Task 1; Part 3:

Assessment 1 – Task 3: Business Model Generation

Section 1 – Completed Canvas

KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITIONS CUSTOMER CUSTOMER SEGMENTS

RELATIONSHIPS

● Suppliers ● Providing facilities for ● Cost reduction ● Self-service ● Uni students -

● UTS storage, heating, eating ● Accessibility ● Community undergraduate
● Second hand stores and cleaning ● Convenience/usability ● Automated services
● Manufacturers ● Providing a social space ● Social value
● UTS students for students ● Exclusive student
deals (i.e. one free
KEY RESOURCES coffee per month) CHANNELS

● Café attendant ● Café counter

● Capital ● Vending machine
contribution/investments ● Online payment for
● Furniture, appliances, subscription
food stock and storage

COST STRUCTURE REVENUE STREAMS

● Value driven – customers pay one price for many benefits ● Subscription service
● Initial facility costs ● Canteen/in-house café with fresh healthy meals offered
● Pod coffee – pay per pod
 1. Customer Segment:
Customer Segment block is one of the most important building blocks in the business model canvas because customers are at the core of any business. Let’s
face it no matter how innovative or cutting edge a company’s product/service may be, without customers who are willing to pay for it, the company will not
last very long. As IBPers we must recognise and understand that our target customer is under no obligation to buy our product/service, therefore to keep
our business viable we must appeal to the target customer segment.

For our product to appeal to the customer segment we must first understand who the customer is and then also understand the job-to-be done. This can be
achieved by simply building a customer profile by evaluating the persona, and also factoring things like geographic, demographic and social context which I
will explain later. The target customer for our service will be mostly undergraduate students attending UTS, but not limited to. The “job-to-be-done” is
providing facilities for storing, heating and eating food in one convenient place Afuah, 2014.

2. Components of the CS:

As mentioned above the customer profile defines the Customer Segment. There are usually 4 broad categories to stick to when doing this, which are;
Demographic, Geographic, Psychographic and Behavioural. Lets break these down:

1. Demographic: Age, Race, Religion, Gender, Education Level, Ethnicity, Income etc.

2. Geographic: Countries, Cities, Rural area, Regional.

3. Psychographic: Social Status, Lifestyle, Personality Traits.

4. Behavioural: Budget, Consumption, Usage Rate, Desired Benefits

Lets use this to break down our customer which is an Undergraduate student attending UTS.

Demographic:

● Students are usually of different ages ranging from 18-40, but predominately falling into the 18-23 age group.
● Genders are mixed equally.
● Income is very important here, most people are on a budget and looking to save money on food by preparing their own at home.
Geographic:

● A lot of international students who have a certain type of preference for food and prefer to prepare their own

Psychographic:

● Lifestyle and healthy eating is becoming more popular, but this kind of food isn’t always easy to find around campus and is quite expensive. Again
tempting people to bring their own.

Behavioural:

● Budget plays a huge part for first time university students, this means either preparing proper healthy meals at home, snacking on cheap unhealthy
alternatives or not eating at all.

By looking at this break down we can see that our market falls under the Niche Market, students that have the need to bring prepared meals from home, be
able to store them, heat and eat all in one place Barquet, 2013.

3. Role of the Customer:

The role of the customer is a big one, as our whole business model is built around the customer “Pains” and “Gains”. Our customer experience certain
difficulties when trying to perform a certain task, which in this case is consume prepared food from home. There are already microwaves around the
university but they are usually busy and require long waiting times. Storage of food is also a problem, carrying around food that leaks in your bag isn’t very
fun. Consumption of food and trying to find an empty seat next to the microwave is also a hard task. All these are classified as “Pains” that the customer
goes through. Therefore if we didn’t have these there wouldn’t be a job-to-be-done and hence no product/service Osterwalder and Pigneur, 2019.
References:

● AFUAH, A.
Business model innovation: concepts, analysis, and cases
Afuah, A. (2014). Business model innovation: concepts, analysis, and cases. New York: Taylor and Francise.

● BARQUET, A. P. B.
Employing the business model concept to support the adoption of product–service systems
Barquet, A. (2013). Employing the business model concept to support the adoption of product–service systems. [ebook] Sau Paulo, Brazil. Available at:
https://www.sciencedirect.com/science/article/pii/S0019850113000710 [Accessed 14 May 2019].

● OSTERWALDER, A. AND PIGNEUR, Y.

Business Model Generation
Osterwalder, A. and Pigneur, Y. (2019). Business Model Generation. [ebook] Available at:
https://s3.amazonaws.com/academia.edu.documents/32253198/businessmodelgenerationpreview.pdf?AWSAccessKeyId=AKIAIWOWYYGZ2Y53UL
3A&Expires=1558078721&Signature=Zf85OKS7QXPeg0fkkANM%2BIXBslI%3D&response-content-
disposition=inline%3B%20filename%3DYoure_holding_a_handbook_for_visionaries.pdf [Accessed 17 May 2019].