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.

  1. What is the product/service?  
  2. Who is the target audience?  
  3. What value is provided?  
  4. 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:

Jimmy's Lemonade Stand - A Child's Guide To Marketing

Jimmy's Lemonade Stand - A Child's Guide To Marketing

What is the product or service?

Lemonade.  

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.

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