Product Value Proposition and Value Propositions Portfolio

A Product Value Proposition model provides a very practical tool to position a product or product range or Value Propostions Portfolio in the eyes of customers and market chunks. It also encourages product managers and product developers to build in product innovation in developing, marketing and selling processes.

Some companies have implemented the concept of a "Whole Product"" or "Whole Product Range" which includes the intangible as well as the tangible elements which make up the total product, service and brand benefits which customers buy. This encourages us to think beyond the core style and functionality aspects of a product to the wider service and brand components which can be used to differentiate our offerings.
The Value Proposition model and tools extends this concept into a practical methodology.Here Value Proposition or VP uses ‘value’ to describe the mix of benefits which are sought by customers and ‘proposition’ to include product and other aspects of an overall offering.

VALUE = the mix of benefits and advantages (Whats) which will be valued by customers (Whos) and the effort required to acquire and support.

PROPOSITION = the package of product, service, capabilities and marketing (Hows) and price or total cost of ownership.

Leadership in developing, marketing, supplying and supporting products for customers is a very direct way to achieve commercial and market success. However, leadership does not necessarily mean either technically superior products or the cheapest but rather the best ‘value proposition’ for a targeted set or ‘chunk’ of customers.
The notion of Value Proposition Leadership provides a fresh approach to gaining leadership from a product perspective, whether your 'products' are physical products, non-physical products (e.g. information, software, media content …..) or service offering
Value Proposition is a practical tool which combines the Who, What and How in customer terms to help a company develop and position its offerings in ways their customers can relate to.

Value Proposition Leadership

Value Positioning

Value Claim to help sales process

The ‘what’ aspects relate to the value and benefit expectations of those customers together with their perceptions of the effort and money they are willing to invest to acquire the value provided by the VP.The other side of the VP model describes ‘how’ the supplier achieves value for customers and themselves. The hows relate to:

Product hows, which can include: functionality; usability; desirability; reliability; supportability etc. from the point of view of, say, business users and technical buyers.

Service hows, which can include: pre-sales advice; billing; choice and flexibility; service level agreements, service support etc.

Capabilities, which can include the suppliers: people skills; financial resources; business processes etc.

Marketing tangibles, which can include: customer base; relationships; referrals; routes to market; marketing brochures etc.

Marketing intangibles, which can include: reputation; company image; brands etc.

Price, financials or total cost of ownership

Effort, in terms of minimising the effort required by customers to acquire, use and support the VP

We use a linked worksheet tool to implement the specification of a VP and tailor the model for specific client requirements.

This is true for companies developing and managing physical products, non-physical products or service offerings in variety of industries such as : Electronics; Telecoms; Software and High Technology; Engineering and Manufacturing; Chemicals; Ceramics and Building products; Financial Services ............
It also applies whether companies are Business to Business (B2B); Business to Business User (B2U); Business to End-User (B2E) and Business to Consumer (B2C) in terms of underlying principles but methods and tools need to be adapted and tailored for specific situations.

We are experienced in adapting and tailoring methods and tools for the specific situation of our clients.
To encourage integration of the value vectors of Customer Market Focus and Product Service Offering Leadership supported by Operational Excellence we have worked with several companies to develop and implement practical models, methods and tools which can be used across the vectors to integrate understanding and information, these include:

Value Proposition (VP) and Experiential Value Proposition (EVP)

Value Network (VN) of customers, customers' customers, contingents, collaborators, competitors, co-workers ….

Value Positioning

Customer Life Cycle and Touch Zone Experiences

Competitive Analysis

The Value Proposition (VP) tools and methods are applicable for companies developing and managing physical products, non-physical products or service offerings in variety of industries such as : Electronics; Telecoms; Software and High Technology; Engineering and Manufacturing; Chemicals; Ceramics and Building products; Financial Services ............
It also applies whether companies are Business to Business (B2B); Business to Business User (B2U); Business to End-User (B2E) and Business to Consumer (B2C) in terms of underlying principles but methods and tools need to be adapted and tailored for specific situations.
We are experienced in adapting and tailoring methods and tools for the specific situation of our clients.

For additional information relating to the way Value Propositions can be used to implement Customer Market Focus and Product Service Offering Leadership, click on the links below:

Customer Market Focus and Product Service Offering Leadership

Value Proposition Implementation programmes
An Implementation Programme is designed to generate and deliver improvements and better results from applying Value Proposition Tools and methodology to define and manage a Value Propositions Portfolio. It can also include elements of a skills development programme.
We can help you tailor and implement best practices and methods best suited to your company, business unit, market and industry.

Typical Programme Steps
Each programme is tailored to the client's situation, but typically comprises the following deliverables: draft set of plans; frameworks and models; toolkits, facilitated workshops and software.
A typical programme comprises:

An assessment of current products and Value Propositions

Introduction to principles and methods, in say a facilitated workshop

Agreement of programme objectives and methods

Agreement of programme deliverables

Tailoring of VP models, toolkit and software for client's specifics

Facilitated workshops, 1:1 and 1:n coaching to transfer understanding and apply tools in client's application.

Pilot project to test and prove methods and tools

Off-line telephone and e-mail support

Toolkits:
Our approach installs an advanced set of tools to help achieve improvements and results. We assemble these tools into a toolkit for a client's specific situation. Examples of tools include:

Value Vectors
Value Network
Value Proposition model
Experiential Value Proposition (if applicable)
SWOT Chart

Software Packages and Templates
Many of the tools are provided with Excel or Web based software packages or templates to facilitate practical use and ease of learning

These include:

S1: Market and Product Portfolio Planning
S2: Customer and Competitive Analysis
S6: Product Definition and Specification
S20: In Market Product Portfolio management
Market Requirements Definition (MRD) template
Market, Business and Build (MBB) Definition template
Customer, Business and Build (CBB) Definition template

Free Proposal

We can provide a free proposal, including programme outline with costing, to meet your requirements - please contact us.

For more information click on the links below:

Product Marketing and Management
Product Strategy and Product Portfolio Strategy: framework and tools
Product Definition (PD) and pragmatic Quality Function Deployment (pQFD)
Voice of Customer (VoC) and Market Research
Competitive Analysis and Competitor Analysis
New Product Introduction (NPI) or New Product Development (NPD)
In Life or In Market Management of Current Products
Product Value Proposition and Value Propositions Portfolio
Product Development, Marketing and Management Software Applications
Product Management and Product Manager Training