Starbucks, Tide – what do your customers want?

In the series about value proposition development, let’s review the exercise.

A value proposition statement is intended to communicate what you offer, to whom, why, how you are different, and what the consumer values in your offering, more than the competition.

For                   (target customer)

Who                (statement of the need or opportunity)

Our Product    (product/service category)

That                 (statement of benefit)

Unlike              (primary competitive alternative)

Our product     (statement of primary differentiation)

In my last post, I talked about the customer. Let’s take a look at the next portion of the development of the value proposition statement, “statement of the need or opportunity.”

Have you deeply considered what you customer base “needs?” Have you done a proper market analysis regarding “opportunity?” That is to say, what may be missing in today’s market place as it relates to the products and/or services you offer? Can your company innovate and offer something entirely different, or unexpected? I am reminded of Starbucks using the Salesforce.com marketing platform to ask customers to bring ideas to them. One customer suggested that it might be a good idea to place a stir stick in the opening of the lid to keep the coffee warm, while using it as a stir stick. Starbucks incorporated the idea and created a small innovation based on what customers told them. How about other “innovations” we see in every day products? What about Cold Water Tide? Consumers told Tide, and P&G knows from studies they have done, that one of the most expensive propositions and energy uses in doing laundry, is the heating of water for hot or warm washes. They responded by offering a laundry detergent that works effectively in cold water.

May I suggest that by asking customers what they want, what they may be willing to pay for what they want, and doing some competitive intelligence and analysis, you can get a better grasp on what you can offer? Make sure that you know that what you offer will be truly differentiated and highly leveragable; and by doing this, you can justify your price and your brand’s value.

What is your company doing to innovate and differentiate?

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