Currently viewing the tag: "Customer Value Proposition"


Mature markets, where the customer base begins to stagnate, call for structured Organic Growth founded on a superior Customer Value Proposition (CVP).  CVP encompasses all that is gained by customers for the money they pay—material as well as intangible.  Customer Value can be articulated by the equation:

Customer Value = (Product Performance + Service Delivered + Image) / Price Paid


CVP endeavors can be lacking due to many reasons such as use of incorrect Research Method, misapplication of a correct statistical method, incorrect interpretation of research outcomes in the background of current brand position, market situations, or capabilities system of the company.

Crafting an effective CVP requires insight and experience, but the probabilities of realization escalate by applying a structured process.  Organizations that defy odds and repeatedly thrive with many new-product unveilings lean towards applying a disciplined approach to developing their CVP.  The approach that these organizations follow comprises of 3 distinct practices, blending creative inventiveness and analysis.  The 3 Pillars of Product Launch Strategy are:

  1. Market-backed Analysis
  2. Darwinian Competitive Review
  3. Capabilities-Forward Assessment

Each of the 3 practices has the two-fold effect of being an idea generator as well as an idea sifter.

The practices produce fresh thoughts regarding trends for growth and also assist in determining the products and services to launch and the way to position them.

Let us go a little further into details of each pillar.

Market-Backed Analysis

Market Research merely queries consumers regarding their attitudes, inclinations, and aversions.  Real focus of such research should be on comprehending behavior; such as the trade-offs consumers make when deliberating a purchase.   Market-Backed Analysis is a method of collecting consumer insights that isolates the value imputed by consumers to various components of a product or service, and generates practical information as a consequence.

Darwinian Competitive Review (DCR)

Executives are always on the lookout for new product and service innovations that can distinguish their companies.  New ideas are always more exciting than an innovation that the industry has already introduced.  Darwinian Competitive Review suggests that even a new idea must follow some demonstrated Value Proposition—i.e., proven success somewhere else.  DCR calls for scrutiny of those Customer Value Propositions that have exhibited success across several markets, and of competitors who have already instituted themselves in those markets. 

Capabilities-Forward Assessment

Capabilities-Forward Assessment is a thorough evaluation of what the company already does skillfully, and which novel Value Propositions its Capabilities System will be able to sustain.  Possessing the correct Distinctive Capabilities that are aligned can be the difference between being common place and being great.  An example of the above would be the difference between offering a product at low cost and at the lowest cost.

Interested in learning more about the 3 Pillars of Product Launch Strategy?  You can download an editable PowerPoint on 3 Pillars of Product Launch Strategy here on the Flevy documents marketplace.

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This is a VERY comprehensive document with over 300+ slides–covering 50 common business frameworks and methodologies (listed below in alphabetical order). A detailed summary is provided for each framework. The included frameworks span across Corporate Strategy, Sales, Marketing, Operations, Organization, Change Management, and Finance.

Here is the full list of included frameworks and methodologies:

  1. ABC Analysis
  2. Adoption Cycle
  3. Ansoff Market Strategies
  4. Balanced Scorecard
  5. BCG Growth-Share Matrix
  6. Benchmarking
  7. Blue Ocean Strategy
  8. Break-even Analysis
  9. Business Unit Profitability
  10. Economics of Scale
  11. Environmental Analysis
  12. Experience Curve
  13. Cluster Analysis
  14. Company & Competitor Analysis
  15. Core Competence Analysis
  16. Cost Structure Analysis
  17. Customer Experience
  18. Customer Satisfaction Analysis
  19. Customer Value Proposition
  20. Fiaccabrino Selection Process
  21. Financial Ratios Analysis
  22. Gap Analysis
  23. Industry Attractiveness & Business Strength Assessment
  24. Key Purchase Criteria
  25. Key Success Factors (KSF)
  26. Market Sizing & Share
  27. McKinsey 7-S
  28. Net Present Value
  29. PEST Analysis
  30. Porter Competition Strategies
  31. Porter’s Five Forces
  32. Portfolio Strategies
  33. Price Elasticity
  34. Product Life Cycle
  35. Product Substitution
  36. Relative Cost Positioning
  37. Rogers’ Five Factors
  38. Scenario Techniques
  39. Scoring Models
  40. Segment Attractiveness
  41. Segmentation & Targeting
  42. Six Thinking Hats
  43. Stakeholder Analysis
  44. Strengths & Weaknesses Analysis
  45. Structure-Conduct-Performance (SCP)
  46. SWOT Analysis
  47. SWOT Strategies
  48. Treacy / Wiersema Market Positioning
  49. Value Chain Analysis
  50. Venkat Matrix

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