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Business Model Canvas

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A business model adds more detail to the evaluation of a new business begun during the feasibility analysis by graphically depicting the moving parts of the business and ensuring that they are all working together. Lancelott gutierrezcampbell 2017 the purpose of business model canvas consists and describing the success factors. Characterising a soap business carried out by MFS working on a regular basis to full fill the customer requirement and reaching at monthly revenue for monthly sales nearly rs. 60000 the following elements of MFS give a painted picture of MFS framework to guide them through the process of developing testing and refining their business model customer segments women who care their own health and particularly interested in natural products are consists of the MFS target customer segments for this business.

The business will expect to have average 250 customers per month. Value propositions the main relevant product offer is a genuine soap handmade adopting a natural process and the mix of natural fruits and oils. This element will gain credibility for the high-quality ingredients also MFS consider an opportunity to offer the soap with a loofah a complementary product. Channels MFS distribute its products to the saloon which are closed to the home each week in order to sell the o sell products. Another potential channel that MFS exploit to sell soaps could be owners house this will increase the opportunity of purchase for the customer. Once the market is developed MFS will evaluate the opportunity to enter the supermarkets.

Customer relationships in order to promote the business among potential customers. MFS distribute the business cards and the packaging contain the business website which increases the visibility of the business. Revenue streams considering the saloon as the main distribution channel the unit price for soap rs .150. The price is established based on the product cost necessary to support during the production expected average monthly sales is 300 pcs key resources the continuity of the business process is mainly ensured by the full presence of the entrepreneurs. Fruits are the main elements to produce MFS soaps. It is possible to identify 5 different fruits which are most beneficial for skin with healing properties oil and water. Key partners MFS does not require specific partners but the most relevant with a marketing and sales experience to promote the products. Along with people who supply raw materials to the business. Key activities the first and foremost activity is a collection of fruits and preserve it until for the manufacturing. Once the production is completed according to recipes in order to promote them to established channels every soap will go through h packaging process. Next, the key business partner will contact the distribution points and deliver it personally.

Cost structure the cost structure of MFS is characterized by fixed and variable cost. For the total amount of per month. The monthly salary for the personals who engaged in business activities of MFS would be 7500 x 3 considering the variable cost is most relevant to raw materials which are collected on the basis of natural availability. The approximate cost for one month would be rs… New business drivers easy method of production facilities less cost delivering on time and having a penetration pricing are the key business drivers of MFS customer relations MFS provide small customer survey form to the buyers of soaps. This will enable them to provide the feedback and the social media page allow them to share their view and opinions to find out the perception level of the product and will allow the company to find out the weakness of the product.

Value chain based resources MFS resources are the unique combination of resources and competencies such as talented workforce organizational capabilities finance facilities which provide economies of scale and competitive advantages. Competitive strategies MFS focus on the differentiation strategy to make it soaps unique to compete with the competitor’s product this will allow the firm to meet the demand of the customers and concentrating on the niche segment in the marketplace where other competitors missed to find the opportunity 81.2%

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