Value Proposition Canvas

Aligning your product and service

design to your customers’needs
18 Maret 2019
This first four items are the items we need to
discuss further in relation to Value Proposition
1. Target market is not well defined
2. Type of relationship to build is not well
described
3. How to engage with prospect is not well
planned
4. The differentiation and competitiveness are
not well defined and are not well formulated
5. The business operations are not well designed
6. Key resources are not well identified
7. Partners we should work with are not truly
linked
8. How we do the pricing is not well calculated
9. Ways we could earn money are not well
simulated
 Here’s how we put it all in one page
canvases available for us – ready to use
Customer Segment Reflect on your own Business :
Who are you creating value for?
The first step is to find out what type of customers your organization is targeting. Below
are the 5 types of customer segments.

Select which one(s) apply to your organization and reflect how.

1. Mass Market : One large group of customers with broadly similar needs and problems.
An example would be customers who need shoes.
2. Niche Market : One group of customers with specific needs and problems. An
example would be customers who need children's shoes.
3. Segmented : Multiple groups of customers with slightly different needs and problems.
An example would be college students attending a university.
4. Diversified : Multiple unrelated groups of customer segments with very different needs
and problems. An example of this use would be Amazon utilizing online shoppers with
Amazon.com and web developers with selling cloud computing services.
5. Multi-Sided Platform : Multiple independent groups of customer segments that may
have different needs and problems, but the business model requires both. An example
would be a credit card company that needs credit card holders and merchants who
accept those credit cards.
Value Proposition Reflect on your own Business :
What value do we deliver to the customer?
Once you know who you are providing to, then you can appeal to them with a value
proposition. This part goes further than just stating your product/service, by expressing
why your product/service is valuable. Below are 11elements that contribute to customer
value creation. Select which one(s) pertain to your value proposition and reflect how:

1. Newness : Fulfills an entirely new set of needs that customers previously didn't
perceive because there was no similar value proposition.
2. Performance : Improves product or service performance.
3. Customization : Tailored to the specific needs of individual customers.
4. Getting the job done : Helps customers get a certain job done.
5. Design : Stands out because of superior design.
6. Brand/Status : Stands our because of the popularity or respect of a brand/status.
7. Price : Offers a similar value but at a lower price.
8. Cost Reduction : Helps customers reduce their own personal costs they would take on
without the product/service.
9. Risk Reduction : Offer customers a chance to reduce their own risks. (Ex 1yrguarantee)
10. Accessibility : Provides to customers that previously lacked access to product/service.
11. Convenience/Usability : Provides an easier way to use a vital product/service.
So Value Proposition is basically …
• a phrase
• a statement
• a brand promise
• an offer of solution
• a warranty of fulfillment
• a simple description of what a brand can do
• a brief answer to what the company’s target
market is looking for
What is a ‘Great Value Proposition’ ?
Why Value Proposition matters ?
• Aligning your products and or service
design to what your customers need
(and want) –ALIGNMENT
• Increase potential to attract and lure
customers to choose your offers, as
tool to win the competition in the
market – COMPETITIVENESS
• Provide direct and immediate value-
to-price proposition to the targeted
segments of customers –VALUE
 Value Proposition Buy-In Process
Initial Talks, where prospects are shown and being communicated
about the offered products and service – Existence Awareness

Value Proposition Buy-In Process, where ‘seller’ propose value

of products and services to ‘buyer’ through chain of process of
Alignment – Win The Competititon – Optimizing Value to Price

Transaction, where prospects agree to do products and services

acquisition based on perceived values – Value Acquisition Stage
 Again.. What are the ‘values’here?
1. Newness : Fulfills an entirely new set of needs that customers previously didn't
perceive because there was no similar value proposition.
2. Performance : Improves product or service performance.
3. Customization : Tailored to the specific needs of individual customers.
4. Getting the job done : Helps customers get a certain job done.
5. Design : Stands out because of superior design.
6. Brand/Status : Stands our because of the popularity or respect of a brand/status.
7. Price : Offers a similar value but at a lower price.
8. Cost Reduction : Helps customers reduce their own personal costs they would take
on without the product/service.
9. Risk Reduction : Offer customers a chance to reduce their own risks. (Ex 1yr
guarantee)
10. Accessibility : Provides to customers that previously lacked access to
product/service.
11. Convenience/Usability : Provides an easier way to use a vital product/service.
Some examples….
Even in the past we already havethis…
Alittle help….

Singkisig ng Kotse
Singkisig ng Trak

An Ellegant Car
An Ellegant Truck

Remember….. This
ad was in 1978..
Your Response : Solution Your Challenge : Demand
Your Response : Solution Your Challenge : Demand
GAINS: description of the outcomes customers
want to achieve or the concrete benefits they
are seeking from the product/service offered.

CUSTOMER JOBS: description

of what customer are trying to
get done in their work and in
PAINS: description of the bad outcomes, risks, their lives as expressed in their
and obstacles, related to customerjobs own words
 GAINS CREATORS:description of how your products
and services would create customer gains.

PRODUCTS AND SERVICES: list of all

the products and services offered with
a value proposition is built around
PAINS RELIEVERS:description of how your products
and services would alleviate customer pains
fit
1. Fill Out Your VP DesignerCanvas.
Describe the JOBS your customer is trying to get done and outline
their PAINS and GAINS. List the PRODUCTS and SERVICESyou intend
to offer and describe how you believe they will ALLEVIATEyour
customer’s PAINS and CREATEGAINS. You can use the trigger
questions in the poster
2. Test your Customer Assumptions
Talk to as many (potential) customers as possible to verify if they
really get those JOBS done asdescribed in the VP Designer Canvas.
Find out if those JOBS are crucial to them or unimportant? Find out if
the really have those PAINS you believed they have. Are those PAINS
severe or minor? Verify if they really value the GAINS you believed
they value.
3. Adjust Customer Assumptions Based on Insights
Now that you better know who your customers are you should revisit
the Customer Profile in your VP Designer Canvas. Ideally you now
understand the significance of your customers’ JOBS, the severity of
their PAINS and the intensity of their desired GAINS.
4. Redesign Value Proposition Based on Insights
Adjust which pains and gains you want to focus on, based on your
customer insights. Then redesign your Value Proposition accordingly.
Don’t forget that great Value Propositions rarely address all customer
PAINS and GAINS. They address a few really well!
5. Get your new and readjusted VP, keep learning..
The moment this circle ends is when you've achieved a fit between
your Value Proposition and what your Customers expect. This is what
the startup movement calls product-market fit or problem-solution
fit. It's when you build stuff that customers really want!
 • Divide the class into 3groups
• Get your case to be resolved
• Create the simple presentation
on the case, for its VPC
• Each member must contribute!

• 30 minutes to prepare your

group’s VPC
• 5 minutes each group to
present their VPC
Get the case to Inventorize the Present how
be discussed in details in your the VP and CS
your team and team’s VPC to would fit to
create your VP be presented each other
Expected outcome from each group
Product or Customer
Services Segments
Offered Chosen
The cases to be picked are :