Basics of Management 3-4 PDF

Basics of Management 3-4 Value proposition Empathy map Mészáros Ágnes Anna 24-25 1 REMINDER mission and vision statement 9 elements of the business mode...

Basics of Management 3-4 Value proposition Empathy map Mészáros Ágnes Anna 24-25 1 REMINDER mission and vision statement 9 elements of the business model with the case study of Nespresso 2  REMINDER Why does the company What does the company exist? intend to be? What is the fundamental What does the company reason for our want to achieve in the organization’s existence? future? prese future nt MISSION VISION ”Offering all women and men worldwide the best of „to be one of the world’s cosmetics innovation in leading producers and terms of quality, efficacy, providers of entertainment and safety.” – L’OREAL and information” - Disney 3 The Business Model Canvas Customer Segments Value Proposition ……… Your ………. first Customers Channels Use …….. channels Revenue Longterm ……….. income 4  AGENDA FOR TODAY Nespresso case How to create a value proposition Know your Customer – KYC Unbundling Business Model 5 Let’s start with a coffee! The Nespresso success story 6  The business model of Nespresso The product = a machine + How turning a aluminum pods technological The value proposition = consistent, innovation into a high-quality espresso at home with successful a small machine and single-serve pods business? The results = one of the fastest- growing business lines in the 7 Nestlé Group  machine Nespresso manufactur machine hotels & e offices Retail distributio n They were close to bankruptcy 1 x sales of machine 8  Nespresso consum machine er machine manufactur market, e affluent, quality- consciou s coffee drinkers Premium brand businesse Shifted to an s affluent customer segment & 1 x sales of Created a machine premium brand 9  Nespress household Nespresso o clubs s B2C machine machine distribution manufacture businesse s mail Nespress order Premium o pods retail brand Nespress distribution call o.com channels center Nespres so stores Implemented a 1 x sales of repetitive direct-to- machine pod sales customer (B2C) 10 model  marketin Nespresso household g Nespresso clubs s machine B2C machine manufactur distribution businesse e productio s n mail patents Nespresso order pods retail distribution Nespresso. channels call com center brand productio Nespres n facilities so stores 1 x sales of repetitive machine pod sales production B2C cost marketin Repetitive long cost g cost term income 11 by pods  Lessons of the Nespresso story Innovation Alone Isn't Enough: The right business model is critical to turning innovation into a profitable venture. Market Fit is Key: Finding the right customer segment can make or break a product. Value Proposition & Branding: Their value proposition was about more than just convenience—it was about status and quality. Distribution Matters: By controlling its distribution through exclusive channels, Nespresso maintained a strong grip on its brand and customer experience. Attractive pricing for customers created small but 12 repetitive long-term revenue for the company. The most important messages Customer Segments Value Proposition Know Your Clients first Customers Channels Use more channels Revenue Longterm repetitive income 13 … the success story continued Nespresso has a portfolio of different business models for the different client and market segments 14 Know your customers! 15  Customer Insights - KYC Customers first Know your customer - KYC - studies by sociologists, If I had asked anthropologists my customers - direct meetings and interviews with what they customers wanted, they - asking customers’ opinions - surveys would have told - using big data information bases me “a faster horse”. - Henry Ford Listen to their gains and 16 needs  Empathy Map 1. Empathy map = well- structured visual support for better understanding your customers creating a meaningful value proposition finding the right relationship and channels to the customer Identification of the customer segments Creation of a PERSONA / by segments Usage of the empathy map for main 17 characteristics STRATÉGIAI VEZETŐI GONDOLKODÁS 18  Discuss with your pair 1. Choose an enterprise where both of you are a client - hairdresser - bakery at the corner 2. You will be the persona 3. We will fill the empathy map’s boxes with your case step-by-step 19  Empathy Map 2. The Persona(s) name, age family, home job, income hobby, interests, material status 20  Empathy Map 3. Think & Feel What goes in your customers’ mind? What is the important inside aspiration? What moves the emotions? Examples: “Customers may feel frustrated by long waiting times” “Customers might aspire for a convenient and luxurious experience.” 21  Empathy Map 4. See environment, friends What kind of offers is she exposed to daily? What do their surroundings look like? What problems does she face? Examples: “Customers see many low-cost competitors but lack high-quality options.” 22  Empathy Map 5. Hear How the environment influences her? What do her friends and family say? Which media channels are influential? Examples: “Customers hear from friends that a competitor's product is cheaper but has fewer features.” 23  Empathy Map 6. Say & Do appearance, behavior, attitude in public What does she want to show outside? What do they say and do in different situations? What image are they trying to project? Examples: “Customers often express frustration with complicated checkout processes.” 24  Empathy Map 7. inside aspiration What is important media effects environment, friends What does the market What influences offer her The Person a appearance, behavior What she wants to show outside Gain Pain What does he want to achieve? fears, problems, risks How does she measure Example: “High cost of ownership success? or poor customer service.” Example: “Convenience,25efficiency, and reliability in product use.”  How to use the Customer Insight Find the right 1. step: Monitoring Customer Relationship form and Sales Channel 2. step: Conclusion 3. step: Value Proposition Creation 26  Discuss with your pair 1. Choose an enterprise where you are a client: Bakery or Hairdresser 2. You will be the persona 3. Fill the empathy map’s boxes with your case step-by-step 4. Create a better value proposition for yourself! 27  Example Classical cinema business model Caring new films Distributors Massmarket Entertainment, Type Movie-goers Facility fascinating from all age Suppliers of operation stories food and drinks Movies Movies Online Movie- ticket sales projectors staff food and The drinks Ticket sales margin of income royalties rental fee food and drinks  Create a PERSONA of movie-goers Jane Moviegoer 25-30 year old The Persona middle class HUF 400th monthly Pains income Gains how to find a good hates queuing get out of everyday film prefers online ticket life out from daily not able to buy routins purchases good-place tickets prefers action movies good story seats are not goes to a movie once joint entertainment comfortable with her partner, a month enough likes popcorn with a friends going for the deeper relationships, soft drink tickets half an leading to a good hour earlier  Value proposition – give answers on the Persona’s pains and gains Caring new films Massmarket distributors Entertainment, fascinating Movie-goer Facility stories Suppliers of operation food and drinks ? Movies Movies Online Movie- ticket sales projectors staff food and drinks Ticket sales The margin income of food and royalties rental fee drinks Value proposition creation 31  HILTI original business model – product centric manufactori direct 1 to ng 1 selling partners builders traditiona High-end l factory machine retail tools stores salesforc brand „Quality” e manufacturi brand 1x transactional / ng sales income 32  How to regain their competitiveness 1. HILTI had to face the challenge of the low-cost Asian competitors Many customers began to prioritize cost over quality Using the direct relationship with customers they made a deeper customer insight What is the real need of their customer To buy a tool? OR To have the tool at the right place at the right time! … and HILTI found a new customer segment 33  How to regain their competitiveness 2. New customer segment: The Manager, CEO with the business goal of - finding investments, term – contracts - keeping the deadlines, perfect execution Gains - keeping planning schedule profitable contracts Pains safety high upfront cost access to the newest theft, broken tools tools delay 100% time efficiency 34 penalty predictable costs  How to regain their competitiveness 3. https://www.youtube.com/watch?v=SliMK6Z2jlA 31:10-32:54 Fleet management service with tools on demand 35  How to regain their competitiveness 4. access to a no cost for repair modern fleet and replacements immediate tool tailor-made subscription replacement Gains Pains profitable contracts high upfront cost safety theft, broken tools sound cost access to newest tools delay management 100% uptime penalty predictable costs 36  HILTI redesigned business model – service-centric manufactori direct 1 to ng 1 Service fleet High-end builders machine partners tools salesforc Online fleet The Manager factory e inventor management y retail stores service brand New website 1x transactional, service sales income manufacturi ng Large longterm 37 brand contracts  SUMMARY Customers first Know your customer Empathy map - KYC well-structured visual Listen to their pains support for and needs and give better understanding answers on them in your customers the value creating a meaningful value proposition proposition 38  Notes, sources Learning books Alexander Osterwalder: video lectures and books Strategyzer Webinar: Ways To Present The Business Model Canvas 39 Thank you for your attention ! 40