ISSN 0798 1015

Vol. 41 (Issue 07) Year 2020. Page 16

Design of a business model based on Canvas method for the marketing of Smoothie Bowls in the Guayaquil’s city (Ecuador)

Diseño de un modelo de negocio basado en el método Canvas para la comercialización de Smoothie Bowls en la ciudad de Guayaquil

DUQUE ALDAZ, Francisco J. 1; PÉREZ BENÍTEZ, Hugo A. 2; FIERRO AGUILAR, Jaime P. 3 & PAZAN GÓMEZ, Emma G. 4

Received: 18/10/2019 • Approved: 17/02/2020 • Published 05/03/2020

Contents

1. Introduction

2. Methodology

3. Results

4. Conclusions

Bibliographic References

1. Introduction

This research was born such as a college undertaking project to propose an innovative business alternative in the city, and can minimize the risk of failure in the microenterprise. It is part of the need to develop a culture of innovation and entrepreneurship in young graduates and they can carry a study out from a more practical point of view; Therefore, the CANVAS method allows us to develop our business model focusing on what our client wants, thinks and feels. (DUQUE Aldaz, PAZAN Gómez, & ÁLVAREZ Vasco, 2018)

The consumption of healthy food more than a necessity is an obligation since day by day illness by consumption bad preparation of food or unhealthy ingredients makes a society with low nutrition levels that cause illness because of poor diet.

This research offers the local market of Guayaquil a healthy and nutritious product capable of maintaining a balance of life with a progressive consumption and through the use of a business tool it is proposed to define the ideas of the business to be created, to identify the factors that surround the market.

Smoothies or also known as ‘soft drinks’ are a great source of hydration, since the main ingredient of this drink so desired are fruits or vegetables; This varies according to your choice. The nutritionist Kimberly Snyder of American nationality was the creator of this shake, this occurred when she observed that there were people who were not attracted to the consumption of fruits and vegetables, calling it “Glowing Green Smoothie”, which was a shake that promised great benefit (EFE, 2017). Smoothies are popularly known for being a beverage with a pleasant flavor, and one of the differentiating characteristics of this beverage with traditional juices is consistency, since, having the main ingredients such as dairy products plus fruit choice; at the time of liquefying the creaminess of the shake takes presence and even turns out to be like an ice cream (Gartzia, 2016). The different and delicious thing about smoothies is that the fruit or dairy is frozen; and at the time of processing it, they use no chemical, since the combination of fruits and certain natural liquids such as whole milk, almonds, coconut or soy will help the smoothie remain natural.

As for the structure of a business, it includes the existence of personnel to carry out administrative and operational activities with their respective resources, where everyone interacts to develop a product or deliver a service (Becerra & Padilla, 2018). The business model terminology encompasses its own concepts and elements that, when linked, find the logic by which a company exists and subsists. (Delgado, 2017).

1.1.  Business Model.

In order to understand what a business model refers to, some conceptualizations of known authors are mentioned, thus having:

According to Linder and Cantrell (2000) an operational business model is the core of a company for the generation of value focused on performance where it declares how it generates utility. Osterwalder, Pigneur, and Tucci (2005) express that a business model is a set of several elements with their respective relationships that allow defining the reason for a business, describing the value proposition for the segments you wish to reach, its establishment, and the partners, to create a profitable and safe environment.

As for Casadesus-Masanell (2004), the business model is a “set of assets, activities and an asset governance structure” (pág. 8). The aforementioned assets are delimited by all those tangible and intangible assets, the infrastructure, machinery as part of the tangible and the competencies of a collaborator, and the service of attention as part of the intangible. At the time the organization executes its activities, the contribution of the partners, customers and their suppliers is involved, to detect the needs imposed by the market, and the activities related to its execution (Amit y Zott, 2009).

Ricart (2009) considers that the content of the model is focused on products, resources and information, mentions that the structure of the model is backed by the human part, its relationships and the knowledge to operate the model which will allow to have a transaction governance where key resources, information fluctuations and all legal instances present in its execution can be controlled. Finally, Osterwalder and Pigneur (2010) define that the business model details guidelines where organizations focus the value proposition on their creations. The bases of the business model are focused on the delimitation of the good or service to be offered and the resources required for them, besides the activities that the actors of the model must execute for its operation, and the different tools that the organization has to develop to ensure stable permanence in the market.

That is to say, the business model is a scheme that the organization takes on to carry out its business activity where the proportion of value to the client is designed; making this main actor can perceive it and meet its need. The meeting point in which a business model finds its balance includes the relationship with the customer, the value proposition; and the method to get benefits for it (Aguilar and Sánchez, 2018).

1.2. Canvas of Value

The canvas of the value proposition is a graphic representation created by Osterwalder and Pigneur which comprises 6 sections divided into 3 stages focused on Observe, Design and Validate (Corral, 2015). Within these stages, the customer profile, the value map, and the fit of both variants are defined.

First stage: Observe (Customer Profile)

This stage focuses on the definition of those negative, positive and current characteristics that the client faces when solving a problem or meeting a specific need. Customer work, joys, and frustrations are defined.

Second Stage: Design (Value Map)

The second stage provides the design of the valuation proposal that the company intends to deliver; Therefore, it is important to know exactly the thinking and requirements of a client; to deliver value in a precise way. The product to be offered, they define the creators of joys and the alleviators of frustrations

Third Stage: Validate (Value Canvas Lace)

The most important and decisive stage of the Canvas; is to ensure that both the customer profile and the value map can fit; to deliver the real value and for which the customer would pay.

The full representation of the canvas is as follows:

Figure  1
Canvas of Value

Source: (Herrera, 2018)

1.3. The Canvas Model and its Structure

The Canvas method or also known as Business Model Canvas was born as part of the doctoral thesis project of Osterwalder Alex under the guidance of Yves Pigneur in 2010; later, Osterwalder uploaded his project to the network which was very popular (Campos, 2016). Within this model, the basic and specific needs that a client seeks to meet are determined, where he has economic resources and can acquire what is offered by the company that could detect that need.

Chesbrough and Rosembloom (2002) mention that the functions of the business model should: design the value proposition, find market segmentation, establish the value chain that allows the company to position itself through the formulation of competitive advantages, and specify revenue generation by estimating the cost structure and profit.

That is why, so that a business model becomes profitable; this should have a complete and comprehensive vision of what the market really needs and thus become a company with a reliable position, backed by innovation.

Osterwalder y Pigneur (2010) in their book Generating Business Models, conclude that the best way to structure a business model is in the identification of 9 fundamental modules that express the activities to follow of an organization to achieve its desired profitability. The realization of a Canvas model helps organizations to save on the investment of certain resources, since it allows to develop a structure that defines and detect the business opportunities that can be satisfied in a market (Quezada-Sarmiento and Mengual-Andrés, 2018).

We focus the areas present in the schematization of a Canvas business model on supply, customer, infrastructure and economic profitability. They summarize these 4 components divided into 9 modules of the Canvas model:

Table 1
Canvas business model composition

Source: Adaptation (Osterwalder, 2004)

It can be seen it in table 1, that the 9 modules of the Canvas business model encompass 4 important components within a market; the offer determines what they will deliver either a product or service and what makes it unique in the face of competition; the customer is delimited by the segmentation and activities that have to be carried out to deliver the offer, the infrastructure is the establishment of resources, tangible and intangible, and those material and intellectual resources to be executed for the business to operate and finally, every business seeks to generate financial profitability, which is why the costs and revenue streams that the organization will have will be established.

This tool allows the creation of an effective model to validate its viability, which, besides generating economic profitability, will identify the subjects present in the business. At the time of making the Canvas, you must answer 4 basic questions that reflect 4 fundamental areas that make up the formation of the business model.

These questions are:

Table 2
Basic Canvas business model questions:

Source: Own Elaboration

In Table 2, we can see that the Canvas's own schematization begins to shape on the basis of the questions raised, so that at the time of answering each question the 9 components of the Canvas method can be completely structured.

The graphic representation of the Canvas business model is represented as follows:

Figure  2
Canvas business
model structure

Source: Adaptation (Relayeur, 2015)

In (figure 2) the 9 modules that make up the Canvas business model can be seen, it is structured by: value proposition, customer segment, channels, customer relationship, income flow, key resources, key activities, key partners and cost structure.

Value Proposal

The value proposal is the combination of those goods whether products or services that an organization offers to its potential customers in order to connect interests of both the company and the market; through which the client seeks to meet their needs and the company remunerates the required good.(Mejía, 2003)

The value proposal is defined by the products or services that meet the needs of the segmented market. The benefits established in a product or services can be defined by quantitative variables, such as price, waiting time; and qualitative variables focused on the aesthetics of a good. (Osterwalder and Pigneur, 2010) That is, business opportunities with high standards manage to add value significantly to the final consumer (Cervilla de Olivieri, 2009).

Customer Segment

Segmentation is understood as the task of grouping certain individuals and then regrouping them by specific needs that they seek to meet, the characteristics and behavioral actions of a sought need are defined. Each segment will act differently; hence, it is clear the importance of deriving the business to a segmentation of suitable clients, since, if the market is not identified correctly, the business could lose its direction towards the market in which it seeks to position itself (Lazzari, 1999). Schiffman and Kanuk (2010) conclude that a correct segmentation provides a practical and successful structuring to achieve positioning within a market.

Channels

The company must establish its communication, distribution and sales channels since the correct definition of these will help the client to know the path by which he must resort to obtain his value proposition in the good delivered (Osterwalder and Pigneur, 2010).

Customer Relationship

The company must define what type of relationship it wants to maintain with its client, since these may vary in terms of customization or automation. The purpose of establishing a specific relationship allows the company to achieve its customers (Sánchez Guerrero y Arellano Gónzalez, 2017).

Income flows

This module details all sources of income that the client has to cancel for the value proposal received. The monetary amounts that the segment or segments are willing to cancel for the offer are identified (Banchieri, Blasco, y Campa-Planas, 2013).

Key Resources

The key resources are necessary to deliver the offer of value, these can be divided into intellectual, material, human or technological resources. The key resources are the result of the identification of the channels, the relationship and the sources of income; managing to break down resources more easily. (Campos Moreno, 2012)

Key Activities

Those key activities that the organization executes for the subsistence of the model are defined. These key activities will be encompassed by the delivery of value, resources, the market segment, the way income is perceived; as well as the relationship with the client. (Osterwalder y Pigneur, 2010).

Key Partners

The key partners are defined by those associations of agents external to the organization with the purpose of alliance resources that allow to reach the client with their respective value proposition. It is vitally important that these alliances strengthen organizations in order to remain in the market. (Banchieri, Blasco, y Campa-Planas, 2013)

Cost structure

This last module details all the fixed and variable costs that the company must have in order to start its commercial operations. Whether production, purchase or sale activities, at the end of the day, these generate expenses for an organization. (Soto Sánchez, 2014)

To collect the necessary information, surveys were conducted on a population sample of 385 individuals attending gyms and parks to exercise. The surveys consisted of 19 questions that allowed to collect among them; their age, gender, occupation, income, healthy conscience, as well as the recurrent consumption of fruits and smoothies, among others aspects that were included in the questions.

For the analysis of the surveys, the SPSS program was used, which allowed to process the information with greater precision.

Below is the summary in the form of tables of the results obtained for some of the questions asked in the survey.

As you can see from a bivariate analysis, regarding the sex variable, questions were made in order to appreciate the trends and know in which sector the product had greater acceptance, so that a better penetration campaign can be carried out and product positioning.

Question N° 1
Gender to which it belongs

Question N° 2
How old are you?

Question N° 3
Area in which they live

Question N° 4
What do you do?

Question N° 5
What are the economic income you receive monthly?

Question N° 6
On a scale of 0 to 5 (0 less healthy and 5 healthier)
How much do you care about your health?

Question N° 7
How important do you consider the intake of healthy foods?

Question N° 8
How often do you consume fruits? (Per week)

Question N° 9
How often do you consume fruit
smoothies or juices? (Per week)

Question N° 10
The fruit shakes you usually consume
as you usually prefer? (per week)

Question N° 11
Did you know that a smoothie bowl is a creamy milkshake made with fruits
and milk base, it also has dressings rich in nutrients and vitamins?

Question N° 12

Question N° 13
How innovative do you consider the product
(Smoothie Bowls as an innovative product)?

Question N° 14
Do you consider that the product meets your needs
(Tastes and / or preferences)?

Question N° 15
Do you consider that the product meets your needs
(Tastes and / or preferences)?

Question N° 16
Rate in ascending order the aspects that you
consider decisive when buying a product.

Question N°17
By what means would you like to receive
information about Smoothie Bowls?

Question N° 18
Rate in ascending order the logo that
you think should identify our product.

logos to choose from

Logos of your choice

Value Canvas Desing

Before detailing the 9 modules of the CANVAS Model in its entirety, the Canvas of the Value Proposal was previously made, including: structure selected to collect and identify the real profile of our target customers, their way of thinking, their behavior and what they expect to receive to be satisfied; it also includes establishing the value map where it is defined what we will give to satisfy our potential customers taking into account that we offer our best value proposition.

Figure 3
Smoothie Bowls’s Canvas Design

Ass can be seen in (figure 3) on the right side the profiled characteristics of a client that influence positively and negatively to meet their needs were established; on the left side of the value canvas it can be seen that the solutions to those positive and negative needs are defined with the  product or service that is intended to be proposed; in this case, the smoothie bowl was defined, which we wish to provide, as well as the different characteristics, that distinguish us as entrepreneurship. In order to finally fit this established the 9 modules that will encompass our business.

CANVAS business model design to market the Smoothie Bowls

4. Conclusions

We can conclude that the presentation of a product influences the moment the client wishes to gain a product, since it generates pleasure or disgust to consume; Hence, it is seen the importance of striving to produce and market products with a good image, since the first contact that the consumer has is through visual appreciation and on this depends the intention of acquisition. Likewise, finding a suitable market of the product, allows the client to appreciate the real value of the product and not only qualify it for its price. In this investigation it was observed that the people who attend the gyms would consume these Smoothies, since they consider that it would be the ideal complement for their routine, unlike the people surveyed in parks that showed behaviors of low interest.

Based on the surveys carried out, it can be concluded that there is a slightly better product acceptance by women, therefore, a differentiating strategy should be applied that is aimed at women so that product positioning is achieved. 

It can also be observed that both men and women consider the product very innovative, given that it does not exist in the market, so this competitive advantage must be taken use of.

The market segment that would be happiest to gain the product is represented by people between 18 and 28 years old; the preferred means of communication are the first social networks and then WhatsApp, In addition, it should be taken into account that the people of the northern sector of the city are the ones who most consider the product as innovative, so the advertising campaign should focus on this criteria; on the contrary, the use of flyers can be observed that it should no longer be used.

Therefore, the product should first start with a positioning in the northern sector, and then continue with the other sectors, once it is already accepted and positioned in the consumer's mind; it must take advantage of the word of advertising mouth and place other points of sales in different parts of the city, so that the risk is minimized.

With product marketing, the best way to establish the point of purchase of the Smoothie Bowls is to find a physical location to set our microenterprise and provide an adequate environment where customers are comfortable while enjoying the Creamie Smooth.

Using the CANVAS tool allowed to capture all the ideas of the proposed business; where the 9 basic modules were developed so that the product can start its activities being aware of the activities and processes of the microenterprise.

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1. Mechanical Engineer, Master in Business Administration. Professor at the University of Guayaquil, Faculty of Chemical Engineering, Ecuador. http://orcid.org/0000-0001-9533-1635. Email: francisco.duquea@ug.edu.ec; fjda1972@gmail.com

2. Professor at the University of Guayaquil, Faculty of Chemical Engineering, Ecuador. Email: hugo.perezb@ug.edu.ec

3. Chemical Engineer, Professor at the University of Guayaquil. Faculty of Chemical Engineering, Ecuador. Email: jaime.fierroa@ug.edu.ec

4. Chemical Engineer, Magister in Integrated Systems of Quality, Environment and Safety. Professor at the University of Guayaquil. Faculty of Chemical Engineering, Ecuador. Email: emma.pazang@ug.edu.ec