Quote: (05-25-2017 12:40 PM)Zelcorpion Wrote:
The Juicero is already legendary in terms of the teardown both from an organic/health food angle as well as one from a technological or business angle.
The founder was a juice freak and he thought that this would be a good idea, since he based his predictions on coffee espresso machines and likely the Nespresso brand.
But the difference of course with Nespresso is that while it too is an expensive product, it is also a very convenient one while delivering a ready-made coffee that is indeed better than most espresso machines (never mind the good dose of aluminum you get).
The Juicero however has a strongly different market segment - the kind of people who pay 1000-2000$ for Nespresso tabs might be willing to pay 2000$ per year for juice packs, but there is a big but.
First is the full Orwellian WIFI bullshit, second is the fact that a far smaller amount of well-off segment of the population is that health-conscious. And we have to realize that those health- and environment conscious people likely are concerned about both weaknesses of Nespresso as well as those of the Juicero - namely polluting waste production, toxic aluminum and plastic residue in your coffee and juice etc.
So essentially the target group is far lower than the Nespresso crowd. In addition you have this stupid WIFI function and the PR disaster from actually owning one of those as many people are making fun of it.
And they cannot really market it to the upper-middle or upper class, because those people pay someone to make a juice and clean the juicer for them. So this was a truly bad business-model where they utterly misunderstood the target group for your product.
Coffee is always a safe bet. An addiction versus a mere luxury in smoothies.
Also smoothies and juice is incredibly expensive to produce with very slim margins. Versus coffee which has historically had some of the best margins in food products.
The juice trend is a big fad. There are two users.
Those who have money and are last and just get it at a store.
Those that are healthy crazy and want to control what goes in it and will purchase a high grade home juicer.
This guy attempted to lure both crowds by these crowds are not the same, very different market types.