Business Model Canvas (BMC)- A new venture concept
Deloitte Case Competition - Finalist
1.
2. AGENDA
1. Changing Marketing MIX and Targeting Consumer Base
2. Streamlining Supply Chain
3. Implementing ERP and e-Commerce technology via Infor
4. Changing organizational structure with outside HR firm
3. PROBLEM
MAD HATS needs to change its organizational structure on the
business and IT levels in order to synchronize operations in
anticipation of sustained growth in future years.
1 . M A S S A C H U S E T T S I N S T I T U T E O F T E C H N O L O G Y A L U M N I
5. PROMOTION
CONSUMER – MAGAZINE ADS
• Target Consumer Base 28 – 48 years of age
• Advertisement price is $141k/ month
• Rate Base of an advertisement for international National
Geographic is 965,000
• Spread the Good News
2 . N A T I O N A L G E O G R A P H I C M A G A Z I N E
6. PROMOTION:
CONSUMERS - YOUTUBE
• Consumer base is 18 – 48 years of age
• Operators of YouTube channels receive hats and other apparel
from our product line to give to channel subscribers/video
viewers
• Ex. Ricky Shucks & KevJumba
3 . Y O U T U B E
7. PRICING & DISTRIBUTION CHANNEL
STRATEGY
• Medium to High Pricing ($$ - $$$)
- Justification: Quality Products and Doing a Good Cause
• Priced at premium on Adult Quality Casual Wear
• Priced relatively similar to competitors on Athletic Wear
• Increased Distribution Channels
- Amazon Online, Company Website (e-Commerce)
- Amazon Mobile, PayPal Mobile (m-Commerce)
- Retail Stores
4. Fontmeme
5. Ruleyork
8. SUPPLY CHAIN MANAGEMENT
• Ceasing manufacturing in Nigeria
• Moving operations from China to
Indonesia
• RFID integration to track materials,
inventory, etc.
• More Vertically integrated rather than
horizontally
6 . S M A R T K I P S
9. IMPLEMENTING INFOR (ERP SYSTEM)
TECHNOLOGY
• Use Infor products for ERP and eCommerce
• Infor has much experience with retailers in fashion
• M3 includes
• Customer sales and service
• Enterprise Asset Management
• Supply Chain Management
• Manufacturing operations
• Financial Management
• Technology
7 . C I L I P
10. IMPLEMENTING INFOR
• eCommerce is all about the customer
• Allow ease of product browsing
• Interface customer information
• Live chat help
• Real time available to promise information to maximize
transparency to customers
• Enables search engine optimization (SEO)
8 . Z I P P Y C A R T
11. ORGANIZATIONAL STRUCTURE
-HUMAN CAPITAL-
• The president has limited work experience
• The president will continue to hold decision -making power,
however there needs to be a majority 3/5 vote in order for her
decision to go through.
• Outside HR firm would evaluate jobs in firm
• Retraining will be done on a need basis
9 . B A R R Y - O V E R S T R E E T
12. PROJECTED FINANCIALS ( NEXT 5 YEARS)
Expenses
-YouTube Promotion
$300 per year
-Magazine Advertisements
$423,000 per year
- Infor ERP System
$525,000
- Infor e-Commerce
$420,000
13. PROJECTED FINANCIALS ( NEXT 5 YEARS)
• Estimated Growth of 30% per year
• 2012 Rev. will exceed 11 M and expected to hit 14 M in 2013.
• 2012 Gross Profit will hit 3.6 M and increase to 4.6 M in 2013.
• By 2017, expected to Grow to a 2.3 million in net income and 42.6 million in
Revenue
• Revenue, Gross Profit and Net Income continue to increase !
14. BIBLIOGRAPHY
Benson, Daryl. "NIKE: Managing Ethical Missteps--Sweatshops to leadership in Employment Practices.“
“Deloitte Case Competition Exhibits” Exhibit 1 to 11.
“ Infor e-Commerce” http://www.infor.com/content/brochures/ecommerce.pdf/
“Smartphone Users Around the World…. Facts” <http://www.go-gulf.com/blog/smartphone/>
Waterman, Justice. “IBIS World Industry Report: E-Commerce & Online Auctions in the U.S.”
http://www.infor.com/
http://amazon.com/
http://www.startgrp.com/
http://www.paypal.com/home
http://www.amazon.com/
http://cool.conservation-us.org/coolaic/sg/bpg/annual/v11/bp11-33.html
http://shop.nationalgeographic.com
http://www.lids.com
http;//www.dickssportinggoods.com
http://www.gap.com
http://www.macy.com
http://www.eastpak.com
http://www.gore-tex.com/remote/Satellite/home
http://www.jcpenney.com
http://www.infor.com/product_summary/erp/m3/
http://www,nationalgeographic.com/mediakit/pdf/ng-magazine/Rates.pdf
