Business report for apple inc. (Business & Marketing Essay)

business report for apple inc.
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Business Model Critical Analysis
Introduction
Smart Sweets is a confectionery company that originated in 2016. Located in Vancouver, British Columbia, the company produces gummy bear candies free of sugar, alcohol, and other harmful preservatives. The young entrepreneur, Tara Bosch, provided a sweet alternate for gummy bears that excluded all the harmful effects of a massive sugar diet. Due to the innovative product that Smart Sweets offer, the company mainly targets health-conscious individuals. These gummy bears are distributed through wholesalers and retailers to the USA and Canada. However, the primary selling method is through the Smart Sweet online store. The added benefit of hygiene, along with taste, makes the company stand apart from its rivals.
Marketing Mix
Pricing
The company offers a variety of flavors for its products. Each flavor comes with a different price. The variation in prices is because of the difference in calories and fiber in the products. The prices range from 23 CAD to 50 CAD per bag of candies.
Target Market
The target market for smart sweets includes all genders. Women are generally more inclined towards sweet products than men because of hormonal fluctuations. Most children also prefer sugar intake because calories are directly related to growth (Ferraro and Andreatta, 2017). Additionally, the target market also includes gummy bear fanatics and all sweet lovers, including people who have gained weight or face health problems because of the excessive use of candies and sugar products. Smart Sweets provides a way to consume sweet products eliminating the health hazards.
The Customers Want and Needs
The customer wants confectionery products; however, this comes with health hazards. Leading a healthy life and simultaneously consuming sweet dishes is very difficult. The sweet dishes that we intake come with many adverse effects that harm the human body. It leads to obesity and heart diseases in the future (Raikos and Ranawana, 2019). Smart Sweets addresses these problems of a consumer and offers a sweet product and eliminates all the other harmful effects of sugar on a person's body. A consumer might face a problem that the product offered by Smart Sweets is not as sweet and full of sugar as other desserts. Since this candy's health benefit is significantly more significant than any other dessert, the consumer has to compromise on some level. The company prides itself on delivering products that are up to the mark, and they will fulfill a customer’s need to the fullest.
Competition
Since Smart Sweets is a company that provides confectionery products, the competitive market is relatively vast. Nevertheless, creating candies and delivering health benefits in one product is not a focal point for many food companies. After correctly identifying the target market and supplying consumers with products that Smart Sweets offers, it becomes easier to generate sales. The company has a competitive edge in terms of the health benefits offered.
Business Model Analysis
The Business Model of Smart Sweets contains many aspects; critically analyzing a Business Model is integral in understanding the objective and value that a venture has to offer.
Customer Segments: The target market of Smart Sweets consists of all genders, including children; this is known as creating products for a mass market (Hopkins, 2017: Miles et al., 2014). The company aims to reach a mass market rather than a niche or segmented market. Since almost all individuals consume items of confectionary regardless of their genders, reaching a mass market is the most appropriate step a company should take.
Value Proposition
The innovation theory of entrepreneurship is applied in the creation of Smart Sweets. According to J.A. Schumpeter, an entrepreneur is a person who innovates and creates a combination that the world has never seen before (Tonkope, 2019: Ireland, Covin, and Kuratko, 2009). People love candy; during this love affair, many individuals develop an unhealthy relationship with sweetness, leading to drastic consequences on a person's body (Raikos and Ranawana, 2019). Smart Sweets offers a sweet delicacy free of all unhealthy aspects that a sugar-based product might have on a person. The company's prime objective is to provide a sweet candy and eliminate all health problems that a sweet product might have. The unique value that Smart Sweets offers sets the company apart from all other confectionery businesses promoting innovation.
Customer Relationships
Customers are the most critical assets to a business (Hague and Hague, 2018). Smart Sweets believes in keeping a healthy relationship with its customers. Since the company prides itself on providing healthy sweetness to its customers, it also promotes maintaining healthy relationships with the consumers. Customer satisfaction is the most integral aspect of the business; its relationship manager ensures that the customer service is up to the mark for every consumer.
Channels
Identifying appropriate channels through which a business runs is essential to the success of a venture. Smart Sweets uses a hybrid of Owned channels and Partner Channels. These channels provide a mix of direct and indirect techniques that are beneficial to a business's prosperity. Owned channels are costly (Fitzpatrick, 2017), but they generate decent turnover instead of the Partner channels that are cost-effective and help reach a broad market in a shorter period (Armstrong, Kotler, and Opresnik, 2018). The company focuses on in-house selling and wholesale distribution simultaneously.
Key Activities and Resources
The key activities include manufacturing and distributing the gummy bears that the company offers. Since the venture is less than ten years old, its awareness and demand are on the rise. To tackle the need for increasing demand, the company has to ensure that the manufacturing department is in sync with the forecasted demand so that a backlog many not occur (Leondes, 2019). The essential resources are the kitchens and chefs that are behind the business. Since the company thrives on producing a healthy product, the primary resource is the recipe for producing such a product.
Cost and Revenue Structures
The highest cost that Smart Sweets bears is the capital required for marketing the product across the country. Since the product niche is segmented across genders, the value must be appropriately amplified to the target market. Additionally, the company bears the cost of storing the inventory. A push-based model is applied in manufacturing, where Smart Sweets produces its gummy bears according to the projected sales (Zhang, 2017). The revenue generated comes from the sales of the sugar-free candies that the company has to offer.
The KICKSUGAR campaign that the company has initiated aims to eliminate sugar from diets by introducing a product that can help us consume candy products and ensures that health is intact. This venture is based on innovation's entrepreneurship theory (Teixeira, Costa, and Lisboa, 2019). A new product is introduced in the market, which is better in terms of health and gives the same level of satisfaction as the existing products available in the market.
Ethical Issues
Smart Sweets also had some ethical issues that must be addressed while analyzing the company's business model. The first issue that came into existence was the side effects of using the product. Since the gummy bears used a reasonably new recipe, the long term side effects that the candies may contain have not yet surfaced. The company was launched in 2016, the target market from its products expand to all genders, including children. The company might face an ethical concern regarding the premature availability of the product when sufficient evidence on its adverse effect on a children's body has not been gathered yet.






Business Model Canvas

Bakezilla












Key Partners

Key Activities

Value Propositions

Customer Relationships

Customer Segments

Advertisement Agencies for Marketing.
Delivery companies
Website Developers.
Event Planners and Vendors.

Baking Regular and Standardized products for regular customers.
Baking specific and customized bakery products for on-demand customers.
Delivery of the products.
A team of web developers to maintain the website.

Hygienic and Clean products.
On-time delivery.
Healthy products.
Advanced Customization.
Excellent Customer Service
Money-back guarantee on late delivery.
Online Delivery option.
Online customization and placement of order
E-commerce website availability.

Transparent and robust communication with the clients.
Customer service helpline from 9 is to 9 pm.
The customer service explains the procedure of ordering an online website on the helpline.
E-mail is provided to report any query or problem faced by the customer.

Locals of the particular city.
All genders, including children of sound age.
The primary target market includes teenagers, as they are more likely to visit a bakery.
Companies that organize events and parties.
Upper-class and upper-middle-class individuals.
People who go for quality and customization in a product rather than its cost.


Key Resources


Channels



1.Finance Team
2.Oven
3. Physical Outlet (Bakery)
4.Human resource-Bakers and Riders to deliver products.
5.Intellectual Properties include a brand name (Bakezilla), website, and Social Media Pages.
6. Marketing Team


Direct Channels are observed in the distribution of the products.
Less or no intermediaries to ensure proper customer satisfaction.
Delicate bakery items need to be carefully handled.


Cost Structure

Revenue Streams

The cost of maintaining the website.
Marketing and PR
Setting up the delivery system for the consumers
Advertisement cost.
Cost of Finance Managers and Accountants.

The revenue generated from sales of baked goods.
The revenue generated from the delivery of items (the company will acquire a separate fee for delivery across the area)


Business Model Canvas Interpretation
Bakezilla is a startup based in Australia. The company produces fresh bakery products from the finest quality, handmade bread. They also produce cakes that are customized according to the customer's will.
Customer Segments
The targeted customers that Bakezilla aims to reach spread across all genders, including children of sound age. Since cakes are a popular dessert among the Australian locals, the company forecasts a decent marketing response. Geographically, The company aims to reach the residents, and after receiving a sufficient response, the company will expand the business by franchising. Demographically, people in their teen ages are the company’s primary target market as they are more likely to visit a bakery (Halil...