and the grocery retailer work closely together to ensure that all parties are satisfied. The direct involvement of the Health Department, or a partnership with a knowledgeable organization (like the Food Trust or DVRPC) would be necessary to facilitate logistics and coordination between the library, the shoppers, and the supermarket. With the right partners, a relatively small investment in a VSM could significantly expand access to affordable, healthy food in Philadelphia. 4
7 Background Problem: Food Deserts As part of Michelle Obama s Let s Move Campaign to tackle childhood obesity, the First Lady identified the widespread existence of food deserts urban or rural areas with limited access to affordable healthy food, often because the area lacks a full-service grocery store as a major barrier to improving the health and well-being of children. During her visit to Philadelphia in February 2010, Mrs. Obama noted the breadth of the problem saying, There are places we visited in Philadelphia that haven t had a grocery store in a decade. Food deserts began spreading in Philadelphia during the 1950s when urban residents moved to the suburbs and grocery stores, lured by lower start-up costs and higher profit margins, followed the movement. By the end of the rapid suburbanization period, Philadelphia became the city with the second-lowest number of supermarkets per capita in the United States. 9 In their absence, small corner stores and bodegas emerged throughout densely populated, low-income areas. While the lack of commercial grocery stores carrying fresh, healthy products is inconvenient for middle and upper-income city residents, they typically have the resources to venture outside the city to complete their grocery shopping. For lower-income families, on the other hand, traveling to the suburbs for quality products at reasonable prices may present significant barriers. Taking public transportation, for example, means households cannot save money by purchasing items in bulk and cannot risk buying dairy products that may spoil on the trip home. Problem: Food Affordability Instead of making such a journey, many low-income households turn to corner stores and bodegas for their grocery shopping. These outlets rarely carry fresh fruit and vegetables and instead stock a limited selection of processed, shelf-stable products including canned soup and other instant meals. In addition to being unhealthy, available items are typically much more expensive in urban corner stores than in suburban grocery stores. 10 So while 9 Atlas, Jennifer; Chirouze, Apollon; Rajyaguru, Parth. The Food Trust and the Fresh Food Financing Initiative: Eliminating Food Deserts. Philadelphia Social Innovation Journal. May accessed at: 10 Chilton, Mariana. The Real Cost of a Healthy Diet, C-SNAP (Now Children s HealthWatch). The Real Cost of a Healthy Diet. September Accessed at 5
8 families may save time and transportation costs by shopping in the city, they are forced to shop at venues where neither cash nor SNAP (food stamp) benefits go very far. For households that do receive SNAP benefits, even the most careful shoppers will find that high prices in Philadelphia s urban markets mean their benefits will not last until the end of the month. A 2008 study showed that the U.S. Department of Agriculture (USDA) formula used to determine the maximum monthly benefit (called the Thrifty Food Plan ) is based on price estimates in suburban grocery stores and does not take into account regional differences in the cost of food. 11 Additionally, many of the healthy products endorsed by the Thrifty Food Plan, including whole grain products, low-fat dairy, fish, and lean meats, were not even available in the corner stores surveyed in Philadelphia. Even when healthier options are available, families shopping on a tight budget often choose to make their dollars stretch by buying calorie dense food that stave off hunger but contain little nutritional value. Such low quality diets can have long-term consequences for the individuals and society. Public health data shows that low-income areas, as well as areas with limited access to supermarkets suffer disproportionately high rates of obesity, diabetes, and heart disease. 12 Problem: Food Insecurity The USDA considers a household to be food insecure when they are unable to afford enough food for an active and healthy life. 13 Over 50 million people in the United States lived in food insecure households in 2009, 17.2 million of whom were children. 14 In Philadelphia, food insecurity rates are even more striking. According to a 2010 report by the Food Research and Action Center (FRAC), the First Congressional District (which stretches across North and South Philadelphia east of Broad Street, as well as Chester City in Delaware County) is the second hungriest congressional district in the country, with 36.1 percent of residents reporting food hardship in Chilton, Real Cost of a Healthy Diet. 12 Drewnowski, A. Obesity, diets, and social inequalities. Nutr Rev May; 67 Suppl 1:S Nord, Marc. Measuring U.S. Household Food Insecurity. Amber Waves. Accessed at 14 Household Food Security in the United States, 2009, Annual Report, Economic Research Service, USDA. Accessed at 15 Food Hardship rates are very similar to food insecurity rates. Both survey methodologies ask the same question of households about their ability to afford food, but are compiled through different methods and agencies. See the FRAC Report at 6
9 Proven Success Baltimarket A recent initiative by the Baltimore Health Department to address the city s food deserts proved how a small initial investment in a pilot project can make real strides towards improving access to affordable, healthy food for urban residents. After launching a virtual supermarket, called Baltimarket, at a single location in 2009, the program has since grown and now operates out of four libraries and one elementary school. Baltimarket was initially funded for just 6 months with a $60,000 grant from federal stimulus funds. Baltimarket operates by encouraging residents to place grocery orders online at their local library branch, with support from on-site librarians if needed. Residents return to the library on the designated delivery day to pay for and pick up their items. Traditional delivery fees associated with online grocery shopping are waived, and participants can pay for groceries by cash, credit, or Electronic Benefits Transfer (EBT) card. 16 The minimum purchase requirement for Baltimarket is $20. Baltimarket does not limit what participants can buy, but does offer incentives to shoppers to encourage healthy eating. On their first purchase, participants receive an extra $10 worth of healthy foods on their first purchase, and another $10 on every fourth purchase thereafter. Baltimarket also offers healthy cooking demonstrations and cook books. In an interview with National Public Radio, one Baltimarket program participant commented on the gap that the program has filled for her saying, The market around here has been closed for a little over a year, and you have to go so far to get to another market. You have to pay somebody to take you. [At Baltimarket], the fruit is fresh. The vegetables are fresh. I get the butchered meet and all. It s really good. 17 Inspired by this innovative effort, our team recommends a cross-sector collaboration to launch a Virtual Supermarket in Philadelphia. Utilizing our library system and local a grocery retailer that has an online ordering system (such as ShopRite), we propose a one year pilot project to bring healthy, affordable food to underserved neighborhoods in Philadelphia. 16 EBT cards are called ACCESS Cards in Pennsylvania and serve as a debit card for SNAP and Cash Assistance benefits. 17 Check it out: Get your groceries at the library, National Public Radio, April 26, Accessed at 7
10 New Ideas VSM Compliments Fresh Food Financing Initiative The Pennsylvania Fresh Food Financing Initiative (FFFI) is a nationally recognized public private partnership designed to attract supermarkets to under-served urban and rural communities. Launched in 2004 with leadership from State Representative Dwight Evans in partnership with The Reinvestment Fund and The Food Trust, the program has secured over $150 million in loans and grants to increase access to fresh, healthy food across Pennsylvania. 18 In 2010, President Obama s budget included a proposal to build on Pennsylvania s success by creating a national Healthy Food Financing Initiative with an initial $400 million investment from the federal government. 19 The FFFI represents a long-term strategy to eliminating food deserts and encouraging capital investments in low-income neighborhoods. It requires significant expertise of market conditions and successful economic development strategies. It also requires continued investment from the state or federal government to reach all areas of need, an increasingly uncertain prospect with the rising federal deficit dominating budget and policy approaches. On the other hand, public health officials, human services agencies, and struggling families understand that the need for access to healthy, affordable food is immediate and urgent. We believe that the Virtual Supermarket (VSM) provides a lower cost alternative for communities who have not yet benefited from a FFFI investment. Ideally, a successful VSM pilot could demonstrate to FFFI investors the power and potential of a retail market in a particular community and spur future investment VSM Compliments Existing Healthy Food Incentives The Delaware Valley Regional Planning Commission (DVRPC) s recent report, Eating Here: Greater Philadelphia s Food System Plan describes the importance of creating incentives for both fresh food retailers and lower income families to offer and purchase fresh, healthy food. Farmers Markets across the country have embraced this incentive concept by offering discounts and/or increased purchasing power to SNAP recipients that shop at their markets. In Philadelphia this effort is called Healthy Bucks and is sponsored by the Philadelphia Health Department. The USDA is currently funding a demonstration project in 18 As of June See Comprehensive Overview of the Fresh Food Financing Initiative at 19 See February 2010 budget announcement at 8
11 Massachusetts called the Healthy Incentives Pilot that attempts to scale up this kind of incentive structure in a traditional grocery retail network. Though preliminary results from such efforts show successful connections between customers and local growers, as well as increased fruit and vegetable consumption among lower-income households, the weakness of this strategy is its continued reliance on government or private dollars to subsidize the actual purchase price. As with the development a national Healthy Food Financing Initiative, it is unclear whether such public investments will continue to be made as political pressure to reduce government spending and the overall federal deficit continues to rise. The Virtual Supermarket presents an opportunity for a public-private partnership that benefits both neighborhood residents and the grocery retailer. With the cooperation of organizations, agencies, and businesses such as the Free Library of Philadelphia, the Philadelphia Departments of Health and Recreation, ShopRite Supermarkets, The Food Trust, Greater Philadelphia Coalition Against Hunger, Delaware Valley Regional Planning Commission (DVRPC), Philabundance, SHARE Food, North, Inc (WIC Program), and the Health Promotional Council, the VSM has tremendous potential to succeed. 9
12 Possible VSM Healthy Incentive Structures Two possible options include: (1) a loyalty or member system where SNAP recipients can earn points through grocery purchases and redeem points on in season fruits and vegetables; or (2) discount system akin to current manager s specials where SNAP shoppers can take advantage of certain healthy food discounts on products with a high enough profit margin that the retailer is not forced to take a loss when discounting the product. Both of these strategies build on current grocery retail strategies to attract customers and could be tailored to ensure that the program is mutually beneficial to both SNAP shoppers and retailers, without required a government subsidy to encourage healthy purchases. Potential Launch Sites Because Pennsylvania s First Congressional District, which includes much of Philadelphia and parts of Delaware County, has been named one of the hungriest regions in the nation, our team decided to pilot the Virtual Supermarket (VSM) in the First District. The Reinvestment Fund conducted a Supermarket Access study to identify areas where residents had to travel longer distances to supermarkets, in comparison to higher-income areas with similar population densities and car ownership rates. 20 Our methodology for determining potential locations for the VSM involved overlaying The Reinvestment Fund s defined boundaries of Low Access Areas for Supermarkets with the Free Library of Philadelphia s library locations. In addition, libraries were prioritized if they were easily accessible to the patrons by multiple modes of transportation, had sufficient space, and were an integral part of the community. Pilot Location: Nicetown-Tioga The location identified for the VSM pilot is the Nicetown-Tioga Branch library in North Philadelphia. The Nicetown-Tioga Branch is located on Broad Street between two major corridors, Erie and Germantown Avenues, and is close to the Erie station of SEPTA s Broad Street Subway line. The Nicetown Branch was remodeled in to include an expanded first floor and public computers, and was part of a Changing Lives campaign in 1998 to bring Internet service to every library. The Branch hosts adult education classes and after-school programs and is viewed as an important gathering space for North Philadelphia residents. This feature, along with its accessibility from transit, makes the Nicetown-Tioga Branch an ideal launch site 20 SeeTheReinvestmentFund sworkonimprovingfoodaccessathttp:// foodaccess.html. 10
13 for the Virtual Supermarket. The library is also at the intersection of two different areas that TRF identified as having low access to supermarkets. Figure 1: Location of Nicetown-Tioga Branch of the Free Library of Philadelphia, with nearby Low Access Areas to Supermarkets. Courtesy of Policy Map. Potential Growth Model The pilot program would operate for a one-year period, at the end of which success would be evaluated in terms of community participation in the program, dollars in sales generated, customer satisfaction, as well as grocer and library input. The pilot program may elicit further market investment if community participation is high but sales volume is low, or may result in the termination of subsidies if the market is sufficiently profitable for the grocer on its own. Following the pilot phase, VSM would expand to additional sites if sufficient market and partner interest exists to the locations identified below. Future growth scenarios could include expanding into community development corporation (CDC) locations in underserved neighborhoods that lack a participating library. The advantage of this option is that many CDCs have internet access for job training programs and their missions align well with the community healthy and equity goals of the Virtual Supermarket. As the VSM grows, it may be possible to build more local growers into the supply chain to gain a share of the market. We anticipate that some VSM sites will not be suitable for 11
14 additional investment from the grocery retailer, but would be a satisfactory incubator for a local grower. Applying the same methodology mentioned previously, our team identified expansion locations, should the pilot prove to be successful. Additional sites for Virtual Supermarkets include: Mantua/Powelton The Charles Durham Branch in Mantua, just north of Drexel University, was designed as part of the Mantua Community Center and includes a Philadelphia Department of Recreation gymnasium, a community office and a meeting room, which would be ideal for administering Virtual Supermarket activities. The library was renovated in 1999 and has computer and internet access for patrons. The library is accessible by 3 bus routes and 2 SEPTA subway/surface stations: the 33rd Street trolley stop and the Market-Frankford El station at 34th Street. This neighborhood has had a history of underinvestment and was identified as one of TRF s Low Access Areas. Fishtown The Fishtown Community Branch Library serves Fishtown and New Kensington and is located in a former stable and fire station that underwent a significant renovation in 1989 during which a meeting room, balcony and elevators were added to the library. The Fishtown Branch is serviced by bus and the Market-Frankford Subway line. Eastwick The Eastwick Branch of the Free Library is located near the Philadelphia International Airport in Southwest Philadelphia and serves a number of communities, including Eastwick, Elmwood, Clearview and Penrose Park. This area was identified as a Low Access Area for supermarkets and is relatively isolated, although it is serviced by the 36 Trolley and bus routes. Richmond The Richmond Branch Library serves the Port Richmond neighborhood in Northeast Philadelphia. It is accessible by the Route 15 Trolley and various bus routes. The Richmond site is located near GreensGrow Farm, which operates a nursery, seasonal farmer s market, and community supported agricultural program (CSA). This closeness could potentially lead to the incorporation of locally sourced produce into VSM. 12
15 Marketing Strategy Marketing Slogan: Bringing the supermarket to you. Target Market: Urban residents living in neighborhoods with limited access to fresh, healthy, and affordable food, with a primary focus on low-income residents and SNAP (food stamp) recipients. Target Market Size: The VSM anticipates serving between 800 and 1,200 residents at the pilot site during the first year of operation. This assumes 20 orders per delivery day (totaling to 40 orders per week) during the first 6 months, and 30 orders per delivery day (totaling to 60 orders per week) during the second 6 months. To reach these participation goals, the VSM will outreach to 5,000 residents in the general vicinity of the pilot location. Promotional Appeals: With great healthy food incentives from our retail partner, convenient library locations, and access to a full array of grocery products with the click of a button, the VSM brings the supermarket to you! Promotional Tools: Because online grocery shopping at the local library is far from conventional, we understand that a significant investment in promotion and recruitment will be necessary to encourage neighbors to try out the Virtual Supermarket. Flyers and brochures (see Appendix B) highlighting the benefits of the VSM will be distributed to Women, Infants, and Children (WIC) Offices, SNAP (Food Stamp) outreach venues, emergency food pantries and soup kitchens, schools, recreation centers, hair salons and barber shops, and other local businesses. Paid advertising outlets including community newspapers, radio advertising, and SEPTA (transit) advertising will be considered. VSM also hopes to spread the word through the Health Department s Get Healthy Philly Network. VSM s proposed budget anticipates distributing free grocery trolleys to the first 100 community members to sign up as a promotional tool. Website Production: A user-friendly website and online grocery ordering system are crucial to helping community members feel comfortable doing their shopping online. VSM has developed a website mock-up that includes simple instructions on how to make the most of the Virtual Supermarket experience, and connects users directly to the grocer s online portal (see Appendix C). Project staff will be on hand to help shoppers who are uncomfortable or have difficulty using the online system. 13
16 MEASURING IMPACT Program Effectiveness: How many customers are taking advantages of the VSM? How broad are efforts to distribute marketing and promotional material? How many referrals from individuals and agencies does VSM receive? Are other library branches or community sites expressing interest in becoming a future VSM site? Logistical Issues: Does communication and coordination between the grocery retailer and the library run smoothly? What technical issues or glitches does the program face? What percentage of placed orders are not picked up? How intuitive is the online shopping system? Is there any network instability that might cause the system to crash? Economic Viability: How much food is ordered through the VSM each week? What is the total and average dollar amounts of these transactions? What kind of healthy incentives are the most popular with shoppers? What kind of incentives are most beneficial to the retailer s bottom line? How quickly is participation growing? How many retention shoppers is the site receiving? Customer Satisfaction: How user-friendly was the website and online ordering system? Was the on-site staff helpful in completing the order and explaining the process? What was the quality of the food received? How helpful was the incentive structure in encouraging the purchase of healthier food? How many shoppers came back after their first visit? If they did not return, why not? 14
17 Potential Funding Because the Virtual Supermarket builds on current thinking in the food policy community and presents an opportunity to test a new, unique access strategy, we are hopeful that a local foundation would look favorably on a request for seed funding for the VSM pilot site. With an estimated one-year budget of $74,900, the grant request presents a low-risk potentially high-reward opportunity for forward-thinking philanthropists. Specifically, with support from other institutional partners, the Virtual Supermarket may seek support from local grant makers that are a part of the food affinity group, whose members are especially supportive of food policy initiatives in the Delaware Valley. Among these grant making institutions are the Claneil Foundation whose mission specifically focuses on eliminating hunger and increasing access to nutritious food and the William Penn Foundation. The VSM could also look to other foundations or the food retail industry itself for funding to launch the initial pilot site. 15
18 Appendix A 16
19 Appendix B Virtual Supermarket Philly (VSM) Logo & Slogan (Next page): VSM Marketing Brochure 17
20 18
21 Appendix C VSM Website Mock-Up Appendix D 19
22 Appendix E NatalieRobles FelsInstituteofGovernment 3814WalnutStreet Philadelphia,PA19104 March20,2011 ClaudiaMartinez DirectorofLibraryOperations FreeLibraryofPhiladelphia 1901VineStreet Philadelphia,PA19103 DearMs.Martinez, OnbehalfofmyteammatesintheUniversityofPennsylvania spublicpolicychallenge,iam writingtorespectfullyrequestyoursupportforaninnovativepartnershipproposalthat wouldallowlibrariestheopportunitytoparticipateinimprovingthehealthandqualityof lifeoftheirneighborhoods. Ourproposal,VirtualSupermarketPhilly,wouldcreateanonlinesupermarketsystemin low incomeand/orfood insecureneighborhoodstoallowresidentswithlimitedaccessto marketsandeasytransportationoptionstoplaceandreceivegroceryordersatlocal librariesandcommunitycenters. AstheDirectorofLibraryOperationsfortheFreeLibraryofPhiladelphia,your organizationwouldplayapivotalroleinadministeringandmonitoringthevirtual Supermarketpilotprogram.TheFreeLibraryhasalreadymadegreatstridestowards linkingfoodaccessandlibrarieswiththelillianmarrerobranchproject.thankstothe FreeLibrary sleadershipandthededicationofthestaffatthelillianmarrerobranch,this partnershipwiththemayor sofficeofcommunityservicesandphilabundanceexpanded accesstofoodinanunderservedneighborhoodandprovidedaunique choice foodpantry forpatrons. WiththesupportandcooperationoftheFreeLibrary soperations,extensions,security andadministrativeservicesdivisions,thevirtualsupermarketcouldbecomeareality.we hopetohavetheopportunitytohearyourperspectiveonthepotentialopportunitiesand barrierspresentedbythisproject.thankyouforconsideringourrequest. Respectfully, NatalieRobles,RachelMeeksCahill,LiseWagnac,andJenniferRalston UniversityofPennsylvania,TeamVirtualSupermarket 20
23 RachelMeeksCahill FelsInstituteofGovernment 3814WalnutStreet Philadelphia,PA19104 March20,2011 AlisonHastings SeniorEnvironmentalPlanner DelawareValleyRegionalPlanningCommission 190NorthIndependenceMallWest,8 th Floor Philadelphia,PA19106 DearMs.Hastings, OnbehalfofmyteammatesintheUniversityofPennsylvania spublicpolicychallenge,iam writingtorespectfullyrequestyoursupportforaninnovativepartnershipproposalthat bringstheconvenienceofretailgroceryservicetoneighborhoodsthatlackaccesstobrickand mortarstores,whilealsointroducinghealthyfoodincentivesfromthegrocerto augmentthehighercostoffreshfruitsandvegetables. Ourproposal,entitledVirtualSupermarketPhilly,wouldcreateanonlinesupermarket systemtoallowresidentswithlimitedaccesstomarketstoplaceandreceivegrocery ordersatlocallibrariesandcommunitycenters. AstheSeniorEnvironmentalPlanneratDVRPC,andco authorofphiladelphia sfood SystemsPlan,youhavebeeninvolvedinseveralimportanteffortstoincreaseaccessto healthyfoodintheregion.withtheexpertiseandguidanceofyouotherleadersinthe field,webelievevirtualsupermarketphillyhasthepotentialtoplayakeyrolein expandingaccesstohealthy,affordablefoodinphiladelphia. Wehopetohavetheopportunitytohearyourperspectiveonthepotentialopportunities andbarrierspresentedbythevirtualsupermarketproposal.thankyouforconsidering ourrequest. Sincerely, RachelCahill,LiseWagnac,JenniferRalston,andNatalieRobles UniversityofPennsylvania,TeamVirtualSupermarket 21
24 JenniferRalston PennSchoolofSocialPolicyandPractice 3701LocustWalk Philadelphia,PA19104 March20,2011 DonaldF.Schwarz,MD,MPH PhiladelphiaHealthCommissionerandDeputyMayor 1401JFKBlvd.Suite600 Philadelphia,PA19102 DearDr.Schwarz: IamwritingtorespectfullyrequestyoursupportforaprojectaddressingPhiladelphia s fooddesertsthatmyselfandateamofstudentsfromtheuniversityofpennsylvania developedasapartofthefelsinstituteofgovernment spublicpolicychallenge. Weareproposingavirtualsupermarketthatoperatesoutoflibrariesinfooddesertareas, whichwasinspiredbyasuccessfulpilotlaunchedbythebaltimorecityhealthdepartment called Baltimarket. Ourprojectallowsresidentswithlimitedaccesstomarketstoplace andreceivegroceryorders,withoutdeliverycharges,atlocallibraries.weexpectthatthe VirtualSupermarketwillcomplimentandsupplementongoinginitiativesinPhiladelphiato increaseaccesstoandincentivesforpurchasinghealthyfood. AstheHealthCommissioner,yourleadershipinlaunching GetHealthPhilly has,among otherthings,helpedbringingfresh,affordablypricedfruitsandvegetablesto neighborhoodsthroughoutphiladelphia.webelievethatyoursupportandfeedbackon plansforavirtualsupermarketwouldbetremendouslybeneficial. DuetothemomentumcreatedbyotherCityprojectswithcompatiblegoalsandduetothe relativelylowriskandstartupcostsinvolved,webelievethetimeisrighttolauncha VirtualSupermarketpilot. Wewouldgreatlyappreciateyourfeedbackonthemeritsandpotentialbarriersofsucha project.thankyouforconsideringourrequest. Respectfully, JenniferRalston,NatalieRobles,RachelCahill,andLiseWagnac UniversityofPennsylvania,TeamVirtualSupermarket 22
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