Market Research and Business Model Canvas

Business model canvas is useful as a planning tool, particularly in the development of innovations . The aim of the concept developed by Alexander Osterwalder is to find effective business models and to develop it. The special feature of this concept is a modular-like approach. It combines many individual ideas to one working business model.

These are the core areas of the concept:

  1. Key partners
  2. Key activities
  3. Value proposition
  4. Customer relations
  5. Types of customers
  6. Key resources
  7. Sales and communication channels
  8. Cost structure
  9. Revenue Stream

Market research can be supportive if used in the process of business model canvas. Below we explain some starting points.

Types of customers

Whom do you want to actually sell your product or your service? Do you aim at a wide range or a particular subset? And does it pays off for you?
Market research provides answers to this questions. Among other methods, especially target group research and market segmentation can be helpful.

Value proposition

Behind each business idea, the desire or the need of a set of customers is crucial for your  innovation. Marketing research helps to analyze needs and determine the market potential.

Customer relations

What steps do you need to initiate to achieve a long-lasting customer loyalty?
Customer satisfaction analysis can deliver answers to this question.

Key activities and key resources

Which central activities must your company provide, so that the business concept works? What resources are essential for your business’ success? Innovation market research helps to find the answers.

Sales and communication channels

The best product does not lead to success when potential customers do not know about it. Thus a communication strategy that reaches your individual target group and draws attention to your product is important. Added to this is the question of the sales channels. Just like the communication, accessibility and availability to your target group must be given as well. In both of these questions, market research can help you, for example in the communications field with target group research (where can I reach my target group) or with advertising impact research (does my communication really work). Also in distribution, market research can provide important information and demonstrate success factors.

Revenue Stream

A well-thought-out pricing strategy, which brings about optimum revenue attainment, but also supports good customer relations is of course important.
Market research will help you when developing strategy, e.g. with price research and conjoint analysis.

Cost structure

Last but not the least, you need a budget, in order to be able to finance the planned measures, which will assist in detecting problems at an early stage and to be able to react to unforeseen situations.

Are you in a business model canvas process and need information, to effectively continue to perform this? Just contact us, we will be happy to advise you.