The creation of a new category for Zumex

I have once heard the following comment: We live in a society in which if you are 2.10 m tall, you have good chances of becoming a social misfit; except if you play basketball! in which case you would stand a good chance of becoming a society star. The value is also a matter of channel; products which have little value in one channel may have great value in another. As in the example of basketball and tall people.

Zumex is one of our oldest clients (we have collaborated with it for more than 15 years); we have learnt a lot together and we have developed new modes of our services; together we have also discovered the power of ‘creating new categories’, which can later become genuine reference points and leaders worldwide.

In the orange market, the value is centred on size, weight, roundness and aspect; those oranges that comply with these principles are sent to high-value markets (export); on the contrary, those oranges that are small and uneven-shaped are usually sold at low prices to industrial juice producers for the production of orange juice for the mass market where size does not constitute a relevant aspect.

Zumex found out that, in the squeezed juice market for the HORECA sector, small and big sizes had the same value; on the basis of this finding we have built a new category of products and services: The natural squeezed orange juice for the HORECA market. As a result of this, the orange-coloured ZUMEX machines have come up and they have delighted us with their ‘live’ operation while they squeezed our juice.

Once this new channel of value for oranges was detected (as basketball for tall people), a value proposal was put forward by considering the needs of the different actors involved in the detected business model: Valuing small-sized oranges for farmers, exploiting the natural juice product for the catering business without taking up too much time from people working in the sector, offering consumers natural freshly squeezed juice; all this carried out with a huge perception of the real value and perceived by the consumer.

As Zumex was the first to land in the detected ‘new opportunity territory’, the latter was exploited and structured according to Zumex’s vision and on the basis of the company’s competitive advantages. The market was conceived vertically and structures were created to manufacture and distribute the new supply of squeezers: Squeezer operating companies by means of leasing these machines to catering companies, the distribution of consumable components and accessories for juice exploitation (bottles) and the distribution of small-sized oranges (machines are equipped with a gauge that limits the input of oranges of a certain size) for the squeezing and the juice production process.

When defining the squeezer catalogue, juice consumption demands and the local exploiter’s typology (bars, restaurants, service areas, airports, etc.) were taken into account to compile it; then the range was expanded to new exploitations such as large surfaces and fast food restaurants.

Today Zumex is a market leader in natural freshly squeezed juice and stands out among its competitors due to its market p

erspective and the evolution of the category toward a healthy diet and food processing (blenders, etc.).The business model is defined sustainably by the constant feedback of its components, the exploitation of the latest know-how (patents) in the mass market and capital resources and particularly by its ecosystem definition: It exploits a supply of products (machines) offering a service (natural squeezed juice and machinery leasing) and it provides it with consumables (oranges and bottles).

As Víctor Bertolín, CEO of the company, told me once: ‘As pioneers and leaders in the category, Zumex founded the ZUM family, acronym with which most competing companies start with. That’s the benefit of having discovered it.’

 
Foto

Mª Luisa Vives – Jaime Gross

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