Adv SME East Invest Value Proposition

8/3/2019 Adv SME East Invest Value Proposition

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Ing. Martin Bitter

Exportant

Export Management Consultants

Value Proposition



What are Customers looking for?

• ?



Due to price pressure….

• Customers are looking for possibilities in low-wage countries, most of them forced into doingso by their customers. Exporters should beprepared to:

– Comply with the European legal technicalrequirements

– Guarantee the same level of quality asEuropean suppliers

– Apply the same commercial and(professional) communication standards

– Respond to the demand for quick andreliable delivery times



Convincing by USP

• Unique Selling Points• The more unique characteristics, the more

chance

• a strategic advantage, on basis of • Quality• Sales price• Delivery• Reliability• Combination…

• The more specialised, the more USP’s • Helps focus & manage internal organisation• Helps determine export strategy



Characteristics of USP

• a short sentence

• a clear, understandable statement

• it is believable and realistic

• it is composed of one characteristic(or a combination of characteristics)that is/are unique to your companyor product



User Benefits

• Translate the USP’s in Value for Customer

• What is Value for Customer of:• Low price

• Fast delivery• World wide guarantee and service• High quality

• What should be User Benefit of a deep well

pump? A central heating waterpump?

– You answer the question: what is in it for thecustomer??



Exercise: User Benefits on basis of:

• Economical, energy-efficient pumps for 4in.inside diameter or larger wells.

• Pump from depths of 400'.

• Patented “Floating Stack"" design resistssand and reduces sand locking.

• Stainless steel pump and motor housing forlong life.

• Heavy-duty 1 1/4in. NPT dischargeconnection.

• Water-filled submersible motor.

• Precision-molded impellers and diffusers.230 Volts.

• Includes built-in check valve. UL approved.3-year limited warranty.



Value proposition?

• Summarizes the

customer segment,

competitor targets

and core differen-

tiation of one’s

products from the

offerings of the

competitors



Value proposition?

• Why should I buy thisproduct or service?

• Why should I doanything at all?

• Is a clear and specificstatement about thetangible benefits



Successful Customer Value Prop.

• Building blocks:

– Benefits in a context

• How do benefits compare to next bestalternative

– Value elements

• Points of parity, elements essentially same asnba

• Points of difference, elements that make theoffer inferior or superior

• Points of contention, supplier and customerdisagree how performance compares to nba



Writing a value proposition

First sentence:

• For (target customer)

• who (statement of the need oropportunity)

• the (product/service name) is a(product/service category)

• that (statement of benefit)

Asserts the value of theoffering




First sentence:

For glass greenhouse growers of bromelia’s and palms who

perform in house crossing andbreeding the Verdi softwaresystem is a crossingmanagement tool that results inan uniform procedure for theentire breeding department andan increase in capacity perbreeder of min 20%

Asserts the value of theoffering




Second sentence:

• Unlike (primary competitive

alternative)

• Our product (statement of

primary differentiation)

Asserts the positioning of the value




Second sentence:

Unlike manual breeding logbook

keeping our Verdi management

system allows for faster andbetter overview of all possible

crossings, secures your

knowledge assets and allows for

“on the floor” decision making

Asserts the positioning of thevalue



Definition of terms

value:

Worth in usefulness or imortance

to the possessor; utility or merit

Proposition “the act of offering” or “that which

is offered or proposed”



Value identification

essence:

A thorough needs analysis with the

value proposition targets

(employees, partners,customers)



Value descriptions

Qualitative , quantitive

Focus : functional, financial or

emotional (ROI, TCO, status,

looking better) or “willingnessto pay” (quantitive)

Understand the target’s language,

become part of the group and

on “the inside”



Determining content

Internal analysis

A: look at value chain (internal

logistics>operations>external

logistics>sales&marketing>service),

howdo you create value?

B: Core competencies? Differentiation

from competition?

C: What capabilities enable your value

promise?D: Why should value targets accept

this particular offer (safer, better pay,

more convenient, lower risk?)



Determining content

External analysis

A: How do your value targets quantify

(measure) the delivered value?

B: How to link your value propositionto needs of target?

C: How to compare and differentiate

your value from competitor

D: How to substantiate your ability to

deliver (track record, references)E: How to increase return/decrease

risk in delivering higher levels of

value?

Adv SME East Invest Value Proposition

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