Introduction to
Value Proposition
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Fast foods like Jollibee are considered unhealthy but has significantly become part of
every Filipinos’ lives
Jollibee promises to provide high-quality food, fast and friendly service in a clean and
comfortable environment tailored to the Filipino palate.
Jollibee is enjoyable even if you only spend 50php.
Jollibee is a playground.
Jollibee is an oasis for groups on a road trip.
Jollibee is reliable since it tastes equally good at every store.
Jollibee is a safe place late at night.
Jollibee is an open bathroom when you’re desperate.
Jollibee is a great way to end a big night on the town.
It’s easy to look down your nose at their food or their nutritional information, but
Jollibee solves a lot of problems for a wide range of customers .
Jollibee isn’t focused on being the best fast food chain, Jollibee is focused on
delighting people.
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Louis Vuitton sells leather goods but more importantly, it sells status, the type of class
that money can buy.
LV does not sell itself as the most practical or functional bag. It sells an image, a
lifestyle, success and prestige and it clearly works since there are a lot of fake
products being sold.
Why do people buy fake LV? Better yet, these people aren’t LV’s target customers, so
why does LV care that they’re buying fakes? Because it diminishes the exclusivity of
the brand. The idea that the brand means something is what enables LV to charge as
much as 50,000php to 300,000php.
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Infomercials take the interesting parts of a product and blow them out of proportion.
If you’ve watched much late night television, you may have seen some excited
presenters raving about how a product will change your life. These are corny, and
they’re effective. By focusing on how each features of the product works, they create
a series of ideas about your new and improved life.
Infomercial products are not magical, and in many cases they’re not even the best
product in their category. What they do well is a combination of storytelling,
suggestion and demonstration. They talk about people like you who were unhappy
with a chore, who then tried this new product and ended up a happier, healthier
person. Then they hit you over the head with the chance to try it yourself. We can
learn a lot from infomercials without imitating them. How can we show customers
what’s missing from their lives? Can we explain how this purchase will make them a
better person?
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Delimondo started with selling canned corned beefs and has since added sausages,
sauces, pates, oils, and dips to the product line.
There’s something wonderful about Delimondo’s minimalistic packaging. Something
about the skill and mystery of the product. Something about minimalism and quality
beating overly complex, factory-made food. Can we tell the difference between fancy
corned beef and common corned beef? Most often, probably not. That doesn’t
matter. This is about the story people tell themselves while they’re at the
supermarket and how it makes me feel.
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A description of the experiences
a target user will realize upon
purchase and use of a product.
Value proposition
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It brings together customer
intelligence, competitive insight,
and product valuation.
Value proposition
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It delivers a concise,
supportable statement of
the product’s value.
Value proposition
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It quantifies how that value is
realized based on all of the target
user’s likely product experiences.
Value proposition
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The promise of value to
be delivered.
Value proposition
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The value proposition answers:
1. What product or service is your venture selling?
2. What is the end-benefit of using it?
3. Who is your target customer for this product or service?
4. What makes your offering unique and different?
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A tool which can help ensure
that a product or service is
positioned around what the
customer values and needs.
Value proposition canvas
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Elements of a Value Proposition Canvas
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The jobs that the customer feels
compelled to do and forces to
drive their decision making.
Customer jobs
The tasks customers are trying to perform and complete, the problems they are
trying to solve, or the needs they are trying to satisfy.
This is more art than science, and draws heavily from the fields of consumer
psychology and behavioral economics.
We’re not dealing with rational, robotic customers; instead this is about the weird
ways our customers make and justify their decisions.
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Job type Description Examples
• Practical things that need to get done • Going to work
• Customers try to perform or complete • Eating nutritious food
Functional
a specific task or solve a specific • Fixing a broken window
problem • Booking a table at a restaurant
• Being a good partner
• The role a customer plays in a social
• Looking professional and
group
Social successful
• Describes how a customer wants to
• Fitting in with your social
be perceived by others
circles
• The way a customer wants to feel in • Being competent in your career
life • The need to treat yourself
Emotional • Customers seeking a specific feeling • Avoiding anxiety
such as feeling good or feeling • The desire to experience joy
secure. • The feeling of success
It’s important to remember that not all jobs are equal in their weighting.
We want to build a shortlist, then find the most compelling jobs that will be
prioritized.
We’d like to think that all of our decisions are functional – that we buy things that are
practical, economical and high quality.
The reality is, we don’t focus on the functional, we focus on how the functional
benefits make us feel.
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Case study:
• Contact a taxi service
• Control cost for ride
• Wait for the car at an unknown amount of time
• Pay for the trip
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Case study:
• Pay for subscription
• Search for a song to play
• Be connected to others
• Create a playlist
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The negative outcomes and
states of being customers
hope to avoid.
Customer pains
Anything that annoys your customers before, during, and after getting a job done.
This could be undesired costs and situations, negative emotions, or risks.
Identify blockages and problems your customer may face trying to get the jobs done.
Pains can be:
• Functional: a solution doesn’t work)
• Social: I’ll look bad doing this
• Emotional: I feel bad every time I do this
• Ancillary: It’s annoying to go to the store for this
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Case study:
• Low cab availability
• Need to book a cab in advance
• Bad drivers happen
• Issues with payment for the taxi service (cash or card)
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Case study:
• Too much ads (if not subscribed)
• Songs are unavailable
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The positive outcomes
and states of being our
customers crave.
Customer gains
The outcomes and benefits your customers require, expect, desire or would be
surprised by.
This includes functional utility, social gains, positive emotions, and cost savings.
Describe positive outcomes the customer expects when the job is getting done
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Gain types Description
Required • Without which a solution wouldn’t work
Expected • Expected from a solution, even if it could work without them
• Goes beyond what we expect from a solution but would love
Desired to have if we could.
• Usually from customers if you asked them
• Goes beyond customer expectations and desires.
Unexpected
• Wouldn’t even come up with them if you asked them.
Example:
• Required: The most basic expectation that we have of a smartphone is that we
can make a call with it.
• Expected: Since Apple launched the iPhone, we expect phones to be well
designed and look good.
• Desired: We desire smartphones to be seamlessly integrated with our other
devices.
• Unexpected: Before Apple brought touch screens and the app store to the
mainstream, nobody really expected them to be part of a phone.
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Case study:
• Track your cab
• One-click order/cancellation
• Zero time on payment
• Trusted driver
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Case study:
• Music suggestions
• Listen to music with others
• Explore new genres and songs
• High quality music
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A list of all the products and
services a value proposition
is built around.
Products and services
It represents a bundle of products and services that help your customers get either a
functional, social, or emotional job done, or helps them satisfy basic needs.
This list includes:
• Supporting products and services that help your customers perform the roles of
the buyer: services that help customers compare offers, decide and buy
• Co-creator: services that help customers co-design solutions
• Transferrer: services that help customers dispose of a product
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Types Description
Physical/ tangible • Goods, such as manufactured products
• Products, like copyrights, or services, such as after sales
Intangible
assistance
• Products, like music downloads, or services like online
Digital
recommendations.
• Products like investment funds or services like the
Financial
financing of a purchase.
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Case study:
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Case study:
• Website and mobile platforms
• Legal and quality music streaming
• Multiple subscription options
• Customer service
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An outline on how to eliminate or
reduce some of the customer pains
that annoys them before, while, and
after they are trying to get a job done.
Pain relivers
How your products and services alleviate specific customer pains.
Typically, great value propositions alleviate only a limited number of severe customer
pains but do that very well.
Make sure you focus on pains you have identified in the customer profile.
Describe how your products and services can minimize or reduce the mentioned
pains
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Case study:
• Flawless automatic payment
• Driver ratings
• 24/ 7/ 365 availability of cabs
• Arrival/ travel time prediction
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Case study:
• Multiple subscription options
• Offers unlimited skips
• Social media incorporated for easier sharing
• More songs added everyday
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An outline how to create benefits
that the customer expects, desires
or would be surprised.
Gain creators
How your products and services create customer gains.
They explicitly outline how you intend to create benefits that your customer expects,
desires or would be surprised by, including functional utility, social gains, positive
emotions, and cost savings. Outline in which way your products and services create
gains
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Case study:
• Navigate your trip on the map
• Ability to manage all trip details on a single platform
• Rating System
• Automatic credit card payment
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Case study:
• Easy layout and sharing options
• Compatible with all devices and operating systems
• Over 20 million songs and more
• Allows users to listen to music instantly
• Sleep timer
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