A value proposition argues the proposed value of a product to a customer. The goal is to justify to customers why they should buy your brand, rather than another brand offering a similar product. There are many aspects to a value proposition, but the various justifications can be divided into the following five basic categories:
- More for More
- More for the Same
- The Same for Less
- Less for Much Less
- More for Less
More for More
This positioning involves offering a product of premium quality for a premium price. The quality of the product and high costs justify the high price. There is an image of prestige that comes along with buying products under this position. Customers often purchase the products for more than just the quality. They purchase them to acquire a status symbol of their wealth.
More for the Same
At this position, a firm presents a product of higher quality, but at the same price as its competitors. This can be a great way to take market share from competitors, because it presents a strong value for customers.
The Same for Less
This position can also be very competitive because it offers another great value to customers. Firms using this positioning are presenting the same product as its competitors, but offering it at a lower price to customers.
Less for Much Less
Many customers simply want to purchase a product at the lowest possible price, regardless of quality. These products meet customers’ low quality expectations while delivering the lowest available price.
More for Less
This position is very competitive and often captures market share from competitors. It involves offering a higher quality product than competitors at a lower price to customers.
In the Market Planning Assignment, we came up with a new product idea for Apple, the iPhone K, a smartphone for children with equivalent hardware and similar features to the iPhone 5C. This product is far superior to all competitors in the market for children’s phones. The primary competitor is the Glowphone by Firefly which only supports simple features such as calls, voicemail, and a contacts list and is offered for $50 without contract. The iPhone K starts at $499 without contract, and consequently falls into the category of more for more. The phone has more features than its competitors and is offered at a premium price. Follow the links below to read more about the iPhone K and its value proposition in our marketing paper and presentation.
Marketing Paper_Final Draft
Market Planning Assignment_Presentation
Learning Portfolio 