“Build it and they will come,” is not a strategy; it’s a prayer”
By Steve Blank in his book The 4 Steps to the Epiphany
In any startup, building a product is only 1/3rd of the job.
The rest 2/3rd is comprised of:
Creating a market for the product
Finding a way to reach the targeted consumer
Most startups fail at the last level, even if they pass the first two🤷🏻♀️
Let’s take Juicero for instance, a startup that aimed to revolutionize the way people consume fresh juice at home.
Founded in 2013, Juicero developed a high-tech juicing machine accompanied by pre-packaged, organic produce packs.
The machine was designed to squeeze the juice from these packs, providing users with freshly made juice at the push of a button.
Initially, Juicero garnered significant attention and investment, raising over $120 million in funding from prominent venture capital firms.
However, one major issue was the high cost of the machine, which was priced at $400, while each organic produce pack was priced at around $5 to $7.
They also struggled to effectively communicate the value proposition of its product to consumers, specially when traditional methods of juicing were readily available.
Despite its innovative technology and initial hype, the company ultimately shut down in 2017 after losing about 4 million dollars per month.
Is there a way they could’ve avoided this?
What i would have done for starters, is aim to develop a juicing machine that is more cost-effective to produce & can be sold at a price point that appeals to a broader market segment.
I mean did the team’s passion for fresh juice trump any and all market research?🌝