Aligning Your Value Proposition - InterTradeIreland your value proposition... · Aligning Your Value Proposition When the customer speaks, do you know how to listen? ... •Is Ryanair

www.thomaslawton.com@TCLawton

Professor Thomas C. Lawton

Aligning Your Value Proposition

When the customer speaks, do you know how to listen?

Insert my tag line here… trigger

growth etc. Masterclass 2


Configure your value proposition to…

Create a magnet company

- excite markets

- attract and retain customers

- repel new entrants

- render competitors unable to respond


GROWTH OPPORTUNITIES

Emergent Markets Established Markets

B

R

E

A

K

O

U

T

T

Y

P

E

Taking by

Storm

True Originals Revolutionaries

Laggard

to Leader

Wave Riders Big Improvers

Forging a magnet company


GROWTH OPPORTUNITIES

Emergent Markets Established Markets

B

R

E

A

K

O

U

T

T

Y

P

E

Expanding

Horizons

Boundary Breakers Conquistadors

Shifting

Shape

Early Adapters Power Players

Forging a magnet company

http://www.bestwestern.co.uk/

http://en.wikipedia.org/wiki/Image:Apple-logo.png

http://www.innocentdrinks.co.uk/


• Is Ryanair a magnet company and if it is, how

did it become so?


Ryanair’s routes to breakout

EXPANDING HORIZONBoundary Breaker

1997

EXPANDING HORIZONConquistador

2003

LAGGARD TO LEADERWave Rider

First budget airline in Europe

1992


Europe’s favourite airline?

Lowest fares and lowest seat cost in Europe

• No. 1 for traffic growth (2001: 8m; 2011: 72m)

• No. 1 for coverage – 160+ destinations, 27 countries and 44 bases

• No. 1 for customer service delivery?

• Lowest price, highest punctuality

• Fewest cancellations and lost bags


Projects and

Programs

Business

Model

Value

Proposition

VisionStrategic

Leadership

Strategic

Enactment

Strategic

Alignment

Strategic

Definition

Strategic

Thinking


Extracting value from your value proposition

• Communicating what you are and what you offer

• Ensuring clarity and consistency to customer

• Making all elements of the value proposition synchronise

• Leveraging up to gain competitive advantage


Generating a value proposition

1. Comprehensive

2. Comprehensive/

Standard

3. Standard

4. Standard/

Minimal

5. Minimal

1. Premium

2. Premium/

Competitive

3. Competitive

4.Competitive/

Leader

5. Leader

1. Original

2. Original/

Customised

3. Customised

4. Customised/

Basic

5. Basic

1. Excellent

2. Excellent/

Average

3. Average

4. Average/

Acceptable

5. Acceptable

1. Restricted

2. Restricted/

Selective

3. Selective

4. Selective/

Universal

5. Universal

1. Prestigious

2. Prestigious/

Respected

3. Respected

4. Respected/

Functional

5. Functional

PRICE FEATURES QUALITY SUPPORT AVAILABILITY REPUTATION

VISION FOR THE FUTURE


Ryanair’s value proposition

1. Comprehensive

2. Comprehensive/

Standard

3. Standard

4. Standard/

Minimal

5. Minimal

1. Premium

2. Premium/

Competitive

3. Competitive

4.Competitive/

Leader

5. Leader

1. Original

2. Original/

Customised

3. Customised

4. Customised/

Basic

5. Basic

1. Excellent

2. Excellent/

Average

3. Average

4. Average/

Acceptable

5. Acceptable

1. Restricted

2. Restricted/

Selective

3. Selective

4. Selective/

Universal

5. Universal

1. Prestigious

2. Prestigious/

Respected

3. Respected

4. Respected/

Functional

5. Functional




Value proposition statement: Ryanair


In contrast…Emirates

value proposition

1. Comprehensive

2. Comprehensive/

Standard

3. Standard

4. Standard/

Minimal

5. Minimal

1. Premium

2. Premium/

Competitive

3. Competitive

4.Competitive/

Leader

5. Leader

1. Original

2. Original/

Customised

3. Customised

4. Customised/

Basic

5. Basic

1. Excellent

2. Excellent/

Average

3. Average

4. Average/

Acceptable

5. Acceptable

1. Restricted

2. Restricted/

Selective

3. Selective

4. Selective/

Universal

5. Universal

1. Prestigious

2. Prestigious/

Respected

3. Respected

4. Respected/

Functional

5. Functional




Value proposition statement: Emirates


Group Work

Align and leverage up your value proposition


Instructions

• Form a group of about 6 people.

• Choose a company that at least one member of the group works for or leads.

• Select intended or existing product/customer segment to work on (be specific as to product and target customer).

• From this customer’s perspective, what is the nature of the value proposition that attracts them to your chosen product or service? (A) Plot this on the six pillars of the value proposition.

• Note – in practice, you will need to do multiple analyses in recognition of different customer groups and segments, but always start with those that are strategically most important.


Instructions cont.

• (B) Select three competitor/substitute products/services and plot

these on the value proposition pillars relative to your product/service.

• (C) Identify where you can add value by leveraging up your

proposition relative to the competitors/substitutes. Express this in the

Value Proposition Statement.

• What are the implications of your analysis? Consider both the original

positioning of your product and the subsequent intended leveraged

value proposition. What are the issues facing your organisation or

team? How can you deliver on your improved proposition? These

questions will feed through into the third masterclass.


Aligning your value proposition

1. Comprehensive

2. Comprehensive/

Standard

3. Standard

4. Standard/

Minimal

5. Minimal

1. Premium

2. Premium/

Competitive

3. Competitive

4.Competitive/

Leader

5. Leader

1. Original

2. Original/

Customised

3. Customised

4. Customised/

Basic

5. Basic

1. Excellent

2. Excellent/

Average

3. Average

4. Average/

Acceptable

5. Acceptable

1. Restricted

2. Restricted/

Selective

3. Selective

4. Selective/

Universal

5. Universal

1. Prestigious

2. Prestigious/

Respected

3. Respected

4. Respected/

Functional

5. Functional




Leveraging up your value proposition

Documents

Aligning Your Value Proposition - InterTradeIreland your value proposition... · Aligning Your Value Proposition When the customer speaks, do you know how to listen? ... •Is Ryanair