BLOCK N°2: Value Propositions
This block designates the combination of products and services that offer Value for the customers segments. In other words is the offer that meets the needs of the customers segments block we already selected in the previousblock.
And keep in mind, the Value propositions is the reason why customers choose you and not your competitor.
In this sense, each customer segment deserves a unique value proposition which has to please and fulfil his desires.
Note: F(Desire’s Customers Segments) = Values Propositions
The combination of different elements creates a unique value proposition.Below you can find a list of some elements contribute to the creation of a specific value proposition:
- Newness: Satisfaction of new needs not yet perceived by the customers
- Performance: Boosting performance. Example: more disk storage for PCs;
- Customization;
- Getting the job done: Outsourcing products;
- Design;
- Brand/Status;
- Price;
- Cost reduction of an another product. Example: Electric cars reduce the oil budget;
- Risk Reduction: Example Warranty for a used car;
- Accessibility;
- Convenience/Usability;
Scanning the above list, we distinguish two kinds of values propositions elements:
1- Quantitative: Price, Performance..
2- Qualitative: Design, Accessibility..
Example: iPod Values Propositions
As we mentioned it before, Apple offered a better value proposition by mixing the below ingredients:1- Design: A original and distinctive IPods design: Design Element
2- Software: A user-friendly software the iTunes: Usability Element
3- On-line Store: Possibility to buy or download content: Accessibility Element.