Blog topic for week of March 21, 2012
Estimating market size depends on four different
cuts of market data:
(Discuss with respect to your team's new business)
(1) demand
Our product is Java Fix Stix which are basically a convenient way to add creamer/sweetener/flavor
to a cup of coffee with one simple straw-like container. With today's
busy society where everyone's always in a hurry, any product that adds
convenience and time savings to life, is a good bet. Just as the Keurig
revolutionized the customized single cup of brewed coffee in the home
and workplace/office, so will Java Fix Stix revolutionize the coffee
station with a cleaner, quicker one-step way to add ingredients and stir
your cup of java.
(2) addressable market
Our
plan is to launch the product here in the North East and basically
cater to the on-the-go coffee crowd. This could be at the local
convenience store, at the office or at home.
(3) realistic
opportunities vs competition
Realistically speaking, there are current products such as International Delights and Coffee-Mate which
make similar single serving containers, but they are bulky not as
customized, not all made with real dairy and none that come with a
convenient stir as part of the package. Like the Keurig, we believe people are willing to pay for the convenience and customized ingredients which are color-coded for easy identification of YOUR particular mixture.
(4) targeted selection of "winnable"
market opportunities.
If we can develop a
formula that tastes better than the current products out there, I
believe we can win over a good many consumers that use International
Delights and Coffee-mate products.
Having seen your business plan and presentation already, I really think that there is a market for a product like this. I think that there is a demand and that it will be critical to develop a formula that will taste better than the current products out there. As far as estimating market size, I think it was a smart move for you all to focus marketing this product for at home use or at local businesses. It was key for you to identify the size of this market in comparison to convenience stores and gas stations. I think there will be a lot more profitability in serving the on-the-go at home crowd since I myself fall into that category and can relate to wanting a high quality, easy to make coffee solution.
ReplyDeleteI can also relate to the "on-the-go" coffee maker/drinker and i love this idea. Coffee is such a huge market with such high mark ups that something like this can be very successful. I agree with Max, since coffee is such a big market, narrowing down to home use or local businesses is a smart way to get a foot hold.
ReplyDeleteI'm looking forward to seeing this on the market so I can finally clear out the boxes of sugar and non-dairy creamer from my desk drawer.