The aim of the customer value proposition analysis is to trace all the values and offers that a firm wishes to offer to the customer and how it will give them a competitive edge over the others in the same segment. It is a useful tool as it informs the management team about the profitability of a certain product in the current market and eventually aids in a host of important managerial decisions like fixing the product price or constructing a product portfolio.

Sample Customer value proposition Analysis

Name of the Company: Lake Cosmetics.

Analysis conducted by: Richard Robson.

Purpose: To study the target group of people for whom the products will be made, their requirements that they want in the products and possible market competitors in the same segment of purchase.

Products Analyzed: The products to be surveyed are the ones that will be launched this winter. It includes the new winter cool soap and the exciting new fragrances offered through the new range of deodorants. The products will be launched next month and are aimed at the customers looking for cool refreshing cosmetic products during the winter months at a medium range of price.

Market Review: The products should be well accepted in the market, especially with the new deodorant collection being an instant hit with the youngsters. There are no such brands at all in this sector that are making these products and must therefore generate a buzz and become a profitable business for the company this winter.

Value proposition Analysis:

Product

Values

Pricing

Competitor

Deodorants (male)


Refreshing smell, 24 hours freshness

Average

None

Cool soap (male)

Cool soap

Low

Ream Men’s Soap

Deodorants (Female)

Refreshing smell, 24 hours freshness

Moderate

None

Inference: The products can thus be considered and can be launched with ease in to the mass market to generate profits.


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