1. Value Proposition, content & structure Expro 100 Engineering The Hague November 2013 Martin Bitter Exportant

3. What is the value of: A piece of Nylon rope, A musketon klem A piece of chain

5. 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

6. Characteristics of USP a short sentence a clear, understandable statement it is believable and realistic it is composed of one benefit (or a combination of benefits) that is/are unique to your company or product

7. 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 could be User Benefit of a deep well pump? A central heating waterpump?

8. 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 resists sand and reduces sand locking. Stainless steel pump and motor housing for long life. Heavy-duty 1 1/4in. NPT discharge connection. Water-filled submersible motor. Precision-molded impellers and diffusers. 230 Volts. Includes built-in check valve. UL approved. 3-year limited warranty.

9. 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? it is composed of one benefit (or a combination of benefits) that is/are unique to your company or product

10. Value proposition? Summarizes the customer segment, competitor targets and core differentiation of one’s products from the offerings of the competitors

11. Value proposition? Why should I buy this product or service? Why should I do anything at all? Is a clear and specific statement about the tangible benefits

12. Successful Customer Value Prop. Building blocks: Benefits in a context How do benefits compare to next best alternative Value elements Points of parity, elements essentially same as nba Points of difference, elements that make the offer inferior or superior Points of contention, supplier and customer disagree how performance compares to nba

13. Writing a value proposition First sentence: For (target customer) who (statement of the need or opportunity) the (product/service name) is a (product/service category) that (statement of benefit) Asserts the value of the offering

14. Writing a value proposition First sentence: For glass greenhouse growers of bromelia’s and palms who perform in house crossing and breeding the Verdi software system is a crossing management tool that results in an uniform procedure for the entire breeding department and an increase in capacity per breeder of min 20% Asserts the value of the offering

15. Writing a value proposition Second sentence: Unlike (primary competitive alternative) Our product (statement of primary differentiation) Asserts the positioning of the value

16. Writing a value proposition Second sentence: Unlike manual breeding logbook keeping our Verdi management system allows for faster and better overview of all possible crossings, secures your knowledge assets and allows for “on the floor” decision making Asserts the positioning of the value

17. 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”

18. Value identification essence: A thorough needs analysis with the value proposition targets (employees, partners, customers)

19. Value descriptions Qualitative, quantitive Focus : functional, financial or emotional (ROI, TCO, status, looking better) or “willingness to pay” (quantitive) You need to understand the target’s language, become part of the group and on “the inside”

20. Determining content Internal analysis A: look at value chain (internal logistics>operations>external logistics>sales&marketing>service), how do 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?)

21. Determining content External analysis A: How do your value targets quantify (measure) the delivered value? B: How to link your value proposition to 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?

22. Types of value proposition

23. So…. It is about CUSTOMER Value Show Customer Value in advance: be creative! Research and document Customer Value

24. Dynamic Rubber Pvt Ltd. case: Group exercise Read Corporate Profile Dynamic Rubber Ltd. Read Fancord product overview For Fancord Poly-V belt: List 5 USP’s List 5 User Benefits Make Value Proposition

25. CORPORATE PROFILE Dynamic Rubber Industries (P) Ltd., DRIL was established in 1972 in India with an objective to manufacture and market Vee and Fan Belts under the brand name "FANCORD". Today DRIL is a specialist in Automotive Timing Belts, Poly VBelts (Multi ribbed V Belts) and Raw Edge V Belts in Cogged, Plain and Laminated constructions. DRIL is ISO 9001 2002, ISO/TS 16949 2002, ISO 14001 2004 certified company. DRIL is in the process of integrating OHSAS 18001 with ISO 14001. DRIL has several OEM customers in India and won the best performance awards and certificates from certain OEMs. DRIL's 'FANCORD' drive belts conform to International standards such as IS/BS/DIN/SAE/JASO etc besides OEM standards. DRIL exports the Timing Belts, Poly V Belts and Raw Edge Belts to various countries to mention a few: Australia, Hong Kong, U.S. U.K., Turkey, Algeria, Mauritania, Bolivia etc. DRIL is the first Indian Manufacturer to produce Profile Ground Poly V Belts. DRIL is the first Indian Manufacturer to successfully develop and introduce into the market FANCORD Synchro Drive Timing Belts for a wide range of passenger cars. DRIL is the first Indian company to introduce drive belts in high performance, non conventional environment friendly materials.

26. FANCORD AUTOMOTIVE POLY-V BELTS PRODUCT OVERVIEW FANCORD POLY-V BELT is the solution to the drive design problem faced by todays' automobile engineers. With the ever increasing demands in vehicle engine design, the O.E. automotive engineer is expected to achieve higher efficiency, reliability, compactness and longer life of the automotive drive FANCORD POLY-V BELT with its multiple advantages offers the right choice to the automotive engineer. HIGHER DRIVE EFFICIENCY The multiple V-rib design of FANCORD POLY-V BELT provide more contact area than conventional V-belts. This in combination with the excellent flexibility of the Poly-V belt reduces transmission losses, towers heat build- up resulting in higher overall efficiency of the drive. COMPACT DRIVE LAYOUT The greater tensile and contact area of FANCORD POLY-V BELT increases the power transmission capacity enabling O.E. automotive engineers to replace multi V-belt accessory drives with a single FANCORD POLY-V BELT. Moreover the back face of the belt is also used to drive an accessory. This unique feature enables FANCORD POLY-V BELT to be used in compact serpentine drives. The higher flexibility of FANCORD POLY-V BELT permits the use of smaller lighter pulleys ensuring optimum utilisation of space and weight. HIGH RELIABILITY AND LONG LIFE The use of high strength polyester cord, stringent quality control methods and choice of high quality raw materials, ensure high in-service reliability and longer service life of FANCORD POLY-V BELT in the high under bonnet temperatures of modern engines Polychloroprene impregnated fabric High tensile polyester cord. Polychloroprene cushion Fibre loaded polychloroprene ribs FANCORD POLY-V BELTS are available for all vehicles manufactured in India and a few imported vehicles

27. Exercise Now YOUR Company!! Look at the presentation in your company brochure Draft a value proposition directed at a German prospective client