Insert my tag line here… trigger
Masterclass
growth etc.
2
Aligning Your Value Proposition
When the customer speaks, do you know how to listen?
Professor Thomas C. Lawton
@TCLawton
www.thomaslawton.com
Configure your value proposition to…
Create a magnet company
- excite markets
- attract and retain customers
- repel new entrants
- render competitors unable to respond
@TCLawton
www.thomaslawton.com
Forging a magnet company
GROWTH OPPORTUNITIES
Emergent Markets
B Taking by
R
Storm
E
A
K
O
U
T
Laggard
T to Leader
Y
P
E
@TCLawton
Established Markets
True Originals
Revolutionaries
Wave Riders
Big Improvers
www.thomaslawton.com
Forging a magnet company
GROWTH OPPORTUNITIES
Emergent Markets
B
R
E
A
K
O
U
T
T
Y
P
E
Established Markets
Expanding
Horizons
Boundary Breakers
Conquistadors
Shifting
Shape
Early Adapters
Power Players
@TCLawton
www.thomaslawton.com
• Is Ryanair a magnet company and if it is, how
did it become so?
@TCLawton
www.thomaslawton.com
Ryanair’s routes to breakout
1992
LAGGARD TO LEADER
Wave Rider
1997
EXPANDING HORIZON
Boundary Breaker
2003
EXPANDING HORIZON
Conquistador
First budget airline in Europe
@TCLawton
www.thomaslawton.com
Europe’s favourite airline?
Lowest fares and lowest seat cost in Europe
• No. 1 for traffic growth (2001: 8m; 2011: 72m)
• No. 1 for coverage – 160+ destinations, 27 countries and 44 bases
• No. 1 for customer service delivery?
• Lowest price, highest punctuality
• Fewest cancellations and lost bags
@TCLawton
www.thomaslawton.com
Strategic
Enactment
Business
Model
Strategic
Alignment
@TCLawton
Projects and
Programs
Strategic
Leadership
Value
Proposition
Strategic
Thinking
Vision
Strategic
Definition
www.thomaslawton.com
Extracting value from your value proposition
• Communicating what you are and what you offer
• Ensuring clarity and consistency to customer
• Making all elements of the value proposition synchronise
• Leveraging up to gain competitive advantage
@TCLawton
www.thomaslawton.com
Generating a value proposition
PRICE
FEATURES
QUALITY
SUPPORT
AVAILABILITY
REPUTATION
1. Premium
1. Original
1. Excellent
1. Comprehensive
1. Restricted
1. Prestigious
2. Premium/
Competitive
2. Original/
Customised
2. Excellent/
Average
2. Comprehensive/
Standard
2. Restricted/
Selective
2. Prestigious/
Respected
3. Competitive
3. Customised
3. Average
3. Standard
3. Selective
3. Respected
4.Competitive/
Leader
4. Customised/
Basic
4. Average/
Acceptable
4. Standard/
Minimal
4. Selective/
Universal
4. Respected/
Functional
5. Leader
5. Basic
5. Acceptable
5. Minimal
5. Universal
5. Functional
VISION FOR THE FUTURE
@TCLawton
www.thomaslawton.com
Ryanair’s value proposition
PRICE
FEATURES
QUALITY
SUPPORT
AVAILABILITY
REPUTATION
1. Premium
1. Original
1. Excellent
1. Comprehensive
1. Restricted
1. Prestigious
2. Premium/
Competitive
2. Original/
Customised
2. Excellent/
Average
2. Comprehensive/
Standard
2. Restricted/
Selective
2. Prestigious/
Respected
3. Competitive
3. Customised
3. Average
3. Standard
3. Selective
3. Respected
4.Competitive/
Leader
4. Customised/
Basic
4. Average/
Acceptable
4. Standard/
Minimal
4. Selective/
Universal
4. Respected/
Functional
5. Leader
5. Basic
5. Acceptable
5. Minimal
5. Universal
5. Functional
VISION FOR THE FUTURE
@TCLawton
www.thomaslawton.com
Value proposition statement: Ryanair
@TCLawton
www.thomaslawton.com
In contrast…Emirates
value proposition
PRICE
FEATURES
QUALITY
SUPPORT
AVAILABILITY
REPUTATION
1. Premium
1. Original
1. Excellent
1. Comprehensive
1. Restricted
1. Prestigious
2. Premium/
Competitive
2. Original/
Customised
2. Excellent/
Average
2. Comprehensive/
Standard
2. Restricted/
Selective
2. Prestigious/
Respected
3. Competitive
3. Customised
3. Average
3. Standard
3. Selective
3. Respected
4.Competitive/
Leader
4. Customised/
Basic
4. Average/
Acceptable
4. Standard/
Minimal
4. Selective/
Universal
4. Respected/
Functional
5. Leader
5. Basic
5. Acceptable
5. Minimal
5. Universal
5. Functional
VISION FOR THE FUTURE
@TCLawton
www.thomaslawton.com
Value proposition statement: Emirates
@TCLawton
www.thomaslawton.com
Group Work
Align and leverage up your value proposition
@TCLawton
www.thomaslawton.com
Instructions
• Form a group of about 6 people.
• Choose a company that at least one member of the group works for
or leads.
• Select intended or existing product/customer segment to work on
(be specific as to product and target customer).
• From this customer’s perspective, what is the nature of the value
proposition that attracts them to your chosen product or service? (A)
Plot this on the six pillars of the value proposition.
• Note – in practice, you will need to do multiple analyses in
recognition of different customer groups and segments, but always
start with those that are strategically most important.
@TCLawton
www.thomaslawton.com
Instructions cont.
• (B) Select three competitor/substitute products/services and plot
these on the value proposition pillars relative to your product/service.
• (C) Identify where you can add value by leveraging up your
proposition relative to the competitors/substitutes. Express this in the
Value Proposition Statement.
• What are the implications of your analysis? Consider both the original
positioning of your product and the subsequent intended leveraged
value proposition. What are the issues facing your organisation or
team? How can you deliver on your improved proposition? These
questions will feed through into the third masterclass.
@TCLawton
www.thomaslawton.com
Aligning your value proposition
PRICE
FEATURES
QUALITY
SUPPORT
AVAILABILITY
REPUTATION
1. Premium
1. Original
1. Excellent
1. Comprehensive
1. Restricted
1. Prestigious
2. Premium/
Competitive
2. Original/
Customised
2. Excellent/
Average
2. Comprehensive/
Standard
2. Restricted/
Selective
2. Prestigious/
Respected
3. Competitive
3. Customised
3. Average
3. Standard
3. Selective
3. Respected
4.Competitive/
Leader
4. Customised/
Basic
4. Average/
Acceptable
4. Standard/
Minimal
4. Selective/
Universal
4. Respected/
Functional
5. Leader
5. Basic
5. Acceptable
5. Minimal
5. Universal
5. Functional
VISION FOR THE FUTURE
@TCLawton
www.thomaslawton.com
Leveraging up your value proposition
@TCLawton
www.thomaslawton.com