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Group 2 Business Model Canvas

The document outlines a business model canvas for a 5-star supermarket, detailing its value proposition, customer segments, distribution channels, and revenue streams. Key features include premium quality products, exceptional customer service, and sustainability initiatives aimed at affluent shoppers, health-conscious consumers, and local communities. The financial projections estimate a break-even point in the first five years with a gradual revenue increase, targeting a net income of 30% for expansion.

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0% found this document useful (0 votes)
25 views48 pages

Group 2 Business Model Canvas

The document outlines a business model canvas for a 5-star supermarket, detailing its value proposition, customer segments, distribution channels, and revenue streams. Key features include premium quality products, exceptional customer service, and sustainability initiatives aimed at affluent shoppers, health-conscious consumers, and local communities. The financial projections estimate a break-even point in the first five years with a gradual revenue increase, targeting a net income of 30% for expansion.

Uploaded by

canojanuarymae
Copyright
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We take content rights seriously. If you suspect this is your content, claim it here.
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GROUP 2

• Irene Tordillo
• Jasmin Garlet
• Henry Navarro
• Harriet Quimpan
• Gen Ampe
BUSINESS
MODEL CANVAS
How do you
Who will help How do you do 5
Interact?
you? it?
STAR SUPERMARKET

Who do you
What do you Friendly
Employees Help?
 Supplier and 
do?  Attend to
Advertising
Distributors  Promos Customer’s  Class A, B, C
 Logistics and  • Premium Quality Concern
Raffles Products  Customer
Transportation Good Grooming
 Marketing and • Exceptional   Retailer
Companies Sufficient
 Technology
Promotions Customer Services Cashier and  Affluent
• Convenience and Shoppers
Providers Bagger
Accessibility 
 Marketing and • Luxurious Shopping
 Community Health-
Advertising Environment Building Conscious
Agencies • Health and Wellness  Sustainability Consumer
 Financial Partners What do you Focus and Ethics  Professionals
 Real Estate • Community and Busy
Partners
need Engagement How do you reach
• Sustainability
Individuals
 Regulatory them? 
 Real Estate Initiatives  Tourist and
Bodies and Local Tie up with Big
Property • Exclusive Businessess Visitors
Authorities
 Investment/ Membership 
 Waste Marketing
Benefits
Management and Financial Channels
Sustainability Resources  Home Delivery
Partners  Merchandise Service
 Human  Manpower/  Click-and-Collect
Resources and Human
Staffing Agencies Resources
 Maintenance and
What will it Cost?
Securities
How much will you make?
Services
 Consultants and
• Advisors
15 million forreal estate Expenses o At least even for the first five years
• 10 million for initial merchandise o Gradual increases of 1% in revenue for the
purchased succeeding years
o Achieve a goal of 30% net income to expand the
• 1 million for miscellaneous expenses
business
o Estimating the Revenue
WHAT DO YOU DO?
• 5-star supermarket, the Value Proposition is a critical component
that outlines the unique benefits and value that the supermarket
offers to its customers.
• The Value Proposition should clearly communicate why
customers would choose the 5-star supermarket over
competitors, emphasizing the unique advantages and superior
experience it offers.
VALUE PROPOSITION
• -Offer
high-quality, fresh, and organic
1. Premium products.
Quality • - Stock exclusive, gourmet, and specialty
items that are not commonly available in
Products other supermarkets.

2. Exceptional • - Provide personalized shopping assistance


and customer service.
Customer • Ensure a seamless and enjoyable shopping
Service experience with well-trained, friendly staff.

• Offer extended shopping hours, including


3. late-night and early-morning services.
Convenience • Provide various convenient shopping options
such as online ordering, home delivery, and
and curbside pickup.
Accessibility
• Create a clean, aesthetically
4. Luxurious pleasing, and comfortable shopping
environment.
Shopping • Maintain a well-organized store
Environment layout that makes it easy to find
products.

5. • Implement advanced technology for easy


and fast checkout processes, such as self-
Innovative checkout kiosks and mobile payment
options.
Technology • Offer a loyalty program with personalized
and Services rewards and discounts.

• Provide a wide range of health and wellness


6.Health and products, including organic, gluten-free,
vegan, and non-GMO options.
Wellness • Offer in-store nutritionists or dietitian
Focus services for personalized health advice.
• Engage with the local community through
7. Community events, sponsorships, and partnerships.
• Support local producers and suppliers by stocking
Engagement: locally-sourced products.

• Implement eco-friendly practices such as


8. reducing plastic usage, promoting reusable bags,
Sustainability and offering sustainable product choices.
• Ensure transparent sourcing and fair trade
Initiatives: practices.

9. Exclusive • Provide a membership program that offers


Membership exclusive deals, early access to sales, and
special events for members.
Benefit
• Offer in-store cooking classes, tastings, and
10. Culinary food demonstrations by expert chefs.
• - Provide a variety of ready-to-eat gourmet
Experiences: meals and an upscale deli section.
HOW DO YOU
INTERACT?
CUSTOMER RELATIONSHIP

• Friendly employees
• Attend to customers’ concerns
• Good grooming
• Sufficient casher and bagger
• Personal Shoppers: Offer personal shopping services
where customers can have a dedicated staff member assist
1. them in finding products, making recommendations, and even
Personalized managing their shopping list.
• Loyalty Programs: Develop a tiered loyalty program that
Service rewards frequent shoppers with points that can be redeemed
for discounts, special offers, or exclusive products.
• 24/7 Helpline: Provide a round-the-clock customer
service hotline for inquiries, complaints, and
2. Customer assistance.
• Live Chat Support: Implement live chat functionality
Support on the supermarket’s website and app for immediate
customer assistance.
• Events and Workshops: Host cooking classes,
3. nutrition workshops, and tasting events to engage
customers and build a sense of community.
Community • Online Community: Create an online forum or social
Building: media groups where customers can share recipes,
tips, and experiences.
• Surveys and Feedback Forms: Regularly solicit feedback
through surveys and feedback forms to understand
4. Feedback customer needs and improve service.
• Customer Advisory Board: Establish a customer advisory
Mechanisms board that meets periodically to discuss ideas and
concerns.
• - Ambiance and Cleanliness: Ensure the store
environment is always clean, well-organized, and
5. High-Quality pleasant to shop in.
• - Exclusive Products: Offer exclusive, high-quality
Experience: products that are not available in other
supermarkets.
• - Mobile App: Develop a comprehensive mobile app
that allows customers to order groceries online, track
their loyalty points, receive personalized offers, and
6. Digital access shopping lists.
Engagement: • - Email and SMS Marketing: Send personalized
emails and SMS messages with special offers, new
product announcements, and store updates.
• - Home Delivery and Pickup: Offer convenient
home delivery and curbside pickup options to cater
7. to busy customers.
Convenience • - Self-Checkout and Mobile Payments:
Services: Implement self-checkout kiosks and mobile
payment options to speed up the checkout process.

• Green Initiatives: Engage customers with sustainable


8. practices like reducing plastic usage, offering recyclable
packaging, and promoting eco-friendly products.
Sustainability • - Ethical Sourcing: Ensure transparency in sourcing and
and Ethics: offer fair-trade, organic, and locally-sourced products,
appealing to ethically-conscious customers.
HOW DO YOU
HELP?
CUSTOMER SEGMENT

• Class A, B, C customer
• Consumer and Retailer
HERE ARE THE KEY CUSTOMER SEGMENTS
• These customers have higher disposable incomes and are
1. Affluent looking for premium products, exclusive brands, and a
Shoppers: luxurious shopping experience. They value high-quality
goods and personalized services.
• This segment includes individuals who prioritize their
2. Health- health and well-being. They seek organic, gluten-free,
Conscious non-GMO, and other specialty health products. They are
willing to pay a premium for items that align with their
Consumers health goals.
• These customers have a passion for cooking and gourmet
3. Food
food. They are interested in specialty ingredients, exotic
Enthusiasts and foods, and gourmet products that are not typically found
Gourmets: in regular supermarkets.

• Families often shop in bulk and look for a variety of


products, including fresh produce, dairy, meat, and
4. Families: household essentials. They appreciate convenience,
quality, and value for money.

• This segment includes working professionals and busy


5. Professionals
individuals who value convenience and time-saving
and Busy solutions. They prefer pre-prepared meals, quick checkout
Individuals options, and online shopping with home delivery.
6. Eco- • This segment includes working professionals and busy
individuals who value convenience and time-saving
Conscious solutions. They prefer pre-prepared meals, quick checkout
options, and online shopping with home delivery.
Consumers:

• Serving the local community with a wide range of


7. Local products, including locally sourced goods, to build a loyal
customer base. This segment values supporting local
Community: businesses and products.

8. Tourists • Located in tourist-heavy areas, 5-star supermarkets can


attract visitors looking for high-quality, local products and
and Visitors a premium shopping experience.
HOW DO YOU
REACH THEM?
DISTRIBUTION
CHANNELS
• Tie up with big business
• Online and offline advertising
HERE ARE THE KEY DISTRIBUTION CHANNELS TO CONSIDER:

• Location: Strategically placed in affluent neighborhoods or


1. Physical Store high-traffic urban areas to attract target customers.

• E-commerce Platform: A user-friendly website where


customers can browse products, place orders, and arrange
2. Online Store deliveries.
• - Mobile App: An app offering similar functionalities as the
website but optimized for mobile use.
• - In-house Delivery Fleet: Ensuring reliable and timely
3. Home Delivery delivery services.
• - Third-party Logistics Partners: Collaborations with delivery
Service services like Grab or Foodpanda.

• Online Order, Store Pickup: Allow customers to


4. Click-and- order online and pick up their groceries at a
Collect convenient time.

• Concierge Shopping: Offering personal shoppers for


5. Personal busy or high-net-worth individuals who prefer a
Shopping Services personalized shopping experience.

6. Partnerships • Collaborations: Partnering with local restaurants,


with Local cafes, and other businesses for exclusive deals or
Businesses cross-promotions.
•-Grocery Subscription Boxes: Curated weekly or
7. Subscription monthly boxes with fresh produce, gourmet foods,
Services or themed assortments.

• - Temporary Locations: Setting up temporary shops or


booths at events, fairs, or markets to reach new
8. Pop-up Shops customers.
• - Events and Tastings: Hosting food tastings, cooking
and Events classes, and other in-store events to engage the
community.
• - Bulk Sales: Selling products in bulk to restaurants,
9. Wholesale hotels, and other businesses.
and Corporate • - Corporate Accounts: Offering special services or
discounts to corporate clients for employee benefits or
Accounts events.
• - Digital Marketing: Social media, email newsletters, and
10. Marketing online ads to drive traffic to both online and physical
stores.
and Advertising • - Traditional Marketing: Flyers, direct mail, and ads in
Channels local newspapers or magazines to reach a broader
audience.

• Rewards Programs: Offering points,


11. Loyalty discounts, or special offers to repeat
Programs customers to encourage loyalty.
• Integration of Channels
-To create a seamless experience, these channels
should be well-integrated. For instance, online orders
should sync with inventory in real-time, and customer
data should be unified across platforms to personalize
the shopping experience.
• Example Distribution Channel Strategy:
- Online to Offline (O2O): Customers can discover
products online and then experience them in person at
the store.
- Omni-channel Experience: Ensuring consistency
in pricing, promotions, and service across all channels.
HOW MUCH
WILL YOU MAKE?
REVENUE STREAMS

• At least break even for the first five years


• Gradual increase of 1% in revenue for the succeeding
years
• Achieve a goal of 30% net income to expand the
business
HERE ARE THE TYPICAL REVENUE STREAMS FOR 5 STAR
SUPERMARKET:

• - Grocery and Gourmet Foods: Premium pricing on a


variety of groceries, including fresh produce, meats,
seafood, dairy, bakery items, and gourmet foods.
• - Imported and Specialty Products: Higher-margin
1. Product items such as imported cheeses, wines, chocolates,
and other specialty products.
Sales: • - Prepared Foods and Meals: Ready-to-eat meals,
deli items, and bakery products, which can
command higher prices due to convenience and
quality.

• Selling high-quality private label products,


2. Private which often have higher margins compared to
Label Products: branded products.

• Offering exclusive membership programs that


3. Membership provide benefits such as discounts, special
Fees: promotions, and access to premium services.

• Revenue from additional in-store services


4. In-Store such as a café, juice bar, cooking classes, or a
Services: gourmet deli.
• An e-commerce platform where customers
5. Online Sales: can order groceries online for delivery or
pickup.

• - Revenue through loyalty programs that


6. Loyalty encourage repeat purchases and customer
Programs: retention.

7. Leasing Space • - Renting out space within the store to other


to businesses, such as a florist, pharmacy, or
Concessionaires: bank.

• - Income from brands and suppliers for in-


8. Advertising and store promotions, advertisements, and
Promotions: premium shelf placement
• Hosting events like wine tastings, cooking
9. Events and demonstrations, and sponsorships that
Sponsorships: attract customers and generate additional
revenue.
ESTIMATING REVENUE:
TO ESTIMATE THE REVENUE, CONSIDER THE FOLLOWING
FACTORS:

1. Average Transaction Value:


• - Calculate the average amount spent by a customer per visit.

2. Customer Footfall:
• - Estimate the number of customers visiting the supermarket daily,
weekly, and monthly

3. Online Sales Contribution:


• Project the percentage of revenue expected from online sales.

4. Private Label Contribution:


• Determine the proportion of sales from private label products.

5. Service Revenue:
• Estimate the revenue from in-store services and events.
• - Average transaction value: Php 1,000
• - Daily customer footfall: 1,000 customers
• - Monthly customer footfall: 30,000 customers
(1,000 customers x 30 days)
• - Percentage of revenue from online sales: 10%
• - Percentage of revenue
from private label products: 20%
• - Additional revenue from
in-store services, events, and memberships: Php 500,000 monthly
• Monthly Revenue Calculation:
• - Product Sales:
30,000 customers x Php 1,000 = Php 30,000,000
• - Online Sales:
10% of Php 30,000,000 = Php 3,000,000
• - Private Label Products:
20% of Php 30,000,000 = Php 6,000,000
• - In-Store Services, Events, and Memberships:
Php 500,000
• Total Monthly Revenue:
Php 30,000,000 (Product Sales)
+ Php 3,000,000 (Online Sales)
+ Php 6,000,000 (Private Label Products)
+ Php 500,000 (Other Services)
= Php 39,500,000
• Total Annual Revenue:
Php 39,500,000 x 12 months = Php 474,000,000
Notes:
• -Those figures are hypothetical and should be tailored
based on market research, location, target audience,
competition, and other specific factors.
• A detailed financial analysis considering operating
expenses, cost of goods sold, and other overheads is
essential to understand profitability.
HOW DO YOU DO IT?
KEY ACTIVITIES

• Advertising
• Promos
• Raffles
• - Stocking and Restocking: Regularly monitoring stock levels,
ordering new stock, and restocking shelves to ensure product
1. Inventory availability.
Management • - Supplier Coordination: Managing relationships with suppliers
to ensure timely delivery of high-quality products.

• - Customer Support: Providing excellent customer service,


including handling inquiries, complaints, and returns.
2. Customer • - Personalized Services: Offering services such as personal
Service shopping assistants, loyalty programs, and customized
promotions.

• - Advertising Campaigns: Creating and executing marketing


campaigns through various channels (social media, local
3. Marketing advertising, in-store promotions).
and Promotions • - Special Events: Hosting events, tastings, and
demonstrations to attract and engage customers.

• - Product Quality Checks: Ensuring all products meet high-


quality standards through regular inspections and quality
4. Quality control processes.
Control • - Hygiene and Safety: Maintaining high standards of
cleanliness and safety within the store.

• Logistics Coordination: Efficiently managing the flow


5. Supply Chain of goods from suppliers to the store.
Management • - Cold Chain Management: Ensuring the proper
handling and storage of perishable goods.
• - Efficient Checkout Process: Implementing fast and efficient
6. Sales and checkout processes, including multiple payment options.
Checkout • - Customer Relationship Management (CRM): Using CRM systems
Operations to manage customer interactions and data.

• - E-commerce Platform: Developing and maintaining an online


7. Technology shopping platform for customers who prefer to shop online.
and Innovation • - Self-Checkout Systems: Implementing self-checkout kiosks to
reduce wait times and improve customer experience.

• - Staff Training and Development: Training staff to provide


8. Human excellent customer service and operate efficiently.
Resources • - Employee Satisfaction: Ensuring a positive work environment to
Management maintain high employee morale and retention.

• Strategic Product Placement: Designing the store layout to


9. Store Layout optimize customer flow and product visibility.
and • - Visual Merchandising: Creating attractive displays to entice
Merchandising customers and promote products.

• Eco-friendly Practices: Implementing sustainable practices such


as reducing plastic use, recycling, and energy-efficient
10. Sustainability operations.
Practices • - Local Sourcing: Sourcing products locally to support the
community and reduce carbon footprint.
WHAT DO YOU
NEED?
KEY RESOURCES

• Real estate property


• Investment
• Merchandise
• Manpower
HERE ARE THE KEY RESOURCES FOR FIVE-STAR
SUPERMARKET:

• - Real Estate: Prime location with high foot traffic.


• - Store Infrastructure: High-quality store design, shelving,
1. Physical refrigeration, and storage systems.
• - Inventory: A wide range of high-quality and diverse
Resources: products, including fresh produce, gourmet items, and
international goods.

• - Brand Reputation: Strong brand identity and recognition


2. associated with quality and premium service.
• - Customer Data: Detailed customer insights and
Intellectua purchasing behavior data for personalized marketing and
l inventory planning.
• - Supplier Relationships: Reliable and high-quality
Resources: suppliers and partnerships with exclusive brands.

• - Staff: Skilled and well-trained employees, including


knowledgeable sales associates, customer service
representatives, and management.
• - Leadership Team: Experienced leadership with expertise
3.Human in retail management, supply chain logistics, and
Resources: marketing.
• - Specialists: Nutritionists, chefs, or food experts to
enhance the customer experience and offer expert
advice.
4. • - Capital: Sufficient funding to invest in
premium inventory, store design, and
Financial marketing efforts.
Resources • - Credit Facilities: Lines of credit to manage
cash flow and support day-to-day operations.
:
• - Logistics: Efficient logistics and supply chain
5. management systems to ensure fresh and
Additional timely delivery of goods.
• - Customer Service Systems: Robust
Resources customer service infrastructure to handle
: inquiries, complaints, and returns effectively.

These key resources ensure the supermarket can offer a


high-quality shopping experience, maintain inventory
levels, and provide exceptional customer service, which are
crucial for the success of a five-star supermarket.
WHO WILL
HELP YOU?
KEY PARTNERS

• Supplier
• Government Agencies
• Foundation
HERE ARE SOME TYPICAL KEY PARTNERS FOR HIGH-END SUPERMARKET:

• - Local Farmers and Producers: Providing fresh, locally


sourced produce and products.
1. Suppliers and • - National and International Suppliers: Offering a wide
Distributors: range of products, including specialty and gourmet items.
• - Beverage Distributors: Supplying a variety of beverages,
including alcoholic and non-alcoholic drinks.

2. Logistics and • - Ensuring efficient delivery and transportation of goods


Transportation from suppliers to the supermarket.
Companies:
• - Point of Sale (POS) Systems: For efficient checkout
processes.
• - Inventory Management Software: To keep track of stock
3. Technology levels and reorder products.
Providers: • - E-commerce Platforms: For online sales and delivery
services.
• - Customer Relationship Management (CRM) Systems: To
manage customer data and loyalty programs.

4. Marketing and • Promoting the supermarket’s brand,


Advertising Agencies: special offers, and events.
• Banks and Financial Institutions: Providing
5. Financial financing options and managing transactions.
Partners • - Payment Gateway Providers: Ensuring secure and
efficient payment processing.
6. Real Estate • Property developers and landlords providing prime
Partners: locations for the supermarket

7. Regulatory Bodies • Ensuring compliance with health, safety, and


and Local Authorities: food regulations.

8. Waste • Organizations helping with waste reduction,


Management and recycling programs, and sustainability
Sustainability
Partners: initiatives.

9. Human Resources • Assisting with recruitment, training, and


and Staffing
Agencies:
management of staff.

10. Maintenance and • Ensuring the supermarket is well-maintained


Security Services: and secure for both customers and staff.

• Industry experts providing strategic advice


11. Consultants and on market trends, customer preferences, and
Advisors:
business improvements.
• Identifying and collaborating with these key
partners will help 5-star supermarket maintain
high standards of quality, service, and
efficiency, contributing to its overall success
and customer satisfaction.
WHAT WILL IT COST?
COST STRUCTURE

• 750 million for real estate expenses


• 250 million for initial merchandise purchased
• 50 million for miscellaneous expenses
COST STRUCTURE FOR 5-STAR
SUPERMARKET:
• - Rent/Lease Costs: Prime location in a
high-traffic, affluent area.
• - Salaries: Management staff, skilled
butchers, bakers, specialty food experts,
and support staff.
1. • - Utilities: Electricity, water, gas,
internet, and other essential services.
Fixed • - Depreciation: Costs associated with
the wear and tear of equipment and
Costs facilities.
• - Insurance: Comprehensive coverage
: including liability, property, and employee
insurance.
• - Marketing and Advertising: Ongoing
promotional campaigns, loyalty programs,
and community events.
• - Inventory Costs: Purchasing high-quality,
gourmet, and specialty products, including
perishables and non-perishables.
• - Operational Costs: Daily operational expenses
such as packaging, spoilage, and waste
2. management.
• - Salaries/Wages: Hourly wages for part-time staff
Variable and seasonal workers.
• - Maintenance and Repairs: Regular maintenance
Costs: of equipment, fixtures, and the premises.
• - Technology Costs: Upkeep and upgrades of point-
of-sale (POS) systems, inventory management
software, and other technological tools.
• - Cleaning and Sanitation

• - Training and Development: Continuous training


programs for staff to maintain high service standards.
• - Legal and Compliance Costs: Ensuring
compliance with local, state, and federal regulations,
3. Other including health and safety standards.
• - Transportation and Logistics: Costs associated
Costs: with the transportation of goods from suppliers to the
supermarket.
• - Customer Service: Expenses related to customer
service initiatives, including returns and exchanges.
• The cost structure for 5-star supermarket
will include substantial investments in
high-quality inventory, skilled labor,
prime location, and superior customer
service. The emphasis on quality and
experience means higher operational and
marketing costs compared to standard
supermarkets. However, these costs are
balanced by the ability to charge
premium prices for products and services.

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