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Value Proposition ‘The value proposition is defined as an implicit promise a company makes to its customers to deliver a particular combination of values’.

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Presentation on theme: "Value Proposition ‘The value proposition is defined as an implicit promise a company makes to its customers to deliver a particular combination of values’."— Presentation transcript:

1 Value Proposition ‘The value proposition is defined as an implicit promise a company makes to its customers to deliver a particular combination of values’. Each proposition searches for an unique value that can be delivered to a chosen market by re-inventing the businesses.

2 Concept of Memorable Product
The cheapest price everyday Exp. Alfa & Makro Guarantee : difference prices payback Commodity – Fungible – price level had been fixing by market power Commodity is extractives, or non-taste be sides of it function that had been taking from nature

3 Commodity-Goods & Service
Commodity transformation to goods & services, through technology & merk (brand) Exp. : (Aqua, Ades, Total, etc.) Commodity – goods – merk – service – experiences Exp. : Singapore Airline, not selling fungible & intangible, but MEMORABLE (a great fly with singapore girl)

4 Price & Memorable Exp. : if Suzuki Baleno used raw material that exacly similar quality with Mercy E320 & it will be selling in equal price, & than it will be a consumer doubt, because memorable of Baleno & Mercy E320 is quite difference

5 Memorable & Value Pricing
Memorable is very closely connected with Value Pricing PRICE is what you buy, & VALUE is what you get Value = Benefit / Price

6 How do the Value Propositions impact your business?
Market Segments (Re-definition of markets) Financial Investments Organisational Competencies and Capabilities Marketing Strategy STRATEGY Value Propositions Product Development Production Process Supply Chain Delivery Systems Customer’s relationships Supplier’s relationships OPERATIONS Are there generic Value Propositions??? The Value Proposition shapes any subsequent plan and decision that the company makes

7 Operational Exellence
Value Propositions Strategy Product Leader Customer Intimacy Operational Exellence

8 The Value Matrix HARD SOFT INNOVATORS BRAND MANAGERS PRICE MINIMISERS
Product Leaders Operational Excellence Customer Intimacy INNOVATORS BRAND MANAGERS PRICE MINIMISERS SIMPLIFIERS TECHNOLOGICAL INTEGRATORS SOCIALISORS

9 Hard Vs. Soft HR R&D Technology Competence Knowledge Creation Core
Technological background. Designing , operations. High level of investigation, continuous innovations, development of new generations (products). Authors of technological changes. They are the specialists on one area (thing). Fresh developers of technological Knowledge. Breakthrough marketing, sales, management. R&D to create image, new concept to sell something, build new ways of management. They make use of the existing technology. Mix of talents and capabilities Their knowledge resides in management of people, tacit knowledge.

10 What the Company needs to do?
Value Proposition STRATEGIC OBJECTIVES OPERATIONAL OBJECTIVES Innovators Continuous breakthrough through new designs, new features, etc. R&D and product development Capacity to innovate Short product lifecycle Brand Managers Market expansion by reinforcing the solid brand image of the product Product styles, quality and promotions Brand recognition Price Minimisers Production growth, high quality levels in the most cost-effective way and waste free Efficient and effective production processes Tight quality control processes Simplifiers Streamlined processes to make life simple and un-complicated for customers Availability and accessibility Efficient order fulfillment-distribution Tech. Integrators Tailor specific and continuous solutions Strong relationship with customers Knowledge of customers’ businesses Capacity to configure any specific need Socialisors Build confidence and trustiness on the customer Sensitive fulfillment of customers’ needs Excellent personal service

11 The Value Matrix HARD SOFT Strong design skills
Obsolete their own products Innovative & user friendly designs Introduce new technology The Value Matrix Capabilities of brand positioning Clear direction of product style Reputation and name building HARD SOFT Innovators Brand Managers Customer Intimacy Operational Excellence Product Leadership - JOHNSON & JOHNSON - SAMSUNG - SONY - MICROSOFT M - MORGAN MOTOR COMPANY - HARLEY DAVIDSON - NIKE - HIGHLAND SPRING - Streamlined processes Simplification process Automation order generation & fulfillment Lead times reduction Cost minimisation Efficient processes Price Minimisers Simplifiers - EASY JET - SCREW FIX DIRECT - FEDERAL EXPRESS - AMAZON - HOUSTON WAREHOUSING - TOYOTA - CASIO - HONDA Emphasis in service delivery Close relation to build trust Socialisors Technological Integrators Capabilities to configure any specific customers’ need Specialisation in few customers’ businesses - ICI EXPLOSIVES - ROADWAY LOGISTICS - IBM GLOBAL SERVICES - ALCAN CHEMICALS - SCS - HOME DEPOT

12 How to make your business’ value proposition work?

13 Is the value proposition concept can be impelemented in the commercialization process of animal biotechnology?

14 What are the value propositions of animal biotechnology?

15 Safety Healthy Unique Reasonable Price Efficient Productive
What’s else? Exp. probiotic


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