SBC102 case
SBC CASE STUDY – THE PROBLEMS OF MALNUTRITION AND OVERWEIGHT OF VIETNAMESE CHILDREN AND A NEW COMPREHENSIVELY NUTRITIONAL SOLUTION
Le Phan Minh Huy, Melius Vietnam
Nguyen Hung, Melius Vietnam
Le Boi San, Melius Vietnam
Tran Phuong Trang, Melius Vietnam
Nguyen Do Huyen Vi, Melius Vietnam
Nguyen Phuc Bao Han, Melius Vietnam
Tao Giang My, Melius Vietnam
Nguyen Ngoc Yen Nhi, Melius Vietnam
Trinh Yen Nhi, Melius Vietnam
Le Nguyen Xuan Dieu Phuc, Melius Vietnam
Dang Lu Hong Ngoc, Melius Vietnam
Vo Hoang Tam, Melius Vietnam
Tran Vu Thien Duc, Melius Vietnam
Ho Nguyen To Uyen, Melius Vietnam
Nguyen Ngoc Hong Han, Melius Vietnam
Pham Nguyen Bao Chau, Mentis Vietnam
Nguyen Ngoc Bao Han, Mentis Vietnam
Tran Xuan Linh, Coach of Melius Vietnam
1. INTRODUCTION
Around us, children face several disadvantages, particularly the difficulty of feeding, which leads to children not developing and growing up in an ideal setting. Malnutrition and obesity are major issues that can have a negative impact on children’s physical and mental development (UNICEF, 2019). The Melius Vietnam project was founded with the goal of raising healthy Vietnamese future generations through a well-balanced diet, promoting societal awareness about the significance of nutrition, and giving solutions to help parents and mothers care for and nurture their children.
Melius is an innovative social business that provides comprehensive and affordable nutritious meals for children in Vietnam through a cutting-edge app. Our key value proposition is to promote healthy eating habits among children, and reduce the rates of malnutrition and overweight, contributing to the United Nations’ goal of ensuring healthy lives and promoting well-being for all ages. Our unique approach and use of technology set us apart from traditional nutrition programs, related to customized menus and AR scanning technology. Through our app, parents can easily access meal plans that are tailored to their children’s age, health condition.
Melius Vietnam is a case study that uses the Business Model Canvas to create a business model. Alexander Osterwalder and Yves Pigneur created the Business Model Canvas as a strategic management tool. It depicts a company’s business plan visually by dividing it down into nine major building elements. These building blocks address different areas of a business, such as its value proposition, customer segmentation, channels, customer relationship, revenue streams, key activities, key resources, key partners, and cost structure.
2. THE DESIRABILITY OF THE PROJECT
In this case study, we will explore the importance of customer segmentation, the rationale behind selecting our specific customer segments, and how we plan to establish and nurture strong customer relationships. Additionally, we will discuss the channels through which we will engage with our customers, ensuring effective communication and engagement.
2.1 Customer segments
Our customer segments have been carefully chosen based on extensive market research and analysis. We have identified two primary segments: working parents seeking convenience and reliable nutrition guidance for their children and parents in low-income households who require accessible and affordable nutritional support. These segments align with our business goals and allow us to address the unique needs and challenges faced by each group. That helps us to both solve the needs of our customers and create great social values for the community.
2.2 Customer relationships
To build strong customer relationships, we will focus on personalized interactions and exceptional customer service. We aim to create a sense of trust, reliability, and empathy by actively listening to their needs and concerns. Our dedicated customer support team will provide timely assistance and guidance, ensuring a positive and meaningful experience throughout their journey with us. We will also seek feedback and suggestions from our customers to continuously improve our products and services.
2.3 Channels
To reach and engage our customer segments effectively, we will utilize a multi-channel approach.
Firstly, our mobile application will serve as the primary channel, offering a user-friendly interface and seamless access to our features and resources.
Additionally, we will leverage social media platforms (mainly Facebook) to share valuable content, engage in discussions, and provide updates on nutrition-related topics.
Finally, we will conduct nutrition workshops and events to establish face-to-face interactions, fostering a sense of community and trust; provides free online courses to help individuals understand the significance of nutrition.
In conclusion, by strategically selecting our customer segments, building strong relationships, and employing a diverse range of communication channels, we are confident in our ability to meet the unique needs of our customers. Our customer-centric approach will ensure their satisfaction, loyalty, and continued engagement with our products and services.
2.4 Draw customer personas and create value propositions.
To gain a deep understanding of our customers and create compelling value propositions, we conducted both qualitative and quantitative researchs. These research methods allowed us to gather valuable insights directly from our target audience and industry experts.
- Qualitative Research:
Through in-depth interviews with 24 moms and 3 nutritionists, we engaged with our customers to uncover their motivations, challenges, and aspirations. These qualitative research sessions provided rich, contextual information that helped us develop comprehensive customer portraits. We explored their experiences, preferences, and pain points related to nutrition and child well-being. By actively listening and probing, we gained valuable insights into their daily routines, decision-making processes, and unmet needs. These insights formed the foundation for crafting tailored value propositions that would resonate with our customers on a personal level.
- Quantitative Research:
To complement our qualitative research, we also conducted surveys to gather quantitative data from a larger sample size (more than 400 respondents). These surveys allowed us to quantify customer preferences, behaviors, and demographic information. By analyzing survey responses, we were able to identify trends, patterns, and statistical correlations. This data-driven approach helped us validate our qualitative findings, uncover additional insights, and refine our customer segments. Through this combination of qualitative and quantitative research, we obtained a holistic understanding of our customers and their needs.
- Customer Personas and Value Propositions
With the insights gained from our interviews, surveys, and data analysis, we created detailed customer portraits. These portraits were representative profiles that captured the key characteristics, motivations, and pain points of our target audience. By visualizing our customers’ attributes and preferences, we could tailor our products and services to address their specific needs effectively.
Based on these customer portraits, we developed unique value propositions that resonated with each segment. Our value propositions highlighted the benefits and solutions we offered, addressing the pain points identified during our research. By articulating the value our products and services would bring to their lives, we aimed to establish a strong connection and position ourselves as trusted partners in their journey towards better nutrition and well-being.
Figure 1 First Market Target customer persona (1)
Figure 2 Second Market Target customer persona (2)
Figure 3 Value proposition for Market Target customer (3)
Figure 4 Social Target Customer persona (4)
Figure 5 Value Proposition for Social Target Customer (5)
2.5 Value propositions
Let us delve into how Melius has strategically designed our value propositions to create meaningful social and economic impact for each target group:
Market Target Group: With the Melius app and workshops, we empower mothers and children by increasing awareness about the importance of nutrition. Our comprehensive nutritional care options and solutions address the specific needs of both mother and child.”
Social Target Group: Melius is committed to providing free information and expertise to our social target group through our applications and workshops. Additionally, we offer low-cost, nutritional meals to ensure access to healthy food for those in need.”
Investors and Partners Group: Melius offers a unique value proposition to investors and partners. Not only do we provide economic benefits, but we also satisfy their desire to contribute to society by promoting nutrition and well-being among the target population.
In conclusion, through the application of the Value Proposition Canvas, the team at Melius has successfully identified and addressed the needs of their market, social, and investor/partner target groups. By offering a combination of educational resources, comprehensive nutritional care options, and affordable meals, Melius has positioned itself as a valuable solution in the field of nutrition care. The team’s dedication to delivering economic benefits while making a positive social impact has garnered interest and support from investors and partners. The Value Proposition Canvas has provided a clear understanding of the value Melius offers to each target group, paving the way for a successful and impactful business model.
3. THE FEASIBILITY OF THE PROJECT
3.1 Key activities
Melius has been focusing on providing the best experience to clients through the project’s major operations with a customer attitude and understanding of the value that he can deliver to them. Melius has carried out the following initiatives through two primary channels: the Melius Application and the Nutrition Workshop.
To begin, raise community understanding of the importance of nutrition in everyday life. The significance of nutrition in everyone’s life cannot be overstated. Melius works hard to promote and spread a healthy lifestyle and nutritious meals to all people, especially children. This is the foundation for developing future generations in Vietnam and around the world.
Provide parents with options, ideas, experiences, and guidance on how to raise and care for their children. With the menu suggestion tool based on the child’s BMI, Melius wants to address one of the modern mothers’ main concerns. Furthermore, we seek to share information, skills, and experience in scientifically caring for and raising children through workshops and training.
Creating an online and offline network of mothers with the intention of transforming the community into a place where women may trade, exchange, and learn practical experiences. This will also be a place for women to keep cherished moments and memories of their baby, mother, and family. Allow Melius to be a part of your child’s growth.
3.2 Key resources
To successfully perform the duties assigned to us, we will require a large amount of resources in all areas. Melius Vietnam’s resources are currently separated into three categories: the Melius application platform, human resources, and other resources.
The first resource is all of the components associated with the Melius application platform, including the application’s database. Melius is a software application that offers clients options to assist parents in caring for their children. The software offers an appealing structure with simple categories, several sharing possibilities, and a vast range of documents.
Following that, human resources are an essential aspect of an enterprise’s success. Human resources ensure the seamless operation of Melius by utilizing technology, information, and other assets to provide a value proposition to consumers. Melius is organized into six departments: Board of Directors, R&D Department, Marketing Department, Event Department, Creative Solution, and Innovation Hub. Melius Vietnam aspires to be the leading mother and baby application in Vietnam, with skilled personnel and a strong sense of responsibility.
Finally, financial resources, stakeholder expertise, and external knowledge are other resources. These sources make a substantial contribution to the project.
3.3 Key partners
Besides, the Melius initiative cannot function without its key partners. The primary Melius partners are separated into three distinct groups, each with its own set of tasks and responsibilities. Melius’ key partners are divided into three groups: value-added advisors, application developers, and community builders.
Knowledge, databases, and healthcare services are provided through value-added consultants. Stakeholders include educators, nutritionists, dietitians, chefs, and academic researchers.
The second group is application developers. The stakeholders in this group are responsible for designing the project’s product in order to give the best possible client experience. They are suppliers of information technology, UI/UX designers, coders, programmers, and developers.
Finally, the Community development team aims to build an online and offline Melius community. They owe it to Melius to participate and help him build a wonderful community. Examples include key opinion leaders, key opinion consumers, content creators, and investors. We currently have and are backed by over 400 stakeholders from various fields. Furthermore, the Melius team is professionally backed by a team of nutritionists with many years of experience in the field.
4. THE VIABILITY OF THE PROJECT
In order to assess the viability of our project, it is crucial to examine our revenue streams and costs. By understanding how we generate income and manage expenses, we can evaluate the financial sustainability of our venture.
4.1 Revenue streams
Our primary revenue stream comes from the sale of our Melius app subscription, which offers a range of premium features and personalized nutrition plans. Through a subscription-based model, we can ensure a consistent and recurring revenue stream, as our customers pay a monthly or annual fee for continued access to our services. Additionally, we explore potential partnerships with relevant stakeholders such as nutritionists, and hospitals,… who directly contribute to the value of providing and consulting nutritional solutions for parents.
Overall, our revenue stream comes from 5 main sources:
- Premium package
- In-app advertising
- Workshop fee
- Affiliate marketing
- Investment from investors
4.2 Cost structure
- Building, maintaining, and upgrading the app: One of our key cost components is the investment in building, maintaining, and upgrading our Melius app. This includes the expenses associated with software development, user interface design, server hosting, and regular app updates to enhance functionality and user experience. We allocate resources to a skilled team of developers, designers, and quality assurance specialists to ensure the app remains robust, secure, and up-to-date with the latest technological advancements.
- Marketing and Advertising: To reach our target audience and create awareness about our app, we allocate a portion of our budget to marketing and advertising activities. This includes digital marketing campaigns, social media promotions, content creation, and collaborations with influencers and nutrition experts. By effectively promoting our app through various channels, we aim to attract new users and expand our user base.
- Payment for Nutritionists/Hospitals: As part of our commitment to providing expert nutrition guidance, we collaborate with nutritionists and hospitals. We incur expenses associated with engaging these professionals, including consultation fees and payments for their expertise and contributions to our app’s content. By partnering with qualified nutritionists and reputable hospitals, we ensure the accuracy and reliability of the information and advice provided to our users.
- Workshop Organizing Expense: To engage with our target audience and create additional value, we organize workshops on healthy lifestyles and nutrition. These workshops incur expenses related to venue rental, event coordination, materials, and facilitators. Through these workshops, we aim to educate parents and caregivers about the importance of nutrition and provide practical guidance on how to incorporate healthy habits into their children’s lives.
- Volunteering Expense: To support our mission of improving child nutrition in underserved communities, we allocate resources to organize volunteering activities. These expenses cover logistics, training materials, and support for volunteers who actively engage with local communities, conduct nutrition awareness campaigns, and provide hands-on assistance. By leveraging the power of volunteers, we extend the reach of our impact and create meaningful connections with communities in need.
- Employee Wages: Our team is comprised of skilled professionals who contribute their expertise to the development and growth of our project. Employee wages constitute a significant portion of our cost structure as we strive to attract and retain top talent. We recognize the importance of nurturing a motivated and dedicated team that shares our vision and values, as they play a crucial role in driving the success of our project.
- By carefully managing and optimizing these cost components, we ensure that our resources are effectively utilized, enabling us to provide a high-quality app, reach our target audience, collaborate with nutritionists and hospitals, organize workshops, engage in volunteering activities, and maintain a talented team. This cost structure supports our commitment to delivering valuable services and making a positive impact on child nutrition and overall well-being.
4.3 Break-even point
Based on our revenue and cost structure, the Melius Vietnam project will approach the break-even point in the second year with more than 2000 users at that time.
5. CONCLUSION
In conclusion, our team applied the Business Canvas Model to the project to create a suitable business model. This allowed us to understand who our target customers are, what value we can provide to them, and the tangible resources we have at our disposal. The team also outlined our strategies to capture and generate value for ourselves. By utilizing the Business Canvas Model, the team gained valuable insights into our target market, refined their value proposition, and established a clear plan to deliver and capture value. This approach provides a solid foundation for the project’s success and ensures alignment with customer needs and market dynamics.
6. REFERENCES
UNICEF (2019) Poor diets damaging children’s health worldwide, warns Unicef, UNICEF. Available at: https://www.unicef.org/timorleste/press-releases/poor-diets-damaging-childrens-health-worldwide-warns-unicef (Accessed: April 28, 2023).
Cypris Website (2022) What is primary data and secondary data in research methodology, Cypris Website. Available at: https://blog.cypris.ai/what-is-primary-data-and-secondary-data-in-research-methodology/ (Accessed: April 28, 2023).
George, T. (2023) What is secondary research?: Definition, types, & examples, Scribbr. Available at: https://www.scribbr.com/methodology/secondary-research/ (Accessed: April 28, 2023).
UNICEF (2019) Báo Cáo Tình Hình Trẻ em Thế Giới Năm 2019, UNICEF Việt Nam. Available at: https://www.unicef.org/vietnam/vi/b%C3%A1o-c%C3%A1o/b%C3%A1o-c%C3%A1o-t%C3%ACnh-h%C3%ACnh-tr%E1%BA%BB-em-th%E1%BA%BF-gi%E1%BB%9Bi-n%C4%83m-2019 (Accessed: April 29, 2023).
UNICEF (2019) Feeding my child – unicef.org, UNICEF.ORG. Available at: https://www.unicef.org/afghanistan/sites/default/files/2020-11/Feeding-my-child-mothers-SOWC2019-companion-report.pdf (Accessed: April 29, 2023).
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