www.thomaslawton.com@TCLawton
Professor Thomas C. Lawton
Aligning Your Value Proposition
When the customer speaks, do you know how to listen?
Insert my tag line here… trigger
growth etc. Masterclass 2
www.thomaslawton.com@TCLawton
Configure your value proposition to…
Create a magnet company
- excite markets
- attract and retain customers
- repel new entrants
- render competitors unable to respond
www.thomaslawton.com@TCLawton
GROWTH OPPORTUNITIES
Emergent Markets Established Markets
B
R
E
A
K
O
U
T
T
Y
P
E
Taking by
Storm
True Originals Revolutionaries
Laggard
to Leader
Wave Riders Big Improvers
Forging a magnet company
www.thomaslawton.com@TCLawton
GROWTH OPPORTUNITIES
Emergent Markets Established Markets
B
R
E
A
K
O
U
T
T
Y
P
E
Expanding
Horizons
Boundary Breakers Conquistadors
Shifting
Shape
Early Adapters Power Players
Forging a magnet company
www.thomaslawton.com@TCLawton
Ryanair’s routes to breakout
EXPANDING HORIZONBoundary Breaker
1997
EXPANDING HORIZONConquistador
2003
LAGGARD TO LEADERWave Rider
First budget airline in Europe
1992
www.thomaslawton.com@TCLawton
Europe’s favourite airline?
Lowest fares and lowest seat cost in Europe
• No. 1 for traffic growth (2001: 8m; 2011: 72m)
• No. 1 for coverage – 160+ destinations, 27 countries and 44 bases
• No. 1 for customer service delivery?
• Lowest price, highest punctuality
• Fewest cancellations and lost bags
www.thomaslawton.com@TCLawton
Projects and
Programs
Business
Model
Value
Proposition
VisionStrategic
Leadership
Strategic
Enactment
Strategic
Alignment
Strategic
Definition
Strategic
Thinking
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Extracting value from your value proposition
• Communicating what you are and what you offer
• Ensuring clarity and consistency to customer
• Making all elements of the value proposition synchronise
• Leveraging up to gain competitive advantage
www.thomaslawton.com@TCLawton
Generating a value proposition
1. Comprehensive
2. Comprehensive/
Standard
3. Standard
4. Standard/
Minimal
5. Minimal
1. Premium
2. Premium/
Competitive
3. Competitive
4.Competitive/
Leader
5. Leader
1. Original
2. Original/
Customised
3. Customised
4. Customised/
Basic
5. Basic
1. Excellent
2. Excellent/
Average
3. Average
4. Average/
Acceptable
5. Acceptable
1. Restricted
2. Restricted/
Selective
3. Selective
4. Selective/
Universal
5. Universal
1. Prestigious
2. Prestigious/
Respected
3. Respected
4. Respected/
Functional
5. Functional
PRICE FEATURES QUALITY SUPPORT AVAILABILITY REPUTATION
VISION FOR THE FUTURE
www.thomaslawton.com@TCLawton
Ryanair’s value proposition
1. Comprehensive
2. Comprehensive/
Standard
3. Standard
4. Standard/
Minimal
5. Minimal
1. Premium
2. Premium/
Competitive
3. Competitive
4.Competitive/
Leader
5. Leader
1. Original
2. Original/
Customised
3. Customised
4. Customised/
Basic
5. Basic
1. Excellent
2. Excellent/
Average
3. Average
4. Average/
Acceptable
5. Acceptable
1. Restricted
2. Restricted/
Selective
3. Selective
4. Selective/
Universal
5. Universal
1. Prestigious
2. Prestigious/
Respected
3. Respected
4. Respected/
Functional
5. Functional
PRICE FEATURES QUALITY SUPPORT AVAILABILITY REPUTATION
VISION FOR THE FUTURE
www.thomaslawton.com@TCLawton
In contrast…Emirates
value proposition
1. Comprehensive
2. Comprehensive/
Standard
3. Standard
4. Standard/
Minimal
5. Minimal
1. Premium
2. Premium/
Competitive
3. Competitive
4.Competitive/
Leader
5. Leader
1. Original
2. Original/
Customised
3. Customised
4. Customised/
Basic
5. Basic
1. Excellent
2. Excellent/
Average
3. Average
4. Average/
Acceptable
5. Acceptable
1. Restricted
2. Restricted/
Selective
3. Selective
4. Selective/
Universal
5. Universal
1. Prestigious
2. Prestigious/
Respected
3. Respected
4. Respected/
Functional
5. Functional
PRICE FEATURES QUALITY SUPPORT AVAILABILITY REPUTATION
VISION FOR THE FUTURE
www.thomaslawton.com@TCLawton
Instructions
• Form a group of about 6 people.
• Choose a company that at least one member of the group works for or leads.
• Select intended or existing product/customer segment to work on (be specific as to product and target customer).
• From this customer’s perspective, what is the nature of the value proposition that attracts them to your chosen product or service? (A) Plot this on the six pillars of the value proposition.
• Note – in practice, you will need to do multiple analyses in recognition of different customer groups and segments, but always start with those that are strategically most important.
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Instructions cont.
• (B) Select three competitor/substitute products/services and plot
these on the value proposition pillars relative to your product/service.
• (C) Identify where you can add value by leveraging up your
proposition relative to the competitors/substitutes. Express this in the
Value Proposition Statement.
• What are the implications of your analysis? Consider both the original
positioning of your product and the subsequent intended leveraged
value proposition. What are the issues facing your organisation or
team? How can you deliver on your improved proposition? These
questions will feed through into the third masterclass.
www.thomaslawton.com@TCLawton
Aligning your value proposition
1. Comprehensive
2. Comprehensive/
Standard
3. Standard
4. Standard/
Minimal
5. Minimal
1. Premium
2. Premium/
Competitive
3. Competitive
4.Competitive/
Leader
5. Leader
1. Original
2. Original/
Customised
3. Customised
4. Customised/
Basic
5. Basic
1. Excellent
2. Excellent/
Average
3. Average
4. Average/
Acceptable
5. Acceptable
1. Restricted
2. Restricted/
Selective
3. Selective
4. Selective/
Universal
5. Universal
1. Prestigious
2. Prestigious/
Respected
3. Respected
4. Respected/
Functional
5. Functional
PRICE FEATURES QUALITY SUPPORT AVAILABILITY REPUTATION
VISION FOR THE FUTURE
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