What is a value proposition?
A value proposition is a core positioning statement that summarizes the unique benefits our company, product, or service delivers to a target customer.
How do we construct a value proposition?
To construct a value proposition, the following questions should be answered. After these questions are answered in clear, simplified, and honest terms, cleverly wordsmith the content together in a compelling statement.
- What is the product/service?
- Who is the target audience?
- What value is provided?
- Why are they unique?
How do we know if we drafted a solid value proposition?
To test the contents of a value proposition, the following boxes should be checked.
- Does that value prop statement sound cool?
- Does that really make them sound unique?
- Do people understand it?
Use Case: Mom's Best Lemonade
Let's work through this process using the beverage business featured in our book, Jimmy's Lemonade Stand - A Child's Guide To Marketing:
What is the product or service?
Who is the target audience?
Working parents of thirsty, active, kids.
What value is provided?
Mom's Best Lemonade provides a healthy and convenient alternative to artificial soda and pricey sports drinks.
What makes it unique?
Mom's Best Lemonade is freshly squeezed, all-natural, and low in sugar. It's an exclusive recipe made by moms for moms that includes a dash of motherly love.
Value Proposition Statement
Mom's Best Lemonade provides busy parents with a fresh, all-natural, refreshment for kids-on-the-go. Made with a dash of motherly love, the exclusive recipe provides parents a healthy alternative to artificial soda and pricey sports drinks.
Testing the Value Proposition Statement
Does that value prop statement sound cool?
Your mom may not be super cool, but kids-on-the-go sure are.
Does that really make them sound unique?
Of course. "A dash of motherly love". Who else has that?
Do people understand it?
It's simple. It's fresh. It's honest.