Business Model Canvas PDF

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BUSINESS MODEL CANVASBPME 3073ENTREPRENEURSHIPBOOKWORM CAFÉNAME MATRICNOONG WAN JIN 261822NURUL FIKRAH BINTI OTHMAN 262056NUR SYAMIMI SYAHIRAH BINTI AHMAD SHUKRI 262120SHAZA NABILAH BINTI BADRUL KAMAL 262185HEAH SIAN WEI 263638SECOND SEMESTER SESSION 2019/TABLE OF CONTENT i. Executive Summary ii. In...

Description

BUSINESS MODEL CANVAS BPME 3073 ENTREPRENEURSHIP BOOKWORM CAFÉ MATRIC NO

NAME ONG WAN JIN

261822

NURUL FIKRAH BINTI OTHMAN

262056

NUR SYAMIMI SYAHIRAH BINTI AHMAD SHUKRI

262120

SHAZA NABILAH BINTI BADRUL KAMAL

262185

HEAH SIAN WEI

263638

SECOND SEMESTER SESSION 2019/2020

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TABLE OF CONTENT i.

Executive Summary

4

ii.

Introduction

5

iii.

Customer Segments

7

iv.

Value Propositions

8

v.

Customer Relationships

8

vi.

Channels

9

vii.

Revenue Streams

10

viii.

Key Resources

11

ix.

Key Activities

11

x.

Key Partners

12

xi.

Cost Structure

14

xii.

Conclusion

14

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I.

EXECUTIVE SUMMARY This report has been dedicated to discuss business model canvas (BMC) of Bookworm Café, a cafe that can be a facility that contributes to creating a study area with surplus energy. The company is creating value proposition through providing a variety of best services and handling customers’ needs and complaints. We believe a good hospitality given to customers gives satisfaction to customers and they are not hesitant to come again and bring more friends. Customer segments, Bookworm cafe have a target customer of children, teenagers and adults. We focused on all various ages because we want all people can enjoy our food especially those with families. They can bring their children since we offer kid’s meal too. Channels used are reality shop, online stores and retail stores. Customer relationship are able to build and maintains good relationships with customers through different channels which started with get, keep and grow customer. We want to engage with our customer because they are the real supporters for a business. Revenue stream is received through two streams which is transaction-based revenue and also recurring revenue. The transaction-based revenue is the immediate cash we get from customers when they buy foods, and also the delivery charge they pay for online ordering. The key resource are the company’s employees. Besides that, the key activities Bookworm Café is sales, renting book, online selling and event celebration. Key partners are we cooperate with many raw material suppliers, packaging provider, shipping company, advertising agency and food blogger. Without suppliers, we would not be able to run our business activities smoothly and efficiently. Our suppliers are all chosen based on their product and performance quality. Cost structures include the rental fees, maintenance fees and R&D cost and marketing costs.

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II.

INTRODUCTION The Business Model Canvas (BMC) segmented logic, provides data and another evidence that demonstrates how the company creates and delivers value to customers. The BMC outlines the construct of revenues, costs and current profits related to the value of the company. Teece (2010) describes that a good BMC yields screened of compelling value propositions to an activity. The achievement of advantageous cost and risk structures have the significant value of the business generating and delivering of services or products. BMC also filled up necessary the innovation of technology and to create the need to bring advances to the market, and the opportunity to satisfy distinct customer needs (Teece, 2010). Nowadays, the business model reveals how the business works and what the nature of business value that must have the customer and how communicated and transferred to the customers. The elements of the BMC to create sustained enhanced from company earning, cash flow and activities revenues. Thus, the library cafe enables to implement the appropriate business model to attract customers visiting the cafe. Therefore, BMC is strategic management tool. It is composed of nine building blocks. The reason we have chosen business model canvas because it helps organizations to conduct structured and strategic conversations around new business or existing ones. Our group has decided to choose Bookworm Cafe. Bookworm Café is an incorporated space surplus that can tempt people to stay a little longer, encourage spontaneous visits and it can be an open invitation to make use of the library’s other functions. This library cafe not only focus on students, but it as an open cafe which allows all ages to visits. Some people may have a need to change from a quieter zone at the library, where they have spent some time, in order to recharge their batteries with a western food, bakery products and new experience. Thus, the cafe easily to accessible and at the same time relatively shielded so that it does not disturb students. 5

Moreover, Bookworm Cafe serve the library’s visitor the opportunity to work for short or longer time with their laptops, read books or newspaper and take time to enjoy a slice of cake or a piece of bread, close to other people and visual and auditory impressions. This cafe located in Cyberjaya which is a city of public focus. The aim of choosing this area location in Cyberjaya is because the city has many educational institutions. In this way, it also attracts people of all ages to visits the Bookworm cafe that provide the facilities like free wi-fi, playground for kids, healthy dishes such as low sugar bakery and western foods, discount entry for students, renting book and open 24 hours. Therefore, in the near future Bookworm library cafe will extend to all over the world because the aim is to serve people with healthy dishes and contribute to prolonging and sweetening students’ stay at the library. In short, there is a lot of companies that are providing facilities but Bookworm library cafe will be providing extra facility that invites the people to stay a little longer with healthy dishes and comfortable environment.

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III.

CUSTOMER SEGMENTS In the business model canvas, customers are the key components and comprise the core of a business model. Customer segmentation assists in serving the segment better by identify the particular needs of each segment and groups individuals with similar characteristics together in order to serve the best fit service or product to the customers. A customer segment may also be segmented through demographics factors such as age, ethnicity, profession, gender, marital status, education, income etc. Our business - Bookworm Café is a café with library concept and we sell cake, bread, dessert, kid meals and western foods to our customers. We choose demographic customer segmentation as our customers segment due to it is effective and useful in many ways. Our customer segments include children, teenagers and adults.

Customer Segments Children

-We target children as our customer due to children like sweet foods. -We serve children with cartoon style cake, colourful dessert and kid meals. -We also set one small playground to attract more family bring along with

Teenagers

their children. -We target teenagers as our customer due to them likely to hang out with their friends in café to taste desserts and have gathering. -We serve teenagers with western food, specialty drink and dessert such as waffle, layer cake and pie. -In our café, there is also small library for teenagers, students to borrow

Adults

book and have a privacy corner to read and rest. -Adults likely to take a rest after work and have a small break and we serve adults with less sugar breads, cakes, and coffee to brighten their days. 7

Customer segmentation is important due to it allows our business-Bookworm Café to precisely reach customer with specific needs and wants that helps in build good customer experiences moreover increase customer retentions. Following, this will bring advantages to Bookworm Café because we are capable to use the resources more effectively and make better strategic marketing decisions.

IV.

VALUE PROPOSITIONS

The main value propositions of our café include: 

Design/ Newness



Performance



Price



Ability to customize

4.1 Value delivered to customer: 

Improved services: Increase worker and give training to the employees so that can provide better services to the customers



Design: The designing of our café is different from other café which are more prefer to children, teenagers and also old folks. Example our café has a part that will be use as a library.



Price: The customers can get their needs in cheaper price compare to the other café.



Ability to customize: We provide playground, library, place to eat and a corner for customer to rest.

4.2 Solution to Customers Problems: By providing a variety of services through launching of new program for each service have helped to meet the growing and unsatisfied needs for customers. Example the customer can read the book while eating their lunch in our café. For those customers who bring their child together, they can bring their child to playground section and they go library themselves.

4.3 Bundles of services offered to each Customer Segment 

Playground are offered to children. 8



For students, college students or who need to study, library are offered.



For who want to relax and eat, the menu with western and dessert are provided.

V.

CUSTOMER RELATIONSHIPS Customer relationships define the type of relationship a company establishes with its target customer segments which can be built through different channel. Our café - Bookworm Café performs a number of activities which started with get, keep and grow customers in order to maintaining good relationship with our customers.

1.) Get Customers Social

Media -We do promotion and advertising through media platform such as

Marketing

Facebook, Whatsapp, Youtube and Instagram to raise people awareness of our brand. -Instagram is an awesome platform to share beautiful picture of our product like cakes, desserts and the interior design of our café.

Offer

-We sell our product online in order to reach more potential buyer. free -Offer free samples to the customers to get a taste before buying that can

sample

introduce people our café’s bakery product further spread word of mouth.

2.) Keep Customers Social

Media -Let customer to write reviews and give rating on the service and

Interaction

bakery products for further product customization after getting

customers’ feedbacks. Good employee’s -Train the employees to be nice to the customer and be patient to solve attitude Free Wi-Fi

customers’ problem. -Customer can use Wi-Fi service to search for information and catch

Be consistent

up on work together while enjoying with the bakery products. -Be consistent in providing good quality service and quality product.

3.) Grow Customers Loyalty program

- Give coupons to customers for the next purchase after them spending exceed RM50 in the café. - Offer a discount card for loyalty customer and serve free meal during their birthday.

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VI.

CHANNELS

We will provide our services through the reality shop, online stores and retail stores. The distribution channel will perform some key activities for the company including: 

Renting book to customer



Providing food



Sharing the pictures about our café

VII.

REVENUE STREAMS Revenue streams is how your company is going to generate money from the

sales of goods or services. There are two major types of revenue which is operating revenues and non-operating revenues. Operating revenue is the revenue earned from the business’s major activities. Sales of goods and services is the example of operating revenue. Non-operating revenues is the income generated from business side’s activities such as interest revenue and dividend revenue. There are four types of revenue streams which is transaction-based revenue, service revenue, project revenue and recurring revenue. For Bookworm Café, we have a transaction-based revenue and also recurring revenue which are from advertising fees. Transaction-based revenue is earned when there is selling and buying products from customer, and we received payment from them at the same time when transaction occurs. This is the common revenue streams especially for company that runs a product-based business. This revenue is the easiest way to receive cash daily. Besides that, customers who wish to have their ordered being delivered, there will be another delivery charge for them to pay. Secondly, Bookworm Café has a revenue streams from recurring revenue which is lending fee. Customers who are interested to borrow a book from our café need to pay a specific amount for a week period. For example, they need to pay RM1.00 for each book per week that they wish to borrow. In case they wanted to extend the lending period, they can make additional borrowing fee. We also earned advertising fee from website traffic and ads. 1) Transaction-based revenue i) Customers buy our various choices of food and drinks and pay the amount at the counter. ii) Staff receive cash from customers. 10

iii) Total sales of the day are counted before closing and recorded.

2) Recurring revenue (lending fee) i) Our customer can borrow book from our café since our café is has a library concept and various genre of books are to be chosen. ii) Each book that are borrowed cost RM1.00 each for a period of one week. iii) Extension of borrowing period can be done by paying additional borrowing cost.

3) Recurring revenue (advertising fee) i) Marketing team set up a blog or website for customers to look about our café and menu provided. ii) Creating ads when people click the website to see the traffic of the website. By clicking the ads, advertising revenue is earned

VIII. KEY RESOURCES Key resources are the most important assets required to make a business model work. The key resources are the company’s employees and its shop on a location. Our café - Bookworm Café, we will use human resources, such as a very good chef but also some of our group member can be the chef so then we wouldn’t contract so many employers. Besides that, some of our employees will be the rider to deliver our product which has ordered online. We will create our own webpage so that people can enter and see our product and order it online. As our physical resources, we will buy some raw material such as ingredient needed to produce our foods and drinks. We will also buy some boxes to make it as our product’s packaging. Our quality will be higher than the average, and also the price we will make it good, so everyone could afford it.

IX.

KEY ACTIVITIES The Key Activities represent the important actions a company need to do to make its business model work. Key activities are the key things the company need to 11

perform in order to deliver the value propositions to the company and customers. The key activities which Bookworm Café perform are sales, renting book to customer, online selling and event celebration.

Key Activities: Sales

- The products sold in our café include different type cakes, bread desserts, beverages, western meals and kid meals.

Renting book to - There is a small library in our café and provide variety of books. customers

- Our café also provides reading and privacy corner for customer to read together eating with the meals. - We also offer discount to student for renting the books by showing their student card to the relevant staff.

Online Selling

- We also selling our product through online by taking the orders through social media. - Provide service delivery of products to consumers on time.

Event

- Our Café also offer service of event celebration such as birthday

celebration

celebration.

X.

KEY PARTNERS Key partners are the relationships that one business have with other related parties that can help business to run more smoothly and successful. A key partner may be other business, government, supplier, business partners and many more. Bookworm Café’s has few key partners in making sure our business run efficiently.

1) Raw material supplier i) Our main key partner is our raw material supplier. As a café that sells cakes, western foods, drinks and kids’ food, we need a lot of stocks to prepare the foods. 12

ii) We choose a few suppliers which has the best performance and product quality to ensure our finished goods are delicious. iii) First supplier is for our beverages. They supply stocks which is coffee powder, tea powder, whipped cream, caramel syrup, strawberry syrup, chocolate syrup, various flavour of ice blended powder, Oreo crumbs for topping, creamer and pearl. iv) Second supplier is for our cakes and desserts. They supply flour, whipping cream, fruits, cheese and cake flavour. v) Our third supplier supply prawns, squids, fish ball, fish cake and other things that are used to make pasta and spaghetti.

2) Packaging provider i) They are responsible to supply for food packaging such as food case, boxes, drinks’ cup, straw, spoon and fork. ii) They are one of our important suppliers because without them, we cannot pack the food for our customers. iii) We choose them because they had the best food packaging quality. It is durable and not easily broken.

3) Shipping company i) Food delivery company are also our key partners. This is because some of our customers prefer to wait their food being delivered to their doorstep. ii) We collaborate with FoodPanda and GrabFood Delivery to deliver our customer’s order.

4) Advertising agency i) This agency is important to help us promote our café because they has a lot of strategies to help clients’ need. ii) They gather our information on what kind of campaign we want to advertise our café and they help making the ads in various social media platforms such as Youtube, Facebook and Instagram.

5) Food blogger i) Food enthusiast such as blogger can help to review our Bookworm Café. 13

ii) Some customers will make a research about a restaurant or café that has the best food and services. iii) An honest review helps customers to make better choice before buying any product or services. iv) Hence, we will make sure our food and services are the best so that the blogger is satisfied and compliments our café in their blog, which eventually attracts more potential customers. XI.

COST STRUCTURE

Primary costs for our café include the rental fee, maintenance fees and R&D costs and marketing costs. XII.

CONCLUSION

Bookworm cafe is a style in which cafe is served to meet the customer’s expectations. The primary expectation of any cafe customer is to enjoy the service and dishes but the comfort they get when they are enjoying a slice of cake and pasta dishes really matter. Conclusion of business model that has been running in library cafe based on BMC as follows: i.

Customer segments

The library cafe has customer segments from children, teenagers, and ad...