Value Proposition Exercise Interdisciplinary Product 1 - - PowerPoint PPT Presentation

Innovation Center

Interdisciplinary Product Development

Caterpillar

Value Proposition

1

Value Proposition Exercise

Innovation Center

Interdisciplinary Product Development

Caterpillar

Value Proposition

2

What is a Value Proposition? Id Ident ntifi fies

ta target et marke ket

• pportun

unity

Ex Explains s

co cost st an and d be benefi fits ho how that combination is sup uperior to other choices

A A va value proposition n is NOT

a a mi mission

• n s

sta tatemen tement an an el elev evator tor pi pitch ch

= = A A unique se selling prop

• posi
• sition
• n;

a a sa sales s pi pitch

Innovation Center

Interdisciplinary Product Development

Caterpillar

Value Proposition

3

Creating your Value Proposition

Fo For: r: List target customers or beneficiaries. Group them and ultimately define THE customer or beneficiary. Wh Who: : Define the need or opportunity. What is critical issue? The The: Name your product, service or concept. Place the product, service, or concept into a generally understood category. Tha That: : Quantify the benefits of the product, service, or concept. Identify the single most compelling benefit. Unlike ke: List the competitors and competitive alternatives – Our ur: Differentiate the product, service, or concept. Set it apart from the competition.

Asserts the VALUE

• f the offering

POSITIONS the value

Innovation Center

Interdisciplinary Product Development

Caterpillar

Value Proposition

4

Example: IDE India

Fo For: r: Small scale rural farmers using surface irrigation Wh Who: : lose over 50% of usable water to surface runoff annually Th The: IDE-India low-cost drip irrigation system is an advanced irrigation device Th That: : inexpensively and completely eliminates water loss from surface irrigation Un Unlike: currently used, expensive and large-scale drip systems Ou Our: product is a customized, modular and scalable system that consistently reduces water loss and increases farmers’ yields Fo For: r: List target customers or beneficiaries. Group them and ultimately define THE customer or beneficiary. Wh Who: : Define the need or opportunity. What is critical issue? Th The: Name your product, service or concept. Place the product, service, or concept into a generally understood category. Th That: : Quantify the benefits of the product, service, or concept. Identify the single most compelling benefit. Un Unlike: List the competitors and competitive alternatives – Ou Our: Differentiate the product, service, or concept. Set it apart from the competition.

Innovation Center

Interdisciplinary Product Development

Caterpillar

Value Proposition

5

IPD Example

Fo For: r: Wh Who: : lose over 50% of usable water to surface runoff annually Th The: IDE-India low-cost drip irrigation system is an advanced irrigation device Th That: : inexpensively and completely eliminates water loss from surface irrigation Un Unlike: currently used, expensive and large-scale drip systems Ou Our: product is a customized, modular and scalable system that consistently reduces water loss and increases farmers’ yields Fo For: r: List target customers or beneficiaries. Group them and ultimately define THE customer or beneficiary. Wh Who: : Define the need or opportunity. What is critical issue? Th The: Name your product, service or concept. Place the product, service, or concept into a generally understood category. Th That: : Quantify the benefits of the product, service, or concept. Identify the single most compelling benefit. Un Unlike: List the competitors and competitive alternatives – Ou Our: Differentiate the product, service, or concept. Set it apart from the competition.

Innovation Center

Interdisciplinary Product Development

Caterpillar

Value Proposition

6

So, What Is Marketing? Pulling It All Together

Innovation Center

Interdisciplinary Product Development

Caterpillar

Value Proposition

7

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