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T+ Business Model Canvas

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Charlotte Coape- Arnold

on 26 March 2015

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Transcript of T+ Business Model Canvas

T+ Business Model Canvas
Key Partners
Key Resources
Physical: Office space, Raw materials
Intellectual: Brand, Patents, Copyrights, Data
Human: Employees, Retail partners
Financial: Revenue Streams
Key Activities
Marketing, Sales, CRM and Research & Development
Cost Structure
Revenue Streams
Value Proposition
Customer Relationships
Customer Segments
Alliances within Society
A multifunctional

health tea, consumable hot or cold, at home or on the go.
Consumer Relationships: Social Media
Retail health specialist stores and online distribution
T+ Target Market: Health conscious young professional, aged 24-35.
Suppliers provide resources needed by a company in order to produce its goods and services. It is vital a business maintains a good relationship with suppliers, whilst monitoring costs and ability to supply; avoiding supply shortages or force price increases, effective on company sales (Armstrong and Kotler, 2015).
T+ Suppliers include:
• Kenyan tea market, use a consultancy agent to aid purchasing of raw product: cost benefits, helping developing communities.
• Packaging supplier- 100% Bio-degradable packaging, card board box, size, cost, quantity and quality.
• Bottle manufacturers - Ergonomic design, T+ branded, quality, quantity, cost and environmentally friendly material.

Rainforest Alliance
• Tea certification program launched in 2007, ensuring fair payment and treatment of suppliers in India, China etc. (Rainforest Alliance, 2015).
• Certification now synonymous within the tea industry, many brands such as PG tips and Lipton all associated with the cause.
• Important to promote partnership, linking to brand image and core values, aligning with competitors and aiding suitability of suppliers.

Blythe (2014) defines a customer as one who decides on payment for a product or service. Customer segments may include consumers and retailers.

Health is a growing market within the UK; young professionals have disposable income.

“Health foods are being reimagined by creative brands for a savvy millennial audience” (J W T Intelligence, 2014)
Tailored to each customer segment, the value proposition is a bundle of products or services that create real or perceived value for customers (Aaker and McLoughlin, 2012).
Satisfying consumers need for convenience and usability, whilst promoting potential health benefits.

Value for money is key, promotional bundles include:
'Free box of tea when buying a T+ bottle'
'Buy one get one free on new flavour releases'
A chain of organisations concerned with the management of activities involved with delivering a product or service to the end-user (Bains and Fill, 2014).
: Initially, sales through the T+ website will be directed to a T+ Amazon store. Amazon expertly manage stock holding and distribution; a cost efficient method for a start-up organisation. Development of internal stock management system as business grows.
: Holland and Barrett stores, initially trailed in London stores, if successful rolling out to city centre stores across the country.
Managing customer relationships combines strategies and tools, to focusing on satisfaction of customers (Boone and Kurtz, 2014). Types of relationship differ for each customer segment.
Core business operates online, use of social media enhances relationships; lifestyle blogs, unscripted conversations with consumers, competitions and encouraged sharing.
This method extends brand reach rapidly in a cost effective way.
Focus on Instagram, Twitter and Facebook.

• Bulk retail sales
• Online direct to consumer sales
• Government funding
An amount of money coming into the business from a particular source; a constant revenue stream is vital, the company must create new revenue streams and cut operational expenditure (Kotler et al. 2013).
As the business grows, additional revenue streams will impact the business; shares, multiple retailer accounts and subscriptions
Key Resources describe the infrastructure needed to create, deliver and capture value. These assets are required to generate value propositions and revenues. (Osterwalder and Pigneur, 2010).
Any activities engaged in for the primary purpose of making a profit (Investopedia, 2015).
•Value Driven
• Fixed Costs: Rent & Salaries
• Variable Costs: Licensing costs, Raw materials, marketing, POS, manufacturing
• Economies of Scale
Fixed and variable costs incurred by a business, enabling calculation of cost and profit per unit (Armstrong and Kotler, 2015).
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