This document provides guidance on creating an effective value proposition in 3 steps: 1. Understand the customer by identifying their needs, problems, values and what improvements they seek. Conduct market research to ensure you understand the customer perspective. 2. Analyze your own product or service to determine how it solves customer problems and creates value by offering tangible benefits like savings, efficiency and results. Include specific metrics. 3. Compare your offering to alternatives to show how it provides more value to the customer. The value proposition statement should complete the sentence "I want to buy this because it will..." from the customer's point of view and highlight key benefits and differentiators that matter most to the customer. Examples

1. BUSINESS VALUE PROPOSITION

2. Value Proposition--
A value proposition is a promise of value to
be delivered and acknowledged and a belief
from the customer that value will be
appealed and experienced. A value
proposition can apply to an entire
organization, or parts thereof, or customer
accounts, or products or services.

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
Ayurvedic Products
Electronics
Consumer Electronics
Packaging Material
Houseware Products

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--
Imagine a world where everyone is in sales. Well, the fact is,
everyone is in sales, in some fashion. It's not just the salesman
at the car lot or computer reseller who qualifies
 Maybe you are trying to sell ideas to your spouse for the next
holiday;
 Maybe you're pitching a new project to your boss;
 Maybe you are headhunting someone to join your firm. It's all
selling, and, whatever your offer (product, idea, project or job)
it's important to have a really strong value proposition.
A value proposition is a short statement that clearly
communicates the benefits that your potential client gets by
using your product, service or idea.

11. Value Proposition - Features
 It "boils down" all the complexity of your sales pitch into
something that your client can easily grasp and remember.
 It needs to be very specific:
 Simply describing the features or capabilities of your offer is not
enough. Your value proposition must focus closely on what
your customer really wants and values. Your customer wants to
solve problems, to improve on existing solutions, to have a
better life, build a better business or do more, better, faster. and
so on.

12. Value Proposition - Features
Creating a value proposition is a useful marketing
technique that had wider application than product
marketing. Whatever you are 'selling' and to whom, a
value proposition is useful, if not essential, tool.
Whether your 'customers' are external customers,
employees,co-workers or even your family, the idea is
to help them see the specific value your offer brings to
them. And by doing so, you will grab their attention in
such a way that they know: "Yes, that's right for me".

13. Creating a great Value Proposition
"Why should I buy this specific product or idea?" asks your
customer: And your value proposition must answer this, in a
compelling way. In creating a good value proposition, the trick is
to know your product or idea well, know how it compares with
those of your competitors and, very importantly, put yourself in
your customer's shoes to find the answers.
Your value proposition can be created step-by-step, by answering
a series of questions. Once you answer these, you have the
ingredients to create a value proposition that answers your
customer's question: "Why should I buy this product or idea?"

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
Step 1: Know your customer
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 Analysis and 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. Thank You