Business model “Lean Canvas” for JuJu` s Fashion Retailer
In order for me as an entrepreneur to make my business idea to be successful, I must introduce an effective business plan as well as a business model. A business model for a fashion retailing business should cover all the relevant fields that aim at making it successful. Juju´s fashion retailer aims at producing recycling T-shirts for all the nations that are participating in the 2014 FIFA world cup in Brazil. The T-shirts should be available for the participation at an affordable price that would entice customers to buy as much as possible (Kahling, 66).
The production of these recycling T-shirts aims at enabling each team’s fans acquires cheering clothes at an affordable price. This innovation aims at enabling all participants to express their passion and support to teams in a fashionable manner. Moreover, the recycling T-shirts are introduced due to environmental factors such as pollution. This implies that these T-shirts will enable Brazil conserve its environment. During the Mega event, many people tend to buy products that portray their massive love to their teams and thus, such recycling T-shirts would be a better product for the event (Kahlig, 66). At this point, we have identified a gap in the fashion industry, and we take this opportunity to fill the gap. Most fashion retailers are not environmentally friendly. Brazil is gradually raising its sustainable rate while other countries are cutting sustainability down. The opportunity to start and promote the T-shirts during the world cup, and with partnerships with the FIFA is an opportunity to first make the world aware about the environmental issues. This would be a great opportunity to reach customers globally, and the expansion of Juju’s fashion retailer will attempt to bring order to the uncertain chaos.
The business should consider how the venture is a risk and its effects. The risk is introduced by the fact that the fans my view the T-shirts to be of poor quality and thus, despise it. This may make them not buy the clothes. Therefore, the business should lay down exclusive plan on how to convince these fans to buy the recycled T-shirts (Kahlig, 66). The customer satisfaction can lead to a high churn rate or low customer satisfaction. Engaging shareholders developing a financial strategy and customer segments. Our partnership with the Fifa is a strategic partnership.
For this to be a success, there would be imperative to map what every customer needs in the market. It is important to note that each person coming in the FIFA world cup is from different backgrounds and therefore, their liking on the styles may be varied. Since the people would be of different genders, the best in the market would be gender segmentation. Identifying the needs of each gender considering the style and the need would be a key. Both the men and women would be targeted in different ways by coming up with the most appropriate designs and fashions to meet their needs and expectations (Pride, William and Ferrell, 171).
The variable and fixed cost would be the cost structure for this business. The main focus would be the amount that goes into the recycling of the T-shirts. Also important to note would be the cost that is incurred when the customers feel aggrieved and need some compensation. The fixed costs and the variable costs have different effects on the business. Since the world cup is a big event with many people attending, the company would outsource some production to limit on the fixed cost while having the variable cost to manage.
The revenue stream for this venture would be directly from the sale of the recycled T-shirts. The focus would be on the people and the product offered to the customers. There would be no other source of revenue for this business except for the sale of the clothing item. It would therefore be aimed at achieving the maximum from the sale. A key matric for the business would be to check the number of products produced against what is sold (Kaplan, 99). This would help in knowing the capacity that is needed to meet the needs of the customers. It would also help to find out if there is a drop in the sales or an upsurge for that matter.
Works Cited:
Pride, William M, and O C. Ferrell. Marketing. Mason, Ohio: South-Western Cengage
Learning, 2012. Print.
Kahlig, Christian. Facilitating Opportunity Development: Increasing Understanding of
the Lean Startup Approach in Early Stage High-Tech Entrepreneurship. München: GRIN Verlag GmbH, 2011. Internet resource.
Kaplan, Steve. Be the Elephant. New York: Workman, 2008. Print.
