GROUP MID-TERM ASSIGNMENT
Ivanova Julia s161844 Carsten Eliasen s102974 Jakub Brzosko s161116 Strategy, design and market Doa’a Musleh s160301 Course number: 42085 Sandie Akkermans s133781 Group 19 The Product
Bodum is a company which makes a lot of kitchen utilities one of which is Bodum Coffee Mug. The Bodum coffee mug is a coffee mug which you can take with you on your way. It holds your beverage warm or cold depending on what you put in the mug.
The goods the product provide: - Keep your beverages at the right temperature. - Be able to have your warm/cold beverages with you on the go. - Have your coffee mug with you without burning your hands.
Value Framework From the user’s point of view:
Economy Psychology Sociology
Save money Save time (less stress). Let one express their personality towards others. The mug will keep the coffee warm and the juice cold - Which has a calming effect. Belong to the “coffee to go” lifestyle. Feeling of being included.
From the Organization's point of view:
Economy Psychology Sociology
Standardized shapes makes production cheap Proud of working at bodum The employees identify due to their reputation. themselves in the brand. The customization of colors gives the . Buying one product instead of continuous paper mugs.
From the Ecosystem's point of view:
Economy Psychology Sociology
The need for keeping things warm/cold will It stimulates coffee market, Save energy (less coffee never go away (will always be a potential for requiring all the players to warming up, energy for revenue). react. paper mug production). Creating labour value, many persons are New players in the market Save ressources (paper). involved in the production (nescafe, quick coffee).
1 From the user’s point of view:
Economy Psychology Sociology Ecology
More people are involved In the ideal world the society Easier for people who don’t The users changes the in the production, supply would be a happier place to drink coffee to blend in, but perspective towards using chain, the society will have be in in the morning. still differentiate from others paper cups, so they will use more jobs. by customizing your mug. less paper mugs. More people making money -> wealth for the society.
Value Proposition
The user needs coffee every day, and it would be nice to take the coffee with you. This can be done by using Bodum Coffee Mug, which makes your coffee stay warm as well. You can take it anywhere you go, so you do not have to stress about coffee in the morning. Instead you can calm down and drink it on the way. With the coffee from home you will save money during the day. The mug is affordable, handy, can be customised in any color you want and taking away an everyday problem with cold coffee or warm lemon- ade. This will improve the user's everyday life and experience around drinking coffee. The users will become more aware of the environment, in the term that Bodum coffee mug can be used more than once, com- pared to a paper cup, which means that the mug helps the ecosystem because it’s sustainable.
Strategies to change users behavior: - Focus on the sustainability. - Save money, if you take the coffee with you. - Warm/Hot Coffee the rest of the day.
The organization is morally responsible in using recycling materials (few polymers, steel), furthermore the idea of having one cup pr. person will save tons of paper and plastic as people will use less disposable cups. This will be good branding for the organization since it looks like you focus on sustainability and an eco friendly environment. It’s not a product that will be expensive to produce, since the design is relative- about their surroundings, by using the Bodum Coffee Mugs and not the paper cups.
On the next page you can see our value propositions canvas.
Competitors
The competitors are chosen by using the website www.inspiration.dk (14.10.2016), which is a well-known store for kitchen products and such. It gives a good indication of which travel mug brands that are the most popular.
2 THE VALUE PROPOSITION CANVAS
Value proposition Customer segment
Gain creators Choosing colors Good branding strategy Prestige elements HIgh quality material HIgh product quality Save time warm coffee/cold Products &money FIT lemonade & services Gains Customer Jobs in a group (students, Pains workers Travel mug Desire to have more coffee Counter that sense Drinking to much how manye coffee cup coffee unhealty Pain relieves you drink Not secure unlocking Improve the locking system system
3 PORTER 5 FORCES
THREAT OF ENTRY BUYER POWER
Quite high, there are many Really high, buyer can choose competitors and potetial com- among many different brands with petitors. Even considering different quality levels but low economical scale it will be switching costs to buy from. Further- high because the product is more you can purchase this product cheap to produce. in large volume.
INTENSITY OF RIVARLY
Quite high, many compatitors doing the same product, and the quality difference is not so big, and they all have the same usage. Exit barries are high, as it is an “never dying product”.
SUPPLIER POWER THREAT OF SUBSTITUTION
Low, supplier can be easily changed in High, the product is widely case of price increase or other issues, produced, by different companies due to the fact that materials used by the and in different countries. there are company are widely available and man- no switching cost for customer, as ufacturing in today's world is very flexi- thermal cup does not require any ble. dedicated solution.
4 Strategy canvas (current situation)
The current strategy canvas is illustrating the situation between the competitors right now. The value curves are based on group discussions and information from the brands websites.
As you can see it is a red ocean. There are many competitors. If you search on “travel mugs” on google you - ton are converging which could mean that it is hard to differentiate on the market. To clearly differentiate you will need to either enhance the features or create a blue ocean market. As the already existing features seems at their best regarding technology, design and material, we will look into creating new values that can place our product in a blue ocean.
5 Value curves -Extended
To differentiate on the market and create a blue ocean we have come up with some additional features to the product. These can be seen in the extended strategy canvas beneath:
Strategy canvas -Extended
The new value curve is called “Bodum 2.0” in the canvas. A new design could include heating elements to warm up water so you are not depending on a external devices to heat water up. Another new value could be multiple containers within lid, to hold coffee and milk, so you will have all favourite ingredients with you. To recharge the battery you could have a USB solution. It is most popular charging solution.
The four actions framework
In relation to the new changes there are some changes in the value curve. These changes including the new additional features can be seen in the scheme on the next page.
As one of the new features is to have warming elements in the mug the product will be more expensive due to the additional elements. A design-related change is the easiness regarding the opening system, which will be less user friendly as the mug will maybe need a lit to hold the extra rooms for milk and quick coffee.
6 REDUCE
Capacity Easy to open Color variations
ELIMINATE CREATE Because many of the factors CREATE Possibility to heat uo water are fundamental for a travel Recharge by USB cup no factors are eliminated VALUE Rooms for milk and quick coffee Clickable handle
ARISE
Price Security of locking/closing system
The Blue ocean
There are a lot of competitors on the market, therefore if Bodum wants to be the leader on the market and be the blue ocean, then it is necessary to think about how to improve the Bodum mugs to keep and get more customers. As all the competitors offer mugs that keep the coffee/chocolate warm. If the Bodum mug shall be different from the majority, for example by adding new valuable things to the product/mug, for the customers.
Possible improvements which may ensure staying in blue ocean could be e.g. incorporating heating up system with rechargeable battery, that would let the user heat up the water directly in the cup. The whole thing would be rechargeable via USB socket, as it is the most common way to charge devices. Second idea is to add a lid with storage place inside, that would allow one to have dehydrated drink of choice with them, just waiting to add water. Third idea is to create handle, just like in average cup, which could be attachable to bodum mug, in order to prevent user from burning their hands.
7 Reference List
Lectures:
Lecture slides from course “42085 Strategy, design and market”
Websites: http://www.inspiration.dk/ http://www.bodum.com/dk/ https://www.stelton.com/ http://www.evasolo.com/ http://mightynest.com/learn/getting-started/easiest-changes/6-reasons-to-use-a-reuslable-coffee-cup
Indications of contibutions
The whole group did the work together, we created a google document, where all the members could see couple of times, work one by one on questions, discuss and write our outcomes.
8 Appendix
BODUM Price: 189,95 DKK Capacity: 0,35 L Year funded: 1944
EVA SOLO Price: 399,95 DKK Capacity: 0,5 L Year funded: 1913 Features: Possibility for attaching, Colour customization, Simple design
ALFI Price: 199,95 DKK Capacity: 1 L Year funded: 1914 Features: Can use the lid as the cup
STELTON Price: 149,95 DKK, Capacity: 0,2 L Branding: Innovative, trend-setting design house based on Scandina- vian design philosophy. Year founded: 1960 Features: Click function for open- ing and closing. Able to drink from every side of the mug. Easy to dry after wash Sketch of the value proposition product