UW00302

FUNDAMENTALS OF ENTREPRENEURIAL ACCULTURATION

SEMESTER 2
SESSION 2 2018/2019

BUSINESS MODEL CANVAS

Section : 13
Lecturer : KELVIN YONG

Company name : LE DON APPAREL

Group no :2
Type of business : PRODUCT

No Group members Matric number

1 HANGELICA HAROLD SINPONG BN18110220
2 NUR SYAFIEQAH IRDINA BINTI M. ISHAK BN18110200
3 NURUL IZYAN BINTI MOHD NASRI BN18110225
4 SCHARLEIFFAH BINTI RICHARD @ WATI BN18110050
5 ALYSSA VIVIAN BINTI STEVEN BN18110035
6 NUR FATIHAH BINTI NORHAKIM BN18110199
7 AFIFAH BINTI MOHD. HAMID BN18110211
8 EVENDRA BINTI BONNEY BN18110138

1
INTRODUCTION

The company name is Le. DON, in which ‘le’ translates as ‘the’ and ‘don’ translates
as ‘gift’ in French. Le. DON is a fashion destination for trendy, aesthetic and affordable
apparel. Our company logo tagline goes by ‘your style, your rule’, meaning anyone can
wear whatever they are confident and feel good in because you should never
underestimate the power of a good outfit on a bad day. Le. DON mainly targeted students
and young teenagers aged around 13-23, so we intended to keep our price as low as
possible. This way, our target market are able to reward or, as it goes by our company
name Le. DON, to gift themselves with our products.

The products our company sells are t-shirt and some different types of accessories.
A simple graphic t-shirts are for a comfortable everyday-look. Accessories included are belt,
sunglasses, caps and bucket hats. Belts are a staple to every wardrobe to spice up simple,
casual look for that effortless chic look. Our trendy sunglasses and hats aren’t only for hot
days, but they also serve as a statement piece to look edgy.

2
OVERVIEW OF BMC REPORT

3
THE 9 ELEMENTS OF BMC REPORT

VALUE PROPOSITION

Value proposition is essential for starting up a business as it is regarded as the foundation of

a great product or services. Through this, value is provided in various element where it
specifies what makes the company’s product or service attractive, why a customer should purchase
it, and how the value of the product or service is differ from other similar offerings. In our business
that we have decided to do, we have proposed several value propositions comprised of
unique selling point and featured-advantage benefit to the targeted customers. The value
proposition that we offer to customer is a sign of proof to the authentication and
uniqueness of our business in clothing.

The first value proposition that we offered is an affordable price of our product
compared to other shop. At Le.DON, we provide a good quality product and preferable
where we sell it in a lower price and is affordable for our target customer which are the
UMS’s student and other outsider customer like teenager. Basically most of the students
and teenagers who has not work yet does not have a permanent or many source of income
but they like to fashion very well especially when following what is on trending now. So,
Le.DON provide not only the best price but also an up to date product where they can style
in the latest fashion.

Other than that, we also come out with a solution for people who have lack sense of
fashion. At Le.don, we display several ways on how to rock our item which we posted it on
the social media so that the targeted customer have a guidance and an idea on how to look
stylish and fashionable. We also provide a package of our item where they can grab it in a
full outfit with affordable price and have sense of aesthetic.

Last but not least, our company provide a limited copy for each item whic h is rarely
occur in other shop. We provide limited copy because we understand that there are some
people who felt uncomfortable seeing a copy of their belongings. So, in Le.DON we strictly
provide a very limited copy of our item so that our target customer will have no worries and
can style in their own way with an outstanding look when wearing our item.

4
CUSTOMER / MARKETING SEGMENTS

In every business, customer segmentation is very important as it allow the business itself to
grow and expand. It is important to know the target people for the value proposition to be
offer so that a business can precisely reach a consumer with a specific needs and wants. In
doing so, we can create target advertising and marketing for a subset of customer to catch
the attention of individual within that subset which is based on four main bases of
segmentation which are demographic, geographic, technographic and psychographic.

For demographic segmentation, our company are targeting both gender which are
women and men. We are targeting women because we know that women are mostly
wanted to look fashionable in their own way and our company provide several item which
can make them look in a such way they want it. Not only women, we also target men
because the item that we sell can be used as a gift to their partner or friends. Next, we also
targeting teenagers and students because we know that they are more tend to have a
sense of fashion in their everyday look. So we provide various type of item such as t -shirt,
belt, sunglasses and hat for them to used to look classy and stylish wherever they go for
example to class or even when going outside. In addition, our product is suitable for those
who come in lower to middle income as the price we offered is cheaper than other shop, so
people can save money and at the same time can maximize their satisfaction from buying our
products.

For geographic segmentation, our company are running this business based in Kota
Kinabalu and are more focusing in UMS and area around it. This is beca use there are
limited number of instagram shop that sell trendy and affordable clothing in Kota Kinabalu
area as most of it are from peninsular. So if the people want to buy it from the peninsular
or from overseas, the shipping cost is quite pricey and will take longer time for the item to
be received. For technographic segmentation, we also used an Online -based shopping
especially through the instagram, Facebook and whatsapp as an alternative platform in
selling our product. Lastly, for psychographic segmentation, we aim the student who love
fashion. As can be seen nowadays, aesthetic and comfortable clothing currently become a
trend. Hence, we believe that those people who love fashion will not missed out this
moment.

5
MARKETING CHANNELS

Marketing channels can be defined as how the producer deliver the products or services to the
end users or customer. In a business it is important to have a good marketing channel strategies
so that the product could be deliver to the customer and the product can be promoted widely to
attract customer interest. There are various ways or platforms can be used for the marketing
channel as part of the business promotion.

Our company use three marketing channels platform to promote our product. The first
marketing channel is through direct selling where we will open a booth at UMS area which
is at PPIB where usually many students will come there for their language’s class. So we
are aiming the student not only the local student but also the international student. The
second platform is we used social media such as instagram, Facebook and whatsapp. This is
because, nowadays, everyone can and have an access to social media. So it will be easier
to promote, contacting and deal with our customer upon any purchase and delivery.
Moreover, through this platform, we could also save budgets in promoting our product as
using social media are free of charge and more eco -friendly if compare to promote through
poster where we need to print it out. The last marketing channel we used is through
delivery service. We provided cash-on- delivery(COD) for them who has weary if doing
online banking as they will only pay when there receive the item. This could also build their
trust to our company and feel safety. We also provided shipping delivery for those who are
outside of Kota Kinabalu area via PosLaju as through this courier we are easy to reach and
posted our product.

CUSTOMER RELATIONSHIPS

Customer relationships are the types of relationships a company establishes with specific
customer segments. It build connection with the customers. Customer relationship is very
important as a success and failure of a business all depends on the performance of the business.
Thus, having a good relationship with all the customers and maintain the relationship for a long
period of time is very important to help sustaining and increase the performance of the business.

In our business, we want to build a friendly and good relationship with our customers so
there are several way we do to establish and achieve it which the first way is by having a ‘Happy
Hour!’. Upon reaching certain amount of sales or followers in Instagram or Facebook, we will have
some kind of promotion or discount where we will offering them a few ringgit off from the actual
6
price when buying several items. So, the more they buy, the cheaper and more discount they will
get. The other way that we do achieve a good relationship is by giving a ‘Giveaway’. We will doing
a giveaway for some of our item upon reaching certain amount sale or followers. For example, we
will do an announcement on the social media that our company will having a giveaway according
to the rules and regulations that we have set. We may set the rules by asking them to like and
follow our page and then tag three person in the comment, so we will then choose the luckiest
three person or more than that to have the giveaway. Through this way, we are not only establish
a friendly and good relationship with customers, but at the same time we are also increase the
sales and followers on social media and to attract their attention.

In Le.DON, we want to maintain a healthy, friendly and good relationship with every
customers, so a good and planned strategy is the key to do so and it is very important so that our
business can be sustain and run in a longer period.

KEY PARTNERS

Key partners can be define as the network of suppliers and partners that make the business
model work. It is important to have and build a good relation between key partner as they are the
one who provide and supply some product that is needed and also the one who help to consult
and promote the business in order for a business to work and success.

In our business, there are three key partners that we are work with. The first key partners is
between our company and suppliers. The suppliers that we are dealing with are Shoppe, Taobao
and Lazada. We get our product that we are selling currently is from this three online shopping
application. They provide and supply wide and various product that we can get in even lowest
price for us to resell it. Moreover, we are choosing this platform to be our business supplier is
because they are trusted and proven to be the best among the others company. They are also
easy to deal with. The second key partner that we have is with our chosen consultant which is Sir
Kelvin Yong. He is one of the UMS Basic Entrepreneurship Acculturation lecturer that have many
experienced in business. So our company will ask for an advice from him and he will consulting us
on the aspect that we need to do and what we supposed need to avoid in running a business.
Lastly the key partner that help to promote our product and develop a good business and
performance is between all the members of the company. They are all the backbone that the

7
company need to sustain in order to build name of the company together to improve the quality
of service we provide to our customer and the product itself.

KEY ACTIVITIES

Key activities are the activities that a company must do in order to make its business model work.
These key activities are very important in any business building block as they can make it grows
stronger and sustainable. These activities will much be depending on the nature of the business
that a company does. They can be anything such as producing a product, providing services or
even a mix of both.

In our business, we are providing our customers with variety of fashion items at affordable
prices. To make our business model work, we promote our items through marketing channel which
is social media platforms such as Instagram, Facebook and Whatsapp. By doing this, we believe
that we can get engaged with our customers through the media socials as they can ask questions
related to our business and thus, to make them trust with the service that we provide. Furthermore,
this key activity is very important for us as we may know what our customers’ need and want.

In addition, to make this activity becomes easier for us, we divide our members into several
units and each unit has their own role. For examples, our marketing unit will be handling and
promoting items that we sell in the social media. They also take photoshoot of the items to make
them look impressive in the social media thus attracting more people to buy our products. Not only
that, our sales unit are the ones who take orders from customers and manage all the customers’
questions while our trades unit are the persons that will contact traders and suppliers from various
online shops.

KEY RESOURCES

Key resources are the most important assets needed to make a business model work. Every
business model requires the resources and it is only through them that companies generate value
prepositions and revenues. Key resources can be categorized to several categories which are
physical resources, human resources, intellectual resources, financial resources.

8
 Physical assets are the tangible resources that include raw material, buildings, vehicles,
transportation, storage facility, machines and factory while in human resources, employees are the
most important and easily overlooked assets of an organization. Human resources such as software
engineers and scientists are important for companies that provide services or require a great deal
of creativity and extensive knowledge. Intellectual resources on the other hand are non-physical
things, intangible like brand, patents, computer databases and partnerships. Moreover, people’s
knowledges and ideas can represent a form of intellectual resources. These intellectual resources
can offer unique benefits and advantages to the company if they are developed with creativeness
and skilful. A great expenditure of the resources can lead to the success of the company. Financial
resources include the cash, credits and the ability to have stock option plans for employees.

In our business, the physical resources that we have are the vehicle to deliver products to
our customers and our own college as storage facility of our products. We also have our members
for human resources as the model to promote our products and in doing photoshoots, the
creativeness and techniques are required to have a high-quality photo to be posted in the media
socials. Our financial resource includes collecting money from our members to buy the products
from the suppliers.

COST STRUCTURES

The cost structure describes all costs incurred to make a business model work. Such costs can be
calculated relatively easily after defining Key Resources, Key Activities and Key Partnerships. Every
entrepreneur should strategize the best and appropriate cost structure to suit the project concept.
Some costs can be obvious while others are less obvious such as taxes. It is a very crucial thing to
know what the largest cost item and which key resources or key activities that contribute to a high
cost in our business.

The cost structures include in our business are the cost price for each product, the shipping
cost as our suppliers are mainly from online shops, advertising to promote our products and rental
fee for the direct selling of our product at Pusat Penataraan Ilmu dan Bahasa (PPIB) in University
Malaysia Sabah (UMS). The largest cost item in our business is the cost price. This is mainly
because of the product itself that we sell which includes variety designed clothes, belts and
sunglasses. Each item that we sell has different prices according to its designs. We chose suppliers
from online shops because they provide cheaper price for our products that we sell. This is to offer
9
our products at the price that can be considered as reasonable since we know where our target
customers stand in terms of financial status.

Besides that, in advertising our products we do photoshoots of our products. Therefore, we

spent money for the props and lighting to create photos that will give impacts to people who see
them.

REVENUE STREAMS

Revenue is the amount of money that is brought into a company through its various business
activities such as sales of products or services. A Revenue Stream is the building block presenting
the cash a company generates from each Customer Segment. Revenue streams can be generated
in many ways for examples from sale of physical product, renting fee and from advertising.

Our company, LE.don got its revenue from direct selling and online selling of items Online
selling is our main revenue stream as we mostly promote our products via social media while direct
selling becomes our secondary revenue stream. From the online selling and direct selling, main
source of income that we got is from the total profit gained from selling the items. In addition, we
also gain extra profit from mark-up price which is 40%. The mark-up price refers to the value that
the entrepreneur adds to the cost price. This profit can be used to cover any payments in the
business.

10
RISKS AND SOLUTIONS

Risks Solution
The possibilities of getting We have to look at some aspects of the seller by referring
scammed by the supplier, in the to their reviews, ratings of service, how much products
Shopee. they have sold, the price of the products and any deals
they offer to the buyers such as promotions or ‘free
shipping fee’. The seller that we choose would be the
seller that matches our needs from all the aspects and
gain our trust.
Certain product design does not Since different people have different preferences, we have
reach the customer interest. to choose a variety of designs that could potentially attract
our customer’s attention. Therefore, we did some research
beforehand on what is currently trending these days and
asked opinions from a group of people regarding the
designs they preferred. We tried to find the similar
products that can match with our customer’s taste.
Price range is too high for the Since our main targeted customers are students, we need
targeted customer. to keep in mind their socioeconomic status and how much
they are willing to spend for our product. Therefore, we
made sure that all the items chosen are of affordable
price. To top it off, we also offer “happy hours” where we
will provide a special discount within a limited amount of
time to further attract customers to purchase our product.
Unable to convince the customer Our marketing strategy plays an important role to
on the quality and practicality of promote, convince and gain our potential customer’s trust.
our product (apparel). Therefore, we utilize our social media platforms by share
videos, pictures and feedbacks from customers on our
product. We also give a few tips and tricks as well as
styling ideas on how to put together the most chic outfit
using our brand’s apparel.

11
APPENDIX : POSTER OF THE PRODUCT

12
APPENDIX: ORGANIZATION CHART

13
APPENDIX: PRODUCT PICTURE DISPLAYS

14