Question

As the Marketing Manager of a furniture store in Dubai, you need to study possible value propositions on which a company might position its products.

a. Explain (in general, theoretically, and without examples) the possible value propositions.

b. Identify (without explaining) the different winning value propositions that you might select to position your furniture. And provide a clear example of each one.

(1000 words)

Answer 1

a)

A value proposition refers to the value a company promises to deliver to customers should they choose to buy their product. A value proposition is part of a company's overall marketing strategy. The value proposition provides a declaration of intent or a statement that introduces a company's brand to consumers by telling them what the company stands for, how it operates, and why it deserves their business.

A value proposition can be presented as a business or marketing statement that a company uses to summarize why a consumer should buy a product or use a service. This statement, if worded compellingly, convinces a potential consumer that one particular product or service the company offers will add more value or better solve a problem for them than other similar offerings will

A value proposition stands as a promise by a company to a customer or market segment. The proposition is an easy-to-understand reason why a customer should buy a product or service from that particular business. A value proposition should clearly explain how a product fills a need, communicate the specifics of its added benefit, and state the reason why it's better than similar products on the market. The ideal value proposition is to-the-point and appeals to a customer's strongest decision-making drivers.

2)

Maybe your website is more intuitive, your return policy is more forgiving, your customer service is superior or your shipping is more expedient. Whatever your differences, tout them in all of your marketing efforts and customer communications. Do everything possible to ensure all visitors to your store are aware of all of the things you’ve put in place to assuage their concerns, as well as to make the process easier and increase the likelihood they will get what they need the first time.

Having observed your competition, you’ll note your strengths are their weaknesses and your opportunities are places where they should be doing better. Conversely, your weaknesses and threats are places where you need to be doing better. Wherever you see the latter, do what you need to do to overcome them. Meanwhile, promote your strengths heavily to take advantage of the opportunities you see. In so doing, you will communicate to your customers the primary benefits they derive from doing business with you.

Price vs. Value

Too many people confuse value and price. While it’s true getting a superior product for a lower price does indeed represent a good value, the fact of the matter is, the value can be strong even when prices are higher. This is why people buy luxury goods. The perception of value—what’s in it for them—will always hold sway in the mind of the customer. People will often pay more if they feel they’re getting something they wouldn’t otherwise. Many e-commerce merchants have learned shoppers will pay more to get an item with free shipping than they will if they have to pay shipping charges too. Many won’t even stop to do the math; they see “free shipping” and assume it’s a better deal.

Creating unique value propositions for your e-commerce furniture store sets you apart from the other players in your space. And, if your value proposition is strong enough, it might even let you charge more money for the exact same products.

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