Business Model
What do we do?
“Little Green Steps provides parents who just had a baby with a periodic
package which grows with the baby. The package contains all the necessary garments that a
baby needs. But not only that, Little Green Steps also takes back and recycles the clothes.
This creates a cheap, fun and carefree solution for the parents and an environmental friendly
solution for the earth.”
What sets Little Green Steps apart from any other ways of buying baby clothes is
the way we deliver and recycle the clothes. Because we take back the used clothes,
examine them, clean them and send them to a new customer we can produce less
clothes than regular stores. This lowers the production cost which is great for the
company and for the customer. But maybe even more important is that re-using
clothes instead of throwing them away is great for the environment. This difference
with normal brands and stores gives Little Green Steps a very positive place in
today’s society.
Little Green Steps is not only better for the society but also for the individual
costumer. The way the clothes are delivered on a regular basis with constant and low
costs is ideal for the parents with a new baby. All this gives Little Green Steps an
unique place in the market where different groups can benefited from.
Value proposition
Above we already mentioned what makes Little Green Steps a better solution that
regular stores. Here we will go more into which problems we solve.
For parents with a new born baby the first year is already a very hectic year. On top
of all the new experiences you get the stress of constantly buying new clothes
because the baby has overgrown them all at once and you also have to pay a lot at
once.
We created the solution where you can pay a small fee monthly (which cumulatively
is less than you would pay normally) which already is a huge relieve. The only thing
you than have to do is go to the site, give up what clothe size your baby has and
what kind of clothes you want and a box with all the right clothes will automatically be
delivered to your home and you already payed for it without even noticing.
On top of that you will receive small free gifts in ever box either for your baby or for
yourself as a parent.
All this already sound too good to be true but with subscribing to our service you will
also be helping improving the environment because all our product are made of
organic material and are being reused and recycled.
So as you can read we have three unique selling points (more convenient, cheaper,
and environmental friendly) why a subscription to Little Green Steps would be a
batter solution then any other way of buying you baby new clothes.
Customer segments
Business to costumer
Our customers solely exist of parent or guardians of new born baby´s. But within this
target group we target the needs of 2 subgroups. The first of which is parent with a
low income who benefit from constant and low expenses. The second one is parents
who care a lot for the environment and want to help improving it. Even though we
promote more actively toward the goals of those two groups we reach all the
parents/guardians of new-born’s with these benefits since they are beneficial for
everyone.
Business to business
For business cooperation’s we target companies who want to advertise directly to the
parents of new born baby’s since we can offer that 100% of the advertisement reach
these parents. This is possible because that is our only target group.
Another thing we can offer to companies who make baby products is to retail there
product via our site so they also can reach their target group very effectively.
Customer relationships
First of all we strive to deliver a good product. If the customer likes our product
he/she will keep using our service. This is our most important target.
But to keep them more attracted to our company we try to make deals with other
companies to put small gifts in the boxes as free advertisement. This way the
customer gets something extra in every box.
Next to these physical advantages we also want the customer to get an emotional
connection with our company. We will inform the costumer about the progression of
the environment and how they are helping to improve it so that they feel happy and
satisfied to be helping by being subscribed to our company. There is also an option
to create a chatroom/form on the website where you can meet other new parents
causing a little community within our company.
For businesses: We will actively approach other companies for cooperation’s such
ass advertisement.
Channels
Our product will reach the customers via our website, this website will of course be highly promoted. To make our website more easily accessible via mobile we will also build an app. Our product won’t be available in stores because the boxes will be delivered at your home.
Key activities
Our key activity is delivering the service which consists of the following four tasks:
Retrieving the clothes, Washing the clothes, inspecting the clothes and Sending the
boxes. The most effort will be in washing and cleaning of the clothes. Retrieving the
clothes and sending the boxes will mostly only be sorting since the shipping itself will
be outsourced.The manufacturing of new clothes wont be one of our activity. We want to make a
deal with an already existing environmental manufacturer since our sales would be to
low to cover the cost of our own manufactory .
An additional but very important activity is the promotion of our brand so the number
of customers will grow.
Key resources
The resources we need to deliver our product an service are the following:
The clothing, cleaning and inspecting facility, packaging and transportation.
To accomplish all the activities we need personnel at all these tasks.
The resource for the clothing is the clothing self which we receive from a
partnering clothing manufacturing Company.
For the reception, cleaning, inspecting and cleaning of the clothes we need
a Facility and personal, as mentioned before. For cleaning and packaging
we also need equipment and materials.
to market the system and make it work we need a website. To run this
website we need servers and staff (web developers and data management)
to keep the site running.
Key partners
Our biggest partner will be the clothing manufacturer. All our new clothing
items will be provided by them so our business relies on a manufacturer.
Another Important partner is a transport company such as PostNL or DHL.
With this partnership we can deliver and retrieve the boxes for a low price.
We also want promotion deals with several companies. Promotion deals for
our marketing so that we get enough customers to make our business
profitable.
Revenue streams
- Clothing box subscription
- Additional product sales
- Advertisement for other company’s
- 60% revenue of sales of other brands via Little Green Steps
Cost structure
- Clothing (import)
- Transport
- Cleaning and inspection
- Promotion
- Overhead
