Literature Review
In order to successfully promote a product, position it and perform market research – it is necessary to use competitive analysis. The central tasks of this approach are to identify the strengths and weaknesses of the product, identify the target audience, study the development strategy and optimize the production mechanisms (Bavister, 2018). Thus, it is consumer trends that become the object of analytical research because, based on customer needs, it is possible to develop strategic planning and product positioning.
Among the industries, the household sector was chosen, which is represented by a large number of home appliances: refrigerators, washing machines, dishwashers, vacuum cleaners, and coffee machines. It is the latter device that is of increased research interest because, as we know, the demand for automatic coffee machines has been actively increasing in recent years (TMR, 2017). Moreover, according to Wood (2020), from 2020 to 2026, the average annual revenue growth from this sector will be 4.56%. This trend is most likely due to both the gradual reorientation of consumers from street coffee shops to home/office coffee, which has a much lower production cost. On the other hand, the environmental consciousness of society dictates specific rules of life, among which the rejection of plastic and paper utensils, including disposable coffee cups (Yun & Kim, 2019). Whereas take-out coffee shops fail to develop effective alternatives, consumers have no choice but to opt for homemade beverages. Finally, technological advances have reached incredible heights for kitchen appliances as well, so often the modern coffee machines discussed in this competitive comparison have advanced functionality: WiFi, Bluetooth, built-in scheduling, heating temperature selection, and even coffee bean break size (TechGuru, 2020). All of this combined leads to the conclusion that coffee machines are an essential part of the modern kitchen, and therefore in high demand. In turn, this generates much supply.
Excel Comparison Table
Summary Reviews
An analysis of the table above generally yields mixed results: while in some points one of the products clearly leads, in others, it can lose to a competitor. It is additionally worth acknowledging that for homogeneity of the sample, when searching for coffee machines on the site of the online store Homedepot.com a price filter was installed to compare competitors in the same class. Below is an extensive review of the comments and customer feedback collected for each of the products listed individually.
BLACK+DECKER. More than ninety reviews were collected for this product, with an average customer rating of 2.7/5. As expected, customers rated the coffee machine’s strengths and weaknesses, with the latter being characterized by lower ratings. Among the positives, many customers noted the compactness of the device, the programmable setting, availability of a timer, the speed of the beverage creation, and the drip mechanism’s quietness. In addition, some noted the relative ease of care and cleaning. Negative reviews mostly assessed the defective product or fragility of components: for example, one customer had a cracked glass when washing the container.
Brentwood Appliances. Comparatively, fewer reviews are available for this product, and there are only two on the website of the online store, and both of them are positive. Customers praise the automatic shutoff and the small size of the coffee machine. On Amazon, the average product rating is 3.2, with many customers rating the unit as a temporary, non-permanent product for the move. In addition, the price proposition is comparably leading, as other competitors in the lineup provide a higher price tag. Shortcomings were noted, including the lack of light indication, manufacturing defects, slowness, and low bowl capacity.
PREMIUM. The average rating for this product is 3.4, with most of them positive. Many customers noted the convenient size of the product, but some complained that the capacity is too small to make the stated number of coffee cups. It was also noted that the prepared coffee is not strong but, according to consumers, tasty. The products’ price also attracted many, but one customer was angry that this coffee machine had programmable functionality. At the same time, the product has a relatively low price, the second lowest, which was repeatedly noted in the comments: in general, this is both a strength of the product and competitive advantage.
Holstein Housewares. The average rating for this coffee machine was 2.3, with many customers complaining about the coffee grounds filter’s uncomfortable shape and constant water leaks. In addition, it was indicated that the coffee machine was often returned because customer expectations regarding the quality, size, or reliability of the appliance were not met. While the compact size and color scheme appealed to consumers, there were complaints about the appliance’s lack of automatic shutoff. Several customer reviews were short on words, but in them, they pointed to a good, working coffee machine that was perfect for a small kitchen.
Analysis of Strengths and Weaknesses
BLACK+DECKER. This coffee machine’s serious advantages are the coffee cup capacity, compactness, and relatively light weight, quiet mode, brewing speed, and price. Among the product’s weaknesses are high power consumption, the non-tolerant glass material of the cup, the comparatively high weight, and the lack of additional features. This coffee machine generally does a good job, and it has some of the PoP that customers want to see in such a device: reliability, speed, capacity. Qualitatively, this product stands out (in the series being compared) only in the number of cups.
Brentwood Appliances. This device is compact and lightweight, has an average cup capacity and an average number of prepared drinks. From the weaknesses should be highlighted cheapness of the production materials, frequent leaks, and high-power consumption. The PoP of this coffee machine are fast brewing, medium capacity, and multifunctionality. Competitive advantages are built-in functionality.
PREMIUM. This coffee machine takes up little space and has the lowest weight in the compared series. Except for defects, it has enough PoPs: meets the purpose, cooks quickly, has a medium capacity. Among the weaknesses are high power consumption and cheap materials, leading to rapid damage to the device during operation. The PoDs are functional features of the equipment and low weight.
Holstein Housewares. This device copes well with its tasks, has a compact size, and low power consumption. From the negative aspects should be highlighted the low capacity of the bowl and the cheapness of materials. The PoPs are functionality and compliance with customer expectations, while the PoDs are represented by selecting the coffee strength and built-in functions.
Positioning map
On the above two-dimensional positioning map, the halfway measures are the final cost of the coffee machine to the consumer and quality. It is worth recognizing that the criterion of quality is subjective and was summarized from the analysis of comments and customer feedback, as well as warranty service. Consequently, the map clearly shows that the leader on two points is the product brand BLACK+DECKER, having the highest price and comparably high quality. After the coffee machines of this company, Holstein Housewares, PREMIUM, and Brentwood Appliances go one after the other (on the price axis). According to their arrangement, it can be concluded that the most significant compromise of quality and price offer is characteristic of PREMIUM. At the same time, having the second-highest price in the series, Holstein Housewares provides the lowest quality products, which can be found by a large number of negative reviews. Thus, in the line under review, this coffee machine can be considered as the losingest option. Brentwood Appliances‘ products have the lowest price point, but in terms of material quality, this did not mean a wrong product. On the contrary, as shown, many reviews praised this coffee machine.
References
Bavister, S. (2018). The importance of competitor analysis for business growth. LexisClick. Web.
TechGuru. Ultimate guide to the best smart WiFi coffee makers for 2020. Nerd Techy. Web.
TMR. (2017). Coffee machines market. Transparency Market Research. Web.
Wood, L. Global automatic coffee machines market (2020 to 2026) — by type, application, and region. GlobeNewswire. Web.
Yun, S., & Kim, T. (2019). What do coffee shop entrepreneurs need to do to raise pro- environmental customer behavioral intentions? Sustainability, 11(9), 2666-2685.