The Value Proposition Canvas is a useful tool to understand how a new product/service that a business plans to introduce can help the buyers. The canvas consists of two sections, the customer profile and value proposition (Osterwalder et al., 2014).
The Value Proposition Canvas is a tool/framework used by product owners, marketing experts, and businesses to ensure the new product or service that they intend to launch factors in what the customer values and needs.
The customer profile explains more about how a typical customer looks like, what they do, the pains they face, and how they gain from doing certain activities.
The value proposition, on the other hand, shows how the new product will help consumers by solving the issues the face and how it will create more gains for them.So, for example if a business intends to launch a new health product, it can use the Value Proposition Canvas in the following manner:
Assuming the business targets health-conscious consumers, they will take efforts to eat healthier. These consumers need to visit various shops in order to find high-quality food products that will keep them healthy and boost their immunity.
The customer does the following things to remain healthy:
- Need to go to various shops to make purchases of healthy foods
- Make home-made food that boots immunity.
- Wish to eat healthy and is particular about hygiene and good quality.
These are the pain areas that consumers face right now.
- Going to various shops to make the purchases.
- Research online to find out where to buy good organic food.
- Spend time making the various immune-boosting food at home.
These are the gains to the consumer because of the efforts that they put in.
- They are able to eat healthy food
- It improves their immunity, they feel energetic
- They experience Feel good factor
The new product will help the target consumers in the following way:
- Enables the consumer to lead a healthier life
- More free time to pursue other interests.
The new product will relieve the following pains of the target consumer:
- Saves time for the consumer as one does not have to prepare the immune-boosting foods at home.
- The consumer can select from a wide selection of high-quality products
Products and Services
Here you mention about the various product/s to be launched and their different versions (features are usually not mentioned here) that will help the consumers meet their objectives.
For this example, the business will launch various organic food products – cashew nuts, walnuts, almonds, chia seeds, flax seeds, nuts and super foods.
Osterwalder, A., Pigneur, Y., Bernarda, G. and Smith, A., 2014. Value proposition design: How to create products and services customers want (Vol. 2). John Wiley & Sons.
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