Value Proposition, content & structure

Expro 100 Engineering

The Hague November 2013

Martin BitterExportant

What is the value of:

A piece of Nylon rope,

A musketon klem

A piece of chain

Convincing by USP• Unique Selling Points• The more unique characteristics, the more chance

• a strategic advantage, on basis ofQualitySales priceDeliveryReliabilityCombination…

• The more specialised, the more USP’s• Helps focus & manage internal organisation• Helps determine export strategy

Characteristics of USP• a short sentence

• a clear, understandable statement

• it is believable and realistic

• it is composed of one benefit (or a combination of benefits) that is/are unique to your company or product

User Benefits• Translate the USP’s in Value for Customer

• What is Value for Customer of:Low priceFast deliveryWorld wide guarantee and serviceHigh quality

• What could be User Benefit of a deep well pump? A central heating waterpump?

Exercise: User Benefits on basis of:• Economical, energy-efficient pumps for 4in. inside

diameter or larger wells. • Pump from depths of 400'. • Patented “Floating Stack"" design resists sand and

reduces sand locking. • Stainless steel pump and motor housing for long life. • Heavy-duty 1 1/4in. NPT discharge connection. • Water-filled submersible motor. • Precision-molded impellers and diffusers. 230 Volts. • Includes built-in check valve. UL approved. 3-year limited

warranty.

User Benefits• Translate the USP’s in Value for Customer

• What is Value for Customer of:Low priceFast deliveryWorld wide guarantee and service High quality

• What should be User Benefit of a deep well pump? A central heating waterpump?

• it is composed of one benefit (or a combination of benefits) that is/are unique to your company or product

Value proposition?Summarizes the customer segment, competitor targets and core differentiation of one’s products from the offerings of the competitors

Value proposition?Why should I buy this product or service?Why should I do anything at all?

Is a clear and specific statement about the tangible benefits

Successful Customer Value Prop.Building blocks:• Benefits in a contextHow do benefits compare to next best alternative• Value elements

Points of parity, elements essentially same as nbaPoints of difference, elements that make the offer inferior or superiorPoints of contention, supplier and customer disagree how performance compares to nba

Writing a value propositionFirst sentence:For (target customer)who (statement of the need or opportunity)the (product/service name) is a (product/service category)that (statement of benefit)

Asserts the value of theoffering

Writing a value propositionFirst sentence:For glass greenhouse growers of bromelia’s and palms who perform in house crossing and breeding the Verdi software system is a crossing management tool that results in an uniform procedure for the entire breeding department and an increase in capacity per breeder of min 20%

Asserts the value of theoffering

Writing a value propositionSecond sentence:Unlike (primary competitive alternative)Our product (statement of primary differentiation)

Asserts the positioning of the value

Writing a value propositionSecond sentence:Unlike manual breeding logbook keeping our Verdi management system allows for faster and better overview of all possible crossings, secures your knowledge assets and allows for “on the floor” decision making

Asserts the positioning of the value

Definition of termsvalue:Worth in usefulness or imortance to the possessor; utility or merit

Proposition“the act of offering” or “that which is offered or proposed”

Value identification

essence:A thorough needs analysis with the value proposition targets (employees, partners, customers)

Value descriptions

Qualitative , quantitiveFocus : functional, financial or emotional (ROI, TCO, status, looking better) or “willingness to pay” (quantitive)

You need to understand the target’s language, become part of the group and on “the inside”

Determining contentInternal analysisA: look at value chain (internal logistics>operations>external logistics>sales&marketing>service), how do you create value?B: Core competencies? Differentiation from competition?C: What capabilities enable your value promise?D: Why should value targets accept this particular offer (safer, better pay, more convenient, lower risk?)

Determining contentExternal analysis

A: How do your value targets quantify (measure) the delivered value?

B: How to link your value proposition to needs of target?

C: How to compare and differentiate your value from competitor

D: How to substantiate your ability to deliver (track record, references)

E: How to increase return/decrease risk in delivering higher levels of value?

Types of value proposition

So….It is about CUSTOMER ValueShow Customer Value in advance: be creative!Research and document Customer Value

Dynamic Rubber Pvt Ltd. case: Group exercise

Read Corporate Profile Dynamic Rubber Ltd.Read Fancord product overview

For Fancord Poly-V belt:• List 5 USP’s• List 5 User Benefits• Make Value Proposition

CORPORATE PROFILE Dynamic Rubber Industries (P) Ltd.,DRIL was established in 1972 in India with an objective to manufacture and market Vee and Fan Belts under the brand name "FANCORD". Today DRIL is a specialist in Automotive Timing Belts, Poly VBelts (Multi ribbed V Belts) and Raw Edge V Belts in Cogged, Plain and Laminated constructions. DRIL is ISO 9001 2002, ISO/TS 16949 2002, ISO 14001 2004 certified company. DRIL is in the process of integrating OHSAS 18001 with ISO 14001. DRIL has several OEM customers in India and won the best performance awards and certificates from certain OEMs. DRIL's 'FANCORD' drive belts conform to International standards such as IS/BS/DIN/SAE/JASO etc besides OEM standards.DRIL exports the Timing Belts, Poly V Belts and Raw Edge Belts to various countries to mention a few: Australia, Hong Kong, U.S. U.K., Turkey, Algeria, Mauritania, Bolivia etc.DRIL is the first Indian Manufacturer to produce Profile Ground Poly V Belts.DRIL is the first Indian Manufacturer to successfully develop and introduce into the market FANCORD Synchro Drive Timing Belts for a wide range of passenger cars.DRIL is the first Indian company to introduce drive belts in high performance, non conventional environment friendly materials.

FANCORD AUTOMOTIVE POLY-V BELTS PRODUCT OVERVIEW      FANCORD POLY-V BELT is the solution to the drive design problem faced by todays' automobile engineers. With the ever increasing demands in vehicle engine design, the O.E. automotive engineer is expected to achieve higher efficiency, reliability, compactness and longer life of the automotive drive FANCORD POLY-V BELT with its multiple advantages offers the right choice to the automotive engineer.

HIGHER DRIVE EFFICIENCY The multiple V-rib design of FANCORD POLY-V BELT provide more contact area than conventional V-belts. This in combination with the excellent flexibility of the Poly-V belt reduces transmission losses, towers heat build-up resulting in higher overall efficiency of the drive.  COMPACT DRIVE LAYOUT The greater tensile and contact area of FANCORD POLY-V BELT increases the power transmission capacity enabling O.E. automotive engineers to replace multi V-belt accessory drives with a single FANCORD POLY-V BELT. Moreover the back face of the belt is also used to drive an accessory. This unique feature enables FANCORD POLY-V BELT to be used in compact serpentine drives. The higher flexibility of FANCORD POLY-V BELT permits the use of smaller lighter pulleys ensuring optimum utilisation of space and weight. HIGH RELIABILITY AND LONG LIFE  The use of high strength polyester cord, stringent quality control methods and choice of high quality raw materials, ensure high in-service reliability and longer service life of FANCORD POLY-V BELT in the high under bonnet temperatures of modern engines Polychloroprene impregnated fabric High tensile polyester cord. Polychloroprene cushion Fibre loaded polychloroprene ribs   FANCORD POLY-V BELTS are available for all vehicles manufactured in India and a few imported vehicles

Exercise

Now YOUR Company!!

Look at the presentation in your company brochure

Draft a value proposition directed at a German prospective client