Proposition
Sanna Choudhary sannakc@gmail.com School of Electrical Engineering and Computer Sciences
National University of Sciences and Technology
Agenda
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•
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What is a value proposition?
Examples
Dimensions of value
Design Process
Key Takeaways
A value proposition is a statement of the unique benefits delivered by your offering to the target customer
A value proposition is a hypothesis that your offering will bring certain values to a target customer. *
* Like any hypothesis, it needs to be rigorously tested in the lab (read: marketplace) before money is put into scaling.
• Your value proposition must differentiate you from competition
Value Proposition is Not:
An elevator pitch: a 30 second conversation starter
• I uy dead agazi es…
• We u -thi k arketi g…
• We ha e de eloped the Brita filter for iogas… Value Proposition is Not:
A tag-line: an ad compliment
•
•
•
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We k o o ey
What Happe s Here, “tays Here
The City That Ne er “leeps
Built for the road ahead
Value Proposition is Not:
A mission statement: a statement of the purpose of your business.
•
NU“T’s issio is to e o e a o prehe si e, research-led university with a focus on Technology,
Innovation and Entrepreneurship
•
Google's issio is to orga ize the orld's information and make it universally accessible and useful The value proposition statement should consist of these components:
1. What your product/service is
2. The target customer
3. The value you provide them
Emergent property: why your product is unique
Examples:
Good: Wi ers is a department store that offers fashion conscious consumers the latest brand names for up to 60 per cent off. What is it?
For whom?
Values?
Bad: Wi ers is a off-price department store owned by TJX that employs international sourcing and buying po er.
Examples:
Good: Wi ers is a department store that offers fashion conscious consumers the latest brand names for up to 60 per cent off. What is it?
For whom?
Values?
Bad: Wi ers is a off-price department store owned by TJX that employs international sourcing and buying po er.
Examples:
Good: A1 I dustries has developed an economical and easyto-use chemical additive that allows paint manufacturing companies to reduce the environmental impact of their produ ts.
What is it?
For whom?
Values?
Bad: A1 I dustries has discovered a chemical isomer additive that allows for a reduction of VOC e issio s.
Examples:
Good: Google is the
World’s largest search engine that allows internet users to find relevant information quickly and easily.
What is it?
For whom?
Values?
Bad: Google uses a patented page ranking algorithm to make money through ad pla e e t.
Are I ter et Users really Google’s usto ers?
Examples:
Good: Google is the
World’s largest search engine that automatically provides advertisers with potential customers tailored to the ad content, increasing click-through rates and conversion rates.
What is it?
For whom?
Values?
Bad: Google uses a patented page ranking algorithm to make money through ad pla e e t.
Selling to
Business
Selling to
Customer
Usability
Health
Lower risk
Aesthetics
Saving time
Status
Saving/making money
Newness
Value
Enabling function
Self-Actualization
Convenience
Environmental
Ethical
Quality
Social
Inclusion
Customizable
Selling to
Business
Lower risk
Saving time
Saving/making money
Enabling function
Convenience
Quality
Customizable
Selling to
Business
Lower risk
Saving time
Saving/making money
Enabling function
Convenience
Quality
Customizable
Selling to
Business
Lower risk
Saving time
Saving/making money
Enabling function
Convenience
Quality
Customizable
Selling to
Business
Lower risk
Saving time
Saving/making money
Enabling function
Convenience
Quality
Customizable
Selling to
Business
Lower risk
Saving time
Saving/making money
Enabling function
Convenience
Quality
Customizable
Selling to
Business
Lower risk
Saving time
Saving/making money
Enabling function
Convenience
Quality
Customizable
Selling to
Business
Lower risk
Saving time
Saving/making money
Enabling function
Convenience
Quality
Customizable
Selling to
Business
B2B Sales:
Lower risk
Saving time
- Rational
Saving/making money
decision making
Enabling function
- Overt Values
Convenience
Quality
Customizable
Selling to
Business
Selling to
Customer
Usability
Health
Lower risk
Aesthetics
Saving time
Status
Saving/making money
Newness
Value
Enabling function
Self-Actualization
Convenience
Environmental
Ethical
Quality
Social
Inclusion
Customizable
Selling to
Customer
Usability
Health
Aesthetics
Status
Newness
Self-Actualization
Environmental
Ethical
Social Inclusion
Selling to
Customer
Usability
Health
Aesthetics
Status
Newness
Self-Actualization
Environmental
Ethical
Social Inclusion
Selling to
Customer
Usability
Health
Aesthetics
Status
Newness
Self-Actualization
Environmental
Ethical
Social Inclusion
Selling to
Customer
Usability
Health
Aesthetics
Status
Newness
Self-Actualization
Environmental
Ethical
Social Inclusion
Selling to
Customer
Usability
Health
Aesthetics
Status
Newness
Self-Actualization
Environmental
Ethical
Social Inclusion
Selling to
Customer
Usability
Health
Aesthetics
Status
Newness
Self-Actualization
Environmental
Ethical
Social Inclusion
Selling to
Customer
Usability
Health
Aesthetics
Status
Newness
Self-Actualization
Environmental
Ethical
Social Inclusion
Selling to
Customer
Usability
Health
Aesthetics
Status
Newness
Self-Actualization
Environmental
Ethical
Social Inclusion
Selling to
Customer
Usability
Health
Aesthetics
Status
Newness
Self-Actualization
Environmental
Ethical
Social Inclusion
Selling to
Customer
Usability
Health
Aesthetics
B2C Sales:
Status
- Emotional
Newness
decision making
Self-Actualization
Environmental
Ethical
Social Inclusion
- Latent Values
Selling to
Business
Selling to
Customer
Usability
Health
Lower risk
Aesthetics
Saving time
Status
Saving/making money
Newness
Value
Enabling function
Self-Actualization
Convenience
Environmental
Ethical
Quality
Social
Inclusion
Customizable
Process
1. Draft a Value Proposition
2. Test your Value Proposition
Process
1. Draft a Value Proposition
2. Test your Value Proposition
3. Test your Minimum Viable Product (MVP)
Iterations
Some guidelines to draft a VP:
• Make the alue propositio as rief as possi le
– no more than two sentences
• Be spe ifi , positi e a d passio ate
• Try to reate a e otio al atta h e t ith your words
• Your goal should e to ha e people ask Tell e ore
• Test your Value Propositio
Key Takeaways
• The value proposition statement should consist of these components:
1. What your product/service is
2. The target customer
3. The value you provide them
• Value
ust e o sidered fro
the uyer’s perspe ti e
• Your VP should be brief, specific, positive and passionate
• Write – Test – Iterate
Prototype – Test - Iterate
Questions?
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