Value Propositions, Part II

January 14, 2016Image source: grist.org

Agenda1. Value propositions – mini-case application2. Case methodology3. Professional development: Unique contribution

Customer

CompetitionYou

Value Proposition

Value proposition (“value wedge”)

Value parity

Finding Your Value PropositionWhat jobs can you help the customer do?What pains can you help the customer avoid?What gains can you provide to the customer?

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Mini-case: Help A Child Reach 5

In-class Activity:1. Who are the customers?

• Hint: likely more than one group/segment of customers

2. Based on the case information provided, what is Lifebuoy’s value proposition to each of the customer segments?

• Remember: a strong value proposition is important to the customer and different from the competitors’ value proposition

• What job(s) does the customer have?• What pains can the brand relieve?• What gains can the brand create?

Case Method → IARA. Define the issueB. Analyze the dataC. Generate alternativesD. Select decision criteriaE. Assess alternativesF. Select preferred alternativeG. Develop an action and

implementation plan

Issue(s)

Analysis

Recommendation

Defining the IssuesImmediate issue: the specific decision, problem, challenge, or

opportunity faced by the decision maker in the case – this is what your decision or recommendation will solve

Basic issues: larger and deeper topics at the heart of a problem or opportunity – your analysis needs to give you a better grasp of what underlies the immediate issue

Analyzing the Case Data

• Must be pursued from course AND decision-making contexts• Choose theories, concepts, tools, frameworks to apply

• Consider:• Causes and effects• Constraints and opportunities• Quantitative and qualitative analysis

Analyzing the Case Data Cont’d• Generate alternatives that will address the basic issue(s) and

solve the immediate issue• Can go beyond the options presented in the case, if any• Status quo can almost always be considered an alternative

Analyzing the Case Data cont’d

Select decision criteria, guided by case details

Examples of Quantitative Criteria Examples of Qualitative CriteriaProfit Cash flow Competitive advantage FlexibilityCost Inventory turn Customer satisfaction SafetyReturn on investment Productivity Employee morale Visual appealMarket share Staff turnover Corporate image ObsolescenceCapacity Quality Ease of implementation Cultural sensitivityDelivery time Growth rate Synergy MotivationRisk Quantity Ethics Goodwill

Recommendation• Ensure you address both the immediate and the basic issues

• Action & implementation: Refer back to analysis and focus attention on specifying actions necessary to produce advantages (pros) and avoid or minimize disadvantages (cons) from your analysis• Who, what, when, where, how

Reminders & Info

You will meet your Business Model Project team next class

Lululemon Case Memo 1 due by 6 pm on Jan 25 to Connect

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