The document proposes a smartphone app business that sells clothes and toys for children under 10. It notes that the COVID-19 pandemic has increased online shopping. The app aims to save parents' time by offering a quality selection of children's products online without visiting stores. A business model canvas is presented, outlining key partners, activities, customer segments, channels, revenue streams, and cost structures. The analysis identifies opportunities in the growing UK children's market and competitive advantages of price, customer experience, and product range.

1. Strategy &
Innovation
Module Code: BMG85289568
Department of Management,
Leadership and Marketing
Ulster University Business School

2. Business
Development
Proposal
Smartphone App

3. Executive Summary
Because of the lockdown, COVID 19 has led to
consumers preferring online sites to make
purchases. With the rise in the UK's population,
there has been a steady growth in the market for
children's clothes. As a result, it is estimated that
there will be many opportunities for companies
in this sector to extend their breadth of
operations and meet the demands of their
customers.
The suggested business idea is about
smartphone app that will allow use of an online
app and it will eliminate the need for people to
visit stores in person. Another reason is modern-
day parents' lack of time to go out and do
exhaustive shopping for their children. This app
will add value to the customer’s experience by
offering high quality clothes and toys of the
children under 10 and saving the time of their
parents.
3

4. Market
Opportunity &
Value
Proposition
4

5.  During the pandemic, the respective business
plan was poised to take on the online market
 Meeting the set target of increasing revenue
and expanding the market and customer pool
within the first several days of service.
 Positioned to serve parents by offering them
high quality clothes and toys for their children
 Apart from consistency, the important factors
that gives baby shopping apps a competitive
advantage is price..
 It is natural for parents to turn to platforms
where they can get baby clothes and toys at
lower cost
5

6. 6

7. Business
Model Canvas

9. Competitive
Environment
9

10. Competitive advantage
can be achieved by
providing customer
friendly interface
Keeping the product
cost low and giving
discounts and
promotional deals to
customers for sales
growth.
Strong customer
support environment,
a wide range of
payment methods, and
a secure facilities.
Investing in R & D
Investing in R&D to
enhance the quality of
business
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11. Competitors
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12. Identify Key Partners & Activities
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Suppliers, Payment Gateway, Logistics Company
Key Activities
Development and Maintenance of App, Customer service
Key Partners

13. Identify Customer
Segments
• The parents of children under the age of ten will
be targeted as a part of the consumer base.
13

14. Identify customer
relationships & relevant
channels
14
• Providing a variety of deals, including
discounts/promotional deals
• Considering their feedback
• Making changes to the service level.
• The service will be delivered by an
online distribution system, which will
mostly consist of connecting with
consumers via an app.
• As we are offering an online store,
direct selling would be the best suitable
distribution channel.

15. Identify & Estimate
Revenue Streams
The profits will be raised by selling
clothing and toys to parents of children
under the age of ten.
15
Number of Clothes/Toys
Sold
Average Price per Item Total Weekly Revenue Total Yearly Revenue
100 $ 15 100 x $15 = $1500 $1500 x 52 = $78000

16. Identify & Quantify
Cost Structures
The products would be sold to consumers at a
low-cost approach
Cost incurred would be Employees’ salary,
Operational cost, Maintenance cost and
Marketing cost
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Fixed Cost $150000
Variable Cost $5 / item
Selling Price $15 / item
Formula FC/VC – SP
Break-Even Point = $150000/$5 - $15
BEP = $15000

17. Conclusion
By consistently delivering best
customer experience and
incorporating value-added business
practices whenever possible, the
proposed Smartphone App would
show a dedication to usability, both
internally and as a business.
When consumers use the app services,
the company will make sure to keep
itself to the highest expectations by
fulfilling their requirements specifically
and absolutely.
17

18. References
18
• Addo, P. C., Jiaming, F., Kulbo, N. B., and Liangqiang, L. (2020). COVID-19: fear appeal favoring purchase behavior towards personal protective
equipment. The Service Industries Journal, 40(7-8), 471-490.
• BBC (2020) [Online] Available at https://www.bbc.com/news/education-39894997 [Assessed on 1st March 2021]
• Geraldi, J., and Lechter, T. (2012). Gantt charts revisited: A critical analysis of its roots and implications to the management of projects today. International
Journal of Managing Projects in Business.
• IBIS World (2020) Baby Infant clothing stores [Online] Available at https://www.ibisworld.com/united-kingdom/market-research-reports/baby-infant-
clothing-stores-industry/ [Assessed on 1st March 2021]
• Joyce, A., and Paquin, R. L. (2016). The triple layered business model canvas: A tool to design more sustainable business models. Journal of cleaner
production, 135, 1474-1486.
• Osterwalder, A., Pigneur, Y., Bernarda, G., and Smith, A. (2014). Value proposition design: How to create products and services customers want. John Wiley
and Sons.
• Statista (2020) Market Value of Baby Care market in the UK [Online] Available at https://www.statista.com/statistics/474676/market-value-baby-care-great-
britain-uk/ [Assessed on 1st March 2021]