BUS 400 Milestone Two

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Southern New Hampshire University *

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400

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Business

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Nov 24, 2024

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pptx

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Uploaded by Barbara8289

BUS 400 Milestone Two Template Business Model Canvas Company: Chewy Last updated : 1 st October 2023

Unique Value Proposition Chewy's fresh/raw food for pets is unique in the following ways: • It is delivered directly to customers' doors, which is convenient and saves them time. • It is made with high-quality, human-grade ingredients. • It is tailored to the individual needs of each pet, taking into account their age, breed, and health conditions. • It is frozen to lock in freshness and nutrients. How does it provide a strategic advantage in the marketplace? • Chewy's fresh/raw food for pets provides a strategic advantage in the marketplace in the following ways: • It is a premium product that is not widely available. • It is backed by Chewy's reputation for excellent customer service. • It is differentiated from other fresh/raw pet food products on the market by its convenience and its focus on customization.

1: Key Business Model Questions: The Customer 1. How do you acquire customers? Through Online, Social Media, Televised and Email Advertising and Partnerships with Vets and pet stores 2. How do you deliver the product/service to the customer? Online ordering, apps, local vendors 3. After you have landed a new customer, how do you plan to relate to that customer and manage the relationship (if at all)? We currently operate a 24/7 call center, with the new lines we will be training our reps within these products.

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1(a): Key Business Model Questions: The Customer, Continued 1. How will we charge our customers? What is your revenue model? Chewy will generate revenue from the sale of its fresh/raw food products. 2. How will you charge customers? There are several things that come into consideration when reviewing pricing: 1. Type of food, 2. Size of the pet, 3. Amount of food ordered 3. Our Key activities for Value Proposition. 1. Source High-quality ingredients, 2. Equipment to prepare and freeze the food 3. Better ways to ship/deliver the food 4. Maintain our customer service.

2: Key Business Model Questions: Assets, Partners, and Cost 1. What assets are available to you or under your control? 1. Warehouse, 2. Delivery vehicles, 3. Customer service team 2. Who are your key partners? 1. Ingredient suppliers 2. Packaging suppliers 3. Shipping and delivery partners 4. Customer service software providers 5. Technology Developers 1. What are your cost structures? What will you need to pay for in order to create the product/service? 1. Cost of ingredients 2. Cost of packaging 3. Shipping and delivery costs 4. Customer service costs

3: Create Your Own Business Model Canvas Chart Key Partners • Local farmers and suppliers for fresh produce sourcing • Delivery and logistics partners for fast order fulfillment • Payment gateways for safe transactions • Collaboration with marketing and advertising partners to reach a larger audience Key Activities • Sourcing and acquiring fresh and raw food items • Inventory management to assure product freshness • App and website development and maintenance • Efficient order fulfillment and delivery logistics • Food safety and quality Key Resources • Skilled procurement staff • Technological infrastructure for app and website • Delivery vehicle fleet • Relationships with local suppliers and farmers • Trained customer service representatives in the knowledge that Value Proposition • Convenience: We provide consumers with the option of obtaining fresh and raw food items immediately, avoiding potential spoilage with delayed deliveries. • Quality Assurance: Customers can trust us to provide high-quality, fresh, and raw food products. • Health and Nutrition: We cater to health-conscious pet owners by providing a diverse selection of fresh and raw products tailored to their pet needs. Customer Relationship • Health-conscious pet owners • Pets with strict dietary requirements • Busy owners in need of convenient solutions Channels • Online ordering platform and smartphone app • Order fulfillment fleet • Partnerships with local vendors and farmers for obtaining fresh products and shipping/delivery options Customer Segments • Easy-to-use app for ordering and tracking • Customer service for questions and issue solutions • Loyalty program to retain and reward repeat customers Cost Structure • Purchase and supply chain costs • Expenses for technology development and maintenance • Employee pay and benefits • Marketing and promotion costs • Transportation and logistical fees • Food safety and quality control procedures Revenue Streams • Customer product sales income • Delivery charges based on order size or distance • Subscription model for premium features or advantages • Collaborations and promotional agreements with restaurants or chefs • Advertising money from in-app marketing

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4: Consider Your Business Model • Based on the BMC chart, why does it make sense to proceed with this new product/service? It does make sense to continue with this product, with market research, we can determine the size of the market for Fresh/Raw food, as well as the availability of the products needed • What are the risks to your business model? Launching a new product/service within an already existing market is always risky, with the correct marketing and the shipping availability it will create a closer customer network. • Are there things that can or should be changed to strengthen the business model to reduce its risk? Better research into suppliers and a more local instant option

Clarify Your Business Model Assumptions Check each response in your previous BMC chart against the following criterion: • How do you know that what you wrote in each block is true? Have you made an assumption, or do you have solid evidence in the form of documented facts (based on research)? Using the table on the next slide, list your assumptions and fill in the relevant information as follows: – Where you have facts, write the evidence in the “Fact” column. – Where you have made assumptions, place an X in the “Assumption” column. The table will help you identify where more research is still needed to address your assumptions.

5: Clarify Your Business Model Assumptions BMC Chart Item in Question This Is a Fact. Here Is My Evidence: This Is an Assumption Value proposition Currently has 20.4 million customers without the Fresh/Raw food options Chewy, inc. - investor relations. (n.d.). https://investor.chewy.com/overview/default.aspx Channels There are currently 14 distribution centers across the US Locations: Chewy inc.. Our Locations | Chewy, Inc. Careers. (2023, September 20). https://careers.chewy.com/us/en/locations Cost Structure X Revenue X

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6: Preparing to Meet Customers: Materials and Sales Process • Create a checklist of the materials you will need for your customers from the points below by highlighting the items that apply. (Note: not all may apply.) Add materials as needed. Please include the necessary items in your updated BMC chart. • Sales Materials • Website • Customer presentation • Marketing planning • Samples of our fresh/raw food • More information about the benefits. • Answers to FAQ • Sales Process Descriptions • Acquisition of Fresh/Raw food customers • Technological advances with apps • Pricing Options

7: Update Your Documentation [Create your positioning statement using the following template bullets. Note: These are typical funding questions. ] • The product/service is targeted to… The targeted segment for Chewy's fresh/raw food service is health-conscious pet owners who are looking for a premium product that is convenient and tailored to their pet's individual needs. • The type of value our product/service delivers is… The ability to have the convenience of a grocery store without the hassle, the quality and the customization • Our product/service is unlike others because… It takes the stress out of pet food shopping by: • It is delivered directly to customers' doors • It is made with high-quality, human-grade ingredients • It is tailored to the individual needs of each pet • It is frozen to lock in freshness and nutrients

9: Updated Business Model Canvas Chart Key Partners  Ingredient suppliers  Packaging suppliers  Shipping and delivery partners  Customer service software providers  Veterinary offices  Pet stores Key Activities • Sourcing high-quality ingredients • Preparing and freezing the food • Packaging and shipping the food • Providing customer service • Shipping and delivery partners • Customer service software providers Key Resources • Warehouse • Delivery vehicles • Customer service team • Ingredient suppliers • Packaging suppliers • Shipping and delivery partners • Customer service software providers Value Proposition • Convenient: The food is delivered directly to customers' doors. • High-quality: The food is made with high- quality, human-grade ingredients. • Tailored: The food is tailored to the individual needs of each pet. Customer Relationship • Personalized customer service • Loyalty program • Educational content about fresh/raw food and pet health Channels • Website • Mobile app • Customer service team • Veterinary offices • Pet stores Customer Segments • Health-conscious pet owners who are looking for a premium product that is convenient and tailored to their pet's individual needs. Cost Structure  Cost of ingredients  Cost of packaging  Shipping and delivery costs  Customer service costs  Marketing and advertising Revenue Streams • Product sales • Delivery charges • Subscription fees

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10: References The 20 minute business plan: Business Model Canvas Made Easy . Alex Cowan. (2022, October 28). https://www.alexandercowan.com/business-model-canvas-templates/ About Chewy.com. (n.d.). https://www.chewy.com/app/content/about-us Chewy, inc. - investor relations. (n.d.). https://investor.chewy.com/overview/default.aspx Gale Business. (n.d.). https://link.gale.com/apps/profile/Company/CHQDHI286147744/GBIB? u=nhc_main&sid=bookmark-GBIB Locations: Chewy inc.. Our Locations | Chewy, Inc. Careers. (2023, September 20). https://careers.chewy.com/us/en/locations News details . Chewy, Inc. - Chewy Expands into Pet Insurance, Partners with Trupanion. (n.d.). https://investor.chewy.com/news-and-events/news/news-details/2021/Chewy-Expands-into-Pet-Insurance-Partners-with- Trupanion/default.aspx Pereira, D. (2023, April 14). Chewy business model . Business Model Analyst. https://businessmodelanalyst.com/chewy- business-model/

BUS 400 Milestone Two

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