1. Business Plan Preparation
Frank Moyes Leeds School of Business University of Colorado Boulder, Colorado
Value Proposition and Business Analysis

2. Value Proposition and Business Analysis
Tonight’s Agenda
Topics
Value Proposition
Business Analysis
Locomotion Business Plan
In the Fire - Opportunity/Need
Write Value Proposition
Team meetings
Value Proposition and Business Analysis

3. Value Proposition and Business Analysis
Next Week
Topics
PRODUCT/SERVICE DESCRIPTION
Margins
Aaron Kennedy – founder of Noodles
Assignment: read BP pp 6-7
Hand-in:
3 Alternative Value Propositions
Customer survey questionnaire
Activity: In the Fire
Market analysis
Interview results
Value Proposition and Business Analysis

4. Value Proposition and Business Analysis
Product/service features
Target market
Benefits
Value Proposition and Business Analysis

5. Product/Service Features
Description of attributes & environment
What is unique?
How produce & deliver?
Don’t assume people know or understand your product/service
Description
Specifications
Drawings
Photographs
Rendering
Other Product Issues
Customer support
Warranty
Repair service
Training
Technical Support
Value Proposition and Business Analysis

6. Value Proposition and Business Analysis
Target Market
Targeted entry point based on segmentation
Demographics & psychographics
Must understand how make buying decisions
Business sector, size, characteristics
Value Proposition and Business Analysis

7. Value Proposition and Business Analysis
Benefits
Emotional: ambition, power, independence, achievement, ambition, pride of ownership, comfort, love, friendship, security, style, self improvement, etc.
Social: status, image, popularity with friends or family members, reputation of brand, personal relationships, style, fashionable, etc.
Health: stress, fitness, mental capacity, strength, sex life, quality of life, muse, etc.
Financial: revenue, costs, savings, productivity, pricing, profitability, market share, save time, productivity, etc.
Value Proposition and Business Analysis

8. Simple Value Proposition SST Corporation
Simple Value Proposition SST Corporation
“SST is a stainless steel toothbrush company. By its one bristle brush made of high tensile stainless steel, it provides an exhilarating tooth cleaning experience to thrill-seeking X-gen consumers”
Value Proposition and Business Analysis

9. Simple Value Proposition Pete’s Coffee
“Pete’s Coffee is a Denver based coffee house. Its gourmet coffee, convenient and fast service provide a welcoming environment for people who want to meet with their friends and a stimulating morning coffee for the on-the-go business person.
Value Proposition and Business Analysis

10. Value Proposition and Business Analysis
Why segmentation is important
Differentiation is essential
Home work for next week
3 alternatives value propositions
So what! Why should your customer should care?
Value Proposition and Business Analysis

11. Value Proposition and Business Analysis
Market Segmentation
Groups of customers – (demographics & psychographics) baby boomers, grandparents
Products – features, benefits, prices
Benefits – enhance image, trend setter, weather protection, save money
Geography – see Hecho en Casa business plan
Distribution channels
Sector – industrial (see MRT business plan), consumer, government
Value Proposition and Business Analysis

12. Business Analysis Assignment
Present Nov 1PowerPoint 10 minutes, 6-8 slides
Market Analysis
Industry Analysis
Product/Service Description
Profitability
Value Proposition and Business Analysis

13. Business Analysis Assignment (cont)
Hand-in 3 ring binder
Market Analysis - draft
Industry Analysis - draft
Product/Service Description - draft
Value Chain analysis
Competitive matrix
Financial COMP’s
Revenue Model
20 interview Call Reports
Value Proposition and Business Analysis

14. Value Proposition and Business Analysis
Next Week
Topics
PRODUCT/SERVICE DESCRIPTION
Margins
Aaron Kennedy – founder of Noodles
Assignment: read BP pp 6-7
Hand-in:
3 Alternative Value Propositions
Customer survey questionnaire
Activity: In the Fire
Market analysis
Interview results
Value Proposition and Business Analysis

15. Differentiation Road Map
Brand
Trademark
Bundling
Delivery
Warranty
Installation
Time of sale
Service
After sales
Special terms
Usergroups
Design help
Communications
Augmented Attributes
Features
Packaging
Quality
Color
Size
Style
Options
Timeliness
Customize
Tangible Attributes
Core Needs
What’s it for?
What’s it do?
Example:
Morton Salt
Value Proposition and Business Analysis