Your Elevator Pitch and

your Value Proposition

It is a brief, carefully constructed statement that outlines the merits of a business opportunity.

Communicating your business in a way that gets people excited and thinking

Most elevator speeches are 45 seconds to 2

minutes long.

To come up with a good pitch, think..

WHAT IS THE CUSTOMER PROBLEM?

What pain are you relieving?

Whats an Elevator pitch?

Guidelines for Preparing Elevator Pitch

Steps Description Time

Step 1: Describe the opportunity or problem that needs to be solved 20 seconds

Step 2: Describe how your product or service meets the opportunity or solved the problem 20 seconds

Step 3: Describe your qualifications 10 seconds

Step 4: Describe your market 10 seconds

Total 60 Seconds

Source: Barringer, B., Ireland, D. 2008. Entrepreneurship. Second edition page 289

http://www.youtube.com/watch?v=Tq0tan49rmc

http://www.youtube.com/watch?v=phyU2BThK4Q

Elevator Pitch

Questions:

Identify the problem that the service is relieving.

What are the benefits for the potential client?

What are the characteristics of the service?

https://www.youtube.com/watch?v=g4o_YQ4qBGQ

https://www.youtube.com/watch?v=Cymp7rLBY48

Elevator Pitch

Shark Tank Questions:

What problem does this product/service solve?

What do you think about the entrepreneur solution?

Does the entrepreneur get funded?

Shark Tank Season 3 Episode 11 (17:59min).

Shark Tank Season 3 Episode 12 (15:00min)

Shark Tank Season 3 Episode 1 part 1 (1:38min).

Shark Tank Season 3 Episode 7 part 1 (2:41min).

Read the sections you be the V.C on your book.

Read the assignment in the intranet.

Watch Shark Tank videos available in youtube.

Watch DragonDen: http://www.youtube.com/user/dragonsden2011

For more examples ..

Tell the Story

Helps you to connect with your audience in its every day life and believes to discover its insights.

Time to clearly state what pain youre addressing and how your business solves this.

Help you to build on your sentence to provide a clear picture of your business offering.

The storytelling can made your communication more persuasive.

Process of New Products Development Detail by Stages

Source: Robert G. Cooper - Predevolpment Activities Determine New Product Success

Ideas Generation

Preliminary Technical Analysis

Preliminary Market Analysis

Technical Concept Generation

Concepts Identification

Market Research

Concept Test

Market Research

Product Development

STAGE I: IDEA

STAGE II: PRELIMINARY ANALYSIS

STAGE III: THE CONCEPT

STAGE IV: THE DEVELOP

Marketing Activities

Technical/ Production Activities

Not go

go

Not go

go

Not go

go

Product Test

Concept and Product Test

Not go

go Preliminary Evaluation

Initial Scan

Concept Evaluation

Concept of the product

An elaborate version of the business idea.

Focus on an specific target market. Should include the user/client. Who will use the product/service?

What are the main benefits offered?

Must include a valuable promise to your customer or a problem that you are solving.

All concepts should be clear, unique and credible.

Concept of the product

Concept of the product

Before you developed your concept statement, you need to know: Target Market.

Why is important your product or service? Please include here the problem that you solved and

the benefits that your customers will receive.

Describe why is unique in your product or service proposed.

Mentioned why people should believe in your offer.

Concept Statement of the product

To..(your target market)..

The brand (that will include the product/service)

is the (qualify: is the best, the unique, the first).

Set category (i.e. the best what?).

That .(mention your benefits)

Because..(attributes that serve as support to your benefits. You want that people believe in your offers).

Concept of the product (example)

To..(all people worried about their mouth health and that always look for the best)..

Your brand (Colgate Total)

is the (qualify: is the best, the unique, the first).

Set category (i.e. is the toothpaste premium).

That .(that provides complete protection)

Because..(because its action kill all the bacteria for long time).

Concept of the product (example)

To..(all women worried about their dry skin)..

Your brand (Dove)

is the (qualify: is the best, the unique, the first).

Set category (i.e. is the soap).

That .(that provides a more beautiful smooth skin)

Because..(because it contains one quarter of moisturising cream and neutral cleansing ingredients).

Concept of the product

SweetDreams ChildCare is targeted at health-care professionals employed during the evening shifts, primarily in Jackson Memorial Hospital, who have children between the ages of 18months to six years of age.

SweetDreams Childcare, is currently the first and only evening childcare in the geographic market that offers a safe, state-licensed, affordable, and convenient facility. Its certification, surveillance cameras, convenient hours, and flexibility allow the company to provide its customers with these benefits.

Components of Business Model Canvas

What?

Who? How?

How much?

Emotional Side Value Creation

Logical Side Efficiency

Customer groups represent separate segments if: - Their needs require and justify a distinct offer - They are reached through different Distribution Channels - They require different types of relationships - They have substantially different profi tabilities - They are willing to pay for different aspects of the offer

Customer Segment 1

Types:

- Mass market

- Segmented market

- Diversified (multiple unrelated segments)

- Niche market

- Multi sided platform or market

Customer Segment 1

If I had asked my clients what they needed, they would have said a better horse

Henry Ford

What can I use to understand my customers?

Empathy maps Used whenever you find a need to

immerse yourself in a users environment, behaviours, concerns and aspirations.

They can be helpful when, but are not limited to:

Diving into the customer segments of a business model canvas

Capturing the behaviors of a customer in a interview.

Whats the look like of an Empathy Map?

Is a tool that helps sketching the profile of a customer segment.

Consists of a simple face surrounded by six sections

https://www.youtube.com/watch?v=ZaUwfAss3Tk

How would I use an Empathy Map?

They can be used during contextual inquiry or as a communication tool within the team or support the creation of persons profiles.

Thinking & feeling about their worries or aspirations?

Hearing while using our product, from their family, friends or colleagues?

Seeing while using our product in their environment?

Saying & doing while using our product in public or in private?

Experiencing as a pain point or fear when using our product?

Experiencing as a positive or gain when using our product?

Empathy Map: Identify needs and insights

IDENTIFY NEEDS: Needs are human emotional or

physical necessities. Needs help define your design challenge.

IDENTIFY INSIGHTS: An Insight is a remarkable

realization that you could leverage to better respond to a design challenge.

Insights often grow from contradictions between two user attributes or from asking yourself Why? when you notice strange behavior.

https://www.youtube.com/watch?v=RuucbQQYw-0

Empathy map: Entertainment Coffee Bar

Creates value for customer through a

distinct mix of elements that satisfies

its needs.

Value Proposition 2

http://ecorner.stanford.edu/authorMaterialInfo.html?mid=2879

Qualitative

- Newness

- Performance

- Customization

- Getting the job done

- Design

- Status

- Brand

Value Proposition Types 2 Quantitative

- Price

- Cost Reduction

- Risk Reduction

- Accesibility

- Convenience

- Usability

Most of the time people do not know what they want until you show it

Steve Jobs

Value Proposition Canvas 2 A helpful tool to project, test and build the value business proposition of customers in a more structure and reflective way.

http://www.youtube.com/watch?v=xTtvwAmjais

What is a Pain?

Negative consequences for not acting B2B Examples: - Lost of sales or incomes - Lost of market share - Lost of opportunities - Inability to stay competitive

- Embarrasement - Polithical implications (between business units or between executives to excel to show results)

Value Proposition Canvas 2

Customer Jobs gather all the customer needs, the problems that they are trying to solve and the tasks they are trying to perform or complete

Customer Pains gather all the negative emotions and undesired costs, situations and risk which the customer could experience before, during and after getting the job is done

Customer Gains gather all the customers benefits and desires, and may span personal, functional, or economical etc. For example, this box could include positive emotions, functional requirements, or specific cost savings.

Value Proposition Canvas 2 Gain Creators describe how your product creates customer gain, how it offers an added value to your customer.

Product & Services list all the products and services which your value proposition is build around. This includes for example the services that you offer or the help the

customer receives either a functional, social, or emotional.

Pain Relievers describe how your products addresses the challenges needs and the pains of the customer, how you eliminate negative emotions, undesired costs or avoidable situations.

Strategic Positioning

Is the creation of a unique and valuable position, involving a different set of activities:

Serving few needs of many customers

Serving broad needs of few customers

Requires you to make trade-offs in competing to choose what not to do.

You cannot be all things to all people.

Focus on developing a solution and a brand that is meaningful and consistent to customers.

Emphasize serving one market well and explore growth opportunities later.

Involves creating a fit among a companys activities and reinforce one another .

Pillars of Proposals for Brand Value (Aaker)

FUNCTIONAL BENEFITS

EMOTIONAL BENEFITS

SELF-EXPRESSIN

BENEFITS

DIFFERENTIATION

Provide to customer

the basis for selection. Without

differentiation would not have loyalty from customers.

Everything would be price.

HIERARCHY OF NEEDS (Maslow)

Proposition of Differential Value

Functional, Technical or Sensory Benefits

Benefits based on attributes of the product / service. Objective is to differentiate / improve performance Provides useful "functional" to the consumer. Develop the Power Brand Leadership type

Printer speed HP

Taste of a hamburger Bembos

Efficient Customer Service DHL

Great customer service (BCP)

Nutrient (Ideal Milk)

Proposition of Differential Value

Emotional Benefits Positive feeling that arouses in the consumer purchase /

use of a BRAND. Provide depth to the experience of use of the brands Develop the Leadership type Icon Brand

Open Happiness (Coca Cola)

Funny Experience Universal studios

Affective children (Ronald Mc Donalds)

Electronic music Live (Camden Town London Store)

Magic Cuy sympathy, Pyme Business Solution (BCP)

Proposition of Differential Value

Self-expression Benefit

The BRAND is a vehicle to express who I am or who I want to be.

Indicate personal and social assertiveness.

Expression is more than feelings.

It refers to the permanent more than the temporary

Develop Leadership of Identity or Explorer Brand The Peruvians are creative (Inca Kola)

The taste of the new generation (Pepsi)

We are the bank of moving the country (Mi Banco)

Your potential, our passion (Microsoft)

Life's good (LG)

Keep walking (Johnny Walker)