... while paint made up just 15% of costs. Armed with this insight, the resin maker emphasized that its product dried so fast that contractors could apply two coats in one day—substantially lowering labor costs. Customers snapped up the product—and happily shelled out a 40% price premium for it. To craft compelling customer value propositions: UNDERSTAND CUSTOMERS’ BUSINESSES Invest time and effort to understand your customers’ businesses and identify their unique requirements and preferences. Example: The resin manufacturer deepened its understanding of key customers in several ways. It enrolled managers in courses on how painting contractors estimate jobs. It conducted focus groups and field tests to study products’ performance on crucial criteria. It also asked customers to identify performance trade-offs they were willing to make and to indicate their willingness to pay for paints that delivered enhanced performance. And it stayed current on customer needs by joining industry associations composed of key customer segments. SUBSTANTIATE YOUR VALUE CLAIMS “We can save you money!” won’t cut it as a customer value proposition. Back up this claim in accessible, persuasive language that describes the differences between your offerings and rivals’ that matter most to customers. And explain how those differences translate into monetary worth for customers. Example: Rockwell Automation precisely calculated cost savings from reduced power usage that...
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...a TraditionalCollege Textbook? ASSIGNMENT QUESTIONS 1. Describe the competing business models of traditional textbooks and etextbooks. How do the customer value propositions of the two textbook formats compare? How are the profit formulas of paper textbooks and etextbooks different? Traditional textbooks: - Depends on acquisition editors. - On authors and professors. - Representitive business modle. - Taking into consideration printing costs, shipping costs and row material costs. - Taking into consideration the competietion with local book stores and used books market. eTextbooks: - It will depend as well on acquisition editors, prfessors and authors. - Representatives are enrolled into promoting online platform. - Will get rid from raw material costs such as priniting, paper and ink. - Will get rid from the competition of used books market and local book stores. Customers will value buying a traditional textbook from two perspectives; one is the easiness of reading the book and taking notes and at the same time they can sell it back to the used books market for a discounted price. They could have even save some money by renting the book or buying a used one. However, different editions were introducd frequently, which was an obstacle to them on this regard. On the other hand, customers may value buying an etexbook in another way. First, the buying price would less than a traditional textbook. Also, they could have many books in a simple device that will...
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...Case Study Presented to Associate Prof. Guntalee Ruenrom, Ph.D. & Ajarn Yayus Mak Prepared by MBA English Program #3 Kotchaphan | Laochareon | 518 27814 26 | Ratanapong | Sanpote | 518 29421 26 | Thanan | Sastarasadhit | 518 28530 26 | Karit | Yuvaboon | 518 28094 26 | For the Course of 2605691 Seminar in Marketing Management Faculty of Commerce and Accountancy Chulalongkorn University QUESTION 1 : Identify the primary issues in the case. Between 1997 and 2005 a series of crisis severely challenged the hotel industry and stake holders, especially in asia region, which never before have so many issues that causes a crisis that has lasted that long With majority of properties located in asia, Banyan tree was hit hard by the crisis causing poor profitability in 2005. Foreseeing the risk of focusing its core operation in one region, Mr.Ho, CEO of Banyan tree initiates the expansion plan of banyan tree to open new properties in new location in order to minimize the risks. The IPO was executed to increase the capital for this expansion. However, the key issue of this aggressive expansion in how banyan tree can maintain its respective qualities across the chain due to: * The limitation of manpower and infrastructure to consistently deliver banyan Tree’s experience * The danger of bran dilution in case of banyan tree expands into territories that may have a negative impact on the brand. Its very important that...
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...Vietnam. Growth in these parts of the world is being driven by forces that don’t show any signs of weakening: steady population expansion, rapid urbanization, a proliferation of technology, and gradual opening up of economies and adoption of market-oriented policies. Global packaged-goods producers can gain significant foothold in these markets if they manage talent shortages, infrastructure gaps, and the highly fragmented trade landscape. There is no one-size-fits-all approach to doing this. Our research demonstrates that outperforming consumer-packaged-goods (CPG) companies use a set of standardized practices or tools across markets to determine their priorities for growth in each country. They clearly define their value propositions for customers, achieve optimal distribution, and continually strive to build sustainable operations and organizations. However, to be successful, these companies customize the standardized practices and tools based on the scale and strengths of their companies in particular regions, and local market dynamics and operational conditions. And, no matter the levers...
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...intimacy, operational excellence, or product leadership customer value proposition? What evidence supports your conclusion? Dell’s strategy “combines its direct customer model with a highly efficient manufacturing and supply chain management organization, and an emphasis on standards-based technology” (Dell, 2005, p. 1). The purpose of Dell’s multifaceted strategy is to be efficient when it comes to manufacturing products and effective when it comes to providing services. Dell feels that their business strategy allows them to “provide customers with superior value; high-quality, relevant technology; customized systems; superior service and support; and products and services that are easy to buy and use” (Dell, 2005, p. 1). Dell also focuses on developing new technologies that incorporate consumer-desired features and capabilities at a highly competitive price. Utilizing feedback from customers, Dell engineers “work with a global network of technology companies to architect new system designs, influence the direction of future development, and integrate new technologies into Dell’s products [which allows them to] quickly and efficiently deliver new products and services to the market” (Dell, 2005, p. 2). Dell relies on a combination of customer intimacy, operational excellence, and product leadership customer value propositions in order to maintain success in the marketplace. Utilizing the customer intimacy value proposition means that the organization is communicating to the consumer...
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...the instructions for the capstone strategy audit assignment and grading rubric due in Module 5. By now, you have completed the following steps: • Identified the organization for your report • Interviewed at least one key mid-level or senior-level manager • Created a market position analysis • Conducted an external environmental scan in preparation of your final report and presentation In this assignment, you will generate a preliminary strategy audit in preparation for your final course project. Prepare a report that includes the following: • In preparation for your course project, prepare the preliminary strategy audit using the tools and framework you have focused on so far including the following: o Analysis of the company value proposition, market position, and competitive advantage o External environmental scan/five forces analysis • Identify the most important (5-7) strategic issues facing the organization or business unit. o You may modify the strategic issues in your final report based on the additional analysis you will conduct in the next module as well as the feedback you receive on this paper from your instructor. o Keep in mind that it is important to look at the strategic issue(s) from more than just one perspective in the business unit or company—speak to or research the issue from more than one angle to offer a 360-degree approach that does not cause more problems or issues. o Strategic...
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...Can You Say What Your Strategy Is? by David J. Collis and Michael G. Rukstad CAN YOU SUMMARIZE YOUR COMPANY’S STRATEGY in 35 words or less? If so, would your colleagues put it the same way? It is our experience that very few executives can honestly answer these simple questions in the affirmative. And the companies that those executives work for are often the most successful in their industry. One is Edward Jones, a St. Louis–based brokerage firm with which one of us has been involved for more than 10 years. The fourth-largest brokerage in the United States, Jones has quadrupled its market share during the past two decades, has consistently outperformed its rivals in terms of ROI through bull and bear markets, and has been a fixture on Fortune’s list of the top companies to work for. It’s a safe bet that just Getty Images and IPNstock 82 Harvard Business Review | April 2008 | hbr.org It’s a dirty little secret: Most executives cannot articulate the objective, scope, and advantage of their business in a simple statement. If they can’t, neither can anyone else. Can You Say What Your Strategy Is? about every one of its 37,000 employees could express the company’s succinct strategy statement: Jones aims to “grow to 17,000 financial advisers by 2012 [from about 10,000 today] by offering trusted and convenient face-to-face financial advice to conservative individual investors who delegate their financial decisions, through a national network of onefinancial-adviser...
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...AT&TSara Parker Human Resources 587 Keller School of Management Aug 16th 2013 Communication Marketing Plan Objective To retain current SBC and AT&T customers pre and post mergers. To acquire non AT&T and SBC customers Target Audience Current SBC and AT&T retail customers. Non AT&T and SBC customers Timeline 2 months pre-merger to 2 years post-merger Communication Plan Contributors * Outsourced communication expert consulting company * Outsourced Marketing Firm * Internal public relations department * Internal Marketing department Approvals Required CEO and VP of Marketing Messaging * Value of how AT&T merger will benefit the customer on service, time, product and technology * Building excitement on what is to come with the merger * Building awareness on what is the new AT&T brand * Building awareness on new and existing products being offered “AT&T is your new and improved communication provider. We are mature enough to know how to do business, and innovative enough to provide you the best products and services to keep you connected all under one roof” Challenges * Customer confusion in the transition with billing * Customer confusion with product line of new company * Customers not seeing the value in the merger * Customer succumbing to competitor messaging. Competitor Messaging Research...
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...a given lead. If there is a good chance, and the contact is interested in learning more about the products offered, his or her status is usually upgraded to that of prospect, and assigned to a salesperson for further interaction. Establishing rapport with the prospect is essential to any successful customer acquisition effort. Here, the salesperson finds ways to identify with the stated wants and needs of the prospect, and how the products offered can relate to those wants and needs. At the same time, the salesperson will go further and atteChoosing the best customer acquisition strategy for your business needs typically involves understanding the habits, likes, and dislikes of the types of clients you wish to target. As most sales and marketing people understand, reaching specific groups of consumers requires adapting approaches so the company and...
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...They have the largest range of desired brands and styles that offer newness, fashionability, quality and value, with increasing exclusivity. The Myer merchandise offer includes 11 core product categories: Womenswear; Menswear; Miss Shop (Youth); Childrenswear; Intimate apparel; Beauty, fragrance and cosmetics; Homewares; Electrical goods; Toys; Footwear, handbags and accessories; and General merchandise. Besides having a wide range of merchandise, Myer also provide services in selected stores, which include Cafés and Restaurants, Formal Hire, Optical, Hair and Beauty Salons, florist (My Flowerhouse),Weight Watchers Lifestyle Centres, Photographic, and Myer Bridal & Gift Registry. Sources of value Value creation and delivery is a key element for strategic customer relationship management. Value can be thought of as the relationship between the benefits experienced from a product or service and the sacrifices made to enjoy those benefits. * Value from product In terms of product innovation, Myer has introduced a new sister site called Myfind.com. The site gives them the ability to test new merchandise and explore potential new product and range extensions and will give their customers access to a dynamic range of competitively priced products that are not necessarily available in store or elsewhere online. Product-service bundling is another way of creating value for its customer; Most cosmetic counters in Myer...
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...captures value,[1] in economic, social, cultural or other contexts. The process of business model construction is part of business strategy. In theory and practice, the term business model is used for a broad range of informal and formal descriptions to represent core aspects of abusiness, including purpose, business process, target customers, offerings, strategies, infrastructure, organizational structures, trading practices, and operational processes and policies. revenue model A description of how a business will earn income, produce profits and generate a higher than average return on investment. In business, a revenue model is generally used for mid and long-term projections of a company's profit potential and operation. the system design by which a business monetizes its services.[1] Examples of revenue models include: * Freemium * Subscription * Affiliate marketing * Ad-funded * Lead generation * Online shopping VALUE PROPOSITION DEFINITION OF 'VALUE PROPOSITION' A business or marketing statement that summarizes why a consumer should buy a product or use a service. This statement should convince a potential consumer that one particular product or service will add more value or better solve a problem than other similar offerings. INVESTOPEDIA EXPLAINS 'VALUE PROPOSITION' Companies use this statement to target customers who will benefit most from using the company's products, and this helps maintain an economic moat. The ideal value proposition...
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...Land’s End Strategy Overview Broad Differentiation Strategy Targeting: * A broad range of buyers * Value conscious consumers * Products and services stand apart in consumers’ minds * Buyers loyal to the brand Strategic Inputs: * Continuous product improvement and innovation * Excellent customer service * Gain buyer loyalty to its brand Land’s End is a global direct merchant of nice, well made, and durable clothing for men, women, and children. They also sell soft luggage and products for the house. It essentially offers a diverse amount of products. All of Land’s End labeled or branded products are developed with the understanding that they will balance high quality with great value and always been guaranteed to its customers. Land’s End plans to improve and expand several product lines that it believes are currently under-represented in its product mix. It intends to expands these categories of its business by developing a larger and more diverse selection of footwear, handbags, small leather goods and fashion accessories so that these product lines represent a larger percentage of its total consumer business. Land’s End believes that a principal factor in its success to date has been the development of its list of existing and prospective households, many of whom were identified by their responses to its advertising. Land’s End routinely updates and refines its customer list prior to individual catalog and email mailings and monitor customer...
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...competitive edge in the evermore fierce business environment. 1.1 Target Market Crowdsourcing has no particular target market as the concept itself builds upon accreted public input from all relevant sources (Enrique E.A. 2012). The websites designed utilising this concept aims to captivate a large pool of personnel with differing skills sets, commonly referred to as solvers, to provide solutions to those who desire particular skills for their problem, called the seekers. Common value propositions: For seekers: • Efficient and effective completion of specified tasks. • Employment on a ‘need’ basis for cost savings. • Vast skills pool to find the most suitable candidates for the job. • ‘Open Innovation’ (Chesbrough, H. 2003). For solvers: • Vast job opportunities. • Specified workload and financial reward. • Flexibility of working hours and location. • Gain experience in various fields of work according to own preference. 1.2 Crowdsourcing Platforms Analysis Platform Website Specific Value Propositions Mechanical Turk Seekers – Individuals and companies seeking extensive labour. • Opportunities open to the general public as jobs focus on the division of labour for simple tasks requiring minimal innovation or technicality. • Fixed payment, easy to calculate based on ‘HITS’ (Amazon Mechanical Turk Inc. 2015). Solvers – any individual with free time. Freelancer Seekers – Individuals and businesses seeking innovative fashion design. • Requests of design announced...
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...Marketing is an essential component for product proliferation and adoption across the targeted audience. There are many advantages of using the internet to market a product or service. In this paper I will discuss the a few advantages of utilizing the internet for marketing, Web developments, placement, merchandise and audience size, online customer service, payment, security, fulfillment, the infrastructures of e-Commerce, value propositions, online offerings and finally the resource system. The internet arena has become the new technological way of doing things these days. As the time goes on, more and more people are using the internet for multiple purposes. A few advantages of using the internet in marketing include using the internet to get to the targeted audience of the product quicker (Sheley, 2015), is more effective to provide the audience with the product meeting their needs and a cheaper investment in advertising for the company. Another key component to e-Commerce is the development of the website. The webpage is going to be the part that is going to tell the story of the product or services. The webpage could be simplistic displaying some verbiage or could be more advanced displaying pictures, forms, images or even links to click on to bring you to another part of the webpage. Amazon has a wide variety of product ranging from babies to children items, household items, auto and many more categories. The different categories range from an audience of very young...
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...www.hbr.org It’s a dirty little secret: Most executives cannot articulate the objective, scope, and advantage of their business in a simple statement. If they can’t, neither can anyone else. Can You Say What Your Strategy Is? by David J. Collis and Michael G. Rukstad Reprint R0804E It’s a dirty little secret: Most executives cannot articulate the objective, scope, and advantage of their business in a simple statement. If they can’t, neither can anyone else. Can You Say What Your Strategy Is? by David J. Collis and Michael G. Rukstad COPYRIGHT © 2008 HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION. ALL RIGHTS RESERVED. Can you summarize your company’s strategy in 35 words or less? If so, would your colleagues put it the same way? It is our experience that very few executives can honestly answer these simple questions in the affirmative. And the companies that those executives work for are often the most successful in their industry. One is Edward Jones, a St. Louis–based brokerage firm with which one of us has been involved for more than 10 years. The fourth-largest brokerage in the United States, Jones has quadrupled its market share during the past two decades, has consistently outperformed its rivals in terms of ROI through bull and bear markets, and has been a fixture on Fortune’s list of the top companies to work for. It’s a safe bet that just about every one of its 37,000 employees could express the company’s succinct strategy statement: Jones aims to...
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