The Deli That Did: Case

17
Customer Value Excellence: The Deli that Did
As a group, please answer the following questions: Expenses (excluding cost of goods sold) Yearly (in $)
Rent $60,000
Customer Model
Wages and salaries 143,000
• Who are the Deli’s target customers? Transportation 24,000
• What are the key strategic areas driving customer Credit-provision 30,000
value? Utilities 36,000
• What is the customer value equation for each Video Parlor 10,000
Insurance and business services 42,000
customer segment?
Other 48,000
Execution Model
TOTAL 393,000
• How is the Deli fulfilling the customer value
proposition? Ticket breakdown Per Customer
Sale $10
• What are the execution levers within key strategic Cost of goods sold (3)
areas? Margin 7
Financial Model
• Which execution areas need more (less) emphasis?
• What core activities generate the most profit? 18