TOHU Wines: Product Innovation Assessment and Market Analysis for Maori Wine Manufacturing Company

AUCKLAND INTERNATIONAL CAMPUS
AM807001: ENTREPRENEURSHIP AND
INNOVATION
ASSESSMENT 1: REPORT
LECTURERS: MARCIA JOHNSSON AND DR.
EDWIN RAJAH
STUDENT NAME
STUDENT ID
WORD COUNT: 2000
DATE OF SUBMISSION
Table of Contents

1 Introduction............................................................................................................................3
2 Company Profile.....................................................................................................................3
3 Product Innovation – LEAN Canvas....................................................................................3
3.1 Problem............................................................................................................................3
3.2 Solution............................................................................................................................3
3.3 Unique Value Proposition..............................................................................................4
3.4 Unfair Advantage............................................................................................................4
3.5 Channels...........................................................................................................................4
3.6 Customer Segments.........................................................................................................4
3.7 Key Metrics......................................................................................................................4
3.8 Cost Structure.................................................................................................................5
3.9 Revenue Streams.............................................................................................................5
4 Market Segmentation and Brand Positioning.....................................................................6
5 Business Risk Analysis...........................................................................................................6
5.1 Target Segment Risk.......................................................................................................7
5.2 Sales Risk.........................................................................................................................7
5.3 Customer Satisfaction.....................................................................................................7
5.4 Revenue Potential............................................................................................................7
6 Impact of Maori Culture.......................................................................................................7
7 Product Recommendations....................................................................................................7
8 Conclusion...............................................................................................................................8
9 References...............................................................................................................................8

1 Introduction
This report performs an assessment of a Maori wine manufacturing company, TOHU Wines,
which is headquartered in New Zealand, in terms of product innovation. It uses/applies the
LEAN Canvas to determine a suitable innovation that they could develop in the market to
strengthen their position against the competition and gain more market share. It applies the
canvas’ elements, analyzes the market, considers the various risks involved (through business
risk analysis), details on its segmentation target and positioning, and finally, explains how the
Maori values of care and nurturing could impact the innovation of the product.
2 Company Profile
TOHU Wines is a Maori based company that originated in the New Zealand. It is a family – run
business that was founded in 1998 and started producing wines from the premier grape vineyards
of the country. Therefore, TOHU Wines is known to be a premium producer of wines in both
New Zealand as well as in the international markets. Though it has managed to establish a
foothold on the market, it still stays to the true to the Maori traditions and the aim of the
company is to ensure that the culture and traditions are continued; the Maori share a desire to
feed and take care of people; TOHU wines therefore continues to maintain the Maori tradition
while serving quality products like various kinds of wines which are divided across ranges like
the TOHU range, Kaumatua range, Rewa range, and so on. In short, if TOHU wines were to
innovate a new product, which is kiwi fruit wine, it would both serve as a healthier alternative to
traditional forms of alcohol since it would be prepared only with organic ingredients and the
packaging too would be done such that it’s environmentally friendly (TOHU Wines, 2018).
3 Product Innovation – LEAN Canvas
The innovation in this case would be the wines that would be produced by TOHU Wines and are
made with the help of Kiwi fruits. In other words, it would be a fruit wine instead of the usual
alcoholic beverages; since the fruit wine is unique or new due to its flavor which
3.1 Problem
The problem in this case is that most people rely on hard liquor or traditional alcohol, which is
bad for their health. Yet, they have no choice, but to continue due to the addiction that non-fruit
wines can cause them (and pure alcohol has the chance to be more harmful); if there were
enough substitutes available in the market, then those individuals could switch from wine to
those, but there aren’t enough (Ko, et al., 2008).
3.2 Solution
To solve the problem, the solution here for TOHU Wines would be to come up with a kiwi fruit
wine that is not only healthier than other, harder forms of alcohol, but also would ensure that the
people who drink it get all the benefits of eating kiwi fruits. So, the overall product becomes
healthier for them.