Hello everyone, and I hope everyone is healthy and doing well. Over the last week, I’ve gotten questions from people wondering what the first steps you need to take to determine if you have a product worthy of going to market with. There are two loves I have when it comes to this blog, marketing, and mysteries. This week lets look at the marketing side of things.
Well, I think I probably lost about 78% of my usual readers, but let’s continue onward and upward.
In this blog post, we will discuss what five preliminary steps you must take to determine if you have a product that you can take to market. These five steps are the first of many you need to answer, but these questions are a must before taking any additional steps. Use the product of the Edible Spoon Maker as a simple templet you can use to determine the viability of your own product. (The Edible Spoon is a real company….darn it, that’s a great idea.) To put this into context, this step is the rough outline of a story, but you must do it and answer honestly. Don’t tailor the answers to fit what you’re looking for; otherwise, your product is doomed.
New Product: Edible Spoon Maker
We will discuss new product development and rollout for the Edible Spoon Maker. In February of 2016, a new product was introduced in the United States called the Edible Spoon Maker from the U.K. This company has been around since 2011 and is headquartered in Liverpool, England. The inventor of the machine, Roy Webb, saw a need for an eco-friendly way to give out hors d’oeuvres because at the end of the night he noticed the waste bin was full of plastic spoons and containers which held the treats. Webb took notice and came up with the Edible Spoon Company.
The reason why we have decided to focus on this company is because of its simplicity of use. It’s not fancy or hi-tech, but in an era of conservation and reducing one’s footprint, the Edible Spoon Maker should be very popular, especially with Millennials and beyond.
Phase I Opportunity Identification
With its simplicity, the Edible Spoon Maker is by no means unique. There have been cutout stamps in the shape of spoons and articles in magazines such as Martha Stewart on how to make edible spoons for years. Edible Spoon Maker saw a market in making these spoons faster and better with a machine. It’s similar in theory to the George Foreman Grill. There were hamburgers before the machine, but the product makes it easier to make and clean up afterwards.
A key advantage for the Edible Spoon Maker is that currently, there are no competitors making something similar. As stated above, people can make their own spoons, but the process is made more difficult without the maker. This company had been in business in the U.K. for over five years. This machine has a niche market that will only get bigger with people’s concerns with the environment in the United States.
Phase II Opportunity Framework
When the Edible Spoon Maker was brought to market, it was simply designed to reduce the amount of trash going into landfills to a very small degree, but the thought was there. With such a basic design and this idea not being a new one, the company owners had to come up with a unique angle in which to launch this product. The concept of producing four spoons in 3 minutes with the quality all being the same and easy to use, the machine was at the heart of the Edible Spoon Maker.
The key strengths are the ability to make many spoons very fast with quality being the same. The company’s weakness is that the concept of an edible spoon is not new, and there could be products on the horizon that could compete with the spoon machine. A new company’s ability to come in and make a similar machine is a real possibility even with the patent in place.
So what in the marketplace has changed to allow a spoon-making machine to be profitable? The three main factors are people’s awareness of the environment and the trash they produce. With the Millennials now a major player in the economy, a company like the Edible Spoon Maker is the type of company they can embrace. With the concept of being “green” and overall concern the company has for the planet and producing something good to eat, the Millennials will respond. Finally, the ease of use for this product. We are not all Martha Stewart types, but this machine allows us to make something just as good in large quantities to serve at our next party with hardly any artistic energy expended.
Lastly, for this section, we will speculate on the opportunity platforms identified in a SWOT analysis for the Edible Spoon Maker.
Strengths: Easy to use, fast to produce many spoons, quality of spoons are great, multiple flavors someone could make, no artistic baking ability needed.
Weaknesses: There are already products on the market, not a new idea, very basic to reproduce, not everyone cares about being green.
Opportunities: Millennials and beyond, environmentally aware people, first on the block to have one.
Threats: Easy and cheap to make, another company can produce a similar machine, companies in it for a fast profit, Millennials ideology simply changing.
Phase III Concept Development
For this section, the Edible Spoon Maker’s main feature is its ability to make many flavors of edible spoons at a very fast rate. The spoons are very inexpensive and easy to make and are good for the environment. Even though this is not a new idea, the machine brings the edible spoons to an entirely new customer base who would otherwise be unable to make such creations. The use of good form, function, and sustainability will influence the marketplace for the better with the Edible Spoon Maker.
Phase IV Customer Evaluation
This product is so new that there are very few customer reviews for it. The ones I have seen are all five star rated. Many online articles are praising the product and suggesting that everyone buy one. Even the proponents to the Edible Spoon Maker said it’s a product that they would use only once and discard, but they will go out and buy one just to try it out. Overall, this product rates very well.
Phase V Action Plan
We must answer ten pivotal questions during the Action Plan phase to test the soundness of the Edible Spoon Maker and its viability in the consumer marketplace here in the United States.
1. Fit with the organization: The Edible Spoon Maker was created as a replacement for using plastic utensils at parties. The company is focused on making this product as clean as possible and reducing waste in landfills. With the machine, someone is capable of making 48 spoons in about 36 minutes, more than enough to create enough spoons for a party.
2. Uniqueness: This product is very unique as a machine but not in the idea of edible spoons. People have been making edible spoons for years, but the speed that it takes to make them increases by many times with the machine. For this reason, we feel that the Edible Spoon Maker can create a differentiation in the marketplace.
3. Sustainability: The “staying power” of this machine does have a question to be answered. It could be short-lived, or it could reach a cult-like following like the George Foreman Grilling machine. The marketplace will be the ultimate judge.
4. Sizable: This item’s potential could be great but runs the risk of fading fast in the market. One market for this item is directed toward the Millennials. This group has become the largest generational group surpassing the Boomer generation. This buying power is great, and so the potential of this item is there.
5. Profitability: This product is cheap and easy to make, and for a cost of $65, it’s inexpensive enough that many customers might buy one to try it out. The Rate of return for this item is excellent.
6. Growth Potential: In the last five years in the U.K., this product has grown in sales every year to the point where they are introducing it to the U.S. market this year with great hope. Short term, the growth rate is there. After five years is where the questions will have to be answered about the potential of the Edible Spoon Maker.
7. Barriers to Competition: The problem with this machine is that it’s very basic. It does have a U.S. patent, but there is a risk of another company altering the machine enough to circumvent this protection. This is an area for concern in the market.
8. Risk vs. Returns: The simple answer is YES. Cheap and fast to make and a market-ready to do their part in cutting down on carbon emissions. The Edible Spoon Maker is at least a short-term winner.
9. Customer Needs: This item does actively meet the customer needs who would buy this item. All phases of needs have been identified and addressed.
10. Value: The value of the machine is in the eyes of the people who will purchase such an item. For these types of people concerned with waste and being Green, the value will be there. For the people who are not as concerned, the value is found in the uniqueness of the product. Be the first person on the block to have one at their next party. Another great example is Fondue. Fondue was very popular in the 1960s and ’70s, and people bought these sets for the uniqueness rather than the true value. Being the first on the block to have one has value.
Well, there you have it, your roadmap to the success of your new product. Using the example of the Edible Spoon Company makes this process very easy to use and replicate to whatever product you might come up with. Just remember your old friend at the Golden Acorn when you make your first million. Take care and have a day.