Business Plan Preparation
Value PropositionFrank Moyes
Leeds School of BusinessUniversity of Colorado
Boulder, Colorado
1Value Proposition
Tonight’s Agenda Topics
Value Proposition Is This a Real Business
Presentation In the Fire Team meetings
2Value Proposition
Next Week Topics
PRODUCT/SERVICE DESCRIPTION Margins Elevator pitch
Assignment: read BP pp 6-7 Hand-in:
3 Alternative Value Propositions Model Company description F2F Step 3: Sniff Test
Activity: In the Fire
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Value Proposition Product/service features Target market Benefits
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Product/Services Description of attributes Key features & environment What is unique?
5Value Proposition
Target Customer Who uses?
Consumer - demographics & psychographics Business - industry/sector, size, characteristics
Who pays?
6Value Proposition
Benefits Emotional: ambition, power, independence,
achievement, ambition, pride of ownership, comfort, love, friendship, security, style, self improvement, etc.
Social: status, image, popularity with friends or family members, reputation of brand, personal relationships, style, fashionable, etc.
Health: stress, fitness, mental capacity, strength, sex life, quality of life, muse, etc.
Financial: revenue, costs, savings, productivity, pricing, profitability, market share, save time, productivity, etc.
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Simple Value PropositionSST Corporation
“SST is a stainless steel toothbrush company. By its one bristle brush made of high tensile stainless steel, it provides an exhilarating tooth cleaning experience to thrill-seeking X-gen consumers”
http://gizmodo.com/gadgets/gadgets/tifinity-titanium-toothbrush-like-a-metal-scouring-pad-for-your-teeth-235314.php
8Value Proposition
Simple Value PropositionDell Computer
“Dell Computer sells personal computers to consumers. Our build-to-order manufacturing and customer-direct sales enable us to offer custom built computers at very competitive prices. Our customers get the computer that they have always imagined and save money.”
9Value Proposition
Clothing Store
I want to supply boat owners with high quality boat names, registration numbers, and graphics by using our website. My site is unique in the fact that it allows the end user to have a hand in the design process and by allowing the customer to preview the image before submitting the order. EVERY boat owner is a potential customer of ours due to the fact that EVERY boat MUST display its registration numbers on the bow of the boat.I want to supply boat owners with high quality boat names, registration numbers, and graphics by using our website. My site is unique in the fact that it allows the end user to have a hand in the design process and by allowing the customer to preview the image before submitting the order. EVERY boat owner is a potential customer of ours due to the fact that EVERY boat MUST display its registration numbers on the bow of the boat.
“Help people dress better.”
Source: Marketing Experiments
10Value Proposition
Recycling Company
I want to supply boat owners with high quality boat names, registration numbers, and graphics by using our website. My site is unique in the fact that it allows the end user to have a hand in the design process and by allowing the customer to preview the image before submitting the order. EVERY boat owner is a potential customer of ours due to the fact that EVERY boat MUST display its registration numbers on the bow of the boat.I want to supply boat owners with high quality boat names, registration numbers, and graphics by using our website. My site is unique in the fact that it allows the end user to have a hand in the design process and by allowing the customer to preview the image before submitting the order. EVERY boat owner is a potential customer of ours due to the fact that EVERY boat MUST display its registration numbers on the bow of the boat.
“Recycling of plastics and paper.Then, producing environmental friendly products.”
Source: Marketing Experiments
11Value Proposition
Basics Body Care
“100% natural body care products company. We sell handmade soap, lip balm, hand balm, belly balm (for pregnant moms), and spa gift baskets. We personalize our soap labels for baby and bridal showers.”
Source: Marketing Experiments
12Value Proposition
Boat Names
I want to supply boat owners with high quality boat names, registration numbers, and graphics by using our website. My site is unique in the fact that it allows the end user to have a hand in the design process and by allowing the customer to preview the image before submitting the order. EVERY boat owner is a potential customer of ours due to the fact that EVERY boat MUST display its registration numbers on the bow of the boat.I want to supply boat owners with high quality boat names, registration numbers, and graphics by using our website. My site is unique in the fact that it allows the end user to have a hand in the design process and by allowing the customer to preview the image before submitting the order. EVERY boat owner is a potential customer of ours due to the fact that EVERY boat MUST display its registration numbers on the bow of the boat.
“I want to supply boat owners with high quality boat names, registration numbers, and graphics by using our website. My site is unique in the fact that it allows the end user to have a hand in the design process and by allowing the customer to preview the image before submitting the order. EVERY boat owner is a potential customer of ours due to the fact that EVERY boat MUST display its registration numbers on the bow of the boat.”
Source: Marketing Experiments
13Value Proposition
Value Proposition Why segmentation is important Unique Value Proposition - differentiation is
essential Home work for next week
3 alternatives value propositions So what! Why should your customer should
care?
14Value Proposition
Is This a Real Business? Objective
Prove the viability of your venture & set the stage for writing the business plan.
15Value Proposition
Is This a Real Business? Assignment Present Oct 15 PowerPoint 10 minutes,
max 10 slides Market Analysis Industry Analysis Product/Service Profitability
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Is This a Real Business? Assignment (cont)
Hand-in 3 ring binder MARKET – draft of the business plan section in DECK format INDUSTRY – draft of the business plan section in DECK
format PRODUCT/SERVICE – draft of the business plan section in
DECK format Profitability
Revenue Model variables Financial COMP’s Gross Margin preliminary estimate
Competitive Matrix F2F-R Step 4: Reality Test II
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What Is a DECK?
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