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BUSINESS CANVAS MODEL: A SIMPLE TOOL FOR UNDERSTANDING YOUR BUSINESS

The business model canvas is a visual tool that helps you describe, understand, and design your business model. It is a single page with nine building blocks that represent the essential elements of your business.

The nine building blocks of the business model canvas are:

1. Customer Segments:Understanding your customers is crucial. Segment your target audience based on factors such as demographics, psychographics, behaviours, and needs.

2. Value Propositions:Clearly define what sets your product or service apart from the competition.Focus on the benefits and solutions you offer to your customer segments.

3. Channels:Determine how you will reach your customers and how they prefer to interact with your business.Channels can include physical stores, e-commerce websites, social media, or a combination of these.

4. Customer Relationships:Describe the type of relationships you want to establish with your customers.This can range from personal assistance for high-end products to automated self-service for online services.

5. Revenue Streams:Clearly outline how your business will make money. Consider various pricing models and revenue sources.

6. Key Resources:Identify the critical assets and resources your business needs to operate successfully.This could include equipment, technology, skilled staff, or intellectual property.

7. Key Activities:List the essential tasks your business must perform to deliver value and maintain operations.This could include product development, marketing, or customer support.

8. Key Partnerships:Consider collaborations or partnerships that can help your business operate efficiently or access new markets.

9. Cost Structure:Identify all costs associated with running your business.Differentiate between fixed costs (e.g., rent) and variable costs (e.g., raw materials).

The business model canvas is a versatile tool that empowers you to:

  • Grasp your existing business model: By visually mapping out the business, it can gain a comprehensive understanding of its workings and identify areas for enhancement.
  • Create a new business model: Whetherlaunching a startup or seeking to revamp your current model, the canvas allows you to visualize your ideas and gather valuable feedback.
  • Test and refine your business model: With its flexibility, the canvas enables you to experiment and make iterative improvements to your model as you gather insights about your customers and the market.

The business model canvas is a valuable tool that can help to understand, design, and improve your business model.

LAKME BUSINESS CANVAS MODEL

Lakme is a renowned Indian cosmetics and beauty brand with a history dating back to 1952. As a subsidiary of the Tata Group, it offers a wide range of makeup and skincare products, collaborates with top fashion designers, and hosts the Lakme Fashion Week, cementing its status as a leader in India’s beauty industry. Lakme has a strong market presence, a diverse customer base, and a history of innovation, with a commitment to sustainability and eco-friendly practices in response to evolving consumer preferences.

(Source: https://www.freepik.com/search?format=search&query=lakme)

Business Model:

Key partnership:

  • Direct sales distribution
  • Franchise
  • E-Commerce
  • Beauty Salons
  • Advertising Agencies

Key Activities:

  • Product Development
  • Customer Service through channels
  • Marketing and sales
  • Direct sales distribution
  • Franchise
  • E-Commerce
  • Beauty Salons
  • Advertising Agencies

Key Resources:

  • Distribution network
  • Customer data
  • Manufacturing Facilities

Value Propositions:

  • High-Quality Products
  • Wide range of products
  • Innovative Products
  • Convenient shopping experience

Customer Relationships:

  • Maintaining close relationships
  • Giving discounts & rewards
  • Loyalty

Customer segments:

  • Targeting young and Urban women
  • Women who are into fashion
  • Indian women

Cost structure:

  • Cost of Goods sold
  • Marketing and Advertising
  • Sales and Distribution costs

Lakme is a successful cosmetics brand that has been able to grow and expand its operations over the years. The brand has a strong understanding of its target market and has been able to develop products and marketing campaigns that appeal to Indian women. Lakme is also a pioneer in the Indian cosmetics industry and has been at the forefront of innovation. The brand is well-positioned to continue to grow and succeed in the years to come.Lakme’s focus on innovation has helped the brand to stay ahead of the competition.The brand’s strong association with fashion and beauty has helped to make it a popular choice among Indian women.Lakme’s expansion into other countries has helped to grow the brand’s reach and revenue.The brand’s commitment to quality and customer service has helped to build a loyal customer base.This write-up is based on my secondary research.

Priyanka

PGDM (Marketing)

PISM -Bangalore [Powered by Sunstone]

Digital Marketing Career Aspirant

Email: [email protected]

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