JDE noticed that coffee consumption at home was changing. Younger generations do not own coffee machines anymore, coffee bars have never been so popular and coffee machines can’t deliver the diversity the owner wants to offer their guests. JDE embarked on an Innoleaps accelerator program, to explore and in/validate their assumptions whilst thinking about the future role of coffee consumption in their customer's homes.
In collaboration with Philips, JDE had created a new appliance for premium quality coffee, with an important benefit that the consumer could make two cups of coffee at the same time. The problem was that the cost of acquisition was far too high to make it a sustainable business so, something had to change.
One of the biggest decisions to make during the project was finding the optimal consumer proposition for the new appliance. We set out and began testing a number of different positioning in the market and the impact it created with potential customers. The team from JDE was very eager to start, and after the first week, we couldn’t hold them in the building any longer! Off they went, with the task to interview their customers and all the coffee drinkers they could find to in/validate their assumptions surrounding the new appliance.
After 8 weeks we identified a new ‘route to market’ with revitalized value propositions and pricing models. The cost of acquisition was reduced by 65% and the team was able to validate their assumptions regarding the positioning of the appliance in the market. The business case is now healthy and growing again. L’OR Barista offers industry-first double shot function, and is available to purchase online, and in stores.
"It was a great experience. The lean startup methodologies helped us to speed up consumer learning and optimize our value proposition."
Jos Sluys, Director Strategic Business at JDE