Business Plan Preparation

Value PropositionFrank Moyes

Leeds School of BusinessUniversity of Colorado

Boulder, Colorado

1Value Proposition

Tonight’s Agenda Topics

Value Proposition Is This a Real Business

Presentation In the Fire Team meetings

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Next Week Topics

PRODUCT/SERVICE DESCRIPTION Margins Elevator pitch

Assignment: read BP pp 6-7 Hand-in:

3 Alternative Value Propositions Model Company description F2F Step 3: Sniff Test

Activity: In the Fire

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Value Proposition Product/service features Target market Benefits

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Product/Services Description of attributes Key features & environment What is unique?

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Target Customer Who uses?

Consumer - demographics & psychographics Business - industry/sector, size, characteristics

Who pays?

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Benefits Emotional: ambition, power, independence,

achievement, ambition, pride of ownership, comfort, love, friendship, security, style, self improvement, etc.

Social: status, image, popularity with friends or family members, reputation of brand, personal relationships, style, fashionable, etc.

Health: stress, fitness, mental capacity, strength, sex life, quality of life, muse, etc.

Financial: revenue, costs, savings, productivity, pricing, profitability, market share, save time, productivity, etc.

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Simple Value PropositionSST Corporation

“SST is a stainless steel toothbrush company. By its one bristle brush made of high tensile stainless steel, it provides an exhilarating tooth cleaning experience to thrill-seeking X-gen consumers”

http://gizmodo.com/gadgets/gadgets/tifinity-titanium-toothbrush-like-a-metal-scouring-pad-for-your-teeth-235314.php

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Simple Value PropositionDell Computer

“Dell Computer sells personal computers to consumers. Our build-to-order manufacturing and customer-direct sales enable us to offer custom built computers at very competitive prices. Our customers get the computer that they have always imagined and save money.”

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Clothing Store

I want to supply boat owners with high quality boat names, registration numbers, and graphics by using our website.  My site is unique in the fact that it allows the end user to have a hand in the design process and by allowing the customer to preview the image before submitting the order. EVERY boat owner is a potential customer of ours due to the fact that EVERY boat MUST display its registration numbers on the bow of the boat.I want to supply boat owners with high quality boat names, registration numbers, and graphics by using our website.  My site is unique in the fact that it allows the end user to have a hand in the design process and by allowing the customer to preview the image before submitting the order. EVERY boat owner is a potential customer of ours due to the fact that EVERY boat MUST display its registration numbers on the bow of the boat.

“Help people dress better.”

Source: Marketing Experiments

10Value Proposition

Recycling Company

I want to supply boat owners with high quality boat names, registration numbers, and graphics by using our website.  My site is unique in the fact that it allows the end user to have a hand in the design process and by allowing the customer to preview the image before submitting the order. EVERY boat owner is a potential customer of ours due to the fact that EVERY boat MUST display its registration numbers on the bow of the boat.I want to supply boat owners with high quality boat names, registration numbers, and graphics by using our website.  My site is unique in the fact that it allows the end user to have a hand in the design process and by allowing the customer to preview the image before submitting the order. EVERY boat owner is a potential customer of ours due to the fact that EVERY boat MUST display its registration numbers on the bow of the boat.

“Recycling of plastics and paper.Then, producing environmental friendly products.”

Source: Marketing Experiments

11Value Proposition

Basics Body Care

“100% natural body care products company.  We sell handmade soap, lip balm, hand balm, belly balm (for pregnant moms), and spa gift baskets.  We personalize our soap labels for baby and bridal showers.”

Source: Marketing Experiments

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Boat Names

I want to supply boat owners with high quality boat names, registration numbers, and graphics by using our website.  My site is unique in the fact that it allows the end user to have a hand in the design process and by allowing the customer to preview the image before submitting the order. EVERY boat owner is a potential customer of ours due to the fact that EVERY boat MUST display its registration numbers on the bow of the boat.I want to supply boat owners with high quality boat names, registration numbers, and graphics by using our website.  My site is unique in the fact that it allows the end user to have a hand in the design process and by allowing the customer to preview the image before submitting the order. EVERY boat owner is a potential customer of ours due to the fact that EVERY boat MUST display its registration numbers on the bow of the boat.

“I want to supply boat owners with high quality boat names, registration numbers, and graphics by using our website.  My site is unique in the fact that it allows the end user to have a hand in the design process and by allowing the customer to preview the image before submitting the order. EVERY boat owner is a potential customer of ours due to the fact that EVERY boat MUST display its registration numbers on the bow of the boat.”

Source: Marketing Experiments

13Value Proposition

Value Proposition Why segmentation is important Unique Value Proposition - differentiation is

essential Home work for next week

3 alternatives value propositions So what! Why should your customer should

care?

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Is This a Real Business? Objective

Prove the viability of your venture & set the stage for writing the business plan.

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Is This a Real Business? Assignment Present Oct 15 PowerPoint 10 minutes,

max 10 slides Market Analysis Industry Analysis Product/Service Profitability

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Is This a Real Business? Assignment (cont)

Hand-in 3 ring binder MARKET – draft of the business plan section in DECK format INDUSTRY – draft of the business plan section in DECK

format PRODUCT/SERVICE – draft of the business plan section in

DECK format Profitability

Revenue Model variables Financial COMP’s Gross Margin preliminary estimate

Competitive Matrix F2F-R Step 4: Reality Test II

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What Is a DECK?

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