These slides use concepts from my (Jeff Funk) course entitled Biz Models for Hi-Tech Products to analyze the business model for Foodini’s Food Printer. Its food printer can print food from pre-packaged capsules that include a recorded recipe. The customers include consumers and restaurants and in particular bakeries. The value proposition includes greater convenience, aesthetics, and perhaps quality. Food manufacturers can sell their ingredients and recipes to end customers in the form of capsules that are compatible with Foodini’s food printers. Foodini protects its food printers and food manufacturers protect their capsules through patents and other intellectual property and Foodini hopes to share in the revenues from the capsules.

1. Tay Hong Chuan, David
Chin Shi Yao, Joshua
Ho Kum Wah
Lee Keng Yong, Staniel
Linda Teng Xiu Zhen
Madhushanka Herath
Muhammad Dzahir
BIZ MODEL FOR 3D FOOD
PRINTING FOODINI 2.0
Business models for
other technologies can
be found here:
http://www.slideshare.n
et/Funk97/presentations

2. INTRODUCTION

3. FOODINI 1.0
Manufacturer Natural Machines
Origin Barcelona, Spain
Technology Fused Deposition Manufacturing
Interface 7” Touchscreen, Android OS
Recipes Online Community
Methods of ingredient delivery 5 capsules (non-proprietary)
Connectivity USB, Wifi
Target users Homeowners, restaurant use
Price USD 1,366

4. CONCEPT OF FOOD PRINTING
Purchase of
FOODINI
Printer
Purchase recipe
Capsules +
Choose Design
Ingredients in
cartridges
Settings for
printer
Printing
Food ready to
be served

5. FOODINI 1.0

6. POSSIBLE APPLICATIONS OF FOOD PRINTING
• Mass Food
manufacturers
Large Food
Companies
• Food Caters
• Restaurants
• Sports &
health centers
Food Service
Industry
• Supermarkets
• Distributors
Retailers
• Bakers,
Patisseries
• Chocolates
Small Food
Companies
• Personal users
• Hobbyist
Home

7. FOODINI 2.0 ECO SYSTEM
FOODINI 2.0
STANDARD RFID
FOOD CAPSULES
EMPTY RFID CAPSULES FOR SPECIALITY FOOD
INGREDIENT MANUFACTURERS
CUSTOMERS
PREMIUM RFID
FOOD CAPSULES

8. VALUE PROPOSITION

9. Customer Segments Value Proposition
• Large food companies
• Food service industry
• Retailers
• Enable new food concepts designs
• Tie-ups with manufacturers for food ingredients
• RFID Food Capsules
• Recipe (Trade Secret)
• Efficient use of food materials
• Home users
• Small food companies
• Sleek design with small footprint in the kitchen
• Enable for entrepreneurs looking into the food
business
• Reduces “fast food” consumption
• Complex food designs in short time
VALUE PROPOSITION

10. NEW FOOD CONCEPTS
Pizza Chocolate
Design
Cookie Cake Topper
Jelly Chocolate
Truffles
Gelatin
Based Meal
Corn Chip

11. MAIN COMPETITORS
Natural
Machines
Foodini
Customized food
All kinds of food
Based on fresh food color
Longest 20 mins
USD 1,366
The
Sugar Lab
ChefJet
Customized food
Sugar and candy
Monochrome
In between
USD 5,000 (1 colour)
USD 10,000 (full colour)
Conventional
Homecooker / Restaurant
Customized Food
All kinds of food
Based on food color
Longest in hours
Manpower cost

12. 3D PRINTER COMPARISON
Foodini ChefJet ChefJet Pro Choc Creator
Price USD 1,366 USD 5,000 USD 10,000 USD 5,733
Target Users
Professional &
Homeowners
Professional use
(mixology, gastronomy, mass food
production)
Professional baker,
cake master,
restaurants
Ingredient Fresh Ingredients Sugar Chocolate
Food Type
Savory,
Dessert
Dessert Dessert
Food Colour Multi colour Monochrome Full multi colour Monochrome

13. FOODINI 2.0
Propriety capsules interface
RFID food capsule
 Proprietary food capsules to
interface with food printer to
establish strategic control
 Prevent usage of counterfeit or
imitation capsules
 Channel branding with specialty
food ingredient manufacturers
 Unique recipes
 Encoded cooking parameters in
the capsules (RFID)
 Ensure food comes out perfect
every time

14. MARKET SEGMENTS
&
CUSTOMER SELECTION

15. MARKET SEGMENTS & CUSTOMER SELECTION
Chasm Model Analysis
3D Printing Applicable Food
Target Markets
1) Short Term Target Groups
2) Long Term Target Groups
Rank
Current
Limitations
of Market
Segments
Rank
Technology
Acceptance
of Market
Segments
Rank
Current
Strengths
of Market
Segments
Selection Criteria

16. Maintenance
Support
Functions
CloudBased
DesignSharing
Regular
software
update
Capsules
technology
MultiColor
FoodPrinting
HighSpeed
Printing
RFIDencoded
capsules
Large
Food
companies
3 2 3 3 2 3 2 18 4
FoodService
Industry
4 3 4 4 3 4 3 25 2
Retailers 2 1 2 2 1 2 1 11 5
SmallFood
companies
5 4 5 5 1 5 4 29 1
HomeUsers 1 5 1 1 1 1 5 15 3
Market
TechnologyAcceptability (lowerthescore->lowacceptable)
Grade Rank
MARKET SEGMENTS & CUSTOMER SELECTION
- TECHNOLOGY ACCEPTANCE

17. Available
Market
Channels
Established Processes and
industry experience
Quality
Reputation
Usage
Scalability
Creative Culture
Large
Food
companies
4 5 5 5 2 21 1
Food
Service
Industry
3 4 4 4 3 18 2
Retailers 5 2 2 1 1 11 4
Small Food
companies
2 3 3 3 4 15 3
Home
Users
1 1 1 2 5 10 5
Grade RankMarket
Current Strengths (more Capable-> higher the score)
MARKET SEGMENTS & CUSTOMER SELECTION
- CURRENT STRENGTHS

18. Unable to
Cater for
Complex
Design
Space contraints
Lack of
technical
support
Capital
restrictions
Lack of skill in
food preparation
Large
Food
companies
1 2 2 1 1 7 5
Food
Service
Industry
2 3 3 3 2 13 3
Retailers 4 1 1 2 4 12 4
Small Food
companies
3 4 4 4 3 18 2
Home
Users
5 5 5 5 5 25 1
Market
Current Limitations (more incapable -> higher the score)
Grade Rank
MARKET SEGMENTS & CUSTOMER SELECTION
- CURRENT LIMITATIONS

19.  Short Term and Long Term Target Groups :
• Small Food Companies followed by Food Service Industry
 Long Term Target Groups :
• Home Users, Large Companies and Retailers
MARKET SEGMENTS & CUSTOMER SELECTION
- TARGET MARKETS
Technology
Acceptance
Rank
Current
Strength
Rank
Current
Limitations
Rank
Grade
Target
Groups
Rank
Large
Food
companies
4 1 5 10 4
Food
Service
Industry
2 2 3 7 2
Retailers 5 4 4 13 5
Small Food
companies
1 3 2 6 1
Home Users 3 5 1 9 3
Market

20. * Baker & Patisseries
* Food Caterers
* Restaurants
* Personal Users
* Hobbyists
* Mass Food Manufacturers
* Supermarkets
* Distributors
CUSTOMER SELECTION & MARKET SIZE
Mass Market
(Long Term)
Niche Market
(Short Term)

21. 3D PRINTING APPLICABLE FOOD
 Suitable Food Printer - Foodini 3D Printer
 Highest Applicable food - Cakes and Cake toppers
 2nd Highest Applicable Food - Chocolates
 3rd Highest Applicable Food - Sugar candies and Pizzas

22. VALUE CAPTURE

23. VALUE CAPTURE – MARKETING
 Social Media
 Facebook
 Tie-ups/Partnerships with key
opinion leaders (e.g. Michelin
star chefs) & brand advocates
 Enter major trade shows to
showcase product and increase
publicity
 Consumer Electronics Show (2014)
 Web Summit (2014)
 China Hi-Tech Fair (Nov 2014)
 Mobile World Congress (2015)
 Kickstarter as our funding source
partners with The Culinary
Institute of America to Advance
Food 3D Printing

24. VALUE CAPTURE
 Distribution Channels
 Direct sales of our products (food printers and
capsules) from our website
 Promotions with supermarket
 Charging more for premium food ingredients

25. POTENTIAL BUSINESS MODEL

26. SCOPE OF ACTIVITIES

27. SCOPE OF ACTIVITY – FOOD PRINTER
Food Printer
Core Value Creation
Done by FOODINI 2.0
1. Proprietary
food capsule
interface
2. Proprietary
RFID food
capsules with
cooking
parameters
1. Fresh
ingredients
2. Potential tie
in with
specialized
food
ingredient
manufacturer
s
Collaboration
with Partners
1. Marketing &
Distribution
channels
2. Recipe
creation /
sharing
3. Distribution
of products
Outsourced
1. Manufacturing of
food printer and
consumables
2. Proposed
standard file
format for our
food printer

28. Technology
Improvement
• Seek new
technologies for
next-generation
products
Product
Development
• Seek out
potential
partners
• Work with
alliances and key
partners
Marketing
and Sales
• Review channels
to increase reach
and knowledge of
product
• Creation of
knowledge
database online
• Creation of
“Foodini Club”
Customer
Manufacturing / Assembly
SCOPE OF ACTIVITY

29. SCOPE OF ACTIVITY – COMPANY ROLES
$
Integration of propriety interface
Sales and Distribution Channels
After sales services
$
Product
Product

30. In-house activities
(Core Value Creation)
Contract
Manufacturer
Distributor
& Shipping
SCOPE OF ACTIVITY - VERTICAL DISINTEGRATION
After Sales
Services
Customers
Network
Effect
Outsourced

31. SCOPE OF ACTIVITY – CORE VALUE CREATION
 Working with niche food ingredient manufacturers
 Special formulated food ingredients for use with our
printers

32. SCOPE OF ACTIVITY – ALLIANCES
 Strategic alliances with our niche food ingredient
suppliers (speciality chocolatier like Pierre Marcolini)
to create synergy in food recipe creation.
 Special tie-in with social media celebrities (on YouTube
channels) to create brand awareness

33. STRATEGIC CONTROL

34. Supply
Proprietary
Capsules
Customer
Service
Support in
Maintenance
High Start-up
Cost
Lack of
Operations
knowledge in
3D printing
Dedicated
supply chain
in capsules
distribution
Niche Market
BARRIER OF ENTRY

35. STRATEGIC CONTROL – STANDARDS
 Proprietary food capsules to interface with food printer
(Patent)
 Adoption of stainless steel capsules (FDA compliant)
 Good temperature control capabilities to maintain food
consistency and textures
 Proprietary interface prevents use of counterfeit and
imitation products
 Encoding of information on capsules (Trade secret)
 RFID capsules enable correct cooking instructions for
specific food ingredients
 Collaboration and tie in with specialized food ingredient
manufacturers

36. STRATEGIC CONTROL – STANDARDS
 Common-platform food printing file format
 Adoption of widely adopted food printing file format (STL
and XYZ formats) would allow usage of commonly created
designs.
 Cooking instructions kept separate from the food printing
file format to lock-in customers.
Food design
(Common
source)
Cooking
Parameters
(Proprietary
control)
Cooked
food

37. BUSINESS MODEL – SHORT TERM GOALS
 Create an ecosystem of products surrounding Foodini
 3D printer oven – for products such as cookies and
cakes
 Substantial R&D effort to explore advanced technologies in
bringing 3D oven to reality
 Children marketplace (new market segment)
 Children curiosity generates revenue
 E.g. Custom made candy e.g. lollipops

38. BUSINESS MODEL – LONG TERM GOALS
 Create a sustainable portfolio of products
 3D food printer for airplane food
 Passengers can enjoy demand for fresh food system on
board e.g. waffles and pizzas instead of re-heat meals
 Spur passengers’ curiosity
 Payment may be made via credit cards
 Exploring novel ingredients using tie-in with suppliers
 E.g. proteins derived from algae, beet leaves insects and
more prosaic fare
 3D food printer for cruise operator

39. CONCLUSION FOODINI 2.0
 Desirable 3D food printer
 Business model with high barriers of entry
 Proprietary Food Capsule interface
 Encoded RFID Food capsules with cooking parameters
 Customer segments with immediate demand for our
product
 Affordable pricing
 Long term product portfolio