Creating a Winning Business(MN5W50) - Assignment 2 Workbook: Business Model Canvas - Iteration and Reflection

Cost Related

Revenue Related

Key Partners

Key Partners

Vegan food suppliers: These include suppliers of plant-based proteins, vegetables, fruits, and other ingredients essential for vegan cuisine.

Packaging suppliers: Suppliers of sustainable and eco-friendly packaging materials for food products.

Equipment suppliers: Suppliers of commercial kitchen equipment, such as ovens, grills, and refrigerators.

Marketing and advertising agencies: These agencies can help the company to promote its brand and reach the target audience.

Key Suppliers

Local farmers: The business can collaborate with local farmers who produce organic and sustainable plant-based ingredients.

Bulk food suppliers: These suppliers can provide the company with a variety of vegan ingredients at competitive prices.

Sustainable packaging companies: Companies that offer eco-friendly and recyclable packaging options.

Key resources

The key resources will be high-quality vegan ingredients, marketing and advertising expertise, commercial equipment of kitchen, and sustainable packaging materials.

Key activities

Some of the core activities that will be performed by the partners are supplying vegan ingredients, providing packaging materials, repairing and maintaining equipment, and advertising campaigns.

Key Activities

Key activities

Production will require sourcing and procurement of high-quality vegan ingredients, ensuring food safety, labelling and packaging of food products, and cooking and preparing vegan dishes.

Brand development and positioning, public relations and media outreach, and social media marketing are activities for marketing. Delivery would require operating a food truck, setting up events, and catering for private events.

Channels

• Food truck

• Online ordering platform

• Social media

• Partnerships with local vegan cafes and restaurants

Customer Relationships

• Building strong relationships with customers through excellent customer service

• Loyalty programs and rewards

• Engaging with customers through social media and online reviews

Revenue Streams

• Food sales from the food truck

• Online orders and delivery fees

• Catering services

• Partnerships and sponsorships

Value Propositions

Brief

Vegan By Li is a vegan food truck that offers delicious and affordable plant-based food options where it aims to cater to the growing demand for healthy, sustainable, and cruelty-free food.

Problem Faced

Many people who follow a vegan diet struggle to find convenient, affordable, and tasty vegan food options due to the scarcity of vegan food available in the market.

Proposed Solution

Vegan By Li provides a convenient and accessible way for people to enjoy delicious vegan food by offering a menu with a variety of dishes made with high-quality and plant-based ingredients.

Customer Problems Solved

Vegan By Li will offer a convenient and accessible way to enjoy vegan food that resolves the lack of convenient options of food issue.

The company will offer a diverse menu with a variety of delicious vegan dishes that provide solutions to the limited variety of vegan food problems.

Customer Needs Satisfied

The dishes will be made with plant-based and high-quality ingredients that meet the customer's requirements for nutritious and healthy food.

The dishes will be made available online where customers will be able to order vegan food from the comfort of their homes which will fulfil the convenience need of the customers.

Marketing & Sales Communication

Raising Awareness

• Utilising social media platforms like Instagram, Facebook, and TikTok

• Local Events

• Partnerships

• Content Marketing

Messages and Offers

• Showcasing Health Benefits

• Sustainability Focus

• Taste and Variety

• Convenience and Accessibility

• Special Offers

Reaching Potential Customers

• Targeted Advertising by using platforms like Facebook, Instagram, and Google Ads to reach specific demographics and interests.

• Email Marketing

• Local Partnerships

• Word-of-Mouth

Customer Segments

Vegan By Li is creating value for individuals who:

• Follow a vegan diet or are interested in exploring plant-based options.

• Prioritise health and wellness.

• Seek sustainable and ethical food choices.

• Enjoy delicious and convenient food.

The most important customers are likely to be:

• Young adults and families are increasingly adopting plant-based lifestyles.

• Health-conscious individuals who are seeking healthier alternatives to traditional fast food.

• Office workers and students who need quick and convenient meal options.

Stakeholders Benefiting from Vegan By Li are:

• Customers

• Local Community

• Environment

• Animals

Key Resources

Resources required by Value Propositions, channels, customer relationships, and revenue streams:

• Physical Resources

• Intellectual Resources

• Human Resources

• Financial Resources

Product & Service Delivery Channels

The customers will access the product via food trucks, online ordering, and services of catering.

After-sales support includes feedback from customers, addressing complaints, and refunds and returns.

Marketing communication will direct the customers towards social media, websites, and local partnerships.

Cost Structure

Key Fixed Costs:

• Rent or lease payments for the food truck

• Insurance premiums

• Salaries of full-time employees

• Utility bills

• Equipment maintenance and repairs

Key Variable Costs:

• Food ingredients

• Packaging materials

• Disposable tableware

• Fuel costs

• Marketing and advertising expenses

Expensive Resources and Activities

• Food Ingredients

• Equipment

• Marketing and Advertising

Business Model

Vegan By Li's business model is primarily value-driven as the focus is on providing high-quality and delicious vegan food with a unique customer experience.

Economies of Scale

There is potential for economies of scale in certain areas including purchasing, marketing, and operations.

Revenue Related

Customers of the Vegan By Li are willing to pay for taste, quality, convenience, health, sustainability, and innovative options of the menu.

Customers are currently paying for similar vegan food options at restaurants which charges them higher prices due to the overhead costs and dine-in experience.

At present, customers pay by using credit cards, cash, and mobile payments but their preferred payment methods are mobile online payment platforms and loyalty programs.

The relative contribution of each revenue stream to overall revenue will depend on factors such as food truck sales, online orders and delivery, catering services, and merchandise sales.

Possible strategies of pricing include fixed pricing, variable pricing, subscription pricing, pay-in-advance, and platforms of online payment.

Explain the history behind your idea for resolving the identified business problem:

History Behind the Idea

The business idea was generated by a passionate vegan who was frustrated by the scarcity of delicious and convenient options for vegan food in their local area and decided to launch the food truck. They have conducted market research, analysed the competition, and conducted interviews with potential customers. The interactions with the customers have helped to identify a crucial gap in the market for high-quality and affordable vegan food.

This idea will be successful due to the following reasons:

• Growing demand for vegan food

• Unique value proposition

• Strong market potential

I am the right person to develop this idea because I am passionate about vegan food, I have an entrepreneurial spirit, and I have a broad network of contacts.

Reflection

Reflection is a process of examining an individual’s thoughts, feelings, and experiences to gain insights, learn from mistakes, and improve future actions (Moghaddam et al., 2020). It involves looking back on events, analysing decisions made, and considering alternative approaches for the specific event.

An action learning set is a group of individuals who come together to learn from each other's experiences and challenges.

Action learning sets can be more effective than individual reflection because of shared perspective, collected problem-solving, continuous learning, and accountability.

Assumptions

The main assumptions are regulatory compliance, operational efficiency, customer acceptance, and market demand.

The assumptions will be tested by market research, test marketing, financial modelling, and regulatory review.

Pitch

I have thoroughly researched the topic, developed a compelling story, practised the pitch, and prepared to answer questions to prepare for the pitch about the selected brief.

A compelling value proposition, a strong understanding of the target market and a concise and clear message are some of the things that went well. On the other hand, potential improvement areas include market research depth, financial projections, and the ability to address challenges as these things did not go well.

I have learnt storytelling significance, practising value, audience engagement, and the requirement for flexibility from this experience.

Assumption Testing

I have tested the main assumptions by the strategies of market research, test marketing, regulatory review, competitive analysis, and financial modelling.

The business model canvas for Vegan By Li has been changed and updated to adjust the value proposition, as it could be refined to meet the requirements of the customer feedback.

Comment on your Action Learning Set:

As a group working on real problems, at first, the practice of action learning did face its challenges, including conflicts and disagreements. With time though, the experience has helped me a lot academically and personally. Academically, it has contributed to developing knowledge and improving my skills in several areas. Working with others on various tasks and solving problems has not only helped me build teamwork capabilities and critical thinking, but also build self-awareness in regard to beliefs, assumptions, attitudes, decisions, and own actions, as well as those of others. Experiencing firsthand how others look at a situation or problem has opened my mind to different possibilities and approaches when it comes to tackling an issue. Also, as part of a team, we often exchanged feedback on different aspects of our performance and collaboration. This allowed us to identify our shortcomings and make improvements. Overall, I think, that this contributed significantly to my capabilities.

Iterative Journey:

Feedback from the Brief provider

Based on feedback from the client/employer, it is evident that the proposed solution has adequately resolved their problem. As the client has proclaimed – "We find that the proposed strategy/plan is rational and grounded in reality, supported by evidence, and can be implemented efficiently and effectively". Moreover, the client has acknowledged the team's work, stating, "The students have worked well on this problem, and I can see the efforts of their performance. They have definitely given their all to collect data to inform the future development plan.”

Competitor Insight:

In regards to competition, there are two types of competitors and the business may have to prepare for – direct and indirect competitors. Direct competitors are those that offer the same or similar products/services as the concerned business, to the same target consumer base and via the same channels. On the other hand, indirect competitors are those that may serve the same customer need as the concerned business, but by offering a different product or service (Dovetail, 2024). In this regard, some direct competitors that the company should care about are Happy Maki, Epic Veg Kitchen, Greedy Khao, The Ottö-Men, and Earthlings Edibles, among others (Vegan Food & Living, 2019). On the other hand, indirect competitors include vegan food businesses like restaurants and pubs, such as Plant X, Vege-Me, Toby's Favourites, The Cashewcake Cottage, Viva la Vida, and so on (F6S, 2024). There are also ‘analogues’ like food businesses offering non-vegan food options, which include mainstream businesses like McDonald’s, KFC, and so on. Some of these competitors have also informed ideas regarding the design and product lines, as well as marketing ideas. That said, the business will look to differentiate itself from its competitors, which it is looking to do by improving sourcing and food quality.

Cost & Risks:

The main possible risks in implementing the proposed plan include:

• Potential problems in the partnership with suppliers or supply chain disruptions.

• Negative reviews or scandals affect a brand's reputation and image.

• Customers may feel unsatisfied with the offerings.

• Changes in customer preferences.

The best way to overcome these is by creating prevention and contingency plans, like having a backup supplier, making the supply chain resilient, ensuring positive brand messaging and effective customer service, and keeping up-to-date with happenings in the industry.

Considering the required expenses as outlined in the cost structure, the most suitable funding that has been determined for the venture is business loans, which can be sourced from any government-registered financial institution.

Continuing personal career development: reflection and action plan

Critically reflect on your experience and challenge faced and the abilities you have developed

I have gained quite a few useful experiences from this module, having developed several skills that have helped me with personal and professional development, such as improved critical thinking, teamwork, problem-solving, time management, and so on. To put it into perspective, the STAR approach has been demonstrated below to provide reflective evidence.

Personal action planning:

Based on the previous findings, it can be said that I need to develop my time management and leadership capabilities. To that end, the following is an Action Plan with the required steps to fulfil these objectives.

References

Dovetail (2024) Find your competitors: direct vs. indirect competition. Available at: https://dovetail.com/market-research/direct-competition/#:~:text=Direct%20competition%20refers%20to%20two,your%20customers'%20needs%20and%20goals. (Accessed: 11 September 2024).

F6S (2024) 18 top Vegan companies and startups in United Kingdom in September 2024. Available at: https://www.f6s.com/companies/vegan/united-kingdom/co (Accessed: 11 September 2024).

Moghaddam, R.G., Davoudi, M., Adel, S.M.R. and Amirian, S.M.R. (2020) Reflective teaching through journal writing: A study on EFL teachers’ reflection-for-action, reflection-in-action, and reflection-on-action. English Teaching and Learning, 44(3), pp.277-296.

Vegan Food & Living (2019)The best vegan food trucks and stalls from around the UK. Available at: https://www.veganfoodandliving.com/features/the-best-vegan-food-trucks-from-around-the-uk/ (Accessed: 11 September 2024).

List your MAIN assumptions (No more than 3)

How did you test the assumption? (E.g. Give details of who was approached; how many; how you contacted them. OR any partners contacted).

Summarise the results of testing. (E,g, % of people liking your product/service; any positive and/or negative comments etc.)

Market Demand

Conducted surveys, focus groups, and social media polls with potential customers.

Positive results: High interest in vegan food, especially among younger generations and health-conscious individuals.

Operational efficiency

Developed a detailed operational plan that includes staffing, inventory management, and cost control strategies.

Positive results: The business model was found to be feasible and profitable, with potential for economies of scale.

Customer acceptance

Conducted market research to assess customer willingness to pay and analysed pricing strategies of competitors.

Mixed results: Some customers were willing to pay a premium for high-quality ingredients and unique Flavors, while others were more price-sensitive.