Value Proposition.ppt

Business Value Proposition

1. BUSINESS VALUE PROPOSITION

2. Value Proposition--
Avaluepropositionisapromiseofvalueto
bedeliveredandacknowledgedandabelief
fromthecustomerthatvaluewillbe
appealedandexperienced.Avalue
propositioncanapplytoanentire
organization,orpartsthereof,orcustomer
accounts,orproductsorservices.

3. Explore Product Categories for Value
Proposition--
Apparel Fashion
Agriculture
Auto Parts
Furnitures
Chemicals

4. Explore Product Categories for Value
Proposition
Handicrafts Gifts
Industrial Supplies
Machine Tools
Computer PC
Jewellery

5. Explore Product Categories for Value
Proposition
AyurvedicProducts
Electronics
Consumer Electronics
Packaging Material
HousewareProducts

6. Explore Product Categories for Value
Proposition
Real Estate Tour Travel
Packers Movers
Financial Legal Service
Event Organizer Services
Architecture And Interiors

7. Value Proposition---

8. Value Proposition--
FROM “VALUE CUSTOMER PROPOSITION” …
TO “VALUE BUSINESS CHAIN” & “VALUE MARKETING
STRATEGY”

9. Value Proposition--
VALUE
PROPOSITION
VALUE
COMMUNICATI
ON
(“Promotion/M
edia”)
VALUE
CREATION
(Product/Brand
”)
VALUE
DELIVERY
(“Place/Channe
ls”)
VALUE
COSTING
(“Price”)
OPERATIONS
MANAGEMENT & MARKETING
(“Through-put”)
COMPANY
VALUE-ADDED
OUTBOUND LOGISTICS
(“Output”)
CUSTOMER
VALUE
RECEIVED
INBOUND
LOGISTICS
(“Input”)
SUPPLIER
VALUE
RESOURCES
THE “VALUE
CHAIN”

10. Value Proposition--
Imagineaworldwhereeveryoneisinsales.Well,thefactis,
everyoneisinsales,insomefashion.It'snotjustthesalesman
atthecarlotorcomputerresellerwhoqualifies
Maybeyouaretryingtosellideastoyourspouseforthenext
holiday;
Maybeyou'repitchinganewprojecttoyourboss;
Maybeyouareheadhuntingsomeonetojoinyourfirm.It'sall
selling,and,whateveryouroffer(product,idea,projectorjob)
it'simportanttohaveareallystrongvalueproposition.
Avaluepropositionisashortstatementthatclearly
communicatesthebenefitsthatyourpotentialclientgetsby
usingyourproduct,serviceoridea.

11. Value Proposition -Features
It"boilsdown"allthecomplexityofyoursalespitchinto
somethingthatyourclientcaneasilygraspandremember.
Itneedstobeveryspecific:
Simplydescribingthefeaturesorcapabilitiesofyourofferisnot
enough.Yourvaluepropositionmustfocuscloselyonwhat
yourcustomerreallywantsandvalues.Yourcustomerwantsto
solveproblems,toimproveonexistingsolutions,tohavea
betterlife,buildabetterbusinessordomore,better,faster.and
soon.

12. Value Proposition -Features
Creatingavaluepropositionisausefulmarketing
techniquethathadwiderapplicationthanproduct
marketing.Whateveryouare'selling'andtowhom,a
valuepropositionisuseful,ifnotessential,tool.
Whetheryour'customers'areexternalcustomers,
employees,co-workersorevenyourfamily,theideais
tohelpthemseethespecificvalueyourofferbringsto
them.Andbydoingso,youwillgrabtheirattentionin
suchawaythattheyknow:"Yes,that'srightforme".

13. Creating a great Value Proposition
"WhyshouldIbuythisspecificproductoridea?"asksyour
customer:Andyourvaluepropositionmustanswerthis,ina
compellingway.Increatingagoodvalueproposition,thetrickis
toknowyourproductorideawell,knowhowitcompareswith
thoseofyourcompetitorsand,veryimportantly,putyourselfin
yourcustomer'sshoestofindtheanswers.
Yourvaluepropositioncanbecreatedstep-by-step,byanswering
aseriesofquestions.Onceyouanswerthese,youhavethe
ingredientstocreateavaluepropositionthatanswersyour
customer'squestion:"WhyshouldIbuythisproductoridea?"

14. Value Proposition -Features
"Creating a Value Proposition
Communicating the Benefits of Your Product, Service or Idea,
Simply and Clearly

15. Steps in creating Value Proposition
Step1:Knowyourcustomer
Thinking from the perspective of your customer, ask the following:
Who is he or she? What does s/he do and need?
What problems does s/he need to solve?
What improvements does s/he look for?
What does s/he value?
Tip: If you don't know, ask! It's easy to try to second guess what
your customers want. And very easy to get it wrong.
So do some market research: This could be a simple matter of
asking customers directly, or organizing a focus group or surveys.
'Market research' is not just for external customers, it works for
other 'markets' too: Depending on your product or idea, your
'market' could be employees, colleagues, or even your spouse

16. Steps in creating Value Proposition
Step 2: Know your product, service or idea
From your customer view point:
How does the product, service or idea solve the problem or offer
improvement?
What value and hard results does it offer the customer?
Tip: Include numbers and percentages
To grab your customer's attention even faster in this financially-
oriented world, your value proposition should also speak
percentages and numbers: How much will your customer gain,
save or improve? How much more efficient will he or she
become? How much safer, smarter, faster, brighter will the
solution be? And so on.

17. Steps in creating Value Proposition
Step 3: Know your Competitors
Keep on thinking from the perspective of your customer, and ask:
How does your product or idea create more value than competing
ones?
Tip: This can be quite difficult. See our articles on USP Analysis,
Core Competence Analysisand SWOT Analysis for useful tools
for doing this.

18. Steps in creating Value Proposition
Step 4: Distill the customer-oriented proposition
The final step is to pull it all together and answer, in 2 or 3
sentence: "Why should I buy this specific product or idea?"
Try writing from the customer viewpoint by completing the
following, (also include the numbers and percentages that
matter!):
"I want to buy this product or idea because it will..."
"The things I value most about the offer are..."
"It is better than competing products or ideas because..."

19. Steps in creating Value Proposition
Step 5: Pull it all together
Now, turn around your customers 'answer' from step 4 into a value
proposition statement.

20. Examples
Example
Here's a simple example. Let's say that you sell lawn mowers, and
your customer is someone with a large back yard.
Step 1: Know your customer
Your customer is a businessman with quite a large house, who
likes the "meditative feeling" of cutting his own lawn, but gets
bored by the job when it takes too long.
He's looking for a good quality of cut, for the job to be done
quickly and enjoyably

21. Examples
Step 2: Know your product or idea
The product is a ride-on mower with a 25 horsepower (powerful)
engine and 45 inch (wide) cutting blades.
Step 3: Know your competitors
The mower goes faster and cuts wider than the competition.
Step 4: Distill the customer-oriented proposition
"Our mower cuts your grass in 50% of the time of 'big brand'
mowers in its class. And it leaves the lawn looking beautiful too!"
If you haven't already looked at our USP Analysis article, do so
now –it will show you how, with a little research, you can identify
how your product or service is unique. It's also worth
understanding the various strategic positioning options that will
underpin your value statement

22. ThankYou