Create a 6 page essay paper that discusses Appraise the Lean Canvas as a model for start-up businesses. Provide judgments and interpretations for each element of the model.
Here the idea is not to make a perfect business plan, because a perfect plan is a myth. Most of the companies’ make an initial business plan which changes as one grows. Perfection is not the goal. The idea is to prepare a business plan and start a business with the available resources at hand. In this study we will take a start-up of a manufacturing company like a car manufacturing company named Drizzler which will cater to Indian market. Drizzler will import most of its part from outside India and assemble in India. Discussion Customer Segment Possible Customer List of this start-up is anyone who wants to buy a car to use it. But being a start-up business will cater to middle income level families. In India the middle Income population is rising and their income level is also rising (Osterwalder and Pigneur, 2013, p. 123). India being a developing country, its GDP is growing at a healthy rate as compared to the western developed economies. Hence the needs of the middle income families are also rising day by day. They demand products which were previously used by Upper level people. Drizzler will cater to such customers (Ramaswamy and Namakumari, 2009, p. 234). Value Proposition For a middle income family those who want to buy a car, they are driven mainly by desire to own a car. Drizzler will create a value for the segment by manufacturing car which will not be priced too high and having features which will meet the expectation of regular people. Hence if it can satisfy the need for safety, and the esteem needs, then it will cater to the need of average household (Nielsen and Lund, 2012, p. 52). The most important customer segment is the middle income households who wants a bike but can afford a car. It should cater to such families who want to drive car and have a feeling to owning a car and make it their first family car. This car will give them durability and safety which they seek (Kaplan, 2012, p. 42). It is another factor considered important to middle income families. Hence they should give a mileage of about 20-25 km/litre. The seating capacity should be for 5 persons with maximum speed of 200 km/hour. Channels The car will be sold through independent sales channel all over India. Such sales channel includes retail dealers present throughout India. Nowadays in India there has been a trend of increasing sales of car in the Tier 2 and Tier 3 cities. It indicates that they must have their presence of distribution channel in those cities. They will sell their products through retail dealers. They must use the advertisement which shows the value proposition it will deliver to the customers (Dent, 2011, p. 141). Through mediums like TV, newspaper, auto magazines and shows on car, it will help them drive their value proposition to the clients. They must also maintain a website which will clearly state the features and the local dealer present. Customer relationships The key to any business is the ability to know what the customers want. Drizzler will maintain a strong and fast customer relationship programs. Drizzler will run a customer loyalty program. Drizzler will use a magnetic card for anyone who buys the product. When a customer buys a car, he gets points.