An Overview of the Business Model of the Wuppertal Company Thermomix by Vorwerk
What makes Thermomix special?
The Thermomix was conceived in France in the early 1970s. At the period, "potages," or bound soups, were extremely popular in cuisine. To make these soups easier to prepare, a Swiss man residing in France at the time invented a device that combined cooking and mixing functions. The Vorwerk firm quickly recognized this invention and transformed the prior cold mixer into a heating mixer, the Thermomix. The company gradually added functions until it arrived at its current end product. As a result, Vorwerk has also undergone a lengthy patenting process to prevent similar-minded competitors from offering a comparable product. For instance, the TM5 model is covered by 151 patents.
A unique feature are the manufacturer's recipes and culinary courses made just for the gadget. These recipes are available in cookbooks, cooking classes, recipe booklets, and as a mobile application. One of the reasons for the appliance's success is that it can only be purchased during a performance in one's own house. Through direct sales, the company establishes a relationship with its consumers and earns their confidence. It's nearly tough for many people to say no, much more so when the salesperson recommends the product and speaks highly of it.
Thermomix SWOT Analysis
The SWOT Analysis of Thermomix is about the strengths, weaknesses, opportunities and threats of the companies business model.
Weaknesses:
Distribution:
This aspect is quite controversial in my opinion, because on the one hand the company has gained a lot of reputation and world-of-mouth marketing with its type of distribution and therefore has not drawn any disadvantages from the type of distribution. However, I think that it could also have advantages to expand the direct distribution that the company currently uses, especially in order to address several different customer groups. At the moment, the distribution of the goods is still very lengthy.
Price:
The appliance is currently in the higher price range of kitchen appliances. Many potential new customers think twice about buying a Thermomix, whether they really need it. However, it must be taken into account that the Thermomix is in the premium kitchen appliance segment and therefore its prices are entirely justified.
Noise:
The latest models of the Thermomix have a significant noise reduction than their ancestors. However, the appliance is still significantly louder than other conventional kitchen appliances.
Not independent:
The Thermomix does not work 100% independently. Despite the many functions, someone must be present to operate the appliance and carry out the instructions that are requested.
Business Model Canvas of Thermomix
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2 of 13 Business Model Patterns behind Thermomix
Proven strategies to design successful business models.
The Business Model Ideas Patterns are a collection of mechanics, themes and strategies used to delineate business model building blocks. Use them as inspiration and blueprints for designing your business models.
The best way to do this, is to look at the design theme and ask yourself, what would this mean for our business?
For each design theme we provide a short explanation, some key questions you can ask yourself and links to analyzes at Business Model Ideas, illustrating the design theme in practice.
Action-oriented insights
No Thermomix without a demonstration:
The Vorwerk company forbids the Thermomix to be handed over to customers without a practical demonstration at home. Why? Because it is important to the company to establish direct contact with its potential customers and thus gain their trust. That is why the Thermomix is not available in shops or online, but only on request can an appointment be made to obtain the product.
Not just a kitchen appliance:
Vorwerk not only sells a kitchen appliance, but also offers additional services such as recipes and its own platform where all customers who own a Thermomix can network with each other. The Thermomix adapts to its user, and accordingly offers and suggests recipes adapted to the user.
Digitalisation:
The company makes sure that its kitchen appliances are equipped with the latest technology. The latest Thermomix models, in particular, are updated with the help of built-in connectivity through software updates. Furthermore, users can connect their recipes to the cloud and thus also access the dishes and preparation methods offline. In addition, the company has launched the "Cookidoo" platform, where customers can download recipes directly to the Thermomix and share them with friends and family for an annual subscription of €36.
Informative
The Thermomix commercial is very informative. Information such as the functions, operation and handling are often repeated and mentioned so that customers know exactly what the appliance can do. The commercial also mentions all kinds of food dishes and books that can be prepared with the Thermomix.
Clear
When reproducing the information, great care is taken to ensure that everything is described as comprehensibly as possible. This way, potential new customers can get a clear picture of the product.
User-friendly
The Thermomix is designed to help the user and is therefore designed to be simple and easy to use. With the help of voice control and a large screen on the Thermommix, cooking with the appliance is made easier.
Functions
The whole commercial mainly revolves around the different functions offered by the new Thermomix model. Here, care is taken to ensure that all the new functions are in the foreground, but that the basic functions are still mentioned again and again in order to maintain a certain level of confidence among customers.
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