PROBLEM:
Every company has management strategies. Besides it, marketing, buying, merchandising and etc. strategies there are. These are all for the companies’ image and higher sales. In this situation, company should be examined their key partners, key activities, key resources, value proposition, customer relationships, channels and customer segments from their business models or they should create a new model. In the present case, Business Model Canvas can analyze the whole steps of firms. In this project, we will analyze the Mudo’s customer segments from the existing Mudo Exclusive Card customers profile according to the Business Model Canvas of Osterwalder. Why we discuss from the Osterwalder’s Business Model Canvas is the global standard used by million companies and we can use the Canvas to design, challenge and pivot our company strategies.
Mudo is a ready wear brand and there are many departments on the company. And the same time, there are two sub-brands. One is Mudo Collection and the other is Mudo FTS64. Every departments are close-knit and every steps of departments, it affects the sales and brand image from the customers. The reason why I choose this project, I am a employee of Mudo and in our Mudo Card data, there are millions of existing customer data. From this existing customer profile data, we can understand customer segment and we can dominate to target customer who we want to reach. If we penetrate the customer segment of Mudo, we can understand our target market very well and we can develop a strategy for Mudo’s business model. This problem is important for the right addressing to the our target customer, existing customer segment and development of the Mudo.
CONTEXT:
“A business model is an "abstract representation of an organization, be it conceptual, textual, and/or graphical, of all core interrelated architectural, co-operational, and financial arrangements designed and developed by an organization presently and in the future, as well as all core products and/or services the organization offers, or will offer, based on these arrangements that are needed to achieve its strategic goals and objectives.” This explanation is from wikipedia and this is the general definition of the business model. Briefly, business describes the rationale how an organization creates, deliver and capture value. In the types of business models, Business Model Canvas, Osterwalder had been examined in nine different steps and categories. And the Business Model Canvas is a strategic management for developing new or existing business models of the companies. For developing and present a new strategy to Mudo, in this project; Mudo’s existing customer profile will help to analyze the Mudo’s customer segments according to the Business Model Canvas.
In the past approaches, there is no research paper about the customer segment of Mudo. Research papers are generally talking about segmentation according to the market types (niche market, mass market, etc.) In this project, we will study on the one brand and there are small informations about customer profile. We will work on demographic features (age, gender, occupation, characteristics, etc.), basket average, cities, shopping distribution amounts, shopping hours, distribution of sizes by year.
Examined articles about customer segments show that the value proposition is the most important thing in the business models and every step works for the create value proposition. It solves the customer problem and their needs. But the first step is the customer segmentation because it is the primary activity of the CRM value chain, sale strategies, improve customer relationships, private campaigns and etc. At the end of the model in every step of business model, firms are generally creates value for a specific customer segment.
APPROACH:
Tackling problem of Mudo will be analyze with the existing Mudo Card customer profile datas. According to our datas, we will make segmentation and if there is a deviation from the target customer segment, we will suggest a new marketing strategy. There is a customer profile analysis but in women and men categories, there is no specific target customer segmentation analysis with the charts, and when we will discuss this topic, there can be a new sub-segmentations, this is different from the past works.
EVALUATION:
In our available datas, these are gaugeable. Datas will be compare by year and difference between years will be examined. In the final, changes are in what way, what percentage in changes previous year, in which category (men and women) there are big difference and is there a relationship between changes and design or another things (price, store arrangement, product quality, employee quality, and etc.).
SCOPE:
At the final of the project, after examining the customer segment profile, there will be a true target customer profile data. According to this data, at the Mudo, designs, campaigns, visual merchandising, pricing strategies, marketing strategies can be problematic issues. Mudo may need to take precaution and we can produce new stretegies for the problematic departments to gain a real target customer segment.
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