New Venture Development

Different elements of CANVAS model

All elements of CANVAS model are explained as follows-

Customer segmentation-The customer segmentation divides is the procedure to divide overall buyers groups. The target customer covers basis focus on working professionals and youth. Basically their need related to less time and hygiene food is considered. Owing to this, product procedure has been selected accordingly whereby it becomes easy to target the buyers effective and raise their attention towards products and services which are being offered by 24*7 Coffee cafe. This proves to be effective for company to increase customer base. Further, perfect competition market is selected for offering varied range of products and services in the marketplace (Simoneaux and Stroud, 2011). This shows that customer segmentation is decided effectively and accordingly competitive edge of the business is created. In addition to this, business can put efforts to bring innovation in the market so that customers can be retained for longer time. However, this strategy is adopted by using more suitable pricing strategy and grabbing attention of buyers towards unique and new services offered by the business. This reflects that customer segmentation has been decided by using appropriate marketing strategy along with association of unique concept related to hygiene because obesity related issues are shifting focus of youth towards hygienic food. It has already been said that all customers are targeted by the business. Hence, it becomes important to shed light on specific expectations of buyers and met the same by using appropriate strategy. Thus, segmentation has been done by focusing customer needs and type of market under which business will be operate.

Value proposition- There are several coffee shops in London but no specific focus is given for hygiene and varied products and services in accordance with customers. However, the present  24*7 Coffee cafe is offering bulk of benefits together. For this purpose, features of current business are additional facilities such as Wi-fi and calm environment which grab attention of professionals also for their meeting purpose (Sinkovics, Sinkovics and Yamin, 2014). At the same time, focus is laid on different kind of food such as vegetable, non-vegetable and different drinks. This in turn support business to create its unique identify and expand its venture at global level in future time span. Not only this but, uniqueness of business is that it is targeting to all age people with specific need related to hygienic food, time issues and delivery at home and professionals meeting in calm environment. This in turn firm can effectively increase overall rate of return and deliver good quality of services to large number of buyers. Furthermore,  24*7 Coffee cafe is unique among its competitors because it offers several benefit in single service. It can be considered as the key destination for attraction or satisfaction of buyers who prefer to have quality food. So, value proposition is hygiene concept and additional services which offer complete quality food.

Distribution channels- Distribution channels are considered as the most important procedure under which management of the firm tends to deliver its end product among users. However,  24*7 Coffee cafe has its physical outlet to give rich experience for new users related to quality services (Teece, 2010). This unique concept of business attract more health conscious people along with professionals and youth who want to spend their quality time at perfect place. The most important aspect is related to online delivery whereby firm will have its own application which can be uploaded on mobile phone of users. This application make it possible to ping  24*7 Coffee cafe regarding any kind of requirement. Accordingly personnel of firm define or design attractive plan to deliver food in relatively less time span. Apart from this, competent and skilled personnel will be hired in the outlet who can easily understand the requirement of buyers and provide them product and services accordingly. They key personnel will be highly qualified who can also review instant feedback of customers and make them feel comfortable by resolving their queries. However, only two mode of delivery has been selected so as to ensure operation of firm in a cost effective manner. This facilitates to increase its profitability and reduce the cost of production to a great extent.

Customer relationships-Customer relationship is another important element of CANVAS model under which business covers all marketing related activities and promotion of the products and services. It is the common fact that customer relationship cannot be developed without interacting with them. For this purpose,  24*7 Coffee cafe will use internet as the most effective technologies to keep customers informed about special offers and other related information (Trimi and Berbegal-Mirabent, 2012). Furthermore, social media page will also be designed and buyers will be attracted in the same manner. Apart from this, specific site of business will also be updated whereby it becomes easy to approach customers to get their review. At the same time, after online delivery of food product a small and interesting survey can be conducted by firm to ask review from its consumers. In this manner, lacking areas will be explored and buyers will experience very good things or services from 24*7 Coffee cafe. Furthermore, distinct application of corporation of firm is also effective through which it can be in contact with potential buyers and provide them timely information regarding any kind of specific discount. However, regulator customers can get the club card and get discount on purchase of specific products and services. All these strategies are helpful to retain buyers and build good relationship with firm.

Revenue streams-Revenue streams is another important element of CANVAS model which reflects that what will be the sources of finance for current business and how firm will increase its rate of return. Here, 24*7 Coffee cafe will access personal finance and bank loan so as to access cost effective sources and meet the expectations of all related buyers in an effectual manner. Furthermore, revenue streams is promoted by offering specific discount on offers products and services so that customer base can be increased for particular time span. It aids to increase sales turnover and support firm to meet its long as well as short term objectives (Wright and et. al., 2016). At the same time, leasing companies might approached to access machinery used to produce products and services of  24*7 Coffee cafe. It would reduce initial burden of finance and enable firm to approach potential buyers effectively in relatively less time span. Furthermore, sales turnover is increased by adopting suitable marketing strategies and gaining popularity in the market. It is the main reason that cost effective mode of communication is implemented and in the same manner firm can effectively build competitive edge in the marketplace. Apart from this, cost plus mark up price strategy would be adopted so that directly management target to recover the cost of production and increase rate of return in the marketplace.

Key resources- It is common fact that business need to ensure inclusion of varied resources for production of tea and other eatables. These can be done with the help of physical, financial and human resources. All these resources facilitate firm to produce good quality of products and services in the marketplace. Further, competent and skilled employees are recruited whereby it becomes easy to approach buyers effectively. Apart from this, financial sources such as bank loan and personal finance is considered to start the venture. In addition to this, all other facilities and machinery as well a furniture and land will be purchased on the basis of specific plan (Bell, 2010). Hence, all these sources are helpful to start the venture in relatively less time span and meet the expectations of all related buyers. Furthermore, all these key resources contribute towards successful operation of firm through which company can reach to its break even point as soon as possible. It can be critically evaluated that employees associated with the business must be skilled and highly competent. This aspect contribute towards organizational success at the global marketplace. It enables business to meet expectations of all related consumers and accordingly retain all stakeholders such as investors. Therefore, key resources are associated for success of  24*7 Coffee cafe and long run survival with increased rate of return.

Key activities- There are different activities performed by 24*7 Coffee cafe to retain buyers and interact with them. At this juncture, marketing, production and sales related activities are performed by key personnel. At the same time, activities related to motivation and satisfaction of employees is prominent which is made possible by offering them reward in financial and non-financial aspects both. At this juncture, marketing activities are completed by taking into account internet (Burns, 2010). In this manner, internet marketing proves to be effective to approach huge customers and create sense of achievement among them by purchasing different products and services. However, unique page of social media is created wherein  customers review the same and like its appropriate updations. In addition to this, sales related activities are supported by marketing only. However, employees motivation is done with the help of suitable work environment and providing them immense support to carry out given task on right time.  Apart from this, production procedure is the main aspect whereby firm start operating its business in accordance with set procedure so that customers can be provided the ordered product in less time.

Key partnership- The key partnership of firm will be with farmers who provide coffee beans and other providing fresh vegetables and meat etc. At the same time, retail stores like Tesco and Sainsbury can be approached by 24*7 Coffee cafe to purchase raw material and semi finished goods. However, other related small kiosk can be contacted to offer food in bulk. Therefore, all these key partners support business to approach consumers and offer them products as well as services on right time. Apart from this, van can be contacted for online delivery of food to end users (Evans, 2015). Hence, it is also the effective aspect for attracting more buyers and ensure success of the business in the marketplace with the increased rate of return. Furthermore, key partners forms their contract and accordingly enter into legal relationship to offer their product and services for specific time.

Cost structure-The cost structure of the business will be additional of direct and indirect cost. This would be done by adding all the expended incur to purchase the land, raw material and rent, taxes and other related expenses. Here, basic income statement will be prepared for two to five year so as to record all related information effectively and meet the expectations of all related buyers (Gheorghiu, Gheorghiu and Spanulescu, 2010). Moreover, break even analysis will be done by checking the income of the firm against the expenses generated for particular financial year. This proves to be effective to derive exact amount of profitability or loss occurred to business. Hence, a very simple cost structure of the business is followed under which pricing strategy is done on the basis of perfect competition market. This tends to create competitive edge of the business by meeting expectations of all related parties and recovering the cost of production for 24*7 Coffee cafe.

Conclusion

From the above carried out assessment, it can be concluded that appropriate segmentation of customers is very important for overall growth and success of new business. The proposed business will be targeting people which generally include working professionals and youngsters. It can be also inferred that the new business will focus on developing and maintaining good relation with all its customers in order to ensure long term growth and development. From the above carried out assessment, it can be concluded that cost plus mark up price strategy would be adopted by the new business in order gain higher revenues.

References

• Bell, J., 2010. Student business plan competitions: who really does have access. In Small Business Institute National Conference Proceedings. 34. pp. 18-25.
• Burns, P., 2010. Entrepreneurship and Small Business: Start-up. Growth and Maturity. Palgrave Macmillan.
• Evans, V., 2015. The FT Essential Guide to Writing a Business Plan: How to win backing to start up or grow your business. Pearson Higher Ed.
• Gheorghiu, A., Gheorghiu, A. and Spanulescu, I., 2010. Target market risk evaluation. arXiv preprint arXiv:1007.1908.
• Simoneaux, S. and Stroud, C., 2011. A business plan: The GPS for your company. Journal of Pension Benefits Issues in Administration. 17(3). pp.92-95.
• Sinkovics, N., Sinkovics, R.R. and Yamin, M., 2014. The role of social value creation in business model formulation at the bottom of the pyramid–implications for MNEs?. International Business Review. 23(4). pp.692-707.
• Teece, D.J., 2010. Business models, business strategy and innovation. Long range planning. 43(2). pp.172-194.

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