Overall Background
Our product is called SmartBrew. It’s a coffee machine for true coffee lovers. You can be sure you get exactly the drink you like with the absolute control offered by SmartBrew. It is equipped with cutting-edge smart technology features and is very simple to use with a touch screen and an intuitive interface. SmartBrew comes in different sizes to satisfy the needs of both end-consumers and businesses.
Coffee Machine Features
One of the key features of our coffee machine is temperature control. You can pick the EXACT temperature you want your drink to be. This will provide businesses with better service since customers will no longer need to go back if their coffee is not hot enough or if it is too hot.
Our Coffee Machine can remember an unlimited amount of orders. For example, if a family buys our machine, everyone can have a personalized coffee to their liking on one device.
Our coffee machine comes with a touch screen.
It also connects to your phone through an app so you can brew coffee from a different room.
There are several compartments in the coffee machine that open up endless possibilities for experiments. You can keep up to 3 different types of coffee beans in the device separately. There are additional sections for milk, sugar, toppings, and flavor shots. The milk compartment is always kept cold and is divided into a few different sections so you can enjoy your coffee with the milk of your choice. Moreover, you can make tea and hot chocolate with SmartBrew thanks to the presence of added compartments for tea leaves and cocoa powder.
Coffee machines are sold in different sizes to fit everyone’s needs. Sizes come in small (12 inches long and 10 inches tall), medium (16 inches long and 12 inches tall), and large (24 inches long and 14 inches tall). The largest model is developed for the businesses, while consumers will usually buy small/medium-sized machines.
How Smartbrew Works
To brew coffee with our coffee machine, all you have to do is add your favorite coffee beans, water, and additional ingredients based on your taste. You can choose the size of your cup and enter the exact amounts of milk, sugar, and toppings to add to your drink. You can save your selection by pressing the save button to create a preset. Next time you want to have the same drink, just use the saved preset. It works the same way with tea and hot chocolate.
Smartbrew App Features
We are planning to release the app for iPhones and Android phones. It will be available for free for the customers on the App Store and Google Play, respectively.
The app will have multiple useful features. You can use it to check whether you need to refill any ingredients. As it is synchronized with the coffee machine, you can do it at all times. For instance, if you’re already at the supermarket and you forgot to check whether you have enough of your favorite topping left before leaving, you can find this information on the app.
Also, it functions as a remote, so you can start brewing your morning coffee while still in bed.
And finally, it gives you premium access to the tips and recipes from the most famous coffee baristas in the world to enhance your coffee-making experience.
You can contact our support team via the app to leave your feedback and ask any questions about SmartBrew.
Mission Statement & Objective Statement
Mission Statement
- Our mission is to provide customers with an easier way to make and enjoy coffee.
- We want to reinvent coffee-making as a personal experience.
- We aim to create a positive impact for coffee lovers worldwide, our employees, and the community.
Objective Statement
- We aim to achieve our goals by creating a reimagined coffee machine designed to make personalized beverages.
- We will use cutting-edge technology to ensure the smooth operation of the machines.
- We will develop an intuitive interface to create a hassle-free, enjoyable experience for the consumers.
SWOT
There’s a large market for coffee machines in the US and worldwide. Smartbrew has unique features, which allow users to customize their drinks. We use the latest smart technologies, and our support team is available 24/7. Our product is easy to use and offers a one-of-a-kind storage system.
Smartbrew is not a budget coffee machine, which slightly limits our marketing opportunities. Our brand is unknown and is likely to experience difficulties competing with the major corporations. We have to invest in our app to keep it up-to-date constantly. Since our coffee machines are technologically advanced, they are more prone to breakage compared to simple models, and technical maintenance might prove quite expensive.
We can sell other goods under our brand – coffee beans, cocoa powder, creamers, and so forth. We are going to promote our product mainly through social media (Facebook, Instagram). However, as we grow, we could consider other methods, such as offering a sponsorship deal to a sports team. We are going to work with Amazon and other online retailers to enhance the distribution of our product. We could also partner with the local coffee shops and offer them good deals for our machines. In the long term, we should consider entering the global market to increase our profits and popularity of the brand.
We are likely to face serious competition from well-established brands, such as Nespresso and Keurig. The current economic situation is difficult for opening a new business, and COVID-19, in particular, can affect the purchasing power of the consumers. Our product could become outdated if competitors come up with a more evolved technology. Chain coffee shops, such as Starbucks and Dunkin’, also represent a threat as they are taking over the market, and the pressure on the local coffee shops is increasing.
Strengths
- The large market for coffee
- The personalized features of the product
- Use of smart technologies
- 24/7 support
- Easy to use
- All-in-one storage system
Weaknesses
- The price of the product
- Unknown brand
- Requires regular app updates
- Prone to breakage
- Expensive technical maintenance
Opportunities
- Selling related goods (coffee beans, cocoa powder, creamers)
- Promotion of the product (ads, charity, sponsorships)
- Online sales
- Partnerships with the local coffee shops
- Entering global market
Threats
- Competitors (e.g. Nespresso and Keurig)
- Economic crisis
- Purchasing power losses due to COVID-19
- Technological progress
- Increasing market share of chain coffee shops (Starbucks, Dunkin’)
Segmentation, Targeting, and Positioning Analysis
Our coffee machines are relatively expensive; thus, we mostly aim to sell our products to consumers with higher-than-average income and local businesses. Moreover, our target audience is people aged between 25 and 50 years belonging to the upper-middle class and coming from educated families. We believe that the simplicity of use is the key factor for the consumers. It is also important to explicitly describe how our product is different from the competition to justify the high price. It is specifically designed to satisfy the needs of the pickiest coffee lovers with its limitless customization options and cutting-edge technology. As for the local coffee shops, we believe that our product is what can make them stand out in the world of global brands, such as Starbucks. They can offer a personalized experience for the customers who want something different. Our goal is to provide high-quality standardized and technologically equipped services and products to our clients.
Marketing Mix
We plan to set prices at $50,000 for the large business model, two consumer models at retail prices of $8,500 for small, and $9,500 for medium. We will also lease our machines for $299 a month for the small and $349 for the medium one. After 3 years of leasing, a consumer would own their machine. We are going to sell SmartBrew to the consumers via our website and via direct sales to businesses. We will promote our product through social media, mainly Facebook and Instagram. Trade shows could also present a good opportunity for partnerships with businesses. Therefore, our revenue is likely to grow within the first year after the launch. The costs of our products will range from $1.99 to $4.99 depending on the customization.
Budget
The total project investment will be equal to $2,000,000. This amount will be used by the company to cover product development costs, production expenses, shipping, distribution, and advertisement. The revenue stream can be defined as a source of income. Our revenue stream is transaction-based, it emerges from the sales of the coffee machines, in other words, from the customers’ payments. Moreover, the transaction-based revenue will come from the online orders coming from our app. However, this type of revenue is hard to predict and demands actions to attract clients. The revenue depends on the number of machines purchased by individuals or businesses. Therefore, it is supposed to cover the total investment only in a couple of years because of the weaknesses identified.
Control
We are going to measure the results by checking the statistics on our app, website, social media, and by evaluating the percentage of online transactions and average sales. The results may be modified by collaborating because if we work together on some product with another company, we can increase the number of customers and enhance income. Moreover, if we create discounts and coupons on our products, we will boost sales and raise our statistics. In addition, we may increase our revenue and expand our customer base by improving the quality of our coffee.
Rocket Pitch Summary
Most people like to start their day with a cup of coffee, and instant coffee does not taste as they would want it to be. Therefore, our SmartBrew coffee machine with a personal touch will allow each person to start their morning with a unique flavor. Our company is ready to introduce a coffee machine that would allow our clients to choose all the ingredients they want to add to their coffee and choose proportions.
Furthermore, the innovative intuitive interface makes it easy to use. Our support team is always ready to answer your questions and address the issues. We are using the most modern technologies to provide our customers with the unique experience.
Work Cited
Wu, Y.-L., & Li, E.Y. (2018). Marketing mix, customer value, and customer loyalty in social commerce: A stimulus-organism-response perspective. Internet Research, 28(1), 74-104. Web.