Business Plan Preparation Frank Moyes Leeds School of
Business Plan Preparation Frank Moyes Leeds School of Business University of Colorado Boulder, Colorado Value Proposition and Business Analysis 1
Tonight’s Agenda n Topics n n n Value Proposition Business Analysis Customer Research One Button Business Plan n In the Fire - Opportunity/Need n Write Value Proposition n Value Proposition and Business Analysis 2
Next Week n n Topics n n PRODUCT/SERVICE DESCRIPTION Margins Elevator Speech Making slide presentations n n 3 Alternative Value Propositions Customer survey questionnaire n n Preliminary Market analysis Preliminary Interview results Assignment: read BP pp 6 -7 Hand-in: Activity: In the Fire Value Proposition and Business Analysis 3
Value Proposition Product/service features n Target market n Benefits n Value Proposition and Business Analysis 4
Product/Service Features Description of attributes & environment n What is unique? n How produce & deliver? n Value Proposition and Business Analysis 5
Target Market Targeted entry point based on segmentation n Demographics & psychographics n n n Must understand how make buying decisions Business sector, size, characteristics Value Proposition and Business Analysis 6
Benefits n n Emotional: ambition, power, independence, achievement, ambition, pride of ownership, comfort, love, friendship, security, style, self improvement, etc. Social: status, image, popularity with friends or family members, reputation of brand, personal relationships, style, fashionable, etc. Health: stress, fitness, mental capacity, strength, sex life, quality of life, muse, etc. Financial: revenue, costs, savings, productivity, pricing, profitability, market share, save time, productivity, etc. Value Proposition and Business Analysis 7
Simple Value Proposition SST Corporation “SST is a stainless steel toothbrush company. By its one bristle brush made of high tensile stainless steel, it provides an exhilarating tooth cleaning experience to thrill-seeking X-gen consumers” http: //gizmodo. com/gadgets/tifinity -titanium-toothbrush-like-a-metal-scouringpad-for-your-teeth-235314. php Value Proposition and Business Analysis 8
Simple Value Proposition Pete’s Coffee “Pete’s Coffee is a Denver based coffee house. Its gourmet coffee, convenient and fast service provide a welcoming environment for people who want to meet with their friends and a stimulating morning coffee for the on-the-go business person. Value Proposition and Business Analysis 9
Value Proposition Why segmentation is important n Differentiation is essential n Home work for next week n n n 3 alternatives value propositions So what! Why should your customer should care? Value Proposition and Business Analysis 10
Market Segmentation n n n Groups of customers – (demographics & psychographics) baby boomers, grandparents Products – features, benefits, prices Benefits – enhance image, trend setter, weather protection, save money Geography – see Hecho en Casa business plan Distribution channels Sector – industrial (see MRT business plan), consumer, government Value Proposition and Business Analysis 11
Business Analysis Assignment Present Oct 10 Power. Point 10 minutes, 68 slides n Market Analysis n Industry Analysis n Product/Service Description n Profitability n Value Proposition and Business Analysis 12
Business Analysis Assignment (cont) n Hand-in 3 ring binder n n n n Market Analysis - draft Industry Analysis - draft Product/Service Description - draft Value Chain analysis Competitive matrix Financial COMP’s Revenue Model 20 interview Call Reports Value Proposition and Business Analysis 13
Customer Research Qualitative – see handout n Quantitative – do later n Value Proposition and Business Analysis 14
Next Week n n Topics n n PRODUCT/SERVICE DESCRIPTION Margins Elevator Speech Making slide presentations n n 3 Alternative Value Propositions Customer survey questionnaire n n Preliminary Market analysis Preliminary Interview results Assignment: read BP pp 6 -7 Hand-in: Activity: In the Fire Value Proposition and Business Analysis 15
Differentiation Road Map Delivery Warranty Installation Time of sale Service After sales Special terms Usergroups Design help Example: Morton Salt Brand Trademark Bundling Communications Augmented Attributes Tangible Attributes Core Needs What’s it for? What’s it do? Value Proposition and Business Analysis Features Packaging Quality Color Size Style Options Timeliness Customize 16
- Slides: 16