Create a sustainable business model in which Bread's panettone can thrive to exceed the yearly demand quota to cover for yearly fixed costs whilst maintaining the high quality of the products and the experience sold and providing a comfortable earning model for our client.
How might we increase sales of a highly seasonal luxury product?
After completing the consulting work our alteration in business model estimated a 19% growth dependent on their existing customer base (over a year) and a potential 34% over 2 years expanding to a wider target audience.
After establishing the brief, we moved on to understanding the “design criteria”. The elements to not be overseen that guide the direction the project can and cannot take. Each category speaks of the items that our client won't let go, the project should include, could include and must include. This allows both the client and us as consultants to understand the foundations of the business and the flexibility to scale, expand and change.
After which we created several clusters of ideas identifying all the elements that could change and that would also impact the revenue stream of the business. These potential routes are kept confidential to protect the client's privacy.
After this process, the insights were translated to a new business model canvas which would regroup the design criteria and the desired experiences but also compare the models to suit our customers. In between these two steps, it was important for us to understand our client and for this reason, we analyzed all the data available from the e-commerce platform understanding the repeat customers, the biggest source of revenue and the potential winning strategies.
The new model created is as follows:
Financials are not included and information has been slightly modified to protect the customer