Business Plan Preparation Frank Moyes Leeds School of Business University of Colorado Boulder, Colorado 1 Value Proposition and Business Analysis
Tonight’s Agenda Topics Value Proposition Business Analysis University Parent Business Plan with founder Sarah Schupp In the Fire - Opportunity/Need Team meetings 2 Value Proposition and Business Analysis
Next Week Topics PRODUCT/SERVICE DESCRIPTION Margins OneButton Business Plan with founder Matt Emmi Assignment: read BP pp 6-7 Hand-in: 3 Alternative Value Propositions Customer survey questionnaire Activity: In the Fire Market analysis Interview results 3 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 4 Value Proposition and Business Analysis
Value Proposition Product/service features Target market Benefits 5 Value Proposition and Business Analysis
Product/Service Features Description of attributes & environment What is unique? How produce & deliver? 6 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 7 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. 8 Value Proposition and Business Analysis
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” 9 -titanium-toothbrush-like-a-metal-scouring- pad-for-your-teeth 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. 10Value Proposition and Business Analysis
Value Proposition Why segmentation is important Differentiation is essential Home work for next week 3 alternatives value propositions So what! Why should your customer should care? 11 Value Proposition and Business Analysis
12 Business Analysis Assignment Present Mar 5 PowerPoint 10 minutes, 6- 8 slides Market Analysis Industry Analysis Product/Service Description Profitability Value Proposition and Business Analysis
13 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
Differentiation Road Map Core Needs Tangible Attributes Augmented Attributes Communications What’s it for? What’s it do? Delivery Warranty Installation Time of sale Service After sales Special terms Usergroups Design help Features Packaging Quality Color Size Style Options Timeliness Customize Brand Trademark Bundling Example: Morton Salt 14Value Proposition and Business Analysis