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Defining Your Unique Value Proposition
- 1. Defining and Articulating your Unique Value Proposition Connecting Great Ideas and Great People Content Leaders: Kenneth P. Esthus, The Institute of Navigation Tracy Taylor, CAE, Natural Products Association
- 3. Elements of a Brand BRAND STRATEGY BRAND EXPERIENCE BRAND MANAGEMENT BRAND IDENTITY BRAND
- 4. Elements of a Brand: Identity BRAND IDENTITY Name Logo Personality Design Tag Assets
- 5. Elements of a Brand: Management BRAND MANAGEMENT Planning Monitoring Training Measurement
- 6. Elements of a Brand: Experience BRAND EXPERIENCE Products & Services Environments Personal Interactions Advertising PR Print Materials
- 7. Elements of a Brand: Strategy Market Offering Messaging Promise Value Personality Company/ Organization Customers BRAND STRATEGY
- 8. Elements of a Brand BRAND STRATEGY BRAND EXPERIENCE BRAND MANAGEMENT BRAND IDENTITY BRAND Value
- 11. BRANDS WITH STRONG VALUE PROPOSITIONS
- 21. Elements of a Brand BRAND STRATEGY BRAND EXPERIENCE BRAND MANAGEMENT BRAND IDENTITY BRAND
- 23. Case Study: Finding Your UVP BRAND IDENTITY Name Logo Personality Design Tag Assets
- 29. Elements of a Brand: Management BRAND MANAGEMENT Planning Tools Monitoring Training Measurement
- 31. Elements of a Brand: Experience BRAND EXPERIENCE Products & Services Environments Personal Interactions Advertising PR Print Materials
- 33. Elements of a Brand: Strategy Market Offering Messaging Promise Value Personality Company/ Organization Customers BRAND STRATEGY
- 38. Q & A
- 39. Contact Information Kenneth P. Esthus Membership & Marketing Institute of Navigation [email_address] 703.366.2723, Ext. 104 SEE YOU NEXT YEAR! Annual Meeting & Expo August 21 - 24, 2010 Los Angeles, CA
- 40. Contact Information Tracy A. Taylor, CAE Senior Vice President of Public Affairs and Strategic Initiatives Natural Products Association [email_address] 202.204.4723 SEE YOU NEXT YEAR! Annual Meeting & Expo August 21 - 24, 2010 Los Angeles, CA
- 41. Examples
Editor's Notes
- OPEN by asking the audience about their expectations from the session and what they’ve done on a value proposition to date.
- Unique Selling Proposition “is the unique differentiator (or set of differentiators) which makes one buy something in preference to something else. Unique Value Proposition “is what that differentiator (or set of differentiators) really means to the target segment.” In other words, they buy that because it changes their life ________ how... So the USP of a Volvo Car, for example, may that it has a steel safety cage and eight airbags. The VP to the customer may be that they feel far safer in a Volvo because they know their family is more likely to survive or escape injury because of the safety features.
- Unique Selling Proposition “is the unique differentiator (or set of differentiators) which makes one buy something in preference to something else. Unique Value Proposition “is what that differentiator (or set of differentiators) really means to the target segment.” In other words, they buy that because it changes their life ________ how... So the USP of a Volvo Car, for example, may that it has a steel safety cage and eight airbags. The VP to the customer may be that they feel far safer in a Volvo because they know their family is more likely to survive or escape injury because of the safety features.
- Volvo – Safety Fed Ex – When it absolutely, positively HAS to be there overnight! "Absolutely, positively overnight" means you have total peace of mind. Whole Foods - Highest Quality, Natural and Organic Products – Healthy living/Feeling better/Living longer TOMS Shoes was founded on a simple premise: For every pair you purchase, TOMS will give a pair of shoes to a child in need. One for One. Using the purchasing power of individuals to benefit the greater good is what we're all about. Tom’s of Maine - free from artificial ingredients, never tested on animals, and produced using environmentally sustainable business practices.
- A mission statement outlines the main strategic intent of a business (i.e. to make money; to be a leader; to gain market share etc.) whereas a value proposition describes your position to your markets, and describes your position in relation to your competition.
- You will pay a high price when customers lose sight of you organization’s value proposition. Disney maybe the perfect example of a company that has lost its value proposition. They used to be the owners of family fun, but now they are a muddled mess. Starbucks example – closed all stores to train their associates because they felt they had moved away from their core value – which was coffee.
- Data-driven research is king. RESEARCH: If a customer says price is not important, but they continue to buy on price, the actuals should trump the intents. Competitive Analysis - Map out the competition, and how the competition presents itself, how they communicate their value proposition. You might need to develop several variations of your Unique Value Proposition, because you want to communicate different messages to different stakeholders. Crafting the Value Prop (Determining Content) 1. Internal Analysis a. In looking at the value chain (internal logistics > operations > external logistics > sales and marketing > service), how does your company create value? b. What are your company's core competencies and how do you differentiate yourself from the competition? c. What capabilities (internal and external—partners, alliances, joint ventures) can you bring to bear to execute against your value promise? d. Why should your value targets accept your particular offer (e.g., safer, better pay, more convenient, lower risk, etc.)? 2. External Analysis a. How do your value targets quantify (measure) the value that you deliver (e.g., how do you/they know when it's a lot or a little)? b. How do you link your value proposition to your target's needs and pains? c. How do you compare and differentiate the value that you deliver from the value that your competitors deliver (e.g., higher ROI or lower TCO)? d. How do you substantiate your ability to deliver on your value promise (e.g., track record, references, etc.)? e. How can you increase the return or decrease the risk, or both, in creating and delivering higher levels of value? The 3 value drivers, Quality (CQI), Image, and Price, represent the predictive components
- In most value descriptions, there are both qualitative and quantitative components. On a subconscious level, customers will compare the value proposition of your company against those of your competitors when deciding where to take their business. With that in mind, a few things to remember when writing your value proposition: Keep it short. Your value proposition explains why customers should buy from you. If you can't sum it up in 10 words or less, chances are you won't be able to execute it, either. Be specific. Your customers have specific needs; your value proposition should offer targeted solutions This is about your customer, not you. Your value proposition should discuss only what matters to your customers and the value you can bring to them. Value comes in numerous forms. Money, time, convenience and superior service are a few of the ways you can help deliver value to your customers. HOW TO REACH YOUR UVP Here are some important points on developing your own unique value proposition: 1. Unique value propositions are created in two phases: Phase 1 is where you internally (yourself, or within your senior management team) decide what your unique differentiation is and Phase 2 is crafting that uniqueness into an outbound message to your market - a confident, assured benefit statement to your market. 2. Trust your market to tell you what they need and want. Finding your unique differentiation in your market is far more likely when you become involved and understand your customers, tune-in to their "opportunity triggers" where they literally tell you what they want or don't want, you are able to obtain feedback on early concepts and ideas and have a good understanding of how competitors are positioning themselves in your market. 3. Look short-term and longer-term for opportunities. Your customers will often tell you what they want today or yesterday, but trends and patterns will tell you what they will want next year and the year after that. Mix short-term market research with longer term research. 4. Look outside your industry. Study successful companies of all types. Seek to understand their unique value proposition. How are they different in the market? 5. Improve your customer's life. Think big when you seek out your unique value proposition. Being the best in price, selection or shipping time is often not enough to separate you from your competition. What can you do with your idea, knowledge of your market to really improve their lives, health, financial situation, status, prestige, etc...? 6. Know your strengths. Make sure you are in a good position to deliver on your unique value proposition. It's not enough to create the best UVP statement only to give way to someone else who could execute better. Know your strengths and build your UVP out from there.
- In most value descriptions, there are both qualitative and quantitative components. On a subconscious level, customers will compare the value proposition of your company against those of your competitors when deciding where to take their business. With that in mind, a few things to remember when writing your value proposition: Keep it short. Your value proposition explains why customers should buy from you. If you can't sum it up in 10 words or less, chances are you won't be able to execute it, either. Be specific. Your customers have specific needs; your value proposition should offer targeted solutions This is about your customer, not you. Your value proposition should discuss only what matters to your customers and the value you can bring to them. Value comes in numerous forms. Money, time, convenience and superior service are a few of the ways you can help deliver value to your customers. HOW TO REACH YOUR UVP Here are some important points on developing your own unique value proposition: 1. Unique value propositions are created in two phases: Phase 1 is where you internally (yourself, or within your senior management team) decide what your unique differentiation is and Phase 2 is crafting that uniqueness into an outbound message to your market - a confident, assured benefit statement to your market. 2. Trust your market to tell you what they need and want. Finding your unique differentiation in your market is far more likely when you become involved and understand your customers, tune-in to their "opportunity triggers" where they literally tell you what they want or don't want, you are able to obtain feedback on early concepts and ideas and have a good understanding of how competitors are positioning themselves in your market. 3. Look short-term and longer-term for opportunities. Your customers will often tell you what they want today or yesterday, but trends and patterns will tell you what they will want next year and the year after that. Mix short-term market research with longer term research. 4. Look outside your industry. Study successful companies of all types. Seek to understand their unique value proposition. How are they different in the market? 5. Improve your customer's life. Think big when you seek out your unique value proposition. Being the best in price, selection or shipping time is often not enough to separate you from your competition. What can you do with your idea, knowledge of your market to really improve their lives, health, financial situation, status, prestige, etc...? 6. Know your strengths. Make sure you are in a good position to deliver on your unique value proposition. It's not enough to create the best UVP statement only to give way to someone else who could execute better. Know your strengths and build your UVP out from there.
- Express your value proposition Principles for expressing a value proposition effectively: 1) Ask yourself: “Why should my ideal prospect (the group you intend to serve) buy from me instead of a competitor?” 2) Compare your answer with the claims of your main competitors. 3) Refine your value proposition until you can articulate it in a single, instantly credible, sentence. 4) If you had just 10 words with which to describe why people should buy Your marketing strategy must include a continuous process of identifying, testing, and expressing value propositions effectively.