Empowering Coffee Shops: The Odeko Journey to Streamlined Supply Chains
Company profile
Company business details
Motivation to build the product
The founders were motivated by the challenges faced by small coffee shops in competing against larger chains. They recognized the inefficiencies in the supply chain and the need for a solution that would allow these businesses to operate more effectively and efficiently.Problem that their product solves
Odeko addresses the inefficiencies in the supply chain for small coffee shops, who are the end users of their product. By providing a seamless solution for inventory management and logistics, Odeko helps these businesses save costs and improve reliability, which is crucial for their survival in a competitive market dominated by larger franchises.Their unfair advantage
Odeko's unfair advantage lies in its vertically integrated solution that reduces the number of middlemen, allowing small businesses to operate with the same efficiency as larger chains like Starbucks.Strategies
Pre-Launch (Product Development & MVP)
Customer-Centric Product Development
Initially, Odo started as a predictive AI tool for coffee shops, but after realizing that customers needed more than just data analytics, Dane pivoted the business model to become a distributor of physical supplies. This shift was driven by direct feedback from customers who expressed their frustrations with supply chain issues. By leveraging technology to streamline the distribution process, Odo was able to provide a more comprehensive solution that met the actual needs of coffee shops, demonstrating the importance of being responsive to customer demands.
Customer Council Creation
Dane shared his strategy of creating a council of early customers to gather feedback and insights during the product development phase. He would go above and beyond to support these initial customers, even if it meant providing services that were not scalable or profitable. This approach allowed him to gain invaluable insights into what worked and what didn't, helping to refine the product before a wider launch. For example, he mentioned working closely with Joe Coffee and Birch Coffee to understand their needs and improve the service.
Innovative Marketing through Sponsorships
In the early stages of Odeko, Dane Atkinson capitalized on the emerging podcasting trend by sponsoring popular podcasters like Leo Laporte and Kevin Rose. This innovative marketing strategy allowed Odeko to reach a wider audience and create brand awareness among potential customers. Additionally, they engaged in fun promotional activities, such as giving away an iPhone a day on Twitter, which generated buzz and excitement around the brand. This creative approach to marketing helped Odeko stand out in a crowded market.
Launch Stage
Tangible Cost Savings
Dane Atkinson emphasized the importance of providing tangible cost savings to small businesses. He noted that small businesses are more likely to pay for services that intersect with their existing expenditures, as it feels like savings to them. For instance, if Odo can save a coffee shop on the price of a bottle of oil or reduce their marketing spend, it becomes a calculation they can easily understand. This strategy was crucial in convincing small businesses to adopt Odo's services, as it directly addressed their financial concerns and made the value proposition clear.
Community Engagement through Social Responsibility
Dane implemented a strategy of community engagement by providing coffee shops with the opportunity to contribute to local causes. For instance, during the COVID-19 pandemic, Odo facilitated the delivery of coffee to hospitals, allowing consumers to support their local coffee shops while also giving back to healthcare workers. This initiative not only helped maintain customer loyalty but also positioned Odo as a socially responsible company, enhancing its brand image.
Learn more about Odeko
Embracing the Entrepreneurial Spirit - Dane Atkinson - Not Another CEO Podcast - Episode #18
An SMB Masterclass: Zero to $150M Revenue in Two Years with Dane Atkinson, Founder and CEO of Odeko
#10 - Dane @ Odeko: Fundraising Lessons, Invisible Software, and Coffee
