What and Why:

Value Proposition is statement of promise of overall benefits that the product/IP solution offers to the target customers/users as compared to the total perceived cost while being differentiated from other available alternatives.

It is intended for both internal and external audiences. For customers as external audiences, it is used to convince the potential customers/users about the product and its capabilities in addressing their challenges. Internally it gives direction for marketing and communication team while making decision to effectively manage messaging, collaterals, positioning, defining business models, and sales activities. Reviewing the relevance of the value proposition prior to building your marketing execution plan is crucial for its effectiveness. In addition it also helps in the decision making process by engineering and product management for defining and implementing features, functionalities and any other themes for user experiences.

Value proposition statements are used to shape customer perceptions about the product/IP solution. The target audience weighs the value proposition of IP solution against competitive alternatives in the market including option of doing nothing. Hence evidence is critical in the value proposition to help making decision in favor of the IP solution.

Positioning is a high level statement of promise about product or solution to create a perception of a unique experience in the minds of target customers compared to other competing alternatives in the market. Positioning statement is a sub-set of Value proposition or derived from Value proposition. Unlike Value proposition, Positioning is mainly intended for outbound marketing for effective messaging in market communication activities with an intention to seek a specific place in the minds and hearts (thinking or feeling) of target customers. It can be Economic, Functional or Emotional benefits.
Defining Value proposition and Positioning are very important steps in formulating Product Strategy.

Who, How and Best Practices:

Product strategist/head is responsible for defining the value proposition for the products/IP solutions in Capgemini.

For formulating value proposition of products or IP solutions in Ready2Series portfolio, a standard framework is defined. In this framework the value proposition is developed using the aspects of target market or customer, their challenges, the product which we offer, details of the product, benefits of the product, its differentiators and the supporting factors of capabilities.

Product strategist/head shall use the framework provided and prepare the reference points/information about the IP solution for all the seven aspects in the framework (target market & audience, their challenges, our product, the product class and type, the benefits, the differentiators and what capabilities the product provides).

Product strategist/head shall prepare initial draft for the value proposition messaging. He/she can seek support from IP central team and Group marketing & communications team to discuss through a brainstorming session to develop a clear message. It can be an iterative process.

The product strategist/head shall communicate the final value propositioning message to all the stakeholders and use as guiding principle for all the activities around IP solution development and marketing.

Notes:

• Identification and definition of target customer is the first and foremost step of product strategy.
• Information collected as part of market research, market opportunity analysis and competition analysis shall be utilized for this activity.
• Product management team can also obtain guidance and support from Central IP team in the process of market analysis and sizing for the solutions in Ready2Series portfolio.

References:

• Check list (TBD)