|| Aditya Anupkumar / Andreas Kleinschmidt / Antonella Squadrito / Arturo Gutierrez / Giuseppe Bono / Guilherme Costa ||!Information Technology and Innovation // Business Model Analysis! Group A1-C! Group A1-C!
MyMuesli.com is a mass-customized service lettingusers prepare their ownmixes of organic Mueslifrom 80 possible organicingredient options.!These mixes are deliveredto consumers’ doorstepswithin four days.! Group A1-C!
We believe that the core user base forMyMuesli.com is who John Gerzemacalls “Spend-Shifters”: value-oriented, Esteem!sophisticated consumers. ! Belonging!Maslow would perhaps have placedtheir need-state relationship withMyMuesli.com in the Belonging andEsteem blocks of his pyramid.! * Spend Shift, 2010 / Y&R BAV Data!They crave a new, more ‘authentic’consumption. They’re technologicallyengaged, want their own spin on stuffthey do, and they want to live healthy.! Group A1-C!
What is the customer value proposition?! Group A1-C!
With 80 ingredients (clockwise, types ofﬂavoring, types of nuts, types of fruits,types of grains/cereals) to choose from,you can have 566 quadrillion combinationsof organic Muesli via their service,allowing every single person to have aperfectly customized breakfast experience.!There is also something to be said withregards to the “signaling” that is inherentin using certain kinds of products andservices – you can’t deny that, beyond the‘goodness’ of the product, there is likely acase of communicating ‘discernment’inherent in buying it.! Group A1-C!
Another Model we could apply to understand what itis that MyMuesli.com delivers would be the Tetrad,which explores the impact of a given medium/practice on its surroundings. ! Authen1city Simplicity The impact is always four-fold – new media/practicesenhance – reverse – retrieve and obsolesce oldmedia/practices when they come into being.! MyMuesli.In the case of MyMuesli.com, we could posit that, in com the breakfast experience, it enhances ‘Authenticity’,reverses ‘complexity and ritual’ to ‘Simplicity’, Ea1ng Mass retrieves ‘Eating Healthy’ and obsolesces ‘Mass Healthy Consump1on Consumption’ in the form of cereals.!This is a useful way of understanding the product’simpact on culture, and where future challenges mayarise from.! Group A1-C!
MyMuesli.com has a two-pronged strategy. !It’s consumer-facing side is one of ProductLeadership and Customer Intimacy. It delivershealthy food in beautiful packaging right to yourdoor. It also develops use-cases. So they have akick-start cereal, organic porridge, weight-losscereal, cereal designed for kids, Gluten-free, work-out cereals, biking cereals; all based on whatpeople have liked/bought/used the product for inthe past.!And they deliver this through OperationalExcellence, with a technological grounding thatallows them to mix 80 different kinds of ingredients(566 quadrillion variations, if you recall) and createand deliver the ﬁnished product to the user withinfour days, and they do so incredibly cost-effectively.! Group A1-C!
MyMuesli.com taps into a major emerging cultural trend– that of mass-customization / bespoke services. Itharnesses the true spirit of Long Tail economics. Wherethe Long Tail posits that, no matter how unconventionalor arcane an offering, it will ﬁnd a buyer; MyMuesli.comﬂips this on its head by building their technology andsupply-chain around fulﬁlling those very tastes, from themost obvious to the most arcane. !The graphic you see to the right is basically thepermutations and combinations of the mixes you canchoose, and the size of the circles indicates popularity.Something for everyone.!But it’s not just that. As we explored with the MaslowHierarchy and the Tetrad, the service also has animportant socio-psychological dimension – it generatesthat ring of perfection (YOUR perfect mix) combined withauthenticity and simplicity (healthy living).! Group A1-C!
What is the vulnerability in this business model?! Group A1-C!
To look at potential threats we explored Michael Porter’s Five Forces model. Oneassumption we are going to make is that the “Industry” in which MyMuesli.comoperates is “Organic and Healthy products” – so think of Whole Foods, Innocent,etc as potential competitors.!When we studied suppliers, we found, for example, that at one point Suppliers! New Entrants!MyMuesli.com had bought up ALL of the frozen strawberries in Germany to use intheir products. That is strong supply-chain management, and they would have toensure they remain in a strong position with suppliers (think about how Applekeep RAM prices down for themselves, for example – they use 60% of the RAMproduced in the World.)!We have already discussed customer needs and between Customer Needs andIndustry Competitors we believe that MyMuesli.com is well-placed.! Industry Competitors!The market is still very new, but for example we discovered an Australiancompetitor (MixMyMuesli.com.au) who started up two years after MyMuesli.com –so there is the possibility of competition, but in a still growing market, we believethere is room for more competition.!Which leaves us with Substitutes. A prolonged recession or other system shockscould make their broader user-base shrink as people cut back and search forcheaper alternatives, of which there are many. But when you consider that Substitutes! Customer Needs!MyMuesli.com has grown exponentially YoY since they were ﬁrst created in 2007,they have so far shown themselves to be immune to the current crisis.! Group A1-C!
We feel, based on our analysis, that MyMuesli is asustainable enterprise, certainly in the short run. Apart fromdeveloping use-cases for consumers, they have alsoexpanded their product lines carefully.!They now sell highly cost effective trial packs featuring anarray of mixes, so you can try out the various ﬂavors andcombinations for the same amount of money. They also sellmix-and-go insta-packs, to expand where/how consumerscan consume the MyMuesli experience. And in the past yearthey have also started developing recipe guides, porridges,juices and coffee to make MyMuesli a much larger part ofpeoples’ food habits.!Perhaps most importantly, they have begun opening real-lifecafés. This is important because it allows MyMuesli totransform itself from an online-store-that-delivers-what-you-like, to a Disney Land of healthy eating.! Group A1-C!
MyMuesli.com made €2million+ in revenues its second year,and since then has made about €300,000 in proﬁts p.a. * Spend Shift, 2010 / consistently, even as its workforce expanded from 3 people Y&R BAV Data!to 100+, and they expanded from Germany to Netherlands,the UK and Switzerland in this time.!We referred to “Spend-Shifters” as the potential consumerfor MyMuesli.com. The report also highlights some of thepercentages of existing populations who exhibit similarbehavior.!So from the countries MyMuesli.com is not yet present in, wesee that Spend-Shifters constitute 55% in the US, 53% inFrance, 51% in Canada, 45% in Australia and Italy, 44% inSingapore, 41% in Brazil, 38% in Russia and Spain, 34% inIndia and Mexico, and 21% in China. !We acknowledge that not all these groups can afford to buyMyMuesli.com, and maybe more than just this mindsetconsumes it. !But if this is the mindset MyMuesli.com taps in to, we canagree they have much room for expansion.! Group A1-C!
We believe that the future for mass-customizedweb-to-real-life businesses is strong. We love,for example, projects like Quarterly.Co andKopi; which combine exploring ideas, foodsand so on, with an element of social curation.!And then there is the organic and natural foodsmovement, that has only grown and grown inthe past decade. !So to close, we believe MyMuesli.com is anincredibly fascinating project as it harnesseselements from both these major trends, andwe’re keen to seeing how it develops over thenext few years. (We’re all signed up on thewaiting list for when they launch in Spain. )! Group A1-C!