How to Write a Winning Business Plan: A Step-by-Step Guide for Startup Entrepreneurs to Build a Solid Foundation, Attract Investors and Achieve Success ... Business Plan (Entrepreneurship Book 3) by Walter Grant

Author:Walter Grant [Grant, Walter]
Language: eng
Format: epub
Published: 2020-09-15T00:00:00+00:00

If the product is well-designed, correlations and insights and other statistics can be drawn from the information that will point to the level of aggressiveness of the driver, proficiency in controlling a vehicle, and the probability of the car being driven during crash peak periods. All this information combined yields a more accurate risk assessment profile that can then be used for differentiated pricing. In designing such a product, information architecture should take into account the user’s end goal and needs. The customer user experience should also be optimized by simplifying workflow, which is the steps that one needs to take to accomplish a goal. Great product design can ensure that the customer user experience is great and will result in the product ranking high among competitors.

Brand/Status. This value proposition positions the product as a more superior product compared to what is available on the market. The success of this value proposition hinges on understanding what customers value in a product and then pointing this out. If the product is easily replicable, this value proposition can only yield benefits to the business for a short while, unless it is combined with other not-so-easy-to-replicate attributes. Design highly complements this value proposition and helps position the product. A good example is how a good design helps highlight the value of the Apple MacBook when compared to other personal computers. Innovative design enables the Apple brand to sell for more than six times the cost of other personal computers.

Price. Price-sensitive customers respond very well to a value proposition that offers the same level of functionality as competing brands for a lower price. However, for this proposition to pan out and create value for both the customers and the business, the manufacturing and distribution process should be stripped and made lean. The goal will be to create efficient processes to make cost savings that will be passed on to the consumer. If your prices are the lowest on the market, the value proposition is clear and is something that customers can resonate with and get tangible benefits from. However, defending this value proposition may be difficult. Any company can decide to undercut your businesses and sell at a lower price and make losses in a bid to squeeze you out of business.

In addition, price is used to complement other value propositions chosen by a business. For example, the value that a product has cannot, in the customers’ mind, be separated from the price that is charged. Where the customers’ value proposition is premium branding, customers will also expect relatively higher prices to be charged. If the company’s value proposition is cost leadership, then this should be visible to the customer in lower product prices for the same functionality.

Risk reduction. Insurance is a good example of a product whose main value proposition is risk mitigation. Insurance clients are willing to pay money to transfer the financial implications of events that may or may not occur in the future. In general business, your customers are also

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