Business Model Analysis: Nano-Leaf's Approach to Market Segmentation

This report analyzes the business model of Nano-Leaf, focusing on its approach to the market. The report identifies the target audience, including architects, builders, and interior decorators, as well as institutional buyers like hotels and casinos. It emphasizes the importance of tailored patterns and the integration of Internet of Things (IoT) solutions, such as smart lighting. The report also highlights key business resources, like showcasing products to institutional buyers, and the value proposition of aesthetics and innovation. It also stresses the economic benefits compared to conventional options, and the use of product versatility to generate demand. References to relevant articles are provided to support the analysis.

Business Model for Nano-Leaf
Nano-Leaf Canvas and modular lighting wall solutions can mainly cater to the premium segment
of “Interior decoration solutions.” A segment vise description of the business model can identify
the following elements.
“The Specific Audience” for the products can be architects, builders and interior decorators in
the secondary market. Institutional buyers like the developers of the Hotels, casinos, resorts and
other commercial places can be targeted by generating strong messages in the form of
advertisement and personal demonstration of the product. The premium segment of the domestic
buyers can also show some interest in the product (Recart, 2011).
The company has to establish the “processes” of installing and designing tailor-made patterns for
the customers and it should be promoted as an additional necessary feature with the primary sale
of the product. The products like Universal remotes for the changing colors of the walls and
musical theme lights can also be present as an Internet of Things ( IoT) solutions. This unique
feature of the product also makes it fit for the IoT solution providers of the secondary and
primary markets. This IOT affinity can also promote it as a futuristic product and “process of the
servicing and maintenance” can also be added with an intention to generate a regular source of
income from a single time sale (Debelac, 2017).
The key business resources are the contact points where the company can showcase its products
among the institutional buyers. The value proposition of aesthetics, services, the latest innovation
in the field of wall designs can be promoted. Since the walls can change the colors and present
some dynamic themes, the value proposition of the walls can be presented as “umpteen multiple

colors and designs attained through one-time economic investment”. Comparative figures to
downsize the cost of conventional options like wall paint and others can also be presented as a
strong value proposition (Zwilling, 2015).
The novelty factor associated with the product can be utilized as a demand generation strategy to
cater to the markets. The market for interior decorations wants durable products that are in
vogue. Under the current circumstances, a demand generation strategy can be devised where the
versatility of the products in terms of offering a huge and easily adjustable color palate can be
utilized as the key feature.

References
Debelac, D. (2017). Developing a Great Business Model. The entrepreneur,
https://www.entrepreneur.com/article/176530.
Recart, J. (2011). How to Design a Winning Business Model. HBR, https://hbr.org/2011/01/how-
to-design-a-winning-business-model.
Zwilling, M. (2015). 7 Steps for Establishing the Right Business Model. The Entrepreneur India,
https://www.entrepreneur.com/article/242308.