Business Model Canvas
Customer Segment
The market to focus on is a niche market that is usually not targeted in the ice cream industry; workers aged the mid-20s to 30s with medium to high income who live in New York City and go to an ice cream shop occasionally. They put the value on high quality rather than a lower price. They consider vanilla flavor as an option when choosing an ice cream, but often choose other flavors.
Value Propositions
The value propositions are largely divided into two types and they are intertwined: the product itself and service.“letting customers realize the value of vanilla ice cream.” Since some of the users I interviewed mentioned that they choose other flavors because they feel it’s a waste of money to pay for vanilla ice cream; A vanilla flavor is believed simple and predictable as no other fancy ingredients are mixed, so it’s not worth money. However, interviews revealed that the tendency to buy vanilla flavor goes up when vanilla beans are used. Vanilla beans give the impression of being luxurious and high-quality. Therefore, “educating customers more about vanilla beans” such as the difference of types or how they grow will enhance the value of vanilla customers’ percept. In order to educate customers effectively, vanilla sommeliers serve customers and go along with their journey to find the best-suited vanilla flavor for each of them. It will bring customers happiness of being cared about as an individual and a new experience that lets them think about vanilla deeply for the first time.
Having only vanilla ice creams reduces the risk of getting disappointed in the choice of flavors. Ice creams shops usually have many kinds of flavors mixing some ingredients to make their products unique. Customers sometimes get disappointed in their taste. Our products never let customers feel like that.
My ice creams remove the pain-point of customers who has specific preferences for vanilla ice creams such as vegan, non-sugar, non-egg, non-dairy, or non-churn. Even though those products started to be recognized and some ice cream shops are making them, the taste is inferior to regular ice cream in terms of richness or sweetness.
Customer Relationships
Customers expect us to be a place to come back after a journey. Users I interviewed explained this idea with some examples; although women try to get a fancy nail design for a certain period, they come back to a simple one-color design at the end. Likewise, rainbow-colored bagels disappeared now and people eat plain bagels. Unique fashion styles attract people for one season, but there are some basic styles people appreciate at any age. People look for something unique and show their curiosity, but what they really appreciate is always “basic.” My business will be a place to come back and realize the beauty of simplicity after trying many crazy unique flavors.
Trust between customers is also key in terms of two aspects: quality and experience. Whenever customers come to JUST VANILLA store, serving the best vanilla ice creams and personal service is the mission. Customers feel safe even if they have an allergy to dairy or are vegetarian, we’d like to deliver happiness to customers through the whole experience related to my products, so building trust with them is necessary.
Channels
Products are purchased at a brick-and-motor store. The store will be in a neighborhood where the bars and restaurants are located our target audiences usually go. Customers can buy ice creams with a cone or cup (selling a pint for take-home will be considered as scaling up).
Advertisement will not be done extensively to keep the image of the brand. Instagram account will work as the in-house marketing.
Key activities
Making vanilla ice creams with the original receipts is the most important activity to deliver value to customers. In terms of the experience at the store, educating customers about vanilla ice creams is what differentiates JUST VANILLA from other ice cream shops. Through the interaction with vanilla sommeliers and careful services by them, customers will dive into the world of vanilla.
Key Resources
A brick-and-motor store is the distribution channel to reach customers. The interior will be designed simple and sophisticated with white color so customers immerse themselves in the world of premium vanilla ice creams.
Original recipes of high-quality vanilla ice cream and ingredients to make ice cream are the basis of value propositions because products made based on them are what the customers enjoy, and they are used to educate customers about vanilla.
Vanilla sommeliers who are passionate about vanilla ice creams and trained in-house enhance the educational and loyal aspect of the business. Besides, they create brand loyalty, which is the key so customers associate the idea of vanilla ice creams and JUST VANILLA as many people link “ice cream” and “Haagen-Dazs” or “Ben&Jerry’s.”
Key Partners
Suppliers of high-quality ingredients for ice creams are the main partners. Especially selected vanilla farmers and dealers change the quality of products, so trust needs to be built with them.
Cost Structure
Costs are largely divided into two categories.
Fixed costs are the main expenses: rent, utility fees, equipments, and salaries ($4,320 per week x 50 weeks = $216,000 annually $216,000 + $300,000 as my annual salary = $516,000).
Variable costs are ingredients (each scoop costs about $1 because one pint costs around $4 which contains 4 scoops), disposable items (one cup costs $0.41 on average, mini spoon costs $0.10), and manufacturing costs.
Revenue Streams
The revenue model is a transactional revenue model, so revenue is raised by each purchase of a unit. Given the margin is 25% and the cost of one scoop of ready-to-serve ice cream is $1.50, then the retail price is $6 per scoop. Meaning, $4.50 of revenue will be generated every time a customer purchases a scoop of ice cream.