Discuss about the Business Model based on the launching of the novelty Cafe.
The report consists of the setting up of the business model canvas that is based on the launching of the novelty café. The budget of the setting up the café is high. The total amount of investment of setting up the café is ten thousand dollars. The café is set up in Melbourne in Australia. The café follows the business model canvas. This includes the aspects like the key partnership required in the café. The other aspects are key activities, value propositions, key resources, the relationships with the customers, the channels through which the advertisement can be done. It also includes the revenue streams, cost structures and the customer segments.
The café is set for not only for the humans but it is designed for the pets of the people as well. The unique concept is designed with the aim of giving the pleasure of having food with the pets as well. In the café and the restaurant the pets are usually not allowed. This café is built in such a way that the people can bring their dogs along with them.
There are three partners or the stakeholders of the café. The café holders are the investors of the café. The three partners have equal share in the café and the profit is divided into the three partners. This includes their suppliers, franchisee holders and distributors (Leschke, 2013).
The key activities include the planning of the setting up of a good interior of the café. A place needs to be set in the café which is suitable for the humans as well as the dogs. The setting of the cuisine which is suitable for the humans as well as the dogs should be included in the strategy (Leschke, 2013).
The key resource for the novelty café is the financial resources, the construction material required for the café. It further includes some good cooks who know to cook all types of cuisines that are required in a café. It also requires the setting up of cuisine which is suitable for dogs as well. It includes the further resources like the solving of the legal matters like the issue of the license that is needed for the setting up the café. The café needs resources like the sitting arrangement of the dogs and the arrangement of special activities for the dogs (Voigt, Buliga & Michl, 2016).
To have a customer segment it is essential for the café to have a distribution channel. This will include the walk-in customer, catering company. The walk-in customer of the café will include the flying customers. The unique feature of the café will increase the walk-in customers of the café. The café needs to form strategy to supply the corporate breakfast. This will let the café have some value brand recognition (Voigt, Buliga & Michl, 2016).
For the walk-in customers of the café shop it is required for them to focus on the type of coffee, on the machine, on the skill of the barista, the hospitality should be offered towards the dogs of the owners as well and some special activities should be planned. The special activities like some games and there should be a special activity area for the dogs. The cuisine should have some special dish of bones for the dogs (Traganos, et al., 2015).
The café needs to be more just providing a way of getting the product to the customer through the value distribution channel. It includes the advertisement of the café through the marketing channel and to keep a potential touch with the customers after the sale (Matsumae, & Burrow, 2016).
The café should be able to win the new customers ad they should be able to keep the existing ones. The café should provide the customers with proper hospitality. Since the café allows the individuals to bring their dogs in the café they must treat the dogs important and they should lend good behavior to the dogs of the owners as well (Martins, Rindova & Greenbaum, 2015).
This includes the café must monetize the business. It should be done in certain ways like the use of heap of pricing models from the fixed price, or through auctions, to volume discounts and the demand sensitive pricing. The café must go beyond the cost of a cup of coffee to consider afternoon specials, loyalty reward programs, special discounts for the dogs, the renting out of the machines (Leschke, 2013).
The cost structure of the café includes the price driven factor which includes the competition on price with the rival cafes. The café wants to keep the price of the menu lower than the other cafes so that they can attract more customers. It also includes the value driven cost. It includes the concentration of the non price factors such as the brand, service, quality and uniqueness (Ferro, et al., 2017)
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Leschke, J. (2013). Business model mapping: A new tool to encourage entrepreneurial activity and accelerate new venture creation. Journal of Marketing Development and Competitiveness, 7(1), 18-26.
Martins, L. L., Rindova, V. P., & Greenbaum, B. E. (2015). Unlocking the hidden value of concepts: a cognitive approach to business model innovation. Strategic Entrepreneurship Journal, 9(1), 99-117.
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Traganos, K., Grefen, P. W. P. J., den Hollander, A., Turetken, O., & Eshuis, R. (2015). Business model prototyping for intelligent transport systems: a service-dominant approach. Beta Wroking Papers, Eindhoven University of Technology.
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