Business Model Canvas

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2.2. Business Model Canvas

Figure 2: Love Back Business Model Canvas 2.2.1. Value Proposition

The first value that Love Back put emphasis on is that our customers must always get the reliable products as promised; fresh, nutritious and safe. We would like to provide further solutions that this must be convenient; that is to say, we deliver our provided choices to their home on subscription basis. This must come with significantly lower cost comparing to normal organic vegetables and fruits in the market.

Another important value is that we would like to create positive impacts on the environment by reducing food waste in the cycle of supply chains. This food might not be selected to sell in normal supermarkets; however, they are perfectly acceptable to consume. Naturally, vegetables and fruits are not meant to be in perfect sharps. The perfect requirements stimulate the use of more chemicals, fertilizers and GMO⁵ products. We would like to put it into our value and also educate as well as do marketing to change consumer’s perspective.

5 Genetically Modified Organism

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Furthermore, Love Back will try to lower its cost as much as possible in order to be able to stay sustainable.

2.2.2. Customer Segments

We will focus on health-conscious customer groups. Our customers will not be the niche market, who has the highest purchasing power in the market, but we will focus on modern individual, small family or small organization that care about their daily consumption;

nonetheless, also want the healthy lifestyle to be more convenient. Those people should have the access to further food preparation e.g. own kitchen.

2.2.3. Customer Relationships

Love Back is an online platform; therefore, most of our orders will be made through our website. We will provide customers several packages based upon subscription. Customers will have the freedom to choose a package that suits their need the most. Our subscription will be flexible to match Thai customer’s characteristics of preference; meanwhile promotions will be added through our membership programs.

Call-in order is also possible as we wish to please and provide more convenient option for the elderly group of customer.

2.2.4. Channels

Since it is an online platform, the most important channel will be our website and blogs. We will create blogs as a way to educate our customers as well as providing healthy and delicious recipes using our misshape products. Social Media e.g. Facebook and Instagram will also play a role in reaching more audience to come to our main channel, which is the website and blog.

Also, due to our products are seasonal, we will create seasonal promotions that will focus on different kinds of vegetables or fruits that come out with too much quantity during that season.

Last but not least, content marketing has been proved to work successfully in Thailand. Love

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Back will create its own content e.g. a short film or an advertisement through moving motion online platform e.g. YouTube. All of this will be linked to our main channel; the website.

2.2.5. Revenue Streams

Our sales will come from the paid subscription of our products from customers. We will create several options of packages for customer to choose from and also the length of period of subscription as well. Therefore, the revenue should be stable and predictable.

2.2.6. Social and Environmental Benefit

The products we purchase usually do not meet normal supermarket’s standard and will be considered trash otherwise. Consequently we will reduce the significant amount of waste within the food supply chains. Furthermore, we will use recyclable or environmentally-friendly package. As a result, food waste numbers should be decreased annually.

2.2.7. Key Activities

Sourcing the trusted farm and negotiate the deal with them will be the first important task, which requires multiple farming networking in Thailand. After that, the products will be transported to our inventory, where we finish the packaging for delivery to customers. All of the transportation and logistics should be handled by our third-party logistics partner.

Meanwhile, the management of online payment and customer care will also play an important role during all these production processes.

2.2.8. Key Resources

Most of the transactions will happen through online channel; therefore, Love Back needs exceptional information technology talents to create and manage the system on a daily basis.

Also, online marketing know-how will also be crucial to our business in order to reach more customers to our platform. Love Back needs IT-literate people to run the business.

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Farmers will be our number-one key partner in providing all the supplies as well as creating marketing campaigns together with us. Some organic retailers can also provide us with supplies that cannot be put on their shelves, but still perfectly exquisite to consume.

Logistics company partner will also play a critical role in moving goods from supplier to customers for us with lowest cost possible. Moreover, we need special supplier for providing environmentally-friendly package. Lastly, in case of huge IT infrastructure, we might need consultant team to accomplish the project.

2.2.10. Cost Structure

The cost consists of sourcing products process, packaging process, transportation and logistics, inventory, office and facilities rent, IT projects and maintenance as well as the monthly expenses including utility bill and employee’s salary.

2.2.11. Social and Environmental Cost

With all of our processes, the only one that might possibly create negative environmental cost would be the transportation and logistics, of which we have little control due to it is a third party. However, Love Back will find a partner that also shares the same goal and vision in being more favorable to the environment. Also, this is a normal occurrence for any business with delivery process. In addition, we need to use resources of office regular operations e.g.

electricity, water etc.

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Love Back is an online platform for organic products. Although our products, which are the first of its kind in Thai organic market, that either have misshape, too much for the season, old-fashioned package, in short all those that will be managed as trash otherwise, we would like to analyze further in the current situation of Thai organic products selling platforms both offline and online.

3.1.1. The offline platform

This platform sells through retailers either chain-retailer or individual ones. Surprisingly in Thailand, the normal supermarkets have very limited choice of organic products. The reason behind this might be that a lot of Thai customers still have confusion between kinds of alternative consumption products e.g. real organic and hydroponic products, which are very often mixed up.

To be able to have access to the proper organic products, customer should reach to the pure organic shops, which there are several renowned brands in the market e.g. Lemon Farm.

Usually most of proper organic retailers are not chain supermarket, but owned by farmers themselves.

In the provinces of Thailand, usually organic products especially vegetables and fruits are sold in normal markets where vendors and buyers are often local only.

3.1.2. The online platform

Online platform for organic products in Thailand are most of the time operated by those proper