Business Model Canvas: Ajoje Lolaye Bakery case study

Every great business needs a roadmap. In this case study, business model canvas is presented as tool which helps to grasp how a business is structured and how it intends to achieve its goals. 

Ajoje Lolaye Bakery is a rising star in Lagos’s bustling bread and pastry market. The bakery’s founder, Mrs. Olowolayemo, approached Balance Planner for guidance on expanding her business, we knew the Business Model Canvas would be the perfect tool to visualize her goals and refine her strategy.

The Scenario

Ajoje Lolaye Bakery started two years ago with a simple mission: to deliver freshly baked, affordable bread and pastries to families in Lagos. While their products gained popularity, the bakery began facing challenges. Rising costs, stiff competition, and the need to scale were causing Mrs. Olowolayemo sleepless nights. She needed clarity on her business operations and a plan to attract more customers while staying profitable.

Using the Business Model Canvas, Balance planner worked with Mrs. Olowolayemo to analyze and map her bakery’s key elements, from understanding her loyal customers to refining her revenue streams. The process turned complex ideas into a simple, actionable strategy.

How Ajoje Lolaye Bakery’s Business Model Canvas Came to Life

Through a collaborative session, we uncovered vital insights:

  • Customer Segments: Families in Lagos who prioritize fresh, affordable bread and local stores who rely on daily supplies.
  • Value Propositions: Ajoje Lolaye Bakery prides itself on using 100% organic flour sourced locally, ensuring fresh and healthier bread options.
  • Channels: The bakery’s products are distributed through its in-store outlet, delivery service, and partnerships with local supermarkets.
  • Customer Relationships: Personalized service through free samples for new customers and loyalty cards for returning patrons helped strengthen bonds.
  • Revenue Streams: Beyond daily bread sales, weekend pastry classes added an unexpected revenue source.

On the operational side:

  • Key Resources: Trained bakers, reliable delivery bikes, and premium-grade equipment formed the backbone of the bakery’s operations.
  • Key Activities: Regular production, marketing campaigns (like “Pastry Friday”), and community engagement were essential.
  • Key Partnerships: Flour suppliers in Ogun State and a logistics company ensured a steady supply chain and smooth deliveries.
  • Cost Structure: The major expenses were raw materials (50% of costs), wages, and electricity, but bulk buying from suppliers significantly reduced costs.

The Result

The Business Model Canvas breaks a business into nine interconnected parts.

By using the Business Model Canvas, Mrs. Olowolayemo could clearly see areas to improve and grow. She identified untapped customer segments, such as catering services for local events, and refined her cost structure to increase margins. The bakery is now planning to open a second location.

Ready to Map Your Business Success?

The completed Business Model Canvas of Ajoje Lolaye Bakery’s shows how the different parts of the business comes together. If you will like to create your own, click here to download a blank Business Model Canvas template.

Need expert guidance like Ajoje Lolaye Bakery? Reach out to Balance Planner today for personalized consultations. Let us turn your business ideas into an efficient reality. 🚀

Leave a Reply

Your email address will not be published. Required fields are marked *