What Is Value Proposal? Definition of Value Proposal, Value Proposal Meaning and Concept
The value proposition is the factor that makes a company different and useful from the competition and is appreciated by users.
The value proposition is a strategy that the company implements to distinguish itself from its competitors for something specific and thus obtain the approval of the public. It is about highlighting what a business is better for and how that will benefit the people who use those services or products and not those of the competition.
To know how to correctly identify the value proposition of a company, we can use a very useful tool. We are talking about the Canvas Model , which consists of filling in a template that includes the different aspects of a company. This model is designed for a start-up business, allowing you to create a very visual and simple representation of the strongest aspects of your business.
Objectives of the value proposition
Choosing a good value proposition will benefit the created business. The main objectives are the following:
- Distinguish the brand from the competition. This aspect is essential, since it is the reason why customers will buy from the company. Highlighting what differentiates you from the rest of the companies in the sector will allow you to increase the number of clients.
- Offer a useful option to customers to solve their problems. In relation to the previous objective, in addition to offering a differentiated product, it must satisfy the customer's needs. If this does not happen, the company will not be able to maintain itself over time, since the number of clients will decrease.
- Highlight what the company does best. A company must emphasize everything that it offers with the highest possible quality. If the positive aspects are not highlighted, customers will not arrive without knowing them.
- Offer confidence to the public for whom you work. This factor is decisive, very few people buy in those places that do not convey confidence. That the client feels supported by a serious and reference company is essential. In addition to this, a company that offers trust and security will increase its client pool with some ease.
How to make a value proposition?
There are several ways to craft a value proposition that is useful to your audience:
- Analyze the company: The objective is to know the most outstanding points and where the business we are in stands out. For this, a SWOT Analysis can be carried out, which will be useful to know the internal and external strengths and weaknesses.
- Work on the value proposition : Once the points in which a business stands out are selected, a series of strategies must be established to promote them and make them known to the audience as that additional value that the company offers over the competition.
- Simple and easy to understand: It must be accessible to users, brief and concise. The more easily understandable it is, the better positioning and sales options a company can obtain with it.
- Highlight the benefits: This is essential so that the user knows what they are going to get with a service or product. It will be very useful for you to know that you can alleviate your problem and find help with what a business offers you and that you do not perceive that in the competition.
Value Proposition Examples
Here are some examples of value proposition:
Coca-Cola value proposition
In the first place, Coca Cola has a product that has not yet been perfectly copied by any other company on the planet. It has a unique recipe that gives it a characteristic flavor that people who consume it love. In addition to this, its good positioning makes it easy to consume this product. On the other hand, its marketing makes it unmistakable and allows it to be a company that is highly accepted by society. Their Christmas campaigns or their commitment to sports competitions transmit certain values and feelings to their customers that strengthen the sale of the product.
Starbucks value proposition
Starbucks has revolutionized the world of coffee shops. He has managed to create a menu of coffees, drinks and food that is perfect for breakfast, lunch or an afternoon snack. The flavors of their products are unmistakable and customers love them.
Along with this, when you go to a Starbucks coffee shop, your perception is not that you are entering any coffee shop. On the contrary, it is an elegant, comfortable place with a climate that invites you to spend the whole afternoon there.
In addition to this, something that has given it great fame is free Wi-Fi access. Many people may be answering emails, studying or reading a book through their mobile device from the cafeteria itself.