I need a response to these discussions please

In your response to two peers, address the following:

• Provide at least one specific idea or recommendation to help them address the problem areas in their model.
• Share any suggestions or tips that you found helpful when researching or working on your business idea.

Hello Everyone!

The 9 building blocks for the business model canvas are customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships & cost structure (Ebinum, 2016).

Out of the 9 segments, I believe that I can complete the value propositions, channels, customer segments, customer relationships, and revenue streams immediately. The company has proven to run successfully for years so some of these segments will be easy to determine based on past outcomes such as revenue streams (fixed rate and pay per product). I have a proper understanding of the value that the new product brings to the customer, I understand how the company will deliver this product to customers, I understand which customers remain to be our target market and which consumers overall we will be delivering to, and I understand what kind of customer relationship the company has and will have in the future.

Key resources, key activities, key partnerships, and cost structure are segments that will need more work before I can finalize the BMC. The resources needed to design, manufacture, and continue to operate the business will need to be determined as well as other activities related to those resources such as how long will manufacturing take and who will we need to leverage for design assistance? Partnerships will be simple once the resources and activities are determined, but cost structure will remain to be the final decision and segment that needs to be worked on.

Prior to this week, I had not considered the customer relationship that the brand will have. I figured that the customer relationship was already determined based on the business's prior dealings but I think this segment could be an area of growth with the new product I am rolling out.

Is the BMC something that businesses do for each new project or solely at the beginning of operations?

-Abby

Hello Everyone!! I hope you are enjoying your week!

As for my product, I am trying to add an additional Doritos line to Frito-Lay. I am trying to add a Dessert line of Doritos. Three flavors to be exact. Milk Chocolate, Rich Caramel, & Sweet Cinnamon. For this particular BMC or Business Model Canvas, the 3 segments that I am pretty much already set on are the key activities, value propositions, and customer relationships.

For the key activities we do not want much to change. We would like to use our same suppliers and distribution channels. When it comes to the value propositions, we do not need to really solve a problem. The main thing we need to work on is winning over the customers. We are trying to attract more females ages 25-50 all while keeping our strong loyal customers of young males and college students. Our objective for the customer relationship segment is to build a stronger relationship with female customers. Once we get marketing to spread the word about our new flavors, I think we will do fairly well.

As for the segments that will need more work is definitely doing a little more research to see how perhaps some of our competitors have done with similar items. This is the channel segment. I also plan on doing a customer survey beforehand to get a sense of how customers might favor the new line. The cost structure and revenue streams are the other segments that I will need to work out. This will take some more research and crunching numbers with my CFO/accounting team. As much marketing and social media we are going to do to advertise, I do not want to go overboard if they dont do well and then we will have all these packs left we would lose some money on because we would have to sell them at a cheaper price in the stores to get them sold. We also do not want to sell out so fast and leave customers unhappy and lose out on that money. It is definitely going to be a guessing game. A risky, expensive one, but much worth it.

After looking over the BMC Model, I pretty much knew what all needed to be considered, it is just getting that information is what is going to be my challenge. Figuring the cost of the additional bags along with the dessert seasonings/toppings. The chocolate, caramel, and cinnamon. We would have to either purchase the toppings already made to dip the chips in or decide if we want to make our own recipes. We would need to figure out which one would be most cost efficient for us. This would fall more in the key partners segment. I also want to make sure we get out enough advertising prior to bringing them out in stores. We have a plan but we need to make sure we dont go bankrupt bringing out this new line.

-April