Promises made to customers are sacrosanct. They propel the brand value to great heights. It’s an assurance of the benefits that your company can provide them. There should be utmost clarity in the value proposition. Conciseness is what the customer seeks.
New value propositions can be built on understanding how your competitors deliver their strategies and values. This will help in improving your overall marketing activities.
You can work on developing and understanding your value proposition by breaking the process down into steps.
1.0 Importance of Value Proposition
1.1 Product Focus
1.2 Price Focus
1.3 Customer Focus
2.0 Comparing Value Propositions
2.1 Blue Ocean Strategy
2.2 Differentiating Factor
2.3 Brand Promise is Important
One of the key elements of a good value proposition strategy is to know how to deliver excellent market value. The main focus should be on product domination, customer relationship and achieving operational mastery. This focus should become visible in positioning, distribution and messaging. The critical components of a value proposition are:
Customers are attracted to the latest technologies and services. Since you are creating a differentiating factor in the quality level of your product or service, the customers may reasonably expect a higher price for your product. Innovation is the key here.
Latest breakthroughs in manufacturing processes can improve the scale of economies and increase efficiency. Your product may occupy a mid-level position in the range of quality when compared to other similar products. Companies are always trying to decrease costs in operations.
The focus is on providing customized solutions to customers. Your aim is to focus on the superiority of your relationship with customers compared to other brands. You have to understand the importance of delivering market value as you gain momentum in brand building and market interaction.
Identification of the needs of the customer should be done and then craft an intelligent value proposition. A clever value proposition will enhance your business prospects. Take some of the following value proposition as an example:
The value proposition should define the problem that you wish to solve. Creation of target customer profiles for whom the problem needs to be solved should be done. You need to lay out with clarity the key differentiators from your competition.
Once you get a good idea on the core of your value proposition, it is useful to gather intelligence on the value propositions of your competitors’. This will help you gain key insights into the arena of competitive positioning and the mindshare you’d like to possess.
If your competitor is trying for excellence in the area of operations then you have a chance to focus on customer relationship. It is important to differentiate yourself by entering new unexplored areas in the market.
This is a marketing concept that intends to create new spaces in the business environment. It is like creating a problem and then delivering the solution. Creation of demand is the core of this strategy. This strategy is devoid of competition in the initial stages so that you can get a head start. In this strategy, you set the rules. New market spaces can be explored and deeper potential can be created. The idea is to deliver added value proposition, this strategic sets your company apart from the rest and creates new avenues for business profitability.
Understanding your competitions’ value proposition is the key to be a step ahead with this strategy. Your value proposition should explain the relevance of your products. The specificity of delivered benefits should be clearly stated in the value proposition. Differentiation by the constant pursuit of your competitor’s core value proposition will increase your brand efficiency. The cosmetic sector is a highly competitive field. They visualize the value proposition you write and expect the same in your product. In short, if the client is impressed by your company’s value proposition, it means that your product has already been sold.
It is important to integrate your value proposition into the business strategy of your company. For example, Apple bases its entire marketing strategy on innovation. The higher cost of the apple product is supported by product development and marketing campaigns. It is very useful for a company to deliver one variety of value to a particular customer segment and another value to a different one. It is important not to exaggerate your ability to deliver market value and to be realistic. It is important to put yourself in the shoes of the customer. You can rate yourself on your competence to deliver the value proposition on a scale of 1 to 5. 5 being in a position to deliver high value, 3 being average and 1 denoting delivery of low or no value at all.
It is critical to compare the value proposition of your product and your competitors’. Competitive positioning is all about carving a separate space in the market. Your focus should lie on the factor of differentiation, as to what value you should concentrate on to stay a step ahead of the competition. If there is no difference in the value of your product and your competitors, then the customer will not be in a position to distinguish your particular market value.
Always adopt an optimistic outlook in creating new un-chartered differentiating areas. To change the perception of your customers regarding your product change your marketing strategy. The important factor here is analysis. By doing so, one can make strategic business decisions. The foundation of a successful business is a thorough market analysis. Critical insights on economy shifts, present trends, changing demographics can be derived from a high-quality market analysis.
A brand promise is the core of your business. It is a vital part of your brand identity. By seeing your brand promise, clients engrave expectations in their mind and any deviance on your part will lead to a massive fall in the appeal of your brand. A brand should avoid doing things that come into conflict with their external messaging mechanisms. In the era of social media, customers who get disillusioned by your brand promise can be weapons of mass destruction.
In the beauty industry, try to keep your brand promise short. The message should be streamlined in such a way that more is communicated with less number of words. The philosophy of your brand promise should be simple. It should paint a vivid picture by removing the unimportant words. The attention span of people is getting less. Say less and let the imagination of the customers do the rest. Investing in product marketing will not make much difference if there is a disconnect between your consumer's expectations and brand promise, perception is all that matters. Even if you deliver the product with perfect quality, it is their perception of your product that can make or break your company’s marketing strategy. Companies should try to win the hearts and minds of the consumers by creating a positive perception regarding brand promises.