The document discusses business models and their components. It provides examples of how to describe different elements of a business model, such as: 1) The value proposition, target customer, distribution channels, and key resources of Ben & Jerry's in their early years operating an ice cream shop in Burlington. 2) How Ben & Jerry's later expanded their business model to allow for larger distribution and increased revenues through selling prepackaged ice cream in grocery stores. 3) The business model of a hypothetical New England food company focusing on locally sourced, fresh ingredients and sustainability.

1. Designing Your Business Model Speaker: Michael H. Huber, MBA Huber Planning “ Implementing Your Vision Through Integrated Marketing and Financial Planning” Also brought to you by:

4. VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIP TARGET CUSTOMER DISTRIBUTION CHANNEL KEY RESOURCES KEY PARTNERS KEY ACTIVITIES REVENUE STREAMS INFRASTRUCTURE CUSTOMER OFFER FINANCE A business model describes the value an organization offers to various customers and portrays the capabilities and partners required for creating, marketing, and delivering this value and relationship capital with the goal of generating profitable and sustainable revenue streams. Model concept devised by Alexander Osterwalder and Ives Peigner, Authors of Business Model Generation www.businessmodelalchemist.com

5. VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIP TARGET CUSTOMER DISTRIBUTION CHANNEL KEY RESOURCES KEY PARTNERS KEY ACTIVITIES REVENUE STREAMS gives an overall view of a company's bundle of products and services portrays the network of cooperative agreements with other companies describes the channels to communicate and get in touch with customers describes the arrangement of resources explains the relationships a company establishes with its customers sums up the monetary consequences to run a business model describes the revenue streams through which money is earned describes the customers a company wants to offer value to outlines the activities/ capabilities required to run a company's business model INFRASTRUCTURE CUSTOMER OFFER FINANCE Describing A Company’s Business Model

6. Skype free VoIP & value added services software development website global (non segmented) ebay Deliver Voice & Video Quality large scale low margin internet software development free voice-over-IP VoIP telephony & value-added services

7. VALUE PROPOSITION Scoops of Premium Ice Cream OFFER Describing a Company’s Offer Example: Ben & Jerry’s Early Years

8. VALUE PROPOSITION TARGET CUSTOMER Burlington Area Res. Tourists CUSTOMER OFFER Describing Who a Company Offers Value to Example: Ben & Jerry’s Early Years Scoops of Premium Ice Cream

9. VALUE PROPOSITION TARGET CUSTOMER DISTRIBUTION CHANNEL Scoops of Premium Ice Cream Local Store High Visibility Burlington Area Res. Tourists CUSTOMER OFFER Describing How A Company Reaches Its Customers Example: Ben & Jerry’s Early Years

10. VALUE PROPOSITION TARGET CUSTOMER CUSTOMER RELATIONSHIP Scoops of Premium Ice Cream Know Owners Fun Local Burlington Res. Tourists CUSTOMER OFFER Describing the Relationships a Company Builds Example: Ben & Jerry’s Early Years

11. TARGET CUSTOMER REVENUE STREAM Premium Price Burlington Area Res. Tourist FINANCE VALUE PROPOSITION Scoops of Premium Ice Cream OFFER CUSTOMER Describing How a Company Makes Money Example: Ben & Jerry’s Early Years

12. KEY ACTIVITIES VALUE PROPOSITION Making Unique Ice Cream Community Involvement Scoops of Premium Ice Cream OFFER INFRASTRUCTURE Describing What Capabilities/Activities Are Required Example: Ben & Jerry’s Early Years

13. Describing What Resources Are Required VALUE PROPOSITION KEY ACTIVITIES KEY RESOURCES Scoops of Premium Ice Cream Ben & Jerry Local Support Making Unique Ice Cream Community Involvement INFRASTRUCTURE OFFER Example: Ben & Jerry’s Early Years

14. Describing the Partners That Leverage the Business Model VALUE PROPOSITION PARTNER NETWORK KEY RESOURCES Scoops of Premium Ice Cream Ben & Jerry Local Support Local Dairies Local Restaurants INFRASTRUCTURE OFFER Example: Ben & Jerry’s Early Years

15. VALUE PROPOSITION COST STRUCTURE Equipment Building/Cart Scoops of Premium Ice Cream FINANCE INFRASTRUCTURE OFFER Describing the Costs of a Business Model KEY RESOURCES Ben & Jerry Local Support Example: Ben & Jerry’s Early Years

16. VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIP TARGET CUSTOMER DISTRIBUTION CHANNEL KEY RESOURCES KEY PARTNERS KEY ACTIVITIES REVENUE STREAMS Scoops of Premium Ice Cream Make Unique Ice Cream Community Involvement Local Store High Visibility Ben & Jerry Local Support Know Owners Fun Equipment Building/Cart Premium Priced Burlington Area Res. Tourists Local Dairies Restaurants INFRASTRUCTURE CUSTOMER OFFER FINANCE Example: Ben & Jerry’s Early Years

17. VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIP TARGET CUSTOMER DISTRIBUTION CHANNEL KEY RESOURCES KEY PARTNERS KEY ACTIVITIES REVENUE STREAMS Scoops of Premium Ice Cream Make Unique Ice Cream Community Involvement Local Store High Visibility Ben & Jerry Local Support Know Owners Fun Equipment Building/Cart Premium Priced Burlington Area Res. Tourists Local Dairies Non-Profits INFRASTRUCTURE CUSTOMER OFFER FINANCE Example: Ben & Jerry’s Limitations for Larger Distribution/Revenue

18. VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIP TARGET CUSTOMER DISTRIBUTION CHANNEL KEY RESOURCES KEY PARTNERS KEY ACTIVITIES REVENUE STREAMS Scoops & Pints Of Premium Ice Cream (Now a Variety of products) Make Unique Ice Cream Social Action Shopping Areas Big Box Grocers Brand Mass Many Scoop Shops Large Manufacturing Premium Priced Higher Income Shoppers Socially Conscious National Distributor National Marketing INFRASTRUCTURE CUSTOMER OFFER FINANCE Example: Ben & Jerry’s Larger Distribution/Revenue

19. VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIP TARGET CUSTOMER DISTRIBUTION CHANNEL KEY RESOURCES KEY PARTNERS KEY ACTIVITIES REVENUE STREAMS Bottled Delicious Food Fresh Ingredients Locally Sourced Complete Traceability Develop Recipes Sourcing Ingredients Strategically Quality Control Local Cooperatives Health Food Stores Independent Markets Consumer Products Goods Background Chef Mass- Customized Direct Feedback R&D Inventory Production Costs Premium Priced Retail Local Farms Co-Packer Trade Associations INFRASTRUCTURE CUSTOMER OFFER FINANCE Health & Sustainability Conscious New England Area

22. Any Questions? Huber Planning “ Implementing Your Vision Through Integrated Marketing and Financial Planning”