Business Model Canvas Assignment: Case Analysis Of Nutribowls

Question

Task:
Prepare a business model canvas assignment discussing the business plan of food servicing company “Nutribowls” of Melbourne.

Answer

Executive Summary
Cutting edge daily routine has constrained individuals to experience a quick life and they pay less spotlight on their eating regimen admission. The fast change and advancement in the mechanical setting additionally have since quite a while ago established ramifications on the Melbourne-based individuals and their customary ways of life.

Introduction
Business model canvas has important information about the business process of a company. This is beneficial to develop any improvement projects, strategic changes or other business activities based on the same business line. This report has been developed to discuss and portray a business model canvas of a food servicing company of Melbourne.

Identification of the ‘problem’
Modern-day life has compelled people to live a fast life and they pay less focus on their diet intake. The rapid change and development in the technological context also have long-rooted implications on the Melbourne-based people and their regular lifestyles. With the ever-changing shift in lifestyles, the food intake habits are also revolving especially among 25 to 50 age-group adults. It has been found that this considered age-group people often consume fast food as they have no time to cook healthy and nutrient food at their home. Such changes in food intake are not good at all and can have long-term health hazards. Such a shift upon Australian people's lifestyle therefore needs one alternative of healthy food.

Thus, considering this specific healthy food need problem of the Melbourne-based consumers, this business plan of Nutribowls had been initiated. Nutribowls is one delivery food alternative which can serve healthy food added with nutritionally balanced meal options as per the taste and preference of the consumers. Nutribowls also promises its consumers to serve only freshly cooked healthy and delicious meal. Hence, the Melbourne people should subscribe to the mobile application of Nutribowls to avail fresh, organic and healthy food options and that too at far below the market rate. With the ever-changing movement in ways of life, the food admission propensities are additionally rotating particularly among 25 to 50 age-bunch grown-ups. It has been discovered that this considered age-bunch individuals frequently devour inexpensive food as they have no ideal opportunity to prepare solid and supplement food at their home. Such changes in food admission are bad at all and can have long haul wellbeing perils. Such move upon Australian individuals' way of life in this way needs one option of solid food.

Use case diagram
This is the use case diagram shown below that is developed as per the application activities and system of the company. There are five actors in this diagram. The order manager confirms the order and handles the feedback. The account manager generates the bills and handles the payment segment. The delivery manager track orders and assign orders to agents. Customers can log in, develop order, do the payment, track order and provide feedback regarding the order and delivery.

Figure 1: Use Case Diagram
(Source: Created by Author)

Business Model Canvas
Customer segments
Nutribowls is very specific about the target consumers whom it wants to focus on. The customer segment that Nutribowls want to target is the age-group person within 25 to 50. This considered age-group person will be the working professionals who are living in Australian urban areas. Another special focus about this target consumer will be that they have $82000 to $140000 income ranges. The corporate companies who are looking for some curated food menu for their offices will also be the target customer segment for Nutribowls. The reason for considering the mentioned income requirement in the target consumers is that health-based supplement or foods are quite costly [1]. From Nutribowls, these target consumers can avail wholesome foods and smoothies with less carb and no gluten. The food although can be customized as per consumers’ individual intake capacity and body structure. Hence, the customers need to spend a good amount for getting gluten-free nutritional food options on a regular basis. The consumers who are highly busy with their business, filmy lives or services and thus have no time left for making their own foods will be focused mainly by Nutribowls. Nutribowls thus wants to reach to various customers types like decision-makers, economic buyers and recommenders.

Value proposition
The value proposition that Nutribowls is offering to its consumers is “Healthy Diet = Happy Mind = Good Life”. Nutribowls promises its target consumers that they can avail timely, healthy and well-balanced meals as per their dietary requirements through its mobile application. Nutribowls also presents the value proposition of offering economic pricing for the products and saving the valuable times of consumers in regular food-making. The calories count in each food will also be customized as per consumers’ preference [2]. Hence the value proposition served by Nutribowls will be its organic and curated menu option along with the economic pricing and nutritional value. The user-friendly mobile application of Nutribowls is also going to serve as its Value Proposition aspect by enabling the users to encounter one hassle-free food ordering.

Distribution channels
Nutribowls will be one subscription-based business model and use self as mobile to be the only distribution medium. It will also save that application from the cost-saving context of the commission fees, profit sharing or 3rd-party aggregator. Hence there will be no such possibility of diluting its overall profit margins. The subscription-based distribution model hence will try to appeal the working professionals and will also deploy offline and online promotional means. Services and diversification are also ensured by this distribution channel [3]. Add support plug-ins will also be featured in the application so that fees are run through that platform. The distribution channel of Nutribowls will also include the delivery partner service. The dedicated mobile-app only e-commerce service will be aimed to attain customer retention by up to 90%.

Nutribowls although will also implement “Order to the End-users type Delivery model”.

As per the distribution model, the order will be facilitated by sales. Consumers can easily order the foods through the application and will be led to final confirmation by a notification. The consumers will also be notified when the delivery assistant is ready to dispatch with their order. They can also track the order throughout. It will thus be a 3-stage deliver process and will include the aim of delivering the food by 40 minutes only.

Customer relationships
Nutribowls is highly focused to maintain one healthy and interacting relationship with =its targeted consumers. Therefore, Nutribowls will be initiating various customer relationship programs like promotional offers, live chats, SMS, social media promotion, referral programs, gift vouchers, Influential marketing, Sponsorship with various fitness club-based events for enhancing outreach and co-promoting with Google AdWords, SEO, push notifications and Newsletter. The offline promotions by billboard will also be the prime focus of Nutribowls for keeping a steady connection with the targeted consumers. For ensuring effective customer relationship analytics, Nutribowls will also deploy online media and corporate teams for outlining customer onboard and product imaging contents [4]. There will be loyalty programs for developing the coin value-oriented worth for every subscription. The programs will be categorized into Bronze, Silver and Gold schemes. Moreover, Contests will be initiated now and then along with bi-annual giveaways for retaining the consumers. Membership rebates will also be offered to consumers. Social media platforms like Facebook and Instagram will be focused at large by Nutribowls by posting organic meal titbits and visual graphics and video.

Revenue streams
Revenue is one of the most important factors of the business. This is the most concerned objective of every business organization. Proper revenue makes the business growth and to be successful. There are several sources of revenue in a business. These different sources are known as the revenue stream. In this case, the food company offers a different service to the customers. The company has started with a subscription-based delivery service and has recently launched its one-time order service also. There are many corporate organisations who are the steady subscribers of this company. The company has different revenue sources that are used in this business.

• From one-time customers, the company can earn Transaction-based revenue. This is a current and running revenue stream of this business. There are many customers who do not need daily service of foods. They order one-time while the food is needed. This may not be frequent for one customer. However, there are many customers who can feel the gaps.
• Project Revenue is also earned by this company. There are different projects for marketing and sales. Several offers and other business designs are implemented by the system to attract more customers. These projects make the customer base of the company stronger. This helps to have good revenue for the company.
• Recurring Revenue is the most used and important revenue stream for this company. The main business of the company has been started with the subscription-based business model. As discussed earlier, there are many companies and individuals who are the monthly and yearly subscriber of the services [5]. They are the fixed customers of the company. Predictable revenue is generated from this part of the customer segment.

These are the three most common and using the revenue stream for this company. These revenue streams are being maintained by the management to have a better performance in the market.

Key resources
There are several key resources of the company that helps to run the business properly. The key resources of this concerned business have been highlighted and discussed below.

Financial resources: This is the most important resources for a business. The company has enough financial backup to make the business run. Not much improvement is possible at this point. However, the growing revenue of the business is making the financial resource stronger.

Technological resources: The company maintains the order and delivery system through online mobile application service. Therefore, the technological infrastructure of the company is strong. The company has an efficient live tracking system. The company has implemented an automated enterprise management system also in this business facility [6]. This helps to manage the entire business process in lower time and lower cost.

Human resources: This is another important business resource for this company. The staffs of the company are doing different jobs. The cooks, the delivery staffs, the management and accounting staffs, all are the part of the human resource of the company. The recruitment process of this company is maintained by a third-part human resource service provider. However, the company is trying to have their own human resource department in future.

Physical resource: The physical assets of the company is known as physical resources. The company has the office house and all the peripherals in this. The physical infrastructure of the facility is known as physical resources.

Key activities
The key activities of this food company are properly designed based on their market presence and desired market positions. The primary focus of these activities is to make revenue properly along with maintaining customer satisfaction by providing proper organic and healthy foods to them. The key activities of this company are listed and discussed below.

• Taking online order and processing as per the requirements
• Collecting organic and fresh resources
• Management of the enterprise system
• Delivery of the food to the customers
• Delivery management
• Customer relationship management

Key partners
There are many partners of a business who helps the business to take place in the market. These partners are also known as the stakeholders of the company. this company also has some business partners. The third-party human resource company is one of the partners of this company. This company helps Nutribowl to have proper human resource to the business. On the other hand, there are media partners for the marketing of the company. Local print media and visual media channels are the partners of the marketing of this company. A financial partner helps the company with different financial issues. Banking company is a partner of this company who helps in financial issues and supports the company.

Cost structures
There are several factors in the cost structure of a business. All the parts can be developed as per the business requirements. Training and development need a certain amount of cost. Salary of the employees is another part of the cost structure. Maintenance of the IT system also needs some cost. Marketing cost is part of the cost structure. Food development cost is a major part of it. This cost structure is maintained by the company to have success in the market.

Business Model Canvas Brief

Market type
There are four different types of market that are Pure competition, Monopolistic competition, Oligopoly and Pure Monopoly. In this case, the considered company is facing an Oligopoly market. There are limited competitors in the market who are offering similar products and service to a similar target market. There are few companies who are working on this business line currently. However, the trend is increasing its popularity [7]. Therefore, it can be assumed that the company is going to face a purely competitive market further in the business.

Low and High-fidelity prototypes
There are two different systems running in this business. One is the application that is used by the user and business ends make the order, delivery and transactions. Also, the feedback system is added in this application. This is a high-fidelity prototype using by this company.

On the other hand, the enterprise management and monitoring system has limited user interactions. This is used to perform a pre-instructed and limited range of works. Providing information and executing proper activities are the parts of this prototype.

Unique selling points and your team’s unfair advantage
The unique selling point of the company is fresh and organic food according to the user's diet requirements. Personalised meal design is the unique service that the company offers to the customers. Therefore, this is the USP of the company.

The experts have excellent knowledge of nutrition and can develop attractive food combinations to fulfil the customer diet requirements. This is a unique skill that is rare in the business. Therefore, this can be considered as the unfair advantage of the company.

Conclusion
This report has discussed the business model of the company. There are several factors that have been highlighted and discussed in this report. The company is facing the oligopoly market currently. However, it is going to dace pure competition in near future. This report can be beneficial for developing further research or project for this business.

References
[1] K. Annaraud and K. Berezina, "Predicting satisfaction and intentions to use online food delivery: What really makes a difference?", Journal of Foodservice Business Research, vol. 23, no. 4, pp. 305-323, 2020. Available: 10.1080/15378020.2020.1768039.

[2] A. Karunia and B. Arifin, "Business Development Using Business Model Canvas in Lucky Star Digital Printing", IPTEK Journal of Proceedings Series, vol. 0, no. 5, p. 378, 2019. Available: 10.12962/j23546026.y2019i5.6365.

[3] I. Locher, M. Waselewski and T. Chang, "4152 Special Delivery: Home Delivery of Healthy Food to Young Women during Pregnancy", Journal of Clinical and Translational Science, vol. 4, no. 1, pp. 145-145, 2020. Available: 10.1017/cts.2020.427.

[4] B. Mulyana, A. Daryanto and A. Purwito, "Business Model Development Strategy of Padjadjaran University with Canvas Business Model Approach", Asian Business Research Journal, vol. 3, no. 1, pp. 1-8, 2018. Available: 10.20448/journal.518.2018.31.1.8.

[5] K. Nurhayat, "DESIGNING BUSINESS CANVAS MODEL AND ANALYSIS BUSINESS IN WARUNG DIMSUM", Dinasti International Journal of Management Science, vol. 1, no. 6, pp. 903-912, 2020. Available: 10.31933/dijms.v1i6.398.

[6] S. Shahand, J. van Duffelen and S. Olabarriaga, "Reflections on science gateways sustainability through the business model canvas: case study of a neuroscience gateway", Concurrency and Computation: Practice and Experience, vol. 27, no. 16, pp. 4269-4281, 2015. Available: 10.1002/cpe.3524.

[7] "The Business Guideline of New Entrepreneur toward Business Model Canvas", International Journal of Business and Economic Affairs, vol. 3, no. 1, 2018. Available: 10.24088/ijbea-2018-31005.