The most expensive coffee and product development
Placing the best, most affordable and hopefully most desired product on the market is every businessman’s goal. Sometimes we prevent ourselves from reaching the optimal levels of product development because we take the product and process far too seriously. The route to this end may be something other than what is taught in MBA classes.
The optimal development outcome is to deliver a product under budget, over functional and ahead of schedule. Is this really enough? What about quality standards? Achieving those Six Sigma performance levels, reaching the statistically minimum accepted level of defectives should bolster product acceptance. Yet, even with this level of quality there needs to be more. There are the marketing efforts to convince people that their lives are better, more fulfilling and less stressful when they use this new product. Companies employ legions to generate market buzz and customer testimonials. There are far easier methods to make your products the most sought after on the planet. After all, what is high quality and how is it really valued by consumers.
Kopi Luwak is the most expensive coffee in the world, selling for between $120 and $600 per pound in United States. The coffee is grown in Indonesian and produced in a singularly unique manner. Civets, native cats, are fed raw coffee berries, which are digested except for the coffee bean. The bean passes through the digestive system and is defecated by the animal. We are told that the beans are then collected, washed, and given only a light roast so as to not destroy the complex flavors that develop through the process, and offered for sale. These are the facts known to every civet coffee consumer.
What is the connection to American product development processes? Despite the combined efforts of major US corporations, a few marketing geniuses from Indonesia have shown the simple way to success. The United States spends more than $320 billion annually on R&D, to remain at the leading edge of technology and maintain market share. The Indonesian coffee growers simply catch a few more civets and feed them coffee berries. The United States spends billions more on developing distribution channels for our product supply chains. The civet coffee growers, they use small one pound cans costing less than a dime apiece and have buyers beating a path to their door. Finally we spend additional billions on advertising and marketing, trumpeting the new and improved products. The civet coffee growers simply describe how their product is organically processed. Consumers buy every gram of civet coffee that is produced annually, while in the US, there are continuous streams of overstocks and failed products.
Let’s add an additional aspect to this analysis, honesty. By law American products need to be thoroughly tested, extensive records maintained for three to seven years, and insurance bought to cover liability. The directors and executives of companies are held accountable for the accuracy and details of their product development and QA records. Yet, for all of the experience, professional education, money and effort American corporations cannot exceed the results of a few simple coffee growers. Let me describe the irony in a civil manner.
I will use the first person for illustrative purposes. Fact: I am coffee drinker, and for personal consumer satisfaction, I am willing to pay up to $600 for a pound of coffee that was extracted from the feces of a cat. OK, so the growers claim it is washed, but what is the cleanliness standard of a person who crumples dry cat droppings for a living? If I buy it ground, how am I to know how well it was washed? Could there be a case for labeling the product as completely organic? Then, the growers claim it is delicately roasted so as to not disturb the delicate flavors. Again, the root question, why do I believe somebody who grabs beans from a litter box and claims they’re tasty? For all that I the consumer know, that roasting could simply be to eliminate surface moisture. The addition of preserving that delicate bouquet could easily be nothing more than a tag line. It certainly beats, “We give it a few minutes in a clothes dryer with some wood shavings so our packers don’t complain about the litter box smell.” And yet with the facts clearly and audaciously stated, year in and year out, the entire crop is sold with production restricted only by the appetite of the native civet.
So, when you’re working eighteen hours a day, struggling to deliver that critical, next generation product, ask one question. Is it the need for perfection that drives product acceptance or is it something else? Processing and selling litter box clumps for $600 per pound seems to indicate that success is possible outside the perceptual box of perfection. Sometimes the ‘best’ is not what you think it is, and sometimes it certainly doesn’t sound perfect, but that is to your ears and way of thinking. In the end, the best of anything is what others believe. It is through their perception and needs that a product is accepted as superior and even coveted. Sometimes it is just to show that they are capable of drinking anything.
Greg Chenevert


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