Business model canvas as a part of strategic management

1. Toys for T2BG (Toddlers, babies, boys and girls)
Business Model Canvas
By
V.V.L.N. Sastry, AMP Program of IIM Lucknow

2. Canvas Agenda
• 2

3. 3
• Who are your key
partners?
• Who are your key
suppliers?
• What are you getting
from them, and giving
to them?
6
• What key activities do
your value
propositions require?
7
• What key resources
do your value
propositions require?
Financial? Physical?
IP?
8
• What core value are
you delivering to the
customer?
• What customer
problems are you
helping to solve?
• What customer needs
are you satisfying?
• What are the key
features of your
product/service that
match customer
problems/needs?
1
• How will you get,
keep, and grow
customers?
4
• What channels (sales,
distribution, support)
do you go through to
reach your customer
segment?
• Who are your most
important
customers?
• What are their
archetypes?
• What job do they
want you to get done
for them?
• Does the value
proposition match
their needs?
• Is this a single-sided
or multi-sided
market?
3
• How will you make money?
• What is the revenue model?
• What are pricing tactics?
• What are the most important
costs in your business model?
9 5
2

4. • Designing products
• E-Commerce activities and
operations
• Manufacturing Toys
• Distributing toys
• Warehouse management
• Inventory
• Stores deployment and
management
• Production
• Toy Franchises
• Investors
• Toys T2BG, Babies T2BG &
Kids T2BG
• Employees
• ToysT2Bg.com
• Distribution centers
• Stores
• Delivering every brand of toy
imaginable
• Biggest Toy retailer in the
world
• Creating an easy efficient way
for customers to find quality
and variety all in one place
• one stop place for very toy
imaginable
• Providing Authentic Products
• Toys for T2BG Wish list
• Providing Quality
• Variety
• Product Safety
• Recommended products for children
• E-commerce ToysT2Bg.com
• Toys For T2BG weekly flyers
• Stores
• Shopping malls
• Gift cards
• Mobile App
• Families with children
• Young Children
• Expecting families, mothers
• World wide franchises
• Toy and other product franchises
• Designing Products
• Employees
• Stores
• Marketing
• Distribution
• Production
Product Sales
KEY ACTIVITIES VALUE PROPOSITION CUSTOMER RELATIONSHIP CUSTOMER SEGMENTSKEY PARTNERS
KEY RESOURCES CHANNELS
COST STRUCTURE REVENUE STREAM
Business Model Canvas – Toys for T2BG (Toddlers,
babies, boys and girls)

5. Business Model Canvas – Toys for T2BG
CUSTOMER SEGMENTS VALUE PROPOSITIONKEY PARTNERS
KEY RESOURCES
• Who are your most important customers? What are their archetypes? What job do they want you to get
done for them? Does the value proposition match their needs? Is this a single-sided or multi-sided market?
• World wide Franchises: Franchisees can choose Toys for T2BG to benefit from a wide variety of easy access
to their consumers, this will generate a chunk of revenue for them and creates an outlet for the companies to
reach their consumers
• Many companies do not have their own store, selling through Toys for T2BG will provide them with an
avenue to connect with their customers
• Families with children: will be the prime consumers of Toys for T2BG products, these will include Mothers,
Fathers, children, toddlers, pre-teens looking for access to all their toy and game needs in one place that will
also be able to provide authentic, quality and variety through the variety of products
• Eg: Bobby, Father of a ten year old is looking for a pink Tamagotchi and a pink pixel chick for his
daughter, he will go to Toys for T2BG because he knows he can get both these brands with a variety to
choose from.
• The value proposition aims at matching the needs of the consumers through a multi sided market. Toys for
T2BG will work with several different franchisees to obtain baby furniture, baby clothes, toddler and kid toys
and through them, T2BG will be able to provide children and families with their needs.
ADDITIONAL DETAIL

6. Business Model Canvas – Toys for T2BG
VALUE PROPOSITION VALUE PROPOSITIONKEY PARTNERS
KEY RESOURCES
• What core value are you delivering to the customer? What customer problems are you helping to solve? What
customer needs are you satisfying? What are the key features of your product/service that match customer
problems/needs?
Customers will need
• The Toys for T2BG Brand: The Toys for T2BG brand will be the biggest toy retailer in the world providing its
franchisees an affiliation and access to its customers
• The brand will also be known for providing quality, variety and product safety, thus being affiliated with
will prove to be a positive association for the franchisees who are freed from the responsibility of having
to market and find an avenue to reach their clients, the key feature here would be the avenue provided by
Toys for T2BG
• As T2BG would gain the biggest toy retailer position providing children and families with a vast variety of
options, the customers would be saved the hassle of going from store to store to find different products.
T2BG will also be well known for providing customers the best quality products. The key feature here is
the Toys for T2BG brand and variety.
ADDITIONAL DETAIL

7. Business Model Canvas – Toys for T2BG
CHANNELS VALUE PROPOSITIONKEY PARTNERS
KEY RESOURCES
• What channels (sales, distribution, support) do you go through to reach your customer segment?
• Toys for T2BG goes through many channels in order to reach their customer segment such as
• E-commerce sites ToysforT2Bg .com : these channels allow for customers to browse products the store
carries online in the comfort of wherever they are situated
• ToysforT2BG weekly flyers: Toys for T2BG sends out weekly flyers along with many city newspapers
which allow for children, families and other consumers to see in-store sales, events, new toys available;
this provides them with weekly updates on the stores merchandise
• Stores: Toys for T2BG will have stores all over the world specifically in urban areas populated with
families; this allows for consumers to physically get the products they need in locations near them
• Shopping malls: shopping malls act as a great channel to reach customers as they are often populated by
people and provide easy access to consumers
• Gift cards: Toys for T2BG will have gift cards which helps create a core link to the consumer without them
having to purchase a product right away but still be a great gift
• Mobile App: Toys for T2BG will have mobile app for BabysT2Bg.com which allows consumers to browse
inventory and shop directly through their phone as well as access reviews
ADDITIONAL DETAIL

8. Business Model Canvas – Toys for T2BG
CUSTOMER RELATIONSHIPS VALUE PROPOSITIONKEY PARTNERS
KEY RESOURCES
• How will you get, keep, and grow customers?
• Worldwide Franchises: these customers expect Toys for T2BG to provide them with consumers ready to
purchase their products; this is done through ratings and recommendations on products, reward points offered
by Toys for T2BG when a customer purchases a toy, free shipping online if customers spend a certain amount,
deals being advertised
• This relationship is of great importance as it will provide Toys for T2BG with a majority of its inventory; without
this relationship, Toys for T2BG value proposition would not be successful
• Children and Families: these customers expect authentic, good quality products at a store with a vast variety
where product safety is not an issue
• Toys for T2BG will win their customers’ loyalty by offering variety and a supportive team of employees within
their stores, who can directly assist customers with any of their needs.
• The company will also have a customer service line to assist customers promptly.
• This relationship will contribute towards generation of majority revenue for Toys for T2BG.
ADDITIONAL DETAIL

9. Business Model Canvas – Toys for T2BG
REVENUE STREAM VALUE PROPOSITIONKEY PARTNERS
KEY RESOURCES
• How will you make money? What is the revenue model? What are pricing tactics?
• Toys for T2BG will make money through selling of its products including Toys, baby furniture, kids/baby clothing,
Games etc., these will be their asset sales.
• Toys for T2BG will generate cash through transactional revenues, one time purchases from customers using fixed
prices
• Toys for T2BG will receive inventory from franchisees-> will sells products in store and online -> will receive
direct revenue by providing customer a quality product
ADDITIONAL DETAIL

10. Business Model Canvas – Toys for T2BG
KEY RESOURCES VALUE PROPOSITIONKEY PARTNERS
KEY RESOURCES
• What key resources do your value propositions require?
Toys for T2BG plans to own and or lease a large number of properties around the world that are key to its
operations.
• 1. Distribution Centers: will be set up in order to deliver products to stores and customers in a safe way
2.Stores: will be set up for customers to have a location to go to when in need of Toys for T2BG products
• 3. Employees: employees will be hired to run the stores and to provide quality service to customers
• 4. ToysforT2BG.com : will be launched to provide consumers with an easy accessible way to view, purchase and
have products delivered to them.
ADDITIONAL DETAIL

11. Business Model Canvas – Toys for T2BG
KEY ACTIVITIES VALUE PROPOSITIONKEY PARTNERS
KEY RESOURCES
• What key activities do your value propositions require?
• In order for Toys for T2BG to operate successfully they will need:
• Toy inventory; this will provide the company with the products it will be selling
• Production & manufacturing of the products; necessary for obtaining products
• Activities and operations to be overseen for e-commerce; necessary in order to run Toys for T2BG
website
• Deploying and management of their stores; will be needed to ensure stores are running efficiently and
smoothly
• Distribution of products to the stores and consumers; distribution operations are meant to manage how
the products are transported safely to stores as well as to consumers
• Designing products: necessary for toy inventory and adding new products to the store that are safe and of
great quality
• Training different franchisees: to provide employees and store managers with a standard on how Toys for
T2BG wants to be seen as
• Managing Toys for T2BG warehouses: management of different operations and activities that go on
throughout the warehouse, the overheads needed etc.
• ?
ADDITIONAL DETAIL

12. Business Model Canvas- Toys for T2BG
PARTNERSHIPS VALUE PROPOSITIONKEY PARTNERS
KEY RESOURCES
• Who are your key partners? Who are your key suppliers? What are you getting from them, and giving to them?
• Toys for T2BG Key Partners include
• Suppliers: The suppliers of different toy brands like Mattel, Lego, Hasbro, Funskool,etc. will provide Toys
for T2BG with products and in return, these suppliers will receive an extremely easy access to their own
consumers
• Investors: will provide Toys for T2BG with the financial ability (cash flow) to purchase inventory and run
the company; in return they make profit on their investments
• Toys for T2BG plans to set up two other partnering companies of its own to be able to provide various
other products that are in demand.
ADDITIONAL DETAIL

13. Business Model Canvas – Toys for T2BG
COST STRUCTURE VALUE PROPOSITIONKEY PARTNERS
KEY RESOURCES
• What are the most important costs in your business model?
• Designing Products: Toys for T2BG will have its own products which have to be first created
• Employees: Paying the wages of thousands of employees and managers adds up quite quickly but is necessary
for stores to run
• Stores: running a store has many costs including, electricity, light, water etc. Having to pay for this for all the
stores adds up.
• Marketing: Toys for T2BG will depend on marketing to inform consumers of the products available, this will be
done in several ways including online, through advertisement ads, flyers etc.
• Distribution: Distribution of products comes along with many other costs including, manufacturing space, trucks,
delivery fees, supplies, overhead for distribution warehouses etc.
• Production: producing toys, furniture and clothes also comes along with its own costs such as more employees,
building space, supplies, electricity etc.
ADDITIONAL DETAIL

14. References
• Cleverism. (2018). Company Toys "R" Us | Cleverism.com. [online] Available at:
https://www.cleverism.com/company/toys-r-us/ ://uknowledge.uky.edu/honprog/23
• Emery, K. (2018). The Demise of Toys for T2BG : What Went Wrong. [online]
Knowledge@Wharton. Available at: http://knowledge.wharton.upenn.edu/article/the-demise-of-
toys-r-us
• Korosec, K. (2018). http://fortune.com. [online] Fortune. Available at:
http://fortune.com/2018/03/16/toys-r-us-closings-mattel-hasbro-lego-affected/
• Thomison, Ethan S., "A strategic marketing and financial analysis of Toys for T2BG " (2016). Lewis
Honors College Capstone Collection. 23.