23:24 13/3/25 Asm 1b mkt2003 1 - Assignment 1b of mk20031

Student name: Tran Minh Quan

Student ID: 103845181
Class: MKT20031-Marketing and Innovation
Spring 2023 semester
Date of submission: June 4th, 2023

MKT20031-Marketing and Innovation

Assignment 1B: Business Model Canvas

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1. INTRODUCTION
Today's competitive market makes product launches tough. "People don't buy new
products; they buy upgraded versions of themselves," says consumer behavior. It
stresses customer needs and creating innovative solutions. This is increasingly critical
when new products fail more often. Research reveals 75%–90% of new products fail
within a year. Why did these mistakes happen? New goods are typically "solutions
looking for a problem to solve." They don't solve customer problems. Disconnecting
from customer expectations may cause market failure. Research and promote
effective concepts by exploring new trends and customer categories with strong
demand and development potential. To analyze and support my job, I will utilize the
"solo travel" trend and "look at me" section. Solo travel, particularly for self-
discovery, adventure, and personal growth, is expanding. Effective products and
services need understanding this "look at me" segment's motivations, interests, and
preferences. The "look at me" solitary travel trend may disclose their intentions.
Understanding their needs may spark creative solutions. Customized products may
improve product and market performance.

2. BUSINESS MODEL CANVAS

The business will target the niche market as its primary customer base. Customers
will mostly include young professionals (ages 20-35) who are travelling alone. This is
the youthful generation that is seeking out solitary travel yet doesn't really want to be
alone. This market typically has a monthly income of $800 to $1,000.

What separates one product from another is its value proposition, which often
highlights the advantages the product offers over its rivals (Luenendonk, 2015).
Consumers are the primary beneficiaries of an upgraded product idea (Expert
Program Management, 2018). Travelling without worrying too much about money,
security, and having a good time is the primary advantage to the customer in regard to
the value offer. The tour package plan that caters to the consumer's requirements in

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terms of ease and accessibility is the real product of the main benefit. What makes an
item "augmented" are the features and services added to it (Expert Program
Management, 2018). The firm caters only to women, and those who like to go single
have the option of sharing a room with another passenger in order to save
expenditures.

Attributes that are seen as providing basically the same advantages and goods as
competitors are when parity is reached. The points of parity represent the standard trip
package that the majority of travel agents would provide. Cost savings, flexibility in
selecting a package, and the opportunity to share lodgings with other tourists would
be the differentiating factors.

3. ELABORATION OF THE BMC

3.1. Elaboration on how elements of your BMC have

been designed to avoid Gap 1
Gap 1 is referred to as the knowledge gap, and it may be
characterised as a difference in opinion between what
management believes and what the consumers think. The
management team will benefit from having a better
understanding of what the expectations of the customers are
thanks to this service. The customer segment building block is
helpful for acquiring information from sources such as

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customer complaints, surveys, and focus groups. Since

management needs to understand about its customers, the
customer segment building block was created. Because of the
installation of personalised service and computerised
reservation systems, both management and staff will have the
ability to communicate with clients over the phone or through
live chat. Because of this, we would have a greater
understanding of what it is that our clients want from the
services that we provide, which would prevent us from falling
short of the standards they have set for us.

3.2. Elaboration on how elements of your BMC have

been designed to avoid Gap 2
Gap 2 refers to the policy gap. When there is a discrepancy
between what management believes customers want and how
those demands are translated into measures of service
excellence, a policy chasm will develop. This disconnect is
referred to as the policy chasm. This gulf arises as a result of a
variety of issues, including a lack of customer service
standards, the absence of employees schooled in the client's
goals and objectives, and a general reluctance to put the
customer's viewpoint first in general. In order to avoid the
chasm, management should focus their attention on the
aspects that are value-driven. When users have finished using
one of our services, they are given the opportunity to answer
to an online survey in order to offer us with frank feedback.

3.3. Elaboration on how elements of your BMC have

been designed to avoid Gap 3
Gap 3 refers to the delivery gap. The "delivery gap" is the
space that exists between the planned criteria for delivering a
service and the actual application of those rules. When the
supply does not meet the demand, when an employee does
not completely grasp the product, when HR guidelines are
insufficient, or when workers are not working together
cohesively, this gap may occur. The components that make up
the key resources building block would be able to help bridge
this gap by enabling human resources management to update
its regulations and send certain workers on training courses to
better equip them to carry out their responsibilities and
conform to the organization's service delivery plan. This would
help the gap be closed. In addition to establishing each staff
member's roles, managers will need to give training in
interpersonal skills for their workers. This will ensure that
employees are able to interact successfully with customers,
even when they are under stress.

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3.4. Elaboration on how elements of your BMC have

been designed to avoid Gap 4
Gap 4 refers to the communication gap. The gap in
communication arises when the words that a corporation uses
to communicate with its customers do not match up with the
experiences that those customers really have. This disparity is
due to both overpromising and a breakdown in communication
between the teams responsible for running the business and
the advertising department. We need to maintain open lines
of communication with our most critical business partners if
we are going to close this gap and make sure that our
customers are getting good value for the money they spend. It
is necessary to take measures to improve management and
the appropriate amount of marketing in order to avoid
overpromising services to customers and to ensure that
customers get value for the money they spend.

4. CONCLUSION
In conclusion, the elaboration of the business model canvas
highlights how each element has been carefully designed to avoid
the four gaps that often lead to market failures. The customer
segment building block aids in gathering customer expectations,
ensuring that management understands and meets their needs
(Gap 1). To avoid Gap 2, the policy gap, the company focuses on
value-driven policies and actively seeks customer feedback to align
service excellence with customer demands. The delivery gap (Gap
3) is addressed by investing in key resources and training
employees to deliver services efficiently and effectively. Finally, to
bridge Gap 4, the communication gap, the business prioritizes open
communication with partners and avoids overpromising services to
ensure customers receive the value they expect. The proposed
business model demonstrates a strong understanding of customer
needs and aspirations, making it well-positioned to address the
challenges of the market and create successful products and
services. Thus, this business has the potential to achieve significant
market performance and meet the demands of its target customers
effectively.

5. REFERENCES
Expert Program Management 2018, ‘Three Product Levels (Kotler)’, Expert Program
Management, EPM, viewed <https://expertprogrammanagement.com/2018/04/three-
product-levels-kotler/>.

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Luenendonk, M 2015, ‘Business model canvas: Creating a Value Proposition |

Cleverism’, Cleverism, decoadmin, viewed <https://www.cleverism.com/business-
model-canvas-creating-value-proposition/>.

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