Value Proposition2017-01-19T03:09:35-07:00

Value Proposition Development

The strongest brands and businesses result from a disciplined alignment of initiatives against marketplace requirements.  With the new product or growth strategy established, the customer value proposition is necessary to link the product offering to business strategies.

Value Proposition Defined

A Customer Value Proposition identifies the customer-focused operational strategies that are required to deliver against the brand or business strategy.  It puts the corporate, division, product or brand strategy in relevant terms, thereby making it easier to define decisions and action plans that will strengthen the core offering.  The value proposition framework consists of three parts, as shown here:

A customer value proposition typically consists of four to six benefit-based “planks”.  The plank briefly defines what benefit can be derived when the product or service is used by core customers (e.g., convenience, peace-of-mind, comfort, etc.).

The combination of individual value proposition “planks” comprises the full value proposition, which provides the basis for delivering a relevant and distinctive offering to target customers.

Value Proposition Development Issues

  • What do you know about your important customers — their current situation, needs and motivations — that your competitors don’t know?
  • What set of benefits can you offer to your customers to meet their needs in a relevant and distinctive way?
  • How do these benefits translate into operational strategies, plans and tactics and align with target requirements?

Value Proposition Development Approach

Customer value proposition development employs similar consulting steps as new product development, though is extended to include a broader set of benefits. When fully defined and delivered upon, the value proposition offers the following benefits:

  • Creates a multi-dimensional definition of brand value
  • Provides direction to the business and brand – by identifying and owning those benefits on which category decisions are made
  • Forces a disciplined approach to resource allocation
  • Drives strategies and actions across the organization

Contact EquiBrand to understand how an experienced new product consultant or innovation consultant can help your company grow.

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