Business Plan Preparation Value Proposition Frank Moyes Leeds School of Business University of Colorado Boulder, Colorado 1Value Proposition

Tonight’s Agenda Topics Value Proposition Is This a Real Business Presentation In the Fire Team meetings 2 Value Proposition

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 3 Value Proposition

Product/service features Target market Benefits 4 Value Proposition

Product/Services Description of attributes Key features & environment What is unique? 5 Value Proposition

Target Customer Who uses? Consumer - demographics & psychographics Business - industry/sector, size, characteristics Who pays? 6 Value Proposition

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. 7 Value Proposition

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” -titanium-toothbrush-like-a-metal-scouring- pad-for-your-teeth php 8Value Proposition

Simple Value Proposition Dell 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.” 9Value Proposition

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. “ 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. “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 12Value Proposition

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.” Source: Marketing Experiments 13Value 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? 14 Value Proposition

Is This a Real Business? Objective Prove the viability of your venture & set the stage for writing the business plan. 15Value Proposition

Is This a Real Business? Assignment Present Oct 15 PowerPoint 10 minutes, max 10 slides Market Analysis Industry Analysis Product/Service Profitability 16 Value Proposition

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 17 Value Proposition

What Is a DECK? 18 Value Proposition