Business Model Canvas   |   Customer Value Proposition

Course: Business Models
Instructor: Maaike Doyer, CFO & Strategy Designer, Business Models Inc

Team: Sam Irons, Donna Kwok, Ai Miyazawa


THE PROJECT

Palace Market is a family-owned business located in Point Reyes, CA.
The store owner, Mary, and her daughter Camille, tasked our team with
finding a way to adapt to their continued growth that has resulted from
an increase in tourism in the area. However, they wanted to stay true
to the unique and special vision Mary’s mother, Dorothy, originally had
for Palace Market. She had a love for both the people and community.


RESEARCH METHODS

Secondary Research
history, location, demographics, competition

Primary Research
stakeholder interviews, observation


CURRENT BUSINESS MODEL


CHALLENGES

Palace Market exists in a unique geographical and cultural intersection.
With the continual growth in the number of visitors coming to the area,
any business model must be seen as benefiting the entire community and
all of the various stakeholders.


COMPETITION

In addition to Palace Market’s relationship with the community, its
geography plays a significant role in its continued resiliency. The
nearest direct competition is an hour round trip away. This placement
is both a strength and weakness. There is limited direct competition,
but also higher costs to doing business.


PAIN POINTS

Through our research and observations we identified a few pain points:

● Need to know customer needs
● Store improvements
● Seasonal fluctuations
● Organizational structure
● Friction between locals and tourists
● Remote location


DESIGN CRITERIA


PROCESS

Ideation
We initially came up with a variety of ideas that we clustered
into high level categories:

New Business Models
We took a deeper dive into 3 out-of-the-box business models,
looking at the extreme of each before scaling back and narrowing
them down to our final model.

Validation and Research
We conducted secondary researches, observation, and stakeholder
interviews for both initial research and concept validation phases.

Refinement
We pulled from both the cooperative and sustainability models
to develop our final solution.

How can we involve the community, develop customer loyalty,
and employee engagement as a co-op model does, and move the
market toward being more sustainable?


THE PALACE FAMILY MODEL

3 value propositions met through 3 key activities:


Conclusion
Our recommended business model addresses both the community’s
desires and values, while taking into account the preservation
Point Reyes and the resiliency of the business.