Business Model Evaluation for The Fox Coffee - 773177X

AT2 Business Model Evaluation

SACE ID: 773177X

DRAFT due Date: 28th July 2022

Word Count: 1897

Link to the Portfolio:
https://sites.google.com/d/1MvH2itYqvUythsDhtwMMmwCkyD
qEykD2/p/1WQ121plDRvq7cj1726ZlTlTRpQWIN_o7/edit

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Business Model Evaluation for The Fox Coffee - 773177X

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Business Model Evaluation for The Fox Coffee - 773177X

1. Evaluation of Decision making and project management tools and strategies used

LVB was a useful tool helping me identify customers' problems and pivot important stages based on
customers' preferences and secondary research, hence, develop viable solutions to satisfy customer
needs. During the interview with stakeholders who had experienced opening a pet cafe, our group
suggested that it was necessary to consider whether the customers are allergic to pet hair or not. We
pivoted the problem hypothesis based on interview information with customers’ concerns about
hygiene and pet disobedience leading to a breakdown in the restaurant. Therefore, understanding
the issue that our customers have assisted us thoroughly develop amendments in the Value
Proposition: having separate spaces and developing our customer relationship and Value
Proposition.

VPC assisted me in identifying a set of the business's pains and gains, from which I was able to
determine how to construct a coffee shop with customer-focused features and address the issues
LVB's customers witnessed. However, the secondary research's information was still inadequate, so
we transformed to the How Might We Question and Customer Archetypes - Design tool from
Stanford D-School. These design tools unlocked innovation and solved consumer problems, which
provided additional information to modify pain relievers for the VPC, by interviewing stakeholders
who had insight identification of pet café concerns. As a result, it also gathered and considered
feedback from stakeholders to enhance and pivot the Key Activities section of the BMC - provide
antibiotics and feed additives for pets and the Customer Segment which developed from Customer
Archetypes by analyzing customers more in-dept.

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Furthermore, for more insightful identification prior to opening the cafe, we set up a 2x2 matrix to
conduct competitor analysis and research on the market share and profitability of the competitors,
thereby gaining valuable knowledge to devise more innovative strategies and differentiate ourselves
from other competitors, which help us have deliberate decision in developing the BMC: investing
more in marketing strategies in the Cost Structure segment. Hence, the cafe's brand identity could
expand and engage in many more clients, improving the Value Proposition in the BMC.

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The Get-Keep-Grow approach enabled me to monitor customer service and marketing strategies. I
went to a business meeting with a well-known marketer. He strongly advised me to develop
promotional programs to boost the pet cafe's brand recognition in the upsell purchases and customer
retention sections after looking over our Get - Keep - Grow plan. Customers generally prefered
discounts and bonus items, according to another study. As a result, we gained knowledge about how
to keep clients and increase customer growth and decided to use the concepts of offering discounts
and pet souvenirs, providing card membership based on the Keep Stage and Grow Stage. This would
ensure the retention of customers' purchases, which increased the business's capacity to develop its
customer relationships and key activities section in the back-end-stage of the BMC.

Cashflow Forecast was a helpful tool for developing a strong understanding of financial literacy in
running a business. By using financial information, we may ensure the cafe's monthly profitability
and be conscious of the business's operating orientation. Through research, we found that although
the raw material level from coffee producers did not rise significantly monthly, the hygiene and
testing diseases of pets were much more expensive than they had previously been, so we decided to
have a separate cost about testing diseases fees and cost of buying deodorizing separately in the Cost
Structure and Revenue Stream section. Therefore, we could more effectively control and modify the
income and outcome of the firm, then the revenue could be more predictable.

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2. Evaluation of risks and opportunities in the digital age with recommendations

Opportunities
Key Partners and Customer Relationships, Channels

Fox Coffee should take advantage of the potential to implement an influencer marketing campaign
in order to extensively promote its brand and increase its customer revenue because of the growing
number of Internet users and the youthful demographics. The business should partner with
well-known influencers to create content for social media sites like Instagram and TikTok to inform
users about The Fox Coffee's best features and draw them in more, particularly students and young
individuals who are easily tempted by social media. From enticing potential customers through
online channels, the influencer endorsement campaign will help the business promote the intention
of young people to use the pet coffee service through social networks thanks to the popularity of
those influencers. Thus, not only will this improve Fox Coffee's reputation, but it will also guarantee
our monthly profitability.

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Risks
“ The prices of construction materials such as steel, cement, asphalt, sand will continue to spiral up for the rest of 2022
due to soaring prices of imported materials and high local costs of material exploitation and production.”

The cost structure of The Fox Coffee will be an issue during the digital transformation because rental
and the cost of the equipment and machinery needed to run the cafe will go up. Furthermore, there
will be high demand for building materials and construction in the final months of the year,
according to the Ministry of Construction. Due to the increasing cost of construction materials, our
company will thus need to significantly increase the BMC's cost structure, which will force the store
to reduce the cost for other expenses including employee salaries. Moreover, our business can rent
houses in the outskirts, which are more affordable and larger in size which are ideal locations for a
pet cafe, to save building expenses. This not only allows us to save money, but also provides
consumers with a spacious space to match their needs, enhancing customer relationships and
ensuring the Value Proposition.

Second, the increasing number of internet users in Vietnam will cause the business to have an
additional risk that there are many competitors, particularly those who are connected to e-commerce
platforms and conduct business online. Our company's ability to serve beverages will be restricted by
the unique aspect of being a pet cafe because most clients want to visit The Fox Coffee so they may
enjoy a private place with their pets. As a result, it will be difficult for this business to succeed with
ordinary coffee shops and slow down the flow of revenue of the business in the long run.
3. Evaluation my contribution using Business Intelligence to develop the BMC

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FOCUS GROUP & INTERVIEW

Our team's two most popular and effective ways for understanding about the needs and desires of
our customers are interviews and focus groups. In order to better serve clients and improve the cafe,
LVB and VPC benefited greatly from the data gathered in the two ways mentioned above. I held a
chat with the client segments, who are young and interested in pets, during the development of LVB,
and through it I realized that their desire to raise pets is still restrained by concerns about not having
enough time and pet disobedience, which caused breakdown inside the apartment. Then, by
synthesizing data to build VPC, we can make LVB pivot decisions based on those consumer anxieties
and create customer-focused features for the business.

I organized the meeting with Ms. Hanh and Ms. Nguyet Minh, who has extensive experience running
coffee shops, particularly those that specialize in pet coffee. We have learned a lot of new
information by responding to brief questions as well as questions on in-depth topics like marketing
strategies to keep customers, such as how to give away pet souvenirs or network workshops where
people can share their experiences with raising pets to create more effective Key Activities, Customer
relationships, and Channels.

SECONDARY RESEARCH

The Cash Flow for Financial Literacy is developed with the help of secondary research. We can
determine the revenue and outcomes of the cafe by conducting internet research on the costs of
building, rental, and material supply, and from there we can develop a reasonable budget proposal to
maximize profit. Due to concerns about unpleasant smell coming from competing businesses, we
decided to include the cost of deodorizing and sanitizing water in the cost structure.

SURVEY & QUESTIONNAIRE

I developed surveys and questionnaires early on in the BMC to test the LVB's assumptions. I was able
to navigate the customer's desire for the shop and subsequently develop it further in the following
stages based on the answers of stakeholders and potential customers. More specifically, the survey
findings made me aware that customers prefer a spacious private location with lots of discounts and
dislike furry pets, which helps me improve the BMC's Consumer Segments.

4. Evaluation my collaboration in the development of the BMC

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During the formation of the BMC, in order to better understand how to deliver consistent value and
outstanding customer service, our group's meeting started to create a journey map by interviewing
knowledgeable stakeholders who had run a pet coffee before. Mr. Hanh and Ms. Nguyen Minh were
the 2 respondents I interacted with via Google Meet to gather information for our customer-focused
journey map . We created a Journey Map with assistance from two experts and material from the
internet to have a better understanding of how pet cafes operate and how to provide the best service
possible to consumers. Consequently, in the early stages of the project, we were able to build the
Value Proposition and Customer Relationship.

While establishing a business and summarizing the benefits of our product in VPC, in terms of
engaging with a wide range of stakeholders and potential customers, I also used the How Might We
and Customer Feedback Grid so that I could give the most informed opinions to the customers.
After discussing ideas among our gain creators and pain relievers via the form's questionnaires, we
documented our collaborators' ideas and put feedback on the Customer Feedback Grid. We then
modified our VPC, which assisted with our company's improved development and business
performance. For instance, when considering Ms. Hanh's suggestion that pet cafes require addictive
feed, probiotics, and more testing for diseases, we observed and determined that this was a very
feasible and practical idea. As a result, we decided to use that suggestion to enhance BMC's Cost
structure and Key Activities.

We initially decided to do a competitor analysis in order to determine what external factors might
have an impact on the business' expansion. After all was finished, we thought that this competition
study did not adequately address ethical and environmental concerns, so we decided to perform
STEEPLE, a different kind of market analysis. more doubtful. Steeple played a key role in helping us
create the SWOT Canvas, which detailed the business's upsides and downsides and allowed us easier
to offer suggestions for the development of the BMC. We had to organize numerous meetings
throughout the creation of Steeple because the members could not agree on the fundamental
concept because there was too much misinformation surfaced online. Therefore, rather than the
entire group seeking for information and completing it together, we had to divide the job equally so
that each individual completed an arrangement and was welcome to comment on others' works.

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My participation in developing our Business Model Canvas was indispensable. I was the team leader,
allocating tasks to each team member in accordance with their qualifications and serving as the
moderator of all team meetings where suggestions from my teammates were revised. As the BMC
was being developed, I was responsible for reviewing collected information , applying it where it was
advantageous, and ensuring the teammates' work for quality and adherence to deadlines.

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https://britchamvn.com/wp-content/uploads/2021/05/Vietnam-2021-Infrastructure-1.pdf

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