When writing a business plan, many entrepreneurs get confused about value propositions and positioning statements. In this blog post, we will tell you just how to write a value proposition.
Please refer to the following links for instructions on how to write a positioning statement and the difference between a value proposition and positioning statement.
What is a Value Proposition?
Let’s start by making sure we all understand what a value proposition really is. A value proposition is focused directly on your target market. It tells them exactly what your product or service is and why they should purchase it. Value propositions reflect your brand promise along with all the primary benefits offered and value received. This helps differentiate yourself from your competition while spreading word-of-mouth.
How to Write a Value Proposition?
Now that you know what a value proposition is, let’s look at a few ways to write a value proposition. Any strong value proposition contains the following key elements:
- The target customer
- The statement of need
- The frame of reference or product category
- The key benefit
- The major competitor(s)
- The key differentiator(s)
- The price
Now that you have they key elements to your value proposition, try plugging them into the following template:
For (target customer) who (statement of need), our (product/service name) is (frame of reference of product category) that (key benefit) because unlike (major competitor) our (product/service name) offers (key differentiator) at a price (less than, equal to or higher than competitor).