Know-How Exchange

Ask your question ... sign up today! It's FREE!

Topic: Strategy

Search more Know-How Exchange Q&A from Marketing Experts

This question has been answered, and points have been awarded.

Examples Of Value Propositions - Good, Bad & Ugly

Posted by ASVP/ChrisB on 2/19/2004 at 6:32 PM ET 125 Points

I am looking for examples of Value Propositions used by companies for their products or services, with a brief anecdotal (or researched!) explanation of whether they are successful, or not, with perceptions or opinions of the reasons for their success (or otherwise).

I would like to use these as case study material to show examples of Value Propositions that have worked, those that haven't, and to try to draw out some of the reasons why.

The ultimate aim is to assist businesses to develop their own Value Propositions that are lucid, executable, and hold up in the marketplace, so they have a good chance of success.

What other factors do you think may be important to support a strong Value Proposition?

Posted by Sharon on 2/19/2004 at 11:42 PM Moderator

Check out this article on this site.

http://www.marketingprofs.com/3/perla8.asp
Posted by Steve Wasiura on 2/19/2004 at 11:58 PM Member

You can look at my VP, I don't know if it is G,B, or U, but that's why I'm here to learn how to do it better.

http://www.waztech.com

So far my clients seem to agree with my value proposition as being lucid (easy to understand), executable (I deliver what it says), and offers a differentiation in the market that sets me apart from my local competitors.
Posted by DavidatHaley on 2/19/2004 at 11:59 PM Member

What's worked (some of these may be more positioning messages than value propositions, but the concepts are related):

Walmart - everyday low prices
BMW - the ultimate driving machine
7up - the uncola
McDonald's - consistency
Domino's pizza - fast delivery
Google - fast, extensive searches
Avis - we try harder

What didn't:

Nearly every dot com
Most companies that try to occupy a middle position (not a quality or cost leader) never develop clear value propositions.

What makes a value proposition work (in my opinion):
1) Having a tangible difference in a characteristic of your product or service...one that actually matters to your customers. For example, you could have a restaurant whose value proposition is unique food, and they only serve meals dyed blue. Do the restaurant have a clear value proposition? Sort of. Would you eat there? 'Nuff said.

Most often a real value proposition comes from:
a) Better process (Walmart)
b) Better people (McKinsey & Company)
c) Better raw materials (luxury food items)
d) Scarcity (diamonds)

Interestingly enough, most value propositions usually promise better value, better quality and/or better service, but you can't use any of these terms to define your value proposition.

2) Being extremely focused in the market you serve. A value proposition is a double edged sword. IT shows what differentiates your services, but it also limits the market you serve. Many companies are unwilling or afraid to let go of part of the market, and therefore choose value messages that have little or no meaning. This is particularly true of small businesses in highly competitive industries.

3) Having a tangible way to prove your value. For example, Walmart became the low price leader as a direct result of their information systems and invenyory management procedures.

4) Having laser-beam like focus and consistency in living and promoting your value. Disney maybe the perfect example of a company that has lost its value proposition. They used to be the owners of family fun, but now they are a muddled mess.

5) I also think it helps to keep the message simple.

Hope you find these opinions helpful!

David
Posted by ASVP/ChrisB on 2/24/2004 at 8:32 PM Author

Thanks everyone, some excellent answers here.

Particularly valued the comments about strategy alignment and confusion with differentiation or positioning. I think this is the key - otherwise the VP becomes merely sloganism.

Aligned strategy ensures the VP is deliverable at all levels of the organisation. Great input, thanks all.

Top

More on Marketing Strategy

4 in 10 CMOs Feel Unprepared for ... by Ayaz Nanji
Nearly four in 10 chief marketing officerssay they do not have the right people, tools, and resources to meet their marketing objectives, according to a recent report.
One-Third of Americans Regularly Listen to Online ... by Ayaz Nanji
One in three Americans age 12 and older, or an estimated 86 million people, now listen to online radio on a weekly basis, and weekly audience size of traditional AM/FM radio grew from 223 million to 243 million over the past year, according to a recent survey.
A Century of Marketing Media and Measurement: ... by Verónica Maria Jarski
To demonstrate how marketers have adapted to media innovations through the last century and developed measurements for them, IfbyPhone created the following infographic about the evolution of the "growth hacker" from the 1920s to today.
The Importance and ROI of Events: Marketers ... by Vahe Habeshian
Even as events remain a vital part of the marketing mix, and a key channel for direct one-to-one customer engagement, marketing executives—lacking visibility into the conversion pipeline—don't have sufficiently effective methods for measuring the impact of events and tradeshows on sales and revenue (and therefore can't prove ROI).

See more marketing articles »

Take 10: A Step-by-Step Guide to Product Selection

In just 10 minutes, we'll share a comprehensive step-by-step approach to product selection that will step up your selling success!
Sharing is Caring

In this free MPU class from our MarketingProfs University course, Cracking the Facebook Code, you'll see examples of how Facebook can be used to attract and engage clients and learn how Facebook can be a powerful tool for non-profits and for-profits alike.
How to Use a Customer Advocacy Program to Tap ...

This PRO seminar will show you how a growing number of firms are devising creative and effective ways to involve their customers in marketing and selling for them.
Trigger Happy: The Next Level of Campaign Automation

Learn how to use campaign automation techniques across your welcome, order confirmation, and other communications programs to significantly lift program response and transaction rates (not to mention dramatically increase revenue). Sponsored by Experian Marketing Services.