Question

Value Proposition-Entrepreneurship class

Type of Business: Tea Lounge

Identify Benefits of Your Business Idea in the Value Proposition. The value proposition addresses one question: why is your solution best?

A value proposition is defined as small business owners’ unique selling points (or benefits) that customers can expect from your goods or services including benefits that differentiate your offering from those of competition. The value proposition helps the entrepreneur focus on the most important aspects of your business.

The value proposition should include the following information:

• For (target customer)
• Who (statement of need or opportunity)
• The (retail business name) is a (product or service category)
• That (statement of key benefit)
• Unlike (primary competitive alternative)
• Our business (statement of primary differentiation)
• Is available (where)

Here is an example of the outline (please add as much details as you can):

Health Food Store Value Proposition serves residents of Union, NJ with a household income of $x and up who need advice regarding natural alternatives to health-related issues…

HFS is a health food store which provides the local community with vitamins and herbs …

Unlike our competition (an actual business name here), our business has a knowledgeable business owner on staff who is a nurse w/ 25+ yrs. experience running her own health food store.

Health Food Store will be located on Morris Ave in Union, NJ…

You will expand upon your value proposition when you write your business plan.

Answer 1

I would suggest the name " WE AND TEA" for the Tea Lounge.

Benefits other than Competitive Brands-

- Pricing Factor - I would opt for a low pricing structure.

- Pure - The lounge will serve the freshest of the tea straight from the farm.

- Customer Service - I would train the customer service staff to greet and satisfy each and every customer who comes to the lounge.

- Indoor Games - I would give the customer a choice to play games like carrom, ludo, etc complimentary.

- Big Screen - I would set up a huge screen for the entertainment of the customers.

- Huge Variety - I would serve 50 types of tea and also offer a huge variety of tea-time snacks.

- Work Place Delivery - The lounge will ship the tea and snacks order to the office but will make a minimum order policy to launch this facility.

Value Proposition

- For

The target customers would daily employees working with different organizations. I believe tea is the need of most to the employees at least 2 times during their hectic work schedule. The lounge will be suitable for every income group.

- WHO

The lounge will be especially for tea lovers. A high percentage of the population drinks tea twice a day across the world. So a tea lounge in between the corporate offices can be defined as both the need and high earning opportunity of the moment.

-THE

Retail Business Name - "WE and TEA" is a Tea Lounge serves a huge variety of tea and tea-time snacks.

- THAT

The key benefit for the business is having its 3 owned tea farms. Own farms mean fresh tea leaves will be used while making every cup of tea and the business will also offer the 500g, 1kg, 2kg packets of the customers so that they can have the delightful taste of tea at home also.

- Unlike

Unlike our competitor (Tea and Snacks), we also offer a 20 % corporate discount to the employees with official IDENTITY PROOFS.

- Our Business

The business is a completely new venture and will operate with the presence of modern technologies o serve the customers the best quality tea and food timely.

- Is Available

The first outlet location will be 59, DLF CYBER CITY, GURGAON.