An overview of value propositions and market segmentation presented at MIT's Center for Entrepreneurial Studies

1. Your Value Proposition
Neil Baron
Managing Director
Baron Strategic Partners
Baron Strategic Partners

2. The Essence of Business Is:
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3. The Value EquationTM
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4. Value Equation for Pesticide Free Foods
Healthier More expensive
Better taste Not as available
Support green farms Limited variety
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5. How Can We Increase Value?
Healthier More expensive
Better taste Not as available
Support green farms Limited variety
Increase benefits or reduce the cost for
the customer to acquire these benefits
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6. Do All of Your Customers Perceive the Same
Value?
Customer’s Perceived Value
Customer Grouping
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7. Value of Pesticide Free Foods vs. Alternatives
Customer’s Perceived Value
1 2 3 4 5
Customer Segment/Grouping
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8. Struggling to Think about Value?
Make a Movie of “A Day In the Life of
Your Customer.”
What’s working/what is not working?
How can your product improve their life?
3/6/2010 # Baron Strategic Partners

9. Understand the Value Chain and Influences
Nutrition
Experts
Friends Authors Doctors
Fertilizer Middle Retail
Farmer Consumer
Maker Man Store
For pesticide free foods
SafetyNet Assessment

10. Understand the Value Chain and Influences
Nutrition
Experts
Friends Authors Doctors
Fertilizer Erica’s Middle Retail
Farmer Consumer
Maker Foods Man Store
What is the value equation for each link in the value chain?
SafetyNet Assessment

11. Delivering What We Promise
Our Promise
Value
Proposition
Can we deliver?
Value Delivery
System
Communicating
Value
Why Believe Us?
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