Business Plan Preparation Frank Moyes Leeds School of Business University of Colorado Boulder, Colorado Value Proposition and Business Analysis

Value Proposition and Business Analysis Tonight’s Agenda Topics Value Proposition Business Analysis Locomotion Business Plan In the Fire - Opportunity/Need Write Value Proposition Team meetings Value Proposition and Business Analysis

Value Proposition and Business Analysis Next Week Topics PRODUCT/SERVICE DESCRIPTION Margins Aaron Kennedy – founder of Noodles Assignment: read BP pp 6-7 Hand-in: 3 Alternative Value Propositions Customer survey questionnaire Activity: In the Fire Market analysis Interview results Value Proposition and Business Analysis

Value Proposition and Business Analysis Product/service features Target market Benefits Value Proposition and Business Analysis

Product/Service Features Description of attributes & environment What is unique? How produce & deliver? Don’t assume people know or understand your product/service Description Specifications Drawings Photographs Rendering Other Product Issues Customer support Warranty Repair service Training Technical Support Value Proposition and Business Analysis

Value Proposition and Business Analysis Target Market Targeted entry point based on segmentation Demographics & psychographics Must understand how make buying decisions Business sector, size, characteristics Value Proposition and Business Analysis

Value Proposition and Business Analysis 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. Value Proposition and Business Analysis

Simple Value Proposition SST Corporation Simple Value Proposition SST 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 Value Proposition and Business Analysis

Simple Value Proposition Pete’s Coffee “Pete’s Coffee is a Denver based coffee house. Its gourmet coffee, convenient and fast service provide a welcoming environment for people who want to meet with their friends and a stimulating morning coffee for the on-the-go business person. Value Proposition and Business Analysis

Value Proposition and Business Analysis Why segmentation is important Differentiation is essential Home work for next week 3 alternatives value propositions So what! Why should your customer should care? Value Proposition and Business Analysis

Value Proposition and Business Analysis Market Segmentation Groups of customers – (demographics & psychographics) baby boomers, grandparents Products – features, benefits, prices Benefits – enhance image, trend setter, weather protection, save money Geography – see Hecho en Casa business plan Distribution channels Sector – industrial (see MRT business plan), consumer, government Value Proposition and Business Analysis

Business Analysis Assignment Present Nov 1PowerPoint 10 minutes, 6-8 slides Market Analysis Industry Analysis Product/Service Description Profitability Value Proposition and Business Analysis

Business Analysis Assignment (cont) Hand-in 3 ring binder Market Analysis - draft Industry Analysis - draft Product/Service Description - draft Value Chain analysis Competitive matrix Financial COMP’s Revenue Model 20 interview Call Reports Value Proposition and Business Analysis

Value Proposition and Business Analysis Next Week Topics PRODUCT/SERVICE DESCRIPTION Margins Aaron Kennedy – founder of Noodles Assignment: read BP pp 6-7 Hand-in: 3 Alternative Value Propositions Customer survey questionnaire Activity: In the Fire Market analysis Interview results Value Proposition and Business Analysis

Differentiation Road Map Brand Trademark Bundling Delivery Warranty Installation Time of sale Service After sales Special terms Usergroups Design help Communications Augmented Attributes Features Packaging Quality Color Size Style Options Timeliness Customize Tangible Attributes Core Needs What’s it for? What’s it do? Example: Morton Salt Value Proposition and Business Analysis