Let’s continue the topic of the BMC with an example of the Mr. DIY Business Model Canvas (BMC). This example covers the 9 key blocks: Customer Segments, Value Propositions, Channels, Customer Relationships, Revenue Streams, Key Resources, Key Activities, Key Partnerships, and Cost Structure.

Business Model Canvas (BMC) of Mr. DIY: A Retail Strategy Dominating the Malaysian Market

The Business Model Canvas (BMC) is a useful tool for understanding business strategy and operations in-depth. In this article, we will analyze Mr. DIY, a well-known retail chain in Malaysia, using the nine blocks of the BMC and exploring the company’s background.

Mr. DIY Background

Mr. DIY is one of Malaysia’s largest retail chains, offering a wide range of daily essentials including hardware tools, household products, accessories, and much more at affordable prices. Founded in 2005, Mr. DIY started as a small store on Jalan Tuanku Abdul Rahman, Kuala Lumpur, and has rapidly grown into a renowned retail brand not only in Malaysia but also in several other Asian countries.

On October 26, 2020, Mr. DIY was listed on Bursa Malaysia, marking one of the country’s largest listings for that year. This listing not only reflects the success of their business but also opens opportunities for further expansion by attracting more investment and enabling Mr. DIY to strengthen its position in the retail market.

Mr. DIY BMC Example

Let’s discuss Mr. DIY’s BMC example, covering these 9 key blocks:

1. Customer Segments

This block refers to the customer groups targeted by Mr. DIY and how the business meets their needs.

• Household Consumers: Individuals looking for daily household items such as kitchenware, cleaning tools, and other necessities.
• DIY Enthusiasts: People interested in DIY (Do It Yourself) projects, seeking tools and materials for their tasks.
• Small Business Owners: Shop or small business owners needing affordable products for daily operations.
• Budget-Conscious Shoppers: Customers looking for cost-effective alternatives for daily necessities, without compromising on quality.

2. Value Propositions

This block covers the unique value propositions Mr. DIY offers to different customer segments.

• Affordable Prices: Offering a wide range of products at competitive prices, suitable for budget-conscious customers.
• Wide Product Range Under One Roof: Mr. DIY provides a vast selection of daily necessities, making it convenient for customers to find all they need in one place.
• Quality Products: Despite offering low prices, Mr. DIY ensures that its products meet certain quality standards.
• Easy Accessibility: With numerous outlets across the country, customers can easily access Mr. DIY stores for the products they need.

3. Channels

Channels refer to how Mr. DIY delivers its value to customers and how they interact with the business.

• Physical Outlets: Mr. DIY operates hundreds of outlets across Malaysia, located in strategic areas like malls and residential neighborhoods.
• E-commerce Platforms: Mr. DIY also sells products via e-commerce platforms like Shopee, Lazada, and their own website, enabling customers to shop online.
• Product Catalogs: Offering both online and physical product catalogs for customers to browse and select from the available items.
• Social Media and Digital Marketing: Utilizing social media and digital campaigns to promote products, offer discounts, and attract more customers.

4. Customer Relationships

This block explains how Mr. DIY builds and maintains relationships with its customers.

• Efficient Customer Service: Providing friendly and efficient customer service at every outlet to ensure a pleasant shopping experience.
• Promotions and Special Offers: Offering periodic discounts and promotions, including year-end sales and special offers for loyal customers.
• Loyalty Programs: Implementing loyalty programs that reward frequent customers with additional discounts or early access to promotional sales.
• Customer Feedback: Collecting and analyzing feedback through various channels to improve services and products.

5. Revenue Streams

This block identifies how Mr. DIY generates revenue from different sources.

• Product Sales: The primary revenue source comes from selling retail products in physical stores and online platforms.
• Online Retail Sales: Income generated from online sales via e-commerce platforms like Shopee and Lazada, as well as the official Mr. DIY website.
• Promotional Sales: Revenue from promotional offers that attract customers to buy more products.

6. Key Resources

Key resources refer to the assets and resources needed for Mr. DIY to operate and deliver value to customers.

• Supplier Network: A strong and extensive network of suppliers to source quality products at low costs.
• Retail Infrastructure: A vast network of physical outlets nationwide along with a strong online presence.
• Human Resources: Well-trained staff in retail management, customer service, and marketing.
• Logistics and Distribution System: An efficient logistics system to ensure products reach outlets on time and in good condition.

7. Key Activities

Key activities include the essential tasks Mr. DIY undertakes to run its business and meet customer needs.

• Stock and Inventory Management: Streamlining inventory management to ensure products are consistently available in all stores.
• Store Operations: Managing daily store operations, including sales, customer service, and maintenance.
• Marketing and Promotions: Executing marketing strategies to attract new customers and retain existing ones through various channels.
• Store Expansion: Planning and opening new outlets in strategic locations to reach more customers.

8. Key Partnerships

This block outlines the strategic partnerships that are crucial for Mr. DIY’s operations and growth.

• Product Suppliers: Local and international suppliers providing quality goods at competitive prices.
• E-commerce Platforms: Partnerships with e-commerce platforms like Shopee and Lazada to expand online market reach.
• Mall Operators and Property Developers: Collaborating with property developers to secure strategic locations for Mr. DIY outlets, such as popular shopping malls.
• Advertising Partners: Working with advertising agencies for large-scale and effective marketing campaigns.

9. Cost Structure

The cost structure includes all the expenses required to run Mr. DIY’s business.

• Store Operating Costs: Maintenance costs for outlets, staff salaries, rent, and utilities.
• Inventory Costs: Expenses for purchasing products from suppliers, which need careful management to ensure profit margins.
• Marketing and Advertising Costs: Investments in marketing campaigns and advertising to attract customers and boost sales.
• Logistics Costs: Shipping and distribution costs to deliver products to all outlets and online customers.

Conclusion

Mr. DIY has successfully built a strong and competitive business model in the Malaysian retail market. Through the Business Model Canvas (BMC) analysis, we can see how Mr. DIY employs effective strategies to meet customer needs, generate revenue, and grow their business. The nine blocks in the BMC provide a comprehensive view of how Mr. DIY continues to stay relevant and succeed in this increasingly competitive market.

Credit: Image by freepik