Business Model Canvas

(BMC)
Introduction
• Strategic tool for business design
• Visual arrangement of the fundamental building blocks of a business
• Used for both existing and new businesses
• BMC is iterative

Why BMC?
• Comprehensive modelling exercise
• Identifies alignments
• Illustrates trade-offs
Customer Segments
• Which are our key target customer segments? (For whom are we creating value?)

Needs Attributes

• Is our value proposition aligned with customer needs and attributes?

• Example: Cheermap Foods - Out-of-Home (OOH) consumers of tea/ coffee in office

spaces, restaurants, cafes, and convenience-seeking home-based drinkers of tea
Value Proposition
• Offerings to meet the needs of its customers

• A company's value proposition is what distinguishes itself from its competitors.

• Measurable
• Price
• Efficiency

• Immeasurable
• Innovation
• Customization
• Convenience

• Example: Flybird Innovations - Low cost, innovative, smart irrigation controller to irrigate
water as per crop needs & improve yield by precise irrigation
Channels
• Through which Channels do our Customer Segments want to be reached? How are we
reaching them now? How are our Channels integrated?

• Trade-offs
• Market Size
• Type of product
• Degree of control
• Flexibility
• Cost

• Three dimensions
• Marketing and Sales Channel
• Delivery Channel
• Service Channel

• Example: Auxin Crop Consultant - Web and mobile Platforms; Karna Candy: Sales and
Delivery - Existing FMCG distributors, Marketing – Store displays, Web, and Social Media
Customer Relationships
• What type of relationship does each of our Customer Segments expect us to
establish and maintain with them?

• Purpose
• Retention
• Recurrence
• Referral

• Which ones have we established? How are they integrated with the rest of our
business model? How costly are they?

• Example: Living Greens – After-sales support and service, prompt responsiveness

Revenue Streams
• For what value are our customers really willing to pay?

• For what do they currently pay?

• How are they currently paying?

• How would they prefer to pay?

• How much does each Revenue Stream contribute to overall revenues?

Key Activities
• What Key Activities do our Value Propositions require?

• Our Distribution Channels?

• Customer Relationships?

• Revenue streams?

• Example: Kinetic Machines - product designing, prototyping, delivery management and

business development.
Key Resources
• What Key Resources do our Value Propositions require?

• Our Distribution Channels?

• Customer Relationships?

• Example: Auxin Crop Consultant – Subject Matter Expert

Living Green – Human and Non-human Resources to Develop Franchisee Model
Karna Candy – Brand building resources
Partners
• Who are our Key Partners?

• Who are our key suppliers?

• Which Key Resources are we acquiring from partners?

• Which Key Activities do partners perform?

• Example: Innovation Agro - Technology enablers, Product development partners,

Farmer groups, Communication partners
Inner Being Wellness – Farmer groups for contract farming
Flybird Innovations – Vendors for critical components (e.g. sensors)
Cost Structure

• What are the costs inherent in our business model?

• Which resources/activities are the key cost drivers?

• Which costs vary with volume of output and which don’t?

Illustration – Blue Apron
Illustration – Blue Apron
• Sourcing Ingredients
• Online membership
• Farmers • Subscription-wise meal • Urban
accounts
• Cookware planning • Pre-Portioned, Fresh Consumers
• Freemiums
providers • Order tracking Ingredients
• Logistics • Delivery and Payment • Convenient Delivery • Foodies
partners Management • Original Recipes
• Chefs/recipe Weekly • Amateur
providers • Quality Cookware cooks

• Storage and Delivery • Convenience

Infrastructure • Web and Seeking
• User friendly online Social Media
purchase cart and order • Direct Selling • Health-
tracking systems • xx conscious

Assorted meal solutions (recipes, ingredients,

Farm Greens, Logistics and Transportation, Inventory, Human
cook-ware) through multiple subscription models
Resource , Packaging and Channel/Partner incentives